dushyantjain.com FOUND-LawGuru...-1- BEST ACADEMY FOR CS COURSE IN INDIA ICAN ACADEMY, Based on Past CS Foundation Past Exams, Complied and Prepared by LawGuru CS Dushyant Jain Test

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Based on Past CS Foundation Past Exams, Complied and Prepared by LawGuru CS Dushyant Jain

Test Paper 1,


1. The objective of the Sale of Goods Act, 1930 is to define and amend the law relating to —

(a) Sale of Immovable Properties

(b) Sale of Goods

(c) Agreements to Sell

(d) All of the above.

2. The Sale of Goods Act, 1930 extends to the whole of India, except the state of —

(a) Maharashtra (b) Jammu and Kashmir

(c) Tamilnadu (d) Uttar Pradesh.

3. The Sale of Goods Act, 1930 came into force in —

(a) 1st day of July, 1930

(b) 1st day of September, 1930.

(c) 1st day of January, 1930

(d) 31st day of December, 1930.

4. The unrepealed provisions of the ' Act shall continue to apply to contracts for the sale of goods,

save insofar as they are inconsistent with the express provisions of the Sale of Goods Act.

(a) Transfer of Property Act (b) Indian Evidence Act

(c) Indian Contract Act (d) Partnership Act.

5. The term “Goods” is defined in section of the Sale of Goods Act, 1930.

(a) 2(5) (b) 2(6)

(c) 2(7) (d) 2(8).

6. Which of the following are not included in the term "Goods” under the Sale of Goods Act —

(a) Stock and Shares (b) Actionable Claims

(c) Growing Crops, Gross etc. (d) Personal Use of Property.




7. Transfer of Actionable claim(s) is governed by the provisions of the Sale of Goods Act.

(a) True (b) Partly True

(c) False (d) None of the above.

8. “Jubilee Coins” are goods within the meaning of Section (27) of the Sale of Goods Act.

(a) True (b) Partly True

(c) False (d) None of the above.

9. Under the Sale of Goods Act, “ .Goods” means goods which are not in existence at the time of

making the contract of Sale.

(a) Ascertained Goods (b) Future Goods

(c) Specific Goods (d) Perishable Goods

10. To constitute a valid sale, there must be atleast —

(a) One Party (b) Two Parties

(c) Three Parties (d) Four Parties.

11. When goods are given by the buyer as consideration for the goods received from the seller it is

called —

(a) Sale (b) Agreement to sell

(c) Barter (d) Bailment.

12. In an Agreement to sell, the property in goods is transferred in —.

(a) Past

(b) Present

(c) Future

(d) There is no transfer to property at all.

13. “Contract of Sale” under section 4 of the Sale of Goods Act, 1930 comprises of—




(a) Both executory and executed contracts of sale

(b) Executory contract of sale

(c) Executed contract of sale

(d) Concluded contract of sale.

14. In an agreement to sell, where goods lie with the Seller, the risk of loss of goods remains with —

(a) Either Buyer or Seller

(b) Buyer only

(c) Seller only

(d) Buyer and Seller to the extent of their shares.

15. Where goods are not specific and ascertainable at the time of the making of the contract, it

shall —

(a) become void

(b) become voidable at the option of the buyer

(c) operate as an agreement to sell

(d) become a valid contract of sale.

16. Section 8 of the Sale of Goods Act, dealing with goods perishing before sale, in its application is

—

(a) Confined to contact of sale (b) Confined to agreement to sell

(c) Either (a) or (b) (d) Neither (a) nor (b).

17. Under Sec 8 of the sale of Goods Act, 1930 a contract of sale of goods can be avoided where

the goods have perished / damaged —

(a) Due to the fault neither of the Buyer nor the Seller

(b) Due to the fault of the Buyer

(c) Due to the fault of the Seller

(d) Due to the fault of either the Buyer or the Seller.

18. In a contract of sale, the price may be —




(a) Fixed by the contract

(b) Agreed to be fixed in a manner thereby agreed

(c) Determined by course of dealings between the parties


19. The prima facie evidence of a “Reasonable Price” u/s 9 of the Sale of Goods Act, is __________.

(a) Market Price

(b) Current price

(c) Price as determined by the court

(d) Reuse Price.

20. Under Section 11 of the Sale of Goods Act, 1930 the time of payment can be of the essence of

the contract —

(a) by agreement between the parties

(b) by operation of law

(c) both (a) and (b)

(d) either (a) or (b).

21. Condition or warranty in a contract of sale, constitutes stipulation with reference to—

(a) Time (b) Price

(c) Goods (d) Delivery.

22. A “Warranty” under the Sale of Goods Act, has been defined as a stipulation —

(a) Collateral to the main purpose of the contract

(b) With regard to time

(c) Essential to the main purpose of the contract


23. The breach of a “Condition” in a contract of sale of goods give the right to —

(a) Repudiate the contract (b) Claim for damages only




(c) Either (a) or (b) (d) Both (a) and (b).

24. In cases where there is a breach of condition by the seller, the buyer —

(a) May retain the goods though he has the right to reject them

(b) Has no right to retain the goods but only to reject the goods

(c) Has no right to reject the goods

(d) Has no remedy at all.

25. The Buyer shall have and enjoy quiet possession of the goods. This is an ____________ u/s 14

of the Act.

(a) Implied Warranty as to Title

(b) Implied Condition as to Title

(c) Implied Warranty as to Possession

(d) Implied Condition as to Possession.

26. In case of sale by description, there is an implied _____________ that the goods shall

correspond to description.

(a) Warranty

(b) Condition

(c) Stipulation

(d) Description.

27. In a sale of goods by description, it is sufficient that the goods are —

(a) Fit for the purpose for which they were wanted though not in accordance to description.

(b) Merchantable though not in accordance to description

(c) Wholesome, even if they do not correspond to description

(d) The same as that of their description.

28. Implied condition as to quality or fitness does not apply if —




(a) Buyer discloses to the seller, the exact purpose for which goods are required.

(b) Buyer indicates to the seller that he relies on the seller’s skill or judgement

(c) Seller’s business is to sell goods of such description

(d) Buyer reserves the right to examine the goods and check its quality.

29. Implied condition as to merchantable quality applies to sale of goods —

(a) Under a patent or other trade name

(b) By description only

(c) Either (a) or (b)

(d) Both (a) and (b)

30. The principle of “Caveat Emptor” as found in Sec 16 of the Sale of Goods Act, means that the—

(a) Let the Buyer be aware

(b) Buyer must take a chance

(c) Seller must take care

(d) Seller must take a chance.

31. A bill which is drawn, accepted or endorsed without consideration is called —

(a) Accommodation Bill

(b) Gratious Bill

(c) Inchoate Bill

(d) None of the above

32. The new definition of a cheque is provided by —

(a) Negotiable Instrument Act, 1881

(b) Negotiable Instruments (Amendment and Miscellaneous provisions) Act, 2002

(c) Negotiable Instruments (updation)

(d) None of the above Act, 2002

33. As per the RBI Act, which of the following negotiable instruments can be payable to the bearer

on demand?




(a) Cheque

(b) Hundi

(c) Bank Draft

(d) Promissory Note

34. In case, a banker without any justification fails to honour a cheque then, who has the right to

take an action against it?

(a) The drawer for any loss or damage suffered by him

(b) The drawee for the inconvenience caused to him

(c) Neither (a) nor (b)


35. As per the Negotiable Instruments Act, a cheque becomes time barred after —

(a) Five years from the date of issue

(b) Three years from the date of issue

(c) One year from the date of issue

(d) Nine months from the date of issue

36. Which of the following is NOT a mode of crossing a cheque?

(a) General crossing (b) Restrictive crossing

(c) Special crossing (d) Conditional crossing

37. The day on which a cheque falls due for payment is called —

(a) Payment date (b) Expiry date

(c) Maturity date (d) None of the above

38. The normal grace period allowed for a negotiable instrument is of —

(a) One week (b) One month

(c) One day (d) Three days




39. A negotiable instrument dated 31st August is made payable three months after date, then the

date of maturity will be —

(a) 3rd December (b) 30th November

(c) 1st December (d) 2nd December

40. Which of the following statement is NOT true in respect of the holder in due course?

(a) A holder in due course is mostly in a privileged position

(b) Any person holding the instrument can recover the amount from all the previous parties

(c) The negotiable instrument can be obtained even after the maturity

(d) All of the above

41. Which of the following statement is NOT true?

(a) The liability of the drawer is secondary

(b) The prior parties to the negotiable instrument are not liable to the holder in due course

(c) Various parties to a negotiable instrument who are liable stand on a different footing


42. An endorsement where the endorser merely writes his signature on the book of the

instrument and the instrument becomes payable to the bearer is called —

(a) General endorsement (b) Full endorsement

(c) Qualified endorsement (d) Partial endorsement

43. An endorsement in which the endorser limits his liability is called —

(a) Conditional Endorsement (b) Justified Endorsement

(c) Both (a) and (b) (d) Neither (a) nor (b)

44. An Endorsement in which the endorser gives a direction to pay is called —

(a) Special Endorsement (b) Directive Endorsement

(c) Conditional Endorsement (d) Justified Endorsement




45. In case of a bearer instrument or an instrument endorsed in blank, the holder can claim the

amount from the parties even if it is a forged endorsement.

(a) True (b) False

(c) Partially True (d) Partially False

46. Which one of the following is NOT true in respect of notice of dishonour?

(a) Notice must be in writing

(b) Notice can be oral or in writing

(c) Notice must be formal

(d) Notice must be given within a reasonable time period

47. In which of the following cases a notice of dishonour is not required?

(a) When the drawer has countermanded payment

(b) When the party to whom the notice is to be given cannot be searched.

(c) When the party promises to pay unconditionally


48. Discharge in relation to a negotiable instrument can be done by —

(a) Discharge of the instrument (b) Discharge of parties liability

(c) Neither (a) nor (b) (d) Both (a) and (b)

49. The liability of the maker of a promissory note is —

(a) Primary and absolute (b) Secondary and conditional

(c) Both (a) and (b) (d) None of the above

50. The liability of the drawer of a bill is —

(a) Primary and absolute (b) Secondary and conditional

(c) Both (a) and (b) (d) None of the above

51. The essential condition of an Inland bill is —




(a) The instrument is drawn or made in India

(b) The instrument must be payable in India or the drawee must be in India

(c) Both (a) and (b)

(d) Neither (a) nor (b)

52. The person on whom the bill is drawn is known as —

(a) Drawer (b) Drawee

(c) Payee (d) All of the above

53. Which of the following statement is true?

(a) Notice of the dishonour of a bill is necessary

(b) Notice of dishonour of cheque is NOT necessary



54. The mode of crossing by which the holder of the cheque cannot get the payment over the

counter but through any of the bank only is called —

(a) General crossing (b) Special crossing

(c) Account payee crossing (d) None of the above

55. The mode of crossing by which the holder of the cheque can get the payment only through a

specified bank is called —


(c) Account payee crossing (d) None of the above

56. The mode of crossing in which the proceeds are to be credited only to the account of the

payee or the party named or his agent is called —


(c) Account payee crossing (d) All of the above

57. The Negotiable Instruments Act makes specific mention of three instruments, namely cheque,

bill of exchange and




(a) Promissory note (b) Hundi

(c) Bank draft (d) Customary Note.

58 In legal terms, a person who receives a negotiable instrument in good faith and for valuable

consideration is known as —

(a) Holder (b) Holder for value

(c) Holder in due course (d) Holder in rights.

59. A negotiable instrument in which no time for payment is specified is payable.

(a) After acceptance (b) After sight

(c) After one month (d) On demand.

60. A bill of exchange payable to bearer on demand is —

(a) Valid (b) Voidable

(c) Invalid (d) Conditional.

1 (b) 2 (b) 3 (a) 4 (c) 5 (c) 6 (b)&(d)

7 (c) 8 (a) 9 (b) 10 (b) 11 (C) 12 (c)

13 (a) 14 (c) 15 (a) 16 (a) 17 (C) 18 (d)

19 (a) 20 (a) 21 (c) 22 (a) 23 (d) 24 (a)

25 (c) 26 (b) 27 (d) 28 (d) 29 (a) 30 (a)

31 (a) 32 (b) 33 (a) 34 (a) 35 (b) 36 (d)

37 (c) 38 (d) 39 (a) 40 (c) 41 (b) 42 (a)

43 (b) 44 (a) 45 (a) 46 (a) 47 (d) 48 (d)

49 (a) 50 (b) 51 (c) 52 (a) 53 (c) 54 (a)

55 (b) 56 (c) 57 (a) 58 © 59 (d) 60 ©




Practice Paper, Answers are Darkened

1. The Law of Contract is intended to ensure that what a man has been led to input shall

come to pass, that what has been promised to him shall be performed.

a. Sir William Anson

b. Sir George Bhush

c. Sir William Shakespeare

d. Sir David Gibbs

2. The Law of Contract constitutes the most important branch of ……………………law.

a. mercantile

b. commercial

c. Both a and b

d. None

3. Contract Act came into force from …………….

a. September,1872.

b. October, 1872

c. September, 1873

d. October, 1873

4. Contract Act is applicable to Whole of India.

a. True

b. False

c. Partly true

d. Partly false

5. “Every agreement and promise enforceable at law is a contract.” Is said by :

a. Salmon

b. Sir Federick Pollock

c. Sir William Anson

d. Sir George Bhush

6. ……………..of the Act defines the term contract as “an agreement enforceable by law is a

contract”. The definition resolves that a contract is fundamentally an agreement that binds

the parties legally, thus, Contract = Agreement + Enforceability.

a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)

7. …………….defines the term ‘agreement’ as “Every promise and every set of promise, forming

the consideration for each other”

a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)




8. Which of the following is /are the essential elements of valid contract?

a. Strict consent.

b. Unlawful object and consideration

c. Certainty of meaning

d. Agreement declared void

9. An agreement becomes contract if any one of the essential elements of a contract is

satisfied.

a. True

b. False

c. Partly true

d. Partly false

10. Void contract is defined in section…………

a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)

11. A …………….is a contract which ceases to be enforceable by law.

a. Void contract

b. Unenforceable contract

c. Illegal agreement

d. All of the above

12. An ……………contract is one where one or both the parties to the contract have to perform

their obligations in future.

a. Executory

b. Executed

c. Both a and b

d. None

13. When the object and consideration of an agreement is unlawful it is said to be……………

a. Void contract



d. All of the above

14. An contract gives birth to a agreement.

a. True

b. False

c. Partly true

d. Partly false

15. All agreements are not contract

a. True

b. False

c. Partly true




d. Partly false

16. In which of the following cases “a person who attended the advertised place of auction

could not sue for breach of contract if the auction was cancelled” was held:

a. Harris v. Nickerson

b. Harvey v. Facey

c. Lalman Shukla v. Gauri Dutt

d. Harbhajan Lal v. Harcharan Lal

17. ……………deals with various modes of lapse of an offer.

a. Section 7

b. Section 6

c. Section 8

d. Section 9

18. The meeting of the minds is called…………..

a. consensus-ad-idem.

b. Consim-ed-idem

c. Quid- pro- quo

d. Magis pareat

19. Characteristics of an Agreement

a. Plurality of persons

b. Consensus ad idem

c. Both a and b

d. None

20. Consideration may be :

a. Present

b. Past

c. Future

d. All of the above

21. An illegal agreement has legal effects as between the immediate parties.

a. True

b. False

c. Partly true

d. Partly false

22. “Certain relations resembling those created by contract” are known as ………….

a. quasi contract

b. implied contract

c. both a and b

d. none

23. A minor is a person, male or female, who has not completed the age of 18 years.

a. True

b. False

c. Partly true

d. Partly false




24. If a contract entered into by a lunatic or person of unsound mind is for his benefit, it can be

enforced (for the benefit) against the other party is held in:

a. Jugal Kishore v. Cheddu

b. Rose Fernandez v. Joseph Gonsalves

c. Raj Rani v. Prem Adib

d. Mohiri Bibi v. Dharmodas Ghose

25. A person who is an Indian citizen is also an alien.

a. True

b. False

c. Partly true

d. Partly false

26. General principles of law of contract are contained in section:…………….

a. 1 to 78

b. 1 to 80

c. 1 to 75

d. 1 to 98

27. Special kind of contracts includes:

a. Indemnity

b. Guarantee

c. Bailment and pledge

d. All of the above

28. Contract relating to Sale of Goods is contained in

a. 76 to 129

b. 1 to 78

c. 1 to 80

d. 1 to 75

29. Law of contract is the whole law of agreements

a. True

b. False

c. Partly true

d. Partly false

30. The law of contract is the whole law of obligation

a. True

b. False

c. Partly true

d. Partly false

31. A advertise in the newspapers that he will pay rupees one thousand to anyone who

restores to him his lost son. B without knowing of this reward finds A’s lost son and restore

him to A.Can B claim his reward?

a. Yes

b. No

32. Consideration is not the essential element of contract.




a. True

b. False

c. Partly true

d. Partly false

33. Consideration must at the desire of :

a. Promisor

b. Promisee

34. An acceptance is made as far as the offeror is concerned, as soon as the letter containing the acceptance is posted, to offerors correct address; it binds the offeror, but not the acceptor.

a. True b. False c. Partly true d. Partly false

35. Contracts over the telephone are regarded the same in principle as those negotiated by the parties in the actual presence of each other.

a. True b. False c. Partly true d. Partly false

36. Contracts contingent upon the non-happening of an uncertain future event can be

enforced when the happening of that event becomes impossible and not before –

a. Section 32

b. Section 33

c. Section 34

d. Section 35

37. Contracts may be discharged or terminated by which of the following mode/modes:

a. lapse of time;

b. operation of law;

c. impossibility of performance

d. all of the above

38. In case of death of the promisor before performance

a. the representatives of the promisor are not bound to perform the promise.

b. the representatives of the promisor are bound to perform the promise.

c. the representatives of the promisor are bound to perform the promise unless a

contrary intention appears from the contract.

d. the representatives of the promisor are not bound to perform the promise unless a


39. “Wealth, in a commercial age, is made up largely of promises”. a. True b. False c. Partly true. d. Partly false

40. Indian Contract Act embodied the simple and elementary rules relating to: a. Sale of goods




b. Partnership

c. Both a and b d. None

41. The freedoms given in article …………..of the Indian constitution with its restrictions are the rights in rem.

a. 14 b. 15 c. 19 d. 16

42. Rights and obligations created by parties shall be performed and their non performance shall give rise to

a. legal consequences . b. illegal consequneces

43. Offer and its acceptance Constitute Agreement and its enforceability an agreement.

a. True b. False

44. According to Section ………, “All agreements are contracts if they are made by free consent of parties, competent to contract, for a lawful consideration and with a lawful object and are

not hereby expressly declared to be void”. a. 14 b. 10 c. 15 d. 16

45. Which of the following contracts are classified as contracts on basis of enforceability? a. Unenforceable contract b. Void contract c. Void agreement d. All of the above

46. Which of the following contracts are classified on the basis of formation? a. Express contract b. Tacit contract c. Implied/ Quasi contract d. All of the above

47. X offers Y to supply 10 bags of rice for ` 50,000/- Y agreed for it, Is it a contract? a. It is a contract b. It is not a contract

48. X offers Y a minor to deliver 100 bags of rice. Y agrees but further not supplied the rice. Here can X sue Y?

a. X cannot sue Y b. X can sue Y

49. “All illegal agreements are void because an illegal agreement is not enforceable by law but all void agreements are not illegal,” as it is not necessary that object and consideration of every agreement is……………………..

a. Unlawful b. Lawful

50. ……………….contracts are also known as contracts with executory consideration. a. Bilateral b. Unilateral




TEST PAPER 1


a. Void contract



d. All of the above



a. Executory

b. Executed

c. Both a and b

d. None


a. Void contract



d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. True

b. False

c. Partly true

d. Partly false







b. Harvey v. Facey




a. Section 7

b. Section 6

c. Section 8

d. Section 9



b. Consim-ed-idem

c. Quid- pro- quo

d. Magis pareat




c. Both a and b

d. None


a. Present

b. Past

c. Future

d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. quasi contract

b. implied contract

c. both a and b

d. none


a. True

b. False

c. Partly true

d. Partly false











a. True

b. False

c. Partly true

d. Partly false

66. Directing is an important function of management which involves communicating and

providing leadership to the subordinates.

a. True

b. False

c. Partly true

d. Partly false

67. “Coordination is the effort to assure a smooth interplay of the functions and forces of the

different component parts of an organization to the end that its purpose will be realized

with a minimum of friction and a maximum of collaborative effectiveness.” It is given by:

a. Tead

b. Fead

c. Cread

d. Maslow




b. Sir George Bhush


d. Sir David Gibbs


a. mercantile

b. commercial

c. Both a and b

d. None


a. September,1872.

b. October, 1872

c. September, 1873

d. October, 1873


a. True

b. False

c. Partly true

d. Partly false





a. Salmon



d. Sir George Bhush




a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)



a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)


a. Strict consent.





satisfied.

a. True

b. False

c. Partly true

d. Partly false


a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)

78. …………………is an integration or synchronization of group efforts in an organization to

achieve its objectives.

a. Coordination

b. Direction

c. Leadership

d. All of the above

79. Coordination is a static process.

a. True




b. False

c. Partly true

d. Partly false

80. ‘Consideration’ resembles the autocratic style of leadership.

a. True

b. False

c. Partly true

d. Partly false

81. According to…………….., “leadership is the activity of influencing people to strive willingly for

group objectives”.

a. George R. Terry

b. Koontz and O’Donnell

c. Fernandes

d. Chiplankar

82. Which theory is also known as the “Two Factor Theory”?

a. Theory of Doughlas Mcgregor

b. Herzberg’s Motivation – Hygiene Theory

83. The approach towards directing the subordinates will depend upon the situation only.

a. True

b. False

c. Partly true

d. Partly false

84. Goals are similar to needs but imply that the object is social, not merely physiological.

a. True

b. False

c. Partly true

d. Partly false

85. Transactional Analysis can give employees fresh insight into their own personalities.

a. True

b. False

c. Partly true

d. Partly false

86. While decoding the message the sender determines the method of transmission.

a. True

b. False

c. Partly true

d. Partly false

87. Formal channels of communication are referred to as “Communication through the chain of

command”.

a. True

b. False




c. Partly true

d. Partly false

88. A confession of mistake may lead to material gains in terms of promotion and pay hike

a. True

b. False

c. Partly true

d. Partly false

89. ……………….. state that “leadership is influencing people to follow in the achievement of a

specialised goal”.

a. Koontz and O’Donnell

b. George Terry

c. Henry Fayol

d. Maslow

90. Parent is a thought concept of life.

a. True

b. False

c. Partly true

d. Partly false

91. Child is taught concept of life

a. True

b. False

c. Partly true

d. Partly false

92. What are the elements of direction ?

a. Motivation

b. Leadership

c. Communication

d. All of the above

93. The principles of direction are:

a. Follow up

b. Unity of direction

c. Direction Supervision

d. All of the above

94. Directing is the guidance, the inspiration, the leadership of those men and women that

constitute the real core of the responsibilities of management.

a. Urwick and Brech

b. Mc Frebdi

c. Mec donalds

d. Maslow

95. Coordination is the process whereby an executive develops an orderly pattern of group

efforts among his subordinates and secures unity of action in the pursuit of a common

purpose.




a. McFarland

b. Mc Frebdi

c. Mec donalds

d. Maslow

96. The studies conducted at University of Michigan revealed …………….kinds of style.

a. 2

b. 3

c. 4

d. 5

97. Communication is ……………………….. of understanding.

a. Transaction

b. Acceptance

c. Transmission

d. None of the above

98. Co-ordination is not a once for all exercise, rather it is an outgoing …………………..

a. Process

b. Planning

c. Activity


99. Which of these is a type of internal Co-ordination:

a. Vertical Co-ordination

b. Horizontal Co-ordination

c. Both a and b

d. None

100. We can overcome barriers to communication by which of the following:

a. Feedback

b. Strategic use of grapevine

c. Using proper language

d. All of the above

101. Which of the following are the positive aspects of grape wine?

a. The informal network of communication represents the natural desire of the

subordinates in an organization to interact and communicate with one another, and

fulfills their desire to know the latest information or course of events.

b. The grapevine works with surprising speed and is often faster than the official

channels; information gets disseminated very promptly.

c. It also offers the managers insight into what the subordinates think and feel.

d. All of the above

102. Which of the following are the negative aspects of grapevine :

a. Often the grapevine carries rumours, and inaccurate and partial information because

of varied interpretations of each individual the information gets distorted.




b. Since it is spontaneous, the grapevine has no stable associates or a definite pattern.

Generally, a few persons are usually found active participants in the grapevine. The

path and behaviour of the grapevine is also unpredictable.

c. Both a and b

d. Neither a nor b

103. Models on somebody’s face is included in Action.

a. True

b. False

c. Partly true

d. Partly false

104. The principles of direction are :

a. Follow up


c. Direct supervision

d. All of the above

105. Certain behavioural patterns learned and used with skill as seen in leaders are:

a. Awareness

b. Empathy

c. Objectivity

d. All of the above

106. State whether the following process of communication is true or false:

- Develop an Idea

- Encode

- Receive

- Transmit

- Decode

- Feedback

a. True

b. False

c. Partly true

d. Partly false

107. Which of the following is / are the principle of communication:

a. Principle of Clarity

b. Principle of Integrity

c. Principle of Strategic use of Informal Organization

d. All of the above

108. Ordway Tead emphasised on………… qualities for effective testleadership qualities.

a. 8

b. 9

c. 10

d. 11

109. Co-ordination is the essence of …………………………..




a. Entrepreneurship

b. Secretarialship

c. Partnership

d. Managership

110. ……………………………communication is more participative in nature.

a. Downward

b. Upward

c. Both a and b


111. Co-ordination is different from ……………………

a. Co-operation

b. Organisation

c. Management


112. Co-ordination is not:

a. A continuous and dynamic process

b. Relevant for individual efforts

c. Laying emphasizes on unity of efforts

d. The responsibility of every manager

113. The word “management” has its origin in the Greek word …………… which means

‘management.’

a. Nomos

b. Pareat

c. Magis

d. Walat

114. Management denotes only and only a special position.

a. True

b. False

c. Partly true

d. Partly false

115. The objectives of management are as follows:

a. Achieving Maximum Output with Minimum Efforts

b. Optimum Use of Resources

c. Maximum Prosperity

d. All of the above

116. Importance of management are as follows:

a. Achieving Group Goals

b. Optimum Utilization of Resources

c. Reduces Costs

d. All of the above

117. The scientific management movement early in the ……………century was hailed as a

“second industrial revolution”.




a. Twentieth

b. Thirtieth

c. Fortieth

d. sixtieth

118. Administration is a top-level function while management is a lower-level function.

a. True

b. False

c. Partly true

d. Partly false

119. Managerial skills are classified as technical, human and conceptual by ………………….

a. Maslow

b. Katz

c. Fayol

d. All of the above

120. …………….has emphasised the importance of intellectual capacity as a prerequisite to

managerial effectiveness.

a. W.J. Reddin

b. A.R Rehmann

c. Henry Fayol

d. Fredrick Taylor

121. To destroy or hinder the efficiency or frustrate is the meaning for:

a. Hamstrung

b. Magnitude

c. Reckoned

d. bewildering

122. ………….assigns three jobs to management: Managing a business; managing

managers; and managing workers and work.

a. Taylor

b. Maslow

c. Drucker

d. Fredrick

123. ……………are those business plans that keep changes in perception and branding as

their

primary goals.

a. Operational plan

b. Marketing plan

c. Project plans

d. Strategic plan

124. Strategy is not so popular in military science.

a. True

b. False

c. Partly true




d. Partly false

125. Planning premises may be viewed as :

a. external and internal

b. tangible and intangible

c. controllable, semi-controllable and non-controllable

d. all of the above

126. the benefit of line organisation are:

a. It fixes responsibility for the performance of tasks in a definite manner upon definite

individuals.

b. With a unified control and undivided loyalty, line organisation ensures excellent

discipline.

c. It is less expensive due to non-involvement of staff personnel.

d. All of the above

127. Organisation structure should be static.

a. True

b. False

c. Partly true

d. Partly false

128. …………………described authority as “the supreme coordinating power”.

a. Mooney

b. Fayol

c. Taylor

d. Maslow

129. Barriers to delegation are:

a. Fear of loss of Power

b. Certain personal attitudes

c. Lack of ability to direct well

d. All of the above

130. The main purpose of an employment interview are:

a. To find out the suitability of the candidate;

b. To seek more information about the candidate;

c. To give him an accurate picture of the job with details of the terms and conditions

implied, and some idea about the organization’s policies.

d. All of the above

131. Which of the following are the traditional methods:

a. Forced Distribution

b. Graphic-rating scales

c. Check Lists

d. All of the above

132. …………… is the simplest of all methods

a. Unstructured Appraisal

b. Ranking Method




c. Forced Distribution Method

d. Graphic Rating Scales

133. ………………..who proposed goal setting approach to performance appraisal which he

called ‘Management by Objectives and Self Control’

a. Peter Drucker

b. Henry fayol

c. Fredrick taylor

d. Maslow

134. ………………… method involves employee appraisal on the basis of events or incidents

and the employee’s reactions to them reflecting positive or negative aspects of his

behaviour.

a. Critical Incident Method

b. Field Review Method

c. Graphic Rating Scales

d. Forced Distribution Method

135. Functional organisation is characterised by total absence of staff specialists.

a. True

b. False

c. Partly true

d. Partly false

136. In case of matrix organisation, the manufacturing department constitutes the

horizontal chains of command.

a. True

b. False

c. Partly true

d. Partly false

137. A manager in an organisation is judged by the work he performs on his own. Hence,

delegation of authority is not essential for him.

a. True

b. False

c. Partly true

d. Partly false

138. ……………………. Is the oldest pattern of organisation.

a. Functional organisation

b. Project Management organisation

c. Matrix organisation


139. ……………… opines that it “has to do with the forces that maintain and alter the

direction, quality and intensity of behaviour”.

a. M.R. Jones

b. Joe Kelly

c. N.R Jones




d. Roe Kelly

140. ………………. defined supervision as “Supervision is guiding and directing efforts of

employees and other resources to accomplish stated work outputs.”

a. George R. Terry

b. Stephen G. Franklin

c. Both a and b

d. None

141. “Unity of command cannot exist without unity of direction, but does not flow from

it”

a. Fayol

b. Maslow

c. Taylor

d. All

142. Lewin, Lipitt and White conducted leadership studies in ……………….

a. 1938

b. 1939

c. 1940

d. 1941

143. Autocratic style is conceived by:

a. McGregor

b. Taylor

c. Macdonalds

d. Tiger Shroff

144. In which of the following leadership the leader depends largely upon the group and

its

members to establish their own goals and make their own decisions.

a. Autocratic style of leadership

b. Democratic Style of Leadership

c. Democratic style of leadership

d. Laissez-faire style of Leadership

145. One of the most widely known approaches to dramatising leadership style is the

Managerial Grid, developed during the sixties by

a. Robert Blake

b. Jane Mouton

c. Both a and b

d. None

146. Internal co-ordination is the establishment of a relationship between the employees

of the organization and the outsiders of the enterprise.

a. True

b. False

c. Partly true

d. Partly false




147. Importance of co-ordination is/ are:

a. Functional Differentiation

b. Specialization

c. Reconciliation of Goals

d. All of the above

148. Fredrick Herzberg has developed the ……………..

a. Equity Theory of Motivation

b. Motivation Hygiene Theory

c. Hierarchy of Needs

d. All of the above

149. There are …………. Types of ego states.

a. 2

b. 3

c. 4

d. 5

150. Who pointed out that effective direction depends upon the ‘harmony of objectives”

?

a. Taylor

b. Henri Fayol

c. Ordway Tead

d. Koontz and O’donnell

ANSWERS

SR.NO ANS SR.NO ANS SR.NO ANS SR.NO ANS SR.NO ANS

1 A 21 B 41 B 61 A 81 D

2 A 22 B 42 D 62 B 82 B

3 C 23 A 43 D 63 A 83 A

4 B 24 C 44 A 64 B 84 A

5 A 25 C 45 A 65 D 85 B

6 A 26 B 46 A 66 D 86 B

7 B 27 D 47 C 67 A 87 B

8 A 28 A 48 C 68 B 88 D

9 C 29 B 49 C 69 B 89 B

10 D 30 B 50 D 70 A 90 C

11 B 31 A 51 D 71 A 91 A

12 C 32 B 52 C 72 C 92 B

13 B 33 B 53 B 73 B 93 A

14 A 34 B 54 D 74 B 94 D

15 B 35 A 55 D 75 D 95 C

16 A 36 B 56 B 76 D 96 B




17 A 37 A 57 D 77 B 97 D

18 A 38 B 58 C 78 A 98 B

19 C 39 A 59 D 79 D 99 B

20 A 40 B 60 B 80 D 100 A

TEST PAPER 2

1. Internal and external factors affect the business.

a. True

b. False

c. Partly true

d. Partly false

2. The nature of the global business environment guarantees that no matter how hard we

work to create a stable and healthy organisation, our organisation will continue to

experience dramatic changes far beyond our control.

a. Margaret J Wheatley

b. Jhon Cena

c. Geeta Phogat

d. Maslow

3. According to …………..“Environment consists of atoms and molecules, agglomeration of

things in motion, alive, of men and emotions, of physical and social law, social ideas, norms

of actions, of forces and resistance. The

number is infinite and they are always present, they are always changing”.

a. Barnard

b. Margaret J Wheatley

c. Maslow

d. Henry Fayol

4. Environment includes all the conditions and circumstances, influences surrounding and

affects the total organization or any of its part.

a. True

b. False




c. Partly true

d. Partly false

5. The purposes of business that goes beyond earning profits are:

a. an important institution in society

b. for the supply of goods and services

c. creating job opportunities

d. all of the above

6. Environment factors are largely if not totally, external and beyond the control of individual

industrial enterprises and their managements.

a. True

b. False

c. Partly true

d. Partly false

7. Macro environment is also known as ……………

a. General environment

b. Remote environment.

c. Both a and b


8. The acronym for the macro analysis is ……………

a. CAMEL

b. STEEP

c. 5MS

d. All of the above

9. Match the following :

(i) Lower Interest rate (a) Political factor

(ii) Demand for Packaged Food (b) Technological factor

(iii) Strike in the factory (c) Social factor

(iv) New Methods of Production (d) Economic factor

a. (i)(d); (ii)(c); (iii)(a); (iv)(d).

b. (i)(c);(ii)(d);(iii)(b);(iv)(a)

c. (i)(a);(ii)(b);(iii)(c),(iv)(d)

d. (i)(b);(ii)(c),(iii)(d);(iv)(a)

10. Liberalisation refers to the process of eliminating necessary controls and restrictions on the

smooth functioning of business enterprises.

a. True

b. False

c. Partly true

d. Partly false




11. The functions of privatization are as follows:

a. It reduces the fiscal burden of the state by relieving it of the losses of the SOEs and

reducing the size of the bureaucracy

b. Privatization of SOEs enables the government to mop up funds

c. Privatization helps the state to trim the size of the administrative machinery


12. ……………defines the company’s business, its objectives and its approach to reach those

objectives.

a. Vision statement

b. Mission statement

c. Both a and b


13. Internal environment contain:

a. Company Image and Brand Equity

b. Value System

c. Competitive Advantage

d. All of the above

14. The involvement and initiatives of the people in an organisation at different levels may

…………. From organisation to organisation.

a. Same

b. Vary

c. Both a and b


15. Every activity of human being involves…………… to satisfy his unlimited wants and desire.

a. Business

b. Education

c. Government


16. Internal environment consist of :

a. 4Ms

b. 10Ms

c. 6Ms

d. 7Ms

17. Sources of finance to a business are:

a. Share capital

b. Banking and other financial institutions

c. Unorganised capital market

d. All of the above

18. …………….is the part of Internal Environment

a. Marketing resources

b. Customers

c. Society




d. Globalisation

19. ………………..response leads to significantly different outcomes.

a. Only proactive

b. Only reactive

c. Proactive or reactive


20. External environment consist of:

a. Micro environment

b. Macro environment

c. Both a and b


21. The message from Wal-Mart today to the rest of the business community is there need not

be any conflict between the environment and the economy. We will find the way not only

to reconcile (those), but to find new profits and new opportunities as we do the right thing.

a. Al Gore

b. Margaret J Wheatley

c. Maslow

d. Henry Fayol

22. Business activities consist of:

a. industrial

b. commercial

c. Both a and b

d. None

23. Anybody can be a member of a joint hindu family business.

a. True

b. False

c. Partly true

d. Partly false

24. The liability of the karta is unlimited.

a. True

b. False

c. Partly true

d. Partly false

25. A joint hindu family business continues to exist on the death of a co-parcener.

a. True

b. False

c. Partly true

d. Partly false

26. A joint hindu family business ceases to exist on the death of the Karta.

a. True




b. False

c. Partly true

d. Partly false

27. A joint hindu family business comes into existence by hindu law.

a. True

b. False

c. Partly true

d. Partly false

28. “Partnership is the relation between persons competing to make contract who agree to

carry on a lawful business In common with a view of private gain.”

a. True

b. False

c. Partly true

d. Partly false

29. …………………are considered as important forms of business organisation.

a. Sole proprietorship

b. HUF

c. Partnership

d. All of the above

30. LLP comes under ……….Act.

a. Companies

b. Partnership

c. Limited liabilities


31. A co-operative’s primary motive is to benefit its ………….

a. Member

b. Shareholder

c. Debentureholder

d. Manager

32. Reserve Bank is a:

a. Statutory Body

b. Public corporations

c. HUF

d. Company

33. LIC is an example of :

a. Statutory Body

b. Public corporations

c. HUF

d. Company

34. The members of a co-operative get a fixed rate of dividend from profit.

a. True




b. False

c. Partly true

d. Partly false

35. A co-operative society can not enter into any contract without consent of all members.

a. True

b. False

c. Partly true

d. Partly false

36. Limited Liability Partnership Act, 2008 came into effect by way of notification dated …………..

a. 31st March 2008

b. 31st March 2007

c. 31ST March 2006

d. 31st March 2009.

37. A co-operative society is a ................................. life.

a. Involuntary

b. Voluntary

38. Advantage of LLP are

a. Any act of the partner without the other may bind the LLP

b. Under some cases, liability may extend to personal assets of partners

c. Separation of Management from owners

d. All of the above

39. Company can be ………………….

a. Private

b. Public

c. Both a and b


40. HUF is found in …………..

a. India

b. France

c. China

d. Rest part of world

41. “Organization structure is the pattern of relationships among the component parts of the

organization.” Is given by :

a. Rourse and merry

b. Cast and zweigrosen

c. Kast and Rosenzweig

d. All of the above









43. In ………………………. A supervisor exercises direct supervision over a subordinate.

a. Matrix

b. Functional

c. Line and staff

d. Line

State whether the following statement is true or false:

44. Line organisation is flexible and changeable

a. True

b. False

c. Partly true

d. Partly false


a. True

b. False

c. Partly true

d. Partly false

46. In case of matrix organisation, the manufacturing department constitutes the horizontal

chains of command.

a. True

b. False

c. Partly true

d. Partly false



a. True

b. False

c. Partly true

d. Partly false

48. In decentralization, management exercises maximum control.

a. True

b. False

c. Partly true

d. Partly false

49. Barriers to Delegation are :

a. Fear of loss of power.

b. Certain personal attitudes.


d. All of the above

50. Delegation is ………………….

a. Individualistic

b. Totalistic

c. Both a and b




d. None

51. According to …………………,” Delegation is the process a manager follows in dividing the work

assigned to him so that he performs that part which only he, because of his unique

organisational placement, can perform effectively and so that he can get others to help him

with what remains”

a. Allen solly

b. M. A Allen

c. L.A Solly

d. L.A. Allen

52. Larger part of authority is delegated above the level of authority.

a. True

b. False

c. Partly true

d. Partly false

53. ……………….. refers to the tendency to withhold a larger part of formal authority at higher

echelons of management hierarchy.

a. Centralisation

b. Decentralisation

c. Organisation

d. Delegation

54. Informal organisation refers to the relationship between people based on personal and on

procedure attitudes.

a. True

b. False

c. Partly true

d. Partly false

55. Responsibility is described as an obligation to perform a task.

a. True

b. False

c. Partly true

d. Partly false

56. The full form of BARS is

a. Behaviorally Anchored Rating Scale.

b. Block Anchor Response Stipulity

c. Bold Actor Reopen Stream

d. All of the above

57. The functions of HRM is :

a. The process focuses on people.

b. The process of HRM is pervasive

c. It is present in each and every organization.

d. All of the above

58. The limitation of HRM is




a. Unpredicted nature of human being.

b. Problems of surplus staff.

c. Conservative attitude of top management: management does not want to spend

money in HRM.

d. All of the above

59. HRM is a……………. term.

a. Short

b. Narrow

c. Broad

d. All of the above

60. Human Resource Management encompasses those activities designed to provide for and

coordinate the human resources of an organization this statement is given by :

a. Salmond

b. Hick and malsow

c. Newmann and summer

d. Byars and Rue

61. “From the national point of view, human resources may be defined as knowledge, skills,

creative abilities, talents and aptitudes obtained in the population; whereas from the

viewpoint of the individual enterprise, they represent the total of the inherent abilities,

acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.”

This statement is given by :

a. Jucius Michael

b. Leon C. Megginson

c. Edwin B. Flippo

d. Salmond

62. The workers those working on machines and engaged in loading, unloading are known as:

a. Blue collar

b. White collar

c. Green collar

d. All of the above

63. Personnel management is a ‘one shot’ function

a. True

b. False

c. Partly true

d. Partly false

64. “The objectives of personnel administration include the utilization of human resources

effectively, establishment and maintenance of productive and self-respecting working

relationships among the participants and attainment of maximum individual development

of the members in the organization.” Is given by:

a. Edwin B. Flippo

b. Salmond

c. Hicks




d. Dirks

65. External recruitment is a quick process.

a. True

b. False

c. Partly true

d. Partly false

66. …………… is the process of searching for prospective employees and encouraging them to

apply for the jobs in an organization.

a. Selection

b. Recruitment

c. Appointment

d. All of the above

67. Under which of the following the appraiser is required to write down his impression about

the person being appraised in an unstructured way.

a. Structured appraisal

b. Unstructured appraisal

c. Forced distribution method

d. Ranking method

68. Personnel management is a pervasive function of management.

a. True

b. False

c. Partly true

d. Partly false

69. “Recruitment is the development and maintenance of adequate manpower resources. It

involves the creation of a pool of available labour upon whom the organization can draw

when it needs additional employees.” Was given by

a. Edwin B. Flippo

b. Salmond

c. Hicks

d. Dale S. Beach

70. Which function is concerned with the determination of adequate and equitable

remuneration of the employees in the organization for their contribution to the

organizational goals.

a. Compensation

b. Development

c. Employment

d. All of the above

71. Even if the buyer has seen the goods, the goods must be in accordance with the

description was held in:

a. Beale v. Taylor

b. Salmon v salmon

c. Grant v. Australian Knitting Mills




d. All of the above

72. The term “caveat emptor” is a …………word which means “let the buyer beware”.

a. Latin

b. Greek

c. Indian

d. All of the above

73. Stipulation essential to the ,main purpose of the contract is :

a. A condition

b. A warranty

c. Both of the above


74. Passing of property in the goods means:

a. Delivery of the goods by the seller to the buyer.

b. Transfer of ownership of the goods

c. Transfer of custody of goods

d. Delivery of the documents to the title of the goods.

75. A breach of warranty ……………..be termed as a breach of condition.

a. Can

b. Cannot

c. May

d. Must

76. The ownership, in case of sale on approval, is transferred to the buyer.

a. When the buyer accepts the goods

b. When the seller sales the goods

c. When the buyer fails to return goods

d. All of the above

77. A condition may be treated as warranty.

a. By waiver

b. Be election

c. By acceptance

d. All of the above

78. The doctrine of Caveat Emptor does not apply:

a. When the goods are bought by sample

b. When the goods are bought by sample as well as description

c. When the goods are purchased under its trade name

d. All of the above

79. In case of breach of condition :

a. The buyer may waive the condition

b. The buyer may treat the condition as warranty

c. All of the above


80. No sale can take place without a price. The price may be fixed:




a. at the time of contract by the parties themselves

b. may be left to be determined by the course of dealings between the parties

c. may be left to be fixed in some way stipulated in the contract

d. All of the above

81. A dentist agrees to supply a set of teeth to his patient with his own material for a sum of Rs

500.

a. This is contract of sale

b. This is a contract for work and material

c. This is an agreement to sale

d. This is not a contract of sale

82. An unpaid seller is a person who has not been paid:

a. Full price

b. Part of the price

c. Two-third of the price

d. All of the above

83. An auction sale means………….

a. Invitation to make an offer

b. Communication regarding goods in course of negotiation

c. A statement of information

d. An offer

84. Any bidder may retract his bid :

a. Before announcement is made of completion of the auction.

b. Any time the bidder informs the auctioneer

c. When the buyer agrees

d. All of the above

85. Right of lein means

a. To deliever the goods

b. To retain the possession

c. To regain the possession

d. Any of the above

86. Right of an unpaid seller include ……………

a. Right to the goods

b. Right of stoppage in transit

c. Right of re-sale

d. All of the above

87. It shall not be lawful for the seller to bid himself at an auction :

a. Where the sellers right to bid is not notified.

b. Where the auctioneer does not allow the seller to bid

c. Where the buyer’s right to bid is not notified.

d. Where the buyer does not allow the seller to bid.

88. ‘Nemo dat quod non habeat’

a. Is in French language




b. Is in latin language

c. Is in Russian language

d. Is in Japanese language

89. The price in contract of sale may be fixed by the :

a. Seller

b. Buyer

c. Third party

d. Any of the above

90. The term ‘goods’ is defined in the Sale of Goods Act , 1930 under section :

a. 2(5)

b. 2(7)

c. 2(9)

d. 2(11)

91. The goods which form the subject of a contract of sale may be:

a. Any existing goods

b. Any existing goods, owned or possessed by the seller

c. Future goods

d. Existing goods owned or possessed by the seller or future goods

92. Goods may be:

a. Existing goods

b. Future goods

c. Unascertained goods

d. Any of the above

93. In a contract of sale there are at least:

a. 1

b. 2

c. 3

d. 4

94. A contract of sale may be

a. Executed

b. Executory

c. Both a and b

d. None

95. A contract to sale contingent goods is:

a. Sale

b. Agreement to sale

c. Contingent sale

d. Contingent agreement

96. Which law govern the sale of property of movable property in India?

a. Transfer of Property Act, 1872

b. Indian Contract Act, 1872

c. Sale of Goods Act, 1930




d. CPC,1908

97. Sale of Goods Act came into force on

a. 1/1/1930

b. 1/4/1930

c. 1/7/1930

d. 2/10/1930

98. Documents of titles authorises a person:

a. To have right over the goods

b. To transfer the goods

c. To receive the goods as buyer

d. All of the above

99. ………………lays down the rules regulating auction sales.

a. Section 64

b. Section 65

c. Section 66

d. Section 67

100. A “hire purchase agreement” is basically a contract of hire that gives the hirer an

option to purchase the goods at the end of the hiring period.

a. True

b. False

c. Partly true

d. Partly false


1 A 21 A 41 C 61 B 81 A

2 A 22 C 42 D 62 A 82 A

3 A 23 B 43 D 63 B 83 B

4 A 24 A 44 B 64 D 84 A

5 D 25 B 45 B 65 B 85 D

6 A 26 A 46 B 66 B 86 D

7 C 27 B 47 B 67 B 87 A

8 B 28 A 48 B 68 A 88 B

9 A 29 D 49 D 69 D 89 D

10 B 30 C 50 A 70 A 90 A

11 D 31 A 51 D 71 A 91 D

12 B 32 A 52 B 72 A 92 D

13 D 33 B 53 A 73 B 93 B

14 B 34 B 54 B 74 B 94 C

15 A 35 A 55 A 75 B 95 B




16 C 36 D 56 A 76 A 96 C

17 D 37 B 57 D 77 D 97 C

18 A 38 C 58 D 78 D 98 D

19 C 39 C 59 C 79 C 99 A

20 C 40 A 60 D 80 D 100 A

TEST PAPER 3

1. Information is giving out , and communication is not getting through.

a. True

b. False

c. Partly true

d. Partly false

2. Which of the following is not the importance of Communication:

a. Increase in size

b. Impersonal Asset

c. Public Relation

d. Growing specialization

3. The process of communication is “Sender; Message; encoding; decoding; Receiver;

message” is the above statement true or false:

a. False

b. True

c. Partly true

d. Partly false

4. Which of the following does not comes under Seven C’s of Effective Communication:

a. Clarity

b. Conciseness

c. Courtesy

d. Costious

5. Communication may be divided into …….parts :

a. Three

b. Two

c. Four

d. Five

6. Meaning of lethargic means :




a. Prominent

b. Acquaintance

c. Frown

d. Sluggish

7. The flow or pattern of communication may be …………

a. Downward

b. Upward

c. Diagonal

d. All of the above

8. Communication is an …………..way process.

a. One

b. Two

c. Three

d. Four

9. Communication is not an on going process.

a. False

b. True

c. Partly true

d. Partly false

10. ………………..means study of body language.

a. Anthropology

b. Psychology

c. Sociology

d. Political science

11. Communication is an intra-disciplinary process.

a. False

b. True

c. Partly true

d. Partly false

12. Knowledge derived from various science is used in communication.

a. False

b. True

c. Partly true

d. Partly false

13. Verbal communication does includes .

a. Facial expressions

b. Gestures

c. Movements


14. As a result of ……………. Of commercial activities in recent years, there has been an increased

use of American spellings in day to day correspondence in respect of international trade.

a. Globalisation




b. Liberalisation

c. Nationalisation


15. Visual communication is only and only with words:

a. False

b. True

c. Partly true

d. Partly false

16. The word ‘ communicate’ has been derived from the …………… word.

a. Latin

b. Greek

c. French

d. Indian

17. The word communicate means ………….

a. Share

b. Make common

c. Participate

d. All of the above

18. “ The two words ‘ information’ and ‘communication’ are often used interchangeably, but

they signify quite different things” this statement is given by :

a. Sydney J. Gorris

b. Sydney J. Harris

c. Sydney J. clouris

d. Sydney J. roshan

19. Communication can be effective even if both the sender and receiver are not aware of the

goal of communication .

a. False

b. True

c. Partly true

d. Partly false

20. Who has said the following lines : “ Reading maketh a full man, writing an exact man,

conference a ready man”

a. Francis Bacon

b. George Bhush

c. Warren buffet

d. None

21. ………………… means occurring within the individual’s mind or self.

a. Intrapersonal

b. Perceptile

c. Lethargic

d. Vague

22. ……………….. is the first step of process of communication.




a. Message

b. Sender

c. Encoding

d. Decoding

23. Full form of ‘USP’ is ………..

a. Unique Situation Point

b. Unique selling proposition

c. Unique sarcastic Position

d. None

24. Which of the following is the importance of communication:

a. Increase in Size

b. Growing Specialisation

c. Human relation

d. All of the above

25. Which of the following includes the means of Audio-visual communication:

a. Television

b. Cinema

c. Video conferencing

d. All of the above

26. In which of the following the communication flow usually take place between people of the

same status of hierarchy in the organisation:

a. Horizontal

b. Vertical

c. Diagonal

d. Upward

27. Which of the following are the type of communication:

a. Internal

b. External

c. None

d. Both

28. Which of the following are the types of communication flow:

a. Downward

b. Upward

c. Diagonal

d. All of the above

29. Which of the following is not the barrier to communication:

a. Lack of management

b. Lack of Planning

c. False assumption

d. Ambiguity

30. Which of the following has the meaning “ appreciable”

a. Prominent




b. Frown

c. Perceptible

d. All

31. Which of the following has the meaning “Abrupt”

a. Sudden

b. Unexpected

c. None

d. Both a and b

32. …………………… is the culmination of the communication process.

a. Feedback

b. Recepient

c. Message

d. Summary

33. …………… is the sole means of communication.

a. Voice

b. Tone

c. Face

d. All of the above

State whether following statements are true or false:

34. There must be at least three persons to allow the completion of the process in interpersonal

communication.

a. False

b. True

c. Partly true

d. Partly false

35. Oral communication consumes more time compared to written communication.

a. False

b. True

c. Partly true

d. Partly false

36. Lack of planning acts as a communication barrier.

a. False

b. True

c. Partly true

d. Partly false

37. When one communicates to transact some commercial activity i.e providing goods or

service, with the intention of generating profits, it is termed as …………..

a. Business intermission

b. Business communication

c. Business transaction

d. All of the above




38. Message is broadly classified into ………………categories.

a. 1

b. 2

c. 3

d. 4

39. …………………….. is essential for success in every job.

a. Communication skill

b. Business skill

c. Body Language

d. All of the above

40. What is the meaning of the word ‘pungent’

a. Occurring within the individual’s mind or self.

b. Sharply affecting the organs of taste or smell

c. Capable of being perceived

d. Not clearly

41. Verbal communication does not include:

a. Oral

b. Written

c. Visual

d. Gestures

42. ……………… have resulted in severe competition among public sector, private sector and

foreign banks.

a. Liberalization

b. Globalisation

c. All of the above


43. Which of the following is not the advantage of written communication:

a. The adequacies of the first message may only be revealed when the reply arrives.

b. It takes too much time to compose a message in writing.

c. It allows us sufficient time to plan the document..

d. All of the above

44. ………………….. is one of the earliest as well as the most widely used medium of

communication.

a. Speech

b. Tape recorder

c. Grape vine

d. All of the above

45. Visual communication could be with ………………

a. Words

b. Pictures

c. Combination of both

d. All of the above




46. Visuals can be used……………

a. Dependently

b. Independently

c. Interchangeable

d. Definetly

47. Effective communication depends on which of the following things:

a. Understandable messages.

b. Credibility of the sender.

c. How the message affects the receiver.

d. All of the above

48. Traditional organisation have a ………………..structure.

a. Vertical

b. Horizontal

c. Diagonal

d. All of the above

49. A situation where tasks to be completed involve more than one department in the

organisation.

a. Downward

b. Upward

c. Diagonal

d. Vertical

50. Which of the following are the disadvantage of oral communication.

a. Oral communication depends upon on mental make up of sender/ receiver.

b. Communication is not a one-sided activity

c. Bad/ Partial Listening Affects message.

d. All of the above

51. As per……………, a contingent contract is a contract to do or not to do something, if some

event collateral to such contract, does or does not happen.

a. Section 30

b. Section 31

c. Section 32

d. Section 33

52. Where a substantial part of the illegal transaction has not been carried out and the plaintiff

is truly and genuinely repentant.

a. Bigos v. Bonstead

b. Film Pratapchand v. Firm Kotri

c. Pearce v. Brookes

d. Salmon v salmon

53. Wagerning agreements are nothing but ordinary betting agreements.

a. True

b. False

c. Partly true




d. Partly false

54. Our courts are not consistent on the point whether reasonable restraints are permitted or

not.

a. Madhub Chunder v. RaCoomar

b. Mackenzie v. Sitarmiah

c. Niranjan Shanker Golikari v. The Century Spinning and Manufacturing Co. Ltd.

d. Niranjan Shanker Golikari v.

55. ……………………………of Indian Contract Act, 1872, states, “A contract which ceases to be

enforceable by law becomes void when it ceases to be enforceable.”

a. Section 2(j)

b. Section 2(k)

c. Section 2(l)

d. Section 2(g)

56. Agreement an unqualified acceptance of a definite offer.

a. consensus ad idem

b. quo rutom consessus

c. consis conses idem

d. rutom consessus idem

57. ……………………….which means that it makes the form of promise to be performed in the future.

a. Executory

b. Future

c. Both a and b

d. None

58. …………………….in which it is an act or forbearance made or suffered for a promise.

a. Executed

b. Present

c. Both a and b

d. None

59. A contract is always based upon:

a. Agreement an unqualified acceptance of a definite offer

b. An intent to create legal obligations

c. Consideration.

d. All of the above

60. A corporation is an artificial person created by act.

a. True

b. False

c. Partly true

d. Partly false

61. Coercion is defined in…………

a. Section 14

b. Section 15

c. Section 16




d. Section 17

62. If there is a mistake of law of the land, the contract is binding because everyone is deemed

to have knowledge of law of the land and ignorance of law is no excuse (ignorantia juris

non-excusat).

a. True

b. False

c. Partly true

d. Partly false

63. Sub-section (2) of Section 16 provides that a person is deemed to be in a position to

dominate the will of another :

a. Where he holds a real or apparent authority over the other or where he stands in a

fiduciary relation to the other.

b. Where he makes a contract with a person whose mental capacity is temporarily or

permanently affected by reason of age, illness or mental or bodily distress

c. Both a and b

d. None

64. The expression ……………….denotes complete seclusion.

a. parda-nishin

b. Conses idem.

c. Magis

d. Waleat

65. The term “misrepresentation” is ordinarily used to connote…………….

a. innocent misrepresentation

b. dishonest misrepresentation

c. both a and b

d. none of the above

66. In misrepresentation the plaintiff can claim damages as well.

a. True

b. False

c. Partly true

d. Partly false

67. Mistake of foreign law and mistake of private rights are treated as mistakes of fact and are

not execusable.

a. True

b. False

c. Partly true

d. Partly false

68. A contract where the proposal acceptance and conditions are made in words either written

or oral is an express contract.

a. Express Contract

b. Tacit Contract

c. Quasi contract




d. All of the above

69. A lunatics agreement is …………….

a. Void

b. Voidable

c. Invalid

d. Valid

70. The basis of a contract is mutual consent.

a. True

b. False

c. Partly true

d. Partly false

71. An………………. is one which makes an exorbitant profit of the others distress by a person who

is in a dominant position.

a. Unconscionable transaction

b. Conscionable transaction

c. Both a and b


72. Mistake must be ………………..

a. mutual

b. bilateral

c. Both a and b

d. Unilateral

73. An agreement is illegal if its consideration is an act of sexual immorality.

a. True

b. False

c. Partly true

d. Partly false

74. …………….of the Indian Contract Act states that every agreement by which any one is

restrained from exercising a lawful profession, trade or business of any kind, is, to that

extent, void.

a. Section 24

b. Section 25

c. Section 26

d. Section 27

75. An agreement not enforceable by law is ………………….

a. Void

b. Void ab initio

c. Voidable

d. illegal

76. Where the contracting parties agree in advance the amount payable in the event of breach,

the sum payable is called………………

a. Liquidated damages




b. Unliquidated damages

c. Special damages

d. Ordinary damages

77. Where there is a presumption of undue influence, the presumption can be rebutted by

showing that:

a. full disclosure of all material facts was made,

b. the consideration was adequate,

c. the weaker party was in receipt of independent legal advice.

d. All of the above

78. The object and consideration is said to be unlawful if –

a. it defeats the provisions of any law

b. it is fraudulent

c. it is injurious to a person or property

d. all of the above

79. Rules regarding Contingent Contracts are contained in section

a. 32-36

b. 25-30

c. 20-25

d. 15-20

80. The law of a foreign country is to be proved in Indian Courts as…………………….

a. ordinary facts.

b. Extra ordinary facts

c. Special facts

d. All of the above


a. Void contract



d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. True

b. False

c. Partly true

d. Partly false







b. Harvey v. Facey




a. Section 7

b. Section 6

c. Section 8

d. Section 9



b. Consim-ed-idem

c. Quid- pro- quo

d. Magis pareat




c. Both a and b

d. None


a. Present

b. Past

c. Future

d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. quasi contract

b. implied contract

c. both a and b

d. none

91. General Principles of Law of Contract deals with:

a. 76 to 129

b. 1 to 75

c. 125 to 238

d. 239 to 266

92. In void agreement an agreement collateral to the void agreement is not necessarily void.

a. True

b. False

c. Partly true




d. Partly false

93. “All illegal agreements are void because an illegal agreement is not enforceable by law but

all void agreements are not illegal,”

a. True

b. False

c. Partly true

d. Partly false

94. Where a contract is good in substance but becomes unenforceable due to some technical

defect and cannot be enforced by law is called………………………….

a. Unenforceable contract

b. Illegal agreement

c. Void contract

d. Voidable contract

95. ………………..is one of the essential element /s of a valid contract.

a. Consideration

b. Offer

c. Invitation to offer

d. All of the above

96. Consideration is identified as……………………..

a. Quid pro quo


c. Magis a waleat

d. All of the above

97. X promises to obtain for Y an employment in the Government service and Y promises to pay

` 1,500 to X. The agreement is……………., as the consideration for it is unlawful.

a. Void

b. Voidable

c. Illegal

d. Valid

98. A who is B’s mukhtr promises to exercise his influence, as such, with B in favour of C and C

promises to pay ` 1,000 to A. The agreement is………….. because it is immoral.

a. Void

b. Voidable

c. Illegal

d. Valid

99. A, for natural love and affection, promises to give his son B ` 10,000. A put his promise to B

into writing and registered it. Is the example given below is contract?

a. This is a contract

b. This is not a contract

c. May be a contract

d. I don’t know




100. A gratuitous promise to subscribe to a charitable cause …………………….

a. Can be enforced

b. Cannot be enforced

c. May be enforced

d. No idea


1 B 21 A 41 D 61 B 81 C

2 B 22 B 42 C 62 A 82 B

3 A 23 B 43 B 63 C 83 A

4 D 24 D 44 A 64 A 84 A

5 B 25 D 45 D 65 C 85 B

6 D 26 A 46 B 66 B 86 A

7 D 27 D 47 D 67 B 87 C

8 B 28 D 48 A 68 A 88 D

9 A 29 A 49 C 69 A 89 B

10 A 30 C 50 D 70 B 90 C

11 A 31 D 51 B 71 A 91 B

12 B 32 A 52 A 72 C 92 A

13 D 33 A 53 A 73 A 93 A

14 A 34 A 54 A 74 D 94 A

15 A 35 A 55 A 75 B 95 A

16 A 36 B 56 A 76 A 96 A

17 D 37 B 57 C 77 D 97 A

18 B 38 B 58 C 78 D 98 A

19 A 39 A 59 D 79 A 99 A

20 A 40 B 60 B 80 A 100 B




TEST PAPER 4

1.The word “entrepreneur” has a ………… origin.

a) Latin

b) French

c) None

d) Above

2. The concept of entrepreneurship was first established in the…………..

a) 1800

b) 1600

c) 1700

d) 1500

3. The entrepreneurship is usually understood with reference to ………….business

a) Group of people

b) Individual

c) Both

d) None

4. …………. consists of common sense joined with knowledge or experience in a related business or

endeavour.

a) UGLY

b) SMARTS

c) ENDEAVOUR

d) None




5. “Choose a job that you like and you will never have to work a day in your life.” Is given by

whom:

a) Maslow

b) Hilaire Belloc

c) Confucius

d) Jane Austen

6. “Your real boss is the one who walks around under your hat.”

a) Napoleon Hill

b) Maslow

c) Hilaire Belloc

d) Jane Austen

7.The amount of risk bearing in case of intrapreneur is Extreme

a) True

b) False

c) Partly true

d) Partly false

8…………….. is one of the driving forces of the modern global economy.

a) Intrapreneurship

b) Entrepreneurship

c) Company

d) All of the above

9……………. Follows the dream.

a) Entrepreneur

b) Manager

c) Intrapreneur

d) All

10. The word intrapreneur is the recently coined corporate counterpart to ……….existing term

entrepreneur.

a) Short

b) Long

c) Moderate

d) All

11. Intrapreneurship is a combination of entrepreneurship and ……………..

a) Management skills

b) Communication skills

c) Organizing skills




d) All of the above

12. An intrapreneur is an individual employed by an organization for remuneration, which is based

on the ……………. success of the unit he is responsible for.

a) Economical

b) Financial

c) Statistical

d) All

13………………… is the “inside entrepreneur”.

a) Intrapreneur

b) Entrepreneur

c) Manager

d) All

14 Not every business needs an Entrepreneur, but every business needs an Intrapreneur.

a) True

b) False

c) Partly true

d) Partly false

15. “A large income is the best recipe for happiness I ever heard of.” Is given by whom:

a) Jane Austen

b) Napoleon Hill

c) Maslow

d) Hilaire Belloc

16. An .................................................. entrepreneur is the most common type of entrepreneur.

a) Juggler

b) Fire ball

c) Idealist

d) Hero

17. ……………….nurtures the business by bringing harmony with a surprising ability to survive with an

inner calm

a) Juggler

b) Healer

c) Fire ball

d) Hero

18…………………….. conventionally means entertainer who keeps several plates, knives, balls, or other

objects in the air at once by tossing and catching them.




a) Juggler

b) Healer

c) Fire ball

d) Hero

19.The amount of risk to manager is ………………..

a) Moderate

b) High

c) Low

d) Conservative

20. “Entrepreneurship is living a few years of your life like most people won’t, so that you can

spend the rest of your life like most people can’t” is given by whom :

a) A Student in Warren G. Tracy’s Class

b) Maslow

c) Hilaire Belloc

d) Fredrick Taylor

21.Which of the following is the characteristics of Entrepreneur:

a) Business secrecy

b) Clear objectives

c) Communication ability

d) All of the above

22. In the …….. century, economist Joseph Schumpeter (1883-1950) focused on how the

entrepreneur’s drive for innovation and improvement creates upheaval and change.

a) 21st

b) 20th

c) 22th

d) 25th

23. Business expert…………………….. took idea further, describing the entrepreneur as someone who

actually searches for change, responds to it, and exploits those changes as an opportunity.

a) Peter Drucker

b) Fredrick Taylor

c) Maslow

d) Janes Austen

24 After the ………… World War, entrepreneurship received new meaning for attaining economic

development within the shortest possible time; as concern for economic development became all-

pervasive.

a) First




b) Second

c) None

d) Both a and b

25. The word entrepreneur is originated during the ………….. Ages when the term entrepreneur

was applied to “the man in charge of the great architectural works: castles and fortifications, public

buildings, abbeys and cathedrals”.

a) First

b) Middle

c) Last

d) All of the above

26. The term strategy is derived from the ………… word ‘Strategos’ which means ‘the art of the

general’.

a) Latin

b) Greek

c) French

d) All

27.Business has only two functions –marketing and innovation is given by :

a) Maslow

b) Peter F.Drucker

c) Jane Austen

d) Terence Lewis

28………………….. is concerned with the overall purpose and scope of the business to meet

stakeholder expectations.

a) Business Unit Strategy

b) Corporate Strategy

c) Operational Strategy

d) All of the above

29………………….. say that ---‘’ the process of planning cavers a wide range of activities , all the way

from initially sensing that something needs doing to firmly deciding who does what when.....It is

more than logic or imagination of judgement . It is a combination of all these that culminates in a

decision – a decision about what should be done. The decision phase of planning is so important

that we shall use the expression ‘decision-making’ as a synonym of planning.”

a) Richard N. Farmer and Barry M. Richman

b) William H. Newman and Charles E. Summer, Jr.

c) Lewis A.Austen and D’Sousa

d) George Bhosh and Company




30………….. observe that “the planning function determines organizational objectives and the

policies, programmes, schedules, procedures, and methods for achieving them. Planning is

essentially decision-making since it involves choosing among alternatives and it also encompasses

innovation. Thus, planning is the process of making decisions on any phase of organized activity.”

a) Richard N. Farmer and Barry M. Richman

b) William H. Newman and Charles E. Summer, Jr.

c) Lewis A.Austen and D'Sousa

d) George Bhosh and Company

31.Planning is the secondary function and it does not need intellectual skills and again it is a one

time process.

a) True

b) False

c) Partly true

d) Partly false

32. The work schedule of the first-line supervisors is same as strategic plan developed by top

managers.

a) True

b) False

c) Partly true

d) Partly false

33. Budget is a ……………… statement

a) Quantitative

b) Financial

c) Both a and b

d) None

34. Budgetary control is defined by the ………..

a) ICSI

b) ICAI

c) CIMA

d) All of the above

35.Which of the following is not the type of Budget:

a) R & D budget

b) Sales Budget

c) Purchase Budget

d) Material Budget

36.ASP stands for…………..




a) Actual Standard Production

b) Application service providers

c) Applicant service providers

d) Anticipated service providers

37……………… is the function of business that gathers data and information from all the different

aspects of the business.

a) Acummulation

b) Accounting

c) Investigation

d) Inspection

38.ROI stands for……….

a) Rate of interest

b) Rate of investment

c) Return on investment

d) All of the above

39. ……………………………………defines Marketiing Mix is the combination of four inputs which constitute

the core of a company’s marketing system

a) William . J Dtanton

b) William J.Stanton

c) Maslow D souza

d) George fernandis

40………………….. defines Marketing Mix as “set of marketing tools that the firm uses to pursue its

marketing objectives in the target market”.

a) Confucius

b) Fredrick Taylor

c) Maslow

d) Kotler

41Accounting is not the language of business.

a) True

b) False

c) Partly true

d) Partly false

42 The ………………. function of accounting is to meet the legal requirement

a) Second

b) Third

c) First




d) fourth

43.In which of the following producer is considered as important.

a) Selling

b) Marketing

c) Administration

d) All of the above

44. ………………….conceived of marketeer as the ‘mixer of ingredients’.

a) Confucius

b) Fredrick Taylor

c) Maslow

d) Culliton

45. Selling has a long -term perspective with profit maximization.

a) True

b) False

c) Partly true

d) Partly false

46. Marketing and Selling are not synonymous.

a) True

b) False

c) Partly true

d) Partly false

47. Selling is a broader concept which involves transfer of goods or services from producers to

consumers.

a) True

b) False

c) Partly true

d) Partly false

48. Marketing is a narrow concept.

a) True

b) False

c) Partly true




d) Partly false

49. “Financial planning refers to estimating the amount of capital and determining its composition.

It is concerned with the preparation of plans for the procurement, investment and administration

of fund.”this statement is given by Gersternberg

a) True

b) False

c) Partly true

d) Partly false

50.Financing decision comprises of fixed capital management and working capital management

a) True

b) False

c) Partly true

d) Partly false

51.Which of the following is comprised in investment decision:

a) Capital structure decision

b) Working capital management

c) Financial planning

d) All

52. Decisions for raising funds from short-term sources come under ……

a) Working capital management.

b) Financial planning management

c) Fixed capital management

d) All of the above

53. Capital structure decisions does not involve identifying sources to raise funds.

a) True

b) False

c) Partly true

d) Partly false

54. “Financial management is the activity concerned with planning, raising, controlling and

administering of funds used in the business.” Is given by :

a) Guthman and Dougal

b) Massie

c) J.F.Brandley

d) None




55. “Financial management is the operational activity of a business that is responsible for obtaining

and effectively utilizing the funds necessary for efficient operations.” Is given by :


b) Massie

c) J.F.Brandley

d) None

56. “Financial management is that area of business management devoted to a judicious use of

capital and a careful selection of source of capital in order to enable a spending unit to move in

the direction of reaching its goals.”


b) Massie

c) J.F.Brandley

d) None

57. “Finance may be defined as that administration area or set of administrative functions in an

organization may have the means of carrying out its objectives as satisfactorily as possible.”

a) B.O. Wheeler

b) Howard and Upton

c) Maslow

d) Drucker

58. “Business finance includes those business activities which are concerned with the acquisition

and conservation of capital funds in meeting the financial needs and overall objectives of business

enterprise.”

a) B.O. Wheeler

b) Howard and Upton

c) Maslow

d) Drucker

59. Money required for carrying out business activities is called …………….

a) Business economy

b) Business finance

c) Business management

d) All

60…………….. included policies relating to transportation, warehousing and inventories.

a) Display

b) Servicing

c) Physical handling

d) Promotion




61…………… methods mean that as work on a task at a particular stage is complete

a) Fixed

b) Flow

c) Crystal

d) All of the above

62.Flow methods are not similar to batch method

a) True

b) False

c) Partly true

d) Partly false

63.POM stands for ……..

a) Price and operation management

b) Production and operations management

c) Profit and operative methods

d) All of the above

64. Corporate strategy is often stated explicitly in a……………

a) Mission statement

b) Vision statement

c) Both a and b

d) None

65 …………. is also called business function

a) Business process

b) Business management

c) Business organization

d) All

66. Strategy is the direction and scope of an organisation over the …………..

a) Long term

b) Short term

c) Middle

d) All

67.Which of the following of features of budgetary control

a) Financial /quantitative

b) Futuristic

c) Goal oriented

d) All of the above




68.Decision planning is the extended form of …………

a) Organising

b) Planning

c) Forecasting

d) All of the above

69.SCM stands for…………

a) Supplier cash management

b) Supply chain management

c) Short curriculum manager

d) All of the above

70.Entrepreneur ship is all about

a) Family

b) Personal satisfaction

c) Love

d) None of the above

71. The Law of Contract is intended to ensure that what a man has been led to input shall come to

pass, that what has been promised to him shall be performed.

a) Sir William Anson

b) Sir George Bhush

c) Sir William Shakespeare

d) Sir David Gibbs


a) mercantile

b) commercial

c) Both a and b

d) None


a. September,1872.

b. October, 1872

c. September, 1873

d. October, 1873


a. True

b. False

c. Partly true

d. Partly false


a. Salmon






d. Sir George Bhush




a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)



a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)


a. Strict consent.





satisfied.

a. True

b. False

c. Partly true

d. Partly false


a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)


a. Void contract



d. All of the above



a. Executory

b. Executed




c. Both a and b

d. None


a. Void contract



d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. True

b. False

c. Partly true

d. Partly false




b. Harvey v. Facey




a. Section 7

b. Section 6

c. Section 8

d. Section 9



b. Consim-ed-idem

c. Quid- pro- quo

d. Magis pareat




c. Both a and b

d. None


a. Present

b. Past

c. Future




d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. quasi contract

b. implied contract

c. both a and b

d. none


a. True

b. False

c. Partly true

d. Partly false








a. True

b. False

c. Partly true

d. Partly false

96. Money paid or property transferred under an illegal agreement can be recovered.

a. True

b. False

c. Partly true

d. Partly false

97. Pari delicto means :

a. equally guilty

b. consideration

c. offer

d. promise

98. A pays ` 500 in consideration of B’s promising to marry, C, A’s daughter C is dead at the

time of the promise. The agreement is discovered to be ……………..

a. Void

b. Voidable

c. Illegal




d. Valid

99. ………………………….. is/ are popular instances of contingent contracts.

a. Contract of insurance

b. contracts of indemnity

c. contract of guarantee

d. all of the above


a. mercantile

b. commercial

c. Both a and b

d. None


1 B 21 D 41 B 61 B 81 A

2 C 22 B 42 B 62 B 82 A

3 B 23 A 43 A 63 B 83 C

4 B 24 B 44 B 64 A 84 B

5 C 25 B 45 B 65 A 85 A

6 A 26 B 46 A 66 A 86 A

7 B 27 B 47 B 67 B 87 B

8 B 28 B 48 B 68 B 88 A

9 A 29 B 49 B 69 B 89 C

10 B 30 A 50 B 70 D 90 D

11 A 31 B 51 B 71 A 91 B

12 B 32 B 52 A 72 C 92 C

13 A 33 C 53 B 73 A 93 B

14 A 34 C 54 A 74 B 94 A

15 A 35 C 55 B 75 B 95 B

16 C 36 B 56 C 76 A 96 B

17 B 37 B 57 B 77 C 97 A

18 A 38 C 58 A 78 C 98 A

19 D 39 B 59 B 79 B 99 D

20 A 40 D 60 C 80 D 100 C

TEST PAPER 5:




1. Human resource management is not concerned with management of human talent or skills

for the overall objectives of the organisation.

a. True

b. False

c. Partly true

d. Partly false

2. This is the process that involves training as well as education.

a. Development

b. Education

c. Both a and b

d. None

3. It is also known as problems solving approach.

a. Management by objectives

b. Management by fulfillment

c. Management by elasticity

d. All of the above

4. The full form of MBO is………………

a. Management by objective

b. Management by obesity

c. Management by obtensity

d. All of the above





d. All of the above





d. All of the above





money in HRM.

d. All of the above


a. Short

b. Narrow

c. Broad

d. All of the above






a. Salmond

b. Hick and malsow


d. Byars and Rue






a. Jucius Michael


c. Edwin B. Flippo

d. Salmond


a. Blue collar

b. White collar

c. Green collar

d. All of the above


a. True

b. False

c. Partly true

d. Partly false



relationships among the participants and attainment of maximum individual development of

the members in the organization.” Is given by:

a. Edwin B. Flippo

b. Salmond

c. Hicks

d. Dirks


a. True

b. False

c. Partly true

d. Partly false

15. …………… is the process of searching for prospective employees and encouraging them to apply

for the jobs in an organization.

a. Selection

b. Recruitment




c. Appointment

d. All of the above

16. Under which of the following the appraiser is required to write down his impression about the

person being appraised in an unstructured way.

a. Structured appraisal

b. Unstructured appraisal

c. Forced distribution method

d. Ranking method

17. Personnel management is a pervasive function of management.

a. True

b. False

c. Partly true

d. Partly false

18. “Recruitment is the development and maintenance of adequate manpower resources. It

involves the creation of a pool of available labour upon whom the organization can draw

when it needs additional employees.” Was given by

a. Edwin B. Flippo

b. Salmond

c. Hicks

d. Dale S. Beach

19. Which function is concerned with the determination of adequate and equitable remuneration

of the employees in the organization for their contribution to the organizational goals.

a. Compensation

b. Development

c. Employment

d. All of the above

20. The employment process is completed when appointment letters are issued to the candidates

clearing all the stages in the selection procedure.

a. True

b. False

c. Partly true

d. Partly false

21. In the process of selection what is the next step after physical examination :

a. Checking references

b. Final selection

c. Employment test

d. Employment interview

22. The basic purpose of ……………… appraisal is to facilitate orderly determination of an employee’s

worth to the organization of which he is a part.

a. Training

b. Performance

c. Both a and b




d. none

23. The ………………… are those tasks or duties which are specifically entrusted to the personnel

department under the general supervision of personnel manager.

a. Operative function

b. Managerial function

c. Both a and b

d. None

24. Recruitment is a negative function.

a. True

b. False

c. Partly true

d. Partly false

25. The following is (are) the key components of a business process Re-engineering programme?

a. Product development

b. Service delivery

c. Customer satisfaction

d. All of the above

26. The actual achievements compared with the objectives of the job is

a. Job performance

b. Job evaluation

c. Job description


27. The following is (are) concerned with developing a pool of candidates in line with the human

resources plan

a. Development

b. Training

c. Recruitment

d. All of the above

28. In an organisation initiating career planning, the career path model would essentially form the

basis for

a. Placement

b. Transfer

c. Rotation

d. All of the above

29. 7-Performance development plan is set for the employee by his immediate boss.

a. Employer

b. Department Head

c. Immediate boss

d. Any of the above

30. The following type of recruitment process is said to be a costly affair.




a. Internal recruitment

b. External recruitment

c. Cost remains same for both types

d. All of the above

31. The following is (are) the objective(s) of inspection.

a. Quality product

b. Defect free products

c. Customer satisfaction

d. All of the above

32. Large recruitment ____ problematic and vice-versa

a. Less

b. More

c. Any of the above

33. The ________ programme once installed must be continued on a permanent basis.

a. Job evaluation

b. Training & Development

c. Recruitment

d. All of the above

34. The following person has suggested the new concept which takes into account various key

factors that will tell the overall performance of a job.

a. Elliot Jecques

b. Fred Luthas

c. Juran


35. The three important components in aligning business strategy with HR practice:

a. Business Strategy, Human Resource Practices, Organisational Capabilities

b. Marketing Strategy, Human Resource Practices, Organisational Capabilities

c. Business Strategy, Human Resource Practices, Organisational structure

d. Marketing Strategy, Human Resource Practices, Organisational structure

36. The basic managerial skill(s) is(are)

a. To supervise

b. To stimulate

c. To motivate

d. All of the above

37. Procedure of analyzing threats and opportunities of organization's environment is classified as

a. environmental influences.

b. environmental economics.

c. environmental planning.

d. environmental scanning.




38. __________ is the process of forecasting an organisations future demand for, and supply of,

the right type of people in the right number.

a. Human Resource Planning

b. Recruitments

c. Human Resource Management

d. Human Capital Management

39. Which of the following factors state the importance of the Human Resource Planning?

a. Creating highly talented personnel

b. International strategies

c. Resistance to change and move

d. All of the above

40. A process that is used for identifying and developing internal people with the potential to fill

key business leadership positions in the company is called ______.

a. Highly talented personnel creation

b. Investing in human resources

c. Succession planning


41. Human Resource Planning facilitates international expansion strategies.

a. True

b. False

c. partly true

d. partly false

42. Which of the following option is not the factor that hinders with the human resource planning

process?

a. Type and quality of forecasting information

b. Time horizons

c. Environmental uncertainties

d. Unite the perspectives of line and staff managers

43. What is the major issue faced while doing personal planning?

a. Type of information which should be used in making forecasts

b. Types of people to be hired

c. Multiple positions to be filled




d. All of the above

44.Rearrange the following steps involved in the Human resource planning process in proper

order.

A. HR Programming

B. HR Demand Forecast

C. Environmental Scanning

D. Control and evaluation of programme

E. Surplus - restricted hiring

F. HRP implementation

G. HR supply forecast

H. Organisational objectives and Policies

I. Shortage - Recruitments and Selection

a. ABCDEFGHI

b. CHBGAFDEI

c. IHDEBCAFG

d. IHGFEDCBA

45. _______ is the process of estimating the quantity and quality of people required to meet future

needs of the organisation.

a. Demand forecasting

b. Supply forecasting

c. Environmental forecasting


46. The word ‘personnel’ refers to ‘the human resource’ of an organization, ………………………

a. Employer

b. Employee

c. Both a and b

d. None

47. Which one of the following becomes a creative factor in production?

a Land

b Capital

c Consumers




d Human Resources

48. Demand for human resources and management is created by

a Expansion of industry

b Shortage of labor

c Abundance of capital

d Consumer preferences

49. Human Resource Management aims to maximize employees as well as organizational

a Effectiveness

b Economy

c Efficiency

d Performativity

50.Identify which one is an added specific goal of human resource management.

a. Retraining

b Learning

c Unlearning

d Separating

51. A, having advanced money to his son B, during his minority, upon B’s coming of age

obtains, by misuse of parental influence a bond upon B for a greater amount than the sum

due in respect of the advance.

a. A employs undue influence.

b. B employs undue influence.

52. A, a man enfeebled by disease or age is induced by B’s influence over him as his medical

attendant, to agree to pay B an unreasonable sum for his professional services.

a. A employs undue influence.

b. B employs undue influence.

53. Where there is a presumption of undue influence, the presumption can be rebutted by

showing that:

a. full disclosure of all material facts was made,

b. the consideration was adequate,

c. the weaker party was in receipt of independent legal advice

d. all of the above

54. X, Y and Z enter into an agreement for the division among them of gains acquired by them

by fraud. The agreement is…………….. as its object is unlawful.

a. Void

b. Voidable

c. Illegal

d. Valid


a. September,1872.

b. October, 1872

c. September, 1873

d. October, 1873




56. “Every agreement and promise enforceable at law is a contract.”

a. Salmon

b. Sir Fredrick Pollock

c. Maslow

d. Henry Fayol

57. …………..of the Act defines the term contract as “an agreement enforceable by law is a


the parties legally, thus,

Contract = Agreement + Enforceability

a. Section 2(h)

b. Section 2(k)

c. Section 2(j)

d. Section 2(n)

58. An accepted offer is a promise.

a. True

b. False

c. Partly true

d. Partly false

59. The terms of the offer must be indefinite.

a. True

b. False

c. Partly true

d. Partly false

60. According to Section…….., every person is competent to contract if he or she,

- is of the age of majority

-is of sound mind

- is not disqualified from contracting by any law to which he/she is subject

a. 12

b.11

c.15

d.16

61. An agreement gives birth to a contract.

a. True

b. False

c. Partly true

d. Partly false

62. A is under an obligation to deliver the car to B.

a. B has a not corresponding right to receive the car.

b. B has a corresponding right to receive the car.

63. B is under an obligation to pay ` 10,000 to A.

a. A has a correlative right to receive ` 10,000




b. A has not a correlative right to receive 10000

64. An Offer must be Distinguished from

a. "Every agreement and promise enforceable at law is a contract."

b. "Every agreement and promise enforceable at law is a contract."

c. A mere communication of information in course of negotiation

d. All of the above


a. Agreement (consensus ad idem) an unqualified acceptance of a definite offer;


c. Consideration.

d. All of the above

66. Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust.

a. Zig Ziglar

b. Salmon

c. Maslow

d. Henry fayol

67. An agreement to sell is an

a. executory contract

b. executed contract

c. implied contract

d. expressed contract

68. In case of breach of condition :

a. The buyer may waive the condition

b. The buyer may treat the condition as warranty

c. All of the above


69. No sale can take place without a price. The price may be fixed:

a. at the time of contract by the parties themselves

b. may be left to be determined by the course of dealings between the parties

c. may be left to be fixed in some way stipulated in the contract

d. All of the above

70. A dentist agrees to supply a set of teeth to his patient with his own material for a sum of Rs

500.

a. This is contract of sale

b. This is a contract for work and material

c. This is an agreement to sale

d. This is not a contract of sale

71. An unpaid seller is a person who has not been paid:

a. Full price

b. Part of the price

c. Two-third of the price

d. All of the above




72. An auction sale means………….

a. Invitation to make an offer

b. Communication regarding goods in course of negotiation

c. A statement of information

d. An offer

73. Any bidder may retract his bid :

a. Before announcement is made of completion of the auction.

b. Any time the bidder informs the auctioneer

c. When the buyer agrees

d. All of the above

74. Right of lein means

a. To deliever the goods

b. To retain the possession

c. To regain the possession

d. Any of the above

75. Right of an unpaid seller include ……………

a. Right to the goods

b. Right of stoppage in transit

c. Right of re-sale

d. All of the above

76. It shall not be lawful for the seller to bid himself at an auction :

a. Where the sellers right to bid is not notified.

b. Where the auctioneer does not allow the seller to bid

c. Where the buyer’s right to bid is not notified.

d. Where the buyer does not allow the seller to bid.

77. ‘Nemo dat quod non habeat’




d. Is in Japanese language

78. The price in contract of sale may be fixed by the :

a. Seller

b. Buyer

c. Third party

d. Any of the above

79. The term ‘goods’ is defined in the Sale of Goods Act , 1930 under section :

a. 2(5)

b. 2(7)

c. 2(9)

d. 2(11)

80. The goods which form the subject of a contract of sale may be:

a. Any existing goods




b. Any existing goods, owned or possessed by the seller

c. Future goods

d. Existing goods owned or possessed by the seller or future goods

81. Goods may be:

a. Existing goods

b. Future goods

c. Unascertained goods

d. Any of the above

82. In a contract of sale there are at least:

a. 1

b. 2

c. 3

d. 4

83. A contract of sale may be

a. Executed

b. Executory

c. Both a and b

d. None

84. A contract to sale contingent goods is:

a. Sale

b. Agreement to sale

c. Contingent sale

d. Contingent agreement

85. Which law govern the sale of property of movable property in India?

a. Transfer of Property Act, 1872

b. Indian Contract Act, 1872

c. Sale of Goods Act, 1930

d. CPC,1908



a. Urwick and Brech

b. Mc Frebdi

c. Mec donalds

d. Maslow



purpose.

a. McFarland

b. Mc Frebdi

c. Mec donalds

d. Maslow




88. ……………… opines that it “has to do with the forces that maintain and alter the direction,

quality and intensity of behaviour”.

a. M.R. Jones

b. Joe Kelly

c. N.R Jones

d. Roe Kelly

89. ………………. defined supervision as “Supervision is guiding and directing efforts of employees

and other resources to accomplish stated work outputs.”

a. George R. Terry


c. Both a and b

d. None

90. “Unity of command cannot exist without unity of direction, but does not flow from it”

a. Fayol

b. Maslow

c. Taylor

d. All


a. 1938

b. 1939

c. 1940

d. 1941


a. McGregor

b. Taylor

c. Macdonalds

d. Tiger Shroff

93. In which of the following leadership the leader depends largely upon the group and its








a. Robert Blake

b. Jane Mouton

c. Both a and b

d. None

95. Internal co-ordination is the establishment of a relationship between the employees of the

organization and the outsiders of the enterprise.

a. True




b. False

c. Partly true

d. Partly false



b. Specialization


d. All of the above

97. Limitation of co-ordination is / are :

a. Lack of Administrative Talent

b. Lack of Management talent

c. Lack of Illustrative talent

d. All of the above



a. True

b. False

c. Partly true

d. Partly false




a. Tead

b. Fead

c. Cread

d. Maslow

100. Human resource management is not concerned with management of human talent

or skills for the overall objectives of the organisation.

a. True

b. False

c. Partly true

d. Partly false


1 B 21 A 41 A 61 A 81 D

2 A 22 B 42 D 62 B 82 B

3 A 23 A 43 A 63 A 83 C

4 A 24 B 44 B 64 D 84 B

5 A 25 D 45 A 65 D 85 C

6 D 26 A 46 B 66 A 86 A

7 D 27 C 47 D 67 A 87 A

8 C 28 D 48 A 68 C 88 B

9 D 29 C 49 A 69 D 89 C




10 B 30 B 50 A 70 A 90 A

11 A 31 D 51 A 71 A 91 B

12 B 32 A 52 B 72 B 92 A

13 D 33 A 53 D 73 A 93 D

14 B 34 A 54 A 74 D 94 C

15 B 35 A 55 A 75 D 95 B

16 B 36 D 56 B 76 A 96 D

17 A 37 D 57 A 77 B 97 A

18 D 38 A 58 A 78 D 98 A

19 A 39 D 59 B 79 A 99 A

20 B 40 C 60 B 80 D 100 B

TEST PAPER 6

1. “Organization structure is the pattern of relationships among the component parts of the

organization.” Is given by :

a. Rourse and merry

b. Cast and zweigrosen

c. Kast and Rosenzweig

d. All of the above






3. In ………………………. A supervisor exercises direct supervision over a subordinate.

a. Matrix

b. Functional

c. Line and staff

d. Line

State whether the following statement is true or false:

4. Line organisation is flexible and changeable

a. True

b. False

c. Partly true

d. Partly false


a. True

b. False




c. Partly true

d. Partly false

6. In case of matrix organisation, the manufacturing department constitutes the horizontal

chains of command.

a. True

b. False

c. Partly true

d. Partly false



a. True

b. False

c. Partly true

d. Partly false

8. In decentralization, management exercises maximum control.

a. True

b. False

c. Partly true

d. Partly false

9. Barriers to Delegation are :

a. Fear of loss of power.

b. Certain personal attitudes.


d. All of the above

10. Delegation is ………………….

a. Individualistic

b. Totalistic

c. Both a and b

d. None

11. According to …………………,” Delegation is the process a manager follows in dividing the work

assigned to him so that he performs that part which only he, because of his unique

organisational placement, can perform effectively and so that he can get others to help him

with what remains”

a. Allen solly

b. M. A Allen

c. L.A Solly

d. L.A. Allen

12. Larger part of authority is delegated above the level of authority.

a. True

b. False

c. Partly true

d. Partly false




13. ……………….. refers to the tendency to withhold a larger part of formal authority at higher

echelons of management hierarchy.

a. Centralisation

b. Decentralisation

c. Organisation

d. Delegation

14. Informal organisation refers to the relationship between people based on personal and on

procedure attitudes.

a. True

b. False

c. Partly true

d. Partly false

15. Responsibility is described as an obligation to perform a task.

a. True

b. False

c. Partly true

d. Partly false

16. Delegation is a step towards formation of semi-autonomous units.

a. True

b. False

c. Partly true

d. Partly false

17. State whether the following process of organisation is true or false:

i. Determination of objectives

ii. Identification and grouping of activities

iii. Developing Relationship

iv. Allotment of duties

v. Integration of activities

a. True

b. False

c. Partly true

d. Partly false

18. Organising is the main process of management .

a. True

b. False

c. Partly true

d. Partly false

19. Decentralisation and delegation is one and the same thing.

a. True

b. False




c. Partly true

d. Partly false

20. Which of the following is not the advantage of decentralisation?

a. Decentralisation makes for quick decision.

b. Improved morale of personnel.

c. Helps to eliminate overlapping or duplicate activities.

d. Provides for actual work experience.

21. Decentralisation includes superior and subordinate

a. True

b. False

c. Partly true

d. Partly false

22. Degree of delegation does not depends upon manager’s degree of management

capabilities.

a. True

b. False

c. Partly true

d. Partly false

23. …………………………….. is a basic administrative technique essential for management of business

enterprises.

a. Delegation

b. Decentralisation

c. Centralisation

d. All

24. Specific written delegations helps ……………….

a. The manager

b. Recipient

c. Both a and b

d. None

25. In delegation, responsibility remains with the ………………..

a. Delegator

b. Manager

c. Promoter

d. All of the above

26. Authority once delegated can be recovered by …………….

a. Delegator

b. Manager

c. Promoter

d. All of the above

27. …………………… cannot do without delegation.

a. Partnership

b. Company




c. Limited liability

d. All of the above

28. In delegation, head of each department is responsible for all activities.

a. True

b. False

c. Partly true

d. Partly false

29. ……………………….. of delegation also implies defining in terms of the horizontal and vertical

relationships of the position of each sub-ordinate to the other positions in the organisation.

a. Principle of clearance

b. Principle of clarity

c. Principle of consistence

d. Principle of perseverance

30. State whether the following process of delegation is true or false:

i. Allocation of duties

ii. Assignment of Responsibility

iii. Delegation of authority

iv. Creation of accountability

a. True

b. False

c. Partly true

d. Partly false

31. According to ……………………. “Each evolutionary periods is characterised by the dominant

management style used to achieve growth, while each revolutionary period is characterised

by the dominant management problem that must be solved before growth will continue”

a. Larry H. Granor

b. Larry E. Greiner

c. Harry potter

d. Hrithik Roshan

32. Which of the following are the factors determining the degree of Decentralisation.

a. Size of the Enterprise

b. Management attitude and Philosophy

c. Control technique

d. All of the above

33. …………………….. viewed informal organisation as the network of personal and social

relationships which is not established or required by formal organisation.

a. Bernard

b. Keith Davis

c. Larry H. Garnor

d. Maslow

34. ………………………… viewed informal organisation as joint personal activity without being

conscious of the joint purpose, even though possibly contributing to joint results.




a. Barnard

b. Keith Davis

c. Larry H. Garnor

d. Maslow

35. Whatever is good for employees is also good for organisation.

a. True

b. False

c. Partly true

d. Partly false

36. Which of the following is not the feature of Informal organisation?

a. It develops spontaneously

b. It is always destructive

c. It cannot altogether be abolished

d. All of the above

37. Which of the following are the problems associated with informal organisation.

a. Resistance to change

b. Role conflict

c. Rumour

d. All of the above

38. Informal organisation cannot altogether be abolished.

a. True

b. False

c. Partly true

d. Partly false

39. Which of the following are the benefits of informal organisation.

a. Helps get work done

b. Lightens the work load

c. Tends to encourage cooperation

d. All of the above

40. Which of the following is the importance of reorganisation.

a. Stimulates Creativity

b. Encourages synergy

c. Permits optimum use of resource

d. All of the above

41. Line organisation can be successfully utilised where the scale of business is small.

a. True

b. False

c. Partly true

d. Partly false

42. Benefits of Line organisation are :

a. It is stable

b. It is economic and effective




c. It fixes responsibility

d. All of the above

43. ……………… defined authority as “ the right to give orders and exact obedience.”

a. Fayol

b. Maslow

c. Kate

d. Kick

44. Structure of organisation is characterised by ……………………..

a. Financial authority relationship

b. Activity authority relationship

c. Health authority relationship

d. All of the above

45. The drawbacks of line and staff organisation are :

a. The line and staff relationships often lead to numerous friction and jealousies

b. Line manager may depend too much on staff experts and thus lose much of their

judgement and initiative

c. On the contrary, the staff experts remain ineffective because they do not get the

authority to implement their recommendation.

d. All of the above

46. The process of delegation is not at all complete with just assigning the duty and delegating

appropriate authority for the accomplishment of the task.

a. True

b. False

c. Partly true

d. Partly false

47. Delegation is optional because it depends upon the philosophy of management.

a. True

b. False

c. Partly true

d. Partly false

48. Meaning of Echelons is:

a. Outward

b. Achievement

c. Lasting for an indefinitely

d. All of the above

49. Whenever responsibility is delegated authority steps in .

a. True

b. False

c. Partly true

d. Partly false

50. Organisation structure should be static.

a. True




b. False

c. Partly true

d. Partly false

51. This is the process that involves training as well as education.

a. Development

b. Education

c. Both a and b

d. None

52. It is also known as problems solving approach.

a. Management by objectives

b. Management by fulfilment

c. Management by elasticity

d. All of the above

53. The full form of MBO is………………

a. Management by objective

b. Management by obesity

c. Management by obtensity

d. All of the above





d. All of the above





d. All of the above





money in HRM.

d. All of the above


a. Short

b. Narrow

c. Broad

d. All of the above



a. Salmond




b. Hick and malsow


d. Byars and Rue






a. Jucius Michael


c. Edwin B. Flippo

d. Salmond


a. Blue collar

b. White collar

c. Green collar

d. All of the above


a. True

b. False

c. Partly true

d. Partly false



relationships among the participants and attainment of maximum individual development

of the members in the organization.” Is given by:

a. Edwin B. Flippo

b. Salmond

c. Hicks

d. Dirks


a. True

b. False

c. Partly true

d. Partly false

64. …………… is the process of searching for prospective employees and encouraging them to

apply for the jobs in an organization.

a. Selection

b. Recruitment

c. Appointment

d. All of the above






a. Coordination

b. Direction

c. Leadership

d. All of the above

66. The following are the objectives of privatisation are :

a. To improve the performance of PSUs so as to lessen the financial burden on

taxpayers

b. To increase the size and dynamism of the private sector, distributing ownership more

widely in the

population at large

c. To encourage and to facilitate private sector investments, from both domestic and

foreign sources

d. All of the above

67. ………………………form of business organisation is suitable:

– Where the market for the product is small and local. For example, selling grocery items,

books, stationery,

vegetables, etc.

– Where customers are given personal attention, according to their personal tastes and

preferences. For

example, making special type of furniture, designing garments, etc.

– Where the nature of business is simple. For example, grocery, garments business,

telephone booth, etc.


b. HUF

c. Company

d. Partnership

68. A company is managed by ...........................

a. Directors

b. Promoters

c. Shareholders

d. All of the above

69. The company doesnot have perpetual succession.

a. True

b. False

c. Partly true

d. Partly false

70. Membership of a co-operative is ............................

a. Open

b. Close

71. The minimum membership to get a co-operative registered is ......................




a. 9

b. 10

c. 3

d. 5

72. PROCESS TO START LLP

-Acquire DPIN; Acquire DSC

-Register DPIN, DSC with LLP

-Check Name Availability

-Download LLP Forms

-File Electronically

-Receive Certificate After

-LLP ready to Function

- Track Status

a. True

b.False

c.partly true

d.Partly false

73. The good business leaders create a vision, articulate the vision, passionately own the vision,

and relentlessly drive it to completion.

a. Jack Welch quotes

b. John Welch Quotes

c. Harry potter quotes

d. Barbie fayol quotes

74. Micro and Small Entrerprises are same.

a. True

b.False

c.partly true

d.Partly false

75. The classification of enterprises based on scale of business :

a. Micro Enterprises

b. Small Scale Enterprises

c. Large Scale Enterprises

d. All of the above

76. No matter what your product is, you are ultimately in the education business. Your

customers need to be

constantly educated about the many advantages of doing business with you, trained to use

your products

more effectively, and taught how to make never-ending improvement in their lives is said

by:

a. Robert G Allen




b. Alen Solly

c. Robin Sharma

d. Austen Janes

77. Network Marketing is a mode of …………………marketing by the manufacturer.

a. Direct

b. Indirect

c. Both a and b

d. None

78. The word 'franchise' is of ……………..derivation from the word franc which means ‘free’.

a. Anglo-French

b. Indo –French

c. Latin

d. Greek

79. Advantages of Network marketing are :

a. Distribution network grows continuously

b. distribution channel is at zero level

c. lower overhead costs

d. all of the above

80. Limitation of M-commerce are

a. The existing technology is not best suited for mobile data transfer. The connections

are unstable, the data transfer rate is limited, transfer duration is too long and the

costs involved are high.

b. Acceptance of m-commerce is slow.

c. Lack of infrastructure, competing standards, poor input and display capabilities in

cell phones, and human fear to learn new things are other constraints in the use of

m-commerce.

d. All of the above

81. “Management is efficiency in climbing the ladder of success; leadership determines

whether the ladder is leaning against the right wall” is given by:

a. Stepni W. Covey

b. Stepni R. Covey

c. Stephen W. Covey

d. Stephen R. Covey

82. The economic environment around us consist of three basic entities:

a. Household

b. Firms

c. Government

d. All

83. The word ‘management’ has its origin in the …………………. Word ‘nomos’ which means

‘management’ .

a. Latin.




b. Greek

c. Indian

d. All of the above

State who has given the following statements:

84. “The process of getting things done by the people and through the people”

a. Hick.


c. Henry Fayol

d. Haimann

85. “Getting things done through and with the people”


b. Henry Fayol

c. Haimann

d. Hick

86. “ To manage is to forecast, and to plan, to organise, to command, and to co-ordinate”

a. Henry Fayol

b. Haimann

c. Hick

d. None

87. Which of the following is the objective of management :

a. Achieve maximum output with minimum Efforts

b. Optimum Use of resources

c. Maximum prosperity

d. All of the above

88. Which of the following is not the importance of management?

a. Establishes margin of safety

b. Establish equilibrium

c. Prosperity of society

d. Establishes sound organisation

89. Success on the part of the executive essentially calls for a capability to promote self -

appraisal.

a. True

b. False

c. Partly true

d. Partly false

90. Management is an exact science.

a. True

b. False

c. Partly true

d. Partly false

91. Science includes physical science but not social science




a. True

b. False

c. Partly true

d. Partly false

92. Which of the following is the feature of Management of science

a. Management is an interdisciplinary science

b. Management is an indefinite science.

c. Management is an inexact science

d. Management is an exact science

93. The process of management involves the use of :

a. Know how

b. Skill

c. Both a and b

d. None

94. …………………. Is the core of management.

a. Planning

b. Decision making

c. Forecasting

d. All of the above

95. Which of the following word did Luther Gullick coin using the initial letters of management

functions:

a. POSBRD

b. POSDCORB

c. CAMELS

d. NONE

96. Success on the part of the executives essentially calls for a capability to promote self

appraisal.

a. True

b. False

c. Partly true

d. Partly false

97. ………………………… is the father of scientific management.

a. Fredrick Taylor

b. Henry Fayol

c. Maslow

d. Mahatma Gandhi

98. ………………………… is known as Founder of modern management theory.

a. Henry Fayol

b. Maslow

c. Mahatma Gandhi

d. Fredrick Taylor

99. According to Katz management skills are classified into …………………




a. Technical

b. Human

c. Conceptual

d. All of the above

100. Human relation skills are also known as ……………………

a. Inter personal skill

b. Intra personal skill

c. International skill

d. Passive skill


1 C 21 B 41 A 61 B 81 D

2 D 22 B 42 D 62 D 82 D

3 D 23 A 43 A 63 B 83 B

4 B 24 C 44 B 64 B 84 A

5 B 25 A 45 D 65 A 85 A

6 B 26 A 46 A 66 D 86 A

7 B 27 B 47 B 67 A 87 D

8 B 28 B 48 B 68 A 88 A

9 D 29 B 49 B 69 B 89 B

10 A 30 B 50 B 70 A 90 B

11 D 31 B 51 A 71 B 91 C

12 B 32 D 52 A 72 B 92 C

13 A 33 B 53 A 73 A 93 C

14 B 34 A 54 A 74 B 94 B

15 A 35 B 55 D 75 D 95 B

16 B 36 B 56 D 76 A 96 B

17 B 37 D 57 C 77 A 97 A

18 B 38 A 58 D 78 A 98 A

19 B 39 D 59 B 79 D 99 D

20 C 40 D 60 A 80 D 100 A




TEST PAPER 7

1. Druckers assigns …………………. Jobs to the management.

a. 2

b. 3

c. 4

d. 5

2. The scientific management movement early in the twentieth century was hailed as a

………………….

a. First industrial revolution

b. Second industrial revolution

c. Third industrial revolution

d. Fourth industrial revolution

3. The contribution of behavioral scientists to management principles and practices has been

recognized all over the world after the Hawthrone were conducted by ……………………

a. Elton Mayo

b. Calton Mayo

c. Carton Mayo

d. Earnest Mayo

4. Fayol suggested the following ……………….. principles of management.




a. 15

b. 16

c. 14

d. 12

5. …………………………. Coined the word “ POSDCORB”

a. Luther Gullick

b. Henry Fayol

c. Newmann Summer

d. Maslow

6. Which principle emphasizes the need for teamwork and the importance of effective

communication in obtaining it.

a. Espirit de corps

b. Espirit de initia

c. Espirit de suspects

d. All of the above

7. Administration is concerned with ………………..

a. Policy framing

b. Policy making

c. Policy politing

d. All

8. Qualified managers may be called as ………………….managers

a. Firm manager

b. Company manager

c. Professional manager

d. All of the above

9. Administration is a …………….. level function

a. Top

b. Medium

c. Bottom

d. All of the above

10. Management is a …………….. level function.

a. Top

b. Medium

c. lower

d. All of the above

11. Social Science is also known as ……………..

a. Variable science

b. Physical science

c. Exact science

d. All of the above

12. ………………………is the process of laying down broad policies and objectives of the

organization.




a. Administration

b. Management

c. Operation

d. Framing

13. …………………………..directs and guides the operations of an organization towards realizing the

objectives set forth by the former.

a. Administration

b. Management

c. Operation

d. Framing

14. …………………………. Is the ability to influence human behavior.

a. Administrative skills

b. Leadership skills

c. Problem- solving skills

d. Communication skills

15. Consider is the meaning of ……………………

a. Overarching

b. Reckoned

c. Magnitude

d. Divergent

16. A manager has to perform the task of a …………………

a. Change agent

b. Building agent

c. Broker

d. All of the above

17. ………………… is a process by which responsible people in an organization get things done

through the efforts of other people in group activities.

a. Management

b. Administration

c. Leadership

d. Technology

18. Co-ordination is not all pervasive.

a. True

b. False

c. Partly true

d. Partly false

19. “A leader can be a manager, but a manager is not necessarily a leader” says

a. Allen Solly

b. Allen Bonny

c. Gemmy Allen

d. Jaquline d’souza

20. Henry Fayol is the …………………. Industrialist




a. French

b. German

c. Indian

d. Russian

21. Does co-operation helps to achieve co-ordination?

a. Yes

b. No

c. Partly yes

d. Partly no

22. ……………………… refers to thinking out and executing a plan.

a. Stability

b. Initiative

c. Remuneration

d. Subordination

23. ……………………… have made significant contributions to the behavioural school of thought.

a. Psychologists

b. Sociologists

c. Both a and b

d. none

24. Function of administration is ………………..

a. Legislative

b. Executive

c. Both a and b

d. None

25. Function of management is ……………

a. Legislative

b. Executive

c. Both a and b

d. None

26. ………………….. is the ability to visualize the organization as a whole.

a. Conceptual skills

b. Human relation skills

c. Technical skills

d. All of the above

27. Decision making skills are not at all required at all levels of management.

a. True

b. False

c. Partly true

d. Partly false

28. Henry Fayol started his career has ………………

a. Electricity engineer

b. Computer engineer




c. Coal mine engineer

d. All

29. Fayol did not distinguish between the principles and the elements of management.

a. True

b. False

c. Partly true

d. Partly false

30. What is the meaning of the word: Hamstrung

a. Even if

b. To destroy

c. Consider

d. Encompassing

31. Planning means deciding in the present what to so in the future. It is the process whereby

companies reconcile their resources with their objectives and opportuniites.

a. Philip Cotler

b. Philip Kotler

c. Ammey bhush

d. George Bhush

32. Planning is not pervasive function of management.

a. True

b. False

c. Partly true

d. Partly false

33. Features of Planning include:

a. Intellectual process

b. Primary function

c. Continuous function

d. All

34. Which of the following is not the type of plan.

a. Operational plan

b. Statistic plan

c. Strategic plan

d. Project plan

35. Which qualities should a person possess to succeed in planning :

a. Reflective thinking

b. Imagination

c. Farsightedness

d. All of the above

36. Only economists and statisticians employed by the management as staff experts are

involved in making forecasts.

a. True

b. False




c. Partly true

d. Partly false

37. Plan can be made only for intermediate run.

a. True

b. False

c. Partly true

d. Partly false

38. Principle of Decision Making include:

a. Principle of Definition

b. Principle of Evidence

c. Principle of Identity

d. All of the above

39. Predictions and assumptions about the future are known as ……………….

a. Planning Premises

b. Planning area.

c. Planning precincts

d. All of the above

40. All decisions taken at all times are generally of equal importance.

a. True

b. False

c. Partly true

d. Partly false

41. Decision making by groups is not a rare thing observed in business operation.

a. True

b. False

c. Partly true

d. Partly false

42. Forecasting is defined as an analysis and interpretation of the …………………. Conditions in

relation to operations of the enterprise.

a. Past

b. Future

c. Medium

d. All

43. The following process of decision making is true or false.

i. Identifying and diagnosing the Real problem.

ii. Analysis and Evaluation of Available Alternatives.

iii. Discovery of Alternatives.

iv. Communication of decision and its acceptance by the organisation

v. Selection of alternative to be followed

a. True

b. False

c. Partly true




d. Partly false

44. Decision making by groups take place in …………

a. Board meeting

b. Committees

c. Staff members

d. All of the above

45. The following process of forecasting is true or false.

i. Identifying and Developing the Structure

ii. Forecasting Future Course of Business

iii. Analysis of Deviations

iv. Improving the Existing Forecasting Procedure

a. True

b. False

c. Partly true

d. Partly false

46. …………… referred to planning as synthesis of various forecasts.

a. Maslow

b. Faylow

c. Fayol

d. All

47. Which of the following conditions are to be fulfilled for decision making :

a. Certainity

b. Risk

c. Uncertainity

d. All of the above

48. Decision making does not permeates planning, organising and any other function of

management.

a. True

b. False

c. Partly true

d. Partly false

49. Policies are …………………… to thinking in decision making

a. Guide

b. Route

c. Both


50. Procedures involve a single operation or one particular step.

a. True

b. False

c. Partly true

d. Partly false




51. ………………. Signifies some kind of regulation

a. Procedure

b. Rules

c. Method

d. All of the above

52. Strategy is a term very popular in …………

a. Military science

b. Political science

c. Artistic science

d. All

53. Policy may be ……………….

a. Written

b. Implied

c. Verbal

d. All of the above

54. Policies aren’t of great help in the delegation of authority by a manager.

a. True

b. False

c. Partly true

d. Partly false

55. Strictly rigid policies tend to become…………..

a. Rules

b. Regulation

c. Both a and b


56. Budget is a …………….

a. Multiple plan

b. Single use plan

c. Triple use plan

d. All of the above

57. Policies remain always valid

a. True

b. False

c. Partly true

d. Partly false

58. It is better that policies are flexible.

a. True

b. False

c. Partly true.

d. Partly false

59. …………………. Defines a strategy as the “ the determination of the basic long- term goals and

objectives of an enterpirse”




a. Kotler

b. Chandler

c. Maslow

d. Fredrick

60. ………………… refers to the outline of plans or work to be carried on.

a. Procedure

b. Programme

c. Guide

d. All of the above

61. Planning is function of every ……….

a. Manager

b. Director

c. Producer

d. All of the above

62. Forecasts may be ……………..

a. Comprehensive

b. Limited in their scope

c. Both a and b


63. In the steps in Forecasting what is next step after “Forecasting Future Course of business”:

a. Identifying and developing the structure.

b. Analysis of Deviations

c. Improving the existing Forecasting Procedure.


64. …………………… plays a very important role in planning

a. Organising

b. Forecasting

c. Staffing

d. All of the above

65. Which of the following is not the advantage of Forecasting:

a. Forecasting is done by individual.

b. Plan is a synthesis of various forecasts.

c. Forecasting enables the management to arrive at correct and accurate decisions.

d. All of the above.

66. Decisions relating to routine matters are ……………

a. Centralised

b. Decentralised

c. All of the above

d. None

67. Decision making involves selection from among the alternatives, the course of action to be

followed and it is not at all regarded as planning process.

a. True




b. False

c. Partly true.

d. Partly false.

68. Manager periodically checks on events and expectations and redraws plans as necessary to

maintain a course towards a desired goal. This is called as ……………..

a. Notional change

b. Navigational change

c. Both a and b

d. None

69. Cost effectiveness criteria can be made more systematic through the use of …………..

a. Models

b. Procedures

c. Policy

d. All of the above.

70. Meaning of Clairvoyance is ……..

a. To shove

b. Intuitive knowledge

c. Become a single unit

d. A chance

71. Meaning of Intermesh is

a. Thought as if in a mesh

b. Caught as if in a mesh

c. Push or jostle

d. Not acceptable

72. Planning is not fundamental right.

a. True

b. False

c. Partly true

d. Partly false

73. Control precedes planning

a. True

b. False

c. Partly true

d. Partly false

74. Planning can act as a Precious Managerial Instrument to provide for future.

a. True

b. False

c. Partly true

d. Partly false

75. According to ……………….. Planning is the selecting and relating of facts and the making and

using of assumptions regarding the future in the visualization and formulation of proposed

activities believed necessary to achieve desired results.




a. Maslow

b. George Terry

c. Angelina Maslow

d. All

76. Planning deals with …………..

a. Future

b. Past

c. Both a and b


77. Planning is not a continuous function of management.

a. True

b. False

c. Partly true

d. Partly false

78. Which of the following is the importance of planning :

a. Planning makes Personnel Conscious of Enterprise Objectives.

b. Planning leads to Economy in Operation.

c. Both a and b


79. ……………….. is a formal statement which include business goals, the plan for reaching those

goals.

a. Business plans

b. Marketing Plans

c. Operational plan

d. All of the above

80. The mission of business is not fundamental.

a. True

b. False

c. Partly true.

d. Partly false



a. Urwick and Brech

b. Mc Frebdi

c. Mec donalds

d. Maslow



purpose.

a. McFarland

b. Mc Frebdi

c. Mec donalds




d. Maslow

83. ……………… opines that it “has to do with the forces that maintain and alter the direction,

quality and intensity of behaviour”.

a. M.R. Jones

b. Joe Kelly

c. N.R Jones

d. Roe Kelly

84. ………………. defined supervision as “Supervision is guiding and directing efforts of employees

and other resources to accomplish stated work outputs.”

a. George R. Terry


c. Both a and b

d. None

85. “Unity of command cannot exist without unity of direction, but does not flow from it”

a. Fayol

b. Maslow

c. Taylor

d. All


a. 1938

b. 1939

c. 1940

d. 1941


a. McGregor

b. Taylor

c. Macdonalds

d. Tiger Shroff

88. In which of the following leadership the leader depends largely upon the group and its








a. Robert Blake

b. Jane Mouton

c. Both a and b

d. None

90. Internal co-ordination is the establishment of a relationship between the employees of the

organization and the outsiders of the enterprise.




a. True

b. False

c. Partly true

d. Partly false



b. Specialization


d. All of the above

92. Limitation of co-ordination is / are :

a. Lack of Administrative Talent

b. Lack of Management talent

c. Lack of Illustrative talent

d. All of the above



a. True

b. False

c. Partly true

d. Partly false




a. Tead

b. Fead

c. Cread

d. Maslow



a. Coordination

b. Direction

c. Leadership

d. All of the above

96. Coordination is a static process.

a. True

b. False

c. Partly true

d. Partly false

97. ‘Consideration’ resembles the autocratic style of leadership.

a. True

b. False

c. Partly true




d. Partly false

98. According to…………….., “leadership is the activity of influencing people to strive willingly for

group objectives”.

a. George R. Terry


c. Fernandes

d. Chiplankar

99. Which theory is also known as the “Two Factor Theory”?

a. Theory of Doughlas Mcgregor

b. Herzberg’s Motivation – Hygiene Theory

100. The approach towards directing the subordinates will depend upon the situation

only.

a. True

b. False

c. Partly true

d. Partly false


1 B 21 A 41 A 61 A 81 A

2 B 22 B 42 B 62 C 82 A

3 A 23 C 43 B 63 B 83 B

4 C 24 A 44 D 64 B 84 C

5 A 25 B 45 A 65 A 85 A

6 A 26 A 46 C 66 B 86 B

7 B 27 B 47 D 67 B 87 A

8 C 28 C 48 B 68 B 88 D

9 A 29 B 49 A 69 A 89 C

10 C 30 B 50 B 70 B 90 B

11 A 31 B 51 B 71 B 91 B

12 A 32 B 52 A 72 B 92 A

13 B 33 D 53 D 73 B 93 A

14 B 34 B 54 B 74 A 94 A

15 B 35 D 55 A 75 B 95 A

16 A 36 B 56 B 76 A 96 B

17 A 37 B 57 B 77 B 97 B

18 B 38 D 58 A 78 C 98 A

19 C 39 A 59 B 79 A 99 B

20 A 40 B 60 B 80 B 100 B




TEST PAPER 8



a. Section 32

b. Section 33

c. Section 34

d. Section 35


a. lapse of time;






d. all of the above

3. In case of death of the promisor before performance



c. the representatives of the promisor are bound to perform the promise unless a


d. the representatives of the promisor are not bound to perform the promise unless a


4. A tender must fulfil which of the following conditions to be valid:

a. it must be made under circumstances enabling the other party to ascertain that the

party by whom it is made is able and willing then and there to do the whole of what

he is bound, to do by his promise;

b. if the tender relates to delivery of goods, the promisee must have a reasonable

opportunity of seeing that the thing offered is the thing which the promisor is bound

by his promise to deliver;

c. tender made to one of the several joint promisees has the same effect as a tender to

all of them.

d. All of the above

5. The contract act received the assent from the parliament on …………….

a. 25th April 1872

b. 1st April 1872

c. 2nd April, 1872

d. 25th Feb 1872

6. The agreement created by minor is void ab initio and will not create any obligation on

the parties:

a. Mohiri Biwi v Gharomodas Ghosh

b. Mohiri biwi V Dharomadas Ghosh

c. Lindle V Sheil

d. All of the above

7. Minor always can plead minority.

a. True

b. False

c. Partly true

d. Partly false




c. Lindle V Sheil

d. All of the above

9. A “sucide” and “threat to commit sucide” are not punishable but an attempt to commit

sucide is punishable under the Indian penal code.




a. True

b. False

c. Partly true

d. Partly false

10. The undue relationship cannot be exercised in lover and beloved.

a. True

b. False

c. Partly true

d. Partly false

11. Misrepresentation is contained in section ……….

a. 18

b. 13

c. 12

d. 14

12. Breach of contract on the day of performance is known as :

a. Actual

b. Anticipatory

c. Both a and b

d. None

13. The damages which are decided without interference of the court are called as …………………



c. Both a and b

d. None

14. As per……………, a contingent contract is a contract to do or not to do something, if some

event collateral to such contract, does or does not happen.

a. Section 30

b. Section 31

c. Section 32

d. Section 33






d. Salmon v salmon


a. True

b. False

c. Partly true

d. Partly false





not.







a. Section 2(j)

b. Section 2(k)

c. Section 2(l)

d. Section 2(g)







a. Executory

b. Future

c. Both a and b

d. None


a. Executed

b. Present

c. Both a and b

d. None




c. Consideration.

d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. Section 14

b. Section 15

c. Section 16

d. Section 17






non-excusat).

a. True

b. False

c. Partly true

d. Partly false







c. Both a and b

d. None


a. parda-nishin

b. Conses idem.

c. Magis

d. Waleat




c. both a and b



a. True

b. False

c. Partly true

d. Partly false


not execusable.

a. True

b. False

c. Partly true

d. Partly false

31. “Management is efficiency in climbing the ladder of success; leadership determines

whether the ladder is leaning against the right wall” is given by:

a. Stepni W. Covey

b. Stepni R. Covey

c. Stephen W. Covey

d. Stephen R. Covey




32. The economic environment around us consist of three basic entities:

a. Household

b. Firms

c. Government

d. All

33. The word ‘management’ has its origin in the …………………. Word ‘nomos’ which means

‘management’ .

a. Latin.

b. Greek

c. Indian

d. All of the above

State who has given the following statements:

34. “The process of getting things done by the people and through the people”

a. Hick.


c. Henry Fayol

d. Haimann

35. “Getting things done through and with the people”


b. Henry Fayol

c. Haimann

d. Hick

36. “ To manage is to forecast, and to plan, to organise, to command, and to co-ordinate”

a. Henry Fayol

b. Haimann

c. Hick

d. None

37. Which of the following is the objective of management :

a. Achieve maximum output with minimum Efforts

b. Optimum Use of resources

c. Maximum prosperity

d. All of the above

38. Which of the following is not the importance of management?

a. Establishes margin of safety

b. Establish equilibrium

c. Prosperity of society

d. Establishes sound organisation

39. Success on the part of the executive essentially calls for a capability to promote self -

appraisal.

a. True

b. False

c. Partly true

d. Partly false




40. Management is an exact science.

a. True

b. False

c. Partly true

d. Partly false

41. Science includes physical science but not social science

a. True

b. False

c. Partly true

d. Partly false

42. Which of the following is the feature of Management of science

a. Management is an interdisciplinary science

b. Management is an indefinite science.

c. Management is an inexact science

d. Management is an exact science

43. The process of management involves the use of :

a. Know how

b. Skill

c. Both a and b

d. None

44. …………………. Is the core of management.

a. Planning

b. Decision making

c. Forecasting

d. All of the above

45. Which of the following word did Luther Gullick coin using the initial letters of management

functions:

a. POSBRD

b. POSDCORB

c. CAMELS

d. NONE

46. Planning means deciding in the present what to so in the future. It is the process whereby

companies reconcile their resources with their objectives and opportuniites.

a. Philip Cotler

b. Philip Kotler

c. Ammey bhush

d. George Bhush

47. Planning is not pervasive function of management.

a. True

b. False

c. Partly true

d. Partly false




48. Features of Planning include:

a. Intellectual process

b. Primary function

c. Continuous function

d. All

49. Which of the following is not the type of plan.

a. Operational plan

b. Statistic plan

c. Strategic plan

d. Project plan


a. Reflective thinking

b. Imagination

c. Farsightedness

d. All of the above

51. Only economists and statisticians employed by the management as staff experts are

involved in making forecasts.

a. True

b. False

c. Partly true

d. Partly false

52. Plan can be made only for intermediate run.

a. True

b. False

c. Partly true

d. Partly false

53. Principle of Decision Making include:

a. Principle of Definition

b. Principle of Evidence

c. Principle of Identity

d. All of the above

54. Predictions and assumptions about the future are known as ……………….

a. Planning Premises

b. Planning area.

c. Planning precincts

d. All of the above

55. All decisions taken at all times are generally of equal importance.

a. True

b. False

c. Partly true

d. Partly false

56. Decision making by groups is not a rare thing observed in business operation.




a. True

b. False

c. Partly true

d. Partly false

57. Forecasting is defined as an analysis and interpretation of the …………………. Conditions in

relation to operations of the enterprise.

a. Past

b. Future

c. Medium

d. All

58. The following process of decision making is true or false.

i. Identifying and diagnosing the Real problem.

ii. Analysis and Evaluation of Available Alternatives.

iii. Discovery of Alternatives.

iv. Communication of decision and its acceptance by the organisation

v. Selection of alternative to be followed

a. True

b. False

c. Partly true

d. Partly false

59. Decision making by groups take place in …………

a. Board meeting

b. Committees

c. Staff members

d. All of the above

60. The following process of forecasting is true or false.

i. Identifying and Developing the Structure

ii. Forecasting Future Course of Business

iii. Analysis of Deviations

iv. Improving the Existing Forecasting Procedure

a. True

b. False

c. Partly true

d. Partly false

61. Sale of Goods Act is one of the latest mercantile law.

a. True

b. False

c. Partly true

d. Partly false

62. Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust.

a. Zig Ziglar

b. Maslow




c. Henry fayol

d. Fredrick Taylor

63. An agreement to sell is an executory contract; a sale is an executed contract.

a. True

b. False

c. Partly true

d. Partly false

64. Goods may be:

a. existing

b. future,

c. contingent.

d. All of the above

65. Sale can take place without price.

a. True

b. False

c. Partly true

d. Partly false

66. According to the Consumer Protection Act of 1986, goods means as defined under

................................

a. Sale of goods Act

b. Contract Act

c. Partnership Act

d. All of the above

67. In the right of lien, the possession is retained by ................................

a. Paid seller

b. Unpaid seller

c. Both a and b

d. None

68. Where the property in the goods has passed to the buyer, the seller may not sue him for the

price.

a. True

b. False

c. Partly true

d. Partly false

69. The sale of goods act deals with transfer of ownership in the immovable property.

a. True

b. False

c. Partly true

d. Partly false

70. The Act was approved by the parliament on

a. 15th March 1930

b. 16th March 1930




c. 20th April 1930

d. 25th April, 1930

71. The sale of Goods Act was enforced in India in ……………….

a. 1st July 1930.

b. 5th July 1930

c. 15th July 1930

d. 25th July 1930

72. Actionable claim means a right to approach the court for recovering an unsecured debt.

a. True

b. False

c. Partly true

d. Partly false

73. Unascertained Goods are also known as Generic Goods

a. True

b. False

c. Partly true

d. Partly false

74. Future & contingent goods don’t have similar characteristics.

a. True

b. False

c. Partly true

d. Partly false

75. Every goods have ……. Property.

a. 3

b. 2

c. 1

d. 5

76. Which of the following are essentials of contract of sale:

a. The consideration for the good must be price. Exchange offers where some element

of cash is present will be covered under sale.

b. Transfer of property / ownership must take place from the seller to the buyer.

c. All other essentials of elements of a valid contract must remain present.

d. All of the above

77. Unenforceable agreements and illegal agreements mean one and the same thing.

a. True

b. False

c. Partly true

d. Partly false

78. The relation between a doctor and his patient is not fiduciary in nature.

a. True

b. False

c. Partly true




d. Partly false

79. In ……………………goods were despatched by the seller from Bombay to Bellary through a

public carrier.

a. Multanmal Champalal v. Shah & Co

b. Consolidated Coffee Ltd. v. Coffee Board

c. Rugg v. Minett

d. All of the above

80. …………… section deals with conditions as the title.

a. 14(a)

b. 14(b)

c. 14(c)

d. 14(d)

81. Symbolic delivery is made by indicating or giving a symbol.

a. True

b. False

c. Partly true

d. Partly false

82. Which of the following rules apply regarding delivery of goods:

a. The seller must deliver the goods according to the contract.

b. The seller is to deliver the goods when the buyer applies for delivery; it is the duty of

the buyer to claim delivery.

c. Where the goods at the time of the sale are in the possession of a third person, there

will be delivery only when that person acknowledges to the buyer that he holds the

goods on his behalf.

d. All of the above

83. ……………. Deals with Passing of Risk

a. Section 26

b. Section 25

c. Section 24

d. Section23

84. ……….. means the stipulations which are collateral to the main purpose of the contract and if

seller makes breach of any warranty buyer can only claim damages but cannot cancel the

contract.

a. Warranties

b. Guarantees

c. Both a and b

d. None

85. Which laws govern the sale of movable property in India?

a. Transfer of Property Act

b. Indian Contract Act

c. Sale of Goods Act

d. CPC




86. Goods for sale of Goods Act include:

a. Actionable claim

b. Money

c. Land


87. In a contract of sale of trees, the property passes to the buyer:

a. When the trees are severed and ascertained

b. When the municipality permits

c. When the seller delievers the trees

d. All of the above

88. The term ‘documents of title of goods’ is defined in the Sale of Goods Act, 1930 under:

a. Section 2(4)

b. Section 2(6)

c. Section 2(8)

d. Section 2(9)

89. Which of the following is document of title to goods?

a. Railway Receipt

b. Tax challan

c. Gate pass

d. All of the above

90. In a contract of sale there are at least ……parties:

a. 2

b. Many

c. 3

d. Nota

91. In a contract of sale there are :

a. At least 2 parties

b. Goods is the subject matter

c. Price is the consideration

d. All of the above

92. An existing goods may be :

a. Ascertained goods

b. Unascertained goods

c. Specified goods

d. All of the above

93. A condition may be :

a. Express condition

b. Implied condition

c. Both a and b

d. None

94. The rule of caveat emptor does not apply in case of

a. Sale by sample




b. Sale under a patent name

c. Sale under usage of trade

d. All of the above

95. A breach of warranty …………..be termed as a breach of condition.

a. Can

b. Cannot

c. May

d. must

96. Provision relating to passing of property in case of goods sent on approval or ‘on sale or

return’ basis are given in section … of the Sale Goods Act.

a. 18

b. 20

c. 24

d. 26

97. Risk of loss on insolvency of the buyer is borne by …………

a. The seller

b. The buyer

c. Insurance company

d. All of the above

98. ‘Nemo dat quod non habeat’ is




d. Is in japanese language

99. Risk passes with:

a. Delivery of the goods

b. The property

c. Full payment of price

d. Part payment of price

100. Which of the following does not come into the category of delivery:

a. Actual delivery

b. Constructive delivery

c. Perpetual delivery

d. Symbolic delivery


1 B 21 C 41 C 61 B 81 A

2 D 22 D 42 C 62 A 82 D

3 C 23 B 43 C 63 A 83 A

4 D 24 B 44 B 64 D 84 A

5 A 25 A 45 B 65 B 85 C




6 B 26 C 46 B 66 A 86 D

7 A 27 A 47 B 67 B 87 A

8 C 28 C 48 D 68 B 88 A

9 A 29 B 49 B 69 B 89 A

10 B 30 B 50 D 70 A 90 A

11 A 31 D 51 B 71 A 91 D

12 A 32 D 52 B 72 A 92 D

13 B 33 B 53 D 73 A 93 C

14 B 34 A 54 A 74 B 94 D

15 A 35 A 55 B 75 B 95 B

16 A 36 A 56 A 76 D 96 C

17 A 37 D 57 B 77 B 97 A

18 A 38 A 58 B 78 B 98 B

19 A 39 B 59 D 79 A 99 B

20 C 40 B 60 A 80 A 100 C

TEST PAPER 9



a. Section 32

b.Section 33

c.Section 34

d.Section 35





a. lapse of time;



d. all of the above

3.In case of death of the promisor before performance



c. the representatives of the promisor are bound to perform the promise unless a contrary

intention appears from the contract.

d. the representatives of the promisor are not bound to perform the promise unless a contrary

intention appears from the contract.

4. A tender must fulfil which of the following conditions to be valid:

a. it must be made under circumstances enabling the other party to ascertain that the

party by whom it is made is able and willing then and there to do the whole of what

he is bound, to do by his promise;

b. if the tender relates to delivery of goods, the promisee must have a reasonable

opportunity of seeing that the thing offered is the thing which the promisor is bound

by his promise to deliver;

c. tender made to one of the several joint promisees has the same effect as a tender to

all of them.

d. All of the above

5. The contract act received the assent from the parliament on …………….

a. 25th April 1872

b. 1st April 1872

c. 2nd April, 1872

d. 25th Feb 1872

6. The agreement created by minor is void ab initio and will not create any obligation on

the parties:



c. Lindle V Sheil

d. All of the above


a. True

b. False

c. Partly true

d. Partly false




c. Lindle V Sheil




d. All of the above

9. A “sucide” and “threat to commit sucide” are not punishable but an attempt to commit

sucide is punishable under the Indian penal code.

a. True

b. False

c. Partly true

d. Partly false

10. The undue relationship cannot be exercised in lover and beloved.

a. True

b. False

c. Partly true

d. Partly false

11. Misrepresentation is contained in section ……….

a. 18

b. 13

c. 12

d. 14

12. Breach of contract on the day of performance is known as :

a. Actual

b. Anticipatory

c. Both a and b

d. None

13. The damages which are decided without interference of the court are called as …………………



c. Both a and b

d. None

14. Section 62 deals with …………….

a. Recission

b. Novation






d. Salmon v salmon


a. True

b. False

c. Partly true

d. Partly false





not.







a. Section 2(j)

b. Section 2(k)

c. Section 2(l)

d. Section 2(g)







a. Executory

b. Future

c. Both a and b

d. None


a. Executed

b. Present

c. Both a and b

d. None




c. Consideration.

d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. Section 14

b. Section 15

c. Section 16

d. Section 17






non-excusat).

a. True

b. False

c. Partly true

d. Partly false







c. Both a and b

d. None


a. parda-nishin

b. Conses idem.

c. Magis

d. Waleat




c. both a and b



a. True

b. False

c. Partly true

d. Partly false


not execusable.

a. True

b. False

c. Partly true

d. Partly false

31. A contract where the proposal acceptance and conditions are made in words either written

or oral is an express contract.

a. Express Contract

b. Tacit Contract

c. Quasi contract

d. All of the above




32. A lunatics agreement is …………….

a. Void

b. Voidable

c. Invalid

d. Valid

33. The basis of a contract is mutual consent.

a. True

b. False

c. Partly true

d. Partly false

34. An………………. is one which makes an exorbitant profit of the others distress by a person who

is in a dominant position.

a. Unconscionable transaction

b. Conscionable transaction

c. Both a and b


35. Mistake must be ………………..

a. mutual

b. bilateral

c. Both a and b

d. Unilateral

36. An agreement is illegal if its consideration is an act of sexual immorality.

a. True

b. False

c. Partly true

d. Partly false

37. …………….of the Indian Contract Act states that every agreement by which any one is


extent, void.

a. Section 24

b. Section 25

c. Section 26

d. Section 27

38. An agreement not enforceable by law is ………………….

a. Void

b. Void ab initio

c. Voidable

d. illegal

39. Where the contracting parties agree in advance the amount payable in the event of breach,

the sum payable is called………………






c. Special damages

d. Ordinary damages




b. Sir George Bhush


d. Sir David Gibbs


a. mercantile

b. commercial

c. Both a and b

d. None


a. September,1872.

b. October, 1872

c. September, 1873

d. October, 1873


a. True

b. False

c. Partly true

d. Partly false


a. Salmon



d. Sir George Bhush




a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)



a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)





a. Strict consent.





satisfied.

a. True

b. False

c. Partly true

d. Partly false


a. Section 2(h)

b. Section 2(k)

c. Section 2(e)

d. Section 2(j)


a. Void contract



d. All of the above



a. Executory

b. Executed

c. Both a and b

d. None


a. Void contract



d. All of the above


a. True

b. False

c. Partly true

d. Partly false


a. True

b. False

c. Partly true

d. Partly false







b. Harvey v. Facey




a. Section 7

b. Section 6

c. Section 8

d. Section 9



b. Consim-ed-idem

c. Quid- pro- quo

d. Magis pareat




c. Both a and b

d. None

59. Which of the following are the liabilities of joint promisor:

a. The promise can compel any one if the joint promisors to perform the whole

contract.

b. If a single joint promisor has performed whole of the contract he can ask for

contribution from the remaining joint promisors.

c. Both a and b

d. None

60. Ram paid Rs 100000000 to Karan for bringing stars from the universe. This is a ……………

a. Void contract

b. Void agreement

c. Valid contract

d. Invalid contract

61. In alteration can new party enter:

a. Yes

b. No

62. Novation can be with………..

a. Same parties

b. Different parties

c. Both a and b

d. None

63. Remission is contained in section ……..




a. 61

b. 62

c. 63

d. 35

64. A contract to contract is a contract.

a. True .

b. False

c. Partly true

d. Partly false

65. …………………..of the Indian Contract Act states that every agreement by which any one is


extent, void.

a. Section 27

b. Section 28

c. Section 29

d. Section 30

66. Collateral agreements to illegal agreement are also……………

a. Legal

b. Illegal

c. Valid

d. Invalid

67. Coercion is also known as :

a. Duress

b. Kuress.

c. Waiver

d. All of the above

68. Ram purchased 10 kg of steel at Rs 1 crore believing it to be platinum.

a. The contract is valid

b. The contract is invalid

c. The contract is void

d. All of the above

69. The relations in which undue influence can be used are:

a. Father and daughter

b. Doctor and patient

c. Lawyer and client

d. All of the above

70. An agreement of marrying after a certain period of time is :

a. Void

b. Void-ab-intio

c. Valid

d. Invalid

71. Goals are similar to needs but imply that the object is social, not merely physiological.




a. True

b. False

c. Partly true

d. Partly false

72. Transactional Analysis can give employees fresh insight into their own personalities.

a. True

b. False

c. Partly true

d. Partly false

73. While decoding the message the sender determines the method of transmission.

a. True

b. False

c. Partly true

d. Partly false

74. Formal channels of communication are referred to as “Communication through the chain of

command”.

a. True

b. False

c. Partly true

d. Partly false

75. A confession of mistake may lead to material gains in terms of promotion and pay hike

a. True

b. False

c. Partly true

d. Partly false

76. ……………….. state that “leadership is influencing people to follow in the achievement of a

specialised goal”.


b. George Terry

c. Henry Fayol

d. Maslow

77. Parent is a thought concept of life.

a. True

b. False

c. Partly true

d. Partly false

78. Child is taught concept of life

a. True

b. False

c. Partly true

d. Partly false

79. What are the elements of direction ?




a. Motivation

b. Leadership

c. Communication

d. All of the above

80. The principles of direction are:

a. Follow up


c. Direction Supervision

d. All of the above

81. Fredrick Herzberg has developed the ……………..

a. Equity Theory of Motivation

b. Motivation Hygiene Theory

c. Hierarchy of Needs

d. All of the above

82. There are …………. Types of ego states.

a. 2

b. 3

c. 4

d. 5

83. Who pointed out that effective direction depends upon the ‘harmony of objectives” ?

a. Taylor

b. Henri Fayol

c. Ordway Tead

d. Koontz and O’donnell

84. The studies conducted at University of Michigan revealed …………….kinds of style.

a. 2

b. 3

c. 4

d. 5

85. Communication is ……………………….. of understanding.

a. Transaction

b. Acceptance

c. Transmission


86. Co-ordination is not a once for all exercise, rather it is an outgoing …………………..

a. Process

b. Planning

c. Activity


87. Which of these is a type of internal Co-ordination:

a. Vertical Co-ordination

b. Horizontal Co-ordination




c. Both a and b

d. None

88. We can overcome barriers to communication by which of the following:

a. Feedback

b. Strategic use of grapevine

c. Using proper language

d. All of the above

89. Which of the following are the positive aspects of grape wine?

a. The informal network of communication represents the natural desire of the

subordinates in an organization to interact and communicate with one another, and

fulfills their desire to know the latest information or course of events.

b. The grapevine works with surprising speed and is often faster than the official

channels; information gets disseminated very promptly.

c. It also offers the managers insight into what the subordinates think and feel.

d. All of the above

90. Which of the following are the negative aspects of grapevine :

a. Often the grapevine carries rumours, and inaccurate and partial information because

of varied interpretations of each individual the information gets distorted.

b. Since it is spontaneous, the grapevine has no stable associates or a definite pattern.

Generally, a few persons are usually found active participants in the grapevine. The

path and behaviour of the grapevine is also unpredictable.

c. Both a and b

d. Neither a nor b

91. Models on somebody’s face is included in Action.

a. True

b. False

c. Partly true

d. Partly false

92. The principles of direction are :

a. Follow up


c. Direct supervision

d. All of the above

93. Certain behavioural patterns learned and used with skill as seen in leaders are:

a. Awareness

b. Empathy

c. Objectivity

d. All of the above

94. State whether the following process of communication is true or false:

- Develop an Idea

- Encode

- Receive




- Transmit

- Decode

- Feedback

a. True

b. False

c. Partly true

d. Partly false

95. Which of the following is / are the principle of communication:

a. Principle of Clarity

b. Principle of Integrity

c. Principle of Strategic use of Informal Organization

d. All of the above

96. Ordway Tead emphasised on………… qualities for effective leadership qualities.

a. 8

b. 9

c. 10

d. 11

97. Co-ordination is the essence of …………………………..

a. Entrepreneurship

b. Secretarialship

c. Partnership

d. Managership

98. ……………………………communication is more participative in nature.

a. Downward

b. Upward

c. Both a and b


99. Co-ordination is different from ……………………

a. Co-operation

b. Organisation

c. Management


100. Co-ordination is not:

a. A continuous and dynamic process

b. Relevant for individual efforts

c. Laying emphasizes on unity of efforts

d. The responsibility of every manager


1 B 21 C 41 C 61 B 81 B

2 D 22 D 42 A 62 C 82 B




3 C 23 B 43 B 63 C 83 A

4 D 24 B 44 B 64 B 84 A

5 A 25 A 45 A 65 A 85 C

6 B 26 C 46 C 66 B 86 C

7 A 27 A 47 C 67 A 87 C

8 C 28 C 48 B 68 A 88 D

9 A 29 B 49 D 69 B 89 D

10 B 30 B 50 A 70 B 90 C

11 A 31 A 51 A 71 B 91 B

12 A 32 A 52 C 72 A 92 D

13 B 33 B 53 B 73 B 93 D

14 A 34 A 54 A 74 A 94 B

15 A 35 C 55 A 75 B 95 D

16 A 36 A 56 B 76 A 96 C

17 A 37 D 57 A 77 B 97 D

18 A 38 B 58 C 78 B 98 B

19 A 39 A 59 C 79 D 99 A

20 C 40 A 60 B 80 D 100 B

TEST PAPER 10

1.Ideal control is instantaneous ,self -correcting and …………….looking

a) Forward

b) Backward

c) Onward

d) Downward

2.The standards of performance may be

i. Tangible




ii. Intangible

iii. Specific

iv. Abstract

a) 2,3,4

b) 1,2,3

c) All of the above


3.Planning IS………..and controlling is …………….

a) Looking above ,looking below

b) Looking below ,looking above

c) Looking ahead ,looking back

d) Looking back, looking ahead

4.The full form of ZBB is

a) Zero budget budgeting

b) Zero base budgeting

c) Zero break budgeting

d) All of the above

5.Which of the following are the elements of Budget

a) Determination of objectives

b) Noting the steps necessary to achieve objectives

c) Translating the course of action into quantitative and monetary terms

d) All of the above

6.Which of the following is a Modern Methods of Performance Appraisal

a) Checklist

b) Field review

c) Behaviourally anchored rating scales

d) Employee rating

7. Which of the following are the advantages of Performance Appraisal

a) Helps to supervisior to evaluate performance

b) Ability of staff is recognised

c) Provides an incentive to the employee to better their performance

d) All of the above

8.Employment interview are conducted

a) To find suitability of the candidate

b) To seek more information about the candidate

c) To give accurate picture of the job with details of terms and conditions




d) All of the above

9……………..is the process of searching candidate for vacant jobs and making them apply for the

same

a) Recruitment

b) Selection

c) Both a and b


10.Workers who are employed for clerical work are called …………

a) Blue collar Workers

b) White collar Workers

c) Professionals

d) All of the above

11…………………calls human resources ,’human factors’which refer to a whole consisting of inter

related ,interdependent and interacting physiological ,sociological and ethical components “

a) Leon C.Megginson

b) Jucius Michael

c) French Wendell

d) Edwin B.Flippo

12.A manager who is establishing objectives is performing the management functions of

a) Motivating

b) Directing

c) Planning

d) Constraining

13…….is an empty exercise without control

a) Forecasting

b) Decision making

c) Planning

d) Organising

14.Decision making by groups takes place in:

a) Board meeting

b) Committees

c) Conference s

d) All of the above

15.Selection of alternatives to be followed is done by

a) Selection on basis of experiments




b) Research on basis of decision

c) Both a and b


16.Which qualities should a person posses to be succed in planning

a) Reflective thinking

b) Imagination

c) Forsightedness

d) All of the above

17.Which are the limitations of planning

a) Procedure and policy rigidity

b) External constraints

c) Rapidity of change

d) All of the above

18. Newmann and Summer classified managing process as functions of

a) Technical

b) Organising

c) Accounting

d) Managerial

19.Administration is a ………..level function while management is a ………………..level function

a) Lower,top

b) Base ,high

c) High ,base.

d) Top, lower

20Professional manager tasks include

a) Providing direction to the firm

b) Maintaining firm’s efficiency

c) Meeting the competition challenge

d) All of the above

21.Henry Fayol suggest ……………principles of management

a) 12

b) 14

c) 16

d) 18

22.Which of the following are the various schools of management

a) Empirical approach




b) Operational approach

c) Decision theory approach

d) All of the above

23.Motivating assembly workers to achieve their goals each day would be the responsibility of

a) Top management

b) Middle management

c) First line management

d) Assembly workers

24. The decisions to introduce new products in order to reach objectives is often a key

management duty

a) True

b) False

c) Partly true

d) Partly false

25.Chester Barnard is the pioneer of………….approaches to management

a) Ancient

b) Traditional

c) Modern


26.”Transfer and adaptation of technology “is ………………

a) Importance of organisation

b) Process of organisation

c) Type of organisation


27.The drawbacks of Functional Organization are:

a) Because of high degree of specialisation ,functional organisation is difficult to obtain

b) It is with unified control and undivided loyalty ,it ensures excellent discipline

c) It is likely to encourage repotism

d) It is based upon autocratic system of management

28.Authority can be delegated but not the ………..

a) Accountability

b) Responsibility

c) Both a and b


29.What factors determine the degree od decentralisation




a) Importance of decision

b) Size of enterprise

c) Control technique

d) All of the above

30.In the principle of delegation –“Responsibility cannot be delegated”is violated then the

consequences are:

a) Management at the top shall have great responsibility and yet not be accountable for the

results

b) When the manager is allowed to delegate even his obligation there shall be no way of

knowing who was accountable for what

c) If the manager is able to pass an obligation along with delegation of authority to the sub-

ordinate ,the rule of single chain of command will be violated

d) All of the above

31.Who regards informal organisation as the network of personal and social relationship which is

not established and requiredby formal organisation

a) Barnard

b) Keith Davis

c) Larry E.Greiner


32.Theory X is based on ………………..assumption about human nature

a) Positive /conventional

b) Formal /conventional

c) Informal /conceptual

d) Negative /conventional

33.Maslow Theory of Need Hierarchy consists of 5 needs ie physiological needs, security needs

,sociological needs ,belongingness and self- actualisation

Needs:

a) True

b) False

c) Partly true

d) Partly false

34.An effective leader is one who is able to force his will on his subordinates

e) True

f) False

g) Partly true

h) Partly false




35.”Leadership is the activity of influencing people to strive willingly for group objectives “,is stated

by

a) George R.Terry

b) Koontz and O’Donnell

c) Ordway Tead


36.According to whom ,’supervision is guiding and directing efforts of employees and other

resources to accomplish states work outputs”

a) Koontz and O’Donnell

b) Terry and Franklin

c) Fayol and Tead


37.Internal forces are classified as

a) Composition and policy of top management

b) Changes of personnel

c) Changes of physical facilities

d) All of the above

38.How can we overcome Resistance of change

a) Changes should be introduced at once

b) Changes should not carry individual overtones

c) Changes should cause problems to the system so as to change

d) All of the above

39.Full form of TQM is …………..

a) Total quantity management

b) Total quality management

c) Both a and b


40.Which of the following are the importance of Internal business

a) Foreign exchange earnings

b) Expand and diversity

c) Increased competitive capacity

d) All of the above

PART B

41.Ethics has become the buzz word in the corporate world because of

a) Globalization




b) Nationalisation

c) Responsibility


42.EBEN stands for

a) European Bank Ethics Network

b) European Business Ethical Network

c) European Business Ethics Neetwork


43.Ethics is not absolute and is open to the influence of

a) Time

b) Place

c) Situation

d) All of the above

44.A solid ethics foundation has ………..key elements

a) 3

b) 4

c) 5

d) 6

45)Employees have the obligation to the firm to avoid all of the following except

a) Conflict of interest

b) Bribes and extortion

c) Insider trading

d) Whistle blowing

46) Measures to improve ethical behaviour of business are framed at ……level

a) 1

b) 2

c) 3

d) 4

47)Ethical decisions considers the following principles

a) Honesty

b) Integrity

c) Loyalty

d) All of the above

48.Morality is defined as




a) What is considered as correct within a society

b) Making the right decisions where there is a chance to do wrong

c) Defining what is right and wrong for an individual or a community

d) Where individuals have a conscious choice to make a right and ethical decision

49.Ethics and law overlap .this is called ………

a) Yellow area

b) White area

c) Black area

d) Grey area

50.Which is not a reason of business engages in business ethics

a) To recover a company’s image after a notorious business scandal

b) To avoid the loss of a good corporate image or being sued for misconduct

c) To enhance global relationship

d) To enhance stake holder relation ship

51.Ethical theories are

a) Conduct that should be followed in order to have a good ethical practise

b) The rules and principles that determine right and wrong for any given situation

c) Ancient hypothesis on how to create good business practise

d) To give guidelines on how to achieve a good corporate image

52.Divine command theory is

a) “Do unto to competitors as you would have them do unto you”

b) “Do unto others as you would have them do unto you “

c) “Do unto to friends as you would have them do unto you”

d) “Thou must attend LAVA on a Wednesday”

53.Ethical Egoism can be defined as

a) Look after no.1

b) Look after your business

c) Don’t let anyone’s ego affect your business decisions

d) Don’t let your ego get in the way of your business

54.Whistleblowing are




a) Employees of an organisation that go beyond normal procedures and loyalty to their

employer and report wrong doing in the interest of the public good

b) Employees go beyond ,their duties and expectation in order to highlight wrong within the

organisation

c) Both a and b


55.Agency theory is the same as stakeholder theory

a) True

b) False

c) Partly true

d) Partly false

56.Ethical behaviour is not in the long term interest of businesses

a) True

b) False

c) Partly true

d) Partly false

57.Marketing communications activities can be deemed ‘ethical neutral ‘,meaning that it depends

on

a) Legal guidelines

b) Stated business aims

c) How they are carried out

d) Available finance

58.Research suggests that unethical behaviour is viewed most seriously by stakeholders if

a) Some customers are upset

b) Unfavourable reports appear in the media

c) It has a long term ,negative impact on organisational effectiveness

d) A standard agency criticises the organisation

59.There is no intrinsic difference between lying ,misrepresentation and puffery in advertising

a) True

b) False

c) Partly true

d) Partly false

60.Misrepresentation can occur when a salesperson makes incorrect statements

a)True

b)False

c)Partly true




d)Partly false

PART C

61.Which of the following are browsers

a) Google chrome

b) Firefox

c) Internet explorer

d) All of the above

62.An extranet allows two or more firms to use the ………………..to conduct business together

a) Web

b) Internet

c) Intranet

d) Telephone

63.Email can be considered a confidential mode of communication

a) True

b) False

c) Partly true

d) Partly false

64.To search FTP archives for a file ,you should use the ……………tool

a) Gopher

b) Jughead

c) Archie

d) Jalopy

65.Which of the following are parts of an email header

a) To

b) From

c) Subject

d) All of the above

66.Which scheme has earned popularity

a) Voluntary retirement scheme

b) Employee stock options plans

c) Gratuity scheme


67.Titles such as ………………can be used in place of more commonly used memorandum

a) Office memorandum




b) Interoffice correspondence

c) Interoffice communication

d) All of the above

68……………..are used for inter departmental communication

a) Invoice

b) Memo

c) Office notes

d) Bill order

69…………..are exchanged between two different departments

a) Office orders

b) Office notes

c) Office circular

d) Memorandum

70.Memo ,report Office Order ,Circular ,Staff Newsletter Fax etc are the form of

a) Non -verbal communication

b) Written communication

c) Oral communication

d) Audio visual communication

71.According to whom ,”Enterprise are paid to create wealth ,not to control costs .But first year

accounting students are taught that the balance sheet portrays the liquidation value of the

enterprise and provides creditors with the worst case information”

a) Peter Drucker

b) Adam Smith

c) Koontz O’Donnell

d) Jucius Michael

72………………….requires letter writing for the following services:Stop payment ,overdraft limits,Term

loan and Status Enquiries.

a) Insurance

b) Banking

c) Electricity


73.The employees contribute a total of …………………..of their basic salary plus dearness allowances

to the funds established under the schemes prescribed by the Central Government

a) 5%

b) 10%

c) 12%




d) 15%

74.A company Secretary occupies an important place in a …………….set up

a) Trust

b) Partnership

c) Corporate

d) Proprietorship

75.Give one word for –“often lost in thought and unaware of one’s surroundings”.

a) Philosopher

b) Attentive

c) Immortal

d) Absent –minded

76.Give full form of BPO

a) Business progress organized

b) Business processes organized

c) Business process outsourcing


77.The synonym of the word “abandon” is

a) Leave

b) Hate

c) Ridiculous

d) Abnormal

78.Give the full form of “e.g.”

a) Exchange

b) Eager

c) For example

d) Example

79.Truth and coherence are of equal importance in ……….

a) Direction

b) Guidance

c) Communication

d) Delegation

80.Information never gets distorted or filtered while passing through different level of hierarchy

a) True

b) False

c) Partly true




d) Partly false

81.’Two crossed bones under a skull” indicate ………….signal

a) Forward

b) U-turn

c) Safe

d) Danger

82.Sending MIS Report is a form of an ………………communication

a) Backward

b) Upward

c) Downward


83.Communication should not only be made ,but it should appear to have been made

a) True

b) False

c) Partly true

d) Partly false

84.One of the essential elements of good communication is …………..

a) Pronunciation

b) Feedback

c) Language


85.You can get a job through

a) Campus recruitment

b) An employment agency

c) A Company Employment Office

d) All of the above

86.A worker may seek reinstatement in a ……………if the employer acts against the terms of

appointment

a) Labour court

b) High court

c) Supreme court

d) All of the above

87……………………may be defined as invitation to submit “bids to provide such goods/services at

quoted prices and subject to stated conditions”

a) Circular notices




b) Tender notices

c) Obituary notices

d) All of the above

88.In the ………….copy, the audience must be exposed to the communication

a) Statement

b) Advertisement

c) Entertainment


89.You may advertise a vacancy under …………

a) Situation wanted

b) Situation vacant

c) For sale

d) Business offers

90.The space for advertisement is measured in units of ……………..

a) Column/cms

b) Column/ms

c) Row/cms

d) Row/ms

91.Urgency to communicate a matter may arise due to

a) Exigencies

b) Personal

c) Official

d) All of the above

92.E-mail is the result of ……………..experiment

a) English

b) American

c) Indian

d) Scotish

93.SMS stands for

a) Short mailing service

b) Short messaging service

c) Some mail service

d) some messaging service

94.Whether it is a better practise to hand over the invitation personally to the invitee

a) Yes




b) No

c) Sometimes


95.A telegraph department employee has no means to identity whether the telegram is to be

processed immediately or in the normal course

a) True

b) False

c) Partly true

d) Partly false

96.The full form of PRO is

a) Private relationship officer

b) Private relations officers

c) Public relations officer


97. Essential of good press release are

a) Factual information

b) News value

c) Brief

d) All of the above

98.One cannot exchange opinions from a press release altogether.Does the statement hold true

a) Yes

b) No

c) Partly true

d) Partly false

99. A press release about the …………will have a greater chances of inclusion in an economic paper

or a business channel than in a general newspaper or entertainment channel

a) Release of new movie

b) Launch of new cosmetic product

c) Imposition of anti -dumping duty


100.Which of the following are the key language points of the press release and public notices

1. Clarity

2. Brevity

3. News worthiness

4. Freedom from colloquialism

a) 1,2,4




b) 2,3,4

c) None of the above

d) All of the above

Ques Ans ques ans ques Ans ques ans

1 D 26 A 51 B 76 C

2 C 27 A 52 B 77 A

3 C 28 B 53 A 78 C

4 B 29 D 54 A 79 C

5 D 30 D 55 B 80 B

6 C 31 B 56 B 81 D

7 D 32 D 57 C 82 B

8 D 33 D 58 C 83 A

9 A 34 B 59 B 84 B

10 B 35 A 60 A 85 D

11 B 36 B 61 D 86 A

12 C 37 D 62 B 87 B

13 C 38 B 63 B 88 B

14 D 39 D 64 B 89 B

15 C 40 D 65 D 90 A

16 D 41 A 66 B 91 D

17 D 42 C 67 D 92 B

18 B 43 D 68 C 93 B

19 D 44 B 69 B 94 A

20 D 45 D 70 B 95 B

21 B 46 C 71 A 96 C

22 D 47 D 72 B 97 D

23 C 48 C 73 C 98 A

24 A 49 D 74 C 99 C

25 C 50 C 75 D 100 D




TEST PAPER 11

1.It deals with future and involves forecasting

a) Planning

b) Organising

c) Forecasting

d) Leadership

2.Certainty,risk and uncertainity are the three possible conditions of

a) Decision making

b) Planning

c) Risk management


3.”Personnel management is the recruitment ,selection ,development utilisation ,compensation

and motivation of human resources by the organization”. Who gave the above definition

a) Edwin B. Flippo

b) Megginson

c) French Wendell

d) Jucius Michael




4.Which of the following is not a similarity between HRM and Personnel management

a) Both models emphasise the importance of integrating personnel/HRM

b) Both models emphasize the importance of individuals fully developing their abilities for

their own personal satisfaction to make their best contribution to organisational success

c) Both models identify placing the right people into the right jobs as an important means of

integrating personnel/HRM practise with organisational goals

d) Both model deals with monetary satisfaction of employees

5.”Unity of command cannot exist without unity of direction ,but does not flow from it “.This

statement was given by

a) Henry fayol

b) Fredrick taylor

c) Koontz O Donell


6.The guiding and directing efforts of employees and other resources to accomplish stated work

outputs is known as

a) Leadership

b) Supervision

c) Training

d) Motivation

7.From which Latin word ,the word motivation has been derived which means to move

a) Mauve

b) Prole

c) Movere

d) Manuscriptum

8.What is said to be the nature of selection process

a) Positive

b) Negative

c) Neutral


9.Which of the following is incorrect regarding control

a) Controlling is backward looking

b) Controlling exists at every management level

c) Controlling is a continuous activity

d) Purpose of controlling is positive

10.A budget is frequently prepared to combine all other budgets in a summary form .it is known

as




a) Sales budget

b) Purchase budget

c) Cash budget

d) Master budget

11.Which of the following is not an example of traditional control devices

a) Budgetary control

b) Standard costing

c) Financial ratio analysis

d) Zero based budgeting

12.Transactional analysis was developed by

a) Dr.Wilder Penfield

b) Eric Berne

c) Edwin B Flippo


13.The two factor theory also known as Hygiene theory was developed by

a) Fredrick Herzberg

b) McGregor

c) Maslow

d) George Terry

14.Crosswise communication is also known as communication

a) Vertical

b) Horizontal

c) Diagonal


15.”The right to give orders and exact obedience “is known as

a) Direction

b) Authority

c) Responsibility

d) accountability

16.The process by which an organisation deals with a major event that threatens to harm the

organization ,its stake holder or the general public is known as

a) stress management

b) crisis management

c) TQM





17.It is an approach that organization use to improve their internal processes and increase

customers satisfaction

a) TQM

b) Stress management

c) MBO

d) Change management

18.Identification of opportuinities and avoiding or mitigation losses is called

a) Risk management

b) Stress management

c) Change management

d) Co-ordination

19.It refers to all those business activities which involves cross border transactions of goods

,services resources between two or more nations

a) International business

b) Domestic business

c) Internal business

d) Noen of the above

20.Overt,implicit ,immediate or deffered are the types of

a) .control

b) Planning

c) Forecasting

d) Resistance

21.Planning process comprises determination and laying down of

1. Objectives

2. Ploicies

3. Procedures

4. Rules

5. Remuneration

a) 1,2,3,5

b) 1,2,3,4

c) 1,2,4,5,

d) 1,3,4,5

22.It refers to superior –subordinate relations throughout the organisation

a) Equity

b) Scalar chain

c) Espirit de corp

d) Order




23.Technical ,human and conceptual are the types of

a) Technical skills

b) Specific skills

c) Managerial skills


24.Policy making is the function of

a) Management

b) Administration

c) Personnel management

d) All of the above

25.It lays down the course of action selected to guide and determine present and future decisions

a) Policy

b) Procedures

c) Programmes

d) Strategy

26.Which of the following is not related with’ business plans’

a) Largely enforced business goals

b) The reasons why they are believed attainable

c) The plan for reaching those goals

d) Changes in perception and branding

27.If you are planning a trip to Kashmir ,have never been there before ,and have not heard about

the weather in Kashmir during winter ,you may be in a predicament as to what clothes to carry

and what precautions to take .What kind of a decision making condition is this ?

a) Certain

b) Uncertain

c) Risk


28.Arrange the various steps of organizing in the correct sequence

1. Identifying

2. grouping

3. delegating

4. establishing relationship

a) 1,2,,3,4

b) 2,1,3,4,

c) 4,3,1,2





29Which of the following is not a principle of decision making

a) Principle of definition

b) Principle of evidence

c) Principle of identity

d) Principle of prudence

30.The principle of unity of command and unity of direction was given by

a) W.F.Taylor

b) Lyndall urwick

c) Henry fayol


31.Which of the following is nto a feature of organizing

a) It is a sub process of management

b) It deals with individual efforts

c) It is based on the principle of division of work

d) It establishes authority –responsibility relationship

32.Which of the following is not a managerial function of a personal manager

a) Planning

b) Compensation

c) Direction

d) Organizing

33. .Which of the following is a barriers to effective delegation

a) Fear of loss of power

b) Personal attitudes

c) Lack of ability to direct well

d) All of the above

34. .Which of the following is an external source of recruitment

a) Transfer

b) Re-hiring

c) Promotion

d) Employment agencies

35. .Which of the following is the third step in process of control

a) Establishment of goals and standards

b) Measurement of actual performance against standards

c) Comparison of actual performance with the standards

d) Corrective acton




36.Behaviouralists and psychologists approach was given by

a) Elton mayo

b) R.C.Dewis

c) Henry Mintzberg

d) A,H Maslow

37.what is the second step in the selection process

a) Checking references

b) Medical examination

c) Receiving applications

d) Employment test

38.Which of the following is known as a “no profit –no loss” situation

a) Break even point

b) Initiating structure

c) Statistical control


39.Which of the following is incorrect regarding control

a) Controlling is backward looking

b) Controlling exists at every management level

c) Controlling is a continuous activity

d) Purpose of controlling is positive

40.’Each individual should be given a particular job to do according to his ability and made

responsible for that ‘which step in the organizing process does the sentence relate to

a) Allotment of duties

b) Identification and grouping of activities

c) Developing relationships

d) Integration of activities

Part B

41.The Society for Business ethics was started in the year

a) 1950

b) 1960

c) 1970

d) 1980

42.Which of the following is not a ‘code of conduct”

a) Code of ethics

b) Code of practices




c) Code of behaviour

d) Code of management

43.Which of the following is known as statements of value and principles that define the purpose

of the organization

a) Code of ethics

b) Code of practices

c) Code of behaviour

d) Code of management

44.Which is the following is a “business practise “towards Government

a) Ensure safety of their money and timely payment of interest

b) Rules and regulations regarding taxes ,duties ,restrictive and monopolistic trade practises

should be adhered to

c) Unscrupulous tactics and methods should be avoided while handling them


45.Which of the following is an unethical business practise

a) Collusion

b) False communication

c) Insider trading

d) All of the above

46.Various organisation like Mumbai Grahak Panchayat , Consumer Society of India etc have been

started by consumer groups to protect the interest of consumers .At which level can this be

executed as a measure to control unethical behaviour

a) At institutional level

b) At government level

c) At society level


47.Which functional area in business ethics is about obeying and adhering to rules and authority

a) Ethics in compliance

b) Ethics in finance

c) Ethics in production


48. A business should have which kind of an approach

a) Profit earning

b) Social responsibility

c) Both a and b

d) Either a and b




49.Which of the following is not a reason for business to act ethically

a) To protect its own interest and of the business community as a whole

b) To meet stakeholder expectations

c) To build trust with key stakeholder groups

d) To not protect their employees and their reputation

50.Companies which are responsive to employees needs have

a) Profits

b) Lower turnover in staff

c) Staff satisfaction

d) Strikes

51.The society for business ethics was started in the year

a) 1960

b) 1970

c) 1980

d) 1990

52.Ethics has become the buzzword in the corporate world because of

a) Globalization

b) Communication explosion

c) Exploitation

d) Both a and b

53.Ethics in compliance means

a) It is about obeying and adhering to rules and authority

b) It deals with the moral principles behind the operation and regulation of marketing

c) It deals with the duties of a company to ensure that products and production processes do

not cause harm


54.State as to why a business should behave ethically

a) To unprotect its own interest and of the business community as a whole

b) To keep its commitment to society act ethically

c) To not meet stakeholder expectations

d) To build distrust with key stakeholder groups

55.Fraudulent asset valuations insider trading ,security fraud leading to manipulation of the

financial markets and executive compensation etc are a part of scope in

a) Production

b) Compliance

c) Finance




d) HR

56.Sarbanes –oxley Act 2002 is named after which of the following experts

a) Aristotle

b) Senator paul Sarbanes

c) Michael Oxley

d) Both a and b

57.Which of the following is a feature of Business ethics

a) Business ethics has a universal application

b) It is relative norm .It differs from business to business

c) Business Ethics is based on well accepted moral and social values

d) All of the above

58.Which of the following is a “business practise” towards Government

a) Ensure safety of their money and timely payment of interest

b) Rules and Regulation regarding taxes ,duties restrictive and monopolistic trade practises

should be adhered to

c) Unscrupulous tactics and methods should be avoided while handling them


59. .Which of the following is not a dimension of Corporate Social Responsibility

a) Economic

b) Legal

c) Voluntary

d) Emotional

60.Measures to improve ethical behaviour of business are framed at which level

a) At institutional level

b) Government level

c) Societal level

d) All of the above

61.identify the incorrect set of words

a) Easy ,simple, light ,effortless,facile,smooth

b) Effort ,exertion ,pains,trouble

c) Elastic,flexible,supple,springy

d) Abundant ,transient ,short lived

62.Which of the following is the antonym of bankrupt

a) Solvent

b) Despair




c) Expensive

d) All of the above

63.The study and collection of postage stamps is called

a) Vacillate

b) Despair

c) Expensive

d) All of the above

64.The part of speech that is used to name or identify a person,place,thing ,quality or action is

known as

a) Adjective

b) Noun

c) Pronoun

d) Adverb

65.The notices that provide news about people who have just passed away is called

a) Précis

b) Obituary

c) Condolence


66.Which of the following is an element of a good advertisement copy

a) The audience must be exposed to the communication

b) The audience must remember or retain the message

c) The audience must act on the advertisement

d) All of the above

67.E-mail is commonly known as

a) E-correspondence

b) E-communication

c) Both a and b


68.Unsolicited or Junk mails are filtered through the option of

a) Spam

b) Attachments

c) Packages


69.The abbreviations ‘bcc” refers to

a) British cricket council




b) Blind carbon copy

c) Blind copper copy


70. The abbreviation “AAR” stands for

a) Annual average risk

b) Annual all return

c) Against all risks

d) Against average Risk

71.Which form is obtained from the Sales Tax Authority

a) Form A

b) Form B

c) Form C

d) Form D

72.The abbreviation ‘ISDN’stands for

a) Integrated system digital network

b) Integrated system Digit Network

c) Integrated satellite digit network

d) Integrated satellite Digital network

73 Public investment in a company is generally in the form of

a) Shares ,debentures and deposits

b) Purchase of goods

c) Money transfer


74.Which of the following is not applicable for telegram composing

a) Time should be written according to the 24 hours clock

b) Sentences are to be divided for the word “STOP”

c) Normal grammar and punctuation may be ignored

d) Block letters must not be used

75.Which facility has mobile telephone provided for sending brief messages instantly

a) SMS

b) Telephone

c) Emails

d) Telegram

76.Office orders have a format similar to that of




a) Representations

b) Advertisements

c) Memorandums

d) Press release

77.Which of the following is not a form of intra –organizational communication

a) Representations

b) Office notes

c) Press release

d) Memorandums

78.Non-payment of premium results in a policy being declared

a) Insured

b) Null and void

c) Dishonoured


79.All business entities viz partnership ,sole proprietorship,corporate houses trusts government

bodies employing more than 20 persons are covered under

a) Insurance cover

b) Employees provident funds

c) Medical cover


80.It is the process by which physical certificates of an investor are converted to an equivalent

number of securities in electronic format and credited in the investor’s account with a Depository

held through Depository participant

a) Dematerialisation

b) Call letter

c) Dividend warrant

d) Rematerialisation

81.Plain language commission insisted that the USP of business English should be its simplicity and

clarity

What is the full form of USP

a) Unique selling proposition

b) Unique simplicity Proposition

c) Unique simplicity programme

d) Unique selling programme

82.Communication is essentially a……………………process

a) One way process




b) Two way process

c) Three way process


83.Facial expressions-Gestures ;eye contact ;nodding the head and Physical appearance are the

form of

a) Verbal communication

b) Non -verbal communication

c) Oral communication

d) Visual communication

84.Inoffensive language is a sure way to:

a) Build goodwill and reputation

b) Break relationships

c) Attract untalented staff

d) All of the above

85.There are several pairs or groups of words that are similar in sound but are different in spelling

and meaning

It is known as

a) Antonyms

b) Synonyms

c) Homonyms


86.Agnostic means

a) One who performs gymnastic feats

b) The action of attacking with provocation

c) Science of the production ,transmission ,reception and effect of sound


87.”A set of forms taken by a verb to indicate the time of the action in relation to the time of the

utterance “is the meaning that the Concise Oxford Dictionary assigns to the word

a) Tense

b) Verb

c) Noun

d) Pronoun

88.A syllable is the minimum rhythmic sound of a spoken language .A word may have one or

more syllables .how many syllables are there in fame ,name ,claim .train

a) 1

b) 2




c) None

d) 3

89.It is used to construct words to clarify meaning .it links words to form a compound word

a) The hyphen (-)

b) Comma(,)

c) Full stop(.)


90.This type of communication flow usually takes place between people of the same status/level of

hierarchy in the organization

a) Downward flow

b) Horizontal flow

c) Vertical flow

d) Upward flow

91.To restore consciousness means

a) Revive

b) Ransack

c) Scribble

d) Vandal

92.It is a morpheme added at the end of a word to form a derivative

a) Prefix

b) Suffix

c) Combination word


93.VAT stands for

a) Value added tax

b) Value addition tax

c) Value abstract tax

d) Value added text

94.It is used to denote possession and other kinds of relationship and contractions of words

a) Comma

b) Full stop

c) The hyphen

d) An apostrophe

95. Alma mater means

a) A school or a college which one has attended




b) A public apology

c) Preliminary matter


96.The proverb”To rob Peter to pay Paul” means

a) Things take time to complete and to mature

b) To harm one person in order to benefit the other

c) You judge a man’s worth by his clothes

d) A man is judged by the sort of friends he has

97.A message sent through …………………….is cheaper than a telegram

a) SMS

b) Fax

c) Letter

d) All of the above

98.RSVP means “respondey s’il vous plait “ and is a world

a) Roman

b) French

c) German


99.In 1965 the Massachusetts instituteof technology was the first to demonstrate the use of the

first email system known as

a) Email

b) Mailbox

c) Test mail

d) Internet

100.WWW stands for

a) Wide world web

b) World wide web

c) Web world wide


Ques Ans Ques ans Ques ans ques ans

1 A 26 D 51 C 76 C

2 A 27 B 52 D 77 C

3 C 28 A 53 A 78 B

4 D 29 D 54 B 79 B

5 A 30 C 55 C 80 A




6 B 31 B 56 D 81 A

7 C 32 B 57 D 82 B

8 B 33 D 58 B 83 B

9 A 34 D 59 D 84 A

10 D 35 C 60 D 85 C

11 D 36 A 61 D 86 D

12 B 37 C 62 A 87 A

13 A 38 A 63 C 88 A

14 C 39 A 64 B 89 A

15 B 40 A 65 B 90 B

16 B 41 D 66 D 91 A

17 A 42 D 67 C 92 B

18 A 43 A 68 A 93 A

19 A 44 B 69 B 94 D

20 D 45 D 70 C 95 A

21 B 46 C 71 C 96 B

22 B 47 A 72 A 97 A

23 C 48 C 73 A 98 C

24 B 49 D 74 D 99 B

25 A 50 B 75 A 100 B




TEST PAPER 12

1. Business Environment is effected by ———————— factors

(a) Internal

(b) External

(c) Both a and b

(d) None of above

2. Environment factor which are beyond the control of individual is known as ———

(a) Internal

(b) External

(c) Both a and b

(d) None of above

3. Change in technology, political factors, demand of population are ——— factors

(a) Internal

(b) External

(c) both a and b

(d) None of above

4. ——— factors affects the organization and not necessary to the whole economy

(a) Micro factor

(b) Macro factors

(c) Both A and B

(d) None of above

5. It is the ————— which tells the purpose of existence of business

(a) Mission

(b) Vision




(c) Both A and B

(d) None of above

6. To develop caliber professionals facilitating good corporate governance is————————— of ICSI

(a) Mission

(b) Vision

(c) Both A and B

(d) None of above

7. Which of the following would have unlimited liability-

(a) Cooperative society

(b) Company

(c) Shareholders

(d) Sole proprietorship

8. Which of the following are the advantages of Sole proprietorship –

(a) Better control

(b) Quick decision

(c) Easy to form and Shut

(d) All of above

9. The affairs of the business is managed by head of the family known as Karta in-

(a) Hindu undivided Family

(b) Partnership firm

(c) Company

(d) Cooperative society

10. What is the maximum strength of HUF-

(a) 20

(b) 10

(c) 50

(d) No limit

11. Mutual agency is the important feature of-

(a) Hindu undivided Family





(c) Company


12. Company is having perpetual succession and work under common seal. This statement is-

(a) True

(b) False

(c) Partly true

(d) Partly false

13. Scale of business determines the –

(a) Size of the business

(b) Capital involved in business

(c) Production of such business

(d) All of above

14. For the goods having artistic features———————— size of enterprise is preferred.

(a) Small scale

(b) Large scale

(c) Corporation

(d) Very large

15. Economical advantages can be taken from-

(a) Small scale production

(b) Large scale production

(c) Both A and B


16. Economies derived from large scale of business are-

(a) Internal

(b) External

(c) Both a and b

(d) None of above

17. Advantages of Multi national companies are-

(a) Funds availability

(b) Provision of employments




(c) Increasing competitions

(d) All of above

18. Financial suitability and job opportunity is the advantages in—————scale of operation.

(a) Small scale

(b) Large scale

(c) Corporation

(d) Very small

19. BPO stands for –

(a) Business process outsourcing

(b) Business public organization

(c) Business private organization

(d) Business people organization

20. Providing permission to use technical know how by parent organization to another individual

is known as-

(a) Franchising

(b) Agency

(c) Marketing

(d) Dealership

21. Sales forecast is difficult in-

(a) Network marketing

(b) E commerce

(c) M commerce

(d) Marketing

22. KPO stands for-

(a) Knowledge process outsourcing

(b) Knowledge public organization

(c) Key public offer

(d) Know potential output

23. PDA, smart phone, computer mediated network are the need in ————————-





(b) E-commerce

(c) M commerce

(d) Marketing

24. B2B, B2C, C2B are the types of –


(b) E-commerce

(c) M commerce

(d) Marketing

25. ————————— is the primary function of management

(a) Planning

(b) Budgeting

(c) Controlling

(d) Organization

26. Choice of production, need of customer, gaining over competitor is —————— level strategy.

(a) Corporate level

(b) Business unit

Practice Test Paper 385

(c) Operational level

(d) All of above

27. SCM stands for –

(a) Supply chain management

(b) Supply chain material

(c) Supply choice material.

(d) Source concept management

28. Film production is the example of –

(a) Low technology job

(b) High technology job

(c) Complex job

(d) Both B and C

29. Financial management comprises of –




(a) Financial decision

(b) Investment decision

(c) Dividend decision

(d) All of above

30. Selling + customer satisfaction =


(b) E-commerce

(c) M commerce

(d) Marketing

31. Principle of equitable and good is ———— part of law

(a) Natural

(b) Positive

(c) Sociological

(d) Realistic

32. Hindu and Mohammedan law is ——-

(a) Personal law

(b) Principle law

(c) Customary law

(d) Historical law

33. Company’s ——- is optional as per Companies (Amendment) Act, 2015

(a) Seal

(b) Common seal

(c) Stamp

(d) None of above

34. Company has —————— Succession

(a) Longer

(b) Continue

(c) Perpetual

(d) Limited

35. ———— have homogeneous Member




(a) Hindu undivided family


(c) Company

(d) Cooperatives

36. If company do not follow the principle of separate legal entity ——————— can be done-

(a) Lifting of corporate veil

(b) Principle of equity

(c) Principle of natural justice

(d) All of above

37. Maximum number of members in private company is——————-

(a) 200

(b) 30

(c) 20

(d) 10

38. Total managerial remuneration in a public company can not be ———— of net profit.

(a) 10%

(b) 11%

(c) 8%

(d) 5%

39. Audit of government company is done by C&AG this statement is –

(a) True

(b) False

(c) Partly true

(d) Partly false

40. Association not for profit has to take ————— from central government.

(a) License

(b) Approval

(c) Grant

(d) Certificate

41. —————————— is the first step for formation of company.




(a) Promotion

(b) Publicity

(c) Incorporation

(d) Business commencement

42. ———————— company enjoys the number of privileges.

(a) Public company

(b) Private company

(c) Multi national company

(d) Banking company

43. Any corporate body/ Association of firm can be appointed as director of the company. This

statement is-

(a) True

(b) False

(c) Partly true

(d) Partly false

44. Any increase in the number of director beyond the maximum limit provided in articles can be

done by-

(a) Share Holders

(b) Managing Director

(c) Manager

(d) Registrar of company

45. Gap between two Annual general meetings can not be exceed ———— months

(a) 12 months

(b) 6 months

(c) 15 months

(d) None of above

46. Disqualification for being director of company is defined under section ———— of the

Companies Act, 2013

(a) 164

(b) 275

(c) 252




(d) 226

47. First directors are usually name in ———————— of company.

(a) Articles of company

(b) Memorandum of company

(c) Both A and B

(d) None of above

48. ——————— director is appointed in the place of original director in case of his absence.

(a) Alternate director

(b) Additional director

(c) Substitute director

(d) All of above

49. Maximum Number of members in case of a public company is ———————

(a) Unlimited

(b) 200

(c) 1000

(d) 5000

50. Casual vacancy is filled up by ———————-

(a) Board of Director

(b) Shareholders

(c) Central government

(d) Company law board

51. Removal of director can be done by –

(a) Shareholders

(b) Central government

(c) Company law board

(d) All of above

52. Minimum number of member(s) for one person company is/are _________________

(a) 1

(b) 2

(c) 3




(d) No limit

53. ——————— is the essential feature for formation of partnership.

(a) Agreement

(b) Memorandum

(c) Relation

(d) All of above

54. True test of partnership is –

(a) Mutual agency

(b) Mutual relation

(c) Mutual Communication

(d) Sharing of profit

55. Minor can be a partner in a new formed firm. This statement is –

(a) True

(b) False

(c) Partly true

(d) Partly false

56. There are ————— type of partnership –

(a) 1

(b) 2

(c) 3

(d) No such type

57. One can be the member of HUF by————

(a) Agreement

(b) Birth

(c) Permission

(d) All of above

58. Goodwill is the ———————— of firm

(a) Property

(b) Asset

(c) Liability




(d) All of above

59. The Indian Contract act extends to –

(a) Whole of india

(b) Whole of india except jammu and Kashmir

(c) Jammu and Kashmir

(d) None of above

60. General principle of Indian contract act is defined under section –

(a) 1 to 75

(b) 1 to 70

(c) 124 to 236

(d) 124 to 238

61. Agreement + enforceability=

(a) Contract

(b) Offer

(c) Invitation to offer

(d) Legal relation

62. Catalogue of price in shop or store is the example of-

(a) Contract

(b) Offer

(c) Invitation to offer

(d) Advertisement

63. Leading case which defined the basic principle of General offer –

(a) Carllil vs Carbolic Smoke Ball and Company

(b) Lalman Shukla vs Gauri Dutt

(c) Cox vs Hickman

(d) Belfour vs Belfour

64. Consideration need to be adequate, this statement is –

(a) True

(b) False

(c) Partly true




(d) Partly false

65. Agreement which is not enforceable by law is-

(a) Void agreement

(b) Voidable agreement

(c) Voidable contract

(d) Illegal agreement

66. Damage can be remote, this statement is –

(a) True

(b) False

(c) Partly true

(d) Partly false

67. Injunction order is issued by –

(a) Court

(b) Company

(c) Company law board

(d) None of above

68. Contract with undue influence and coercion is –

(a) Voidable contract

(b) Void contract

(c) Illegal contract

(d) Void agreement

69. Goods are defined under section-

(a) 2(7) of the Sales of Goods Act, 1930

(b) 2(5) of the Sales of Goods Act, 1930

(c) 2(4) of the Sales of Goods Act, 1930

(d) 2(1) of the Sales of Goods Act, 1930

70. Agreement to sale is in relation to——————— goods

(a) Existing goods

(b) Future Goods

(c) Specific goods





71. The word entrepreneurship is derived from the French word –

(a) Entreprendre

(b) Entreprendur

(c) Entrepreneurde

(d) Entropre

72. “Entrepreneur is someone who actually searches for change responds to it and exploits those

changes as an opportunity“ this statement is given by –

(a) Peter Drucker

(b) H.N. Hansen

(c) Koontz o’donnel

(d) Joseph Schumpeter

73. Which one of the following does not include in personal attribute of an entrepreneur –

(a) Dedication

(b) Passion

(c) Flexibility

(d) Biasness

74. To start ones new business, entrepreneur needs to leave——————and enter into ————————

—–

(a) Safe, unsafe

(b) Comfort zone, twilight zone

(c) Twilight zone, comfort zone

(d) Unsafe zone, safe

75. Principle of innovation was given by-

(a) Steve jobs

(b) H.N. Hansen



76. PESTLE is part of which type of environment-

(a) Micro




(b) Macro

(c) External

(d) Business

77. T in SWOT stands for –

(a) Threats

(b) Tasks

(c) Tactics

(d) Technology

78. Industry analysis is given by which of the following-

(a) Porter

(b) H.N. Hansen



79. Which of the following is an economic factor –

(a) Exchange rates

(b) Licensing regulations

(c) Labour courts

(d) Employment needs

80. Sell—————— and not——————— is the statement given by steve jobs.

(a) Company, customers

(b) Desire, wants

(c) Product, dreams

(d) Dreams, product

81. Which of the following, entrepreneurship does not offer –

(a) Independence and freedom

(b) Recognition

(c) Opportunity of being own boss

(d) Less income

82. Bill gates is considered which of the type of entrepreneur –

(a) Visionary




(b) Superstar

(c) sustainer

(d) idealist

83. Charm and high energy relates to which of the following –

(a) Visionary

(b) Superstar

(c) sustainer

(d) idealist

84. Intrapreneur faces competition from –

(a) Entrepreneurs

(b) Managers

(c) Employees within the organisation

(d) All the above

85. Which of the following is not the characteristics of entrepreneurship

(a) Innovation

(b) Organising skills

(c) Indifference approach

(d) Risk taking

86. Entrepreneurship work for _______

(a) Profits

(b) Salary

(c) Remuneration

(d) Commission

87. which of the following is not technique is not used in business environment scanning?

(a) PESTEL analysis

(b) Industry analysis

(c) Swot Analysis

(d) Government analysis

88. Ongoing scanning at an almost unconscious level is_____

(a) Directed scanning




(b) Active scanning

(c) Passive scanning

(d) Indirect Scanning

89. Which of the following does not include in marketing assessment process –

(a) Defining the problem

(b) Fstering ideas

(c) Feedback

(d) Designing a plan

90. Business plans are only for start up companies, it is a –

(a) Myth

(b) Reality

(c) Both A and B


91. Who claimed that entrepreneurship requires no ordinary skill –

(a) Mill

(b) Smith

(c) Ricardo


92. Alfred marshall gave the necessity of entrepreneurship in-

(a) 1880

(b) 1867

(c) 1890

(d) 2002

93. Employees relate to which of the following –

(a) Work smart

(b) Work hard

(c) Do not wok

(d) Work all day all night

94. Overcoming the obstacles of right attitude in entrepreneurship is not matter of which of the

following-




(a) Desire

(b) Discipline

(c) Both A and B

(d) Fraudulent

95. Peter drucker suggested entrepreneurship is –

(a) Science

(b) Art

(c) Profession

(d) Practice

96. Entrepreneurship should always ready to accept the –

(a) Modernization

(b) Expansion

(c) Diversification


97. Introduction of new products and services and adding it to product line is known as –

(a) Modernization

(b) Expansion

(c) Diversification


98. Entrepreneur should have access to –

(a) Right skill

(b) Right environment

(c) Smart capital


99. Which of the following is not the stage of entrepreneur firm-

(a) Seed

(b) Start

(c) Growth

(d) Final stage

100. Which of the following is needed to grow the entrepreneurship –




(a) Media

(b) Society

(c) Government

(d) All of above





1 C 21 A 41 A 61 A 81 D

2 B 22 A 42 B 62 C 82 A

3 B 23 C 43 B 63 A 83 B

4 A 24 B 44 A 64 B 84 C

5 A 25 A 45 C 65 A 85 C

6 A 26 B 46 A 66 B 86 A

7 D 27 A 47 A 67 A 87 D

8 D 28 D 48 A 68 A 88 D

9 A 29 D 49 A 69 A 89 C

10 D 30 D 50 A 70 B 90 A

11 B 31 A 51 B 71 A 91 A

12 A 32 A 52 A 72 A 92 C

13 D 33 B 53 A 73 D 93 B

14 A 34 C 54 A 74 B 94 D

15 B 35 A 55 B 75 A 95 D

16 C 36 A 56 B 76 B 96 D

17 D 37 A 57 B 77 A 97 C

18 B 38 B 58 A 78 A 98 D

19 A 39 A 59 B 79 B 99 D

20 A 40 A 60 A 80 D 100 D




TEST PAPER 13

1. The primary/fundamental function of management is –

(a) Planning

(b) Controlling

(c) Organisation

(d) Direction

2. The father of modern management theory is –

(a) W.F. Taylor

(b) Henri Fayol

(c) Koontz o Donnel

(d) Samulson

3. Scientific Management is the contribution of –

(a) W.F. Taylor

(b) Henri Fayol

(c) R.C. Davis

(d) Lyndall Urwick

4. Superior-subordinate theory was given by –

(a) Henri Fayol

(b) V.A. Graicunas

(c) Koontz O’Donnel

(d) Joseph jecard

5. Decentralisation and delegation of authority are the same thing –

(a) True

(b) False




(c) Partly true

(d) Partly false

6. The word “management” derives its origin from a Greek word –

(a) Nomo

(b) Verh

(c) Xus

(d) Gest

7. MBO stands for –

(a) Management by Option

(b) Management by Objectives

(c) Management by Objection


8. Combination of functional departments with product or project organization is known as –

(a) Project Organisation

(b) Matrix Organisation

(c) Line and Staff Organisation

(d) Functional Organisation

9. The recruitment, selection, development, utilization, compensation and motivation of human

resources by the organization is known as –

(a) Training Department

(b) Personnel Management

(c) Staff Management

(d) Line and Staff Management

10. Ranking, Rating scale, Check list are the methods of –

(a) Transfer Management

(b) Performance Appraisal

(c) Promotional Methods

(d) Job Description

11. Four kinds of management systems as leadership styles was given by –

(a) Blake and Mouton




(b) Rensis Likert

(c) Mcgregor

(d) Hertz berg

12. The process of searching for prospective employees and encouraging them to apply for the

jobs in an organization is known as –

(a) Selection

(b) Placement

(c) Recruitment

(d) Training

13. POSDCORB was coined using the initial letters of management function by –

(a) Koontz O’Donnel

(b) Luther Gulick

(c) Peter F. Drucker

(d) Henry Mintzberg

14. The Hierarchy theory of needs was given by –

(a) A.H. Maslow

(b) Mc Gregor


(d) None of above

15. Zero Base Budgeting was first introduced in –

(a) Japan

(b) USA

(c) India

(d) China

16. The essential skills which every manager needs for doing better management is known as –

(a) Leadership Skills

(b) Teaching Skills

(c) Professional Skills

(d) Managerial Skills

17. Principle of Espirit de Corps was given by –




(a) R.C. Devis

(b) V.A. Graicunas


(d) Henry Fayol

18. A general enduring statement of the intent of business which reflects the belief and

philosophy of management

is known as –

(a) Mission

(b) Vision

(c) Objectives


19. Policies are the guide to thinking in –

(a) Organizing

(b) Decision making

(c) Forecasting

(d) Planning

20. It involves looking ahead and projecting the future course of events –

(a) Organizing

(b) Forecasting

(c) Controlling

(d) Co-ordination

21. The economic environment around us consists of which basic entities –

(a) Households (the consumers),

(b) Firms (the producers)

(c) Government (the co-coordinator)


22. The definition of management “Getting things done through and with people” was coined by

–

(a) Luther Gulick

(b) Henry Fayol




(c) Koontz and O’Donnell


23. Management is an inter-disciplinary _______________ which draws freely from other disciplines

such as economics, sociology and psychology –

(a) Art

(b) Profession

(c) Science


24. Top management is generally required to spend more time in planning, the middle level on

organising and the lower level managers on –

(a) Directing

(b) Organising

(c) Staffing


25. Planning process comprises determination and laying down of:

(a) Objectives

(b) Policies & procedures

(c) Strategies


26. He argued that successful change in organizations should follow three steps: unfreezing the

status quo,movement or changeover to a new state, and refreezing the new change to make it

permanent. Who was he?

(a) Koontz

(b) Luther Gulick

(c) Mintzberg

(d) Kurt Lewin

27. ‘Acts of God’ are the result of –

(a) Natural Disasters

(b) Violence

(c) Technological crisis

(d) Rumours




28. It owes its genesis to post war research of American management consultants like Drs. Joseph

Juran and W. Edwards Dening:

(a) MBO

(b) TQM

(c) Crisis

(d) Stress Management

29. Risk cannot be managed unless it is first _____________

(a) Assessed

(b) Identified

(c) Measured

(d) Evaluated

30. Which principle emphasises the need for teamwork and the importance of effective

communication –

(a) Stability of Tenure of Personnel

(b) Espirit de Corps

(c) Scalar Chain

(d) Equity

31. Interpersonal, Informational and Decisional roles are the three phases of a manager’s work

role. This was given by –

(a) Henry Mintzberg

(b) Fayol

(c) Koontz and O’Donnell

(d) Luther Gulick

32. It is a process of transformation where the old system can no longer be maintained –

(a) Crisis

(b) Stress Management

(c) TQM

(d) MBO

33. It is used to collectively describe all commercial transactions i.e., private and governmental,

sales, investments, etc. that take place between two or more regions, countries and nations

beyond their political boundary –




(a) International business

(b) Ordinary Business

(c) Government Business

(d) Political Business

34. It is instantaneous, self-correcting and forward-looking –

(a) Ideal control

(b) Ideal Planning

(c) Ideal Coordination


35. The operative function of a Human Resource Manager means –

(a) Those tasks or duties which are specifically entrusted to the personnel department under the

general supervision of personnel manager

(b) Those that are the basic functions of planning, organising, directing and controlling in relation

to his department

(c) Personnel/Human resource manager has specialised education and training in managing

human relations. He is an expert in his area and so can give advise on matters relating to human

resources of the organization


36. Non-traditional control devices are based on –

(a) Non-scientific methods

(b) Scientific methods

(c) Conventional methods


37. It has its origins from the field of corporate insurance –

(a) Stress Management

(b) Management

(c) Crisis Management

(d) Risk Management

38. Modern control system is ___________ rather than work or job oriented –

(a) Worker-focused

(b) Job focused




(c) Incentive focused


39. Blue-collar workers are –

(a) Working on machines and engaged in loading, unloading

(b) Clerical employees

(c) Executive employees


40. Which Institute has defined a budget as “a financial and/or quantitative statement prepared

prior to a defined period of time of the policy to be pushed during that period for the purpose of

attaining a good objective” –

(a) The Institute of Cost and Management Accountants of England

(b) The Institute of Cost and Management Accountants of England and Wales

(c) The Institute of Cost and Management Accountants of Wales


41. The term ‘business ethics’ came into common use in year –

(a) 1950

(b) 1960

(c) 1970

(d) 1980

42. Business Ethics has a __________ application –

(a) Universal

(b) Natural

(c) Practical


43. Ethics has become the buzzword in the corporate world because of –

(a) Globalization

(b) Modernization

(c) Expansion

(d) Liberalization

44. A set of principles and expectations that are considered binding on any person who is member

of a particular group is known as –




(a) Code of ethics

(b) Values

(c) Ethics


45. The Sarbanes-Oxley Act of 2002 made it important for businesses to have an –

(a) Ethics code

(b) Code of conduct

(c) Code of practice

(d) Business ethics

46. Scope of Ethics in Business is in which area(s) –

(a) Compliance

(b) Finance & HR

(c) Marketing and Production


47. Measures to improve ethical behaviour of business are framed at which level –

(a) Institutional level

(b) Government level

(c) Societal level


48. Which of the following Act made code of ethics mandatory for all organizations –

(a) The Companies Act, 1956

(b) The Sarbanes-Oxley Act, 2002

(c) The Partnership Act, 1932


49. Which of the following is a feature of Business Ethics –

(a) Business Ethics has a universal application

(b) It is a relative norm. It differs from business to business.

(c) Business Ethics is based on well accepted moral and social values

(d) All the above

50. An expert who is confidentially available to solve the ethical dilemmas is known as –




(a) Ethic Coach

(b) Ethics Trainer

(c) Ethics Guide


51. Business Ethics is based on well accepted –

(a) Moral and social values

(b) Social values only

(c) Moral values only


52. The idea of business ethics caught the attention of academics, media and business firms by the

end of the –

(a) First Word War

(b) Second World War

(c) Cold War


53. Corporate entities are legally considered as persons in –

(a) USA

(b) Japan

(c) China


54. Business Ethics cannot be enforced by –

(a) Governance

(b) Businesses

(c) Law


55. Business Ethics is a code of conduct which businessmen should follow while conducting their

–

(a) Normal activities

(b) Special activities

(c) Specific activities





56. Compliance is about obeying and adhering to –

(a) Rules and authority

(b) Discipline

(c) Laws


57. Administrative corruption include “gifts” to the –

(a) Factory Inspector

(b) Boiler Inspector

(c) Pollution Control Board Inspectors


58. Which of the following is a reason for business not behaving ethically (a) To protect its own

interest and of the business community as a whole

(b) To keep its commitment to society to act ethically.

(c) To meet stakeholder expectations.

(d) To not protect their employees and their reputation

59. Ethics in production means –

(a) It deals with the duties of a company to ensure that products and production processes do not

cause harm

(b) It deals with the moral principles behind the operation and regulation of marketing

(c) It covers those ethical issues arising around the employer-employee relationship, such as the

rights and duties owed between employer and employee


60. They are concerned about ethics, social responsibility and reputation of the company in which

they invest –

(a) Employees

(b) Employers

(c) Investors

(d) Students

61. I, we, you, he, she, it, we, they, me, him, her, us, them are examples of –

(a) Possessive Pronoun




(b) Relative Pronoun

(c) Collective Pronoun

(d) Personal Pronoun

62. Identify the correct spelling –

(a) Occasion

(b) Occassion

(c) Ocassion

(d) Ocasion

63. The idiom ‘To arrest someone’s notice’ means –

(a) Cast a slur upon

(b) Catch somebody’s eye

(c) To catch a Tartar

(d) To come off with flying colours

64. What is meant by ‘ab initio’ –

(a) List of additions

(b) From the origin

(c) From the beginning.

(d) According to value

65. A job application letter is said to be similar to a –

(a) Purchase Letter

(b) Sales Letter

(c) Public Notice


66. A sales letter drafted for a large number of people is known as –

(a) Sales manual

(b) Sales Order

(c) Sales Enquiry

(d) Sales Circular

67. Which of the following is a system of interlinked hypertext documents accessed via the Internet

–




(a) Intranet

(b) Extranet

(c) World Wide Web


68. Which of the following protocol is used by the web –

(a) HTTP

(b) HTPT

(c) TTPH

(d) TPTH

69. Which of the following is a web browser –

(a) Google Chrome

(b) Internet Explorer.

(c) Firefox

(d) All the above

70. It is a document giving full details of goods being shipped, prepared by the exporter and sent

to the importer –

(a) Invoice

(b) Sales Receipt

(c) VAT

(d) Sales Tax

71. The abbreviation “E&OE” stands for –

(a) Errors and Omitted Errors

(b) Expected and Omitted Errors

(c) Errors and Omissions Excepted

(d) Exceptions and Omissions

72. These are demanded when buyer returns goods already paid for on grounds of, say,

unacceptable quality –

(a) Debit Notes

(b) Credit Notes

(c) Sales Letters




(d) Statement of Accounts

73. Telegrams may also be communicated over the telephone and this is called –

(a) Telephonogram

(b) Phonogram

(c) Telegram-phone


74. Fax is the abbreviated form of the word –

(a) Facsimile

(b) Faximile

(c) Fac

(d) Simile

75. Telex machines allow exchange of –

(a) Photos

(b) Text

(c) Email messages


76. When an organisation needs to share important information with members of general public

such as a change of name or representative, it drafts a –

(a) Office Orders

(b) Office Notes

(c) Representations

(d) Public Notice

77. RSVP is the abbreviation of the French words “respondey s’il vous plait” and means –

(a) Please come

(b) Please

(c) Please reply

(d) Invitation

78. A press release should have which of the following features in order to be selected –

(a) Detailed

(b) Factual




(c) Lengthy

(d) Unsuitable

79. These are used for disseminating information to a large number of employees within the

organization –

(a) Office Circulars

(b) Representations

(c) Public Notice


80. The abbreviation ‘ESOP’ stands for –

(a) Employee Stock Option Plan

(b) Employee Share Option Plan

(c) Employee Share Option Programme

(d) Employee Stock Option Programme

81. Communication is an _________ process –

(a) Ongoing

(b) One way

(c) Three Way Process


82. Memo, Report, Office order, Circulars, Staff Newsletters, Fax etc are the form of –

(a) Non verbal Communication

(b) Written Communication

(c) Oral Communication

(d) Audio Visual Communication

83. It is a word opposite or contrary in meaning to another word. It means –

(a) Antonyms

(b) Synonyms

(c) Homonyms


84. Acoustics means –

(a) One who performs gymnastic feats




(b) The action of attacking with provocation

(c) Science of the production, transmission, reception and effect of sound


85. The part of speech (or word class) that is used to name or identify a person, place, thing,

quality, or action is known as –

(a) Noun

(b) Verb

(c) Adjective


86. A _____________ Sentence contains only one finite verb and can make only one complete

statement –

(a) Simple

(b) Complex

(c) Compound


87. To transform into a purer or idealized form means –

(a) Sublimate

(b) Vandal

(c) Ransack

(d) Revive

88. A syllable is the minimum rhythmic sound of a spoken language. A word may have one or

more syllables. How many syllables are there in retribution, satisfaction, transatlantic?

(a) One

(b) Two

(c) Three

(d) Four

89. These are those prefixes that denote the meaning of removing something or depriving

something or someone –

(a) Reversative Prefix

(b) Derivative Prefix

(c) Pejorative Prefix




(d) Place Prefix

90. It separate or enclose subordinate clauses and phrases in sentences –

(a) The Comma (,)

(b) The Hyphen (-)

(c) Full Stop (.)


91. The latin word “bona fide” means –

(a) Strange

(b) Good faith

(c) Colleague


92. The proverb “an aged lover” means –

(a) A fool and his money are soon parted

(b) There is no fool like an old fool

(c) One man’s meat is another man’s poison

(d) It never rains but pours

93. Which of the following is applicable in case of Telegrams –

(a) The message must be detailed

(b) Time should be written according to the twenty four hour clock

(c) Normal grammar and punctuation may always be followed

(d) Block letters must not be used

94. This began as an American experiment in computer communication technology during the

cold war and has revolutionised the world –

(a) Fax

(b) Emails

(c) Telegrams


95. BCC stands for –

(a) Blind Copy Carbon

(b) Before Carbon Copy




(c) Blind Carbon Copy

(d) Before Copy Carbon

96. Who is called the ‘father of email’ and is credited with its invention –

(a) Aristotle

(b) Tomlinson

(c) Merriam


97. The following is an example of which type of letter –

Dear Pradeep,

I was delighted to learn that your work on cryogenic engine has been appreciated by the Indian

Space Research Organisation. I am confident that it will be possible to manufacture these engines

indigenously and our dependence on other countries will end soon.

I feel proud of your achievement and send you my best wishes for the future.

(a) Congratulatory Letter

(b) Sympathy Letter

(c) Thank you Letter

(d) Condolence Letter

98. What is the difference between “enquiry” and “inquiry” –

(a) Enquiry means asking a question, and inquiry is a formal investigation.

(b) The prefix ‘en’ comes from French, and ‘in’ from Latin.

(c) Enquiry is a request for truth, knowledge or information, and inquiry is an investigation into

something.


99. It is a document giving full details of goods being shipped, prepared by the exporter and sent

to the importer –

(a) Bill

(b) Invoice

(c) Receipt


100. It is a document that outlines the contents of a forthcoming meeting –

(a) Meeting




(b) Agenda

(c) Minutes



1 A 21 B 41 C 61 D 81 A

2 B 22 D 42 A 62 A 82 B

3 A 23 C 43 A 63 B 83 A

4 B 24 A 44 A 64 C 84 C

5 B 25 D 45 A 65 B 85 A

6 A 26 D 46 D 66 D 86 A

7 B 27 A 47 D 67 C 87 A

8 B 28 B 48 B 68 A 88 D

9 B 29 B 49 D 69 D 89 B

10 B 30 B 50 A 70 A 90 A

11 B 31 A 51 A 71 C 91 B

12 C 32 A 52 C 72 B 92 B

13 B 33 A 53 A 73 B 93 B

14 A 34 A 54 C 74 A 94 B

15 B 35 A 55 A 75 B 95 C

16 D 36 B 56 A 76 D 96 B

17 D 37 D 57 D 77 C 97 A

18 A 38 A 58 D 78 B 98 D

19 B 39 A 59 A 79 A 99 B

20 B 40 B 60 C 80 A 100 B




TEST PAPER 14

1. Law is the command of the sovereign, Law is an instrument to regulate human behaviour,

Be it social life or business life.

a. Jack Welch

b. John Welch

c. Johnsons

d. Robin curry

2. ………….. defined Law as “the art or science of what is equitable and good.”

a. Cicero

b. Justinian’s Digest

c. Ulpine

d. All of the above

3. ……………..said that Law is “the highest reason implanted in nature.”

a. Cicero


c. Ulpine

d. All of the above

4. ……………….defines Law as “the standard of what is just and unjust.”

a. Cicero


c. Ulpine

d. All of the above

5. ‘Law’ is a part of “Dharma”.

a. True

b. False

c. Partly true

d. Partly false

6. ………….the prominent modern natural law thinker, defines law as “the body of principles

recognised and applied by the State in the administration of justice.”

a. Salmond,




b. Vinogradoff

c. Austin

d. Duguit

7. ………….described Law as “a set of rules imposed and enforced by society with regard to the

attribution and exercise of power over persons and things.”

a. Salmond,

b. Vinogradoff

c. Austin

d. Duguit

8. ………………..theory of law can be summarised as follows:

– That law is a matter of unconscious and organic growth. Therefore, law is found and not

made.

– Law is not universal in its nature. Like language, it varies with people and age.

– Custom not only precedes legislation but it is superior to it. Law should always conform to

the popular consciousness.

– Legislation is the last stage of law making, and, therefore, the lawyer or the jurist is more

important than the legislator.

a. Savigny’s

b. Austin

c. Duguit

d. Salmond,

9. According to…………………, “The word ‘law’ has come down to us in close association with two

notions, the notion of order and the notion of force”.

a. Austin

b. Duguit

c. Salmond,

d. Sir Henry Maine

10. ………..defines law as “essentially and exclusively as social fact.”

a. Austin

b. Duguit

c. Salmond,

d. Sir Henry Maine

11. ………………defines law as “the form of the guarantee of the conditions of life of society,

assured by State’s power of constraint”.

a. Austin

b. Duguit

c. Salmond,

d. Ihering

12. According to ……………“Law is the aggregate of rules set by man as politically superior, or

sovereign, to men as political subject.”

a. Austin

b. Duguit




c. Salmond,

d. Ihering

13. Law is static.

a. True

b. False

c. Partly true

d. Partly false

14. The principal sources of Indian law are:

a. Customs or Customary Law

b. Judicial Decisions or Precedents

c. Statutes or Legislation

d. All of the above

15. General custom is the custom which prevails in some definite locality and constitutes a

source of law for that place only.

a. True

b. False

c. Partly true

d. Partly false

16. ……………………..are those customs which are non-obligatory and are observed due to the

pressure of public opinion. These are called as “positive morality”.

a. Customs without sanction

b. Customs having sanction

c. Both a and b


17. ………………………….are those customs which are enforced by the State. It is with these customs

that we are concerned here.

a. Customs without sanction

b. Customs having sanction

c. Both a and b


18. The doctrine of …………………..means “adhere to the decision and do not unsettle things which

are established”.

a. Stare decisis

b. Ratio Decidendi

c. Both a and b


19. The underlying principle of a judicial decision, which is only authoritative, is termed

as……………..

a. Stare decisis

b. Ratio Decidendi

c. Both a and b





20. ……………………….says that ratio decidendi is nothing more than the decision based on the

material facts of the case.

a. Prof. Goodhart

b. Prof Jain

c. Prof Gaikar

d. Prof Oswal

21. Obiter Dicta is ……………….

a. Latin word

b. Greek word

c. French word

d. Indian word

22. In a High Court, a Bench of two judges is known as

a. Smallest bench

b. Full bench

c. Division bench

d. All of the above

23. In a High Court, a single judge constitutes the ………………….

a. Smallest bench

b. Full bench

c. Division bench

d. All of the above

24. In a High Court, Three or more judges constitute a

a. Smallest bench

b. Full bench

c. Division bench

d. All of the above

25. The expression ‘all courts’ used in Article …………………. refers only to courts other than the

Supreme Court.

a. 142

b. 143

c. 141

d. 156

26. According to Salmond, a ………………is one which is merely the application of an already

existing rule of law.

a. Declaratory and Original Precedents

b. Persuasive Precedents

c. Absolutely Authoritative Precedents

d. Conditionally Authoritative Precedents.

27. The number of original precedents is small but their importance is very great.

a. True

b. False

c. Partly true




d. Partly false

28. A……………………. is one which the judges are not obliged to follow but which they will take

into consideration and to which they will attach great weight as it seems to them to

deserve.



c. Absolutely Authoritative Precedents


29. An …………………is one which judges must follow whether they approve of it or not. Its

binding force is absolute and the judge’s discretion is altogether excluded as he must follow

it. Such a decision has a legal claim to implicit obedience, even if the judge considers it

wrong.



c. Authoritative Precedents


30. A …………………is one which, though ordinarily binding on the court before which it is cited, is

liable to be disregarded in certain circumstances.



c. Authoritative Precedents


31. Common Law is written law of England which is common to the whole of the realm.

a. True

b. False .

c. Partly true

d. Partly false

32. ……………….is related to the commercial activities of the people of the society. It is that branch

of law which is applicable to or concerned with trade and commerce in connection with

various mercantile or business transactions.

a. Administrative Law

b. Criminal Law

c. Civil Law

d. Mercantile or Commercial Law.

33. The main sources of Indian Mercantile Law are:

a. English Mercantile Law

b. Acts enacted by Indian Legislature

c. Judicial Decisions

d. All of the above

34. A custom to be valid be proved to be immemorial but may not be ancient.

a. True

b. False




c. Partly true

d. Partly false

35. The principle of judicial decision which is only authoritative is known as ratio decidendi.

a. True

b. False

c. Partly true

d. Partly false

36. A company may be :

a. Limited by shares

b. Limited by guarantee

c. Unlimited

d. Any of the above

37. Which companies are exempted to add “Ltd” or “Pvt Ltd” at the end of their name?

a. Private

b. Government

c. Defunct

d. Association not for profits

38. Generally rights and obligation of companies are regulated in :

a. AOA

b. MOA

c. Prospectus


39. A director is a:

a. Trustee of the company

b. Agent of a company

c. Both a and b

d. None

40. The term ‘Negotiable Instrument’ is defined in the Negotiable Instrument Act, 1881, under:

a. Section 12

b. Section 13(1)

c. Section 13A

d. Section 2(d)

41. The promissory note must be in :

a. English

b. Writing

c. Local language


42. “A large income is the recipe for happiness I ever heard of “ is stated by :

a. Maslow

b. Hilaire belloc

c. Jane austen quotes

d. Napoleon hills




43. Blend of managerial and entrepreneurial skills are required in an :

a. Entrepreneur

b. Manager

c. Both a and b

d. Intrapreneur

44. The man to coin the word “Intrapreneur”

a. Thomas Malthus

b. Gifford Bentinck

c. Girrord Pinchot

d. Thomas Pogge

45. ……………..is the one to go through minimum income risk.

a. Manager

b. Entrepreneur

c. Both a and b


46. An intrapreneur needs to have a blend of :

a. Communication skills and intelligence

b. Managerial skills and entrepreneurial skills

c. Business skills and corporative skills

d. Intrapersonal

47. An entrepreneur’s primary motivation for starting a business is :

a. To make money

b. To be independent

c. To be famous

d. To be powerful

48. Entrepreneurship works for………………

a. Profits

b. Salary

c. Remuneration

d. Commission

49. Which of the following is not a technique that is not used in business environment

scanning:

a. PESTLE analysis

b. Industry analysis

c. SWOT analysis

d. Government analysis

50. Which of the following is an economic factor:

a. Exchange rates

b. Licensing regulation

c. Labour courts

d. Employment needs

51. Managing qualities are required in a:




a. Intrapreneur

b. Entrepreneur

c. Manager

d. All of the above

52. Creativity, innovation, risk taking etc are the skills required in an :

a. Entrepreneur

b. Manager

c. Intrapreneur

d. All of the above

53. Among the following who follows his dreams:

a. Manager

b. Entrepreneur

c. Intrapreneur

d. All of the above

54. Resources needed by managers are ………………….

a. Readily available

b. Needs to arrange

c. Provided by entrepreneur


55. Among the following entrepreneur who likes and enjoys working on something new on

creative.

a. Idealist

b. Optimisers

c. Hardworkers

d. Sustainers

56. Among the following entrepreneur who is content with personal satisfaction of simply

being a business owner:

a. Idealist

b. Optimisers

c. Hardworkers

d. Sustainers

57. Among the following entrepreneur who enjoy putting on long hours to build a larger and

more profitable business.

a. Idealist

b. Optimisers

c. Hard workers

d. Sustainers

58. Among the following entrepreneur who likes to maintain a balance between work and

personal life:

a. Idealist

b. Optimisers

c. Hard workers




d. Sustainers

59. Among the following entrepreneur who predominantly are focused to start a business to

improve the world :

a. Improver

b. Advisor

c. Superstar

d. Artiste

60. Among the following entrepreneur who believes in consumer sovereignty where they

indulge excessively in providing customer service:

a. Improver

b. Advisor

c. Superstar

d. Artiste

61. Which of the following is entrepreneurship which is totally internal in an organisation:

a. Internal entrepreneurship

b. Internal intrapreneurship

c. Both a and b


62. ………………………….is the one to go through minimum income risk.

a. Manager

b. Entrepreneur

c. Both a and b


63. The man to coin the word ‘Intrapreneur.’

a. Thomas Malthus

b. Gifford Bentinck

c. Girrord Pinchot

d. Thomas Pogge

64. The resistance of employees in an organisation against flexibility growth and diversification

can be overcome by developing:

a. Entrepreneurship

b. Intrapreneurship

c. Managerial domain

d. Administrative domain

65. An intrapreneur needs to have a blend of:

a. Communication skill and intelligence

b. Managerial skills and entrepreneurial skills

c. Business skills and corporative skills

d. Intrapersonal skills

66. Principle of innovation was given by :

a. Steve Jobs

b. H.N.Hansen




c. Konntz ODonnel

d. Joseph Schumpter

67. Sell………… and not ……is the statement given by Steve Jobs.

a. Company, customers

b. Desire , wants

c. Product, dreams

d. Dreams, product

68. Ongoing scanning at an almost unconscious level is ………………

a. Directed scanning

b. Active scanning

c. Passive scanning

d. Indirect scanning

69. Which of the following does not include in marketing assessment process:

a. Defining the problem

b. Fostering ideas

c. Feedback

d. Designing a plan

70. In relation to PESTLE framework which of the following statement is correct.

a. It assists in the assessment of organisational strengths and weaknesses.

b. It allows a detailed analysis of the structure of an industry.

c. It can be used as a checklist to understand the different environmental influences in

the macro environment

d. Takes an historical perspective on the main political, economic, sociocultural,

technological, environmental and legal factors.

71. The ………………plan should contain control points to ascertain progress.

a. Business

b. Marketing

c. Financial

d. Operational

72. Industrial analysis should include information on:

a. Market size of competitor’s product

b. Growth rate of suppliers

c. New products entry

d. Economic conditions

73. In PESTLE framework for environmental analysis what does letter S stands for :

a. Socio cultural

b. Society

c. Surroundings

d. Superior

74. The advantages of competition rivalry are:

a. Identifying the actual competitiors




b. Assessing competitiors objectives strategies strengths and weaknesses and reaction

patterns

c. To root out the competitors

d. All of the above

75. Assessment of competitive rivalry does not include an understanding of :

a. The extent to which competitors are in balance

b. Market growth rates

c. Fixed costs, exit barriers and operational efficiency

d. The management structure of an organisation

76. Among the following which are the challend=ges before qn Entrepreneur:

a. Lack of balance between projects and personnel

b. Delayed payments

c. Uncertain return to the investors

d. All of the above

77. What should an entrepreneur possess to cope up with the challenges faced by him:

a. Innovation

b. Risk oriented

c. Achievement orientation

d. All of the above

78. An entrepreneur must possess ……………….. to up with challenges in a venture.

a. Involves Managerial skills and leadership

b. Impact of cultural and religious factor

c. Entrepreneurship is a practise

d. All of the above

79. ‘Entrepreneurship a comparative and historical study’ by Paul H. Wilken lists which

innovations?

a. Initial expansion

b. Subsequent expansion

c. Factor innovation

d. All of the above

80. The entrepreneurship business financing process consists of:

a. Sources of finance

b. Means of finance

c. Both a and b

d. None

81. Strategic process like……………….. are implemented with the help of Strategic Management.

a. Strategic implementation

b. Control

c. Both a and b

d. None

82. Well implemented strategic planning provides ………………..for the organisation.

a. Vision




b. Direction

c. Goals

d. All of the above

83. Operational planning translates the strategy into ……………execution tacties of the business.

a. Monthly

b. Yearly

c. Everyday

d. Weekly

84. Corporate strategy can be thought of a message packet that must be:

a. Passed through the organisation

b. Understand by all

c. Acted upon in orchestration

d. All of the above

85. The intent will be lost in translation and operational execution will become misaligned with

the corporate strategic goals if the message is:

a. Garbled

b. Ambiguous

c. Not communicated well

d. All of the above

86. Superior operational planning requires ……………thinking.

a. Proactive

b. Reactive

c. Both a and b

d. None

87. Concept of entrepreneurship was referred as…………….by British economists.

a. Board management

b. Business administration

c. Board administration

d. Business management

88. What is the full form of LDC:

a. Low division countries

b. Less developed countries

c. Low development countries

d. Less development countries

89. Which of the following are the constraints to operational planning:

a. Time and resources

b. Taxes and subsidies

c. Political instability

d. None

90. Entrepreneurship has gained greater significance at global level under ……….economic

scenario.

a. Static




b. Same

c. Both a and b

d. Changing

91. According to Barnard, Environment is:

a. Changing

b. Static

c. Both a and b

d. None

92. Every activity of human being involves ………….to satisfy his unlimited wants and desire.

a. Business

b. Education

c. Government

d. None

93. Company can be …………

a. Public

b. Private

c. Both a and b

d. None

94. ………………….are considered as important forms of business organisation.


b. HUF

c. Partnership

d. All of the above

95. The structure of these businesses will be …………..and the problem they face will be ……… as a

result of the differences.

a. Different, same

b. Same. Different

c. Different , vary

d. Same, same

96. Micro enterprise require ………………… amounts of capital to enter to the market and produce

quickly.

a. Small

b. Huge

c. Moderate

d. None

97. Who said”Marketing is the process of discovering and translating consumer needs and

wants into products and services and in turn making is possible for more and more of these

products and services.”

a. American Marketing association

b. Gerstemmerg

c. H.L Hansen

d. Kotler




98. Micro environmental features can be described as …………..close to a business that have

direct impact on its strategy.

a. Employees relationship

b. Internal factors

c. Media relation

d. Competitive environment

99. Lifting of corporate veil means:

a. Ignoring the corporate personality

b. Promoting corporate personality

c. Deciding corporate personality

d. Modifying corporate personality

100. Registration of partnership firm is

a. Compulsory

b. Voluntary

c. Statutory

d. Optional


1 A 21 A 41 B 61 D 81 C

2 C 22 C 42 C 62 A 82 D

3 A 23 A 43 D 63 C 83 C

4 B 24 B 44 C 64 B 84 D

5 A 25 C 45 A 65 B 85 D

6 A 26 A 46 B 66 A 86 A

7 B 27 A 47 B 67 D 87 C

8 A 28 B 48 A 68 D 88 B

9 D 29 C 49 D 69 C 89 A

10 B 30 D 50 B 70 C 90 D

11 D 31 B 51 C 71 D 91 A

12 A 32 D 52 A 72 D 92 A

13 B 33 D 53 B 73 A 93 C

14 D 34 B 54 A 74 D 94 D

15 B 35 A 55 A 75 D 95 C

16 A 36 D 56 B 76 D 96 A

17 B 37 D 57 C 77 D 97 C

18 A 38 B 58 D 78 D 98 B




19 B 39 C 59 A 79 D 99 A

20 A 40 B 60 B 80 D 100 D

TEST PAPER 15

1. Which one of the following is the oldest and simplest form of organisation?


b. Committee organisation

c. Line and staff organisation

d. Line organisation

2. Which one of the following shows a big picture of what a company wants to achieve in

future?

a. Vision statement

b. Mission statement

c. Value statement

d. Quality statement

3. Which among the following is one of the largest ‘job providers’ in India?

a. Network marketing

b. BPO

c. Medical tourism

d. Film Industry

4. Which of the following is treated as a separate legal entity differefn from its members?

a. Sole proprietor ship

b. HUF

c. Partnership

d. LLP

5. Value system of an organisation have an impact on its:

I Objective

II policies

III Practises

IV profit

The correct option is:

a. I and II only

b. I, II, and III only




c. II, III and IV only

d. I,II,III,IV only

6. Which one of the following is great concern to E-COMMERCE?

a. Speed

b. Quality

c. Security risk

d. Maintenance cost

7. Why co-operative marketing society is formed?

a. To protect the interest of general consumer

b. To sell the product of small farmers and producers

c. To protect the interest of small producers

d. To provide financial support to the members.

8. The definitions of MSMEs in India is based on:

a. Total sales of the unit

b. Investment in machines and equipment

c. Market coverage

d. Export turnover

9. Which one of the following is not a part of Porter’s generic strategy?

a. Focus

b. Cost leadership

c. Differentiation strategy

d. Market segmentation

10. Which one of the following is not a part of marketing mix?

a. Planning

b. Product

c. Price

d. Place

11. The abbreviation ‘BIFR’ with reference to sick companies in India means-

a. Board of Indian Financial Reserves

b. Board for Industrial and Financial Resources

c. Board for Industrial and Financial Reconstruction

d. Board for international Fund reserves

12. Which of the following are the key drivers of globalisation?

a. Government actions , exchange rates, competition and socio-demographic factors.

b. Market convergence, competition, exchange rates and cost advantages

c. Cost advantages, government action , economic cycles and competition

d. Market, cost competition and government policies.

13. In marketing , a distinctive group of consumers is known as a segment

a. False

b. True

c. Partly true

d. Partly false




14. Which one of the following is the push factor influencing the internationalism of a

company?

a. Difficult in finding skilled staff on the home country

b. The need to be close to key resources

c. Low- cost labour in other countries

d. Financial incentives form governments in emerging markets

15. Foundation of public enterprises in India was laid down by-

a. Indira Gandhi

b. Jawaharlal Nehru

c. Dr Rajendra Prasad

d. Dr S.Radhakrishnan

16. What is the meaning of the maxim ultra vires?

a. An accomplished act

b. Within the powers

c. Beyond the powers

d. With the guilty mind

17. Which kind of precedent from the following creates and applies a new rule of law?

a. Declaratory

b. Persuasive

c. Absolutely authoritative

d. Original

18. Employees relate to which of the following:

a. Work smart

b. Work hard

c. Do not work

d. Work all day all night

19. In a company maximum time difference between two board meetings is in…………….months

a. 3

b. 4

c. 6

d. 5

20. In marketing , a distinctive group of consumers is known as :

a. A class

b. A segment

c. An emerging mark

d. None

21. In a company who conceive the idea of the business?

a. Promoters,

b. Auditors

c. Directors

d. Shareholders

22. ‘Voidable contract’ means –




a. Parties are incompetent to contract

b. Free consent of parties is missing

c. Consideration is inadequate

d. The object of contract is expressly declared void by the act itself

23. An agreement is restraint of marriage-

a. Is voidable at the option of the promisor

b. Is voidable at the option of promisee

c. is expressly declared as void

d. cannot be enforced as there as there is no privity of contract

24. For acceptance to be considered as valid it must-

a. Be absolute

b. Be unqualified

c. Both a and b

d. Be conditional

25. A person who is not a partner but actually works as a partner is called as :

a. Nominal partner

b. Dormant partner

c. Ostensible partner

d. Partner by estoppel

26. Which one of the following cannot be claimed as a matter of right by a partner?

a. To have access to books of account

b. To take part in the conduct of the business

c. To share the profits

d. To receive the remuneration

27. The phrase quantum merit literally means-

a. As much as earned or reasonable remuneration

b. The fact in itself

c. A contract of sale

d. As much as is gained

28. According to section 25 of Indian Partnership Act, 1932 the liability of a partner is-

a. Joint

b. Several

c. Joint and several

d. None

29. The relationship of partnership arises out of-

a. An agreement

b. Statute

c. Operation of law

d. Both an agreement and statute

30. A contract of sale of goods under section 4 of the Sale of Goods Act, 1930 comprises of –

a. Executory contract of sale

b. Executed contract of sale




c. Both executory and executed contract of sale

d. None

31. An unpaid seller of goods has a right –

a. Against the buyer

b. Against the buyer and goods

c. Against goods

d. None

32. A bill of exchange contains a/an-

a. Unconditional undertaking

b. Unconditional order

c. conditional undertaking

d. conditional order

33. Which one of the following is not an example of material alteration as per section 87 of the

Negotiable Instruments Act, 1881?

a. Alteration of the date of instrument

b. Alteration of the sum payable

c. Alteration in the time of payment

d. Crossing of instrument

34. A cheque is a –

a. Promissory note

b. Bill of exchange

c. Hundi

d. None

35. Who among the following is not a party to a cheque?

a. The drawer

b. The acceptor

c. The drawee

d. The payee

36. The word entrepreneur has its origin from-

a. Latin

b. French

c. German

d. Indian

37. Albert S.Humphery was the originator of-

a. SWOT analysis

b. Industry

c. GE Model

d. BCG Matrix

38. Components of creativity do not include-

a. Expertise

b. Creative thinking

c. Motivation




d. Self efficacy

39. Which one of the following is correct about business plan?

a. It is necessary only for big companies

b. It lays down the best growth path and strategy

c. It is substitute for strategic planning

d. It should emphasize on ideas and concept only

40. Which one of the following is not a method of environmental scanning?

a. SWOT Analysis

b. Industry analysis

c. GE model

d. PESTLE Analysis

41. Who coined the statement “sell dreams, not products”?

a. Joseph Schumpeter

b. Jacob Viner

c. Alfred Marshall

d. Steve Jobs

42. Expansion into new line of business is :

a. Strength of the firm

b. Weakness of firm

c. Opportunity of firm

d. Threat of the firm

43. According to the Porter’s Five forces Model which one of the following is not a competitive

force for a firm:

a. Substitute products

b. Buyer’s power

c. Supplier’s power

d. USP

44. Primary task for running a successful venture is

a. Identification of opportunity .

b. Developing a plan

c. Conceiving an idea

d. Arrangement of resources

45. What to achieve and till when” is explained by ………………… of an organisation

a. Objectives

b. Mission

c. Goal

d. Vision

46. Which one of the following is not the characteristics of entrepreneurship?

a. Innovation

b. Organising skills

c. Indifferent approach

d. Risk taking




47. Which one of the following is true about investment cost per job?

a. Investment costs per job are high in large and medium industries

b. Investments costs per job are high in small scale enterprises

c. Investments costs per job are high in micro enterprises.

d. Investments costs per job are high in micro enterprises than small scale enterprises.

48. A company engaged in alcoholic manufacturing merged with a cigarette manufacturing

firm. What type of merger is this?

a. Horizontal merger

b. Product extension merger

c. Market extension merger

d. Vertical merger

49. In a business environment which one of the following is not a political factor ?

a. Tax policy

b. Employment laws

c. Environment regulation

d. Exchange rate

50. Cantillon referred entrepreneurs as on of the classes of ……….. who are financially

independent aristocrat.

a. Landowners

b. Employees

c. Entrepreneurs

d. investors

51. Features of business environment is/ are:

a. Specific and General Forces:

b. Dynamic Nature

c. Uncertainty

d. All of the above

52. ……………..affect individual enterprises directly and immediately in their day-to-day working.

a. Specific Forces

b. General Forces

c. Both a and b

d. None

53. …………have impact on all business enterprises and thus may affect an individual firm

indirectly only.

a. Specific Forces

b. General Forces

c. Both a and b

d. None

54. A Vision Statement describes the desired future position of the company.

a. True

b. False

c. Partly true




d. Partly false

55. The …………………business is a form of business organization found only in India.

a. Hindu Undivided Family (HUF)

b. Sole proprietorship

c. Company

d. LLP

56. In the event of death of any of the co-parcener, his wife can claim share of profit.

a. True

b. False

57. The maximum membership limit is …… in case of banking business and ….. in case of all other

types of business.

a. 20,10

b. 30,10

c. 10,20

d. 10,30.

58. The partnership firm means partners and the partners mean the partnership firm.

a. True

b. False

59. Registration of partnership is compulsory.

a. True

b. False

60. …………..is a body that is created under an Act of Parliament or an Act of State Legislatures.

a. Statutory Body

b. Real estate trust

c. LLP

d. Company

61. In the words of………….., “a public Corporation is an organisation that is clothed with the

power of the government, but is possessed with the flexibility and initiative of private

enterprise.”

a. Roosevelt

b. Salmond

c. Henry Fayol

d. Cantillion

62. The public corporation is wholly owned by the Central and/ or State Government(s).

a. True

b. False

63. The co-operative society follows the principles of …………………..

a. cash and carry.

b. Cash and hold

c. Cash and cash equivalent

d. All of the above




64. Limited Liability Partnership entities, the world wide recognized form of business

organization has been introduced in India by way of Limited Liability Partnership Act…………...

a. 2006

b. 2008

c. 2001

d. 2009

65. The LLP shall be a

a. body corporate

b. a legal entity having perpetual succession

c. separate from its partners.

d. All of the above

66. Advantage of LLP is as follows:

a. Any act of the partner without the other may bind the LLP

b. Under some cases, liability may extend to personal assets of partners

c. No separation of Management from owners

d. All of the above

67. The words for ‘domestic’ and ‘foreign’ did mean for different in citizenship status of the

business owner.

a. True

b. False

68. Micro entrepreneurs operate not by choice, but out of necessity.

a. True

b. False

69. The……………….. has classified in the case of the

enterprises engaged in the manufacture or production of goods pertaining to any industry

specified in the first schedule to the Industries (Development and Regulation) Act, 1951.

a. Central Government

b. State government

c. Both a and b

d. None

70. According to………………, a public enterprise denotes "state ownership and operation of

industrial, agricultural, financial and commercial undertakings".

a. A. H. Hansen

b. N.N.Malaya

71. According to ………….."Public enterprises are autonomous or semi-autonomous corporations

and companies established, owned and controlled by the state and engaged in industrial

and commercial undertakings".

a. A. H. Hansen

b. N.N.Malaya

72. There are …………… different forms of organisation used for the public sector enterprises in

India.

a. 1




b. 2

c. 3

d. 4

73. ……………..form of organisation is primarily used for provision of essential services such as

railways, postal services, broadcasting etc.

a. Departmental Undertaking

b. Statutory (or Public) Corporation

c. Government Company

d. All of the above

74. …………………… refers to a corporate body created by the Parliament or State Legislature by a

special Act which defines its powers, functions and pattern of management.




d. All of the above

75. …………… refers to the company in which 51 percent or more of the paid up capital is held by

the government.




d. All of the above

76. There are …… Miniratna Public Sector Enterprises functioning in India.

a. 45

b. 16

c. 48

d. 13

77. A ……………means the special right given by a manufacturer or a parent organization to

another individual or firm to sell to the former’s product or service in a specified given

area(s).

a. BPO

b. KPO

c. Franchise

d. All of the above

78. Which of the following are the advantages to franchisee

a. Can expand his distribution system in the least possbile time

b. Is able to expand the business with little extra capital for the outlet.

c. Gets important feedback about the popularity of the product and specific need and

preferences of the local customers from the franchisees.

d. The business is based on a proven ides. It can check out how successful others

before committing himself.

79. Outsourcing is popularly associated with:

a. IT Enabled Services (ITES)




b. Real estate

c. Restaurent

d. Hostel

80. BPO that is contracted outside a company's country is called as

a. offshore outsourcing.

b. near shore outsourcing.

c. Both a and b

d. None

81. BPO that is contracted to a company's neighboring (or nearby) country is called

a. offshore outsourcing.

b. near shore outsourcing.

c. Both a and b

d. None

82. ……………refers to all forms of business transactions which are carried out through electronic

processing and transmission of data including text, sound and visual images.

a. ‘Electronic commerce’

b. Mobile Commerce

c. Both a and b

d. None

83. E-commerce includes buying and selling of –

a. Goods

b. Information

c. Services

d. All of the above

84. ………………refers to the buying and selling of goods and services through wireless handheld

devices such as mobile phone and personal digital assistants (PDAs).

a. ‘Electronic commerce’

b. Mobile Commerce

c. Both a and b

d. None

85. Advantages of Network marketing is / are

a. distribution network grows continuously

b. distribution channel is at zero level

c. lower overhead costs

d. all of the above

86. ……………..is process or operation that is performed routinely to carry out a part of the mission

of an organization.

a. Business function

b. Business Fraternity

c. Business environment

d. Business Entrepreneurship




87. The term strategy is derived from the ………word ‘Strategos’ which means ‘the art of the

general’.

a. Greek

b. Latin

c. Indian

d. Indian

88. Which of the following are/is Features of strategy

a. It is a specialized planning to retaliate competitors.

b. It explains how managers have to respond to changes in business environment.

c. It redefines direction towards common efforts.

d. All of the above

89. Planning is the…………….. function of management.

a. Primary

b. Secondary

c. Both a and b

d. Neutral

90. ………………..is the oversight of materials, information, and finances as they move in a process

from supplier to manufacturer to wholesaler to retailer to consumer..

a. PCS

b. SCM

c. PCA

d. PCWA

91. Supply chain management flows is divided into ……….main flows:

a. 1

b. 2

c. 3

d. 5

92. Flow methods are not similar to batch methods

a. True

b. False

93. Money required for carrying out business activities is called…………..

a. business finance

b. capital

c. both a and b

d. none

94. No matter what your product is, you are ultimately in the education business. Your

customers need to be constantly educated about the many advantages of doing business

with you, trained to use your products more effectively, and taught how to make never-

ending improvement in their lives.

a. Robert G Allen

b. Hemburg

c. Austen janes




d. Stephney

95. Network Marketing is a mode of indirect marketing by the manufacturer.

a. True

b. False

96. Business has only two functions - Marketing and Innovation.

a. Peter F. Drucker

b. Malsow

c. Henry fayol

d. Fredrick taylor

97. In Job production, the complete task is handled by a single worker or group of workers.

a. True

b. False

98. Which of the following is / are aims of flow methods–

a. Improved work & material flow

b. Reduced need for labour skills

c. Added value / completed work faster

d. All of the above

99. According to ………………….“Finance may be defined as that administration area or set of

administrative functions in an organization may have the means of carrying out its

objectives as satisfactorily as possible.”

a. Howard and Upton

b. B.O Wheeler

c. Henry fayol

d. Fredrick taylor

100. According to………………, “Business finance includes those business activities which are

concerned with the acquisition and conservation of capital funds in meeting the financial

needs and overall objectives of business enterprise.”

a. Howard and Upton

b. B.O Wheeler

c. Henry Fayol

d. Fredrick Taylor


1 D 21 A 41 D 61 A 81 B

2 A 22 B 42 C 62 A 82 A

3 B 23 C 43 D 63 A 83 D

4 D 24 C 44 A 64 B 84 B

5 B 25 D 45 B 65 D 85 D

6 C 26 D 46 C 66 D 86 A

7 C 27 A 47 A 67 B 87 A

8 B 28 C 48 D 68 A 88 D




9 D 29 A 49 D 69 A 89 A

10 D 30 D 50 A 70 A 90 B

11 C 31 B 51 D 71 B 91 C

12 D 32 B 52 A 72 C 92 B

13 B 33 D 53 B 73 A 93 A

14 C 34 B 54 A 74 B 94 A

15 B 35 B 55 A 75 C 95 B

16 C 36 B 56 A 76 A 96 A

17 D 37 A 57 C 77 C 97 A

18 B 38 D 58 A 78 D 98 D

19 B 39 D 59 B 79 A 99 A

20 B 40 C 60 A 80 A 100 B




TEST PAPER 16

1. The concept of Zero Based Budgeting was introduced in 1970 by:

a. Joseph L Massie

b. Lester R Bittel

c. Peter Phyrr

d. Peter F Drucker

2. Functions of administration are

a. Executive and governing

b. Policy making and implementation

c. Legislative and determination

d. None

3. Which one of the following acronym did ‘ Luther Gullick’ coin using initial letters of

management’s Functions?

a. POSBRD

b. POSDBRD

c. POSDCORB

d. POCDSORB

4. Mathematical approach to management is closely related to

a. Empirical approach of management

b. Inter personal behaviour approach of management

c. Corporate approach of management

d. Decision theory of management

5. Under ……………………..organisation, there is a clear demarcation between thinking and doing.

a. Line and staff

b. Functional

c. Matrix

d. Project management

6. Performance appraisal means systematic process of measuring and evaluation of…………….. of

each employee by a person trained for merit rating.

a. Performance /Personality

b. Intelligence

c. Mental health

d. Participation

7. Ranking method of performance appraisal can conventionally be applied when the number

of employees if:




a. Large

b. Small

c. Both a and b

d. None

8. Who among the following suggested the method of goal setting approach for performance

appraisal which is also called “Management by objectives”?

a. Peter F Drucker

b. Douglas McGregor

c. Newmann and Summer

d. Henri Fayol

9. Which one of the following is called the Siamese twins of management?

a. Planning and organising

b. Co-ordination and co-operation

c. Directing and controlling

d. Planning and controlling

10. Which one of the following control, techniques provides for collective actions to be taken to

improve future performance?

a. Internal audit

b. Standard costing

c. Break even analysis

d. Statistical control

11. Which one of the following involves assessing potential threats and finding ways to avoid

those threats?

a. Crisis management

b. Total quality management

c. Administrative management

d. Risk management

12. The traditional control techniques are

a. Budgetary control and CPM

b. PERT and CPM

c. Zero based budgeting and management audit

d. Budgetary control and standard costing

13. Premises signify ………………….within which planning will take place.

a. Planning assumption

b. Planning deviation

c. Planning resources

d. None

14. The fundamental assumption of …………………is that full advantage of employee potential can

be utilised by motivating them to accept organisational objectives.

a. Theory X

b. Equity theory

c. Monistic theory




d. Theory-Y

15. While appraising performance of people , it is assumed that people usually differ in-

a. Their tasks

b. Their behaviour

c. Their abilities and aptitude

d. Their ways of actions

16. How many principles of management have been suggested by Henry Fayol

a. 10

b. 14

c. 12

d. 16

17. Entrepreneur’s role of a disturbance handler, allocator of resources and negotiator’s role are

………………roles that the manager has to perform.

a. Interpersonal

b. Decisional

c. International


18. According to decision theory approach, which one of the following is the core of

management?

a. Leadership

b. Decision making

c. Motivation

d. Planning

19. Management is an art because it involves use of-

a. Experience and intelligence

b. Creativity and personalization

c. Skills and know how


20. Which one of the following is the first and primary step in the planning process?

a. Premising

b. Determining alternative courses

c. Evaluating alternatives

d. Establishing objectives

21. The idea of business ethics caught the attention of academics, media and business firms by

the end of------------

a. 1st world war

b. 2nd world war

c. Cold war

d. None

22. Providing information to law enforcement or regulatory agencies about a business illegal or

improper activities by its employees is known as –

a. Ethical wrong




b. Whistle blowing

c. Ethical dilemma

d. Ethical wonder

23. Which one of the following is not correct about business ethics?

a. Business ethics is a universal and absolute concept

b. Business ethics is based on well accepted moral and social value

c. Business ethics is a code of conduct which businessmen should follow while

conducting their normal activities

d. Business ethics give protection to customers and other social groups related to a firm.

24. To be successful business ethics and training program need to-

a. Be focused on personal opinion of employees

b. Be limited to higher management

c. Educate employees on formal ethical frameworks and models of ethical decision

making

d. Promote the use of emotions in making tough ethical decisions.

25. When a firm charges different prices from different groups of customer, it may be accused

of-

a. Cultural relativism

b. Money laundering

c. Facilitating payments

d. Price discrimination

26. Code of conduct and codes of ethics-

a. Are formal statements that describe what an organisation expects of its employees

b. Become necessary only after a company has been in legal trouble

c. Are designed for top executives and managers and not for regular employees

d. Rarely become an effective component of the ethics and compliance program.

27. Which one of the following is not the primary elements of a strong organisational

compliance program?

a. A written code of conduct

b. An ethics officer

c. Significant financial expenditures

d. A formal ethics training program

28. Business must first be responsible to-

a. Employees

b. Customers

c. Owners

d. Bankers

29. The Sarbanes Oxley Act, 2002 was enacted and passed in USA to-

a. Punish those who committed accounting frauds in the late 1990s.

b. Improve corporate profits

c. Help laid off employees get their jobs back

d. Help restore confidence in corporate America




30. Most companies begin the process of establishing organisational ethics programs by

developing-

a. Ethics training programmes

b. Codes of conduct

c. Ethics enforcement mechanisms

d. Hidden agendas

31. Pictures are a very powerful communication medium.

a. True

b. False

32. Actions offer a …………..type of communication medium.

a. 1st

b. 2nd

c. 3rd

d. 4th

33. According to ……….., “Coordination is the effort to assure a smooth interplay of the functions

and forces of the different component parts of an organization to the end that its purpose

will be realized with a minimum of friction and a maximum of collaborative effectiveness.”

a. Maslow

b. TEAD

c. Fayol

d. Taylor

Give single word for:

34. Often lost in thought and unaware of one’s surroundings .

a. absent-minded

b. accelerate

c. accurate

d. absis

35. One who calculates insurance and annuity premium, etc

a. Actuary

b. accelerate

c. accurate

d. absis

36. One who gives friendly help; one who makes a gift to a charity

a. Benefactor

b. accelerate

c. accurate

d. absis

37. Persons working jointly on an activity or project

a. Collaborator

b. accelerate

c. accurate

d. absis




38. An expert judge in matters of taste

a. accelerate

b. accurate

c. absis

d. connoisseur

39. To sway to and fro, to show indecision

a. Vacillate

b. accurate

c. absis

d. connoisseur

40. A blood feud started by murder-seeking vengence

a. Vendetta

b. accurate

c. absis

d. connoisseur

41. Words are divided into ……….. classes according to the work they do in a sentence.

a. 1

b. 8

c. 9

d. 6.

42. Shorter Sentences are easier to write as well as understand.

a. True

b. False

43. A ……………..is a group of words, a part of sentence which does not make a complete

sentence, but has an independent meaning and makes some sense: on the hill, about town,

under the tree, etc.

a. Phrase

b. Sentence

c. Paragraph

d. All of the above

44. Jargon means a language which is unique to a particular field of knowledge.

a. True

b. False

45. The same word cannot be used as different parts of speech.

a. True

b. False

46. As far as spelling of English Language is concerned, the British prefer ‘z’ over ‘s’, i.e.,

criticize, realize, recognize and so on.

a. True

b. False




47. Full stop should not be omitted after acronyms which are pronounced as a word.

a. True

b. False

48. Apostrophe is never used in a single word.

a. True

b. False

49. Abbreviation and Acronyms are the same thing.

a. True

b. False

50. An abbreviation is a short way of writing a word or phrase that could not be written out in

full.

a. True

b. False

SR.NO ANS SRNO ANS SRNO ANS SRNO ANS SRNO ANS

1 C 11 A 21 C 31 A 41 B

2 C 12 D 22 B 32 C 42 A

3 C 13 A 23 B 33 B 43 A

4 D 14 A 24 C 34 A 44 A

5 A 15 C 25 D 35 A 45 B

6 A 16 B 26 A 36 A 46 B

7 B 17 B 27 C 37 A 47 B

8 A 18 B 28 C 38 D 48 B

9 D 19 C 29 D 39 A 49 B

10 C 20 D 30 B 40 A 50 B

PART B

1. Communication by the CEO of the organisation to the purchase officer is an example of

:

a. Upward communication

b. Downward communication

c. Horizontal communication

d. Informal communication

2. Which one of the following is grammatically correct?

a. I bought three dozens bananas

b. I bought three dozen bananas




c. I bought three dozens banana

d. I bought three dozen banana

3. Don’t worry we are prepared ……………….anything. Which one of the following is the

correct preposition to fill in the blank space?

a. By

b. From

c. To

d. For

4. Which one of the following serves as a road map for the meeting?

a. Addendum to the notice

b. Agenda

c. Quorum

d. Notice

5. Cross wise communication is also known as ……………..communication

a. Vertical

b. Horizontal

c. Diagonal

d. None

6. If you want to reduce miscommunication, you should:

X Start assuming

Y Talk to people

Z Improve your working environment


a. X and Y

b. Y and Z

c. X and Z

d. All of the above

7. Which one of the following method is used frequently by an organisation to decide its

strategic goal?

a. Group discussion

b. Brain storming

c. Interview

d. None

8. Which one of the following is not true about job interview ?

a. In job interview, one needs to study about the job, the company and interview.

b. Memorise and rehearse the answers to the probable questions in the interview

c. Reach at the interview venue about 10-15 minutes early

d. Bring an extra copy of resume at the time of interview

9. Which one of the following is not a barrier to communication?

a. Incorrect choice of medium




b. Difference in status

c. Trust level

d. Open communication channel

10. A remedy for all diseases or difficulties is called :

a. Panacea

b. Concrete

c. Numismatics

d. Philistine

11. Ram scored overall 99% marks. No other students of his class could do this. On the basis

of his performance we may say-

a. Ram is an intelligent student of the class

b. Ram is more intelligent student in his class

c. Ram is the most intelligent student of his class

d. Ram is one of the more intelligent boys of his class

12. The quality of expressing much in few words is known as

a. Exigency

b. Brevity

c. Apprises

d. None

13. The place where an aeroplane is housed is known as:

a. Shed

b. Yard

c. Cold storage

d. Hangar

14. A person who seeks to promote the welfare of poor by donating money is known as

a. Benefactor

b. Philanthropist

c. Collaborator

d. Ornithologist

15. The latin phrase mutatis mutandis stands for:

a. With the necessary changes

b. A way of doing something

c. A dead lock

d. Privilege entails responsibility

16. The term “subjudice” means:

a. Not to be considered by judiciary

b. Under judicial consideration

c. Prohibited by law

d. None

17. Which one of the following is correct about office notes?

i. Office notes are a form of internal communication between two different

patterns




ii. Office notes are put up by sections or departments to higher authorities

iii. The actual layout of the office note is same for all the companies.


a. i and ii

b. ii and iii

c. i and iii

d. All of the above

18. Electronic mail is known as :

a. E-mail

b. G-mail

c. Y-mail

d. All of the above

19. Which one of the following general rules is not applicable when composing a telegram?

a. Block letters must be used as far as possible

b. Sentences are to be divided by the word ‘STOP’

c. The message must be brief and clear

d. Normal grammar and punctuation must not be ignored

20. When an organisation needs to share important information with members of general

public such as a change of name or representative, it drafts-

a. A press release

b. An advertisement

c. A public notice

d. An e-mail messenger

21. Gestures cannot be used in

a. Oral communication

b. Body language

c. Written communication

d. Informal communication

22. Seven C’s of effective communication do not include-

a. Consideration of sender

b. Courtesy towards recipient

c. Correctness of facts

d. Concreteness in presentation

23. The flow or pattern of communication can be

a. Downward

b. Upward

c. Diagonal or horizontal

d. All of the above

24. ‘To play second fiddle’ means

a. To play the violin

b. To meddle with something

c. To take a subordinate part




d. To cheat

25. ………… means incapable of making mistakes.

a. Intelligent

b. Infallible

c. Incongruous

d. Indispensable

26. Organisations publish ………….. when they have to procure goods and services on a large

scale or get projects executed.

a. Purchase requisition

b. Tender notice

c. Purchase order


27. A company operates its bank account only through-

a. Share holder

b. Investors

c. Persons authorised by the Board of directors

d. Company secretary

28. ………………..is neither entered into books of accounts nor charged to the account of the

receipients.

a. Delivery challan

b. Invoice

c. Credit / debit note

d. Proforma invoice

29. …………………are made in order to voice a grievance and to secure a relief

a. Business communication

b. Invoice

c. Public notices

d. Representation

30. When an organisation needs to share important information with members of general

public, it drafts a-

a. Public notice

b. Office memorandum

c. Agreement

d. Representation

31. A……………… does not have a salutation and complimentary close.

a. Purchase order

b. External letter

c. Call letter

d. Memo

32. Memorandums are preferred when one needs to convey information

a. Urgently

b. In writing




c. Telephonically

d. Verbally

33. A good press release should not be –

a. Factual

b. Lengthy

c. News value

d. Format based

34. ……………………..option forbids unwanted e-mails to enter into the inbox

a. Interface

b. Spam

c. Protocols

d. Jargon

35. The meaning of Latin phrase ab intio is:

a. From the origin

b. Form the beginning

c. From the middle

d. From the ages

36. Which of the following is main function of an Apostrophe?

a. To point the reader’s attention forward

b. To separate two or more independent clauses

c. To denote possession and other kinds of relationship

d. To link contracting statements

37. Which of the following is a definite article?

a. A

b. An

c. The

d. All of the above

38. When goods are returned by the customer which one of the following is issued to the

customer for the value of goods returned?

a. Debit note

b. Performa invoice

c. Invoice

d. Credit note

39. Which one of the following is the passive voice of “Shahjahan built Taj Mahal”?

a. Taj Mahal is built by Shahjahan

b. Taj Mahal was built by Shahjahan

c. Taj Mahal is build by Shahjahan

d. Taj Mahal build by Shahjahan

40. Which one of the following is grammatically correct?

a. A snake was kill by me

b. You are request to come daily

c. Company secretary are also known as governance professional




d. Mahesh is more intelligent student of the class

41. Communication requires a ……………

a. Stage

b. Platform

c. Medium

d. Data

42. ……………is the foundation of communication

a. Civilisation

b. Culture

c. Society

d. None

43. Colours does not communicate

a. True

b. False

c. Partly true

d. Partly false

44. Your ………………… says volumes about you.

a. Business card

b. Playing card

c. Report card

d. None

45. Speech do not read-

a. Slow

b. Fast

c. Aloud

d. All of the above

46. Always see your message from your receivers point of view:

a. True

b. False

c. Partly true

d. Partly false

47. Give one word for :

A decision or opinion on which all are agreed:

a. Good

b. Correct

c. Unanimous

d. All of the above

48. Explain road show

a. A show to advertise existing products

b. A show to promote new products or services to potential customers

c. A show to promote sales of competitive products

d. Singing and dancing show




49. Rewrite the sentence correctly-My son Apoorva is the monitor of his class

a. My son, Apoorva is the monitor of his class

b. My son class monitor is my son only

c. Apoorva my son is his class monitor

d. My son Apoorva is his class monitor

50. In a secular State like India no person should be……… for upholding a particular religious

belief(fill in the blank )

a. Prosecuted

b. Projected

c. Persecuted

d. Particular

SR.NO ANS SRNO ANS SRNO ANS SRNO ANS SRNO ANS

1 B 11 C 21 C 31 D 41 C

2 C 12 B 22 A 32 B 42 B

3 D 13 D 23 D 33 B 43 B

4 B 14 B 24 C 34 B 44 A

5 C 15 A 25 A 35 B 45 C

6 B 16 B 26 B 36 C 46 A

7 B 17 A 27 C 37 C 47 C

8 D 18 A 28 D 38 D 48 B

9 D 19 D 29 D 39 B 49 A

10 A 20 C 30 A 40 C 50 C




Business Environment

1. Profit is the only objective of all business firms : a) True c) Partly True b) False d) Partly False.

2. Modern business is ……………………… a) Constant c) Dynamic b) Profitable d) Stable.

3. Features of business environment does not include : a) Uncertainty c) Static Nature

b) Relativity d) Specific and General forces. 4. …………………………… tells the purpose of business existence.

a) Vision c) Both a) and b) b) Mission d) None of the above.

5. Both Vision and Mission statements are commonly used to : a) Define measurement standards. b) Create wider linkages with customers, suppliers and alliance partners c) Guide managements thinking on strategic issues. d) Enlist internal support.

6. “Where you can visualize your business in 7 years time”. This is a : a) Mission Statement, c) Business Statement, b) Vision Statement, d) Statement of purpose.

7. “To be a global leader in promoting good corporate governance” is a …………………. Of ICSI. a) Vision c) None of the above. b) Mission d) Both a) and b) above.

8. Types of Business Environment includes the following : a) Internal c) Both a) and b) b) External d) None of the above.




9. Internal business environment does not includes :

a) Man c) Marketing Resources b) Money d) Government Policies.

10. Environment factors which are within the control of business are known as : a) Micro factors c) Macro factors b) Internal factors d) External factors

11. ……………………. Is a type of external environment. a) Operating c) General b) Remote d) All of the above.

12. Micro factors are the factors that are in the company’s immediate environment. a) True c) Party True b) False d) None of the above.

13. Micro environmental factors can be described as …………………… close to a business that have a direct impact on its strategy. a) External factors c) Both a) and b) b) Internal factors d) Competitive factors.

14. Macro environment is also known as : a) Task environment c) Global environment c) Remote environment d) Operating environment.

15. ………………………….. factors affects the economy as a whole and are not particular to any organization. a) Micro c) Internal b) Macro d) None of the above.

16. Change in technology, economic conditions, political and legal factors are ……………….. factors. a) Internal c) Both a) and b) b) External d) None of the above.

17. Fiscal policy, EXIM policy, Industrial policy etc. are types of …………………. Policies. a) Private c) Government b) Business d) Semi – Government.

18. Which of the following is a type of economic system ? a) Capitalistic economy c) Mixed economy b) Socialistic economy d) All of the above.

19. …………………………. Is a process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises. a) Privatisation c) Liberalisation b) Globalisation d) None of the above.

20. Liberalization does not includes : a) Abolishing industrial licencing requirement in most of the industries : b) Freedom in fixing prices of goods and services. c) Restriction in deciding the scale of business activities. d) Simplifying the procedure for imports and exports.

21. Following is not an objective of privatization : a) Improving the performance of PSU’s b) Decreasing the size of private sector. c) Reducing administrative burden. d) Revenue Generation.

22. Routes of privatization include : a) Divestiture c) Nationalisation




b) Contracting d) Both a) and b).

23. NAFTA stands for : a) New American Free Trade Agreement. b) North African Free Trade Agreement. c) North American Free Trade Agreement. d) North American Full Trade Acceptance.

24. NAFTA was signed among following countries : a) US, Canada, Mexico c) US, Canada, UK b) India, US, Pakistan d) None of the above.

Answers :

1.(b) 2. (c) 3. (c) 4. (b) 5. (c) 6. (b) 7. (a) 8. (c) 9. (d) 10. (b) 11.(d)

12. (a) 13. (b) 14. (b) 15. (b) 16. (b) 17. (c) 18. (d) 19. (c) 20. (c) 21. (b)

22. (d) 23. (c) 24. (a).

1. Which of the following is a form of business organization ? a) Temple c) Partnership b) Church d) Mosque.

2. Following is not a characteristic of business organization :- a) Discontinuity of operations c) Lawful business. b) Distinct ownership d) Risk involvement.

3. …………………………… is a form of business that is owned, managed and controlled by an individual. a) Partnership c) HUF b) Company d) Sole Proprietorship.

4. Individual owing and running the business is known as :- a) Single owner c) Single Trader. b) Sole Trader d) Businessman.

5. Which is the oldest business form ? a) Partnership c) Sole Proprietorship b) HUF d) Co-operative Society.

6. Which of the following would have unlimited liability ?

a) Co-operative Society c) Sole Proprietorship b) Company d) Shareholders.

7. Which of the following is an advantage of sole proprietorship ? a) Easy formation d) Both a) and b). b) Maintenance of business secrecy d) None of the above.

8. Which of the following has most stable existence ? a) Sole proprietorship c) Company. b) Partnership d) HUF.

9. Which form of organization is only found in India ? a) HUF c) Joint Stock Company. b) Co-Operative Society d) Governmental Undertaking.

10. What is the maximum strength of HUF :- a) 10 c) 100 b) 20 d) No limit.




11. The business affairs are managed by the head of the family, known as :

a) Co-parcener c) Shareholder b) Owner d) Karta.

12. Only co-parcener can become a Karta, This statement is : a) True c) Partly true b) False d) Partly false.

13. Karta’s liability is : a) Limited c) Limited by guarantee b) Unlimited d) None of the above.

14. What is the maximum number of partners in any partnership firm ? a) 10 (in banking business) b) 20 (business other than banking business) c) Both a) and b) d) No limit.

15. Mutual agency is an important feature of : a) HUF c) Partnership b) Joint Stock Company d) Co-operative Society.

16. Company have a perpetual succession and work under a common seal. This statement is : a) True c) Partly True

b) False d) Partly False. 17. Company is managed by shareholders :

a) True c) Can’t say b) False d) None of the above.

18. Statutory body is a body that is created under an Act enacted by a) Association of people c) Both a) and b). b) Association of ministers. d) Judiciary.

19. RBI is an example of :- a) Departmental undertaking c) Governmental undertaking. b) Statutory corporation d) None of these.

20. In which of the following, the ownership of venture is reflected by ownership of shares or stock? a) HUF c) Corporations b) Partnership d) Trusts.

21. Statutory Body is a combination of :- a) Public Ownership and accountability. b) Public ownership and business management. c) Public and private ownership.

d) Public ownership, public accountability and business management. 22. Following is not a type of co-operative society :-

a) Producer’s cooperative society, b) Wholesaler’s cooperative society c) Marketing co-operative society, d) Consumer’s co-operative society.

23. LLP Act, 2008 came into effect on :- a) 31/4/2009 c) 31/3/2009 b) 31/3/2008 d) 31/4/2008.

24. For having direct control over the business activities, which form is preferred : a) Partnership c) HUF b) Sole proprietorship. d) Company.




Answers :

1.(c) 2. (a) 3. (d) 4. (b) 5. (c) 6.(c) 7. (c) 8. (c) 9. (a) 10. (d) 11. (d) 12. (a)

13. (b) 14. (c) 15. (c) 16. (a) 17. (b) 18. (b) 19. (b) 20. (c) 21. (d) 22. (b) 23. (c)

24. ( b).

1. Micro enterprises are the enterprises providing services, and where the investment in equipment exceeds 10 lakh rupees. a) True c) Partly true b) False d) Partly false.

2. Scale of business involves determination of : a) Capital Requirement c) Business production b) Business size d) All of the above.

3. Micro enterprises are : a) Labour intensive c) Machine intensive

b) Capital intensive d) Both b) and c). 4. Traditional small industries provides :

a) Full time employment c) No employment. b) Part time employment. d) All of the above.

5. Handloom is an example of : a) Small scale enterprise c) Micro enterprise b) Modern small scale enterprise d) Traditional small scale enterprise.

6. In 1979-80, modern small industries provided ……..% of total employment. a) 33 c) 22 b) 43 d) 13.

7. For the goods having artistic features ………… enterprise is preferred. a) Large scale c) Micro b) Small scale d) Very large scale.

8. Large scale business provides …………. Economies. a) Internal c) Both internal and external b) External d) None of the above.

9. “Public corporations are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial

undertaking.” a) N.N. Malava c) O. L. Rehan b) A. H. Hansom d) I.V. starke.

10. Public accountability and Government control are features of which type of enterprise : a) 80Micro c) Large scale b) MNC d) None of these.

11. Which of the following is not a type of public sector enterprise ? a) Departmental undertaking c) Subsidiary of public enterprise b) Statutory corporation d) Government company.

12. HMT is an example of : a) Departmental undertaking c) Public corporation b) Government company d) None of the above.

13. Foundation of public enterprises in India was laid down by : a) Indira Gandhi c) Dr. Rajendra Prasad b) Jawahar Lal Nehru d) S. Radha Krishnan.




14. PSU’s account for …………………. Of India’s GNP :

a) 10% c) 30% b) 20% d) 40%.

15. Government’s Industrial Policy was announced on : a) 24th July, 1990 c) 24th July, 1991 b) 24th July, 1997 d) None of these.

16. Which of the following is not a ‘Navratna’ ? a) GAIL, c) LIC b) NTPC d) BHEL.

17. BIFR Means :- a) Board for Indian financial Reserves b) Board for Industrial and Financial Resources c) Board for Industrial and Financial Reconstruction. d) Board for International Fund Reserves.

18. Following is/are the main characteristics of MNC’s : a) Large size. b) World wide activities centrally controlled by parent Company. c) Both a) and b). d) None of the above.

19. Which of the following is not a reason for MNC’s growth : a) Avoid trade barriers c) Reduced transport cost. b) Increased labor cost. D) None of the above.

20. Advantages of MNC’s include : a) Employment Generation c) Efficient Resource Utilization. b) Economic Growth d) All of the above.

Answers :

1.(b) 2. (d) 3. (a) 4. (b) 5. (d) 6. (a) 7. (b) 8. (c) 9. (a) 10. (d) 11. (c) 12. (b)

13. ((b) 14. (b) 15. (c) 16. (c) 17. (c) 18. (c) 19. (b) 20. (d).

1. Network marketing is a mode of direct marketing by …………………

a) Manufacture c) Retailer b) Wholesaler d) All of the above.

2. Multilevel marketing is another name for ………………….. a) Retail Marketing c) Network Marketing b) Direct Marketing d) None of these.

3. Under network marketing, distributor purchases products at …………………… prices, a) Retail c) Discounted b) Wholesale d) None of the above.

4. Which marketing form have zero distribution channel ? a) Network c) Both a) and b). b) Multi-level d) Retail.

5. Parent organization grants the permission to other individuals to use their brand, trademark etc. for specified period. Such rights are known as ………………… a) Franchising c) Franclisee




b) Franchise d) Franchiser.

6. Period for which right is transferred, under an agreement is to be renewed from time to time. This statement is ……………….. a) True c) Partly true. b) False d) Partly False.

7. Agreed sum paid by franchiser to franchisee is known as ………………………… a) Fees c) Changes b) Commission d) Royalty.

8. Intellectual Property rights does not includes ………………… a) Trademarks c) Goodwill b) Patents d) Knowhow.

9. BPO stands for ………………………. a) Business Public Organisation b) Business Private Organization. b) Business Process Outsourcing d) Business People Organization.

10. LPO stands for ……………………… a) Legal Product Outsourcing c) Legal Process Outsourcing b) Lawful Process Outsourcing d) None of these.

11. …………………… is a type of BPO. a) Back office outsourcing c) Right office outsourcing

b) Left office outsourcing d) None of the above. 12. BPO was originally originated by …………………..

a) Reliance c) Coca-Cola b) Tata d) Pepsi.

13. ………………. Is the hottest spot of IT – outsourcing. a) India c) Africa b) USA d) Pakistan.

14. Reason for the acceptance of BPO is …………………. a) Smooth working c) Economical b) Specialisation d) All of the above.

15. E-commerce means – a) Commerce of electronic goods b) Commerce based on transactions using Computers connected by telecommunication

network. c) Commerce dependent on electronics. d) Commerce by using internet.

16. E-Commerce means buying and selling of ………………………. a) Goods c) Services

b) Information d) All of the above. 17. EDI means …………………..

a) Electrical Data Information c) Electronic Data Interchange b) Electrical Data Interchange d) Electronic Document Information.

18. B2B, B2C, C2B, C2C are types of …………………………… a) Network marketing c) M-Commerce b) Commerce d) Marketing.

19. Sales forecasting is difficult in ……………………. a) Network Marketing c) Marketing b) M-commerce d) E-commerce.

20. Following is not an advantage of E-Commerce …………………. a) Quick Supply c) Increased Cost




b) Prompt Delivery d) Wider Choice.

21. Idea of extracting business intelligence from competitor’s web pages is known as ………. a) Web Heating c) Web Farming b) Web Theft. d) None of these.

22. PDA’s, Smart phones, Mobile phones are required in ………………… a) M-Commerce c) E-Commerce b) Network Marketing, d) Marketing.

Answers :

1.(a) 2. (c) 3. (b) 4. (c) 5. (b) 6. (a) 7. (d) 8. (c) 9. (b) 10. (c) 11. (a) 12. (c)

13. (a) 14. (d) 15. (b) 16. (d) 17. (c) 18. (c) 19. (a) 20. (c) 21. (c) 22. (a).

1. …………………………... involves division of labor among multiple persons and/or technologies.

a) Business function c) Business operation b) Business process d) All of the above.

2. ‘Strategos’ is ………………….. a) ‘the science of the general’ c) A Greek word b) The art of the general d) Both b) and c) above.

3. Formulating strategies is a job of : a) Top Management c) Lower Management b) Middle Management d) None of these.

4. …………………. Strategy is stated in the company’s mission statement. a) Business unit c) Business level b) Operational d) Corporate.

5. Business done from home is known as : a) Real Business c) Virtual Business b) Artificial Business d) Transparent Business.

6. Factors affecting business location does not include the following : a) Labor c) Suppliers b) Advertisement facilities. d) Communication facilities.

7. Some areas of UK like whales, North-east England, etc. are known as :

a) Underdeveloped areas c) Poor areas b) Developing areas d) Assisted areas.

8. Decision making is a ……………………. Process : a) Emotional c) Mental b) Rational d) All of the above.

9. ……………………………… is a primary function of management : a) Planning c) Research $ Development. b) Budgeting d) Organising.

10. ……………………….. is a CEO of General Motors. a) Fueber c) Roger Smith b) Thorton Bradshaw d) None of the above.

11. …………………… is a device used for managerial control : a) Planning c) Financial Management b) Decision – making d) Budget.




12. Budget is prepared for the past work period.

a) True c) Partly true b) False d) Partly false.

13. Following is not a component of Budget : a) Saving c) Expenditure b) Income d) Capital employment.

14. ……………………… research has no immediate or direct commercial value. a) Basic c) Both a) and b). b) Fundamental d) None of the above.

15. Resources are always ……………….. and wants are always ……………… a) Limited, Unlimited c) Limited, Limited b) Unlimited, Limited d) Unlimited, Unlimited.

16. Financial Management comprises of : a) Financing decisions c) Dividend decision b) Investment decisions d) All of the above.

17. Reversal of ……………………. Decision is not possible. a) Capital Budgeting Decision c) Working Capital Decision b) Capital Structure Decision. d) Dividend Payment Decision.

18. Excess funds lessens the financing cost.

a) True c) Partly true b) False d) Partly false.

19. Selling is a …………………… concept while Marketing is a ………………… concept. a) Wide, narrow c) Small, big b) Narrow, wide d) Big, small.

20. Law of caveat emptor applies to : a) Marketing c) Both a) and b) b) Selling d) None of the above.

21. Marketing mix does not include the following P : a) Planning c) Price b) Product d) Place.

22. ……………………….. refers to getting the things done through others. a) Scientific Management c) Financial Management b) Personnel Management d) Marketing Management.

23. SCM Stands for : a) Supply Chain Material c) Supply Choice Material b) Source Concept Management d) Supply Chain Management.

24. Marketing mix involves :

a) Consumers c) Retailers b) Financing d) Products/Service.

25. ASP stands for : a) Application service provider c) All service provider b) Application source provider d) Application service planning.

26. ………………………. Flow refers to order transmission and updation of delivery status. a) Product flow c) Information flow b) Service flow d) Finance flow.

27. POM stands for : a) Product and Operations Manager b) Product and Operational Management. c) Production and Operations Management.




d) Production and Operational Management.

28. Production of chocolates is an example of : a) Flow Method c) Batch Method b) Job Method d) Group Method.

Answers :

1.(d) 2. (d) 3. (a) 4. (d) 5. (c) 6. (b) 7. (d) 8. (d) 9. (a) 10. (c) 11. (d) 12. (b)

13. (a) 14. (c) 15. (a) 16. (d) 17. (a) 18. (b) 19. (b) 20. (b) 21. (a) 22. (b) 23. (d)

24. (d) 25. (a) 26. (c) 27. (c) 28. (a).

1. Which of the following is not a definition of law : a) Physiological c) Sociological b) Realistic d) Historical.

2. As per Romans, ………………………. Is the main guiding force. a) Law c) Justice b) Equity d) None of these.

3. “Law is a normative science.” This definition was given by : a) Ulpine c) Kelsen b) Austin d) Cicero.

4. Elements of law include : a) Command c) Sanction b) Duty d) All of the above.

5. As per Historical definition of law, it is not universal in nature. a) True c) Partly True b) False d) Partly False.

6. ………………………. Is a primary source of Hindu law. a) Vedas c) Smritis b) Holy Kuran d) Bible.

7. ………………………. Is the most ancient source of Indian law. a) Judicial Decisions c) Statutes. b) Personal Law d) Customs.

8. ………………… custom prevails in a particular locality. a) Legal c) Conventional b) General d) Local.

9. Custom to be valid must not be : a) Immemorial c) Reasonable b) Uncertain. D) In confirmation with law and public morality.

10. Rule of court decision to be followed in future cases is known as …………………. a) Doctrine of Indoor Management c) Doctrone of Court Decisis b) Doctrine of Stare Decisis d) None of the above.

11. In case of any conflict between decisions of co-equal benches, …………………. Decision prevails. a) Later c) Both a) and b) b) Previous d) None.

12. Bench of two judges is known as :- a) Smallest Bench c) Division Bench




b) Full Bench d) None of the above.

13. Supreme Court is bound by its own decisions : a) True c) Partly True b) False d) Partly False.

14. ……………………. Precedents creates law for the whole country. a) Declaratory c) Absolutely Authoritative b) Pervasive d) Original.

15. Legislation can be : a) Supreme c) Both a) and b) b) Subordinate d) None

16. Shruti includes ……………………… number of Vedas. a) 1 c) 3 b) 2 d) 4.

17. ………………………. Is an unwritten law of England. a) Common law c) Equity b) Law Merchant d) Statute.

18. Latin maxim “bonafide” means : a) From the beginning c) In good faith. b) Guilty act d) In bad faith.

19. Latin Maxim “in personam” means : a) Against specific person c) Amongst other things b) Against no specific person d) Within the powers.

20. Hindu and Muhammedan law is …………….. a) Personal Law c) Historical Law b) Principle Law d) Customary Law.

21. “A declaratory precedent is one which is merely the application of already existing rule of law.” This was said by : a) Ulpine c) Salmond b) Cicero d) None.

Answers :

1.(a) 2. (c) 3. (c) 4. (d) 5. (b) 6. (a) 7. (d) 8. (d) 9. (b) 10. (b) 11. (a) 12. (c)

13. (b) 14. (d) 15. (c) 16. (d) 17. (a) 18. (b) 19. (a) 20. (a) 21. (c).

1. Which of the following statements is not true ? a) A company is an artificial person created by law. b) A company can do every act like a natural person except the acts which are purely of

personal nature. c) A company can be held liable for violation of the statutory provisions of the Companies

Act. d) A company can be imprisoned for violation of such provision which attract penalty by

way of imprisonment only. 2. Which of the following is not the characteristic of a public company ?

a) It has a separate legal entity. b) It has a perpetual succession.




c) It has a common seal and separate property.

d) Its shares are non-transferable. 3. A and B were the only members of a company who died in a road accident. In this case,

the company comes to end on the death of A and B. a) True c) Partly True. b) False d) Partly False.

4. A company being a legal person is also a citizen under the Constitution of India : a) True c) Partly True b) False d) Partly False

5. A statutory company or corporation is one which is incorporated : a) By an Act of Parliament, c) Under the Companies Act, 2013 b) By an Act of State Legislature d) By either a) or b).

6. In case of a company limited by guarantee, the liability of the members can be enforced: a) At any time when the company so decides b) Only at the time of winding up of the company. c) Only by an order of court. d) Only by an order of Registrar of Companies.

7. A Government Company is one in which 87% or more of the paid up share capital is help by :

a) Central Government alone, b) State Government alone, c) Central and State Government jointly, d) Any of the above.

8. At the time of registration the filing of Articles of Association with the Registrar of Companies is compulsory for : a) Private companies, unlimited companies and companies limited by guarantee b) Unlimited companies only. c) Companies limited by shares only. d) All types of companies.

9. If at the time of registration, a company limited by shares does not file Articles of Association with the Registrar, then a) The company cannot be registered without this document. b) The company is deemed to have adopted “Table A”. c) The company is deemed to have become a company with unlimited liability. d) The directors become liable to be punished with fine at the rate of Rs. 50 for each day

during which the default continues. 10. On 14th July, the Registrar of Companies issued a Certificate of incorporation, but it was

dated 10th July instead of 14th July. From which date the company will legally come into existence ? a) 10th July c) 31st July b) 14th July, d) None of these.

11. A company comes into existence when :- a) The ‘memorandum of association’ is signed by the required number of members. b) The ‘memorandum of association’ is submitted for registration to the Registrar of

Companies. c) It is registered under the Companies Act, 2013. d) It establishes its registered office and starts functioning there form.

12. A company formed for the promotion of commerce, art, science, religion, charity etc. may not use the word ‘limited’ at the end of its name, even if it is a limited company.




a) True c) Partly True

b) False d) Partly False. 13. The Registered office clause of Memorandum of Association contains :-

a) The name of the state in which the registered office of the company is to be situated. b) The name of the city/town only and not that of the state. c) The name of Registrar of companies. d) The complete postal address.

14. The Object clause of Memorandum of Association must be divided into two Sub-Clauses, namely (i) main objects clause, and (ii) other objects clause. a) True c) Partly True b) False d) Partly False.

15. Which of the following statements is correct ? a) In limited companies, the liability of members holding fully paid-up shares is Nil. b) In companies limited by guarantee, the liability of members is limited to the amount

which they have agreed to pay. c) Both a) and b) are correct. d) None of these is correct.

16. For which of the following companies it is not obligatory to have Articles of Association ? a) Public Companies Limited by Shares.

b) Public Companies Limited by Guarantee. c) Private Limited Companies. d) Unlimited Companies.

17. Which of the following statements is correct ? a) The ‘memorandum’ and ‘articles’ are binding on the members in their relation to the

company. b) The ‘memorandum’ and ‘articles’ are binding on the company in their relation to the

members. c) None of these is true. d) Both of these are true.

18. Company’s memorandum and articles are public documents. a) True c) Partly True b) False d) Partly False.

19. In case ‘memorandum’ and ‘articles are inconsistent, then which shall prevail over the others ? a) Memorandum of Association c) The one approved by Registrar b) Articles of Association. D) None of these.

20. A public company having a share capital can start its business on obtaining :

a) Certificate of incorporation and approval of Company Law Board. b) Certificate of commence business and approval of Company Law Board. c) Certificate to Commence Business. d) Approval of High Court.

21. Company has …………………………… succession : a) Longer c) Perpetual b) Continued d) Limited.

22. If company do not follow the principle of separate legal entity ____________ can be done :- a) Lifting of corporate vell c) Principle of natural justice b) Principle of equity d) All of above.

23. Total managerial remuneration in a public company cannot be _______ of net profit : a) 10% c) 18%




b) 11% d) 11.5%.

24. Audit of Government Company is done by C & AG. This statement is : a) True c) Partly True b) False d) Partly False.

25. Any Corporate Body/Association of Firm can be appointed as director of the company. This statement is : a) True c) Partly True b) False d) Partly False.

26. How many members should sign the MOA in case of public company : a) 1 c) 3 b) 5 d) 7.

27. ______________ conceives the idea of the business : a) Promoters c) Directors b) Auditors d) Shareholders.

28. Shares of _____________ company are freely transferable. a) Private company c) Both a) & b). b) Public company. d) None of the above.

29. Life Insurance Corporation Ltd. is formed under : a) Companies Act,2013 c) Both a) and b).

b) Special Act of Parliament d) None of the above. 30. Company’s corporate personality was brought forward in the case of :

a) Macaura V. Northern Assurance Co. Ltd. b) Jons V. Lipman c) CIT V. Meenakshi Mills Ltd. d) Salomon V Salomon and Co. Ltd.

31. Which of the following is a non-trading association ? a) Company c) Club b) Partnership firm d) HUF

32. Promoter is both an agent and trustee of the proposed company. a) True c) Partly True b) False d) Partly False.

33. Liability clause in MOA is required by : a) Company Limited by shares, b) Company Limited by guarantee c) Company limited by both shares and guarantee d) All of the above.

34. Articles of unlimited company is included in :

a) Table E c) Table C b) Table D d) Table A.

35. Private limited company may appoint ___________ number of directors. a) 12 c) 18 b) 3 d) Unlimited.

36. ____________ is to be executed on a non judicial stamp paper. a) Share warrant c) Incorporation certificate b) Power of attorney d) None.

Answers :




1.(d) 2. (d) 3. (b) 4. (b) 5. (d) 6. (b) 7. (d) 8. (a) 9. (b) 10. (a) 11. (c) 12. (a)

13. a) 14. (a) 15. (c) 16. (a) 17. (d) 18. (a) 19. (a) 20. (c) 21. (c) 22. (a) 23. (b)

24. (a) 25. (b) 26. (d) 27. (a) 28. (b) 29. (b) 30. (d) 31. (c) 32. (b) 33. (d)

34. (a) 35. (d) 36. (b).

1. Which of the following statement is correct ? a) The joint shareholders are counted as one member for the membership of a private

company. b) The joint shareholders are counted as one member for the quorum of a meeting. c) The joint shareholders are always counted as different member for all the provision of

the Companies Act. d) Both a) and b) are correct as there are specific provisions to that effect.

2. The subscribers to the Memorandum of Association. a) May become members only if there is a specific provision to that effect in company’s

Articles of Association. b) Become a member as soon as the company is registered. c) Are members irrespective of any formality as to registration etc. d) Can never be the members as their only job is to get the company registered.

3. A person ceases to be a member when the share warrant is issued to him in exchange of fully paid up shares. a) True c) Partly true b) False d) Partly false.

4. Statutory meeting is the first meeting of the company after its incorporation and must be held within. a) 90 days from the date at which the company is entitled to start its business.

b) 6 months from the date at which the company is entitled to start its business. c) 6 months from the date of incorporation. d) 18 months from the date of incorporation.

5. Which of the following statement is not correct ? a) A statutory meeting is held only once in the lifetime of a company. b) It is obligatory for every company (public or private) to held a statutory meeting. c) It is obligatory for public companies, (limited by shares, and limited by guarantee and

having share capital) to hold a statutory meeting. d) A statutory meeting must be held within 6 months from the date on which the

company is entitled to commence business, but it cannot be held within one month from that date.

6. The first annual general meeting of the company must be held with in : a) 6 months of incorporation. b) 6 months from the date at which the company is entitled to start its business. c) 18 months of incorporation. d) 18 months from the date at which the company is entitled to start its business.

7. Every company (whether public or private) is required to hold an annual general meeting. a) True c) Partly true

b) False d) Partly false. 8. Which of the following statement is not correct ?




a) In case the company fails to hold annual general meeting it can be held at the instance

of Central Government. b) An Extra-Ordinary meeting can be called only at the instance of Company Law Board. c) The proper authority for calling a general meeting is the Board of Directors. d) The must be one annual general meeting per year and as many meetings as there are

years. 9. Can the Annual General meeting (A.G.M.) be held on a day which has been declared as a

public holiday by the Central government. a) Yes, but only if the notice of convening the A.G.M. has been issued prior to the

declaration of the holiday. b) No, as the A.G.M. cannot be held on a public holiday. c) Both a) and b), d) None of the above.

10. _________________ is a bridge between BOD and shareholders. a) Directors c) Chartered Accountant b) Company Secretary d) Employees.

11. DIN Stands for : a) Direct Identification Number c) Direct Identity Name b) Director’s Identity Number. d) Director’s Identification Number.

12. It is necessary for the subscribers to hold the qualification shares to be deemed as a director. a) True c) Can’t say b) False d) None of the above.

13. _____________ of the total number of directors shall be non-rotational : a) 1/3rd c) ½ b) 2/3rd d) 1/5th

14. The managing director must be : a) Director c) Officer b) Employee d) Debenture Holder.

15. Which company need not hold statutory meeting : a) Public company having share capital. b) Private company. c) Government company d) Public company not having share capital.

16. Which document is required to be annexed with notice of meeting : a) Explanatory statement c) Proxy form. b) Statutory Report d) All of above.

17. EGM can be called by :-

a) BOD c) Members b) Company Law Appellate Tribunal d) All of above.

18. When a valid requisition is given by member for holding EGM, the BOD should call EGM. a) Within 14 Days c) Within 21 Days. b) Within 15 days d) Within 1 month.

19. The Company Law Appellate Tribunal can call EGM under section : a) 167 c) 169 b) 186 d) 165.

20. Resolution requiring special notice is required : a) For appointment of a person as an auditor other than the retiring auditor at the AGM. b) For removing a Director before the Expiry of the period of his office. c) For both a) and b)




d) For none of the above.

21. Alternate director shall hold office only upto the date of next AGM. a) True c) Partly True b) False d) Partly False.

22. Additional director is studied u/s. ____________________. a) 262 c) 261 b) 313 d) 260.

23. Director can be removed before the expiry of his term by passing a _____________ a) Special resolution c) Both a) and b). b) Ordinary resolution d) None of the above.

24. Shareholders cannot interfere in the general meeting if directors : a) Act bonafide c) Are incompetent b) Are themselves the wrong doers d) Cannot exercise some powers.

25. Company can have both a manager and a Managing Director. a) True c) Partly True b) False d) Partly False.

26. A departmental manager or a branch manager can also be deemed as a director. a) True c) Partly True b) False d) Partly False.

27. Term of office of MD cannot exceed _____________ years at a time. a) 2 c) 4 b) 3 d) 5.

28. If a resolution is to be decided by the way of show of hands :- a) Every shareholder has one vote. b) Every shareholder has as many votes as the shares held by him. c) Both a) and b). d) None of the above.

29. Statutory report should be sent to members at least ____________ clear days before the date of meeting. a) 20 c) 23 b) 21 d) 24.

30. All business transacted at EGM is _________________ business. a) Special c) Both a) and b). b) Ordinary d) None.

31. Both AGM and EGM can be held on a public holiday. a) True c) Partly True b) False d) Partly False.

32. All the proceeding of Board meetings shall be ___________ if proper notice has not been served. a) Valid c) Partly valid b) Void d) Partly Void.

33. Secretary must be a member of : a) ICAI c) ICSI b) ICWA d) None.

34. A whole time secretary has to be appointed by companies having paid up capital of _______________ or more. a) 1 cr c) 4 cr b) 2 cr d) 5 cr.

35. __________________ is known as mouthpiece of Board.




a) Managing director c) Company Secretary

b) Chartered Accountant d) Manager. 36. MCA Stands for :

a) Ministry of Corporate Affairs c) Minister of Corporate Accounts b) Minister of Corporate Affairs d) Ministry of Corporate Accounts.

37. Preference shareholders do not possess the following rights : a) Payment of dividend c) Claim on assets of the company. b) Rights to attend meeting d) Repayment of capital.

38. A secretary in a company, does not perform the role of : a) A coordinator c) An administrative officer b) A legal officer d) A director.

Answers :

1.(d) 2. (b) 3. (a) 4. (b) 5. (b) 6. (c) 7. (a) 8. (b) 9. (a) 10. (b) 11. (d)

12. (b) 13. (a) 14. (a) 15. (a) 16. (d) 17. (d) 18. (c) 19. (c) 20. (c) 21. (b)

22. (d) 23. (b) 24. (a) 25. (b) 26. (b) 27. (d) 28. (a) 29. (b) 30. (a) 31. (b)

32. (b) 33. (c) 34. (d) 35. (c) 36. (a) 37. (c) 38. (d).

1. The objective of the Partnership Act, 1932 is to define and amend the law relating to :

a) Partnership c) Business Collaborations b) Joint Ventures d) All of the above.

2. The Partnership Act, 1932 came into force on :- a) 1st day of April 1932 c) 1st day of January 1932 b) 1st day of October 1932 d) 31st day of December 1932.

3. According to the Partnership Act, “Business” includes : a) Trade c) Profession b) Occupation d) All of the above.

4. The relationship of Partnership arises out of :- a. Agreement b. Act c. Understanding d. All of the above

5. The name under which the partnership business is curried on, is called :- a) Trade mark c) Firm Name b) Partnership firm d) Registered Name.

6. Which of these are not necessary for constituting a partnership ? a) Sharing of business profits c) Two or more persons

b) Mutual agency d) Written contract. 7. Liability of a partner is :-

a) Limited to the extent of his share of the business profits. b) Unlimited c) Limited to the extent of capital. d) Limited to the extent of loan given to the firm.




8. The maximum number of persons permissible for a valid partnership for doing Banking

business is : a) 2 c) 15 b) 10 d) 20.

9. Partnership agreements may be :- a) Expressed c) Neither a) nor b). b) Implied d) Either a) or b).

10. Sharing of profits implies sharing of losses well, unless agreed otherwise. a) True c) False b) Partly True d) None of the above.

11. A partner who has not entered into a partnership agreement and conducts or represents himself as a partner in a firm is called :- a) Sleeping partner c) Working partner b) Partner by estoppels d) Sub-partner.

12. Partners are bound to render true accounts & full information of all things affecting the firm to :- a) Any partner c) Either a) or b) b) Legal Representative of any partner d) To the Government.

13. Every partner is bound to perform _______________ to his duties, in the conduct of the

business. a) Systematically c) Sincerely, b) Diligently d) Effectively.

14. If there is a contract that the partner shall not carry on the business other than that of the firm while he is a partner, such contract is :- a) Valid c) Voidable at the option of the partner. b) Void d) Voidable at the option of the firm.

15. Subject to contract between the partners, the ratio of profits or loss sharing will be : a) Equal c) In the ratio of loans given, if any b) In the ratio of capital contribution d) In the ratio given by the Income Tax Act.

16. Partnership property vests hands of : a) In the partner of the firm. b) In the firm. c) In the continuing partners of the firm. d) In the retiring partners of the firm.

17. Which of the following conditions is not necessary for the exercise of implied authority. a) The act must relate to the business of the firm. b) The act must be done in the firm’s business name,

c) The act must be done in the usual way of carrying on the firm’s business. d) The act must be done in an emergency.

18. To bind the firm under Implied Authority, the act must be done in the _________________ of carrying on the firm’s business. a) Regular way c) Routine way b) Usual way d) Extraordinary way.

19. Which of these acts are within the implied authority of a partner ? a) Acquire immovable property on behalf of the firm. b) Borrowing money on behalf of the firm. c) Enter into partnership on behalf of the firm. d) Transfer immovable property belong to the firm.




20. A third party is not affected by the limitation of implied authority unless he has actual notice

of it. a) True c) False b) Partly True d) None of the above.

21. Acts done by a partner in an emergency do not bind the firm if they do not form part of the partner’s implied authority. a) True c) False b) Partly True d) None of the above.

22. “Notice to acting partner is notice to firm.” This statement is based on the principle of : a) Convenience c) Mutual agency among partners b) Convention d) All of the above.

23. For all acts of the firm done while he is partner, every partner is : a) Jointly liable c) Jointly and severally liable b) Severally liable d) Not liable at all.

24. Which of the following partners are not liable in relation to the firm. a) Partner by holding out c) Sub-partner b) Working partner d) Partner by estoppels. 25. When a partner retires from a firm but does not give a public notice to this effect, he

shall be liable as a partner by holding out until he issues a public notice.

a) True c) False b) Partly True d) None of the above.

26. For the acts of the firm :- a) Minor is personally liable b) Minor’s shares is liable c) Guardian is personally liable. d) There is no liability at all for or on behalf of the minor.

27. When the minor elects not to become a partner he is entitled to sue the partners for his share in the profits and property. a) True c) False b) Partly True d) None of the above.

28. A person can be admitted into an already existing firm. Only with the consent of all the existing partners. a) True c) False b) Partly True d) None of the above.

29. In case of partnership at will, a retiring partner has to give a written notice. a) To the firm c) To all the partners. b) To the working partners. d) To all partners other than working partners.

30. Where a partner in a firm is adjudicated as insolvent :- a) The firm is automatically dissolved. b) The firm is not automatically, c) The firm is also deemed insolvent d) The firm becomes an illegal association.

31. The firm is generally dissolved on the death of a partner. a) True c) False b) Partly True d) None of the above.

32. No public notice is required on the death of a partner : a) True c) False b) Partly True d) None of the above.

33. Dissolution of partnership between all the partners of a firm is called :




a) Dissolution of partnership c) Dissolution of firm name

b) Dissolution of firm. d) Reconstitution of firm. 34. Which of the following do not constitute ground for dissolution by court ?

a) Insanity of the partner, b) Incapacitation of partner. c) Admission of minor to the benefits of partnership. d) Heavy losses of the firm.

35. Upon dissolution of firm, losses, including deficiencies of capital, shall be paid first out of profits and then :- a) Out of profits, b) Out of capital c) By the partners individually in their profit sharing ratio. d) By the partners equally.

36. The accounting rule in respect of loss arising due to insolvency of a partner is dealt within : a) Derry vs. Peek c) Garner vs. murray b) Carlill vs. carbolic Smoke Ball Co. d) Chinnaiah vs. Ramaiya.

37. A partner is entitled to return of premium even when the dissolution is mainly due to his own misconduct. a) True c) False

b) Partly True d) None of the above. 38. Upon dissolution, the goodwill of the firm :-

a) Must be sold separately, b) Must be sold along with the assets to the firm only. c) May be sold either separately or along with the assets of the firm. d) Cannot be sold at all.

39. A partnership firm has to be compulsorily registered in order to commerce its business. a) True c) False b) Partly True d) None of the above.

40. Application for Registration of firms should be signed by : a) All the partners or their agents, b) Majority of the partners or their agents. c) All working partners or their agents. d) All minor partners.

41. An unregistered firm cannot file a suit against to enforce any right arising from a contract. a) Partner, b) c) Minor admitted to benefits of partnership. c) Third party,

d) Out going partner. 42. Non – registration of the firm does not affects the right of the firm to institute a suit or claim

of set – off not exceeding :- a) Rs. 100 c) Rs. 10,000 b) Rs. 1,000, d) Rs. 50,000.

Answers :

1.(a) 2. (b) 3. (d) 4. (a) 5. (c) 6. (d) 7. (b) 8. (b) 9. (d) 10. (a) 11. (b) 12. (c)

13. (b) 14. (a) 15. (a) 16. (b) 17. (d) 18. (b) 19. (b) 20. (a) 21. (c) 22. (c) 23. (c)




24. (c) 25. (a) 26. (b) 27. (a) 28. (a) 29. (c) 30. (b) 31. (a) 32. (a) 33. (b) 34. (c)

35. (b) 36. (c) 37. (c) 38. (c) 39. (c) 40. (a) 41. (c) 42. (a).

1. Which one of the following is correct ? a) Indian Contract Act, 1882 b) Indian Contract Act., 1972 c) Indian Contract Act, 1872 d) Indian Contract Act, 1888.

2. The Law of Contract is nothing but : a) A Child of Commercial dealing, c) A Child of day to day Politics b) A Child of Religion, d) A Child of Economics.

3. The Indian Contract Act, 1872 extends to : a) Whole of India, b) Whole of India excluding Jammu and Kashmir, c) North India Only. d) South India Only.

4. To form a valid contract, there should be atleast : a) Two parties c) Four parties b) Three parties d) Five parties.

5. Contractual rights and duties are created by :- a) State c) Parties, b) Statute d) Custom or Usage.

6. Every Contract is an agreement but every agreement is not a contract.’ This statement is : a) Wrong b) Correct c) Correct Subject to certain exceptions d) Partially correct.

7. Agreement is defined in section of the Indian Contract Act, 1872. a) 2(c) c) 2 (g) b) 2 (e) d) 2 (i)

8. As per section 2(e) of the Indian Contract Act, “Every Promise and every set of promise forming the consideration for each other is a/an. a) Contract c) Offer. b) Agreement d) Acceptance.

9. A promises to deliver his watch to B and, in return, B Promise to pay a sum of Rs. 2,000. There is said to be a/an : a) Agreement c)Acceptance

b) Proposal d) Offer. 10. An Agreement is :-

a) Offer c) Offer + Acceptance + Consideration b) Offer + Acceptance d) Contract.

11. A Contract is :- a) A promise to do something or abstain from doing something. b) A communication of intention to do something or abstain from doing something. c) A set of promises. d) An agreement enforceable by Law.




12. Contract is defined as an agreement enforceable by Law, vide section …….. of the Indian

Contract Act. a) 2(e) c) 2 (h) b) 2 (f) d) 2 (i)

13. Which of the following is false ? An offer to be Valid must : a) Contain a term the non-compliance of which would amount to acceptance : b) Intend to create legal relations. c) Have certain and Unambiguous terms. d) Be communicated to the person to whom it is made.

14. Over a cup of coffee in a restaurant, X Invites Y to dinner at his house on a Sunday. Y hires a taxi and reaches X’s house at the appointed time, but x fails to perform his promise. Can Y recover any damages from X?. a) Yes, as y has suffered, b) No, as the intention was not to create legal relation. c) Either a) or b). d) None of these.

15. Which one of the following is the best statement about the Indian Contract Act. ? a) It is an exhaustive code containing the entire law of contract. b) It is an Act to amend certain parts of the law relating to contracts.

c) It is an Act to define certain parts of the law relating to contracts and contains only the general principles of contract.

d) It is not an exhaustive code containing the entire law of contracts being an Act to define and amend certain parts of law relating to contract.

16. Which of following is a contract ? a) A engages B for a certain work and promises to pay such remuneration as shall be fixed.

B does the work. b) A and B promise to marry each other. c) A takes a Seat in a public vehicle. d) A invites B to a card party. B accepts the invitation.

17. For binding contract both the parties to the contract must : a) Agree upon the same thing in the same sense. b) Put the offer and counter offers. c) Stipulate their individual offer. d) Agree with each other.

18. Which one of the following has the correct sequence : a) Offer, acceptance, consideration, offer. b) Offer, acceptance, consideration, contract,

c) Contract, acceptance, consideration, offer. d) Offer, consideration, acceptance, contract.

19. Goods displayed in a Shop window with a price label will amount to : a) Offer c) Invitation to offer. b) Acceptance of offer. d) Counter offer.

20. What can a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as ? a) An offer c) An Invitation to offer b) An obligation d) A promise to make available the books

At the listed place. 21. Which one of the following statement about a valid acceptance of an offer is incorrect ?

a) Acceptance should be absolute and unqualified.




b) Acceptance should be in the prescribed manner.

c) Acceptance should be made while the offer is subsisting d) Acceptance should be communicated.

22. A Counter offer is : a) A rejection of the original offer c) A bargain b) An acceptance of the offer. d) An invitation to treat.

23. A person making a proposal is called : a) Promisor c) Contractor b) Vendor d) Promise.

24. Which one of the following will constitute a valid acceptance ? a) An enquiry as to fitness of the subject matter of contract. b) A provisional acceptance. c) Addition of a superfluous term, while accepting an offer. d) A conditional acceptance.

25. X Offers by a Letter to sell his car to Y for Rs. 95,000. Y at the some time, offers by a letter to buy X’s car for Rs. 15,000. The two letters cross each other in the post. Is there a concluded contract between X and Y ? a) Yes, there is a concluded contract between X and Y. b) No, only crossing of offers.

c) Can’t say d) None of these.

26. S offers to sell B his car for Rs. 50,000. T, standing nearby, says,” I will take it if B does not take it. B is not interested in the car. What will be the position if T says to S “Here is the money, I take the car.” a) There is a contract between S and T b) There is no contract between S and T c) S may or may not accept the offer. d) Both b) and c).

27. Which one of the following statement is true ? a) Offer and acceptance are revocable b) Offer and acceptance are irrevocable. c) An offer can be revoked but acceptance cannot d) An offer cannot be revoked but acceptance can be revoked.

28. P advertises in a daily newspaper that he will give a prize of Rs. 1,000 to the first person to swim the English channel and back during the month of August. F, who has read the advertisement, sets off from Dower on 1st August and reaches the coast of France on 2nd August. On that day, a further advertisement appears in the same newspaper stating that

the offer of the prize has been with drawn. On 3rd August F completes the return swim to England. Can F recover the prize ? a) Yes, as the second advertisement is ineffective so far as F is concerned. b) No, as the offer was revocated. c) F can only claim for damages. d) None of the above.

29. The Communication of acceptance through telephone is regarded as complete when : a) Acceptance is spoken on phone. b) Acceptance comes to the knowledge of party proposing. c) Acceptance is put in course of transmission. d) Acceptance has done whatever is required to be done by him.




30. An auctioneer advertisement in a newspaper that a sale of office furniture would be held at

Delhi. A broker of Bombay, reached Delhi on the appointed date and time. But the auctioneer withdrew all the furniture from the auction sale. The broker sues him for his loss of time and expenses. Will he succeed ? a) Yes, he will succeed. c) Can’t say b) No, he will not succeed, d) None of these.

31. Which one of the following falls into the category of offer ? a) Newspaper advertisement regarding sale. b) Display of goods by a shopkeeper in his window with prices marked on them c) An advertisement for a concert. d) Announcement of reward to the public.

32. A sees an article marked “Price Rupees Twenty” in B’s shop. He offers. B Rs. 20 for the article. B. refuses to sell saying the article is not for sale. Advise A. : a) A cannot force B to sell the article at Rs. 20 b) A can force B to sell the article at Rs. 20. c) A can claim damages d) A can sue B in the Court.

33. Which one of the following statement is incorrect ? a) Oral acceptance is a valid acceptance.

b) Mere silence is not acceptance c) Acceptance must be communicated d) Acceptance may not be in the prescribed manner.

34. ‘A’ Offered a reward of Rs. 1,000 for recovery of some valuable missing article ‘B’ who did not know of this offer, found the articles and gave the same to ‘A’. a) As there is no acceptance of an offer due to want of knowledge, B is not entitled to get

the reward of Rs. 1,000. b) Giving delivery of articles to ‘A’ amounts to an acceptance and hence ‘B’ is entitled to get

the reward of Rs. 1,000. c) Giving delivery of articles to ‘A’ amounts to performance of condition precedent to an

offer and hence there is valid acceptances. ‘B’ must get the reward of Rs. 1,000. d) In the absence of any Legal obligation on ‘A’ no claim for reward of Rs. 1,000 is

maintainable by ‘B’. 35. Consider the following statement :

a) There is no difference between the English Law and Indian Law with regard to acceptance through post.

b) Both Under the English Law and the Indian Law a contract is concluded when the letter of acceptance is posted.

c) Under the Indian Law when the Letter of acceptance is posted it is completed only as against the proposer.

d) Which of the above statement is/are correct ? a) 1 and 2 b) 2 alone c) 3 alone d) None.

36. In Commercial and business agreements, the intention of the parties to create legal relationship is : a) Presumed to exist c) not relevant or all b) To be specifically expressed in writing d) Not applicable.

37. An agreement is a Voidable Contract when it is : a) Enforceable b) Enforceable by Law at the option of the aggrieved party c) Enforceable by both the parties




d) Not enforceable at all.

38. A Contract Creates : a) Rights in personam c) Only rights and no obligation b) Rights in rem d) Only Obligations and no rights.

39. An agreement not enforceable by Law is said to be void under section _____________ of the Indian Contract Act. a) 2(a) c) 2(f) b) 2(b) d) 2 (g)

40. Agreements that do not give rise to contractual obligations are not contracts : a) True c) False b) Partly True d) None of the above.

41. Agreements of a social nature of domestic nature do not contemplate legal relationship and as such are not contracts, which can be enforced. a) True c) False b) Partly True d) None of the above.

42. When the contract is perfectly valid in its substance but cannot be enforced because of certain technical defects. This is called a/an – a) Unitaleteral Contract c) Unenforceable Contract b) Bilateral Contract d) Void Contract.

43. The term “Proposal or offer” has been defined in – of the Indian contract Act, a) Section 2(a) c) Section 2(c) b) Section 2(d) d) Section 2 (d).

44. The term “Promise” has been defined in --- of the Indian Contract Act. : a) Section 2(a) c) Section 2(c) b) Section 2(b) d) Section 2 (d)

45. The person making the proposal is called : a) Promisor c) Participator b) Promises d) Principal.

46. Offer implied from conduct of parties or from circumstances of the case is called – a) Implied offer c) General offer b) Express offer d) Specific offer.

47. An offer made to a – (i) Specific person, or (ii) a group of persons is known as – a) Standing offer c) Special offer b) Specific offer d) Separate offer.

48. Communication of proposal is complete when it comes to the knowledge of – a) The person to whom it is made c) Either a) or b) b) The proposer d) The Court.

49. Terms of an offer must be :- a) Ambiguous c) Uncertain b) Definite d) Vague

50. Offer should not contain a term, the non – Compliance of which would amount to acceptance. a) True c) False b) Partly True d) None of the above.

51. When two persons make identical offers to each other, in ignorance of each other’s offer, it is called – a) Cross offers c) Direct offers b) Implied offers d) Express offers.

52. When there is a Cross offer, the original offer terminates.




a) True c) False

b) Partly True d) None of the above. 53. An offer is revoked –

a) By the death or insanity of the proposer. b) By Lapse of time. c) By Communication of notice of revocation d) All of these.

54. A Change in law or Circumstance rendering the original offer unlawful or impossible, will lead to termination of the offer. a) True c) False b) Partly True d) None of the above.

55. Acceptance can precede an offer : a) True c) False b) Partly True d) None of the above.

56. Acceptance in ignorance of the offer is :- a) Valid c) Void b) Invalid d) Voidable.

57. Acceptance should be given within :- a) The time specified by the Offerer

b) A reasonable time c) Such time as the offer lapses d) All of the above.

58. An acceptance on telephone should be – a) Heard by the offeror c) Understood b) Audible to the offeror d) All of the above.

59. Section --- of the Indian Contract Act defines “Consideration”. a) Section 2(a) c) Section 2(c) b) Section 2 (b) d) Section 2 (d)

60. Consideration must move at the desire of : a) The promisor c) The promisor or any third party b) The promise d) Both the promisor and the promise

61. Consideration in a contract : a) May be past, present or future c) Must be present only. b) May be present or future only. d) Must be future only.

62. Past Consideration is valid in --- a) England Only c) Neither in England nor in India b) India only d) both in England and India.

63. Agreement without consideration is valid, when made : a) Out of love and affection due to near relationship b) To pay a time barred debt. c) To compensate a person who has already done something voluntarily. d) All of the above.

64. A debt barred by limitation cannot be recovered. Hence, a promise to pay such a debt is without any consideration and hence invalid. a) True c) False b) Partly True d) None of the above.

65. Inadequacy of consideration does not render a contract invalid. a) True c) False b) Partly True d) None of the above.




66. If only a part of the consideration or object is unlawful, the Contract is :-

a) Valid to the extent the same are lawful b) Void to the extent the same are unlawful. c) Valid as a whole d) Void as a whole.

67. The expression “Privity of contract” means – a) A Contract is Contract between the parties only. b) A Contract is a private document c) Only private documents can be contracts d) The contacts may be expressed in some usual and reasonable manner.

68. Under the Indian Contract Act, a third person – a) Who is the beneficiary under the Contract can sue b) From whom the consideration has proceeded can sue c) Can not sue even if the consideration has proceeded from him. d) Can not sue at all for want of privity of contract.

69. In India, a person who is stranger to the Consideration : a) Can sue based on the Contract b) Can not sue based on the Contract c) Can sue depending on the Conditions

d) Can sue if permitted by the court. 70. The Beneficiary of a Trust or other interest in specific immovable property, can enforce it

even if he I s not a party named in the Trust Deed. a) True c) False b) Partly True d) None of the above.

71. Capacity to Contract has been defined in :- a) Section 10 c) Section 12 b) Section 11 d) Section 25.

72. Competency to Contract means :- a) Age of the parties c) Both a) and b) b) Soundness of mind of the parties d) Intelligence of the parties.

73. Which of the following is not Competent to Contract ? a) A Minor b) A person of unsound mind c) A person who has been disqualified from contracting by some Law d) All of these.

74. A minor’s agreement is void. This was held in the case of – a) Mohiri Bibee V. Dharmadas Ghosh

b) Nihal Chand V. Jan Mohammed Khan c) Suraj Narain V. Sukhu Aheer. d) Chinnaiya V. Ramaiya.

75. The age of majority for the purpose of the Indian Contract Act is – a) 16 years for girls & 18 years for boys b) 18 years for girls & 21 years for boys c) 18 years d) 21 years.

76. A minor’s agreement can be ratified or attaining majority. a) True c) False b) Partly True d) None of these.




77. …………………………………. are goods suitable to the condition in the life of the minor, and to his

actual requirements at the time of sale and delivery. a) Necessaries c) Life Style Products b) Goods d) Luxuries.

78. “Consensus – ad – idem” means – a) General Consensus b) Meeting of minds upon the same thing in the same sense. c) Reaching an agreement. d) Reaching of contract.

79. A Contract which is formed without the free consent of parties, is – a) Valid c) Voidable b) Illegal d) Void ab-initio

80. Contracts under unilateral mistake are ---- if such mistake is caused by the fraud or misrepresentation of the other party. a) Valid c) Illegal b) Void d) Unenforceable.

81. Mistake as to foreign law is treated in the same manner as --- a) Mistake of India Law c) Misrepresentation b) Mistake of Fact, d) Fraud.

82. If an agreement suffers from any uncertainty. It is – a) Voidable c) Unenforceable b) Void d) Illegal.

83. All illegal agreements are – a) Void-ab-initio c) Contingent b) Valid d) Enforceable.

84. A promise to give money or money’s worth upon the determination or ascertainment of an uncertain event is called – a) Wagering Agreement c) Illegal Agreement b) Unlawful Agreement d) Voidable Agreement.

85. In the States of Gujarat and Maharashtra, collateral transactions to a wagering agreement are :- a) Voidable c) Valid and Enforceable b) Illegal and Void d) Contingent.

86. A Contingent Contract is a contract to do, or not to do something if some event, collateral to such contract – a) Happens c) Neither a) nor b) b) Does not happen d) Either a) or b).

87. Which of these parties cannot demand performance of promise? a) Promisee b) Any of the Joint Promisees. c) On the death of a Promisee, his Legal Representative. d) Stranger to the Contract.

88. If a new contract is substituted in place of an existing contract it is called – a) Alteration c) Novation b) Rescission d) Waiver.

89. The phrase “Quantum Meruit” literally means – a) As much as is earned c) A Contract for the sale b) The fact in itself d) As much as is gained.




90. Damages awarded to compensate the injured party for the actual amount of loss suffered

by him for breach of contract are called – a) General / Ordinary Damages c) Vindictive Damages b) Special Damages d) Nominal Damages

91. A finder of lost goods is a – a) Bailor c) True Owner b) Bailee d) Thief.

92. Which of the following is the essential ingredient of contract of indemnity : a) Contract to make good the loss b) Loss must be caused to the indemnity holder c) Loss may be caused by promise or any other person. d) All of the above.

93. When the goods are delivered by one to another by way of security for the money borrowed, then it is technically known as : a) Hire c) Pledge b) Pawnee d) None of the above.

94. Which of the following is not a charge on the property : a) Pledge c) Mortgage b) Bailment d) Hypothecation.

95. How agency is created : a) By Direct appointment c) By necessity b) By implication d) All of the above.

96. The delivery of goods by one person to another as security for the payment of a debt is called – a) Bailment c) Mortgage b) Pledge d) Hypothecation.

Answers :

1.(c) 2. (a) 3. (b) 4. (a) 5. (c) 6. (b) 7. (b) 8. (b) 9. (a) 10. (b) 11. (d) 12. (c)

13. (a) 14. (b) 15. (c) 16. (a) 17. (a) 18. (b) 19. (c) 20. (c) 21. (c) 22. (a) 23. (a)

24. (a) 25. (b) 26. (d) 17. (a) 28. (a) 29. (b) 30. (b) 31. (d) 32. (a) 33. (d) 34. (a)

35. (c) 36. ( a) 37. (b) 38. (a) 39. (d) 40. (a) 41. (a) 42. (c) 43. (a) 44. (b) 45. (a)

46. (a) 47. B) 48. (a) 49. (c) 50. (a) 51. (a) 52. (a) 53. (d) 54. (a) 55. (c) 56. (b)

57. (d) 58. (d) 59. (d) 60. (a) 61. (a) 62. (b) 63. (d) 64. (c) 65. (a) 66. (d) 67. (a)

68. (a) 69. (a) 70 (a) 71(b) 72. (c) 73. (d) 74. (a) 75. (c) 76. (c) 77. (a) 78. (b)

79. (c) 80. (b) 81. (b) 82. (b) 83. (a) 84. (a) 85. (b) 86. (d) 87. (d) 88. (c)

89. (a) 90. (a) 91. (b) 92. (d) 93. (b) 94. (b) 95. (d) 96. (b).

1. The objective of the Sale of Goods Act, 1930 is to define and amend the law relating to : a) Sale of Immovable Properties c) Agreements to Sell b) Sale of Goods d) All of the above.

2. The Sale of Goods Act, 1930 extends to the whole of India, except the state of :- a) Maharashtra c) Tamilnadu




b) Jammu and Kashmir d) Uttar Pradesh.

3. The Sale of Goods Act, 1930 came into force in – a) 1st day of July, 1930 c) 1st day of January, 1930 b) 1st day of September, 1930 d) 31st day of December, 1930.

4. The unrepealed provisions of the ____________ Act shall continue to apply to contracts for the sale of goods, save insofar as they are inconsistent with the express provisions of the Sale of Goods Act. a) Transfer of Property Act c) Indian Contract Act b) Indian Evidence Act. d) Partnership Act.

5. The term “Goods” is defined in section ______________ of the Sale of Goods Act, 1930. a) 2(5) c) 2(7) b) 2(6) d) 2(8).

6. Which of the following are not included in the term “Goods” under the Sale of Goods Act – a) Stock and Shares c) Growing Crops, Gross etc. b) Actionable Claims d) Personal Use of Property.

7. Transfer of Actionable claim(s) is governed by the provisions of the Sale of Goods Act. a) True c) False b) Partly True d) None of the above.

8. “Jubilee Coins” are goods within the meaning of Section (27) of the Sale of Goods Act.

a) True c) False b) Partly True d) None of the above.

9. Under the Sale of Goods Act, “ …………………………… Goods” means goods which ae not in existence at the time of making the contract of Sale. a) Ascertained Goods c) Specific Goods b) Future Goods d) Perishable Goods.

10. To constitute a valid sale, there must be atleast :- a) One Party c) Three Parties b) Two Parties d) Four Parties.

11. When goods are given by the buyer as consideration for the goods received from the seller it is called :- a) Sale c) Barter b) Agreement to sell d) Bailment.

12. In an Agreement to sell, the property in goods is transferred in :- a) Past c) Future b) Present d) There is no transfer to property at all.

13. “Contract of Sale” under section 4 of the Sale of Goods Act, 1930 comprises of :- a) Both executor and executed contracts of sale

b) Executory contract of sale c) Executed contract of sale d) Concluded contract of sale.

14. In an agreement to sell, where goods lie with the Buyer, the risk of loss of goods remains with :- a) Either Buyer or Seller c) Seller only b) Buyer only d) Buyer and Seller to the extent of their shares.

15. Where goods are not specific and ascertainable at the time of the making of the contract, it shall :- a) Become void b) Become voidable at the option of the buyer c) Operate as an agreement to sell




d) Become a valid contract of sale.

16. Section 8 of the Sale of Goods Act, dealing with goods perishing before sale, in its application is :- a) Confined to contact of sale c) Either a) or b) b) Confined to agreement to sell d) Neither a) nor b).

17. Under Sec. 8 of the sale of Goods Act, 1930 a contract of sale of goods can be avoided where the goods have perished / damaged :- a) Due to the fault neither of the Buyer nor the Seller. b) Due to the fault of the Buyer. c) Due to the fault of the Seller d) Due to the fault of either the Buyer or the Seller.

18. In a contract of sale, the price may be :- a) Fixed by the contract b) Agreed to be fixed in a manner thereby agreed. c) Determined by course of dealings between the parties d) All of the above.

19. The prima facie evidence of a “Reasonable Price” u/s of the Sale of Goods Act. is _____. a) Market Price c) Price as determined by the court b) Current price d) Reuse Price.

20. Under Section 11 of the Sale of Goods Act, 1930 the time of payment can be of the essence of the contract :- a) By agreement between the parties b) By operation of law c) Both a) and b). d) Either a) or b).

21. Condition or warranty in a contract of sale, constitutes stipulation with reference to __________. a) Time c) Goods b) Price d) Delivery.

22. A “Warranty” under the Sale of Goods Act, has been defined as a stipulation __________ a) Collateral to the main purpose of the contract. b) With regard to time, c) Essential to the main purpose of the contract. d) All of the above.

23. The breach of a “Condition” in a contract of sale of goods give the right to _______ a) Repudiate the contract c) Either a) or b), b) Claim for damages only d) Both a) and b).

24. In cases where there is a breach of condition by the seller, the buyer :- a) May retain the goods though he has the right to reject them. b) Has no right to retain the goods but only to reject the goods. c) Has no right to reject the goods d) Has no remedy at all.

25. The Buyer shall have and enjoy quiet possession of the goods. This is an __________ u/s. 14 of the Act. a) Implied Warranty as to Title b) Implied Condition as to Title c) Implied Warranty as to Possession. d) Implied Condition as to Possession.




26. In case of sale by description, there is an implied ___________ that the goods shall

correspond to description. a) Warranty c) Stipulation b) Condition d) Description.

27. In a sale of goods by description, it is sufficient that the goods are ______ a) Fit for the purpose for which they were wanted though not in accordance to

description. b) Merchantable though not in accordance to description c) Wholesome, even if they do not correspond to description d) The same as that of their description.

28. Implied condition as to quality or fitness does not apply if ---- a) Buyer discloses to the seller, the exact purpose for which goods are required. b) Buyer indicates to the seller that he relies on the seller’s skill or judgement c) Seller’s business is to sell goods of such description. d) Buyer reserves the right to examine the goods and check its quality.

29. Implied condition as to merchantable quality applies to sale of goods --- a) Under a patent or other trade name. b) By description only. c) Either a) or b).

d) Both a) and b). 30. The principle of “Caveat Empto” as found in Sec. 16 of the Sale of Goods Act, means that the

: a) Buyer must take care c) Seller must take care. b) Buyer must take a chance d) Seller must take a chance.

31. In case of _______________ goods, property passes to the buyer, only when the goods are ascertained. a) Future c) Contingent b) Specific d) Unascertained.

32. The process of identifying the goods and setting apart as per the intended quality or description is called : a) Identification c) Ascertainment b) Procurement d) Allocation.

33. In a sale of specific or ascertained goods the property there in is transferred to the buyer :- a) Upon delivery of goods b) Upon payment of price c) At such time as the parties intend it to be transferred. d) At such time as decided by the court.

34. For passing of property in respect of specific or ascertained goods, the interaction of the parties can be ascertained from :- a) Terms of the contract c) Circumstances of the case b) Conduct of the parties d) All of the above.

35. For passing of property in goods, the goods should be in a :- a) Deliverable state c) Consumable state b) Non-deliverable state d) Ready state.

36. Where the goods are to be delivered in future and the seller becomes insolvent before any appropriation is made, the property in goods passes to the buyer and the buyer acquires interest in the goods. a) True c) False b) Partly true d) None of the above.




37. Delivery of goods to the carrier for the purpose of transmission to the buyer automatically

means that the property in goods vest in the buyer. a) True c) False b) Partly True d) None of the above.

38. In cases of goods sent on approval basis, the goods are at the __________, if they perish in an inevitable accident. a) Buyer’s Risk c) Combined Risk of Buyer and Seller b) Seller’s Risk d) Carrier’s Risk.

39. Risk prime facie passes with :- a) Property or ownership c) Verification and delivery b) Completed agreement d) Payment of price.

40. The Latin Maxim “Nemo Dat Quod non Habet” means :- a) No man can pass a better title than he has b) Let the Buyer beware c) No consideration – No contract d) Ignorance of law is no excuse.

41. A finder of goods has the power to sell the goods to give good title to the buyer, if the owner of goods cannot be found with – a) Ordinary diligence c) Due diligence

b) Reasonable diligence d) Lack of diligence. 42. In case of a company under liquidation, and sale is made by the Receiveror Liquidator of the

company --- a) Company retains title in goods. b) Buyer gets a good title to goods c) Receiver / Liquidator gets a goods title to goods. d) There is no sale at all.

43. When the seller causes a change in the possession of goods without any change in their actual and visible custody, it is a case of --- a) Actual Delivery c) Constructive Delivery b) Symbolical Delivery d) Forward Delivery.

44. Where the seller is bound to send the goods to the buyer as per the agreement, and there is no specific time limit goods shall be delivered within – a) A suitable time c) Adequate time b) A minimum d) A reasonable time.

45. In case of excess delivery, i.e. more than the contracted quantity, the Buyer can --- a) Reject in full b) Accept the contract quantity and reject the excess

c) Accept the whole d) Either a) or b) or c).

46. Where the seller fails to give notice to the buyer u/s 39(3), the risk during sea-transit lies with the --- a) Buyer c) Carries b) Seller d) Insurer.

47. Unless otherwise agreed, where goods are delivered to buyer and he refuses to accept them (having the right to do so), the buyer is not bound to return them to the sealer. a) True c) False b) Partly True d) None of the above.

48. Even if a substantial portion of the price is paid and only a small balance is pending, the seller is still regarded as an unpaid seller.




a) True c) False

b) Partly True d) None of the above. 49. The right of lien is available to the unpaid seller only when –

a) He is not in possession of the goods b) He is in possession of the goods c) He has delivered the goods to the carrier/transport d) He has delivered the goods to the buyer.

50. Once possession is lost, right of lien of the unpaid seller is also lost. This statement is --- a) True c) False. b) Partly True d) None of the above.

51. Right of stoppage in transit can be exercised by the unpaid seller, where the buyer – a) Is solvent c) Either a) or b) b) Becomes insolvent d) Neither a) nor b).

52. Goods – in – transit can be stopped for – a) Price b) Any other expenses, e.g. Godown charges, Interest, etc. c) Both a) and b). d) Either a) or b).

53. If no notice is given to the original buyer of the intention to re-sell, the unpaid seller –

a) Cannot claim any damages, b) Has to pay to the original buyer, the profits, if any, on re-sale c) Either a) or b) d) Both a) and b).

54. Generally, where the buyer has paid the price and seller refuses to deliver the goods, buyer can sue the seller for – a) Specific performance of the contract, b) Delayed delivery of goods, c) Refund of price already paid d) Non-acceptance of goods.

55. In the case of ______________, the sale may be notified to be subject to a reserve or upset price. a) Sale by description c) Sale by sample b) Sale by auction d) Sale by estoppels.

56. The main object of a contract of sale is --- a) Transfer of possession at goods b) Transfer of property in goods from seller to buyer c) Delivery of goods

d) Payment of price. 57. Following is not the right of an unpaid seller against the goods :

a) Lien c) Right of stoppage b) Right of resale d) Claim damages.

Answers :

1.(d) 2. (b) 3. (a) 4. (c) 5. (c) 6. (d) 7. (c) 8. (c) 9. (b) 10. (b) 11. (c) 12. (c)

13. (a) 14. (c) 15. (a) 16. (a) 17. (c) 18. (d) 19. (a) 20. (a) 21. (c) 22. (a) 23. (d)

24. (a) 25. (c) 26. (b) 27. (d) 28. (d) 29. (a) 30. (a) 31. (d) 32. (c) 33. (c) 34. (d)

35. (a) 36. (c) 37. (a) 38. (b) 39. (a) 40. (a) 41. (b) 42. (b) 43. (b) 44. (d) 45. (d)




46. (b) 47. (a) 48.(a) 49. (b) 50. (a) 51.(b) 52. (a) 53. ((d) 54. (c) 55. (b) 56. (b)

57. (d) .

1. The Negotiable Instruments Act makes specific mention of three instruments, namely cheque, bill of exchange and : a) Promissory note c) Bank draft b) Hundi d) Customary Note.

2. In legal terms, a person who receives a negotiable instrument in goods faith and for valuable consideration is known as :- a) Holder c) Holder in due course b) Holder for value d) Holder in rights.

3. A negotiable instrument in which no time for payment is specified is payable : a) After acceptance c) After one month b) After sight d) On demand.

4. A bill of exchange payable to bearer on demand is – a) Valid c) Invalid b) Voidable d) Conditional.

5. A person who is directed to pay the amount of bill of exchange is known as --- a) Drawer c) Payee

b) Drawee d) Creditor. 6. A person can become an acceptor for honour of a bill of exchange only if his name is

mentioned in the bill. a) True c) Partly True b) False d) Partly False.

7. A negotiable instrument drawn in favour of a minor is --- a) Void c) Valid b) Voidable d) Invalid.

8. All cheques are bills of exchange, but all bills of exchange are not cheques. a) True c) Partly True b) False d) Partly False.

9. A person becomes a ‘holder in due course’ of a negotiable instrument if he receives it : a) In good faith c) Before maturity b) For value d) All of the above.

10. A negotiable instrument payable to order can be transferred by : a) Simple delivery c) Endorsement and delivery b) Endorsement d) Registered post.

11. An endorsement made by an endorser by signing his name and also by writing the name of

the endorsee, is known as : a) General endorsement c) Restrictive endorsement b) Special endorsement d) None of these.

12. When during the course of negotiation, the negotiable instrument comes back to the original endorser it is known as ________________. a) Negotiation back c) Facultative endorsement b) Reserve endorsement d) Back recourse endorsement.

13. On the acceptance of the bill of exchange by the drawee, the liability of the drawer becomes : a) Primary c) Extinct




b) Secondary d) None of these.

14. On the dishonour of a cheque due to insufficient funds, the criminal liability of the drawer is the fine only which may extend to double the amount of cheque, and there is no imprisonment. a) True c) Partly True b) False d) Partly False.

15. The presentment for acceptance is required in case of a ___________. a) Bill of exchange c) Cheque b) Promissory note d) Both a) and b).

16. A failure to present a negotiable instrument for payment as per the rules, discharges ____________. a) All parties to the instrument, b) All parties except those secondarily liable c) All parties except those primary liable d) None of the parties to the instrument.

17. A bill of exchange is treated as dishonoured due to non – acceptance, where the drawee. a) Does not accept within 48 hours of presentment b) Is incompetent to contract c) Gives a conditional acceptance

d) In all the above cases. 18. In case of dishonour of a cheque, the holder’s remedy is against the :

a) Drawee of cheque c) Endorsee of cheque b) Drawer of cheque d) Both a) and b).

19. In case of dishonour of a bill of exchange or a cheque, the ‘noting’ is compulsory to recover the amount from the liable parties : a) True c) Partly True b) False d) Partly False.

20. In which of the following cases of forgery a banker is discharged from liability by making a payment in due course. a) Payee’s endorsement c) Both a) and b) b) Drawer’s signatures d) None of these.

21. Material alteration of a negotiable instrument without the consent of the parties, discharge the parties who have become liable : a) After such alteration c) Because of alteration, b) Prior to such alteration d) Without such alteration.

22. Which of the following is not a material alteration ? a) Alteration of date c) Alteration of time of payment

b) Alteration of amount d) Alteration correcting clerical mistake. 23. A cheque is said to contain a general crossing when two parallel lines are drawn across the

face of the cheque. a) Without any words c) With words ‘not negotiable’ b) With words & Co. d) In all the above cases.

24. The payment of a crossed cheque can be obtained : a) At the counter c) By the payee only b) By depositing in account d) Both a) and c).

25. In case of dishonour of a cheque due to insufficient funds in drawer’s account, the drawer is liable to imprisonment which may extend upto : a) Three months c) One year b) Six months d) Two year.




26. A hundi which is payable to the holder or bearer is known as :

a) Nam Jog Hundi c) Jawabi Hundi b) Firman Hundi d) Dhani Joh Hundi.

Answers :

1.(a) 2. (c) 3. (d) 4. (c) 5. (b) 6. (b) 7. (c) 8. (a) 9. (d) 10. (c) 11. (b) 12. (a)

13. (b) 14. (b) 15. (a) 16. (c) 17. (d) 18. (b) 19. (b) 20. (a) 21. B) 22. (d) 24. (b)

25. (d) 26. (d).

1. The word Entrepreneur has a …………………. Origin. a) Latin c) German b) French d) Indian.

2. The word “entreprede” means : a) To undertake c) To enter into business

b) To manage d) None. 3. Anybody who wants to work for himself is known as :

a) Entrepreneur c) Manager b) Intrapreneur d) None.

4. Which of these is not an element of entrepreneurship ? a) Innovation c) Profit making. b) Risk taking d) Visionary.

5. Who viewed entrepreneurship as a force of “creative destruction”. a) Schumpeter c) Peter Drucker b) Cantillon d) None of these.

6. Entrepreneurship is neither a science nor an art was expressed by : a) Schumpeter c) Charles Darwin b) Peter Drucker d) Adam Smith.

7. Enterpreneurship is a continuous process. State true or false : a) True c) Partly true b) False d) None.

8. Which of these is not a trait of an entrepreneur ? a) Innovative c) Independent

b) Future oriented d) None of these. 9. …………………….. refers to the strong desire to achieve success.

a) Dedication c) Passion b) Determination d) Self confidence.

10. A combination of common sense with knowledge and experience is termed as : a) Leadership c) Smart b) Flexibility d) None of these.

11. An entrepreneur should have which of the following feature : a) Mental ability c) Clear objectives b) Communication Skills d) All of these.

12. ……………………….. type of entrepreneurs manage both work and personal life together. a) Hero c) Sustainer b) Healer d) Artiste

13. One who nurtures the business by bringing harmony in the organization is known as :




a) Superstar c) Sustainers

b) Healer d) Advisers 14. An entrepreneur who is always ready to take chances is called ………………….

a) Superstar c) Juggler b) Hero d) Fireball.

15. A manager can be a entrepreneur but an entrepreneur cannot be a manager. The above statement is : a) True c) Partly true b) False d) None.

16. When a manager becomes an entrepreneur he is called : a) Intrapreneur c) Manager only b) Sustainer d) None

17. …………………………. Is a method for the companies to reinvest themselves and improve performance. a) Entrepreneurship c) Management b) Intrapreneurship d) None.

18. Every business needs an ……………………………. a) Entrepreneur c) Both b) Intrapreneur d) None.

19. One who is never dull in terms of enthusiasm, energy and attitude is …………….. a) Fireball c) Superstar b) Juggler d) Hard worker.

20. Who can become an intrapreneur ? a) Manager c) Outsider skilled person b) Employee d) Both a) and b).

Answers :

1.(b) 2. (a) 3. (a) 4. (c) 5. (a) 6. (b) 7. (a) 8. (d) 9. (b) 10. (c) 11. (d) 12. (c)

13. (b) 14. (c) 15. (b) 16. (a) 17. (b) 18. (b) 19. (a) 20. (d).

1. Components of creativity does not include :

a) Expertise c) Motivation b) Creative thinking d) Self efficacy.

2. …………………………….. is the process by which an idea or invention is translated into goods or service. a) Innovation c) Creative thinking b) Creativity d) Motivation.

3. Who stated that “Innovation is the process of creative destruction” ? a) Alfred Marshall c) Schumpeter b) Jacob Viner d) Samuelson.

4. Who gave the seven secrets of innovation ? a) Schumpeter c) Samuelson b) Jacob Viner d) Steve Jobs.

5. Innovation is the starting point of creativity. This statement is : a) True c) Partly true




b) False d) None

6. …………………………….. is the vehicle that drives creativity and innovation. a) Entrepreneurship c) Motivation b) Intrapreneurship d) All of these.

7. Environmental scanning includes monitoring of : a) Only internal environment c) Both a) and b). b) Only external environment d) None of these.

8. Which of these is not a method of environmental scanning ? a) SWOT Analysis c) GE Model b) Industry Analysis d) PESTLE Analysis.

9. Albert S. Humphery was the originator of : a) SWOT Analysis c) GE Model b) Industry Analysis d) PESTLE Analysis.

10. Threat is a _____________ while strength is a __________ component. a) External, Internal c) Internal, Internal b) Internal, External d) External, Externa.

11. Expansion into new line of business is a _____________ of the firm. a) Strength c) Opportunity b) Weakness d) Threat.

12. In PESTLE Analysis, The word “E” stands for : a) Expansion c) Environmental b) Economical d) Ecological.

13. Porter’s five force model is used to explain : a) Industry Analysis c) Environmental Analysis b) Competitive analysis d) None of these.

14. According to Porter’s five force model which of these is not a competitive force for a firm :- a) Substitute products c) Suppliers power b) Buyers power d) None of these.

15. Which of these is not a type of environmental scanning ? a) Passive c) Directed b) Active d) Specific.

16. Directed scanning is a ___________ scanning for a specific item : a) Specific c) Passive b) Active d) None of these.

17. The methods of survey, focus groups, interviews are used under _________. a) Primary Research c) Both a) and b). b) Secondary Research d) None.

18. The most significant benefit of a business plan is : a) Lead to timely completion of goals b) Lays down goals and objectives c) Facilitate periodic review of actual results d) All the these.

19. Components of a business plan includes : a) Goals c) Strategy b) Review d) All of these.

20. Which of these skills is not required for a successful business : a) Engineering Skills c) Selling Skill b) Management Skill d) Business Skills.

21. __________ and _________ skills are needed for starting a business.




a) Engineering + Selling c) Engineering + Business

b) Selling + Management d) Business + Manufacturing. 22. Primary task for starting a venture is ______________.

a) Identification of opportunity c) Conceiving an idea b) Developing a plan d) Arrangement for resources.

23. Opportunity analysis includes a business plan. The statement is _________. a) True c) Partly true b) False d) None.

24. The word motivation has been derived from a __________ word which means “to move”. a) Latin c) Greek b) French d) English.

25. Motivation can be : a) Diverse c) Dynamic b) Multiple d) All of these.

Answers :-

1.(d) 2. (a) 3. (c) 4. (d) 5. (b) 6. (a) 7. (c) 8. (c) 9. (a) 10. ( a) 11. (c) 12. (b)

13. (a) 14. (d) 15. (d) 16. (b) 17. (a) 18. (c) 19. (d) 20. (b) 21. (a) 22. (a) 23. (b)

24. (a) 25. (d).

1. Elements of business planning includes : a) Strategic Planning c) Both a) and b) b) Operational Planning d) None.

2. Environmental scanning is the first step of _____________. a) Strategic Planning c) Entrepreneurship b) Operational Planning d) None of these.

3. “What to achieve and till when is explained by” ____________. a) Objectives c) Goal b) Mission d) Vision.

4. Strategy implementation involves :- a) Programs c) Procedures b) Budgets d) All of these.

5. Conversion of strategic goals into managed execution is termed as _______. a) Innovation c) Operational Planning b) Strategy implementation d) None of these.

6. British economists explained entrepreneurship under head of __________. a) Business Economics c) Business Organization. b) Business Management d) None of these.

7. The necessity of entrepreneurship was first recognized by : a) Adam Smith c) John Mill b) Alfred Marshall d) Kizner.

8. The role of entrepreneur is that of a innovator this was claimed by :-- a) Ancient school of thought c) Mordern school of thought b) Neo classical school of thought d) None of these.

9. The concept of creative imitation is mostly used in : a) Developed countries c) All the countries




b) Least developed countries d) None of these.

10. Which of these is not a type of entrepreneurship ? a) Opportunity based c) Situation based b) Need based d) None of these.

11. For ____________ time is money : a) Entrepreneurs c) Competitors b) Employees d) All of these.

12. An entrepreneurs has to face which of these challenges :- a) Changing Environment c) Factor Innovation b) Process Innovation d) None of these.

13. Changes in production process is also referred as : a) Product Innovation c) Factor Innovation b) Process Innovation d) None of these.

14. Who explained the view that “Entrepreneurship is neither a science nor an art, it is a practice” ? a) Adam Smith c) Kizner b) Peter Drucker d) Alfred Marshal.

15. Growth is __________ while expansion is _______________. a) External, Internal c) Static, Dynamic

b) Static, Dynamic d) None of these.

Answers :

1.(c) 2. (a) 3. (a) 4. (d) 5. (c) 6. (b) 7. (b)

8. (c) 9. (b) 10. (c) 11. (b) 12. (d) 13. (a) 14. (b)

15. (b).




PRACTICE QUESTIONS

PART - A

1. The primary/fundamental function of management is :

a) Planning, c) Organization

b) Controlling, d) Direction, 2. The father of modern management theory is :

a) W.F. Taylor, c) Koontz O Donnel b) Henri Fayol d) Samulson.

3. Scientific Management is the contribution of : a) W.F. Taylor c) R.C. Davis b) Henri Fayol d) Lyndall Urwick

4. Superior-subordinate theory was given by : a) Henri Fayol c) Koontz O’Donnel b) V.A. Graicunas d) Joseph Jecard

5. Decentralization and delegation of authority are the same thing : a) True c) Partly true b) False d) Partly false

6. The word “management” derives its origin from a Greek word : a) Nomo c) Xus b) Verh d) Gest

7. MBO stands for : a) Management by Option c) Management by Objection

b) Management by Objectives d) None of the above. 8. Combination of functional departments with product or project organization is known as :

a) Project Organization, c) Line and Staff Organization, b) Matrix Organization, d) Functional Organization.

9. The recruitment, selection, development, utilization, compensation and motivation of human resources by the organization is known as : a) Training Department, c) Staff Management b) Personnel Management d) Line and Staff Management.

10. Ranking, Rating scale, check list are the methods of : a) Transfer Management c) Promotional Methods b) Performance Appraisal d) Job Description.

11. Four kinds of management systems as leadership styles was given by :




a) Blake and Mouton, c) Mcgregor

b) Rensis Likert d) Hertz berg. 12. The Process of searching for prospective employees and encouraging them to apply for the

jobs in an organization is known as : a) Selection, c) Recruitment, b) Placement, d) Training.

13. POSDCORB was coined using the initial letters of management function by : a) Koontz O’Donnel c) Peter F. Drucker, b) Luther Guilick d) Henry Mintzberg.

14. The Hierarchy theory of needs was given by :

a) A.H. Maslow, c) Koontz O’Donnel b) Mc Gregor, d) None of above.

15. Zero Base Budgeting was first introduced in : a) Japan, c) India b) USA d) China.

16. The essential sills which every manager needs for doing better management is known as : a) Leadership Skills, c) Professional Skills b) Teaching Skills d) Managerial Skills.

17. Principle of Espirit de Corps was given by : a) R.C. Devis, c) Koontz O’Donnel b) V.A. Graicunas d) Henry Fayol

18. A general enduring statement of the intent of business which reflects the belief and philosophy of management is known as : a) Mission, c) Objectives b) Vision, d) None of the above.

19. Policies are the guide to thinking in : a) Policies are the guide to thinking in :

a) Organizing, c) Forecasting, b) Decision making d) Planning.

20. It involves looking ahead and projecting the future course of events : a) Organizing, c) Controlling, b) Forecasting, d) Co-ordination.

21. The economic environment around us consists of which basic entitles : a) Households (the consumers) c) Government (the co-coordinator) b) Firms (the producers) d) All of the above.

22. The definition of management “Getting things done through and with people” was coined

by : a) Luther Gulick c) Koontz and O’Donnel, b) Henry Fayol d) None of the above.

23. Management is an inter-disciplinary __________________ which draws freely from other disciplines such as economics, sociology and psychology : a) Art, c) Science, b) Profession d) All of the above.

24. Top management is generally required to spend more time in planning, the middle level on organizing and the lower level managers on : a) Directing, c) Staffing. b) Organizing d) None of the above.

25. Planning process comprises determination and laying down of :




a) Objectives, c) Strategies,

b) Policies & procedures d) All of the above. 26. He argued that successful change in organizations should follow three steps : Unfreezing

the status quo, movement or changeover to a new state, and refreezing the new change to make it permanent. Who was he ? a) Koontz c) Mintzberg b) Luther Gulick d) Kurt Lewin.

27. ‘Acts of God’ are the result of : a) Natural Disasters, c) Technological crisis, b) Violence d) Rumours.

28. It owes its genesis to post war research of American management consultants like Drs. Joseph Juran and W. Edwards Dening : a) MBO c) Crisis b) TQM d) Stress Management.

29. Risk cannot be managed unless it is first : a) Assessed, c) Measured, b) Identified, d) Evaluated.

30. Which principle emphasizes the need for teamwork and the importance of effective communication :

a) Stability of Tenure of Personnel, c) Scalar Chain, b) Espirit de Corps d) Equity.

31. Interpersonal, Informational and Decisional roles are the three phases of a manager’s work role. This was given by : a) Henry Mintzbery c) Koontz and O’Donnell b) Fayol d) Luther Gulick

32. It is a process of transformation where the old system can no longer be maintained : a) Crisis c) TQM b) Stress Management d) MBO

33. It is used to collectively describe all commercial transactions i.e., private and governmental, sales, investments, etc. that take place between two or more regions, countries and nations beyond their political boundary : a) International business, c) Government Business, b) Ordinary Business d) Political Business,

34. It is instantaneous, self correcting and forward looking : a) Ideal control, c) Ideal Coordination, b) Ideal Planning, d) None of the above.

35. The operative function of a Human Resource Manager means :

a) Those tasks or duties which are specifically entrusted to the personnel department under the general supervision of personnel manager,

b) Those that are the basic functions of planning, organizing, directing and controlling in relation to his department.

c) Personnel/Human resource manager has specialized education and training in managing human relations. He is an expert in his area and so can give advise on matters relating to human resources of the organization.

d) None of the above. 36. None traditional control devices are based on :

a) Non-scientific methods, c) Conventional methods, b) Scientific methods, d) All of the above.

37. It has its origins from the field of corporate insurance :




a) Stress Management, c) Crisis Management

b) Management d) Risk Management, 38. Modern control system is _______________ rather than work or job oriented :

a) Worker-focused, c) Incentive focused, b) Job focused, d) None of the above.

39. Blue-collar workers are : a) Working on machines and engaged in loading, unloading, b) Clerical employees, c) Executive employees, d) None of the above.

40. Which Institute has defined a budget as “a financial and/or quantitative statement prepared prior to a defined period of time of the policy to be pushed during that period for the purpose of attaining a good objective” – a) The Institute of Cost and Management Accountants of Englad, b) The Institute of Cost and Management Accountants of England and Wales, c) The Institute of Cost and Management Accountants of Wales, d) None of the above.

PART – B

41. The term ‘business ethics’ came into common use in year : a) 1950 c) 1970 b) 1960 d) 1980

42. Business Ethics has a ___________________ application : a) Universal c) Practical, b) Natural d) None of the above.

43. Ethics has become the buzzword in the corporate world because of : a) Globalization, c) Expansion, b) Modernization, d) Liberalization.

44. A set of principles and expectations that are considered binding on any person who is member of a particular group is known as : a) Code of ethics, c) Ethics,

b) Values, d) None of the above. 45. The Sarbanes – Oxley Act of 2002 made it important for businesses to have an :

a) Ethics code, c) Code of practice, b) Code of conduct, d) Business ethics,

46. Scope of Ethics in Business is in which area(s) : a) Compliance, c) Marketing and Production, b) Finance & HR d) All of the above.

47. Measures to improve ethical behaviour of business are framed at which level : a) Institutional level, c) Societal level, b) Government level, d) All of the above.

48. Which of the following Act made code of ethics mandatory for all organizations : a) The Companies Act, 2013 c) The Partnership Act, 1932. b) The Sarbanes-Oxley Act, 2002. D) None of the above.

49. Which of the following is a feature of Business Ethics : a) Business Ethics has a universal application, b) It is a relative norm. It differs from business to business.




c) Business Ethics is based on well accepted moral and social values.

d) All the above. 50. An expert who is confidentially available to solve the ethical dilemmas is known as :

a) Ethic Coach, c) Ethics Guide, b) Ethics Trainer, d) None of the above.

51. Business Ethics is based on well accepted : a) Moral and social values, c) Moral values only, b) Social values only, d) None of the above.

52. The idea of business ethics caught the attention of academics, media and business firms by the end of the : a) First Word War, c) Cold War b) Second World War d) None of the above.

53. Corporate entitles are legally considered as persons in : a) USA c) China, b) Japan d) None of the above.

54. Business Ethics cannot be enforced by : a) Governance, c) Law b) Business, d) None of the above.

55. Business Ethics is a code of conduct which businessmen should follow while conducting

their : a) Normal activities, c) Specific activities, b) Special activities, d) None of the above.

56. Compliance is about obeying and adhering to : a) Rules and authority, c) Laws, b) Discipline, d) All of the above.

57. Administrative corruption include “gifts” to the : a) Factory Inspector, c) Pollution Control Board Inspectors, b) Boiler Inspector, d) All of the above.

58. Which of the following is a reason for business not behaving ethically – a) To protect its own interest and of the business community as a whole, b) To keep its commitment to society to act ethically, c) To meet stakeholder expectations. d) To not protect their employees and their reputation.

59. Ethics in production means : a) It deals with the duties of a company to ensure that products and production processes

do not cause harm. b) It deals with the moral principles behind the operation and regulation of marketing.

c) It covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee.

d) All of the above. 60. They are concerned about ethics, social responsibility and reputation of the company in

which they invest : a) Employees, c) Investors b) Employers, d) Students.

PART – C

61. I, We, you, he, she, it, we, they, me, him, her, us, them are examples of :




a) Possessive Pronoun, c) Collective Pronoun

b) Relative Pronoun d) Personal Pronoun. 62. Identify the correct spelling :

a) Occasion, c) Ocassion, b) Occasion, d) Occasion.

63. The Idiom ‘To arrest someone’s notice’ means : a) Cast a slur upon, c) To catch a Tartar, b) Catch somebody’s eye d) To come off with flying colours.

64. What is meant by ‘ab initio’ : a) List of additions, c) From the beginning, b) From the origin, d) According to value.

65. A job application letter is said to be similar to a : a) Purchase Letter, c) Public Notice, b) Sales Letter, d) None of the above.

66. A sales letter drafted for a large number of people is known as : a) Sales manual, c) Sales Enquiry, b) Sales Order, d) Sales Circular.

67. Which of the following is a system of interlinked hypertext documents accessed via the internet :

a) Internet, c) Extranet, b) World Wide Web, d) None of the above.

68. Which of the following protocol is used by the web : a) HTTP c) TTPH b) HTPT d) TPTH.

69. Which of the following is a web browser : a) Google Chrome, c) Firefox, b) Internet Explorer d) All the above.

70. It is a document giving full details of goods being shipped, prepared by the exporter and sent to the importer : a) Invoice, c) VAT, b) Sales Receipt d) Sales Tax.

71. The abbreviation “E&OE” stands for : a) Errors and Omitted Errors, b) Expected and Omitted Errors, c) Errors and Omissions Excepted. d) Exceptions and Omissions.

72. These are demanded when buyer returns goods already paid for on grounds of, say,

unacceptable quality : a) Debit Notes, c) Sales letters, b) Credit notes, d) Statement of Accounts.

73. Telegrame may also be communicated over the telephone and this is called : a) Telephonogram, c) Telegram-phone, b) Phonogram, d) None of the above.

74. Fax is the abbreviated form of the word : a) Facsimile, c) Fac b) Faximile d) Simile.

75. Telex machines allow exchange of : a) Photos, c) Email messages, b) Text, d) None of the above.




76. When an organization needs to share important information with members of general

public such as a change of name or representative, it drafts a : a) Office Orders, c) Representations, b) Office Notes, d) Public Notice.

77. RSVP is the abbreviation of the French words “respondey s’ll vous plait” and means : a) Please come, c) Please reply, b) Please d) Invitation.

78. A press release should have which of the following features in order to be selected : a) Detailed, c) Lengthy, b) Factual, d) Unsuitable.

79. These are used for disseminating information to a large number of employees within the organization : a) Office Circulars, c) Public Notice, b) Representations, d) None of the above.

80. The abbreviation ‘ESOP’ stands for : a) Employee Stock Option Plan, b) Employees Share Option Plan, c) Employee Share Option Programme, d) Employee Stock Option Programme.

81. Communication is an ___________ process : a) Ongoing, c) Three Way Process, b) One way d) none of the above.

82. Memo, Report, Office order, Circulars, Staff Newsletters, Fax etc. are the form of : a) Non verbal Communication. b) Written Communication, c) Oral Communication, d) Audio Visual Communication.

83. It is a word opposite or contrary in meaning to another word, it means : a) Antonyms, c) Homonyms, b) Synonyms, d) None of the above.

84. Acoustics means : a) One who performs gymnastic feats, b) The action of attacking with provocation, c) Science of the production, transmission, reception and effect of sound. d) None of the above.

85. The part of speech (or word class) that is used to name or identify a person, place, thing, quality, or action is known as :

a) Noun c) Adjective, b) Verb d) None of the above.

86. A _____________________ Sentence contains only one finite verb and can make only one complete statement : a) Simple, c) Compound, b) Complex, d) None of the above.

87. To transform into a purer or idealized form means : a) Sublimate, c) Ransack, b) Vandal d) Revive,

88. A syllable is the minimum rhythmic sound of a spoken language. A word may have one or more syllables. How many syllables are there in retribution, satisfaction, transatlantic ? a) One, c) Three




b) Two d) Four.

89. These are those prefixes that denote the meaning of removing something or depriving something or someone : a) Reversative Prefix, c) Pejorative Prefix, b) Derivative Prefix, d) Place Prefix.

90. It separate or enclose subordinate clauses and phrases in sentences : a) The Comma (,) c) Full Stop (.) b) The hyphen(-) d) None of the above.

91. The latin word “bona fide” means : a) Strange, c) Colleague b) Good faith, d) None of the above.

92. The proverb “an aged lover” means : a) A fool and his money are soon parted, b) There is no fool like an old fool, c) One man’s meat is another man’s poison. d) It never rains but pours.

93. Which of the following is applicable in case of Telegrams : a) The message must be detailed, b) Time should be written according to the twenty four hour clock.

c) Normal grammar and punctuation may always be followed, d) Block letters must not be used.

94. This began as an American experiment in computer communication technology during the cold war and has revolutionized the world : a) Fax, c) Telegrams, b) Emails, d) None of the above.

95. BCC stands for : a) Blind Copy Carbon, c) Blind Carbon Copy, b) Before Carbon Copy, d) Before Copy Carbon.

96. Who is called the ‘father of email’ and is credited with its invention : a) Aristotte, c) Marriam, b) Tomlinson, d) None of the above.

97. The following is an example of which type of letter : Dear Pradeep, I was delighted to learn that your work on cryogenic engine has been appreciated by the Indian Space Research Organization. I am confident that it will be possible to manufacture these engines indigenously and our dependence on other countries will end soon. I feel proud of your achievement and send you my best wishes for the future.

a) Congratulatory Letter, c) Thank you Letter, b) Sympathy Letter, d) Condolence Letter.

98. What is the difference between “enquiry” and “inquiry” : a) Enquiry means asking a question, and inquiry is a formal investigation. b) The prefix ‘en’ comes from French, and ‘in’ from Latin. c) Enquiry is a request for truth, knowledge or information, and inquiry is an investigation

into something. d) All of the above.

99. It is a document giving full details of goods being shipped, prepared by the exporter and sent to the importer : a) Bill, c) Receipt, b) Invoice, d) None of the above.




100. It is a document that outlines the contents of a forthcoming meeting :

a) Meeting, c) Minutes, b) Agenda, d) None of the above.

PART – A

1. It deals with future and involves forecasting : a) Planning, c) Forecasting, b) Organising, d) Leasership.

2. Certainty, Risk and Uncertainty are the three possible conditions of : a) Decision making, c) Risk Management, b) Planning, d) None of the above.

3. “Personnel Management is the recruitment, selection, development, utilization,

compensation and motivation of human resources by the organization”. Who gave the above definition? a) Edwin B. Flippo, c) French Wendell b) Megginson, d) Jucius Michael

4. Which of the following is not a similarity between HRM and Personnel management : a) Both models emphasize the importance of integrating personnel / HRM. b) Both models emphasize the importance of individuals fully developing their abilities for

their own personal satisfaction to make their best contribution to organizational success.

c) Both models identity placing the right people into the right jobs as an important means of integrating personnel/HRM practice with organizational goals.

d) Both models deal with monetary satisfaction of employees. 5. “Unity of command cannot exist without unity of direction, but does not flow from it”. This

statement was given by : a) Henry Fayol c) Koontz O’Donell b) Frederick Taylor d) None of the above.

6. The guiding and directing efforts of employees and other resources to accomplish stated work outputs is known as :

a) Leadership, c) Training, b) Supervision, d) Motivation,

7. From which Latin term, the word motivation has been derived which means to move : a) Mauve c) Movere b) Prole d) Manuscriptum.

8. What is said to be the nature of selection process ? a) Positive, c) Neutral, b) Negative, d) None of the above.

9. Which of the following is incorrect regarding control : a) Controlling is backward looking, b) Controlling exists at every management level. c) Controlling is a continuous activity d) Purpose of controlling is positive.

10. A budget is frequently prepared to combine all other budgets in a summary form. It is known as: a) Sales Budget, c) Cash Budget,




b) Purchase Budget, d) Master Budget.

11. Which of the following is not an example of traditional control devices : a) Budgetary Control, c) Financial Ratio Analysis, b) Standard Costing, d) Zero Base Budgeting.

12. Transactional Analysis was developed by : a) Dr. Wilder Penfield, c) Edwin B Flippo, b) Eric Berne d) None of the above.

13. The two factor theory also known as Hygiene theory was developed by : a) Frederick Herzberg, c) Maslow, b) McGregor d) George Terry.

14. Crosswise communication is also known as __________________ communication : a) Vertical, c) Diagonal, b) Horizontal, d) None of the above.

15. “The right to give orders and exact obedience” is known as : a) Direction, c) Responsibility, b) Authority, d) Accountability.

16. The process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public is known as : a) Stress Management, c) TQM

b) Crisis Management, d) None of the above. 17. It is an approach that organizations use to improve their internal processes and increases

customers satisfaction : a) TQM c) MBO b) Stress Management, d) Change Management.

18. Identification of opportunities and avoiding or mitigating losses is called : a) Risk Management, c) Change Management, b) Stress Management, d) Co-ordination.

19. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations : a) International Business, c) Internal Business, b) Domestic Business, d) None of the above.

20. Overt, implicit, immediate or deferred are the types of : a) Control, c) Forecasting, b) Planning, d) Resistance.

21. Planning process comprises determination and laying down of : i) Objectives, (ii) Policies, (iii) Procedures, (iv) remuneration. a) (i), (ii), (iii), (iv). c) (i), (ii), (iv), (v).

b) (i), (ii), (iii), (iv). d) (i), (ii), (iv), (v). 22. It refers to superior-subordinate relations throughout the organization :

a) Equity, c) Espirit de corp, b) Scalar Chain d) Order.

23. Technical, human and conceptual are the types of : a) Technical Skills, c) Managerial skills, b) Specific Skills, d) None of the above.

24. Policy making is the function of : a) Management, c) Personnel Management, b) Administration, d) All of above.

25. It lays down the course of action selected to guide and determine present and future decisions :




a) Policy, c) Programmes,

b) Procedure. d) Strategy. 26. Which of the following is not related with ‘Business plans’ ?

a) Largely enforced business goals, b) The reasons why they are believed attainable, c) The plan for reaching those goals, d) Changes in perception and branding.

27. If you are planning a trip to Kashmir, have never been there before, and have not heard about the weather in Kashmir during winter, you may be in a predicament as to what clothes to carry and what precautions to take. What kind of a decision-making condition is this ? a) Certain, c) Risk, b) Uncertain, d) None of the above.

28. Arrange the various steps of organizing in the correct sequence : i) Identifying, (ii) Grouping (iii) Delegating, (iv) Establishing relationship. a) (i)-(ii)-(iii)-(iv). c) (iv)-(iii)-(i)-(ii). b) (ii)-(i)-(iii)-(iv). d) None of the above.

29. Which of the following is not a principle of decision-making : a) Principle of definition, c) Principle of Identity,

b) Principle of evidence, d) Principle of Prudence. 30. The Principles of Unity of Command and Unity of Direction was given by :

a) W.F. Taylor, c) Henri Fayol, b) Lyndall Urwick d) None of the above.

31. Which of the following is not a feature of Organizing : a) It is a sub process of management, b) It deals with individual efforts, c) It is based on the principle of division of work. d) It establishes authority – responsibility relationships.

32. Which of the following is not a managerial function of a personnel manager :

a) Planning, c) Direction, b) Compensation, d) Organizing.

33. Which of the following is a barrier to effective delegation : a) Fear of loss of power, c) Lack of ability to direct well, b) Personal attitudes, d) All the above.

34. Which of the following is an external source of recruitment : a) Transfer, c) Promotion,

b) Re-hiring, d) Employment agencies. 35. Which of the following is the third step in the process of control :

a) Establishment of goals and standards, b) Measurement of Actual performance against standards, c) Comparison of actual performance with the standards, d) Corrective action.

36. Behaviouralists and psychologists approach was given by : a) Elton Mayo c) Henri Mintzberg b) R.C. Dewis, d) A. H. Maslow.

37. What is the second step in the selection process : a) Checking References, c) Receiving applications, b) Medical Examination, d) Employment test.




38. Which of the following is known as a ‘no profit-no loss’ situation :

a) Break – Even – Point, c) Statistical control, b) Initiating Structure, d) None of the above.

39. Which of the following is incorrect regarding control : a) Controlling is backward looking, b) Controlling exists at every management level, c) Controlling is a continuous activity d) Purpose of controlling is positive.

40. ‘Each individual should be given a particular job to do according to his ability and made responsible for that.’ Which step in the organizing process does the sentence relate to : a) Allotment of Duties, c) Developing Relationships, b) Identification and Grouping of Activities, d) Integration of Activities.

PART – B

41. The Society for Business Ethics was started in the year : a) 1950 c) 1970 b) 1960 d) 1980

42. Which of the following is not a ‘code of conduct’ : a) Code of Ethics, c) Code of Behaviour b) Code of Practices, d) Code of Management.

43. Which of the following is known as statements of value and principles that define the purpose of the organization : a) Code of Ethics, c) Code of Behaviour b) Code of Practices, d) Code of Management.

44. Which of the following is a ‘business practice’ towards Government : a) Ensure safety of their money and timely payment of interest, b) Rules and regulations regarding taxes, duties, restrictive and monopolistic trade

practices should be adhered to. c) Unscrupulous tactics and methods should be avoided while handling them. d) None of the above.

45. Which of the following is an unethical business practice :

a) Collusion, c) Insider Trading, b) False Communication, d) All the above.

46. Various organizations like Mumbai Grahak Panchayat, Consumer Society of India etc. have been started by consumer groups to protect the interest of consumers. At which level can this be executed as a measure to control unethical behaviour : a) At Institutional Level, c) At Society Level, b) At Government Level, d) None of the above.

47. Which functional area in business ethics is about obeying and adhering to rules and authority : a) Ethics in compliance, c) Ethics in Production, b) Ethics in Finance, d) None of the above.

48. A business should have which kind of an approach : a) Profit earning, c) Both a and b b) Social responsibility d) Either a and b.

49. Which of the following is not a reason for business to act ethically : a) To protect its own interest and of the business community as a whole,




b) To meet stakeholder expectations,

c) To build trust with key stakeholder groups, d) To not protect their employees and their reputation.

50. Companies which are responsive to employees’ needs have : a) Profits, c) Staff Satisfaction, b) Lower turnover in staff, d) Strikes.

51. The Society for Business Ethics was started in the year : a) 1960 c) 1970 b) 1980 d) 1990.

52. Ethics has become the buzzword in the corporate world because of : a) Globalization, c) Exploitation, b) Communication explosion d) Both a and b

53. Ethics in Compliance means : a) It is about obeying and adhering to rules and authority, b) It deals with the moral principles behind the operation and regulation of marketing, c) It deals with the duties of a company to ensure that products and production processes

do not cause harm. d) None of the above.

54. State as to why a business should behave ethically :

a) To unprotect its own interest and of the business community as a whole, b) To keep its commitment to society to act ethically, c) To not meet stakeholder expectations, d) To build distrust with key stakeholder groups.

55. Fraudulent asset valuations, insider trading, securities fraud leading to manipulation of the financial markets and executive compensation etc. are a part of scope in : a) Production, c) Finance. b) Compliance d) HR

56. Sarbanes – Oxley Act of 2002 is named after which of the following experts : a) Aristotle c) Michael Oxley b) Senator Pual Sarbanes d) Both a) and b).

57. Which of the following is a feature of Business Ethics : a) Business Ethics has a universal application, b) It is a relative norm, it differs from business to business. c) Business Ethics is based on well accepted moral and social values. d) All the above.

58. Which of the following is a ‘business practice’ towards Government : a) Ensure safety of their money and timely payment of interest.

b) Rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices should be adhered to.

c) Unscrupulous tactics and methods should be avoided while handling them, d) None of the above.

59. Which of the following is not a dimension of Corporate Social Responsibility : a) Economic c) Voluntary b) Legal, d) Emotional.

60. Measures to improve ethical behaviour of business are framed at which level : a) At institutional level, c) Societal level, b) Government level, d) All of the above,




PART – C

61. Identify the incorrect set of words : a) Easy, simple, light, effortless, facile, smooth, b) Effort, exertion, pains, trouble, c) Elastic, flexible, supple, springy, d) Abundant, transient, short-lived.

62. Which of the following is the antonym of Bankrupt : a) Solvent, c) Expensive, b) Despair, d) All the above.

63. The study and collection of postage stamps is called : a) Vacilate, c) Philately, b) Facsimile, d) Genocide.

64. The part of speech that is used to name or identify a person, place, thing, quality, or action

is known as : a) Adjective, c) Pronoun, b) Noun d) Adverb,

65. The notices that provide news about people who have just passed away is called : a) Precis, c) Condolence, b) Obituary, d) None of the above.

66. Which of the following is an element of a good advertisement copy : a) The audience must be exposed to the communication, b) The audience must remember or retain the message, c) The audience must act on the advertisement. d) All of the above.

67. E-mail is commonly known as : a) E-correspondence, c) Both a) and b) b) E-communication, d) None of the above.

68. Unsolicited or Junk mails are filtered through the option of : a) Spam, c) Packages, b) Attachments, d) None of the above.

69. The abbreviation ‘bcc’ refers to :

a) British Cricket Council, c) Blind Copper Copy, b) Blind Carbon Copy, d) None of the above.

70. The abbreviation ‘AAR’ stands for : a) Annual Average Risk, c) Against All Risks, b) Annual All Return, d) Against Average Risk.

71. Which form is obtained from the Sales Tax Authorities : a) Form A c) Form C b) Form B d) Form D

72. The abbreviation ‘ISDN’ stands for : a) Integrated System Digital Network, b) Integrated System Digit Network, c) Integrated Satellite Digit Network, d) Integrated Satellite Digital Network.

73. Public investment in a company is generally in the form of : a) Shares, debentures and deposits, c) Money Transfer, b) Purchase of goods, d) None of the above.




74. Which of the following is not applicable for telegram composing :

a) Time should be written according to the twenty four hour clock. b) Sentences are to be divided by the word “STOP” c) Normal grammar and puncluation may be ignored. d) Block letters must not be used.

75. Which facility has mobile telephony provided for sending brief messages instantly : a) SMS c) Emails b) Telephone d) Telegrams,

76. Office Orders have a format similar to that of : a) Representations, c) Memorandums b) Advertisements, d) Press Release.

77. Which of the following is not a form of intra-organizational communication : a) Representations, c) Press release, b) Office Notes, d) Memorandum.

78. Non-payment of premium results in a policy being declared : a) Insured, c) Dishonoured, b) Null and void, d) None of the above.

79. All business entitles viz. Parinerships, Sole proprietorships, Corporate houses, Trusts, Government Bodies, employing more than twenty persons are covered under :

a) Insurance Cover, c) Medical cover, b) Employees Provident Funds, d) None of the above.

80. It is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic format and credited in the investor’s account with a Depository held through a Depository Particupant (DP) : a) Dematerialisation, c) Dividend Warrant, b) Call letter, d) Rematerialisation.

81. Plain Language Commission insisted that the USP of Business English should be its simplicity and clarity. What is the full form of USP : a) Unique Selling Proposition, c) Unique Simplicity Programme, b) Unique Simplicity Proposition, d) Unique Selling Programme.

82. Communication is essentially a __________ process : a) One way Process, c) Three way Process, b) Two way Process, d) None of the above.

83. Facial expressions; Gestures; Eye contact; Nodding the head and physical appearances are the form of : a) Verbal Communication, c) Oral Communication, b) Non Verbal Communication, d) Visual Communication.

84. Inoffensive language is a sure way to : a) Build goodwill and reputation, c) Attract untalented staff. b) Break relationships d) All of the above.

85. There are several pairs or groups of words that are similar in sound but are different in spelling and meaning. It is known as : a) Antonyms c) Homonyms b) Synonyms d) None of the above.

86. Agnostic means : a) One who performs gymnastic feats, b) The action of attacking with provocation, c) Science of the production, transmission, reception and effect of sound, d) None of the above.




87. “A set of forms taken by a verb to indicate the time (and sometimes the continuance or

completeness) of the action in relation to the time of the utterance”, is the meaning that the Concise Oxford Dictionary assigns to the word : a) Tense c) Noun b) Verb d) Pronoun,

88. A syllable is the minimum rhythmic sound of a spoken language. A word may have one or more syllables. How many syllables are there in fame, name, claim, train : a) One c) None b) Two d) Three.

89. It is used to construct words to clarify meaning. It links words to form a compound word : a) The Hyphen (-) c) Full Stop (.) b) Comma (,) d) None of the above.

90. The type of communication flow usually takes place between people of the same status/level of hierarchy in the organization : a) Downward flow c) Vertical Flow, b) Horizontal flow d) Upward Flow.

91. To restore consciousness means : a) Revive c) Scribble, b) Ransack, d) Vandal,

92. It is a morpheme (minimal meaningful language unit) added at the end of a word to form a derivative : a) Prefix c) Combination words b) Suffix, d) None of the above.

93. VAT stands for : a) Value Added Tax, c) Value Abstract Tax, b) Value Addition Tax, d) Value Added Text.

94. It is used to denote possession and other kinds of relationship and contractions of words : a) Comma, c) The Hyphen, b) Full Stop d) An Apostrophe.

95. Alma mater means : a) A school or a college which one has attended, b) A public apology, c) Preliminary matter, d) None of the above.

96. The proverb “To rob peter to pay Paul’ means : a) Things take time to complete and to mature, b) To harm one person [or side] in order to benefit the other,

c) You judge a man’s worth by his clothes, d) A man is judged by the sort of friends he has.

97. A message sent through ____________ is cheaper than a telegram : a) SMS c) Letter, b) Fax d) All of the above.

98. RSVP means ‘respondey s’ll vous plait” and is a ____________ world : a) Roman, c) German, b) French d) None of the above.

99. In 1965, the Massachusetts Institute of Technology (MIT) was the first to demonstrate the use of the first email system, known as : a) Email c) Test mail, b) Mailbox, d) Internet.




100. WWW stands for :

a) Wide World Web c) Web World Wide, b) World Wide Web c) None of the above.

Questions of December 2012 :

1. Who coined the word POSDCORB about functions of management ? a) Henry Lawrence Gantt c) Newmann and Summer b) Henry Fayol d) Luther Gulick.

2. Management is a / an a) Exact science, c) Inter disciplinary science b) Science as well as art d) All of the above.

3. Who corrected the difficulties of Taylor’s differential piece rate system ? a) Henry Lawrence Gantt c) Newmann and Summer b) Henri Fayol d) Max Weber.

4. Which one of the following definitions of management is given by Henry Fayol ? a) Management is to forecast, to plan, to organize, to command, to co-ordinate and control

activities of others. b) The process of getting things done by the people and for the people. c) The functions of getting things done through people and directing efforts of individuals

towards a common objective. d) None of the above.

5. Who distinguished between ‘Principles’ and ‘slements’ of management ? a) Fredrick Taylor c) Henri Fayol

b) Newmann and Summer d) Henry Lawrence Gantt. 6. At which level of management hierarchy intellectual skill is the most important & vital ?




a) Lower c) Higher

b) Middle d) All of the above. 7. Superior – Subordinate theory was given by :

a) Henry Fayol c) Koontz O’ Donnel b) V.A. Gralcunas d) Joseph Jecard.

8. Which of the following is a concept given by Frederick Taylor ? a) Division of work c) Stop watch study b) Unity of command d) None.

Answers :

1. (d) 2. (c) 3. (a) 4. (a) 5. (c) 6. (c) 7. (b) 1. (c)

Planning :


a) Reflective thinking c) Farsightedness b) Imagination d) Quantifiable.

64. Strategies show a _____________ direction.

a) Underlines c) Unified b) Will defined d) Parallel.

65. _________ refers to outline of plans of work to be carried out in a proper sequence.

a) Programme c) Organising b) Budget d) None of these.

66. Programme is a complex structure of :

a) Rules, c) Methods b) Budget d) All of these.

67. Budget may be expressed in :

a) Non-materials c) Numerical expression b) Money d) Both b) and c)

68. These are business plans that have changes in perception and branding as their primary goal.

a) Marketing c) Operational b) Project d) Strategic.

69. Management is a ___________ process.

a) Static c) Both a) & b) b) Dynamic d) None of these.

70. Which of these contribute to accomplishment of groups goals.

a) Staffing c) Control b) Direction d) All of these.




71. After plans are set, the final step to give them meaning is to numbrize them by.

a) Procedures c) Planning b) Budget d) Rules.

72. Forecasts may be :

a) Comprehensive c) Limited b) Unlimited d) Both a) and b).

73. Possibility of error cannot be completely eliminated from ________________.

a) Planning c) Organising b) Forecasts d) All of these.

Answers :

63. (d) 64. (c) 65. (a) 66. (d) 67. (d) 68. (a) 69. (b) 70. (d) 71. (b) 72. (b)

73. (d).

Organization :

33. Delegation is must for ____________

a) Centralization c) Organization b) Decentralization d) Controlling.

34. Which functions as comprising human relationship in group activity.

a) Planning, c) Organization b) Controlling d) Directing.

35. Delegation of authority and placing of responsibility to the executives of the department for carrying out the assigned activities is an important step of :

a) Planning, c) Directing b) Organizing d) Controlling.

36. _______________ can be defined as collection of people and co-ordination of their activities of the enterprise :

a) Directing c) Organizing b) Controlling d) Planning.

37. Organization is based on the principal of __________.

a) Decision making c) Developing Relationships b) Division of Work d) Group Efforts.

38. ________________ means a large-part of decision making and authority is withhold at higher

positions in the management hierarchy.

a) Decentralization c) Delegation b) Centralization d) Both a) and b).

39. The Organization can sustain without _____________ but not without ___________




a) Centralization, Decentralization,

b) Delegation, Authority, c) Centralization, Decision making d) Decentralization, Delegation.

40. Which of the following is not a factor determining degree of Decentralization ?

a) Control Techniques c) Management Attitude b) Size of the Enterprises d) Allotment of Duties.

41. ______________ regards informal organization as the network of personal and social relationships which is not established or required by formal organization.

a) Keith Davis c) Kasts and Resenzweing b) Barnard d) Larry E. Greiner.

42. The right to give orders and exact obedience is :

a) Authority c) Accountability b) Responsibility d) Authority – Power Contimum.

Answer :

33. (b) 34. (c) 35. (b) 36. (c) 37. (b) 38. (b) 39. (d) 40. (d) 41. (a) 42. (a)

Human Resource Management :

Questions of Dec. 2012 :

1. In which of the following methods of performance appraisal, employees are distinguished as outstanding, above average, average, below average and poor. a) Ranking Method, c) Unstructured appraisal b) Check lists d) Forced distribution method.

2. Which one of the following is an internal source of recruitment? a) Placement Agency c) Transfer b) Employment Exchange d) Educational Institutions.

3. Which one of the following is the expanded form of acronym ‘MBO’ ? a) Management of Business Organization, b) Management of Business Objectives, c) Management by Options d) Management by Objectives.

4. The act of increasing the knowledge and skill of an employee for doing a particular job, is known as : a) Promotion c) Training b) Selection d) Transfer

5. Performance appraisal helps in : a) Orderly determination of an employee’s worth to an organization. b) Meeting manpower needs of the organization. c) Improving communication abilities, human relation and managing interaction with

subordinates. d) None of the above.




6. Ranking, rating scales and check lists are the method of :

a) Job description c) Performance appraisal b) Promotion method d) None of the above.

7. Which one of the following refer to the study of individual and group behaviour in an organization? a) Organizational behaviour b) Human resource management c) Human relations d) Group dynamics.

8. The full form of BARS is : a) Behaviourally Anchored Ranking Scales, b) Behaviourally Anchored Rating Scales c) Behaviourally Anchored Rollback Scales d) None of the above.

Answer :

1. (d) 2. (c) 3. (d) 4. (c) 5. (a) 6. (c) 7. (a) 8. (b) 9. (b).

Direction and Co-ordination :

39. Which of the following is not the principle of communication ?

a) Principle of Integrity c) Principle of Clarity b) Principle of Disintegration d) Principle of Strategic use of informal orgn.

40. Which of the following is not the example of Crossed Transaction ?

a) Parent – child c) Parent – Adult b) Child – Parent d) Adult – Adult.

41. _______________ Co-ordination is the establishment of a relationship between the employees of the organization and outsiders of the organization.

a) Internal c) Both a) and b) b) External d) None of the above.

42. The work of the establishment of a relationship between the employees of the organization and the outsider is entrusted to a person who is designated as _________.

a) Chairman c) PRO (Public Relation Officer, b) Secretary d) Director.

43. Sales manager co-ordinates his work with the activities of the sales supervision is a type of which Internal Co-ordination.

a) Vertical Co-ordination c) Both a) & b). b) Horizontal Co-ordination d) Upward Co-ordination.

44. _______________ is characterized by the emergence of spontaneous channels through which facts, half truths, and rumours pass.




a) Formal communication c) Mix communication

b) Informal communication d) None of the above.

45. _____________ is a third type of communication medium :

a) Pictures c) Action b) Media d) Written communication.

46. Message communicated through words may be distorted intentionally, is a type of which barrier.

a) Perfunctionery Action c) Premature Evaluation b) Semantic Distortion d) Resistance to Change.

47. Different functions of management when effectively carried out leads to better _________________.

a) Co-ordination c) Directing b) Controlling d) Organizing.

48. ________________ is a voluntary collective action to serve a common purpose.

a) Co-ordination c) Cooperation b) Controlling d) None of the above.

Answers :

39 (b) 40. (d) 41. (b) 42. (c) 43. (a) 44. (b) 45. (c) 46. (b) 47. (a) 48. (c)

Controlling :


1. Which one of these is not a traditional method of controlling : a) Budgetary Control c) Merit – Rating, b) Standard costing d) Break-even analysis.

2. Which one of the following is not correct about control ? a) Control is forward looking b) Control suggests corrective actions c) Control is one time activity d) Control is exercised as per organisational authority.

3. Which one of the following is considered as non-traditional control technique? a) Internal audit c) Zero-base budgeting

b) Break-even analysis d) Financial ratio analysis. 4. Which one of the following is known as technique of controlling ?

a) Margin of safety c) Break-even analysis b) Marginal of Contribution d) P/v Ratio.

5. In which country the zero base budgeting was first evolved? a) Japan c) India b) USA d) China.




41. Which one is not an appraisal areas of Management Audit.

a) Economic Function c) Health of Earning b) Basis for Control d) Sales Figures

42. Exercising control over day to day operation of the enterprises for the purpose of executing budget is known as :

a) Standard Costing c) Internal Audit b) Budgetary Control d) Network Analysis.

43. This technique helps in finding out the activity of profitable.

a) Standard Costing c) Statistical Control b) Budgetary Control d) Internal Audit.

44. Which analysis is a point of no profit no less.

a) Network Analysis c) Financial Ratio b) Break Even d) Standard Costing.

45. Which one is not an essential of good Control System :

a) Forward looking c) Corrective action b) Feedback d) Flexible.

Answers :

1. (c) 2. (c) 3. (c) 4. (c) 5. (b).

41. (b) 42. (b) 43. (a) 44. (b) 45. (c).

Recent Trends in Management :

26. Which of the following are not importance of international Business ?

a) Expand and diversify c) Spreading Business Risk b) Foreign Exchange Earning d) Integration of Economies.

27. _____________ is the phase where the level of the risk and its nature are assessed and understood.

a) Risk Assessment c) Risk Management. b) Risk Analysis d) Risk Evaluation.

28. Which of the following are not the objectives of Risk Management ?

a) Minimising of opportunities b) Optimising the use of resources c) Improved Organizational Efficiency, d) Identify and evaluate risk.

29. Chemobyl disaster is a type of which crisis ?




a) Natural disaster c) Confrontation crisis

b) Technological crisis d) Workplace Voilence

30. Resisting or disobeying police is a type of which crisis :

a) Natural Disaster c) Confrontation crisis b) Technological crisis d) Rumours.

31. International sales represent __________ to ____________ percent of total sales and the technology used in the domestic division has far outstripped that of the international division.

a) 25, 35 c) 35, 45 b) 45, 55 d) 55, 65

32. A business owner should aim to choose ____________ and implement the most appropriate combination of treatments.

a) Evaluate c) Assertive b) Prioritize d) None of the above.

33. Which of the following are not the advantage of Risk Management ?

a) Better informed decision making b) Less change of major problem in new and ongoing activities c) Increase likelihood of achieving corporate objective d) System of making choices.

34. ______________ must commit the resources and provide the leadership necessary to set the tone and carry out the requirement of an ongoing dynamic quality policy :

a) First line supervisor c) Top Management b) Middle Management d) None of the above.

35. Who said this statement crisis is a process of transformation where the old system can no longer be maintained ?

a) Charles Kettering c) Kotler b) Kohler d) Venette

Answers :

26. (d) 27. (b) 28. (a) 29. (b) 30. (c) 31. (a) 32. (b) 33. (d) 34. (c) 35. (d).

Business Ethics :

December 12 :

1. Employer should behave ethically while dealing with others, i.e. employees suppliers, customers etc. In this sense, what view does Business ethics concept represent ? a) Narrow c) Conservative b) Limited d) Universal.

2. Which one of the following statements about business ethics is false ? a) Business ethics goes beyond legal issues.




b) Ethical conflicts lead to ethical dilemma.

c) Ethical conduct builds trust among individuals and in business relationships d) Application of business ethics is limited to the profitable organizations.

3. Which one of the following is the quality of an ethics coach ? a) He should have strong knowledge of ethical practices, b) He should have strong analytical skills c) He should have knowledge of decision making tools d) All of the above.

4. Business ethics and financial performance are linked together and hence are advantageous to : a) Company c) Employees b) Investors loyalty d) All of the above.

5. Ethics is considered as :- a) Normative Science c) Natural Science b) Exact Science d) None of the above.

6. Which of the following works as a motivation for an employee to work in an organization ? a) Monetary benefits c) Learning opportunities b) Career progression d) All of the above.

7. The Minimum Wages Act, 1965 was enacted for safeguarding the interests of :-

a) Employees c) Consumers b) Management d) Government.

8. A written document of policies and principles that guides the behaviour of all employees is known as :- a) Ethical dilemma c) Financial delegation document b) Code of ethics d) None of the above.

9. Which one of the following means ethical dilemma ? a) A situation requiring a choice between ethical and unethical behaviour b) A situation of ethical behaviour. c) A situation of unethical behaviour. d) A written statement of policies and principles that guides the behaviour of all

employees. 10. In what way society can ensure ethical practices to be followed by business houses?

a) Establishing social groups to pressurize the business organizations for adopting ethical practices.

b) Boycotting the organizations following unethical practices. c) Arranging ethical awareness programme for business houses. d) All of the above.

Answers :

1. (d) 2. (d) 3. (d) 4. (d) 5. (c) 6. (d) 7. (a) 8. (b) 9. (a) 10. (d)

Business Communication :

41. Plain Language Commission insisted that the USP (Unique Selling Proposition) of business English should be :-

a) Ornamental c) Simplicity b) Clarity d) Both b) and c)




42. The Language of a politician obscures the truth. The language of an artist reveals it. This is

said by :

a) Salman Rushdie c) Sydney J Harris b) Peter Drucker d) Nayantara Sehgal.

43. Reading maketh a full man, costing an exact man, conference a ready man. Who spoke these words :

a) Peter Drucker c) Sydney Harris b) Francis Bacon d) Salman Rushdie

44. Which of the following is not an advantage of written communication :

a) More time Consuming c) Can be easily revised b) Accurate and precise d) Sufficient time for planning.

45. Oral communication includes :-

a) Tape recorder c) Intercom

b) Flip charts d) Both a) and c).

46. Which of the following is a disadvantage of oral communication.

a) Saves time c) No record for future preference b) Economical d) None of these.

47. Visual Communication includes :-

a) Maps c) Graphs b) Slider d) All of the above.

48. Which of the following is not a type of audio visual Communication :

a) Cinema c) Neon Hordings b) Video Conferencing d) All of the above.


a) True b) False, if it is well coordinated c) False, planning can never be a communication barrier. d) None of the above.

50. Which mode of Communication is external communication :

a) Verbal Communication c) Both a) and b) b) Non-verbal communication d) None of the above.

Answers :

41. (d) 42. (a) 43. (b) 44. (a) 45. (d) 46. (c) 47. (d) 48. (c) 49. (a) 50. (b).




Essentials of Good English :

December 12 :

1. Identify the correctly spelt word :- a) Occasion c) Occassion b) Ocasion d) Ocasion

2. The abbreviation ‘E&OE’ stands for : a) Errors and Omitted Errors

b) Expected and Omitted errors c) Errors and Omissions excepted, d) Exceptions and omissions encountered.

3. The proverb apparel often proclaims the man means :- a) Clothes are everything b) You judge a man’s worth by his clothes, c) Apparels are expensive d) None of the above.

4. Fax is the abbreviation of :- a) Fascimile c) Fascicle b) Fascile d) Fiscal.

5. What does the idiom to split hairs mean ? a) Argue on major points c) Not to argue b) Argue on minor points d) Brainstorming.

6. ________________ Taj Mahal is situated in Agra. Fill in the blank using correct article. a) A c) The b) An d) None of the above.

7. Expired is a synonym of :

a) Illegal c) Dishonoured b) Lapsed d) Matured.

8. Who is called a Connoisseur ? a) One who gives friendly help b) An expert judge in the matter, c) One who performs gymnastic feats, d) A member of royal family.

9. A word opposite to another word : a) Antonym c) Homophones b) Synonym d) Idiom.

10. ________________ err is human ________________ forgive is divine a) One c) Into b) To d) From

Answers :

1. (a) 2. (c) 3. (b) 4. (a) 5. (b) 6. (c) 7. (b) 8. (c) 9. (a) 10. (b).

Business Correspondence – I :

31. What does CIF stands for :




a) Cost Insurance & Free c) Cost Insurance & Freight

b) Call Insurance & Freight d) None of the above.

32. ______________ bid gets the contract :

a) Lowest c) Highest b) Both a) and b) d) None of the above.

33. _______________ is used to identify contractors who would be allowed to tender for certain contracts.

a) Tender c) Pre-qualification b) Estimate d) Reply.

34. ________________ letter saves time and effort :

a) Ready-to-send c) Sympathy b) Thank you d) Condolence.

35. Select which from the following is not a type of advertisement :

a) Hike in price c) Stunts performed by actors b) Inviting tenders d) Recruitment of personnel.

36. What does not effect sales demand ?

a) Attention c) Interest b) Attraction d) Desire.

37. One word for a sentence fail to fulfill a promise :

a) Burdensome c) Penury b) Revenge d) Tedious.

38. In case of letter of enquiry ____________ may also be given, especially in case the intention is to have credit and when it is the first transaction.

a) Name of the company c) Phone No. b) Credit reference d) None of the above.

39. What is the full form of CNC ?

a) Computerized and Numerically Counted, b) Computerized and Numerically Controlled c) Computerized and Numerically Claimed d) None of the above.

40. The party getting the contract has to replace it with performance guarantees of upto ______________ of the estimated value and experience certificate.

a) 20 c) 30 b) 25 d) 10.

Answers :




31. (c) 32. (c) 33. (c) 34. (a) 35. (c) 36. (b) 37. (b) 38. (b) 39. (c) 40. (d).

Business Correspondence – II :

29. It is a document that outlines the contents of the forth coming meeting.

a) Meeting c) Minutes b) Agenda d) None of the above.

30. The abbreviation ISDN stands for ______________.

a) Integrated Small Digital Network b) Integrated System Digital Network, c) International Small Display Network, d) Integrated System Display Network.

31. The following is an example of which type of letter :

Dear Sir,

Please refer to our statement of a/c for the period ending Dec. 2011, which was Mailed to you on 5th Jan, 2012 and the telephonic reminder letter. We regret to enforce that we have still not received that Payment.

We will agree that delayed payments may affect schedule and cause avoidable inconvenience to both the parties.

We shall be grateful if you remit the outstanding amount on the receipt of this letter.

a) Collection Letter c) Statement of Account b) Reminder Letter d) Final Reminder.

32. Banking requires letter writing for following service.

a) Overdraft limit c) Postal authorities b) Dividend d) Policy renewal.

33. In which Legal Condition, a person or Business has liabilities exceeding the assets and the debtor is unable to pay the amount.

a) Winding up process c) Bankruptcy b) Incorporation d) None.

34. The term ___________ is used for the introduction of new technologies like CAM in manufacturing of existing products.

a) Overdraft c) Money order b) Loan d) None.

35. The Policy may be declared ___________ if the Insurer detects under-Insurance.

a) Policy renewal c) Null and void Policies b) Overdraft limit d) None.




36. The language of the minutes should be.

a) Harsh c) Simple and precise b) Complex d) None

37. Minutes of each meetings should have _______________ containing the type of meeting.

a) Time c) Letters b) Heading d) Date.

38. _______________ connect the different Branches of an organization in a private, dedicated communication network.

a) ISDN c) VSAT b) Post box facility d) AAR.

Answers :

29. (b) 30. (c) 31. (b) 32. (a) 33. (c) 34. (b) 35. (b) 36. (c) 37. (b) 38. (c).

Administration :

27. In cases where the receiver ha the telegraphic code, the full address has to be mentioned.

a) True c) Partly True b) False d) None of the above.

28. Representative bodies to trade and commerce routinely receive representations from :

a) President c) Members b) Minister d) Public

29. When relief sought can only be provided through legislative action or policy charge, whom should the effected business make a representation.

a) Members c) President b) Director concerned d) Concerned ministry

30. When an organization needs to share important information with members of general public such as change of name it drafts :

a) Representation c) Invitations b) Public notes d) Individual invitation.

31. Invitations are normally sent only when the occasion is :

a) Informal c) Urgent b) Formal d) Personal

32. Word omission and word abbreviation are a necessary part of telegram and :-

a) Fax-messages c) Public notice b) Telex messages d) Representation.

33. Normal grammar and punctuation are often ignored in favor of condensation in :




a) Fax c) Invitations

b) Telegram d) E-mails.

34. Sources used for the quick transmission of messages :

a) Telegram c) Fax b) E-mail d) All above.

35. The Sender can send any length message through

a) Fax c) Both a) & b) b) E-mail d) None.

36. It is advisable to use the telephone to reply to invitation.

a) True c) True, at the time of emergency b) False d) True, for the informal occasions.

Answers :

27. (b) 28. (c) 29. (d) 30. (b) 31. (b) 32. (b) 33. (b) 34. (d) 35. (c) 36. (b)

Inter-Departmental Communication :

13. ………………... does not have salutation and complimentary close :

a) Memo c) Office note b) Office Order d) None of the above.

14. …………………….. is not a type of intra-organizational communication :

a) Advertisement c) Office Note b) Officer Order d) Office Circular

15. …………………. Letters are necessary to be written on a letter head :

a) Office Notes b) Representation to Management, c) Correspondence with Regional Office, d) Office Orders.

16. ………………….. are used commonly for issuing instructions to the staff.

a) Memos c) Office order b) Office Notes d) None of these.

17. Office notes are exchange between __________ different departments.

a) Three c) Five

b) Four d) Two

18. Representation to management does not includes :

a) Individual Preference c) Suggestions for transfers b) Special holidays d) Both a) & b).




19. ____________ have a format Similar to that of memorandums :

a) Office notes c) Office orders b) Office circulars d) None of the above.

20. Replies to representation can be :

a) Management could accept respect b) May give an oral reply c) Could issue an office order d) All of the above.

21. Disseminate means :

a) To cause faster or greater activity b) Respectful request c) Capable of being Perceived d) To Scatter or spread widely.

22. The testing or a trial of a Person’s conduct, character, qualifications or the like means :

a) Bipartive c) Probation b) Meritorious d) Inter office.

Answers :

13. (a) 14. (a) 15 (c) 16. (a) 17. (d) 18. (a) 19. (c) 20. (d) 21. (d).

Preparation of Press Release :

13. A news which are usually drafted in house is kind of :

a) Press report c) Both a) and b) b) Press release d) None of above.

14. There are __________ types of press release.

a) 2 c) 5

b) 3 d) 6

15. Awards is instituted by ___________

a) Government b) International agencies c) Organization working in specific fields. d) All of above.

16. Company Promptly issues a release to increase its _________

a) Profit c) Goodwill b) Turnover d) Both a) and c).

17. Input received by Professional journalists is called _____________.




a) Press report c) Both a) & b)

b) Press release d) None of above.

18. Means of PRO is ______________

a) Press Release Organization c) Press Report Organization. b) Public Relations Officer d) None of above.

19. The Press release may be sent to _____________

a) Public information c) Companies information b) Disseminate information d) Both a) & b).

20. Company organizes the press release when company wants to __________

a) Share all its thoughts with Public b) Share Some important information with public c) Share some of its problem with Public d) All of above.

21. ____________ Style of language is most suitable for targeting the audience or the Market aimed at.

a) Polite & Soft c) Attitude & information b) Confidence & attitude d) All of above.

22. Types of Press release is _______________

a) R & D Break though c) New service

b) Study finding d) All of above.

Answers :

13. (b) 14. (d) 15. (d) 16. (c) 17. (a) 18. (b) 19. (b) 20. (b).

E-Correspondence :

19. Full form of POP :

a) Post office plan c) Point office protocol b) Point office pratocal d) Point office plan.

20. Which year was water shed year in e-mail marketing ?

a) 1946 c) 1966 b) 1956 d) 1976.

21. Uses of Internet :

a) Sending e-mail c) E-commerce b) Tele conferencing d) All of the above.

22. It is electronic, Cost – effective and fastest mode of communication as of today.

a) Internet c) E-Correspondence




b) E-mail d) None of the above.

23. In year _________ MIT was the first to demonstrate the use of the first e-mail system, known as MAIL Box.

a) 1965 c) 1976 b) 1974 d) 1968

24. Full form of FTP is :

a) Full Time Protocol c) Fun Time Program b) File Transfer Program d) file Transfer Protocol

25. The ____________ option allows us to share documents, work sheet, presentations, pictures and videos along with the mails :

a) Spam c) Attachments b) Interface d) None of the above.

26. Which of this is not an advantage of EMAIL :

a) Managing E-mail is easy c) E-mail is inexpensive b) E-mail is fast d) Security.

27. Purposes of Intranet :-

a) Internet Communication b) Send private messages c) Used as a corporate culture – change platform.

d) All of the above.

28. Full form of HTML is :

a) Hyper Text Mail Language c) Hyper Text Markup Language b) Hyper Transfer markup language d) High Time Markup Language.

Answers :

19. (c) 20. (d) 21. (d) 22. (a) 23. (a) 24. (d) 25. (c) 26. (d) 27. (d) 28. (c)

Business Environment :

56. _________ was set up to channel foreign capital investment :

a) SEBI b) Foreign Investment Promotion Board c) Special Economic Zone d) International Trade Promotion Board.

57. Which of the following is an element of Political environment?

a) Legislature c) Executive




b) Judiciary d) All of the Above.

58. Which of the following is a method of Privatisation :

a) Divestiture c) Franchising b) Denationalization d) All of the above.

59. The form of privatization in which the government company retains its legal status even though some or all of its operations are suspended is called.

a) Controlling c) Informal liquidation b) Formal liquidation d) Denationalization.

60. The method of Privatization in which the government authorizes the delivery of certain services in a designated area is called :

a) Franchising c) Contracting b) Leasing d) Divesture.

61. Which of the following is not a use of Vision/Mission Statement :

a) Inspiring the Employees b) Defining Problems & Standards c) Increasing the profits and revenue, d) Defining the Performance Standards.

62. Which of the following is not true in relation to the business environment ?

a) It is beyond the organizational

b) It is a sum total of internal and external control factors c) Organization can remain insensitive to the business environment d) It is dynamic in nature.

63. USP stands for :

a) Unique Selling Price c) Unique Selling Point b) Unique Strategic Price d) Ultimate Selling Price.

64. The partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy is called as :

a) Divesture c) Denationalization b) Environment withdrawal d) Reprivatization.

65. The process of restoring to its former properties seized by the government is called :

a) Divesture c) Reprivatization, b) Restoration d) Liquidation.

Answers :

56. (b) 57. (d) 58. (d) 59. (c) 60. (a) 61. (c) 62. (c) 63. (c) 64. (a) 65. (c).




Forms of Business Organization :

December 2012 :

1. _________________ is a feature of partnership form of business : a) Separate legal entity from the firm b) Limited scope for raising finance c) The liability of a partner is limited to his contribution to capital. d) Registration of partnership is compulsory.

2. __________________ form of business is/are appropriate for retail business. a) Sole proprietorship c) Company b) Partnership d) Both a and b.

3. Which one of the following does not have perpetual succession ? a) Company c) Sole Proprietorship b) Statutory corporation d) Co-operative Society.

4. What is the maximum number of partners involved in the non-banking organization in India ? a) 10 c) 20 b) 15 d) 7

5. In a Hindu Undivided Family, liability of ____________ is unlimited. a) Karta c) Both a and b. b) Co-parceners d) Neither a and b.

6. In relation to business organization structure, which one of the following is easy to form and wind up ? a) A company c) Statutory corporation b) A sole proprietorship d) Public enterprises.

7. Which is not a feature of LLP ?

a) Separate legal entity b) All LLP have existence for fixed period. c) Partners in an LLP are required to turn into an agreement. d) In an LLP, partners are not liable for the act of other partners.

8. Voting right that vests with each member of co-operative society is : a) One member one vote b) Right to vote in proportion of capital c) Right to vote as mentioned in memorandum d) None of the above.

9. Gas Authority of India Limited is an example of : a) Limited liability partnership c) Public enterprise b) Private limited company d) None of the above.

10. What is the maximum strength of HUF ____________ a) 10 c) 100 b) 20 d) No limit.

Answers :

1. (b) 2. (d) 3. (c) 4. (c) 5. (a) 6. (b) 7. (a) 8. (a) 9. (c) 10. (d)




Scales of Business :

59. An organization established for providing essential services like railway, postal services, broadcasting etc. is called :

a) Statutory Corporation c) Public Company, b) Departmental undertaking d) Government company.

60. A government company refers to a company in which _____________ is held by the central or state government.

a) 51% of authorized capital c) 51% of nominal capital b) 51% of Subscribed capital d) 51% of the paid up capital.

61. Life Insurance Corporation, State Trading Corporation etc. are the examples of :

a) Statutory corporation c) Departmental undertaking b) Government company d) Public company.

62. Which of the following requires registration under the Companies Act, 2013 :

a) Departmental undertaking c) Government company b) Statutory corporation d) None of the above.

63. ONGC, BHEL, Hindustan Machine Tools Limited etc. are the examples of :

a) Statutory corporation c) Departmental undertaking b) Government company d) None of the above.

64. The country in which the headquarters of MNC are located is called :

a) Host country c) Principle country b) Home country d) None of the above.

65. The foreign country in which the MNC operates its business is called as :

a) Host Country c) Foreign Country b) Home Country d) None of the above.

66. Bringing credits savings and other essential services to the poors is called :

a) Poor Finance c) Micro Finance b) Micro Credit d) Both b) and c).

67. The agreement entered into by two countries in order to facilitate trade and removing restrictions is called :

a) Liberal agreement c) Co-operative agreement, b) Mutual agreement d) Bilateral agreement.

68. The advantages of MNC’s to the Home country include.

a) Inflow of foreign exchange c) Both a) and b) b) Promoting bilateral trade relations d) Neither a) nor b)




Answers :

59. (c) 60. (d) 61. (a) 62. (c) 63. (b) 64. (b) 65. (a) 66. (d) 67. (d) 68. (c).

Emerging Trends in Business :

32. The practice of using another firm’s successful business model is called :

a) Franchising c) Outsourcing. b) Leasing d) Network marketing.

33. The Franchisee is required to pay to the Franchiser :

a) Remuneration c) Pre determined sum b) Fees d) Royalty.

34. A BPO contracted outside the companies country is called :

a) Off shore outsourcing c) Far shore outsourcing b) Near shore outsourcing d) Foreign outsourcing.

35. PDA stands for

a) Personal Data Account c) Private Distributing Agency b) Permanent Direct Account d) Personal Digital Assistance.

36. Which of the following is not a feature of Franchising ?

a) The franchiser allows the franchisee to use his trade mark. b) The franchisee is required to follow the franchiser’s policy. c) The franchiser does not make any arrangement for training the employees d) The franchisee agreement is for a limited period of time.

37. ITES stands for :

a) Information Technology Energy System b) Information Technology Enabled Software c) Information Technology Enabled Services.

d) None of the above.

38. Which of the following statement is True ?

a) Franchiser exercises more control as compared to distributor, b) Franchiser exercises less control as compared to the distributor c) Franchiser and distributor have equal control. d) None of the above.

39. Which of the following is not an advantage of E-commerce ?

a) Low start up cost c) Saving of time and effort b) Quick delivery d) All of the above.

40. EDI stands for




a) Electronic Device Interchange c) Electronic Device Interchange

b) Employee Data Interchange d) None of the above.

41. EFT stands for :

a) Electronic Funds Transfer c) Enterprise Financial Transfers b) Electronic Financial Transfer d) Enterprise Funds Transfers.

Answers :

32. (a) 33. (d) 34. (a) 35. (d) 36. (c) 37. (c) 38. (a) 39. (a) 40. (a) 41. (a).

Business Functions :

38. Which of the following is not a requirement of Flow Method :

a) There must be substantially constant demand. b) The product must be standardized c) Division of work into parts or operations d) All the operations must be carefully defined.

39. Job Method includes :

a) Low Technology jobs c) Neither a) nor b) b) High Technology jobs d) Both a) and b).

40. Which one of the following is not a feature of selling ?

a) It has a long-term perspective c) It is based on the law of Caveat Emptor b) It considers profit as a sole motive d) It focuses on producers.

41. Which one of the following is not a feature of marketing :

a) It focuses on customers b) It considers product identification and customer satisfaction c) It follows the law of Caveat Vendor

d) It has a short term perspective.

42. Which of the following is not a general function of Marketing :

a) Market and consumer research b) Temporary Adoption c) Full Satisfaction of demand, d) Maximising of economic efficiency.

43. Which one of the following is not a feature of HRM :

a) It is pervasive in nature c) It is a multidisciplinary activity b) Helps in motivating the employees d) It focuses on rules.

44. Which of the following is not a function of a Company Secretary ?




a) Conducting the Statutory meetings of the company,

b) Liasoning and managing procedural formalities. c) Communicating the results to the interested parties d) Representing the organization for registration of company, change of name etc.

45. The Accounting function includes :

a) Communicating results b) Protecting the business properly c) Liasoning and managery procedural formalities d) Both a) & b)

46. The term ICT stands for

a) Internal Communication Tapping b) Initial Corporate Tax c) Insurance, Cartage and Transportation d) Information and Communication Technology.

47. Borden’s Marketing Mix does not include :

a) Product Planning c) Promotion b) Penetrating d) Advertising.

Answers :

38. (c) 39. (d) 40. (a) 41. (d) 42. (b) 43. (d) 44. (c) 45. (d) 46. (d) 47. (b)

Introduction to Law :

57. Which of the following is NOT correct in context to the High Court in India ?

a) It is the court of Co-ordinate Jurisdiction. b) Privity council decisions are not

c) It decisions are binding on all tribunals within its jurisdiction. d) All of the above.

58. A Bench of three Judges in a High Court is called as :

a) Smallest bench c) Triangular Bench b) Division Bench d) Full Bench.

59. The Smallest Bench in a High Court consists of how many Judges?

a) Five c) One b) Two d) None of the above.

60. A Bench of two judges in High Court is called as :

a) Smallest Bench c) Full Bench b) Division Bench d) None of the above.




61. The Hindu Personal law is basically found in :

a) Shruti c) Both a) and b) b) Smriti d) None of the above.

62. Which of the following is not a Smriti ?

a) Manu c) Narada b) Yajnavaldya d) Shruti

63. Which of the following is NOT a type of precedent ?

a) Persuasive Precedents c) Conditional Authority Precedent b) Original Precedent. d) Passive Precedent.

64. The Courts are required to apply the personal law of the parties where the point at issue is not covered by a statutory law or custom.

a) True c) Partly False b) False d) Partly True

65. The guidance or authority of the past decisions of the court are called :

a) Judicial Precedents c) Persuasive Precedents b) Original Precedents d) None of the above.

66. Legal customs and conventional customs are a part of :

a) Customs without Sanction c) Judicial Customs b) Customs having Sanction d) Voluntary Customs.

Answers :

57. (b) 58. (d) 59. (c) 60. (b) 61. (c) 62. (d) 63. (d) 64. (a) 65. (a) 66. (b).

Elements of Company Law Part I :

106. The licence to form a company “not for profit” is granted by

a) State Government c) High Court b) Registrar d) Central Government.

107. Government Company is defined under which section of the Companies Act, 1956?

a) Sec. 2(45) c) Sec. 631 b) Sec. 517 d) None of the above.

108. In a Government Company, the minimum share of Centre and State Government is :

a) 51% or more of the paid up share capital b) 51% or more of the issued share capital c) 51% or more of the authorized share capital d) None of the above.




109 : The auditor of a Government company is appointed by :

a) Central Government b) Comptroller and Auditor General of India, c) Directors of the Company d) Shareholders of the Company.

110. The time period within which the annual report of government is submitted to the parliament is :

a) Six months from the end of the financial year b) Three month of AGM c) One month of AGM d) None of the above.

111. Which amongst the following documents is not required to be filed by a foreign company with the Registrar?

a) Address of the registered office of the company b) Address of the principles place of business in India c) Declaration of Solvency d) Articles of Association.

112. If XYZ is the holding company of P&R Ltd. then, which f the following statement is not true in this regard.

a) XYZ Ltd. controls the composition of Board of P&R b) XYZ Ltd. holds more than 50% of the nominal value of the equity shares c) Both a) & b) d) None of the above.

113. Which of the following is not a stage of the development of company?

a) Promotion c) Incorporation b) Production d) Commencement of Business.

114. Provisions related to accounts, winding up, calls on shares, forfeiture, etc. are contained in :

a) Articles of Association c) Prospectus b) Memorandum of Association d) Statement in lieu of prospectus.

115. Which one of the following is not a main clause of memorandum of association?

a) Name clause c) Object clause

b) Capital clause d) Profit clause.

Answers :

106 (d) 107. (a) 108. (a) 109. (b) 110. (b) 111. (c) 112. (d) 113. (b) 114. (a) 115. (d)




Elements of Company Law Part II :

77. The meeting which is held by a particular category of shareholders is called as :

a) Class Meeting c) Sporadic Meeting b) Specific Meeting d) None of the above.

78. Which of the following statement is NOT correct with respect to a Board Meeting ?

a) No time limit for serving the notice is prescribed by the Act. b) The Board meeting should be held only at the registered office of the company.

c) The Board meeting can also be held on a public holiday. d) The BM can be held even after the normal business hours.

79. It is compulsory for a company to appoint a Company Secretary if :

a) The paid up share capital is 5 crore or more. b) The paid up share capital is 10 crore or more. c) The annual turnover of the company exceeds 100 crore. d) It the net profit of the company is more than 2 crore.

80. Which one of the following is not a power of a Secretary?

a) The acts directed to him by the Board b) The acts required to perform in order to discharge his duties. c) The acts required to be performed under an Act. d) Calling up the Board Meeting.

81. As per Sec. 2(35) of the Income Tax Act, 1961, a Company Secretary is :

a) Manager c) Coordinator b) Principle officer d) None of the above.

82. MCA stands for

a) Ministry of Corporate affairs b) Manager of Company Accounts

c) Ministry of Corporate Administration d) None of the above.

83. BOOT stand for

a) Building Optimum Operational Tools b) Budgetary Online Operational Technology c) Build, Organise, Operate and Transfer d) Build, Operate, Own and Transfer.

84. Which amongst the following is NOT a role of a Company Secretary ?

a) As a statutory officer c) As a coordinator b) As an administrative officer d) As a manager.

85. Which of the following task is not required to be performed by a Company Secretary?

a) Communicating results to the interested parties




b) Signing the annual return.

c) Sending notice of meetings to the Directors. d) Assisting the liquidator in the winding up of the company.

86. The length of the notice of GM is stated under which section of the Companies Act, 2013.

a) Sec. 101 c) Sec. 231 b) Sec. 238 d) None of the above.

Answers :

77. (a) 78. (b) 79. (a) 80. (d) 81. (b) 82. (a) 83. (d) 84. (d) 85. (a) 86. (a).

Elements of Law Relating to Partnership :

121. As per Garner V/s Murray Rule, the deficiency attributable to the insolvency of a partner must be borne by other partner in :

a) In the ratio of profit c) It should be borne equally b) In the ratio of capital d) None of the above.

122. Which of the following statement is not true in context to an unregistered firm ?

a) The partner of the firm cannot sue each other. b) The partnership firm cannot sue the third party. c) The third party cannot sue the firm. d) The partner of the firm cannot sue the firm.

123. Which of the following statement is False ?

a) There can be no specific performance of a partnership agreement. b) The registration of partnership is compulsory as per the Partnership Act, 1932. c) The proceeds of sale of goodwill is to be divided in the profit sharing ratio d) All of the above.

124. Which of the following is NOT an essential of a partnership ?

a) Association of two or more persons. b) Agreement c) Sharing of profits d) Registration of partnership.

125. When a person behaves in a manner that he is a partner of the firm but actually he is not a

partner, then it is called as :

a) Nominal partnership c) Dormant partner b) Partnership by estoppels d) None of the above.

126. Where a partner does not participate into the affairs of a company and only shares the profit then, he is called.

a) Ostensible partner c) Sleeping partner




b) Dormant partner d) Both b) & c).

127. If a partner only gives his name to the firm and does not participate in the management of the firm, then he is called as :

a) Dormant partner c) Nominal partner b) Holding out partner. d) Sub partner.

128. When a partner agrees to share his profits with a third person, then such person is called as :

a) Sub partner c) Nominal partner b) Dormant partner c) None of the above.

129. Sharing of profits is a conclusive test of partnership :

a) True c) False b) Partly true d) Partly false.

130. The true test of partnership is :

a) Mutual agency c) Agreement b) Profit sharing d) All of the above.

Answers :

121. (b) 122. (c) 123. (b) 124. (d) 125. (b) 126. (d) 127. (c) 128 (a) 129. (c) 130. (a).

Elements of Law Relating to Indian Contract :

December 2012 :

1. What is the age of attaining majority as per Indian Contract Act, 1872 when the minor is under the guardianship of the court of wards ? a) 16 years c) 21 years b) 18 years d) 20 years.

2. Display of goods in a shop window with prices marked upon them is :

a) Agreement c) Invitation to offer b) Promise d) Contract.

3. A contract of agency may be created by : a) Express agreement c) Ratification b) Implied agreement d) All of the above.

4. A threat to commit suicide is deemed as : a) Fraud c) Misrepresentation b) Undue Influence d) Coercion.

5. In a contract of indemnity, the liability of indemnifier is : a) Secondary c) Primary b) Conditional d) Optional.

6. The expression “Quantum Meruit” literally means : a) As much as earned b) As per the claim of the aggrieved party




c) As much as work done

d) None of the above. 7. What is the status of a contract when the consent of a party is caused by coercion?

a) Void c) Valid b) Voidable d) Illegal

8. Which of the following statements is true about consideration ? a) Past consideration is valid in India. b) Consideration must result in benefit to both the parties. c) If there is no consideration, there is no contract. d) Consideration must be adequate.

9. In which of the following situations original contract need not be performed : a) When parties substitute a new contract for the old one. b) When the parties to a contract agree to rescind it c) When the parties to a contract agree to alter it. d) All of the above.

10. According to section 2(h) of the Indian Contract Act, ___________ is an agreement enforceable by law. a) Consideration c) Promise b) Agreement d) Contract.

Answers :

1. (c) 2. (c) 3. (d) 4. (d) 5. (c) 6. (a) 7. (b) 8. (a) 9. (d) 10. (d)

Elements of Law Relating to Sale of Goods :

100. In an auction sale, if the seller makes use of pretended bidding to raise the price, then the :

a) Sale is voidable at the option of the seller. b) Sale is void. c) Sale is voidable at the option of the buyer. d) The buyer is not required to pay the excess amount charged by the seller.

101. Which of the following is an implied condition under a sale by description ?

a) Goods must correspond with the description. b) Goods must be of merchantable quality. c) Condition as to wholesomeness d) All of the above.

102. Which of the following is an implied condition under a sale by sample ?

a) The bulk shall correspond with the sample b) Implied condition of merchantability.

c) Both a) and b) d) Neither a) nor b)

103. Subject to contract to the contrary, which of the following is NOT an implied warranty as per the Sale of Goods Act, 1930?




a) Warranty as to resale of the goods

b) Warranty implied by the custom as usage of trade c) Warranty to disclose dangerous nature of goods d) Warranty as to freedom from encumbrances.

104. As per Sec. 45 of the Sale of Goods Act, 1930 an unpaid seller is a person, who :

a) Who has not been paid the whole price. b) A person who received a bill of exchange which was dishonoured c) Both a) and b) d) Neither a) nor b)

105. The right of an unpaid seller to keep the possession of the goods and refuse to deliver the goods to the buyer is called.

a) Right of refusal c) Right of lien b) Right to resale d) None of the above.

106. The right of lien will not be lost in which of the following cases :

a) By waiver of lien by the unpaid seller b) When the goods are delivered to the carrier and the seller reserves the right of disposal of

goods. c) When the buyer lawfully obtains the possession of the goods d) None of the above.

107. In which of the following case, the transit will not come to an end ?

a) When the buyer obtains the delivery before they arrive at the destination. b) Where the carrier acknowledges that he holds the goods on the behalf of buyer. c) When the carrier wrongfully refuses to deliver the goods d) When the goods are rejected by the buyer and the carrier holds them.

108. The right to stop the goods in transit can be exercised by the unpaid seller by :

a) Taking actual possession of the goods b) Giving notice of the sellers claim to the carrier c) Both a) and b) d) Neither a) nor b).

109. Right to lien can be exercised by the seller :

a) On non-payment of the sale price. b) On breach of warranty c) On anticipatory breach. d) All of the above.

Answers :

100. (c) 101. (d) 102. (c) 103. (a) 104. (c) 105. (c) 106. (b) 107. (d) 108. (c) 109. (a).

Elements of law Relating to Negotiable Instruments :





a) When the drawer has countermanded payment b) When the party to whom the notice is to given cannot be searched c) When the party promises to pay unconditionally. d) All of the above.

48. Discharge in relation to a negotiable instrument can be done by

a) Discharge of the instrument c) Neither a) nor b) b) Discharge of parties liability d) Both a) and b).

49. The liability of the maker of a promissory note is

a) Primary and absolute c) Both a) and b) b) Secondary and conditional d) None of the above.

50. The liability of the drawer of a bill is

a) Primary and absolute c) Both a) and b)

b) Secondary and conditional d) None of the above.

51. The essential condition of an inland bill is

a) The instrument is drawn or made in India b) The instrument must be payable in India or the drawee must be in India. c) Both a) and b) d) Neither a) nor b).

52. The person on whom the bill is drawn is known as

a) Drawer c) Payee b) Drawee d) All of the above.


a) Notice of the dishonour of a bill is necessary b) Notice of dishonour of cehque is NOT necessary c) Both a) and b). d) None of the above.

54. The mode of crossing by which the holder of the cheque cannot get the payment over the counter but through any of the bank only is called :

a) General crossing c) Account payee crossing b) Special crossing d) None of the above.

55. The mode of crossing by which the holder of the cheque can get the payment only through a specified bank is called :

a) General crossing c) Account payee crossing b) Special crossing d) None of the above.

56. The mode of crossing in which the proceeds are to be credited only to the account of the payee or the party named or his agent is called :




a) General crossing c) Account payee crossing

b) Special crossing d) None of the above.

Answers :

47. (d) 48. (d) 49. (a) 50. (b) 51. (c) 52. (c) 53. (c) 54. (a) 55. (b) 56. (c).

Entrepreneurship :

December 2012 :

1. An employee who is given the required support and resources to create new product or services is known as : a) Auditor c) Entrepreneur b) Intrapreneur d) None of the above.

2. Which one of the following is not an element of entrepreneurship ? a) Innovation c) Risk averseness b) Organization skill d) Vision.

3. What is the nature of entrepreneurship ? a) An economic activity c) A political activity c) A cultural activity d) A technological process.

4. The key element of entrepreneurship is : a) Management Skills c) Creativity and innovation b) Capital d) Business acquaintances

5. For, being an entrepreneur, risk bearing is : a) The only factor c) The least factor b) One of the factor d) Not a factor.

6. Intrapreneur faces competition from

a) Entrapreneur c) Employees within the organization b) Managers d) All of the above.

7. Entrepreneur is a person : a) Having high aptitude b) Who wants to work for himself c) Ready to bear risk for profit in new venture d) All of the above.

8. According to Peter Drucker, entrepreneurship is : a) A science c) Both a science and an art b) An art d) Neither a science nor an art.

9. Which of the following is not true about an entrepreneur? a) An e entrepreneur is creative, innovative and risk taker b) An entrepreneur is independent. c) An entrepreneur is not future oriented d) None of the above.

10. The risk borne by entrepreneur is _____________ a) Less c) Moderate b) Extreme d) None of the above.




Answers :

1. (b) 2. (c) 3. (a) 4. (c) 5. (b) 6. (c) 7. (d) 8. (d) 9. (c) 10. (b).

Entrepreneurship – Creativity and Innovation :

54. Which of the following statement is true ?

a) Business plans are only for start up companies. b) Business plans should emphasize on ideas and concepts and not on people. c) Realism should prevail over optimism. d) Only the founding entrepreneur should prepare business plans.

55. An inner or environmental stimulus to action force or factors responsible for initiation, sustaining behaviour is called :

a) Motivation c) Innovation b) Leadership d) Experience

56. Motivation can be

a) Diverse c) Dynamic b) Multiple d) All of the above.

57. Which of the following statement is not true in respect of Passive Scanning :

a) It has been a major source of information about the external world. b) It is almost at an unconscious level.

c) The criterion for passive planning is specified. d) The criteria for passive planning keeps onchanging

58. The active scanning of an existing resource for a specific item is called as :

a) Directed Scanning c) Passive Scanning b) Active Scanning d) specified Scanning.

59. Which of the following is not an element of PESTLE analysis :

a) Economics c) entrepreneurship b) Environment d) Legal.

60. The belief in one’s capabilities to organize and execute the courses of action required to manage prospective situations is called as :

a) Self Efficacy c) Risk taking b) Creativity d) Leadership.

61. Strengths and weakness are :

a) Internal components of SWOT Analysis b) External Components of SWOT Analysis c) Both a) and b) d) Neither a) nor b).




62. Opportunities and threats are :

a) External factors of SWOT Analysis. b) Internal Components of SWOT Analysis. c) Both a) and b) d) Neither a) nor b).

63. SWOT matrix is also called as :

a) GE Matrix c) IE matrix b) OT matrix d) SW matrix.

Answers :

54 (c) 55. (a) 56. (d) 57. (c) 58. (a) 59. (c) 60. (a) 61. (a) 62. (a) 63. (b).

Growth and Challenges of Entrepreneurial Venture :

22. In case of deficit budget, the cumulative amount borrowed from the public will :

a) Increase c) Have no effect b) Decrease d) None of the above.

23. Which of the following is not included in the seven trends to be faced by an organization.

a) Speed and uncertainity will prevail b) Loyalty will erode

c) Work will be done at a specified time and place. d) Technology will continue to disrupt and enable.

24. The first step to modernization is :

a) Research c) Development b) Finance d) Efficient modernizing approach.

25. The last step to Modernization is :

a) Development c) Efficient modernization b) Resource Procurement d) None of the above.

26. The introduction of a new product or service to meet the needs of an old market is called :

a) Diversification c) Growth b) Expansion d) None of the above.

27. The basic area of focus for India to utilize its talented pools to generate good entrepreneur is :

a) Ensuring access to the right skill b) Creating the right environment for success c) Enabling access to smart capital d) All of the above.




28. The formulation of effective management concentration on opportunities and threats in long

range plans is called as :

a) Operational Planning c) Expansion b) Administration d) Strategic Planning

29. The first stage in the development of Entrepreneurial firm is :

a) Start up stage c) Early growth stage b) Seed – stage d) All of the above.

30. The main objective of business planning is to :

a) Prude and implement the formal and systematic business plan. b) To expand the business c) To maximize profit d) To make the best possible use of resources.

31. As per the necessity-based entrepreneurship :

a) Entrepreneurship is necessary for the growth of the economy b) Choosing the entrepreneurship career is a compulsion and not a choice c) Both a) and b) d) Neither a) nor b).

Answers :

22. (a) 23. (c) 24. (a) 25. (c) 26. (a) 27. (d) 28. (d) 29. (b) 30. (a) 31. (b).


9. Who coined the word POSDCORB about functions of management ? c) Henry Lawrence Gantt c) Newmann and Summer d) Henry Fayol d) Luther Gulick.

10. Management is a / an c) Exact science, c) Inter disciplinary science d) Science as well as art d) All of the above.

11. Who corrected the difficulties of Taylor’s differential piece rate system ? c) Henry Lawrence Gantt c) Newmann and Summer d) Henri Fayol d) Max Weber.




12. Which one of the following definitions of management is given by Henry Fayol ?

e) Management is to forecast, to plan, to organize, to command, to co-ordinate and control activities of others.

f) The process of getting things done by the people and for the people. g) The functions of getting things done through people and directing efforts of individuals

towards a common objective. h) None of the above.

13. Who distinguished between ‘Principles’ and ‘slements’ of management ? c) Fredrick Taylor c) Henri Fayol d) Newmann and Summer d) Henry Lawrence Gantt.

14. At which level of management hierarchy intellectual skill is the most important & vital ? c) Lower c) Higher d) Middle d) All of the above.

15. Superior – Subordinate theory was given by : c) Henry Fayol c) Koontz O’ Donnel d) V.A. Gralcunas d) Joseph Jecard.

16. Which of the following is a concept given by Frederick Taylor ? c) Division of work c) Stop watch study d) Unity of command d) None.

Answers :

2. (d) 2. (c) 3. (a) 4. (a) 5. (c) 6. (c) 7. (b) 2. (c)

Planning :


c) Reflective thinking c) Farsightedness d) Imagination d) Quantifiable.


c) Underlines c) Unified d) Will defined d) Parallel.


c) Programme c) Organising

d) Budget d) None of these.


c) Rules, c) Methods d) Budget d) All of these.


c) Non-materials c) Numerical expression d) Money d) Both b) and c)





c) Marketing c) Operational

d) Project d) Strategic.


c) Static c) Both a) & b) d) Dynamic d) None of these.


c) Staffing c) Control d) Direction d) All of these.


c) Procedures c) Planning d) Budget d) Rules.


c) Comprehensive c) Limited d) Unlimited d) Both a) and b).


c) Planning c) Organising d) Forecasts d) All of these.

Answers :

63. (d) 64. (c) 65. (a) 66. (d) 67. (d) 68. (a) 69. (b) 70. (d) 71. (b) 72. (b)

73. (d).

Organization :


c) Centralization c) Organization d) Decentralization d) Controlling.


c) Planning, c) Organization d) Controlling d) Directing.


c) Planning, c) Directing d) Organizing d) Controlling.

36. _______________ can be defined as collection of people and co-ordination of their activities of the enterprise :

c) Directing c) Organizing d) Controlling d) Planning.





c) Decision making c) Developing Relationships d) Division of Work d) Group Efforts.

38. ________________ means a large-part of decision making and authority is withhold at higher positions in the management hierarchy.

c) Decentralization c) Delegation d) Centralization d) Both a) and b).


e) Centralization, Decentralization, f) Delegation, Authority, g) Centralization, Decision making h) Decentralization, Delegation.


c) Control Techniques c) Management Attitude d) Size of the Enterprises d) Allotment of Duties.


c) Keith Davis c) Kasts and Resenzweing d) Barnard d) Larry E. Greiner.


c) Authority c) Accountability d) Responsibility d) Authority – Power Contimum.

Answer :

33. (b) 34. (c) 35. (b) 36. (c) 37. (b) 38. (b) 39. (d) 40. (d) 41. (a) 42. (a)



9. In which of the following methods of performance appraisal, employees are distinguished as outstanding, above average, average, below average and poor. c) Ranking Method, c) Unstructured appraisal d) Check lists d) Forced distribution method.

10. Which one of the following is an internal source of recruitment? c) Placement Agency c) Transfer d) Employment Exchange d) Educational Institutions.

11. Which one of the following is the expanded form of acronym ‘MBO’ ? e) Management of Business Organization, f) Management of Business Objectives, g) Management by Options




h) Management by Objectives.

12. The act of increasing the knowledge and skill of an employee for doing a particular job, is known as : c) Promotion c) Training d) Selection d) Transfer

13. Performance appraisal helps in : e) Orderly determination of an employee’s worth to an organization. f) Meeting manpower needs of the organization. g) Improving communication abilities, human relation and managing interaction with

subordinates. h) None of the above.

14. Ranking, rating scales and check lists are the method of : c) Job description c) Performance appraisal d) Promotion method d) None of the above.

15. Which one of the following refer to the study of individual and group behaviour in an organization? e) Organizational behaviour f) Human resource management g) Human relations

h) Group dynamics. 16. The full form of BARS is :

e) Behaviourally Anchored Ranking Scales, f) Behaviourally Anchored Rating Scales g) Behaviourally Anchored Rollback Scales h) None of the above.

Answer :

2. (d) 2. (c) 3. (d) 4. (c) 5. (a) 6. (c) 7. (a) 8. (b) 9. (b).



c) Principle of Integrity c) Principle of Clarity d) Principle of Disintegration d) Principle of Strategic use of informal orgn.


c) Parent – child c) Parent – Adult d) Child – Parent d) Adult – Adult.


c) Internal c) Both a) and b) d) External d) None of the above.





c) Chairman c) PRO (Public Relation Officer,

d) Secretary d) Director.


c) Vertical Co-ordination c) Both a) & b). d) Horizontal Co-ordination d) Upward Co-ordination.

44. _______________ is characterized by the emergence of spontaneous channels through which

facts, half truths, and rumours pass.

c) Formal communication c) Mix communication d) Informal communication d) None of the above.


c) Pictures c) Action d) Media d) Written communication.


c) Perfunctionery Action c) Premature Evaluation d) Semantic Distortion d) Resistance to Change.


c) Co-ordination c) Directing d) Controlling d) Organizing.


c) Co-ordination c) Cooperation d) Controlling d) None of the above.

Answers :

39 (b) 40. (d) 41. (b) 42. (c) 43. (a) 44. (b) 45. (c) 46. (b) 47. (a) 48. (c)

Controlling :


6. Which one of these is not a traditional method of controlling : c) Budgetary Control c) Merit – Rating,

d) Standard costing d) Break-even analysis. 7. Which one of the following is not correct about control ?

e) Control is forward looking f) Control suggests corrective actions g) Control is one time activity h) Control is exercised as per organisational authority.




8. Which one of the following is considered as non-traditional control technique?

c) Internal audit c) Zero-base budgeting d) Break-even analysis d) Financial ratio analysis.

9. Which one of the following is known as technique of controlling ? c) Margin of safety c) Break-even analysis d) Marginal of Contribution d) P/v Ratio.

10. In which country the zero base budgeting was first evolved? c) Japan c) India d) USA d) China.


c) Economic Function c) Health of Earning d) Basis for Control d) Sales Figures


c) Standard Costing c) Internal Audit d) Budgetary Control d) Network Analysis.


c) Standard Costing c) Statistical Control d) Budgetary Control d) Internal Audit.


c) Network Analysis c) Financial Ratio d) Break Even d) Standard Costing.


c) Forward looking c) Corrective action d) Feedback d) Flexible.

Answers :

2. (c) 2. (c) 3. (c) 4. (c) 5. (b).

41. (b) 42. (b) 43. (a) 44. (b) 45. (c).



c) Expand and diversify c) Spreading Business Risk d) Foreign Exchange Earning d) Integration of Economies.




27. _____________ is the phase where the level of the risk and its nature are assessed and

understood.

c) Risk Assessment c) Risk Management. d) Risk Analysis d) Risk Evaluation.


e) Minimising of opportunities f) Optimising the use of resources g) Improved Organizational Efficiency, h) Identify and evaluate risk.


c) Natural disaster c) Confrontation crisis d) Technological crisis d) Workplace Voilence


c) Natural Disaster c) Confrontation crisis d) Technological crisis d) Rumours.


c) 25, 35 c) 35, 45 d) 45, 55 d) 55, 65


c) Evaluate c) Assertive d) Prioritize d) None of the above.


e) Better informed decision making f) Less change of major problem in new and ongoing activities g) Increase likelihood of achieving corporate objective h) System of making choices.


c) First line supervisor c) Top Management

d) Middle Management d) None of the above.


c) Charles Kettering c) Kotler d) Kohler d) Venette

Answers :




26. (d) 27. (b) 28. (a) 29. (b) 30. (c) 31. (a) 32. (b) 33. (d) 34. (c) 35. (d).

Business Ethics :

December 12 :

11. Employer should behave ethically while dealing with others, i.e. employees suppliers, customers etc. In this sense, what view does Business ethics concept represent ? c) Narrow c) Conservative d) Limited d) Universal.

12. Which one of the following statements about business ethics is false ? e) Business ethics goes beyond legal issues. f) Ethical conflicts lead to ethical dilemma. g) Ethical conduct builds trust among individuals and in business relationships h) Application of business ethics is limited to the profitable organizations.

13. Which one of the following is the quality of an ethics coach ? e) He should have strong knowledge of ethical practices, f) He should have strong analytical skills g) He should have knowledge of decision making tools h) All of the above.

14. Business ethics and financial performance are linked together and hence are advantageous to : c) Company c) Employees d) Investors loyalty d) All of the above.

15. Ethics is considered as :- c) Normative Science c) Natural Science d) Exact Science d) None of the above.

16. Which of the following works as a motivation for an employee to work in an organization ? c) Monetary benefits c) Learning opportunities d) Career progression d) All of the above.

17. The Minimum Wages Act, 1965 was enacted for safeguarding the interests of :- c) Employees c) Consumers d) Management d) Government.

18. A written document of policies and principles that guides the behaviour of all employees is known as :- c) Ethical dilemma c) Financial delegation document d) Code of ethics d) None of the above.

19. Which one of the following means ethical dilemma ? e) A situation requiring a choice between ethical and unethical behaviour f) A situation of ethical behaviour. g) A situation of unethical behaviour. h) A written statement of policies and principles that guides the behaviour of all


e) Establishing social groups to pressurize the business organizations for adopting ethical practices.

f) Boycotting the organizations following unethical practices. g) Arranging ethical awareness programme for business houses.




h) All of the above.

Answers :

2. (d) 2. (d) 3. (d) 4. (d) 5. (c) 6. (d) 7. (a) 8. (b) 9. (a) 10. (d)



c) Ornamental c) Simplicity d) Clarity d) Both b) and c)

42. The Language of a politician obscures the truth. The language of an artist reveals it. This is said by :

c) Salman Rushdie c) Sydney J Harris d) Peter Drucker d) Nayantara Sehgal.


c) Peter Drucker c) Sydney Harris d) Francis Bacon d) Salman Rushdie


c) More time Consuming c) Can be easily revised d) Accurate and precise d) Sufficient time for planning.


c) Tape recorder c) Intercom d) Flip charts d) Both a) and c).


c) Saves time c) No record for future preference

d) Economical d) None of these.


c) Maps c) Graphs d) Slider d) All of the above.


c) Cinema c) Neon Hordings d) Video Conferencing d) All of the above.


e) True




f) False, if it is well coordinated

g) False, planning can never be a communication barrier. h) None of the above.


c) Verbal Communication c) Both a) and b) d) Non-verbal communication d) None of the above.

Answers :

41. (d) 42. (a) 43. (b) 44. (a) 45. (d) 46. (c) 47. (d) 48. (c) 49. (a) 50. (b).


December 12 :

11. Identify the correctly spelt word :- c) Occasion c) Occassion d) Ocasion d) Ocasion

12. The abbreviation ‘E&OE’ stands for : e) Errors and Omitted Errors f) Expected and Omitted errors g) Errors and Omissions excepted, h) Exceptions and omissions encountered.

13. The proverb apparel often proclaims the man means :- e) Clothes are everything f) You judge a man’s worth by his clothes, g) Apparels are expensive h) None of the above.

14. Fax is the abbreviation of :- c) Fascimile c) Fascicle d) Fascile d) Fiscal.

15. What does the idiom to split hairs mean ? c) Argue on major points c) Not to argue d) Argue on minor points d) Brainstorming.

16. ________________ Taj Mahal is situated in Agra. Fill in the blank using correct article. c) A c) The d) An d) None of the above.

17. Expired is a synonym of : c) Illegal c) Dishonoured d) Lapsed d) Matured.

18. Who is called a Connoisseur ? e) One who gives friendly help f) An expert judge in the matter, g) One who performs gymnastic feats, h) A member of royal family.

19. A word opposite to another word :




c) Antonym c) Homophones

d) Synonym d) Idiom. 20. ________________ err is human

________________ forgive is divine c) One c) Into d) To d) From

Answers :

2. (a) 2. (c) 3. (b) 4. (a) 5. (b) 6. (c) 7. (b) 8. (c) 9. (a) 10. (b).



c) Cost Insurance & Free c) Cost Insurance & Freight d) Call Insurance & Freight d) None of the above.


c) Lowest c) Highest d) Both a) and b) d) None of the above.


c) Tender c) Pre-qualification d) Estimate d) Reply.


c) Ready-to-send c) Sympathy d) Thank you d) Condolence.


c) Hike in price c) Stunts performed by actors

d) Inviting tenders d) Recruitment of personnel.


c) Attention c) Interest d) Attraction d) Desire.


c) Burdensome c) Penury d) Revenge d) Tedious.


c) Name of the company c) Phone No. d) Credit reference d) None of the above.





e) Computerized and Numerically Counted, f) Computerized and Numerically Controlled g) Computerized and Numerically Claimed h) None of the above.


c) 20 c) 30 d) 25 d) 10.

Answers :

31. (c) 32. (c) 33. (c) 34. (a) 35. (c) 36. (b) 37. (b) 38. (b) 39. (c) 40. (d).



c) Meeting c) Minutes d) Agenda d) None of the above.


e) Integrated Small Digital Network

f) Integrated System Digital Network, g) International Small Display Network, h) Integrated System Display Network.


Dear Sir,




c) Collection Letter c) Statement of Account

d) Reminder Letter d) Final Reminder.


c) Overdraft limit c) Postal authorities d) Dividend d) Policy renewal.




33. In which Legal Condition, a person or Business has liabilities exceeding the assets and the

debtor is unable to pay the amount.

c) Winding up process c) Bankruptcy d) Incorporation d) None.


c) Overdraft c) Money order d) Loan d) None.


c) Policy renewal c) Null and void Policies d) Overdraft limit d) None.


c) Harsh c) Simple and precise

d) Complex d) None


c) Time c) Letters d) Heading d) Date.


c) ISDN c) VSAT d) Post box facility d) AAR.

Answers :

29. (b) 30. (c) 31. (b) 32. (a) 33. (c) 34. (b) 35. (b) 36. (c) 37. (b) 38. (c).

Administration :


c) True c) Partly True d) False d) None of the above.


c) President c) Members d) Minister d) Public


c) Members c) President d) Director concerned d) Concerned ministry




30. When an organization needs to share important information with members of general public

such as change of name it drafts :

c) Representation c) Invitations d) Public notes d) Individual invitation.


c) Informal c) Urgent d) Formal d) Personal


c) Fax-messages c) Public notice d) Telex messages d) Representation.


c) Fax c) Invitations d) Telegram d) E-mails.


c) Telegram c) Fax d) E-mail d) All above.


c) Fax c) Both a) & b) d) E-mail d) None.


c) True c) True, at the time of emergency d) False d) True, for the informal occasions.

Answers :

27. (b) 28. (c) 29. (d) 30. (b) 31. (b) 32. (b) 33. (b) 34. (d) 35. (c) 36. (b)



c) Memo c) Office note d) Office Order d) None of the above.


c) Advertisement c) Office Note d) Officer Order d) Office Circular


e) Office Notes




f) Representation to Management,

g) Correspondence with Regional Office, h) Office Orders.


c) Memos c) Office order d) Office Notes d) None of these.


c) Three c) Five d) Four d) Two


c) Individual Preference c) Suggestions for transfers d) Special holidays d) Both a) & b).


c) Office notes c) Office orders d) Office circulars d) None of the above.


e) Management could accept respect f) May give an oral reply g) Could issue an office order



e) To cause faster or greater activity f) Respectful request g) Capable of being Perceived h) To Scatter or spread widely.


c) Bipartive c) Probation d) Meritorious d) Inter office.

Answers :

13. (a) 14. (a) 15 (c) 16. (a) 17. (d) 18. (a) 19. (c) 20. (d) 21. (d).



c) Press report c) Both a) and b) d) Press release d) None of above.





c) 2 c) 5 d) 3 d) 6


e) Government f) International agencies g) Organization working in specific fields. h) All of above.


c) Profit c) Goodwill d) Turnover d) Both a) and c).


c) Press report c) Both a) & b)

d) Press release d) None of above.

18. Means of PRO is ______________

c) Press Release Organization c) Press Report Organization. d) Public Relations Officer d) None of above.


c) Public information c) Companies information d) Disseminate information d) Both a) & b).


e) Share all its thoughts with Public f) Share Some important information with public g) Share some of its problem with Public h) All of above.


c) Polite & Soft c) Attitude & information d) Confidence & attitude d) All of above.


c) R & D Break though c) New service

d) Study finding d) All of above.

Answers :

13. (b) 14. (d) 15. (d) 16. (c) 17. (a) 18. (b) 19. (b) 20. (b).




E-Correspondence :


c) Post office plan c) Point office protocol d) Point office pratocal d) Point office plan.


c) 1946 c) 1966 d) 1956 d) 1976.


c) Sending e-mail c) E-commerce d) Tele conferencing d) All of the above.


c) Internet c) E-Correspondence d) E-mail d) None of the above.


c) 1965 c) 1976 d) 1974 d) 1968


c) Full Time Protocol c) Fun Time Program d) File Transfer Program d) file Transfer Protocol


c) Spam c) Attachments d) Interface d) None of the above.


c) Managing E-mail is easy c) E-mail is inexpensive d) E-mail is fast d) Security.


e) Internet Communication f) Send private messages g) Used as a corporate culture – change platform. h) All of the above.


c) Hyper Text Mail Language c) Hyper Text Markup Language d) Hyper Transfer markup language d) High Time Markup Language.




Answers :

19. (c) 20. (d) 21. (d) 22. (a) 23. (a) 24. (d) 25. (c) 26. (d) 27. (d) 28. (c)

MANAGEMENT Important Definitions

The Word “Management” derives its origin from a Greek word “nomos” which means management.

French industrialist and popularly known as the founder management theory. - Henry Fayol.

Coined the word POSDCORB - Luther Guilick

Coordination amongst one of the element of the management.

Henry Fayol

Contributed to great extent in the theories of management Taylor & Fayol

Father of Scientific Management Frederick Taylor

Father of Modern Management theory Henry Fayol

The Hawthrone experiments (1928-32) conducted by Elton Mayo

Assign three job of management Drucker

Managerial skills are classified as technical, human and conceptual.

Katz.

A leader can be a manager, but a manager is not necessarily a leader says. Gemmy Allen (1998)

The process of getting things done by the people and through the people. Hick.

Getting things done through and with people. Koontz and O’Donnell

To manage is to forecast, and to plan, to organize to command to coordinate and to command. Henry Fayol.

Management is the function of getting things done through people and directing the efforts of individuals towards a common objective.

Haimann

Planning is a trap to capture a future Koontz & O’Donnell

Made a contribution to planning definition. Jeorge R. Terry.

Organization structure is an indispensable means; and the wrong structure will seriously impair business performance and even destroy it. Peter Drucker

Informal organization is an aggregate of relationships without any conscious purpose but

which may contribute to joint results. Chester Bernard.

Organization as a means to the end of business performance and results. Peter F. Drucker

Hierarchy of needs theory of motivation was developed by. Maslow.




Theory X & Y of motivation way developed by Douglas Mc Gregor.

Decentralization is the systematic effort to delegate to the lower levels all authority except that which can be exercised at central point. – Allen

The right to give orders and exact obedience - Fayol

Provided a sound theoretical Framework to analyse the process of organizational growth.

Larry E. Greiner.

Recruitment is the process of searching the candidates (or employment and simulating then to apply for jobs in the organization. Edwin B. Flippo

Performance appraisal includes all formal procedures used to evaluate personalities and contributions and potential of group members in a working organization. Dale Yoder

Effective direction depends upon the harmony of objectives. Taylor

Unity of command cannot exist without unity of direction, but does not flow from it. Fayol

Supervision is guiding and directing efforts of employees and other resources to accomplish stated work outputs. George R. Terry and Stephen G. Franklin.

A transaction is the unit of social intercourse. Dr. Eric Berne.

Personnel management is the planning, organizing, directing and controlling of the procurement, development, resources to the end that individual and societal objectives are accomplished. Edwin B. Flippo

A psychologist, developed a theory of motivation based on human needs arranged in a particular order from the lower to the higher. Maslow.

Motivation – Hygiene theory Herzberg’s

Leadership is the activity of influencing people to strive willingly for group objectives. George R. Terry.

Leadership is influencing people to follow in the achievement of a specialized goal Koontz and O’Donnell

Budget correlate planning and allow authority to be delegated without loss of control.

Koontz and O’Donnell

Zero base budgeting is a new approach to budgeting which was first introduced by Peter Pyhrr 1970 US

Successful change in organization 3 steps Kurl Lewin

The world hates change, yet that is the only thing that has brought progress.

Charles Kettering

Popularly known as the Founder of modern management theory. Henry Fayol.

Personnel Management is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization. French Wendell.




Practice Questions

1. What does intra personal communication mean : a) Communication with ourselves c) Both a) & b) b) Communication with other d) None of above.

2. What does interpersonal communication mean : a) Communication with our selves c) Both a) & b) b) Communication with other d) None of the above. 3. “The language of a politician obscures the truth. The language of an artist reveals it.” Who

spoke these words ? a) Salman Rushdie c) Charles Darwin b) John Keats d) JM Keynes 4. “English has become the global language of business and finance.” Who spoke this line ? a) John Keats c) Nayantara Sehgal

b) Salman Rushdie d) JM Keynes. 5. “College teach one thing that is perhaps most valuable for the future employees to know.

This one basic skill is to organize and express ideas in writing and speaking.” Who spoke these words?

a) Nayantara Sehgal c) John Keats b) Peter Drucker d) Salman Rushdie. 6. Which of the following feature is not a communication ?




a) Continous c) No flow of Message

b) Goal Oriented d) Inter-disciplinary Science. 7. Study of Body language is known as : a) Anthropology c) Sociology b) Psychology d) Political Science 8. Study of persuasion, perception and attitude. a) Anthropology c) Sociology b) Psychology d) Political Science. 9. Study of voting behaviour is known as : a) Sociology c) Anthropology b) Political Science d) Both a) & b). 10. Which of the following is not an importance of communication : a) Human Relation c) Personal Asset b) Inter-disciplinary d) Public Relation. 11. Which of the following is not a German Abbreviation : a) S.d. c) P.S. b) WWE d) N.N. 12. Which of the following is not a Latin Abbreviation : a) vs. c) Bez

b) a.v. d) i.a. 13. Which of the following is not a French Abbreviation : a) Lit. c) U.S. b) Orig. d) N.B. 14. Which is not a proverb : a) Sweet are the uses of adversity b) To scatter to the winds c) A rose would smell as sweet by any other name. d) A closed mouth catches no flies. 15. What does the idiom mean “To scatter to the winds” a) To waste c) To prejudice another person b) Prove of something d) To deteriorate badly. 16. Which word explains the following sentence “To search thoroughly : a) Vandal c) Ransack b) Genocide d) Amnesty. 17. Which word explains the following group of words “Coming at the right time” a) Opportune c) Quisling b) Benefactor d) Panacea.

18. Find out the antonym of the word “Meager” : a) Empty c) Both a) or b). b) Plentiful d) None of the above. 19. A ________________ sentence contains only one finite verb and can make only one

complete statement. a) Simplex c) Complex b) Compound d) None of the above. 20. To transform into a purer or idealized form means : a) Sublimate c) Vandal b) Ransack d) Revive. 21. A job application is similar to : a) Sales letter c) Letter of order




b) Purchase letter d) None of the above.

22. A sales letter drafted for a large number of people is known as : a) Sales Order c) Sales manual b) Sales Circular d) Sales Enquiry. 23. Which of the following is applicable in case of Telegram : a) The message must be detailed. b) Normal grammer and punctuation must always be followed c) Time should be written according to twenty four hour clock. d) Block letter must not be used. 24. Office orders have a format similar to that of : a) Press Release c) Advertisement b) Representation d) Memorandum. 25. Which of the following is not a form of intra-organisational communication : a) Representation c) Press release b) Memorandum d) Office Notes. 26. Difference between a sales letter and sales circular is : a) Subtitle c) Introduction b) Salutation d) Conclusion. 27. Which of the following features specifically does not relate to advertisement :

a) Inviting tender c) Placing an order b) Hike in prices d) Recruitment of personnel. 28. Which of the following is not the heading of a classified ? a) Business offer c) Situation wanted. b) Situation vacant d) Situation sale. 29. What does OEM stands for : a) Outstated Equipment Manufactures b) Original Equipment Manufactures, c) Ordinary Equipment Manufactures d) None of the above. 30. Which type of letter is not goodwill letter : a) Thank you letter c) Letter of complaint b) Condolence letter d) Letter of sympathy 31. _________________ only mentions the quantity and type of good : a) Invoice c) Delivery Challan b) Performa Invoice d) None of the above. 32. A note sent by a seller to buyer to rectify an undercharge in the original invoice : a) Credit note c) Warrant

b) Debit Note d) None of the above. 33. Which of the following is not a banking service : a) Policy Renewal c) Term loan b) Overdraft limit d) Status Enquiries. 34. ___________________ request is to be made to depository participants with whom the

shareholder has a Demat Account in the prescribed standard. a) De-materialisation c) De-regulating b) Re-materialisation d) Regulating. 35. Which of the following is not a guideline for writing minute : a) Record full text of motions b) Ensure that each item discussed in the meeting has been recorded c) Use separate paragraph for each item.




d) Re-organisation of work.

36. A commercial transaction is a _________________ process : a) Simple c) Complex b) Chain d) None of the above. 37. A program listing items of business to be transacted in a meeting : a) Warrant c) Agenda b) Minutes d) None of the above. 38. Which of the following is a type of insurance correspondence letter ? a) Reporting loss c) Both a) and b) b) Overdraft limit d) C Form. 39. The first collection letter should be written in ______________ manner : a) Firm c) Strict b) Polite d) None of the above. 40. The _____________________ is calculated in percentage term say 2 paise per hundred

rupees for fire insurance. a) Restricted loss c) Maturity value b) Sum Assured d) Premium. 41. _____________ are made in order to voice a grievance and to secure a relief : a) Representation c) Invitation

b) Notice d) None of these. 42. Full form of RSVP : a) Respondey s’ll via plait c) Respondey s’al via plait b) Respondey s’ll vous plait d) Respondey. 43. Meaning of RSVP is : a) Please pay c) Both a) & b). b) Please send d) Please reply. 44. ________________ Messages does not require salutations and complimentary close : a) Fax c) Both a) & b) c) Telex d) None of the above. 45. Full form of fax : a) Facsimile c) Fasimile b) Factsimile d) None of the above. 46. Email packages like ____________________ and __________________ are part of web

browser. a) Internet Explorer and Messenge b) Out look express and Mozilla firefox c) Messenger and Outlook express

d) Internet Explorer and Mozilla firefox. 47. ________________ paper tends to disappear after some time. a) Plan c) Hand made b) Thermal d) None of the above. 48. What is the full form of SMS ? a) Short Multimedia service c) Small Multimedia service b) Short Messaging Service d) Small Messaging service. 49. What points should be avoided while writing a Telegram : a) Use of lower case c) Good use of Grammer b) Use of AM and PM, d) Both a) & b). 50. Which program is buffered by specialist while writing email : a) Messenger c) Eudora




b) Out look express d) All of the above.

51. Plural Form of memorandum : a) Memorand c) both a) & b). b) Memoranda d) None of the above. 52. Full form of ESOP : a) Employee Sale Option Plan c) Employee Stock Option Plan b) Employee Stock Option Proceder d) None of the above. 53. Memos may relate to : a) Show Cause Notice c) Both a) & b) b) Charge – sheet d) None of the above. 54. _____________ is a note or record for future use : a) Office circulars c) Memo b) Office Orders d) Memorandum. 55. What does Office Order do not include : a) Order No. c) Date b) Subject d) Under Signed. 56. What does a circular do not include : a) Circular No. c) Date b) CC: d) Under Signed.

57. ______________________ is used for disseminating information to a large number of employees :

a) Office Circulars c) Office Notice b) Office Order d) None of the above. 58. ___________________ are preferred when one needs to convey information in writing : a) Office Order c) Office Note. b) Office Circular d) Memorandum. 59. _______________ is devoid of solution : a) Office Order c) Office Note b) Memo Report d) Office Circular. 60. ________________ carry a bold, underlined heading to help us identify them : a) Office Note c) Office Circulars b) Office Orders d) Memo Report. 61. A press release should have following features in order to be selected : a) Detailed c) Lengthy b) Factual d) Unsuitable. 62. _______________ is drafted by professional journalist : a) Press Release c) Press report

b) Advertisement d)None of the above. 63. ______________ should always be printed on letter head of the organization : a) Press Report c) Advertisement b) Press Release d) All the above. 64. _____________ are the most harassed community and have to work under considerable

pressures till take hours to meet the deadlines : a) Editor c) Journalist b) Managing Director d) None of the above. 65. Which of the following is not essential for a good press release : a) Unsuitable c) Interesting b) Factual d) Brief. 66. PRESS RELEASE should not have following qualities :




a) News value c) Unsuitable

b) Display d) Brevity 67. _____________ is based on the contents of Press Release : a) Report c) Office Note b) Memo d) Press Report. 68. Press release should be signed by an authorized person : a) True c) Partly True b) False d) Partly False. 69. ______________ removes the unnecessary information from press release : a) Central Bureau of investigation c) Chief of bureaus b) Chief Manager d) Managing Director. 70. What is the alternative to press release ? a) Press report c) Paid Advertisement b) Sample Distribution d) None of these. 71. “The letter written by one party to another, and the answers there to, make what is called

the correspondence of parties such correspondence if done through electronic signals via internet is called ___________”.

72. Full form of HTTP a) Hyper text transfer protocol c) Hyper text transfer plan

b) Hyper transfer text plan d) None of the above. 73. _____________ is a networking infrastructure : a) Internet c) Extranet b) Intranet d) E-mail. 74. What is the other name for e-correspondence ? a) E-mail – Correspondence c) Both a) and b) b) Electronic – correspondence d) None of the above. 75. Full form of URL is : a) Uniform Reachable Locator c) Uniform Research Locator b) Uniform Resource Locator d) Uniform Readable Locator. 76. First e-mail system was known as : a) MALE BOX c) MAIL BOX b) EMAIL BOX d) None of the above. 77. When was FTP (File Transfer Protocol) put in use : a) 1952 c) 1972 b) 1962 d) 1982. 78. Which protocol is used to receive mail : a) SMTP c) HTTP

b) POP d) FTP. 79. Which of the following is not the feature of E-mail : a) Spam c) Signature b) Search d) Settlement. 80. Which is not a E-mail etiquette : a) Be concise c) Be Professional b) Be Realistic d) Watch ur tone.




Business Management

1. The Economic environment consists of 3 basic entities :-

a) Households (consumers), firms (producers), and manufacturer. b) Producer (firms), Retailer and Consumer. c) Households (consumers), firms (producers) and Government (co-ordinator) d) None of the above.

2. Management is originated from the greek word : a) Kiyo c) Oikeu b) Nomos d) None of the above.

3. _______________ defined management as the process of getting’s things done by and through the people : a) Hich c) Henry Fayol b) Koontz and O’Donnell, d) Haimann

4. The combination of human, material and financial resources should result in : a) Reduction of cost c) Greater production b) Increase in revenue d) None of the above.

5. The efficiency of factors of production can be increased by : a) Optimum utilization of resources c) Good working conditions b) Inexact and inter disciplinary d) None of the above.

6. Management is a _______ and _______ science.

a) Exact & disciplinary c) Exact and social




b) Inexact and inter disciplinary d) None of the above.

7. Management is an art because it involves __________ and ___________. a) Experience and intelligence c) Skills and knowledge b) Creativity and personalization d) None of the above.

8. Management as a profession satisfies all the tests. True or false ? a) True c) False b) Partly True / Partly False d) None of the above.

9. Which approach involves making generalizations from case study to establish theories as a useful guide ? a) Group Behaviour Approach c) Emperical Approach b) Decision Theory Approach d) Operational Approach.

10. Inter personal behaviour approach also known as : a) Behavioural science, leadership or human relations approach. b) Behavioural science and decision making approach c) Leadership group behaviour approach. d) None of the above.

11. ______________ is the core of management according to decision theory approach. a) Leadership c) Motivation b) Decision making d) Planning.

12. Mathematical approach is closely related to : a) Emperical approach c) Operational approach b) Inter personal behaviour d) Decision theory approach.

13. _____________ approach does not recognize that the problems faced by managers vary with nature and size of enterprise. a) Operational c) Decision theory b) Group Behaviour d) Mathematical approach.

14. __________, a French industrialist is known as ‘founder of modern management theory’. a) Luther Guiich c) Newmann & summer b) Henry fayol d) None of the alove.

15. Which word did Luther Guiick coin using initial letters of management. a) POSBRD c) POSDCORB b) POSDBRD d) None of the above.

16. True or false : Success on part of executives essentially calls for capability to promote self appraisal. a) True c) Partly True b) False d) None to these.

17. ____________ is a preparatory step and bridges the gap between present and future.

a) Organising c) Directing b) Staffing d) Planning.

18. _________ and ___________ are fundamental aspects of organization : a) Davison of work and co-ordination of their efforts b) Delegation of authority & determination of activities c) Determination & classification of activities. d) Delegation of authority & co-ordination of activities.

19. ____________ function calls for properly motivating, communicating, leading & supervising the subordinates. a) Staffing c) Orginasing b) Direction d) Controlling.

20. True or false : If co-operation exists, co-ordination with automatically follow :





b) False d) Partly False. 21. Co-ordination is achieved through understanding of _________ relationships.

a) Interpersonal, (horizontal) c) Hierarical b) Vertical d) None of the above.

22. _______________ is the father of ‘scientific management’. a) Henry Fayol c) Luther Guiich b) Frederich Taylor d) Nowmann & Summer.

23. ‘Task and Bonus Plan’ was devised by :- a) Taylor c) Newmann & Summer b) Fayol d) None of the above.

24. Authority and responsibility are __________. a) Co-extensive c) Complimentary to each other b) Mutually exclusive d) None of the above.

25. Management is affected by and in turn affects the system in which it operates. Thus, it is a ________ system. a) Closed c) Neither closed nor open b) Open d) Notice of the above.

26. Enterpreneur’s, role of a disturbance handler, allocator of resources & negotiator’s role are

the ___________ roles that the manager has to perform. 27. Functions of administration are ____________ & _____________.

a) Executive & Governing c) Legislative & determinative. b) Policy making & implementation d) Sustisating & controlling.

28. Managerial skills are classified as ____________ & _____________ by katz. a) Technical, human & conceptual. b) Communication, administrative & leadership. c) Conceptual, technical & leadership. d) Administrative, decision making & communication.

Answers :

1.(c) 2. (b) 3. (a) 4. (a) 5. (a) 6. (b) 7. (b) 8. (c) 9. (c) 10. (a) 11. (b) 12. (d)

13. (a) 14. (b) 15. (c) 16. (b) 17. (d) 18. (a) 19. (c) 20. (b) 21. (a) 22. (b) 23. (b) 24. (a)

25. (b) 26. (b) 17. (c) 28. (a).

1. ____________ is deciding in advance the course of action to be followed. a) Organising b) Controlling. b) Direction d) Planning.

2. ____________ represents the end point of planning : a) Goals c) Objectives b) Strategies d) None of the above.

3. ________________ have changes in perception & branding as their primary goal. a) Marketing Plans c) Strategic Plans b) Operational Plans d) Business Plans.

4. Strategic plans target _____________ but provide a brief guidance on how to achieve them. a) External goals c) Organisational objectives b) Internal goals d) None of the above.




5. __________ reflects belief and philosophy of management.

a) Objectives c) Goals b) Purposes / Mission d) Rules.

6. Which qualities should a person possess while planning ? a) Reflective thinking c) Far sightedness. b) Imagination d) All of the above.

7. Only economists & technicians employed by the management as staff experts are involved in making forecasts. a) True c) Partly True b) False d) Partly False.

8. Policies must be rigid and should not allow discretion on the part of subordinates. a) True c) Partly True b) False d) Partly False.

9. ____________ specifies the manner of doing work, i.e. sequence for handling future activities. a) Rules c) Procedures b) Method d) Programme.

10. Which amongst the following is rigid and specific & cannot be changed ? a) Methods c) Policies

b) Procedures d) Rules. 11. __________ is supported by capital revenue & expense budgets :

a) Programme c) Goals b) Strategy d) Policies.

12. Methods of evaluation of various alternatives are : a) Basis of cost effectiveness b) Marginal analysis c) Risk involved and resources available. d) All of the above.

13. Second step of planning process is the establishment of : a) Planning premises c) Goals to be achieved b) Objectives d) All of the above.

14. Planning Premises can be ________________. a) Internal c) Tangible b) External d) All of the above.

15. Principle of Navigational change applies to ___________ in planning process. a) Flexibility c) Logic failure b) Certainty d) All of the above.

16. Quality of forecasts depends upon : a) Experience c) Participation of management b) Clair voyance d) All of the above.

17. The possible condition for decision making would be : a) Certainty c) Uncertainty b) Risk d) All of the above.

18. While planning for expansion _____________ might be the limiting factor. a) Availability of finance c) Both a) & b). b) Availability of trained staff. d) None of the above.

19. Certainty, risk and uncertainty are the three possible conditions of : a) Decision making c) Risk management. b) Planning. d) None of these.




Answers :

1.(d) 2. (c) 3. (a) 4. (b) 5. (b) 6. (d) 7. (b) 8. (b) 9. (c) 10. (d) 11. (a) 12. (d)

13. (a) 14. (d) 15. (a) 16. (d) 17. (d) 18. (c) 19. (a).

1. When one team member influences the other team members for greater performance than what it was before such motivation, this effect is called ______. a) Growth c) Synergy effect b) Enrichment. d) Adaptation.

2. _____________ structure is the oldest pattern of organization. a) Line structure c) Matrix structure b) Functional organization d) Line and staff organization.

3. _______________ structure is also called military /scalar type of organization. a) Functional organization.

b) Matrix organization. c) Project management organization. d) Line organization.

4. Line organization is flexible and changeable. a) True c) Partly True / Partly False b) False d) None of the above.

5. Under which system the whole task of management and direction of subordinates is divided according to the type of work involved. a) Line organization c) Line and staff b) Functional organization d) Matrix organization.

6. Functional organization is characterized by total absence of staff specialist. a) True c) False b) Partly True /Partly False d) None of the above.

7. Under ______________ organization there is a clear demarcation between thinking and doing. a) Line and staff organization c) Matix organization b) Functional organization d) Project management organization.

8. ______________ develops spontaneously and is not established by formal managers.

a) Formal organization c) Informal organization b) Authority d) Power.

9. A manager is an organization is judged by the work he performs on his own. Hence delegation is not essential for him. a) False c) Partly True/Partly False b) True d) None of the above.

10. _______________ is described as the right of a manager to command subordinates, issue them orders and instructions. a) Responsibility c) Delegation b) Accountability d) Authority.

11. Authority flows downwards and _________ flows upwards. a) Control c) Accountability b) Responsibility d) None of the above.

12. Authority can be delegated whereas responsibility cannot be delegated. a) True c) Partly True Partly False




b) False d) None of the above.

13. _______________ will be more effective when subordinates receives orders and instructions directly from one senior only. a) Delegation c) Accountability b) Controlling d) Planning

14. ____________________ is not compulsory to the process of organization. a) Planning, c) Decentralization b) Controlling d) Delegation.

15. In Decentralization, management exercises maximum control. a) False c) Partly True/Partly False b) True d) None of the above.

16. Decentralization is a step towards creation of ____________ units. a) Complete c) Semi-autonomous b) Autonomous d) None of the above.

17. In delegation control rests with the _____________. a) Concerned department, c) Subordinate b) Delegator/supervisor d) None of the above.

18. Space of matrix organization, the manufacturing department constitutes the horizontal chain of command.

a) True c) Partly True / Partly False b) False d) None of the above.

19. _____________ helps to eliminate overlapping or duplicate activities and thus effects cost savings. a) Delegation c) Informal organization b) Decentralization d) Centralization.

20. Functional organization is difficult to establish because of high degree of control. a) True c) Partly True/Partly False b) False d) None of the above.

Answers :

1.(c) 2. (a) 3. (d) 4. (b) 5. (b) 6. (c) 7. (a) 8. (c) 9. (a) 10. (d) 11. (b) 12. (a)

13. (a) 14. (c) 15. (a) 16. (c) 17. (b) 18. (b) 19. (d) 20. (a).

1. Human Resource Management is administrative in nature and focused on the operational activities. a) True c) Partly True Partly False b) False d) None of the above.

2. Human Resource Management provides foot-proof results and every activity can be

planned according to it ? a) True b) Partly True Partly False b) False d) None of the above .

3. The HR Manager plays an effective role in decision making on issues relating to _____________. a) Management c) Government b) Human Resource d) None of the above.

4. _____________ and _____________ help in employing the right person for the right job. a) Training and Development c) Compensation and Recruitment,




b) Motivation and Training d) Recruitment and Selection.

5. Transfer and Promotion are the two internal sources of recruitment. a) True c) Partly True Partly False b) False d) None of the above,

6. In which of the above methods choice of candidates is limited ? a) External source of recruitment c) Selection b) Internal sources d) Open advertisements.

7. Which of these is a negative process ? a) Recruitment c) Training b) Selection d) Development.

8. The selection programme begins with ________________. a) Receiving applications, c) Employment Tests b) Preliminary Interview. d) Employment Interview.

9. Training prevents ___________________. a) Group cohesiveness, c) Managerial obsolescence. b) Job satisfaction, d) Long term survival.

10. Performance Appraisal means systematic evaluation of _________ of each employee by a person trained for merit rating. a) Personality / Performance, c) Mental health/vigour

b) Intelligence d) Participation. 11. Performance Appraisal is a totally reliable methods and always provides good results.

a) True c) Partly True Partly False b) False d) None of the above.

12. Ranking Method can only be applied when the number of employees is _______. a) Large c) Small b) Moderate d) Very large.

13. ___________ and ___________ are the traditional methods for appraisal. a) Field review method and management by objectives. b) BARS and graphic rating scales. c) Critical incident method and BARS, d) Ranking Method and Checklist.

14. _____________ suggested the method of goal setting, approach for performance appraisal which is called “Management by Objective”. a) Peter Drucker c) Newmann and Summer b) Douglas Mc. Greger d) Henry Fayol.

15. Essential feature of “Management By Objective” is ____________. a) Self appraisal c) Behaviour of the subordinates

b) Mutual establishment of job goals. d) None of the above. 16. Under BARS the supervisor is in a position to compare the employee’s actual behaviour with

the behaviour that has been previously determined to be more or less effective.. a) True c) Partly True Partly False b) False d) None of the above.

Answers :

1.(b) 2. (b) 3. (b) 4. ( ) 5. (a) 6. (b) 7. (b) 8. (b) 9. (c) 10. (a) 11. (b)

12. (c) 13. (d) 14. (a) 15. (b) 16. (a).




1. ___________ is a function of management which involves communicating and providing

leadership to the subordinates. a) Direction c) Controlling, b) Co-ordination d) Commending.

2. _______________ said that effective direction depends upon the “harmony of objectives”. a) Fayol c) Taylor b) Mooney d) Larry and Greiner.

3. Three types of skills required by the supervisor are technical, human and __________. a) Experience c) Scientific b) Conceptual d) Productive.

4. General supervision has a favourable impact on the __________ of the subordinates. 5. ___________________ is defined as the degree of attraction that each member has for the

group. a) Motivation c) Co-ordination b) Performance Appraisal d) Group cohesiveness.

6. ________________ is the method for examining social inter-course of different employees. a) Transactional analysis c) Crossed transaction. b) Psychological motivation d) None of the above.

7. Transactional analysis is useful in sales and other areas where success depends on customer

relations. a) True c) Partly True b) False d) None of the above.

8. Which theory assumes that people feet highly motivated when they are rewarded with more money. a) Equity Theory c) Monistic/Economic Theory. b) Herzberg Theory d) Hierarchy of Needs Theory.

9. ____________ suggested the “hierarchy of needs” theory. a) Fayol c) Taylor b) Maslow d) George R. Terry.

10. The approach towards directing the subordinates will depend upon the situation only. a) True c) Partly True. b) False d) None of these.

11. Which theory is also called the two factor theory ? a) Herzberg Theory c) Monistic Theory b) Equity Theory d) Theory of Douglas Mc. Gregor.

12. The fundamental assumption of ____________ theory is that full advantage of employee potential can be taken by motivating them to accept organizational objectives.

a) Theory X c) Monistic theory b) Equity theory d) Theory Y.

13. Which theory says that a man is inherently resistant to change4 and passive to organizational needs. a) Mc. Gregor Theory Y c) Equity Theory b) Mc. Gregor Theory X d) Herzberg Theory.

14. ____________ gave the two factor theory. a) Frederick Herzberg c) Taylor b) Douglas Mc. Gregor d) Fayol.

15. Context factors are also known as _______________ factors a) Intrinsic c) Hygienic / extrinsic factors b) Indifferent factors d) None of the above.




16. Transaction Analysis can give the employees fresh insights into their own personalities.

a) True c) Party True b) False d) None of the above.

17. _____________ said “leadership is the activity of influencing people to strive willingly for group objectives”. a) Koontz & O’Donnel c) Taylor b) Henry Fayol d) George R. Terry.

18. Which theory fails to pinpoint the intensity and extent to which each of the agreed traits should be present in an individual. a) Style Theory c) Traits Theory b) Blake and Mouton d) None of the above.

19. _________________ approach has selective application. Under this leader depends upon the members to establish their own goals. a) Autocratic style c) Democratic style b) Laissez fair style d) None of the above.

20. Which theory divides the leadership style in a managerial grid in which different style of leadership are located in four guadrants. a) Lewin, Lippit and white c) University of Michigan b) Ohio State University d) Blake and Mouton.

21. While decording the message the sender determines the method of transmission. a) True c) Partly True b) False d) None of the above.

22. The path and behaviour of grapevine is unpredictable. a) True c) Partly True Partly False b) False d) None of the above.

23. ________________ communication is also called diagonal communication. a) Formal c) Cross-wise b) Informal d) Horizontal.

24. ______________ network of communication is also useful for disseminating information in the general interest of the organization. a) Formal c) Vertical b) Informal d) Horizontal

25. Goals are similar to needs but implies that the object is social not merely physiological. a) False c) Partly True. b) True d) None of the above.

26. Formal channels of communication are referred as “communication through the chain of command”.

a) True c) Partly True b) False d) None of the above.

27. A confession of mistake may lead to material gains in terms of promotion and pay increase. a) True c) Partly True b) False d) None of the above.

28. Four kinds of Management systems as leadership styles way given by : a) Black and Moulen c) MC. Gregor b) Renris Likert d) Hertz Berg.

Answers :

1.(a) 2. (c) 3. (b) 4. (b) 5. (d) 6. (a) 7. (a) 8. (c) 9. (b) 10. (b) 11. (a) 12. (d)




13. (b) 14. (a) 15. (c) 16. (a) 17. (d) 18. (c) 19. (b) 20. (d) 21. (b) 22. (a) 23. (c)

24. (b) 25. (a) 26. (a) 17. (b) 28. (b).

1. A manager can control the past as well as take action for future. a) True c) Partly true, partly false b) False d) None of the above.

2. Which function involves constant revision and analysis of standards resulting from deviations ? a) Controlling c) Organizing b) Directing d) Planning.

3. Control presupposes the existence of _______ and _______ a) Policies and Procedures c) Goals and Plans b) Objectives and Policies d) Planning.

4. Control is a ___________ function to ensure and maintain co-ordination throughout the organization. a) Wider c) One-step b) Vital d) Continuous.

5. _________ and __________ are two important phases under corrective action. a) Operation and administrative.

b) Establishing goals and standards, c) Measurement of performance and their comparison, d) Measurement of performance and follow through.

6. Ideal control is self-correcting and forward looking. a) True c) Partly true partly false b) False d) None of the above.

7. The traditional control techniques are : a) Budgetary Control and CPM b) PERT and CPM c) Zero base Budgeting and Management Audit. d) Budgetary Control and Standard Costing.

8. _________ provides the yardstick for measurement of performance essential for effective control. a) Standard Costing c) Budgetary Control b) Internal Audit d) None of the above.

9. Efficient control system discriminates between important and unimportant activities control. a) True c) Partly true partly false, b) False d) None of the above.

10. Traditional control focuses on scientific methods whereas non-traditional control are based more on non scientific methods. a) True c) Partly true partly false b) False d) None of the above.

11. Through analysis of ________ provide a sound basis for research and development. a) Budgeted goals c) Production costs. b) Key factors d) Plans.

12. ___________ provides basis for collective actions to be taken to improve future performance. a) Internal Audit c) Break Even Analysis. b) Standard Costing d) Statistical Control.




13. Zero base budgeting can be used more meaningfully in those areas where a direct

relationship exists between the expenditure on an activity and its benefits to the enterprise. a) True c) Partly true partly false b) False d) None of the above.

14. Under ___________ method project is broken down into different activities. a) Critical Path Method, b) Project evaluation and review technique, c) Zero Base Budgeting, d) Management Audit.

15. ____________ provides framework for treating a wide range of project management problems. a) Critical Path Method, b) Zero Base Budgeting, c) Project evaluation and review technique, d) None of the above.

16. _________ and __________ and called the siamese twins of management. a) Planning and Organizing, c) Directing and Controlling, b) Co-ordination and Co-operation, d) Planning and Controlling.

Answers :

1.(b) 2. (a) 3. (c) 4. (d) 5. (a) 6. (a) 7. (d) 8. (c) 9. (a) 10. (b) 11. (b) 12. (c)

13. (a) 14. (a) 15. (c) 16. (d).

1. Change is resisted when people in the course of doing or learning a new system experience failure. a) True c) Partly true partly false b) False d) None of the above.

2. The three types of resistance to change are-logical, psychological and _______ a) Geographical c) Temporary b) Sociological d) None of the above.

3. Changes should be introduced in _______________. a) Totally c) Impactful way b) Minimised way d) Stages.

4. ____________ argued that successful change should follow three steps. a) Kurt Lewin c) Sensitivity b) Logical d) None of the above.

5. _____________ argued that successful change should follow three steps. a) Kurt Lewin c) Fayol

b) Taylor d) George. R terry. 6. _____________ management is the process by which an organization deals with a major

event that threatens to harm the organization, its stakeholders or the general public. a) Risk management c) Total quality management b) Crisis management, d) None of the above.

7. _______________ is one which involves assessing potential threats and finding ways to avoid those threats. a) Crisis management c) Administrative management b) Total quality management d) Risk management.




8. ______________ crisis are caused by human application of science and technology.

a) Confrontation c) Technological b) Organization misdeed d) Natural crisis.

9. One of the objectives of risk management is to minimize the use of resources. a) True c) Partly true Partly False b) False d) None of the above.

10. Risk management is about managing risk against the ___________. a) Reward c) Activity. b) Decision, d) Opportunities.

11. _____________ management identifies a new type of risk a risk which has 100%, probability of occurring but is ignored by the organization due to each of identification ability. a) Relationship risk c) Intangible risk b) Process engagement d) None of the above.

12. ______________ is an essential and integral step in the risk management process. a) Risk Treatment, c) Risk identification b) Risk assessment, d) Risk monitoring and review.

13. _______________ management is the practice of managing business operations in more than one country. a) Business c) Risk

b) International d) Crisis. 14. Middle management provides motivating climate for employees, directs them in proper

procedures and assists them in eliminating sources of error. a) True c) Partly true partly false b) False d) none of the above.

15. FQM is used to increase the overall customer satisfaction. a) True c) Partly true partly false b) False d) None of the above.

Answers :

1.(a) 2. (b) 3. (d) 4. (c) 5. (a) 6. (b) 7. (d) 8. (c) 9. (b) 10. (a) 11. (c)

12. (d) 13. (b) 14. (b) 15. (a).

ETHICS




1. The term ‘Business Ethics’ into common use in the year : a) 1950 c) 1970 b) 1960 d) 1980

2. The society of Business Ethics was started in : a) 1950 c) 1970 b) 1960 d) 1980.

3. When was EBEN commenced : a) 1952 c) 1982 b) 1962 d) 1992.

4. The idea of business ethics caught the attention of academics, media and business firms by the end of the : a) First World War c) Cold War b) Second World War d) None of the above.

5. The legitimate criticism of business practices was attacked for infunging the “____________” of entrepreneurs. a) Honesty c) Freedom b) Integrity d) Reputation.

6. The fields which settled the discourse of business ethics :

a) Media c) Academics b) Business firms d) Both a) and c).

7. Business Ethics has a _______________ application. a) Universal c) Practical b) Natural d) None of the above.

8. _______________ is not a natural science but a creation of human mind. a) Ethical Standard c) Ethics b) Business Ethics d) None of the above.

9. ____________ is a set of principle and expectations that are considered binding on any person who is the member of a particular group.




a) Code of ‘ethics’ c) Code of ‘practice’

b) Code of ‘conduct’ d) All of the above. 10. The alternative names for code of conduct are :

a) Code of ethics c) Both a) & b) b) Code of practice d) None of the above.

11. Corporate entitles are legally considered as persons in – a) USA c) China b) Japan d) None of the above.

12. Business ethics is based on well accepted :- a) Moral and social values c) Moral values only. b) Social values only d) None of the above.

13. Which of the following is not a ‘code of conduct’. a) Code of ethics c) Code of practices b) Code of Behaviour d) Code of Management.

14. Which of the following Act made code of ethics mandatory for all organizations. a) The Companies Act, 2013 c) The Partnership Act, 1932 b) The Sarbanes-Oxley Act, 2002 d) None of the above.

15. The Sarbanes Oxley Act of 2002 made it important for business to have an – a) Ethics Code c) Code of Practice

b) Code of Conduct d) Business ethics. 16. Sarbanes Oxeley Act of 2002 is named after which of the following experts.

a) Aristotle c) Michael Oxley b) Smator Paul Sarbanes d) Both a) and b).

17. Key Elements of Business Ethics are : a) A strong code of Ethics b) Ethics coach c) System for confidential Reporting. d) All of the above.

18. Which are not the key elements of Business Ethics : a) Investor loyalty c) Ethics coach b) Ethics Training d) Both b) & c).

19. What are not the features of Business Ethics : a) Relativity c) Practical application b) Far reaching concept d) Protection to consumer.

20. The Key features which a person should prevail while teaching Ethics to the employees are : a) Employing Ethical Concept c) Decision making b) Analytical Skills d) All of the above.

21. ____________ provides the legal, social, moral, economical and cultural limits within which business has to be conducted. a) Ethics c) Ethics code. b) Ethical Standards. d) Business Ethics.

22. Business Ethics is a ______________ norm. a) Pervasive c) Relative b) Continuous d) None of the above.

23. Which one of the following is not the advantage of Business Ethics. a) High turnover of staff c) Investor’s loyality b) Customer Satisfaction, d) Attracting and Retaining Talent.

24. What are the eithical issues faced by ‘Ethics in Finance’. a) Affirmative Action c) Insider Trading.




b) Executive compensation. d)) Both b) and c).

25. What are not the ethical issues faced by ‘Ethics in ‘finance’. a) Affirmative Action c) Overbilling of expense b) Occupational Safety and health d) both a) & b).

26. Which one of the features relates to ‘Ethics in Human Resource’ a) Insider Trading c) Discrimination Issues b) Price discrimination d) Black market, grey market.

27. Which one of the feature does not relate to ‘Ethics in Human Resource’. a) Sexual harassment, c) Affirmative Action b) Discrimination issue d) Product testing Ethics

28. Which one of the feature relates to ‘Ethics in Marketing’. a) Defective dangerous product c) Insider Trading b) Sexual harassment, d) Black market, grey market.

29. Which one of the features does not relate to ‘Ethics in Marketing. a) Black Market, grey market c) Price Skimming, b) Misleading Advertisement d) Carbon emission trading.

30. Which one of the features relate to ‘Ethics in Production’. a) Affirmative Action c) Inherently dangerous product b) Executive compensation. d) Price fixing.

31. Which one of the feature does not relate to ‘Ethics in Production’ a) Addictive dangerous product c) Environmental ethics, b) Product testing ethics, d) Whistle blowing.

32. What are the Reasons for unethical business practices. a) Greed for Quick money c) Cultural and Social Reason. b) Administrative Corruption. d) All of the above.

33. Administrative corruption include ‘gifts’ to the – a) Factory Inspector c) Pollution Control Board Inspector. b) Boiler Inspector, d) All of the above.

34. Measures to improve ethical behaviour of business are framed at which level : a) Societal level c) Institutional level b) Government level d) All of the above.

35. Compliance is about obeying and adhering to : a) Rules and Authority, c) Discipline, b) Law d) All of the above.

36. The term ethics is derived from ______________ word : a) French c) Greek. b) German d) Russian.

Answers :

1.(c) 2. (d) 3. (c) 4. (c) 5. (c) 6. (d) 7. (a) 8. (b) 9. (d) 10. (c) 11. (a) 12. (a)

13. (d) 14. (b) 15. (a) 16. (d) 17. (d) 18. (a) 19. (c) 20. (d) 21. (d) 22. (c) 23. (a)

24. (d) 25. (a) 26 (c) 27. (d) 28. (d) 29. (d) 30. (c) 31. (d) 32. (d) 33. (d) 34. (d)

35. (a) 36. (c).




Part B

Business Communication

1. What does intra personal communication mean : a) Communication with ourselves c) Both a) & b) b) Communication with other d) None of above.

2. What does interpersonal communication mean : a) Communication with our selves c) Both a) & b) b) Communication with other d) None of the above.

3. “The language of a politician obscures the truth. The language of an artist reveals it.” Who spoke these words ?

a) Salman Rushdie c) Charles Darwin b) John Keats d) JM Keynes

4. “English has become the global language of business and finance.” Who spoke this line ? a) John Keats c) Nayantara Sehgal b) Salman Rushdie d) JM Keynes.

5. “College teach one thing that is perhaps most valuable for the future employees to know. This one basic skill is to organize and express ideas in writing and speaking.” Who spoke these words?




a) Nayantara Sehgal c) John Keats

b) Peter Drucker d) Salman Rushdie. 6. Which of the following feature is not a communication ?

a) Continous c) No flow of Message b) Goal Oriented d) Inter-disciplinary Science.

7. Study of Body language is known as : a) Anthropology c) Sociology b) Psychology d) Political Science

8. Study of persuasion, perception and attitude. a) Anthropology c) Sociology b) Psychology d) Political Science.

9. Study of voting behaviour is known as : a) Sociology c) Anthropology b) Political Science d) Both a) & b).

10. Which of the following is not an importance of communication : a) Human Relation c) Personal Asset b) Inter-disciplinary d) Public Relation.

11. Which is not a type of verbal communication. a) Oral c) Visual

b) Written d) Gestures 12. Which is not a type of Non Verbal Communication.

a) Gestures c) Eye contacts b) Movements d) Visual.

13. Which of the feature belongs to choice of means and mode of communication. a) Nature of organization c) Distance Involved b) Variable Means d) None of these. 14. ______________ is necessary for the completion of communication process. a) Encoding c) Feedback b) Decoding d) None of the above. 15. Which of the following is not a part of seven ‘C’s of Effective communication. a) Clarity of expression c) Correctness of facts b) Conciseness in presentation d) Completeness of information. 16. Which mode of communication is internal communication. a) Verbal communication c) Both a) and b). b) Non verbal communication d) None of the above. 17. Which is not a communication flow : a) Upward c) Vertical

b) Horizontal d) Diagonal. 18. Which is a barrier to communication. a) True assumption c) Planned way b) Trust and confidence d) Ambiguity. 19. Communication is essentially a _________________ process. a) One way c) Four way b) Three way d) Two way.

20. Facial expression; gestures; Eye Contact; Nodding the head and physical appearance are the form of :

a) Verbal Communication c) Non Verbal Communication b) Oral Communication d) Visual Communication.




Answers :

1.(a) 2. (b) 3. (a) 4. (c) 5. (b) 6. (c) 7. (a) 8. (b) 9. (d) 10. (b) 11. (d) 12. (d) 13. (c) 14. (c) 15. (b) 16. (c) 17. (c) 18. (d) 19. (d) 20. (c).

1. Which of the following is not a German Abbreviation : a) S.d. c) P.S. b) WWE d) N.N. 2. Which of the following is not a Latin Abbreviation : a) vs. c) Bez b) a.v. d) i.a. 3. Which of the following is not a French Abbreviation : a) Lit. c) U.S. b) Orig. d) N.B. 4. Which is not a proverb : a) Sweet are the uses of adversity b) To scatter to the winds c) A rose would smell as sweet by any other name. d) A closed mouth catches no flies. 5. What does the idiom mean “To scatter to the winds”

a) To waste c) To prejudice another person b) Prove of something d) To deteriorate badly. 6. Which word explains the following sentence “To search thoroughly : a) Vandal c) Ransack b) Genocide d) Amnesty. 7. Which word explains the following group of words “Coming at the right time” a) Opportune c) Quisling b) Benefactor d) Panacea. 8. Find out the antonym of the word “Meager” : a) Empty c) Both a) or b). b) Plentiful d) None of the above. 9. A ________________ sentence contains only one finite verb and can make only one

complete statement. a) Simplex c) Complex b) Compound d) None of the above. 10. To transform into a purer or idealized form means : a) Sublimate c) Vandal b) Ransack d) Revive.

11. The Latin word “bonafide” means. a) Strange c) Colleague c) Good faith d) Non of the above. 12. BCC stands for a) Blind copy carbon c) Blind carbon copy b) Before carbon copy d) Before copy carbon. 13. VAT stands for a) Value Added Tax c) Value Abstract Tax b) Value Addition Tax d) Value Added Text. 14. Alma mater means : a) A school or college which one has to attend : b) A public apology.




c) Preliminary matter

d) None of the above. 15. The proverb “To rob peter to, pay paul” means. a) Things take time to complete and to mature. b) To harm one person in order to benefit the other. c) You judge a man’s worth by his clothes. d) A man is judged by sort of friends he has. 16. WWW stands for a) World wide web c) Web world wide b) Web world wide d) None of the above. 17. Agnostic means a) One who perform gymnastic frets. b) The action of attacking with provocation. c) Science of production, transmission. d) None of the above. 18. There are several pairs or group of words that are similar but are different in spelling and

meaning : a) Antonyms c) Synonyms b) Homonyms d) None of the above.

19. It is used to construct word to clarify meaning. It links words to form compound word. a) The Hypher (-) c) Full Stop (.) b) Comma (,) d) None of the above. 20. An ostentatious and inappropriate display of learning is : a) Jargon c) Verbosity b) Pedantry d) Vocabulary. Answers : 1.(c) 2. (c) 3. (d) 4. (b) 5. (a) 6. (c) 7. (a) 8. (b) 9. (d) 10. (a) 11. (a) 12. (b) 13. (c) 14. (a) 15. (a) 16. (b) 17. (a) 18. (d) 19. (b) 20. (a).

1. A job application is similar to : a) Sales letter c) Letter of order b) Purchase letter d) None of the above. 2. A sales letter drafted for a large number of people is known as : a) Sales Order c) Sales manual b) Sales Circular d) Sales Enquiry.




3. Which of the following is applicable in case of Telegram :

a) The message must be detailed. b) Normal grammer and punctuation must always be followed c) Time should be written according to twenty four hour clock. d) Block letter must not be used. 4. Office orders have a format similar to that of : a) Press Release c) Advertisement b) Representation d) Memorandum. 5. Which of the following is not a form of intra-organisational communication : a) Representation c) Press release b) Memorandum d) Office Notes. 6. Difference between a sales letter and sales circular is : a) Subtitle c) Introduction b) Salutation d) Conclusion. 7. Which of the following features specifically does not relate to advertisement : a) Inviting tender c) Placing an order b) Hike in prices d) Recruitment of personnel. 8. Which of the following is not the heading of a classified ? a) Business offer c) Situation wanted.

b) Situation vacant d) Situation sale. 9. What does OEM stands for : a) Outstated Equipment Manufactures b) Original Equipment Manufactures, c) Ordinary Equipment Manufactures d) None of the above. 10. Which type of letter is not goodwill letter : a) Thank you letter c) Letter of complaint b) Condolence letter d) Letter of sympathy. 11. Which of these terms and conditions are not present in the letter of appointment? a) Place of operation c) Probation b) Remuneration d) None of the these. 12. Obituary notice is written to provide a news of : a) Some body’s death c) Some body’s termination b) Some body’s promotion d) None of these. 13. The first step of a commercial transaction is : a) Making an order c) Giving quotations b) Making an enquiry d) None of these.

14. In case of tender notices, EMD stands for : a) Electronic monetary deposit c) Earnest money division b) Earnest money department d) Earnest money deposit. 15. Normally, in tender notices EMD is _________% of estimated value. a) 2% c) 4% b) 3% d) 5%. 16. In case of tenders, contract is given based on the principle of : a) Lowest bid get the contract c) Best bid will get the contract b) Highest bid get the contract d) None of these. 17. In case of order letters which of these is not placed under the head of terms and conditions

: a) Price c) Credit terms




b) Discount d) Despatch

18. What does “D” stands for in AIDAS plan ? a) Despatch c) Delivery b) Discount d) Desire. 19. ________________ is the biggest example of paid communication. a) Advertisement c) Letters b) Publicity d) All of these. 20. Which of these is an essential feature required for advertisement ? a) Exposure c) Retention b) Perseverance d) All of these. 21. Which of these is not a traditional method of approaching customers ? a) Handbills c) Brochures b) Leaflets d) Personal mails. Answers : 1.(a) 2. (b) 3. (c) 4. (d) 5. (c) 6. (a) 7. (c) 8. (d) 9. (b) 10. (c) 11. (d) 12. (a) 13. (b) 14. (d) 15. (a) 16. (a) 17. (c) 18. (d) 19. (a) 20. (d) 21. (d).

1. _________________ only mentions the quantity and type of good : a) Invoice c) Delivery Challan b) Performa Invoice d) None of the above. 2. A note sent by a seller to buyer to rectify an undercharge in the original invoice : a) Credit note c) Warrant b) Debit Note d) None of the above. 3. Which of the following is not a banking service : a) Policy Renewal c) Term loan b) Overdraft limit d) Status Enquiries. 4. ___________________ request is to be made to depository participants with whom the

shareholder has a Demat Account in the prescribed standard. a) De-materialisation c) De-regulating b) Re-materialisation d) Regulating. 5. Which of the following is not a guideline for writing minute : a) Record full text of motions b) Ensure that each item discussed in the meeting has been recorded c) Use separate paragraph for each item. d) Re-organisation of work.

6. A commercial transaction is a _________________ process : a) Simple c) Complex b) Chain d) None of the above. 7. A program listing items of business to be transacted in a meeting : a) Warrant c) Agenda b) Minutes d) None of the above. 8. Which of the following is a type of insurance correspondence letter ? a) Reporting loss c) Both a) and b) b) Overdraft limit d) C Form. 9. The first collection letter should be written in ______________ manner : a) Firm c) Strict b) Polite d) None of the above.




10. The _____________________ is calculated in percentage term say 2 paise per hundred

rupees for fire insurance. a) Restricted loss c) Maturity value b) Sum Assured d) Premium. 11. A company may not charge the full price of shares but recover in installments that are

known as “______________”. a) First call c) Final call b) Second Call d) Call. 12. “Enterprise are paid to create wealth not to control cost” is said by : a) John Keats c) Charles Darwin b) Peter F Drucker d) AL Bowley. 13. It is advisable to send a copy of ___________ showing arrears of payment to the companies

before sending the collection letter. a) Statement of Account, b) Statement of Affair. c) Statement showing Balance Sheet. d) All of the above. 14. Which feature of banking services should be used when the payee reports that he has not

received the instrument.

a) Change of signatories c) Status Enquiries b) Overdraft limit d) Stop payment. 15. Date of next meeting should be mentioned in : a) Notice c) Agenda b) Minutes d) All of the above. 16. Sanction letter is required in which type of loan : a) Term loan c) Overdraft b) Cash credit d) All of the above. 17. _____________ facility shall be used by corporate houses relating to postal department : a) Letter posting c) Money order b) Post Box facility d) None of the above. 18. To challenge defaulter some steps should be followed like :- a) Suspension of supplies c) A stricter tone and style b) Cancellation of credit. d) All of the above. 19. Full form of AAR : a) Against all risk c) All against refund b) All against risk d) All against recovery. 20. Full form of E & OE

a) Error and Omission Eluded c) Error and Omission Eradicated b) Error and Ommission Excepted d) Error and Omission Established. Answers : 1.(c) 2. (b) 3. (a) 4. (b) 5. (d) 6. (c) 7. (c) 8. (a) 9. (b) 10. (d) 11. (d) 12. (b) 13. (a) 14. (d) 15. (c) 16. (d) 17. (b) 18. (d) 19. (a) 20. (b). 1. _____________ are made in order to voice a grievance and to secure a relief : a) Representation c) Invitation b) Notice d) None of these.




2. Full form of RSVP :

a) Respondey s’ll via plait c) Respondey s’al via plait b) Respondey s’ll vous plait d) Respondey. 3. Meaning of RSVP is : a) Please pay c) Both a) & b). b) Please send d) Please reply. 4. ________________ Messages does not require salutations and complimentary close : a) Fax c) Both a) & b) c) Telex d) None of the above. 5. Full form of fax : a) Facsimile c) Fasimile b) Factsimile d) None of the above. 6. Email packages like ____________________ and __________________ are part of web

browser. a) Internet Explorer and Messenge b) Out look express and Mozilla firefox c) Messenger and Outlook express d) Internet Explorer and Mozilla firefox. 7. ________________ paper tends to disappear after some time.

a) Plan c) Hand made b) Thermal d) None of the above. 8. What is the full form of SMS ? a) Short Multimedia service c) Small Multimedia service b) Short Messaging Service d) Small Messaging service. 9. What points should be avoided while writing a Telegram : a) Use of lower case c) Good use of Grammer b) Use of AM and PM, d) Both a) & b). 10. Which program is buffered by specialist while writing email : a) Messenger c) Eudora b) Out look express d) All of the above. 11. Telegram may also be communicated over the telephone and this is called. a) Telephonogram c) Phonogram. b) Telegraphonic d) None of the above. 12. Telex Machine allows the exchange of : a) Photons c) Email b) Text d) None of the above. 13. Which facility has mobiles provided for sending brief messages instantly :

a) SMS c) Emails b) Telephone d) Telegram. 14. RSV is a ____________ word. a) Roman c) French b) German d) None of the above. 15. The quality of expressing much in few words. a) Exigency c) Apprises b) Brevity d) None of these. 16. To give notice to inform or advise : a) Pecuniary c) Apprises b) Brevity d) None of the above. 17. To reduce to short form :




a) Exigency c) Previnary

b) Sulpur d) Condensing. 18. Explain in one word “To deal out” : a) Condensed c) Persist b) Dispensed d) Inevitable. 19. Explain the sentence in one word = “unable to be avoided” : a) Dispensed c) Remittance b) Inevitable d) Condensing. 20. Invitation of “seminar on carrier” is a : a) Advertisement c) Public Notice. b) Notice d) Individual Invitation. Answers : 1.(a) 2. (b) 3. (d) 4. (c) 5. (a) 6. (c) 7. (b) 8. (b) 9. (d) 10. (c) 11. (c) 12. (b) 13. (a) 14. (b) 15. (b) 16. (c) 17. (d) 18. (b) 19. (b) 20. (a). 1. Plural Form of memorandum : a) Memorand c) both a) & b).

b) Memoranda d) None of the above. 2. Full form of ESOP : a) Employee Sale Option Plan c) Employee Stock Option Plan b) Employee Stock Option Proceder d) None of the above. 3. Memos may relate to : a) Show Cause Notice c) Both a) & b) b) Charge – sheet d) None of the above. 4. _____________ is a note or record for future use : a) Office circulars c) Memo b) Office Orders d) Memorandum. 5. What does Office Order do not include : a) Order No. c) Date b) Subject d) Under Signed. 6. What does a circular do not include : a) Circular No. c) Date b) CC: d) Under Signed. 7. ______________________ is used for disseminating information to a large number of

employees :

a) Office Circulars c) Office Notice b) Office Order d) None of the above. 8. ___________________ are preferred when one needs to convey information in writing : a) Office Order c) Office Note. b) Office Circular d) Memorandum. 9. _______________ is devoid of solution : a) Office Order c) Office Note b) Memo Report d) Office Circular. 10. ________________ carry a bold, underlined heading to help us identify them : a) Office Note c) Office Circulars b) Office Orders d) Memo Report. 11. Passive verb is preferred in which type of inter – department communication :




a) Office Order c) Office Note

b) Memo Report d) Office Circular. 12. Format of …………… differ from company to company : a) Officer Order c) Office Note b) Memo Report d) Office Circular. 13. …………….. does not have salutation and complimentary close : a) Memo c) Office Note b) Officer Order d) None of the above. 14. ……………….. is not a type of intra-organizational communication : a) Advertisement c) Office Note b) Office Order d) Office Circular. 15. ……………….. letters are necessary to be written on a letter head : a) Office Notes, b) Representation to Management, c) Correspondence with Regional Office, d) Office Orders. 16. …………….. are used commonly for issuing instructions to the staff. a) Memos c) Office order b) Office notes d) None of these.

Answers : 1.(b) 2. (c) 3. (c) 4. (d) 5. (b) 6. (b) 7. (a) 8. (d) 9. (d) 10. (b) 11. (a) 12. (c) 13. (a) 14. (a) 15. (c) 16. (a). 1. A press release should have following features in order to be selected : a) Detailed c) Lengthy b) Factual d) Unsuitable. 2. _______________ is drafted by professional journalist : a) Press Release c) Press report b) Advertisement d)None of the above. 3. ______________ should always be printed on letter head of the organization : a) Press Report c) Advertisement b) Press Release d) All the above. 4. _____________ are the most harassed community and have to work under considerable

pressures till take hours to meet the deadlines :

a) Editor c) Journalist b) Managing Director d) None of the above. 5. Which of the following is not essential for a good press release : a) Unsuitable c) Interesting b) Factual d) Brief. 6. PRESS RELEASE should not have following qualities : a) News value c) Unsuitable b) Display d) Brevity 7. _____________ is based on the contents of Press Release : a) Report c) Office Note b) Memo d) Press Report. 8. Press release should be signed by an authorized person :





b) False d) Partly False. 9. ______________ removes the unnecessary information from press release : a) Central Bureau of investigation c) Chief of bureaus b) Chief Manager d) Managing Director. 10. What is the alternative to press release ? a) Press report c) Paid Advertisement b) Sample Distribution d) None of these. 11. Which authority checks the length of press release ? a) Manager c) Press department b) Board of directors d) Chief of bureaus. Answers : 1.(b) 2. (c) 3. (b) 4. (c) 5. (a) 6. (c) 7. (d) 8. (a) 9. (c) 10. (c) 11. (d). 1. “The letter written by one party to another, and the answers there to, make what is called

the correspondence of parties such correspondence if done through electronic signals via

internet is called ___________”. 2. Full form of HTTP a) Hyper text transfer protocol c) Hyper text transfer plan b) Hyper transfer text plan d) None of the above. 3. _____________ is a networking infrastructure : a) Internet c) Extranet b) Intranet d) E-mail. 4. What is the other name for e-correspondence ? a) E-mail – Correspondence c) Both a) and b) b) Electronic – correspondence d) None of the above. 5. Full form of URL is : a) Uniform Reachable Locator c) Uniform Research Locator b) Uniform Resource Locator d) Uniform Readable Locator. 6. First e-mail system was known as : a) MALE BOX c) MAIL BOX b) EMAIL BOX d) None of the above. 7. When was FTP (File Transfer Protocol) put in use : a) 1952 c) 1972

b) 1962 d) 1982. 8. Which protocol is used to receive mail : a) SMTP c) HTTP b) POP d) FTP. 9. Which of the following is not the feature of E-mail : a) Spam c) Signature b) Search d) Settlement. 10. Which is not a E-mail etiquette : a) Be concise c) Be Professional b) Be Realistic d) Watch ur tone. 11. Which protocol is used by web : a) HTTP c) FTP




b) SMTP d) POP.

12. Unsolicited or junk mails are filtered through the option of : a) Delete c) Spam b) Trash d) None of the above. 13. WWW stands for : a) World web wide c) World wide web b) Wide world web. d) None of the above. 14. Who is called as the “Father of E-mail”? a) Merrian c) Tomlinson b) Aristotle d) None of the above. 15. This began as an American experiment in computer communication technology during the

cold war and has revolutionized the world. a) Fax c) SMS b) Telegram d) Email. 16. _______________ allows a central communication area for the entire company. a) Intranet c) Extranet b) Internet d) None of the above. 17. ______________ is used in place for paper to communicate. a) Internet c) Email

b) Intranet d) All of the above. 18. Full form of IMAP : a) Internet Message Access Plan. b) Internet Message Access Protocol. c) Intranet Message Access Protocol. d) None of the above. 19. Full form of POP a) Post office plan, c) Point office protocol b) Point office pratocal d) Point office plan. 20. Which year was water shed year in e-mail marketing ? a) 1946 c) 1966 b) 1956 d) 1976. Answers : 1.(c) 2. (a) 3. (a) 4. (c) 5. (b) 6. (b) 7. (c) 8. (b) 9. (d) 10. (b) 11. (a) 12. (c) 13. (c) 14. (c) 15. (d) 16. (a) 17. (d) 18. (b) 19. (c) 20. (d).





17. Who coined the word POSDCORB about functions of management ? e) Henry Lawrence Gantt c) Newmann and Summer f) Henry Fayol d) Luther Gulick.

18. Management is a / an e) Exact science, c) Inter disciplinary science f) Science as well as art d) All of the above.

19. Who corrected the difficulties of Taylor’s differential piece rate system ? e) Henry Lawrence Gantt c) Newmann and Summer f) Henri Fayol d) Max Weber.

20. Which one of the following definitions of management is given by Henry Fayol ? i) Management is to forecast, to plan, to organize, to command, to co-ordinate and control

activities of others. j) The process of getting things done by the people and for the people. k) The functions of getting things done through people and directing efforts of individuals

towards a common objective. l) None of the above.

21. Who distinguished between ‘Principles’ and ‘slements’ of management ? e) Fredrick Taylor c) Henri Fayol f) Newmann and Summer d) Henry Lawrence Gantt.

22. At which level of management hierarchy intellectual skill is the most important & vital ? e) Lower c) Higher f) Middle d) All of the above.

23. Superior – Subordinate theory was given by : e) Henry Fayol c) Koontz O’ Donnel f) V.A. Gralcunas d) Joseph Jecard.

24. Which of the following is a concept given by Frederick Taylor ? e) Division of work c) Stop watch study f) Unity of command d) None.

Answers :

3. (d) 2. (c) 3. (a) 4. (a) 5. (c) 6. (c) 7. (b) 3. (c)

Planning :


e) Reflective thinking c) Farsightedness f) Imagination d) Quantifiable.


e) Underlines c) Unified f) Will defined d) Parallel.





e) Programme c) Organising

f) Budget d) None of these.


e) Rules, c) Methods f) Budget d) All of these.


e) Non-materials c) Numerical expression f) Money d) Both b) and c)


e) Marketing c) Operational f) Project d) Strategic.


e) Static c) Both a) & b) f) Dynamic d) None of these.


e) Staffing c) Control f) Direction d) All of these.


e) Procedures c) Planning

f) Budget d) Rules.


e) Comprehensive c) Limited f) Unlimited d) Both a) and b).


e) Planning c) Organising f) Forecasts d) All of these.

Answers :

63. (d) 64. (c) 65. (a) 66. (d) 67. (d) 68. (a) 69. (b) 70. (d) 71. (b) 72. (b)

73. (d).

Organization :


e) Centralization c) Organization f) Decentralization d) Controlling.





e) Planning, c) Organization

f) Controlling d) Directing.


e) Planning, c) Directing f) Organizing d) Controlling.

36. _______________ can be defined as collection of people and co-ordination of their activities of

the enterprise :

e) Directing c) Organizing f) Controlling d) Planning.


e) Decision making c) Developing Relationships f) Division of Work d) Group Efforts.

38. ________________ means a large-part of decision making and authority is withhold at higher positions in the management hierarchy.

e) Decentralization c) Delegation f) Centralization d) Both a) and b).


i) Centralization, Decentralization,

j) Delegation, Authority, k) Centralization, Decision making l) Decentralization, Delegation.


e) Control Techniques c) Management Attitude f) Size of the Enterprises d) Allotment of Duties.


e) Keith Davis c) Kasts and Resenzweing f) Barnard d) Larry E. Greiner.


e) Authority c) Accountability f) Responsibility d) Authority – Power Contimum.

Answer :

33. (b) 34. (c) 35. (b) 36. (c) 37. (b) 38. (b) 39. (d) 40. (d) 41. (a) 42. (a)






17. In which of the following methods of performance appraisal, employees are distinguished as outstanding, above average, average, below average and poor. e) Ranking Method, c) Unstructured appraisal f) Check lists d) Forced distribution method.

18. Which one of the following is an internal source of recruitment? e) Placement Agency c) Transfer f) Employment Exchange d) Educational Institutions.

19. Which one of the following is the expanded form of acronym ‘MBO’ ? i) Management of Business Organization, j) Management of Business Objectives, k) Management by Options l) Management by Objectives.

20. The act of increasing the knowledge and skill of an employee for doing a particular job, is known as : e) Promotion c) Training f) Selection d) Transfer

21. Performance appraisal helps in : i) Orderly determination of an employee’s worth to an organization. j) Meeting manpower needs of the organization. k) Improving communication abilities, human relation and managing interaction with

subordinates. l) None of the above.

22. Ranking, rating scales and check lists are the method of : e) Job description c) Performance appraisal f) Promotion method d) None of the above.

23. Which one of the following refer to the study of individual and group behaviour in an organization? i) Organizational behaviour j) Human resource management k) Human relations

l) Group dynamics. 24. The full form of BARS is :

i) Behaviourally Anchored Ranking Scales, j) Behaviourally Anchored Rating Scales k) Behaviourally Anchored Rollback Scales l) None of the above.

Answer :

3. (d) 2. (c) 3. (d) 4. (c) 5. (a) 6. (c) 7. (a) 8. (b) 9. (b).



e) Principle of Integrity c) Principle of Clarity f) Principle of Disintegration d) Principle of Strategic use of informal orgn.





e) Parent – child c) Parent – Adult f) Child – Parent d) Adult – Adult.


e) Internal c) Both a) and b) f) External d) None of the above.


e) Chairman c) PRO (Public Relation Officer, f) Secretary d) Director.


e) Vertical Co-ordination c) Both a) & b). f) Horizontal Co-ordination d) Upward Co-ordination.

44. _______________ is characterized by the emergence of spontaneous channels through which facts, half truths, and rumours pass.

e) Formal communication c) Mix communication f) Informal communication d) None of the above.


e) Pictures c) Action f) Media d) Written communication.


e) Perfunctionery Action c) Premature Evaluation f) Semantic Distortion d) Resistance to Change.


e) Co-ordination c) Directing f) Controlling d) Organizing.


e) Co-ordination c) Cooperation f) Controlling d) None of the above.

Answers :

39 (b) 40. (d) 41. (b) 42. (c) 43. (a) 44. (b) 45. (c) 46. (b) 47. (a) 48. (c)




Controlling :


11. Which one of these is not a traditional method of controlling : e) Budgetary Control c) Merit – Rating, f) Standard costing d) Break-even analysis.

12. Which one of the following is not correct about control ? i) Control is forward looking

j) Control suggests corrective actions k) Control is one time activity l) Control is exercised as per organisational authority.

13. Which one of the following is considered as non-traditional control technique? e) Internal audit c) Zero-base budgeting f) Break-even analysis d) Financial ratio analysis.

14. Which one of the following is known as technique of controlling ? e) Margin of safety c) Break-even analysis f) Marginal of Contribution d) P/v Ratio.

15. In which country the zero base budgeting was first evolved? e) Japan c) India f) USA d) China.


e) Economic Function c) Health of Earning f) Basis for Control d) Sales Figures


e) Standard Costing c) Internal Audit f) Budgetary Control d) Network Analysis.


e) Standard Costing c) Statistical Control f) Budgetary Control d) Internal Audit.


e) Network Analysis c) Financial Ratio f) Break Even d) Standard Costing.


e) Forward looking c) Corrective action f) Feedback d) Flexible.

Answers :

3. (c) 2. (c) 3. (c) 4. (c) 5. (b).




41. (b) 42. (b) 43. (a) 44. (b) 45. (c).



e) Expand and diversify c) Spreading Business Risk f) Foreign Exchange Earning d) Integration of Economies.

27. _____________ is the phase where the level of the risk and its nature are assessed and understood.

e) Risk Assessment c) Risk Management. f) Risk Analysis d) Risk Evaluation.


i) Minimising of opportunities j) Optimising the use of resources

k) Improved Organizational Efficiency, l) Identify and evaluate risk.


e) Natural disaster c) Confrontation crisis f) Technological crisis d) Workplace Voilence


e) Natural Disaster c) Confrontation crisis f) Technological crisis d) Rumours.


e) 25, 35 c) 35, 45 f) 45, 55 d) 55, 65


e) Evaluate c) Assertive f) Prioritize d) None of the above.


i) Better informed decision making

j) Less change of major problem in new and ongoing activities k) Increase likelihood of achieving corporate objective l) System of making choices.





e) First line supervisor c) Top Management

f) Middle Management d) None of the above.


e) Charles Kettering c) Kotler f) Kohler d) Venette

Answers :

26. (d) 27. (b) 28. (a) 29. (b) 30. (c) 31. (a) 32. (b) 33. (d) 34. (c) 35. (d).

Business Ethics :

December 12 :

21. Employer should behave ethically while dealing with others, i.e. employees suppliers, customers etc. In this sense, what view does Business ethics concept represent ?

e) Narrow c) Conservative f) Limited d) Universal.

22. Which one of the following statements about business ethics is false ? i) Business ethics goes beyond legal issues. j) Ethical conflicts lead to ethical dilemma. k) Ethical conduct builds trust among individuals and in business relationships l) Application of business ethics is limited to the profitable organizations.

23. Which one of the following is the quality of an ethics coach ? i) He should have strong knowledge of ethical practices, j) He should have strong analytical skills k) He should have knowledge of decision making tools l) All of the above.

24. Business ethics and financial performance are linked together and hence are advantageous to : e) Company c) Employees f) Investors loyalty d) All of the above.

25. Ethics is considered as :- e) Normative Science c) Natural Science

f) Exact Science d) None of the above. 26. Which of the following works as a motivation for an employee to work in an organization ?

e) Monetary benefits c) Learning opportunities f) Career progression d) All of the above.

27. The Minimum Wages Act, 1965 was enacted for safeguarding the interests of :- e) Employees c) Consumers f) Management d) Government.

28. A written document of policies and principles that guides the behaviour of all employees is known as :- e) Ethical dilemma c) Financial delegation document f) Code of ethics d) None of the above.

29. Which one of the following means ethical dilemma ? i) A situation requiring a choice between ethical and unethical behaviour




j) A situation of ethical behaviour.

k) A situation of unethical behaviour. l) A written statement of policies and principles that guides the behaviour of all


i) Establishing social groups to pressurize the business organizations for adopting ethical practices.

j) Boycotting the organizations following unethical practices. k) Arranging ethical awareness programme for business houses. l) All of the above.

Answers :

3. (d) 2. (d) 3. (d) 4. (d) 5. (c) 6. (d) 7. (a) 8. (b) 9. (a) 10. (d)



e) Ornamental c) Simplicity f) Clarity d) Both b) and c)

42. The Language of a politician obscures the truth. The language of an artist reveals it. This is said by :

e) Salman Rushdie c) Sydney J Harris f) Peter Drucker d) Nayantara Sehgal.


e) Peter Drucker c) Sydney Harris

f) Francis Bacon d) Salman Rushdie


e) More time Consuming c) Can be easily revised f) Accurate and precise d) Sufficient time for planning.


e) Tape recorder c) Intercom f) Flip charts d) Both a) and c).


e) Saves time c) No record for future preference f) Economical d) None of these.


e) Maps c) Graphs




f) Slider d) All of the above.


e) Cinema c) Neon Hordings f) Video Conferencing d) All of the above.


i) True j) False, if it is well coordinated k) False, planning can never be a communication barrier. l) None of the above.


e) Verbal Communication c) Both a) and b) f) Non-verbal communication d) None of the above.

Answers :

41. (d) 42. (a) 43. (b) 44. (a) 45. (d) 46. (c) 47. (d) 48. (c) 49. (a) 50. (b).


December 12 :

21. Identify the correctly spelt word :- e) Occasion c) Occassion f) Ocasion d) Ocasion

22. The abbreviation ‘E&OE’ stands for : i) Errors and Omitted Errors j) Expected and Omitted errors k) Errors and Omissions excepted,

l) Exceptions and omissions encountered. 23. The proverb apparel often proclaims the man means :-

i) Clothes are everything j) You judge a man’s worth by his clothes, k) Apparels are expensive l) None of the above.

24. Fax is the abbreviation of :- e) Fascimile c) Fascicle f) Fascile d) Fiscal.

25. What does the idiom to split hairs mean ? e) Argue on major points c) Not to argue f) Argue on minor points d) Brainstorming.

26. ________________ Taj Mahal is situated in Agra. Fill in the blank using correct article. e) A c) The f) An d) None of the above.

27. Expired is a synonym of :




e) Illegal c) Dishonoured

f) Lapsed d) Matured. 28. Who is called a Connoisseur ?

i) One who gives friendly help j) An expert judge in the matter, k) One who performs gymnastic feats, l) A member of royal family.

29. A word opposite to another word : e) Antonym c) Homophones f) Synonym d) Idiom.

30. ________________ err is human ________________ forgive is divine e) One c) Into f) To d) From

Answers :

3. (a) 2. (c) 3. (b) 4. (a) 5. (b) 6. (c) 7. (b) 8. (c) 9. (a) 10. (b).



e) Cost Insurance & Free c) Cost Insurance & Freight f) Call Insurance & Freight d) None of the above.


e) Lowest c) Highest f) Both a) and b) d) None of the above.


e) Tender c) Pre-qualification f) Estimate d) Reply.


e) Ready-to-send c) Sympathy f) Thank you d) Condolence.


e) Hike in price c) Stunts performed by actors f) Inviting tenders d) Recruitment of personnel.


e) Attention c) Interest f) Attraction d) Desire.





e) Burdensome c) Penury

f) Revenge d) Tedious.


e) Name of the company c) Phone No. f) Credit reference d) None of the above.


i) Computerized and Numerically Counted, j) Computerized and Numerically Controlled k) Computerized and Numerically Claimed l) None of the above.


e) 20 c) 30 f) 25 d) 10.

Answers :

31. (c) 32. (c) 33. (c) 34. (a) 35. (c) 36. (b) 37. (b) 38. (b) 39. (c) 40. (d).



e) Meeting c) Minutes f) Agenda d) None of the above.


i) Integrated Small Digital Network

j) Integrated System Digital Network, k) International Small Display Network, l) Integrated System Display Network.


Dear Sir,







e) Collection Letter c) Statement of Account

f) Reminder Letter d) Final Reminder.


e) Overdraft limit c) Postal authorities f) Dividend d) Policy renewal.

33. In which Legal Condition, a person or Business has liabilities exceeding the assets and the debtor is unable to pay the amount.

e) Winding up process c) Bankruptcy f) Incorporation d) None.


e) Overdraft c) Money order f) Loan d) None.


e) Policy renewal c) Null and void Policies f) Overdraft limit d) None.


e) Harsh c) Simple and precise f) Complex d) None


e) Time c) Letters f) Heading d) Date.


e) ISDN c) VSAT f) Post box facility d) AAR.

Answers :

29. (b) 30. (c) 31. (b) 32. (a) 33. (c) 34. (b) 35. (b) 36. (c) 37. (b) 38. (c).

Administration :


e) True c) Partly True f) False d) None of the above.


e) President c) Members




f) Minister d) Public


e) Members c) President f) Director concerned d) Concerned ministry

30. When an organization needs to share important information with members of general public such as change of name it drafts :

e) Representation c) Invitations f) Public notes d) Individual invitation.


e) Informal c) Urgent f) Formal d) Personal


e) Fax-messages c) Public notice f) Telex messages d) Representation.


e) Fax c) Invitations f) Telegram d) E-mails.


e) Telegram c) Fax f) E-mail d) All above.


e) Fax c) Both a) & b) f) E-mail d) None.


e) True c) True, at the time of emergency f) False d) True, for the informal occasions.

Answers :

27. (b) 28. (c) 29. (d) 30. (b) 31. (b) 32. (b) 33. (b) 34. (d) 35. (c) 36. (b)



e) Memo c) Office note f) Office Order d) None of the above.





e) Advertisement c) Office Note f) Officer Order d) Office Circular


i) Office Notes j) Representation to Management, k) Correspondence with Regional Office, l) Office Orders.


e) Memos c) Office order f) Office Notes d) None of these.


e) Three c) Five

f) Four d) Two


e) Individual Preference c) Suggestions for transfers f) Special holidays d) Both a) & b).


e) Office notes c) Office orders f) Office circulars d) None of the above.


i) Management could accept respect j) May give an oral reply k) Could issue an office order l) All of the above.


i) To cause faster or greater activity j) Respectful request k) Capable of being Perceived l) To Scatter or spread widely.


e) Bipartive c) Probation f) Meritorious d) Inter office.

Answers :

13. (a) 14. (a) 15 (c) 16. (a) 17. (d) 18. (a) 19. (c) 20. (d) 21. (d).






e) Press report c) Both a) and b) f) Press release d) None of above.


e) 2 c) 5 f) 3 d) 6


i) Government j) International agencies k) Organization working in specific fields. l) All of above.


e) Profit c) Goodwill f) Turnover d) Both a) and c).


e) Press report c) Both a) & b) f) Press release d) None of above.

18. Means of PRO is ______________

e) Press Release Organization c) Press Report Organization. f) Public Relations Officer d) None of above.


e) Public information c) Companies information f) Disseminate information d) Both a) & b).


i) Share all its thoughts with Public j) Share Some important information with public k) Share some of its problem with Public l) All of above.


e) Polite & Soft c) Attitude & information f) Confidence & attitude d) All of above.


e) R & D Break though c) New service f) Study finding d) All of above.




Answers :

13. (b) 14. (d) 15. (d) 16. (c) 17. (a) 18. (b) 19. (b) 20. (b).

E-Correspondence :


e) Post office plan c) Point office protocol f) Point office pratocal d) Point office plan.


e) 1946 c) 1966 f) 1956 d) 1976.


e) Sending e-mail c) E-commerce f) Tele conferencing d) All of the above.


e) Internet c) E-Correspondence f) E-mail d) None of the above.


e) 1965 c) 1976 f) 1974 d) 1968


e) Full Time Protocol c) Fun Time Program f) File Transfer Program d) file Transfer Protocol


e) Spam c) Attachments f) Interface d) None of the above.


e) Managing E-mail is easy c) E-mail is inexpensive f) E-mail is fast d) Security.


i) Internet Communication j) Send private messages k) Used as a corporate culture – change platform. l) All of the above.





e) Hyper Text Mail Language c) Hyper Text Markup Language f) Hyper Transfer markup language d) High Time Markup Language.

Answers :

19. (c) 20. (d) 21. (d) 22. (a) 23. (a) 24. (d) 25. (c) 26. (d) 27. (d) 28. (c)

Business Environment :

56. _________ was set up to channel foreign capital investment :

e) SEBI f) Foreign Investment Promotion Board g) Special Economic Zone h) International Trade Promotion Board.

57. Which of the following is an element of Political environment?

c) Legislature c) Executive d) Judiciary d) All of the Above.

58. Which of the following is a method of Privatisation :

c) Divestiture c) Franchising d) Denationalization d) All of the above.

59. The form of privatization in which the government company retains its legal status even though some or all of its operations are suspended is called.

c) Controlling c) Informal liquidation d) Formal liquidation d) Denationalization.

60. The method of Privatization in which the government authorizes the delivery of certain services in a designated area is called :

c) Franchising c) Contracting d) Leasing d) Divesture.




61. Which of the following is not a use of Vision/Mission Statement :

e) Inspiring the Employees f) Defining Problems & Standards g) Increasing the profits and revenue, h) Defining the Performance Standards.

62. Which of the following is not true in relation to the business environment ?

e) It is beyond the organizational f) It is a sum total of internal and external control factors g) Organization can remain insensitive to the business environment h) It is dynamic in nature.

63. USP stands for :

c) Unique Selling Price c) Unique Selling Point d) Unique Strategic Price d) Ultimate Selling Price.

64. The partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy is called as :

c) Divesture c) Denationalization d) Environment withdrawal d) Reprivatization.

65. The process of restoring to its former properties seized by the government is called :

c) Divesture c) Reprivatization, d) Restoration d) Liquidation.

Answers :

56. (b) 57. (d) 58. (d) 59. (c) 60. (a) 61. (c) 62. (c) 63. (c) 64. (a) 65. (c).

Forms of Business Organization :

December 2012 :

11. _________________ is a feature of partnership form of business : e) Separate legal entity from the firm f) Limited scope for raising finance g) The liability of a partner is limited to his contribution to capital. h) Registration of partnership is compulsory.

12. __________________ form of business is/are appropriate for retail business. c) Sole proprietorship c) Company d) Partnership d) Both a and b.

13. Which one of the following does not have perpetual succession ? c) Company c) Sole Proprietorship d) Statutory corporation d) Co-operative Society.

14. What is the maximum number of partners involved in the non-banking organization in India ?




c) 10 c) 20

d) 15 d) 7 15. In a Hindu Undivided Family, liability of ____________ is unlimited.

c) Karta c) Both a and b. d) Co-parceners d) Neither a and b.

16. In relation to business organization structure, which one of the following is easy to form and wind up ? c) A company c) Statutory corporation d) A sole proprietorship d) Public enterprises.

17. Which is not a feature of LLP ? e) Separate legal entity f) All LLP have existence for fixed period. g) Partners in an LLP are required to turn into an agreement. h) In an LLP, partners are not liable for the act of other partners.

18. Voting right that vests with each member of co-operative society is : e) One member one vote f) Right to vote in proportion of capital g) Right to vote as mentioned in memorandum h) None of the above.

19. Gas Authority of India Limited is an example of : c) Limited liability partnership c) Public enterprise d) Private limited company d) None of the above.

20. What is the maximum strength of HUF ____________ c) 10 c) 100 d) 20 d) No limit.

Answers :

2. (b) 2. (d) 3. (c) 4. (c) 5. (a) 6. (b) 7. (a) 8. (a) 9. (c) 10. (d)

Scales of Business :

59. An organization established for providing essential services like railway, postal services, broadcasting etc. is called :

c) Statutory Corporation c) Public Company, d) Departmental undertaking d) Government company.

60. A government company refers to a company in which _____________ is held by the central or state government.

c) 51% of authorized capital c) 51% of nominal capital

d) 51% of Subscribed capital d) 51% of the paid up capital.

61. Life Insurance Corporation, State Trading Corporation etc. are the examples of :

c) Statutory corporation c) Departmental undertaking d) Government company d) Public company.




62. Which of the following requires registration under the Companies Act, 2013:

c) Departmental undertaking c) Government company d) Statutory corporation d) None of the above.

63. ONGC, BHEL, Hindustan Machine Tools Limited etc. are the examples of :

c) Statutory corporation c) Departmental undertaking d) Government company d) None of the above.

64. The country in which the headquarters of MNC are located is called :

c) Host country c) Principle country d) Home country d) None of the above.

65. The foreign country in which the MNC operates its business is called as :

c) Host Country c) Foreign Country d) Home Country d) None of the above.

66. Bringing credits savings and other essential services to the poors is called :

c) Poor Finance c) Micro Finance d) Micro Credit d) Both b) and c).

67. The agreement entered into by two countries in order to facilitate trade and removing restrictions is called :

c) Liberal agreement c) Co-operative agreement, d) Mutual agreement d) Bilateral agreement.

68. The advantages of MNC’s to the Home country include.

c) Inflow of foreign exchange c) Both a) and b) d) Promoting bilateral trade relations d) Neither a) nor b)

Answers :

59. (c) 60. (d) 61. (a) 62. (c) 63. (b) 64. (b) 65. (a) 66. (d) 67. (d) 68. (c).

Emerging Trends in Business :

32. The practice of using another firm’s successful business model is called :

c) Franchising c) Outsourcing. d) Leasing d) Network marketing.

33. The Franchisee is required to pay to the Franchiser :

c) Remuneration c) Pre determined sum d) Fees d) Royalty.

34. A BPO contracted outside the companies country is called :




c) Off shore outsourcing c) Far shore outsourcing

d) Near shore outsourcing d) Foreign outsourcing.

35. PDA stands for

c) Personal Data Account c) Private Distributing Agency d) Permanent Direct Account d) Personal Digital Assistance.

36. Which of the following is not a feature of Franchising ?

e) The franchiser allows the franchisee to use his trade mark. f) The franchisee is required to follow the franchiser’s policy. g) The franchiser does not make any arrangement for training the employees h) The franchisee agreement is for a limited period of time.

37. ITES stands for :

e) Information Technology Energy System f) Information Technology Enabled Software g) Information Technology Enabled Services. h) None of the above.

38. Which of the following statement is True ?

e) Franchiser exercises more control as compared to distributor, f) Franchiser exercises less control as compared to the distributor g) Franchiser and distributor have equal control.

h) None of the above.

39. Which of the following is not an advantage of E-commerce ?

c) Low start up cost c) Saving of time and effort d) Quick delivery d) All of the above.

40. EDI stands for

c) Electronic Device Interchange c) Electronic Device Interchange d) Employee Data Interchange d) None of the above.

41. EFT stands for :

c) Electronic Funds Transfer c) Enterprise Financial Transfers d) Electronic Financial Transfer d) Enterprise Funds Transfers.

Answers :

32. (a) 33. (d) 34. (a) 35. (d) 36. (c) 37. (c) 38. (a) 39. (a) 40. (a) 41. (a).

Business Functions :

38. Which of the following is not a requirement of Flow Method :




e) There must be substantially constant demand.

f) The product must be standardized g) Division of work into parts or operations h) All the operations must be carefully defined.

39. Job Method includes :

c) Low Technology jobs c) Neither a) nor b) d) High Technology jobs d) Both a) and b).

40. Which one of the following is not a feature of selling ?

c) It has a long-term perspective c) It is based on the law of Caveat Emptor d) It considers profit as a sole motive d) It focuses on producers.

41. Which one of the following is not a feature of marketing :

e) It focuses on customers f) It considers product identification and customer satisfaction g) It follows the law of Caveat Vendor h) It has a short term perspective.

42. Which of the following is not a general function of Marketing :

e) Market and consumer research f) Temporary Adoption g) Full Satisfaction of demand,

h) Maximising of economic efficiency.

43. Which one of the following is not a feature of HRM :

c) It is pervasive in nature c) It is a multidisciplinary activity d) Helps in motivating the employees d) It focuses on rules.

44. Which of the following is not a function of a Company Secretary ?

e) Conducting the Statutory meetings of the company, f) Liasoning and managing procedural formalities. g) Communicating the results to the interested parties h) Representing the organization for registration of company, change of name etc.

45. The Accounting function includes :

e) Communicating results f) Protecting the business properly g) Liasoning and managery procedural formalities h) Both a) & b)

46. The term ICT stands for

e) Internal Communication Tapping f) Initial Corporate Tax g) Insurance, Cartage and Transportation

h) Information and Communication Technology.




47. Borden’s Marketing Mix does not include :

c) Product Planning c) Promotion d) Penetrating d) Advertising.

Answers :

38. (c) 39. (d) 40. (a) 41. (d) 42. (b) 43. (d) 44. (c) 45. (d) 46. (d) 47. (b)

Introduction to Law :

57. Which of the following is NOT correct in context to the High Court in India ?

e) It is the court of Co-ordinate Jurisdiction. f) Privity council decisions are not g) It decisions are binding on all tribunals within its jurisdiction. h) All of the above.

58. A Bench of three Judges in a High Court is called as :

c) Smallest bench c) Triangular Bench d) Division Bench d) Full Bench.

59. The Smallest Bench in a High Court consists of how many Judges?

c) Five c) One d) Two d) None of the above.

60. A Bench of two judges in High Court is called as :

c) Smallest Bench c) Full Bench d) Division Bench d) None of the above.

61. The Hindu Personal law is basically found in :

c) Shruti c) Both a) and b) d) Smriti d) None of the above.

62. Which of the following is not a Smriti ?

c) Manu c) Narada d) Yajnavaldya d) Shruti

63. Which of the following is NOT a type of precedent ?

c) Persuasive Precedents c) Conditional Authority Precedent d) Original Precedent. d) Passive Precedent.

64. The Courts are required to apply the personal law of the parties where the point at issue is not covered by a statutory law or custom.

c) True c) Partly False d) False d) Partly True




65. The guidance or authority of the past decisions of the court are called :

c) Judicial Precedents c) Persuasive Precedents d) Original Precedents d) None of the above.

66. Legal customs and conventional customs are a part of :

c) Customs without Sanction c) Judicial Customs d) Customs having Sanction d) Voluntary Customs.

Answers :

57. (b) 58. (d) 59. (c) 60. (b) 61. (c) 62. (d) 63. (d) 64. (a) 65. (a) 66. (b).

Elements of Company Law Part I :

106. The licence to form a company “not for profit” is granted by

c) State Government c) High Court d) Registrar d) Central Government.

107. Government Company is defined under which section of the Companies Act, 1956?

c) Sec. 2(45) c) Sec. 631 d) Sec. 517 d) None of the above.

108. In a Government Company, the minimum share of Centre and State Government is :

e) 51% or more of the paid up share capital

f) 51% or more of the issued share capital g) 51% or more of the authorized share capital h) None of the above.

109 : The auditor of a Government company is appointed by :

e) Central Government f) Comptroller and Auditor General of India, g) Directors of the Company h) Shareholders of the Company.

110. The time period within which the annual report of government is submitted to the parliament is :

e) Six months from the end of the financial year f) Three month of AGM g) One month of AGM h) None of the above.

111. Which amongst the following documents is not required to be filed by a foreign company with the Registrar?

e) Address of the registered office of the company




f) Address of the principles place of business in India

g) Declaration of Solvency h) Articles of Association.

112. If XYZ is the holding company of P&R Ltd. then, which f the following statement is not true in this regard.

e) XYZ Ltd. controls the composition of Board of P&R f) XYZ Ltd. holds more than 50% of the nominal value of the equity shares g) Both a) & b) h) None of the above.

113. Which of the following is not a stage of the development of company?

c) Promotion c) Incorporation d) Production d) Commencement of Business.

114. Provisions related to accounts, winding up, calls on shares, forfeiture, etc. are contained in :

c) Articles of Association c) Prospectus d) Memorandum of Association d) Statement in lieu of prospectus.

115. Which one of the following is not a main clause of memorandum of association?

c) Name clause c) Object clause d) Capital clause d) Profit clause.

Answers :

106 (d) 107. (a) 108. (a) 109. (b) 110. (b) 111. (c) 112. (d) 113. (b) 114. (a) 115. (d)

Elements of Company Law Part II :

77. The meeting which is held by a particular category of shareholders is called as :

c) Class Meeting c) Sporadic Meeting d) Specific Meeting d) None of the above.

78. Which of the following statement is NOT correct with respect to a Board Meeting ?

e) No time limit for serving the notice is prescribed by the Act. f) The Board meeting should be held only at the registered office of the company. g) The Board meeting can also be held on a public holiday. h) The BM can be held even after the normal business hours.

79. It is compulsory for a company to appoint a Company Secretary if :

e) The paid up share capital is 5 crore or more. f) The paid up share capital is 10 crore or more. g) The annual turnover of the company exceeds 100 crore.




h) It the net profit of the company is more than 2 crore.

80. Which one of the following is not a power of a Secretary?

e) The acts directed to him by the Board f) The acts required to perform in order to discharge his duties. g) The acts required to be performed under an Act. h) Calling up the Board Meeting.

81. As per Sec. 2(35) of the Income Tax Act, 1961, a Company Secretary is :

c) Manager c) Coordinator d) Principle officer d) None of the above.

82. MCA stands for

e) Ministry of Corporate affairs f) Manager of Company Accounts g) Ministry of Corporate Administration h) None of the above.

83. BOOT stand for

e) Building Optimum Operational Tools f) Budgetary Online Operational Technology g) Build, Organise, Operate and Transfer h) Build, Operate, Own and Transfer.

84. Which amongst the following is NOT a role of a Company Secretary ?

c) As a statutory officer c) As a coordinator d) As an administrative officer d) As a manager.

85. Which of the following task is not required to be performed by a Company Secretary?

e) Communicating results to the interested parties f) Signing the annual return. g) Sending notice of meetings to the Directors. h) Assisting the liquidator in the winding up of the company.

86. The length of the notice of GM is stated under which section of the Companies Act, 1956.

c) Sec. 171 c) Sec. 231 d) Sec. 238 d) None of the above.

Answers :

77. (a) 78. (b) 79. (a) 80. (d) 81. (b) 82. (a) 83. (d) 84. (d) 85. (a) 86. (a).

Elements of Law Relating to Partnership :




121. As per Garner V/s Murray Rule, the deficiency attributable to the insolvency of a partner must

be borne by other partner in :

c) In the ratio of profit c) It should be borne equally d) In the ratio of capital d) None of the above.

122. Which of the following statement is not true in context to an unregistered firm ?

e) The partner of the firm cannot sue each other. f) The partnership firm cannot sue the third party. g) The third party cannot sue the firm. h) The partner of the firm cannot sue the firm.

123. Which of the following statement is False ?

e) There can be no specific performance of a partnership agreement. f) The registration of partnership is compulsory as per the Partnership Act, 1932. g) The proceeds of sale of goodwill is to be divided in the profit sharing ratio


124. Which of the following is NOT an essential of a partnership ?

e) Association of two or more persons. f) Agreement g) Sharing of profits h) Registration of partnership.

125. When a person behaves in a manner that he is a partner of the firm but actually he is not a partner, then it is called as :

c) Nominal partnership c) Dormant partner d) Partnership by estoppels d) None of the above.

126. Where a partner does not participate into the affairs of a company and only shares the profit then, he is called.

c) Ostensible partner c) Sleeping partner d) Dormant partner d) Both b) & c).

127. If a partner only gives his name to the firm and does not participate in the management of the firm, then he is called as :

c) Dormant partner c) Nominal partner d) Holding out partner. d) Sub partner.

128. When a partner agrees to share his profits with a third person, then such person is called as :

c) Sub partner c) Nominal partner d) Dormant partner c) None of the above.

129. Sharing of profits is a conclusive test of partnership :

c) True c) False d) Partly true d) Partly false.




130. The true test of partnership is :

c) Mutual agency c) Agreement d) Profit sharing d) All of the above.

Answers :

121. (b) 122. (c) 123. (b) 124. (d) 125. (b) 126. (d) 127. (c) 128 (a) 129. (c) 130. (a).

Elements of Law Relating to Indian Contract :

December 2012 :

11. What is the age of attaining majority as per Indian Contract Act, 1872 when the minor is under the guardianship of the court of wards ? c) 16 years c) 21 years d) 18 years d) 20 years.

12. Display of goods in a shop window with prices marked upon them is : c) Agreement c) Invitation to offer d) Promise d) Contract.

13. A contract of agency may be created by : c) Express agreement c) Ratification d) Implied agreement d) All of the above.

14. A threat to commit suicide is deemed as : c) Fraud c) Misrepresentation d) Undue Influence d) Coercion.

15. In a contract of indemnity, the liability of indemnifier is : c) Secondary c) Primary d) Conditional d) Optional.

16. The expression “Quantum Meruit” literally means : e) As much as earned f) As per the claim of the aggrieved party g) As much as work done h) None of the above.

17. What is the status of a contract when the consent of a party is caused by coercion? c) Void c) Valid d) Voidable d) Illegal

18. Which of the following statements is true about consideration ? e) Past consideration is valid in India. f) Consideration must result in benefit to both the parties. g) If there is no consideration, there is no contract.

h) Consideration must be adequate. 19. In which of the following situations original contract need not be performed :

e) When parties substitute a new contract for the old one. f) When the parties to a contract agree to rescind it g) When the parties to a contract agree to alter it. h) All of the above.




20. According to section 2(h) of the Indian Contract Act, ___________ is an agreement

enforceable by law. c) Consideration c) Promise d) Agreement d) Contract.

Answers :

2. (c) 2. (c) 3. (d) 4. (d) 5. (c) 6. (a) 7. (b) 8. (a) 9. (d) 10. (d)

Elements of Law Relating to Sale of Goods :

100. In an auction sale, if the seller makes use of pretended bidding to raise the price, then the :

e) Sale is voidable at the option of the seller. f) Sale is void. g) Sale is voidable at the option of the buyer. h) The buyer is not required to pay the excess amount charged by the seller.

101. Which of the following is an implied condition under a sale by description ?

e) Goods must correspond with the description. f) Goods must be of merchantable quality. g) Condition as to wholesomeness h) All of the above.

102. Which of the following is an implied condition under a sale by sample ?

e) The bulk shall correspond with the sample f) Implied condition of merchantability. g) Both a) and b) h) Neither a) nor b)

103. Subject to contract to the contrary, which of the following is NOT an implied warranty as per

the Sale of Goods Act, 1930?

e) Warranty as to resale of the goods f) Warranty implied by the custom as usage of trade g) Warranty to disclose dangerous nature of goods h) Warranty as to freedom from encumbrances.

104. As per Sec. 45 of the Sale of Goods Act, 1930 an unpaid seller is a person, who :

e) Who has not been paid the whole price. f) A person who received a bill of exchange which was dishonoured g) Both a) and b) h) Neither a) nor b)

105. The right of an unpaid seller to keep the possession of the goods and refuse to deliver the goods to the buyer is called.

c) Right of refusal c) Right of lien




d) Right to resale d) None of the above.

106. The right of lien will not be lost in which of the following cases :

e) By waiver of lien by the unpaid seller f) When the goods are delivered to the carrier and the seller reserves the right of disposal of

goods. g) When the buyer lawfully obtains the possession of the goods h) None of the above.

107. In which of the following case, the transit will not come to an end ?

e) When the buyer obtains the delivery before they arrive at the destination. f) Where the carrier acknowledges that he holds the goods on the behalf of buyer. g) When the carrier wrongfully refuses to deliver the goods h) When the goods are rejected by the buyer and the carrier holds them.

108. The right to stop the goods in transit can be exercised by the unpaid seller by :

e) Taking actual possession of the goods f) Giving notice of the sellers claim to the carrier g) Both a) and b) h) Neither a) nor b).

109. Right to lien can be exercised by the seller :

e) On non-payment of the sale price.

f) On breach of warranty g) On anticipatory breach. h) All of the above.

Answers :

100. (c) 101. (d) 102. (c) 103. (a) 104. (c) 105. (c) 106. (b) 107. (d) 108. (c) 109. (a).

Elements of law Relating to Negotiable Instruments :


e) When the drawer has countermanded payment f) When the party to whom the notice is to given cannot be searched g) When the party promises to pay unconditionally. h) All of the above.

48. Discharge in relation to a negotiable instrument can be done by

c) Discharge of the instrument c) Neither a) nor b) d) Discharge of parties liability d) Both a) and b).

49. The liability of the maker of a promissory note is

c) Primary and absolute c) Both a) and b) d) Secondary and conditional d) None of the above.




50. The liability of the drawer of a bill is

c) Primary and absolute c) Both a) and b) d) Secondary and conditional d) None of the above.

51. The essential condition of an inland bill is

e) The instrument is drawn or made in India f) The instrument must be payable in India or the drawee must be in India. g) Both a) and b) h) Neither a) nor b).

52. The person on whom the bill is drawn is known as

c) Drawer c) Payee d) Drawee d) All of the above.


e) Notice of the dishonour of a bill is necessary

f) Notice of dishonour of cehque is NOT necessary g) Both a) and b). h) None of the above.

54. The mode of crossing by which the holder of the cheque cannot get the payment over the counter but through any of the bank only is called :

c) General crossing c) Account payee crossing d) Special crossing d) None of the above.

55. The mode of crossing by which the holder of the cheque can get the payment only through a specified bank is called :


56. The mode of crossing in which the proceeds are to be credited only to the account of the payee or the party named or his agent is called :


Answers :

47. (d) 48. (d) 49. (a) 50. (b) 51. (c) 52. (c) 53. (c) 54. (a) 55. (b) 56. (c).

Entrepreneurship :

December 2012 :

11. An employee who is given the required support and resources to create new product or services is known as :




c) Auditor c) Entrepreneur

d) Intrapreneur d) None of the above. 12. Which one of the following is not an element of entrepreneurship ?

d) Innovation c) Risk averseness e) Organization skill d) Vision.

13. What is the nature of entrepreneurship ? b) An economic activity c) A political activity f) A cultural activity d) A technological process.

14. The key element of entrepreneurship is : c) Management Skills c) Creativity and innovation d) Capital d) Business acquaintances

15. For, being an entrepreneur, risk bearing is : c) The only factor c) The least factor d) One of the factor d) Not a factor.

16. Intrapreneur faces competition from c) Entrapreneur c) Employees within the organization d) Managers d) All of the above.

17. Entrepreneur is a person : e) Having high aptitude

f) Who wants to work for himself g) Ready to bear risk for profit in new venture h) All of the above.

18. According to Peter Drucker, entrepreneurship is : c) A science c) Both a science and an art d) An art d) Neither a science nor an art.

19. Which of the following is not true about an entrepreneur? e) An e entrepreneur is creative, innovative and risk taker f) An entrepreneur is independent. g) An entrepreneur is not future oriented h) None of the above.

20. The risk borne by entrepreneur is _____________ c) Less c) Moderate d) Extreme d) None of the above.

Answers :

2. (b) 2. (c) 3. (a) 4. (c) 5. (b) 6. (c) 7. (d) 8. (d) 9. (c) 10. (b).

Entrepreneurship – Creativity and Innovation :

54. Which of the following statement is true ?

e) Business plans are only for start up companies. f) Business plans should emphasize on ideas and concepts and not on people. g) Realism should prevail over optimism. h) Only the founding entrepreneur should prepare business plans.




55. An inner or environmental stimulus to action force or factors responsible for initiation,

sustaining behaviour is called :

c) Motivation c) Innovation d) Leadership d) Experience

56. Motivation can be

c) Diverse c) Dynamic d) Multiple d) All of the above.

57. Which of the following statement is not true in respect of Passive Scanning :

e) It has been a major source of information about the external world. f) It is almost at an unconscious level. g) The criterion for passive planning is specified. h) The criteria for passive planning keeps onchanging

58. The active scanning of an existing resource for a specific item is called as :

c) Directed Scanning c) Passive Scanning d) Active Scanning d) specified Scanning.

59. Which of the following is not an element of PESTLE analysis :

c) Economics c) entrepreneurship d) Environment d) Legal.

60. The belief in one’s capabilities to organize and execute the courses of action required to

manage prospective situations is called as :

c) Self Efficacy c) Risk taking d) Creativity d) Leadership.

61. Strengths and weakness are :

e) Internal components of SWOT Analysis f) External Components of SWOT Analysis g) Both a) and b) h) Neither a) nor b).

62. Opportunities and threats are :

e) External factors of SWOT Analysis. f) Internal Components of SWOT Analysis. g) Both a) and b)

h) Neither a) nor b).

63. SWOT matrix is also called as :

c) GE Matrix c) IE matrix d) OT matrix d) SW matrix.




Answers :

54 (c) 55. (a) 56. (d) 57. (c) 58. (a) 59. (c) 60. (a) 61. (a) 62. (a) 63. (b).

Growth and Challenges of Entrepreneurial Venture :

22. In case of deficit budget, the cumulative amount borrowed from the public will :

c) Increase c) Have no effect d) Decrease d) None of the above.

23. Which of the following is not included in the seven trends to be faced by an organization.

e) Speed and uncertainity will prevail f) Loyalty will erode g) Work will be done at a specified time and place. h) Technology will continue to disrupt and enable.

24. The first step to modernization is :

c) Research c) Development d) Finance d) Efficient modernizing approach.

25. The last step to Modernization is :

c) Development c) Efficient modernization d) Resource Procurement d) None of the above.

26. The introduction of a new product or service to meet the needs of an old market is called :

c) Diversification c) Growth d) Expansion d) None of the above.

27. The basic area of focus for India to utilize its talented pools to generate good entrepreneur is :

e) Ensuring access to the right skill f) Creating the right environment for success g) Enabling access to smart capital


28. The formulation of effective management concentration on opportunities and threats in long range plans is called as :

c) Operational Planning c) Expansion d) Administration d) Strategic Planning

29. The first stage in the development of Entrepreneurial firm is :

c) Start up stage c) Early growth stage d) Seed – stage d) All of the above.

30. The main objective of business planning is to :

e) Prude and implement the formal and systematic business plan.




f) To expand the business

g) To maximize profit h) To make the best possible use of resources.

31. As per the necessity-based entrepreneurship :

e) Entrepreneurship is necessary for the growth of the economy f) Choosing the entrepreneurship career is a compulsion and not a choice g) Both a) and b) h) Neither a) nor b).

Answers :

22. (a) 23. (c) 24. (a) 25. (c) 26. (a) 27. (d) 28. (d) 29. (b) 30. (a) 31. (b).




ECONOMICS

Multiple Choice Questions

1. Which one of these is not an element of discipline of economics?

(a) Study of working of an economy and the issues faced by it.

(b) Economic problems of individuals and societies are not of other social cultural aspects of human existence.

(c) The nature of economic problems and their solution is closely linked with the structure of economic system and its progress and development.

(d) Increasing the overall economic well being of the members of the society.______

2. The primary task of the discipline of economics is to study:

(a) The progress and development

(b) Estimates of national income

(c) Analyse the demand

(d) The working of an economy and issues and problems faced by it.

3. "Study of an economy" includes:

(a) Alternative forms of an economy like capitalism, socialism, a mixed economy; etc.

(b) Interrelationships between economic units and their groups;

(c) Interrelationship between different economies with each other;

(d) All the above.

4. Which one from the following is a problem with wants?

(a) Inequalities of income

(b) Availability of insufficient of resources to satisfy them

(c) Mismatch between available means (resources) and wants.

(d) Both (b) and (c)

5. Who explained the theory of economics as "It is a method rather than doctrine an apparatus of the mind, a technique of thinking which helps its possessors to draw correct conclusions".

(a) Adam Smith

(b) J.M. Keynes

(c) Lionell Robbins

(d) Alfred Marshall

6. In which year was the book named " An enquiry into the nature and causes of wealth" was given:

(a) 1846

(b) 1948

(c) 1776

(d) 1775

7. The great object of political economy of every country is to :

(a) Increase the equalities of income

(b) Decrease the political and military strength




(c) Ensure regional development

(d) Increase the riches and power of that country.

8. Find the correct match:

(a) An inquiry into the nature and causes of wealth. Alfred Marshall

(b) Science which deals with wealth. Lionell Robbins

(c) Economics is the science that studies human behavior as a relationship between ends and scarce means which have alternative uses. Lionell Robbins.

(d) Science of material well being. Samuelson.

9. The law of scarcity:

(a) Does not apply to rich, developed countries

(b) Applies only to less developed country

(c) Implies that consumer wants will be satisfied in a socialist system.

(d) Implies that consumer's wants will never be satisfied.

10. Who expressed the view that economic is neutral between ends? (a) Marshall

(b) Robbins

(c) Adam Smith

(d) Paul. A. Samuelson

11. Which one of the following is a demerit of economics as a "wealth"?

(a) Concept of wealth is wide

(b) Neglect welfare aspect

(c) Universally accepted


12. The shortage of "merit goods" leave a very strong argument in hand of the:

(a) Critics of welfare approach

(b) Critics of wealth approach

(c) Critics of scarcity approach


13. "Science has a methodological apparatus", means

(a) Economics can be easily measured

(b) Economics shows causes and effect relationship

(c) Economics can be studied through various methods

(d) None of the above.

14. Which one of the followings a method of studying economics?

(a) Inductive Reasoning

(b) Deductive Reasoning


(d) Balance of Payments

15. What does the term "Norm" or standard implies?




(a) What should not be

(b) "What is"

(c) Value judgements

(d) What ought to

16. Who used the term "Micro and Macro Economics" for the first time?

(a) J.M. Keynes

(b) Lord Robbins

(c) Rognar Frisch

(d) Karl Pearson

17. What does the term "bit by bit” approach implies?

(a) Solving problem of allocation of resources

(b) Breaking a big problem into small parts

(c) Small variable

(d) This approach does not exist

18. By which other name Micro-economics is known as?

(a) Descriptive Economics

(b) Normative Economics

(c) Price theory

(d) Positive Economics

19. Under which economics variables are aggregated and relate to large groups.

(a) Micro Economics

(b) Macro Economics

(c) Both of (a) and (b)

(d) Descriptive Economics

20. Which one from the below is a component of micro economics?

(a) Theory of national income

(b) Theory of consumer behaviour

(c) Theory of balance of Payments

(d) Deficit financing

21. At which level, problems of poverty and unemployment can be solved?

(a) Macro Level

(b) Micro Level

(c) None of above

(d) both (a) and (b)

22. "A free economy where government interference is not found".

(a) Socialist economy

(b) Capitalistic economy

(c) Mixed economy

(d) Production economy

23. The interaction between forces of demand and supply and prices of goods is known as:




(a) Demand mechanism

(b) Market mechanism

(c) Demand analysis

(d) Supply analysis

24. The problem of distribution of income is solved by:

(a) Comparing the satisfaction from current consumption and future consumption

(b) Price mechanism

(c) Utility approach

(d) None from the above

25. Which economic system provides a base for efficient decision making?

(a) Mixed system

(b) Capitalistic system

(c) Socialist system


26. Capitalism is also characterized by what is known as policy of:

(a) Laissez-faire

(b) Price

(c) Savings

(d) Investments

27. "Determination of individual price" is an example of:

(a) Macro economics

(b) Open economics

(c) Closed economics

(d) Micro economics

28. Under which authority decisions relating to central problems of authority are taken.

(a) Issuing authority

(b) No such authority exist

(c) Central Planning authority


29. "Profit motive leads to faster economic growth is merit of:

(a) Open economy

(b) Descriptive economy

(c) Capitalist economy

(d) Socialist economy

30. Public sector happens to be an important feature of:

(a) Mixed economy

(b) Closed economy

(c) Socialist economy




(d) Capitalist economy

31. "An inquiry in to the nature and causes of wealth of the nations" was defined by?

(a) J.B. Say

(b) Alfred Marshall

(c) Adam Smith

(d) Robbins

32. Who explained economics as science of dynamic growth and development?

(a) Robbins

(b) Adam Smith

(c) Alfred Marshall

(d) Samuelson.

33. Micro economics is also known as:

(a) Process theory

(b) Product theory

(c) Price theory

(d) Income theory.

34. The term economics is derived from two Greek words,______ and______.

(a) Oikou, Nomos

(b) Kiyo, Nimas

(c) Oikou, Nimas


35. Which of the following is not a central problem of the economy?

(a) What to produce ?

(b) How to produce?

(c) For whom to produce ?

(d) When to produce?

36. Production possibilities curve is__________to the origin.

(a) Parallel

(b) Convex

(c) Concave

(d) Perpendicular.

37. Normative Science deals with__________.

(a) What is?

(b) What ought to be ?

(c) What can be?


38. Which economy emphasized on self interest and profit motive ?

(a) Capitalist Economy

(b) Socialist Economy

(c) Mixed Economy





39. What is the "Fundamental Premise of Economics" ?

(a) Natural resources will always be scare.

(b) Individuals are capable of establishing goals and acting in a manner Consistent with achievement of those goals.

(c) Individuals choose the alternative for which they believe the net gains to be the greatest.

(d) No matter what the Circumstances, individual choice always involves a trade-off.

40. An Example of 'Positive' Economic analysis would be:

(a) An analysis of the relationship between the price of food and the quantity purchased.

(b) Determining how much income each person should be guaranteed.

(c) Determining the fair" price for food.

(d) Deciding how to distribute the output of the Economy.

Use the figure below to answer questions 41 - 42.

Capital Goo

41. Which point on the PPF shows a "Productively efficient" level of output ?

(a) A

(b) B

(c) C


42. Which of the following clearly represents a movement towards greater productive efficiency ?

(a) A movement from point A to point B.

(b) A movement from point C to point D.

(c) A movement from point F to point C.

(d) A movement from point E to point B.

43. The branch of economic theory that deals with problem of allocation of resources is.

(a) Micro - Economic theory

(b) Macro - Economic theory

(c) Econometrics


44. Use the following table to answer the following question:

Production possibilities: A B C D E F

Good x: 0 1 2 3 4 5

Good y: 60 56 48 36 20 0




What is the opportunity cost of increasing Good X's production from 2 to 4 units =?

(a) 28 Units of y

(b) 20 Units of y

(c) 4 Units of y

(d) 48 Units of y

45. Government has no control over price fluctuation in ___________economic system.

(a) Mixed Economy

(b) Command Economy

(c) Market Economy


46. Which economist is titled as the "Father of Economics" ?

(a) A.C. Pigou

(b) J.B. Say

(c) Paul A. Samuelson

(d) Adam Smith

47. Which one from the below is the characteristic of capitalistic economy?

(a) Collective Ownership

(b) Welfare Motive


(d) Right of private property.

48. Merit goods are those consumption of which benefits :

(a) Only consumers

(b) Non - consumers

(c) Not only consumers but also non - consumers

(d) Lower income group.

49. Consumer sovereignity is a feature of:

(a) Capitalist economy

(b) Socialist economy

(c) Mixed economy

(d) None of these.

50. Normative approach of economics is presented by:

(a) Marshall

(b) Robbins

(c) Adam Smith

(d) Samuelson.

51. Balance regional development is a feature of:

(a) Capitalist Economy

(b) Mixed Economy

(c) Socialistic Economy

(d) None of these.




52. Which economics explains economic phenomenon according to their cause and effects ?

(a) Applied

(b) Positive

(c) Empirical

(d) All the above.

53. Which of the following is related to Micro Economics ?

(a) National Income

(b) Inflation in the Economy

(c) Income from railways

(d) Problem of unemployment.

54. Which economist emphasized the positive aspects of science ?

(a) Alfred Marshall

(b) A.C. Pigou

(c) Robbins

(d) Paul A. Samuelson.

55. Large production of goods would lead to higher production in future.

(a) Agricultural goods

(b) Consumer goods

(c) Capital goods

(c) All the above.

56. In which type of economy do consumers and producers make their choices based on the market forces of demand and supply ?

(a) Command Economy

(b) Controlled Economy

(c) Open Economy

(d) Market Economy

57. Last stage of recession is called:

(a) Depression

(b) Recovery

(c) Slowdown

(d) All of these.

58. In the present global, liberal and knowledge based environment, the understanding of________has become quite indispensable.

(a) Economic Growth

(b) Economic Development

(c) Economic Issues

(d) None.

59. The principle fact about economics to be remembered always is that, it is a________

(a) Normal science




(b) Ordinary science

(c) Social science

(d) Both (a) & (b)

60. An economy is the________through which individuals in the society coordinates their diverse wants and desires -

(a) Economic system

(b) Economic Institution


(d) None.

61. Which is not the two - fold course of action which every society and its components adopts.

(a) To increase the availability of resources by their own efforts.

(b) To maximize the use of available resources in best possible economical manner


(d) None of these.

62. Economics was originally introduced as________

(a) Science of state craft

(b) Science of coins

(c) Art and craft

(d) None of these

63. According to Smith, the use of labour should be primarily for________

(a) Unproductive purposes

(b) Productive purposes


(d) None of these

64. Ignoring the higher values of life and reducing it to dismal science, it is related with whose definition

(a) A. Marshall

(b) L. Robins


(d) Adam Smith

65. Rational decision making requires that

(a) One's choices to be arrived at logically and without error

(b) One's choices should be consistent with one's goal

(c) One's choices never vary.




(d) One makes choice that do not involve trade-off

66. "Economics is a study of man in the ordinary business of life, this is written by____

(a) Adam Smith

(b) A.C. Pigou

(c) A Marshall

(d) L. Robbins

67. "The range of our inquiry becomes restricted to that part of social welfare that can be brought directly or indirectly into relation with measuring rod of money". This definition was written by________

(a) Adam Smith

(b) Alfred Marshall

(c) A.C. Pigou

(d) Paul. A. Samuelson

68. Marshall's welfare definition is restrictive in the sense that it

(a) Excludes economies, which were not guided by monetary and market forces.

(b) Excludes that part of human welfare which is derived from material goods and services and not

from social and political aspects of life.


(d) None of these

69. Any problem marked by the scarcity of means and multiplicity of ends becomes an economic problem known as__

(a) Ipso Facto

(b) Ispo Facto

(c) Iso Facto

(d) None of these

70. Economics according to Lionel Robbins is a

(a) Normative science

(b) Applied Science

(c) Positive science

(d) Experimental science.

71. Samuelson emphasised upon the twin themes of economics__

(a) Scarcity and Efficiency

(b) Scarcity and Growth

(c) Growth and Efficiency

(d) None of these




72. A study of how an increase in the corporate income tax rate will affect the nation's unemployment is example of _

(a) Macro - Economics

(b) Descriptive Economics

(c) Micro - Economics

(d) Normative Economics

73. Economic goods are considered scarce resources because they__

(a) Cannot be increased in quantity.

(b) Does not exist in adequate quantity to satisfy the social requirement

(c) Are of primary importance in satisfying social requirements.

(d) Are limited to man made goods.

74. "Complete neutrality between end is however neither feasible nor desirable", it's the part of -

(a) Economics as an art

(b) Positive economics or science

(c) Normative science

(d) Micro Economics

75.________is also described as price and value theory__

(a) Macro Economics

(b) Development Economics

(c) Micro Economics

(d) Health Economics

76. PPC is given by__

(a) Adam Smith

(b) L. Robins

(c) Paul. A. Samuelson

(d) J.B. Say

77. A capitalist economy uses________as the principle means of allocating resources.

(a) Demand

(b) Supply

(c) Efficiency

(d) Prices

78. In a free market economy, the allocation of resources is determined by—

(a) Votes taken by consumers

(b) A central planning authority




(c) Consumer Preference

(d) The level of profits of firms

79. In a free market economy, when consumers increases their purchases of a good and the level of ' exceeds________, then prices tend to rise.

(a) Demand, supply

(b) Supply, demand

(c) Prices demand

(d) Profits, supply

80. An economy achieves "Productive efficiency" when__

(a) Resources are employed in their most highly valued uses.

(b) The best resources are employed.

(c) The total number of goods produced is greatest.

(d) Goods and services are produced at least cost & no resources are wasted.

81. If PPF is linear i.e. a straight line, which one of the following is correct__

(a) As the production of good increases, the opportunity cost of that good rises.

(b) As the production of a good increases, the opportunity cost of that good falls.

(c) Opportunity cost remains constant

(d) The economy is not at full employment when operating on PPF.

82. Which of the following is a reason for the curvature or bowed-out shape of the PPC ?

(a) Falling unemployment as we move along the curve.

(b) The economy having to produce less of one good in order to produce more of another good

(c) Opportunity cast increases as more of a good is produced.

(d) None of these.

83. Which is one of the reason for negative slope of PPC?

(a) The inverse relationship between the use of technology and the use of natural resources.

(b) Scarcity at any point, we have limited amount of productive resources.

(c) Resource specialisation

(d) Increasing opportunity cost.

84. 'Economics is what economist do' is given by__

(a) Jacob Viner

(b) Henry Smith

(c) Pigou

(d) Paul. A. Samuelson.




85. PPC is also known as__

(a) Demand curve

(b) Supply curve

(c) Indifference curve

(d) Transformation curve

86. 'What ought to be' or' what should be the thing’, it's the nature of-

(a) Positive Economics

(b) Normative Economics

(c) Positive Art

(d) Normative Art.

87. Which market is also known as 'frozen market'__

(a) Capitalist economy

(b) Socialist Economy

(c) Mixed economy

(d) None of these.

88. Which is not one of the demerits of capitalist economy?

(a) Inequalities of income and wealth

(b) Difference in economic opportunities

(c) Wastage of resources

(d) Immobility of choice of working.

89. Economic Boom/Inflation is a situation where________

(a) National output falls

(b) National output rises

(c) Growth Rate is 2.5%

(d) Both (b) and (c).

90. "Prices rises due to which factor of production?"

(a) Demand pull inflation

(b) Cost push Inflation

(c) Both(a)&(c)

(d) None of these.

91. An economic slump is a situation when there is__

(a) A sudden fall in prices or demand

(b) A sudden rise in prices or demand

(c) A sudden fall in national output.




(d) Both (a) and (c)

92. Economics means__

(a) Management

(b) Business Management

(c) House Management


93. Human wants may be classified into—

(a) Economic wants

(b) Nor,-economic wants

(c) Either (a) or (b)

(d) Both (a) and (b).

94. "If economists were laid end to end, they would not reach a conclusion". This definition is given by__

(a) George Bernard Marshall

(b) George Bernard Shaw

(c) Adam Smith

(d) A. L. Ligou.

95. "Principles of economics" was published by Alfred Marshall in the year__

(a) 1890

(b) 1776

(c) 1900

(d) 1756

96. According to Alfred Marshall, end is ________

(a) Wealth

(b) Human welfare

(c) Growth

(d) Development

97. "Economics as a science of scarcity and choice". This definition of economics was given by-

(a) Alfred Marshall

(b) Adam Smith

(c) A.C. Pigou

(d) Lionel Robbins

98. "An essay on the nature and significance of economic science". This book was published in which year ?




(a) 1776

(b) 1890

(c) 1932

(d) 1756

99. The Book "Economics: An Introductory Analysis" was published in which year?

(a) 1890

(b) 1948

(c) 1776

(d) 1932

TOO. For whom to produce is basically the problem of -

(a) Distribution of produced goods

(b) Distribution of produced services


•

(d) Allocation of resources

101.________is the locus of all such combination of two commodities which can be produced in a country with its given resources and technology?

(a) Production possibility curve

(b) Marginal rate of substitution



102.________is the value of alternative foregone in order to have some thing else

(a) Opportunity Curve

(b) Production Possibility Curve

(c) Indifference Curve

(d) Opportunity cost.

Answer

1 (d)' 2 (d) 3 (d) 4 (d) 5 (b) 6 (c)

7 (d) 8 (c) 9 (d) 10 (b) 11 (b) 12 (c)

13 (c) 14 (c) 15 (d) 16 (c) 17 (b) 18 (c)

19 (b) 20 (b) 21 (a) 22 (b) 23 (b) 24 (a)

25 (b) 26 (a) 27 (d) 28 (c) 29 (c 30 (c)

31 (c) 32 (d) 33 (c) 34 (a) 35 (d) 36 (c)

37 (b) 38 (a) 39 (c) 40 (a) 41 (d) 42 (c)




43 (a) 44 (a) 45 (c) 46 (d) 47 (d) 48 (c)

49 (a) 50 (a) 51 (b) 52 (b) 53 (c) 54 (c)

55 (c) 56 (d) 57 (a) 58 (c) 59 (c) 60 (b)

61 (d) 62 (a) 63 (b) 64 (d) 65 (b) 66 (c)

67 (c) 68 (a) 69 (a) 70 (c) 71 (a) 72 (d)

73 (b) 74 (b) 75 (c) 76 (c) 77 (d) 78 (c)

79 (a) 80 (d) 81 (c) 82 (c) 83 (b) 84 (a)

85 (d) 86 (b) 87 (b) 88 (d) 89 (d) 90 (b)

91 (d) 92 (d) 93 (b) 94 (a) 95 (a) 96 (b)

97 (d) 98 (c) 99 (b) 100 (c) 101 (a) 102 (d)

Questions of December 2012

1. The definition of Economics as a Science of development & growth with the twin objectives of scarcity and efficiency, was given by:—

(a) Paul A. Samuelson

(b) A.K. Sen

Lionel R. Robbins

(d) Adam Smith

2. One of the following statements is not a positive statement—

(a) To check inflation, the RBI should raise the bank rate

(b) Inflation has impact on consumer price index

(c) Unemployment is the major cause of widespread poverty

(d) An increase in the income of the households results in a rightward shift in the demand curve.

3. Microeconomics does not study:—

(a) The level of output that an individual firm produces during a period of time

(b) The determination of wage rate by the automobile industry during a given period

(c) The determination of causes that result in hyper inflation in an economy.

The determination of equilibrium output of an individual firm in a perfectly competitive market.

4

In the above figure, the point R represents—

(a) The best level of output in the given situation




(b) The equilibrium level of output in the given economy

(c) The full utilization of resources in the economy

(d) The under-utilization of resources in the economy.

5. Given the amount of available resources in the economy as, demonstrated in figure above, if the technology to produce computer monitor improves, so that with the help of given resources more monitors can be produced, the production possibility curve__________.

(a) Will remain unchanged

(b) Will shift to the left

(c) Will shift to the right

(d) Will form the intercept at point A, but the intercept at point B will shift to the right.

6. A capitalist economy is by and large—

(a) A closed economy

(b) A free market economy

(c) A centrally controlled economy

(d) An economy in which a government neither collects any taxes nor incurs any expenditure.

7. Match the following:

Features Stage of Business Cycle

(i) Rising employment and real wages (A) Recession

(ii) Fall in the rate of growth

(b) Boom

(iii) Fall in the level of real national

(c) Slowdown

output

(iv) Setting in of the rising trend of

(d) Recovery

national outputs

(a) (i) (B), (ii) (C), (iii) (A), (iv) (D)

(b) (i) (A), (ii) (B), (iii) (B), (iv) (D)

(c) (i) (D), (ii) (C), (iii) (C), (iv) (A)


8. After your Board Examination, you could have got a job that would pay you Rs.10,000 per month. Instead you go in for further studies spending Rs.8,000 per month on books, fees, etc. The opportunity cost of higher studies for you is—

(a) Rs.8,000

(b) Rs.10,000

(C) Rs.2,000

(d) Rs.18,000

9. A country discovered a huge stock of gold lying buried in deep earth. It begins to mine out the gold and also finds a foreign buyer. Graphically, this position would be shown as—

(a) Downward shift of production possibility curve

(b) Upward shift of production possibility curve




(c) Downward movement on a given production possibility curve

(d) Upward movement on a given production possibility curve.

10. Macroeconomics came into picture after the publication of the book The General Theory of Employment, Interest and money' which was written by

(a) Alfred Marshall

(b) Manmohan Singh

(c) J.M. Keynes

(d) Kaushik Basu

Solutions of December 2012

1. (a) The definition of Economics as a science of development and growth with the twin objective of scarcity and efficiency was given by Paul A Samuelson as he described his objective like.

"Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in future, among various persons or group in society. It analysis cost and benefits of improving patterns of resource allocation".

2. (a) "To check inflation, the RBI should raise the bank rate" is not a positive science

As normative science, economics involves value judgement. It is prescriptive in nature and described 'what ought to be' or 'what should be the things'. Thus, option A is a normative statement.

3.

(c) Micro economics does not study the determination of causes the result in hyper inflation in an economy as Micro economics may be defined as that branch of economic analysis which studies the economic behaviour of the individual unit.

4. (d)

Point R in the above figure explains the under utilization of resources in the economy. In this situation country needs to increase the production of computer Monitor and LED, so as to reach the point on the curve AB. Point R shows inefficient utilization of resource.

5.

(d) Given the amount of available resources in the economy as demonstrated in figure above, if the technology to produce computer monitor improves, so that with the help of given resources more monitors can be produced, the production possibility curve will form the intercept at point A, but the intercept at point B will shift to the right




BC is the amount of production of computer monitor that has increased.

6.

(b) A capitalist economy is by and large a free market economy. A capitalist economic system in one which is characterized by free markets and the absence of government intervention in the economy. Capitalism derives its names from the fact that in this system, means of production are not owned by the government.

7. (a) Boom:- It means rising employment and real wages. Boom occurs when national output is using strongly at a rate faster than the trend rate of growth.

Slowdown:- It means fall in rate of growth. A slowdown occurs when the rate of growth decelerates but national output is still rising.

Recession:- It means fall in the level of real national output. A national output declines leading to contraction in employment, incomes and profit.

Recovery:- It means setting in of the rising trends of national outputs. A recovery occurs when real national output picks up from the trough reached at the low point of recession.

8.(d) After your Board Examination you could have got a job that would pay you Rs.10,000 per month. Instead you go in for further studies spending Rs. 8,000 per month books, fees etc. The opportunity cost of higher studies for you is Rs.18,000. Opportunity cost is the value of the alternative foregone in order to have something else.

9.(c) A country discovered a huge stock of gold lying buried in deep earth.

It begins to mine out the gold and also finds a foreign buyer. Graphically this position would be shown as downward movement on a given possibility curve. Any point on PPC shows the commodities which can be produced in a country with its given resources and technology.

10.(c) JM Keynes wrote the book The General Theory of Employment, Interest and Money' which brought Macro economics into the

picture.

Questions of June 2013


X. Growth oriented definition of (i) Normative statement

Economics

Y. Government should reduce taxes (ii) India to promote growth

Z. Supply of a commodity is less (iii) Paul Samuelson than the quantity demanded at a zero price

W. Second largest populated country (iv) Scarcity





(a) X(iii); Y(i); Z(iv); W(ii)

(b) X(iv); Y(iii); Z(ii); W(i)

(c) X(i); Y(ii); Z(iii); W(iv)

(d) X(ii); Y(iii); Z(iv); W(i).

2. Laissez faire refers to_______ with no or little intervention by the government in economic activities. Which one of the following is the correct option to fill in the blank space?

(a) Centrally planned economies

(b) Controlled socialist economies

(c) Free market economies

(d) Mixed socialist economies.

3. Marshall's views on the nature of economics were supported by:

(a) Lionel Robbins

(b) Adam Smith

(c) A.C. Pigou

(d) Paul Samuelson.

Solutions of June 2013

1. (a) Paul Samuelson give the growth oriented definition of economics-"Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in the future, among various persons or groups in society. It analysis cost and benefits of improving patterns of resource allocation".

Normative Statements are based on value judgements. It describes what ought to be or what should be the things. E.g.-Government should reduce the terms to promote growth.

Scarcity means that the supply of a commodity is less than the quantity demanded at zero price.

India is a country with the second largest population in the world.

2.(c) In free market economics, it is decided that working of the selected segment of the economy should be guided by free market economies. The net effect of this arrangement is expected to be beneficial for the society as a whole.

So, Laissez Faire refer to free market economies with no or little intervention by the government in economic activities.

3.(c) Marshall's definition is an admirable example of economics as a science of material well - being Pigou also emphasized on social welfare but only that part of it which can be related with measuring rod of money.

Thus, both Marshall's and Pigou's definitions of economics take into account the aspect of social welfare.


1. Among the following, which of the statement is reflecting both positive and normative

economics —

(a) If the general price level goes up, borrowers gain but lenders gain more

(b) Inflation hurts the poor more but they can find employment opportunities

(c) Inflation hurts the poor class more; therefore, the government should arrange to supply commodities at subsidised rates to this section of the society

(d) If the government supplies luxurious goods at cheaper rates, demand for such goods may fall.




2. An economic problem arises primarily due to scarcity of resources. Scarcity of resources is best

reflected in the market supply of —

W. Wheat and rice

X. Sand at sea shore

Y. High-brand jewellery

Z. Free air.

Correct option is —

(a) WX

(b) XZ

(c) WY

(d) YZ.

3. Indian economy, at present juncture can be best represented as a —

(a) Mixed socialist economy

(b) Mixed capitalist economy

(c) Purely capitalist economy

(d) Perfectly competitive market economy.


1.(c) The options A, B and D are statements of only positive economics as it reflects - "What is ?" whereas option C is the statement of both positive and normative economics as it reflects both

"What is?" and "What should be?"

Thus, option c is correct.

2.(c) The problem of scarcity of resources arises when the resources are limited and the wants are unlimited.

Amongst the given options, sand at sea shore and free air both are available in unlimited quantity. Thus, scarcity of resources is best reflected in the market supply of -

- wheat and rice

- high brand jewellery.

Therefore, the answer is WY.

3. (a) In the present juncture, Indian economy can be best represented as a mixed socialist economy because currently the major powers of the country are in Government hand and even the power which have been distributed to the private sector are greatly affected by all the Government's decisions.


1. What is the effect of economic slow down on employment level?

(a) Level of unemployment increases

(b) Level of unemployment decreases

(c) Employment opportunity is unaffected


2. Who is the writer of the book 'The Economics of Welfare"?

(a) Alfred Marshall

(b) Lionell Robinns





(d) Pigou

3. In which direction PPC moves when technology improves : -

(a) Shift towards right

(b) Shift towards left

(c) No movement

(d) Shift upwards

4. Consumer sovereignty is found in which type of economy?

(a) Sociolistic Economy

(b) Mixed Economy

(c) Capitalistic Economy

(d) None of these

5. AC Pigou is related with material welfare definition.

(a) True

(b) False

(c) Partly True

(d) Partly False

6. Word 'Oikonomikos' is originated from which language?

(a) Greek

(b) Latin

(c) German

(d) French

7. "Principles of Economics" was given in which year?

(a) 1776

(b) 1890

(c) 1932

(d) 1948

8. When national output falls down, what does it mean?

(a) Economic Boom

(b) Economic Slowdown

(c) Economic Recession

(d) Economic Recovery

9. Wealth definition is given by-

(a) Alfred Marshall

(b) Paul Samuelson

(c) Lionnel Robbinson

(d) Adam Smith

10. When any point lies outside the PPC curve it means a situation of-

(a) Over utilization

(b) Under utilization

(c) Both (a)&(b)





11. If income and demand both has increased then it is an-

(a) Economic boom

(b) Economic slowdown

(c) Economic recovery

(d) economic recession

12. Inequalities and income & wealth is in which type of economy?

(a) Capitalist

(b) Socialist

(c) Mixed

(d) None

13. _____is the value of alternative forgone in order to have something else.

(a) Opportunity Cost

(b) Incremental Cost

(c) Indifference Curve

(c) None of these


1.(c) In case of economic slowdown, the national output rises but at a slower rate without reaching recession. It leads to no change in employment. Hence, the effect of economic slowdown on employment level is that employment opportunity is unaffected.

2.(d) Pigou defined economics in terms of material welfare. He published his book 'The Economics of Welfare" is 1920.

3. (a) If the technology is improved, the production will increase and hence PPC will shift rightward.

4.(c) In capitalistic economy, all economic activities are guided by market forces. Producers produce only those goods and services which are demanded by consumers in the market. The entire economy operates to meet the need and preferences of the consumers. This characteristic of capitalism is known as that of consumer sovereignity.

5. (a) Economics is the study of that part of human behaviour which could be measured in money terms and which could be attributed to a desire for economic growth under this definition of material welfare, the emphasis was given by two economist namely Alfred Marshall and A.C. Pigou. Thus it is true that Pigou is related with material welfare definition.

6. (a) The word Economics originates from the Greek word "Oikonomikos" which means - Oikos - House and Nomos - Management i.e. economics is house management.

7.(b) Principal of Economics was the book of Alfred Marshall in which he describes economics as a study of mankind in the ordinary business of life. This book was published in the year 1890.

8.(c) When national output fall down, i.e. the period when the rate of economic growth is

negative is termed as recession, Negative output declines leading to unemployment, contraction is projects and income. It is also called as Economic Recession.

9.(d) Adam Smith identified wealth as welfare. He assumed that; the wealthier a nation, the happier its citizens are.




10.(d) In case the resources are limited any point outside the PPC, the country cannot choose it as

it is unachievable with the present resources. Hence, none of the above condition represents the situation of PPC curve.

11. (a) Economic boom refers to a situation when national output rises' at a faster rate than trend rate of growth.

It leads to:

(a) Rise in demand

(b) Rising employment and output

(c) Rising demand for imports

(d) Rise in profits and revenue

(e) Danger of demand pull and cost push inflation.

Thus, in case income and demand both rises, it is a case of economic boom.

12. (a) Capitalist economy is a free economy where government interfaces is not found which cads to inequalities of income and wealth.

13 (a) Opportunity Cost is the cost of the opportunity forgone. It is the next best alternative forgone, since the resources are limited hence growing more rubber will require forgoing some units of wheat and vice versa.


1. According to Marshall, "wealth acted as only means to attain ends & the wealth should not be

treated as an end in itself".

Here Marshall used the word end for:

(a) Economic welfare concept

(b) Welfare concept

(c) Human welfare concept

(d) Material welfare concept

2. What is the nature of the concept of opportunity cost?

(a) Subjective

(b) Objective

(c) Both a & b

(d) Can't say

3. Economics is considered as a science because it studies the relationship between________of economic phenomena.

(a) Price and Value

(b) Cause and Effect

(c) Profit and Loss

(d) Export and Import

4. Which of the following graph shows all the combinations of goods and services that can be

produced if all of society's resources are used efficiently?

(a) Demand Supply curve

(b) Production Possibility curve

(c) Lorenz Curve





5. Which of the following is a characteristic of capitalist economy?

(a) Equality of wealth and income

(b) Inequality of wealth and income

(c) Equal opportunity of earning wealth & income

(d) Can't say


1. (c) According to Marshall "Wealth acted as only means to attain ends and the wealth should not be treated as an end in itself. Here Marshall used the word end for "Human Welfare”. He expressed economics as-study of mankind in the ordinary business of life, it examines that part of individual and social action which is most closely connected with the attainment and use of material requisites of well being. v

2. (a) Opportunity cost is the value of alternative foregone in order to have something else. The evaluation of choices and opportunity costs is subjective. Such evaluation helps a country to decide how to best allocate its available and limited resources according to its opportunity cost.

3.(b) Economics as a Science:- A subject is considered science if:-

• It is a systematised body of knowledge which studies the relationship between cause and effect.

• It is capable of measurement.

• It has its own methodological apparatus.

• It should have the ability to forecast.

• If we analyse economics, we find that it has all the features of science.

4.(b) A production-possibility curve [PPC] or "transformation curve" is a graph that shows the different rates of production of two goods that an individual or group can efficiently produce with limited productive resources.

5.(b) Characteristics of Capitalist Economy:

(i) Right to private property.

(ii) No government interference [laissez faire]

(iii) Profit Motive.

(iv) Price determination through price/market mechanism.

(v) Competition.

(vi) Use of money and credit [capitalism necessitates an elaborate system of financing its economic activities which involves the use of money and credit.

(vii) Consumer sovereignty.

So, option

(b) is the correct answer i.e. Inequality of wealth &

Income is a characteristics of Capitalist Economy.


1. Who authored the famous book titled as "The Economics of welfare" which was published in 1920?

(a) David Ricardo

(b) Alfred Marshall

(c) J. B. Say

(d) A.C. Pigou.




2. In a Capitalist economy, who decides what to produce and for whom?

(a) Government

(b) Freely decided by Industry

(c) Society

(d) Can't say.

3. Economics is considered as a science because it studies the relationships between____________of economic phenomena.

(a) Cause and effect

(b) Price and value

(c) Profit and loss

(d) Export and import.

4. Which of the following graph shows all the combinations of goods and services that can be produced it all of the society's resources are used efficiently:

(a) Demand Supply Curve

(b) Production Possibility Curve

(c) Lorenz Curve


5. In which of the following stage of economic cycle both employment and output expand and level of aggregate demand for goods and services is high?

(a) Economic Recession

(b) Economic Boom

(c) Economic Recovery

(d) Economic Slowdown.


1. (d) A. C. Pigou, published his book 'the economics of welfare' in 1920.

2.(b) Capitalist economy is one which is characterised by free market and absence of government intervention in economy. The areas of private enterprise firms are free to decide what to produce and for whom.

3. (a) Economics is considered as a science because it studies the relationship between cause and effect of economic phenomena.

4.(b) Production possibility curve is the locus of all such combination of two commodities which can be produced in a country with its given resources and technology.

5. (b) Boom occurs when national output is rising strongly at a faster rate than the trend rate of growth. In boom condition output and employment are both expanding and the level of aggregate demand for goods and services is very high.


1. Micro are more related to internal environment than:

(a) Micro

(b) Macro

(c) External

(d) Can't say

2. Economic development will lead-to except which of the following:




(a) Increase in per capita income

(b) Unemployment

(c) Decline in unemployment


3. During the slowdown of economy:

(a) GDP is decreasing

(b) GDP is increasing

(c) GDP is increasing at a slower rate


4. Who among the following gave the definition of development and growth:

(a) Adam Smith

(b) Paul A. Samuelson

(c) Lionel Robbins

(d) Alfred Marshall

5. Opportunity cost comes under which:

(a) individual

(b) Group want

(c) Government policy


6. A recession is a period of:

(a) decline in aggregate output

(b) decline in unemployment



7. What is another name for soft lending?

(a) Recession

(b) Economic slowdown

(c) Revival



1.(b) Micro economics is considered to be the basic economics. It may be defined as that branch of economic analysis which studies the economic behaviour of the individual unit. It is a study of one particular unit, whereas the macro economics is a study in aggregates. Hence, micro economics are more related to internal environment than macro economics.

2.(d) Economic development will lead to the following:

(i) Increase in per capita Income

(ii) Increase in National Income

(iii) Decline in unemployment

(iv) Increased utilization rate of existing resources.

Thus, options both (a) & (c) are correct.




3.(c) A slowdown occurs when the rate of growth decelerates, but national output is still rising.

The economy continues to grow at a slower rate without falling into outright recession. So, in slowdown GDP is increasing at a slower rate.

4.(b) The definition of economics as a science of development and growth with the twin objective of scarcity and efficiency was given by Paul. A Samuelson as he described his objective like.

"Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in future, among various persons or group in society. It analysis cost and benefits of improving patterns of resource allocation."

5. (a) Opportunity cost is the value of alternative foregone in order to have something else. This value is unique for every individual. Hence, it comes under individual want.

6. (a) A recession means a fall in the level of real national output i.e. a period when the rate of economic growth is negative. National output declines, leading to a contraction in employment, income and profits.

7 (b) A slowdown occurs when the rate of growth decelerates but national output is still rising. If the economy continues to grow without falling into outright recession, this is known as soft-lending.


1. Which of the following is one of the main reasons for three central problems of economy?

(a) Unavailability of Demand Level

(b) Uncertainty of consumer preferences

(c) Scarcity of resources

(d) None is applicable.

2. Which of the following markets denote capitalist economic system?

(a) Communist market

(b) Controlled market

(c) Free market

(d) Monopoly market.

3. The central point in Adam Smith’s definition of Economics is:

(a) Scarcity and choice

(b) Wealth creation

(c) Growth aspects

(d) Wealth dimension.

4. The key issues which are studied under macroeconomics includes:

(a) Unemployment

(b) Inflation

(c) Economic growth.

(d) All are applicable.

5. In which of the following stage of economic cycle, both employment and output expand and level of aggregate demand for goods and services is high?

(a) Economic Boom




(b) Economic Recession

(c) Economic Recovery

(d) Economic Slowdown.


1. (c) The problem of scarcity of resources which arises before an individual consumer also arises collectively before an economy and this problem of scarcity of resources gives rise to the following central problems of economy:

(i) What to produce ?

(ii) How to produce ?

(iii) For whom to produce?

2. (c) A capitalist economic system is one which is characterized by free markets and the absence of government intervention in the economy,

3. (b) During the 181h and the early part of 19th century, Adam Smith, considered to be the founding father of Modern Economics, alongwith other economists like J. B. Say and Walker defined economics as the science of wealth. The central point in Smith's definition is wealth creation. He identified wealth with welfare.

4. (d) Macroeconomics may be defined as that branch of economic analysis which studies behaviour of not one particular unit, but of all the units combined together. Macroeconomics is a study in aggregates.

Thus, it studies unemployment, inflation and economic growth.

5. (a) Economic boom has the following characteristics:

→ Strong and rising level of aggregate demand, driven by fast growth of consumption

→ Rising employment and real wages

→ High demand for imported goods and services

→ Government tax revenues will be rising quickly

→ Company profits and investment increase

→ Increased utilization rate of existing resources

→ Danger of demand-pull and cost-push inflation in the economy overheads.


1. Which of the following is not a central economic problem?

(a) What to produce?

(b) How to produce?

(c) For whom to produce?

(d) Where to produce?

2. Normative science includes which of the following?

(a) ethics & morale

(b) effect relationship between variables

(c) belief

(d) value judgments

3. PPC Approach was given by:

(a) George Bernard Shaw




(b) Alfred Marshall

(c) Professor Samuelson

(d) Professor Robbins

4. Boom is characterized by:

(a) Inc in growth rate & Dec in output -

(b) Dec in growth rate & Inc in output

(c) Inc in growth rate & Inc in output

(d) Dec in growth rate & Dec in output

5. Select the incorrect one:

(a) What to produce

(b) How to produce

(c) When to produce

(d) For whom to produce

6. Alfred Marshall published his book” Principle of Economics” in the year:

(a) 1880

(b) 1890

(c) 1885

(d) 1881

7. Who gave the definition of welfare?

(a) A.C. Pigou

(b) Adam Smith

(c) Alfred Marshall

(d) David Ricardo

8. Economics were laid end to end, they would not reach a conclusion?

(a) Henry Fayol

(b) Adam Smith

(c) George Bernard Shaw

(d) Marshall


1. (d) The problem of scarcity of resources which arises before an individual consumer also arises collectively before an economy. On account of this problem and economy has to choose between the following:

(i) Which goods should be produced and in how much quantity?

(ii) What technique should be adopted for production?

(iii) For whom goods should be produced?

These three problems are known as the central problems or the basic problems of an economy. This is so because all other economic problems cluster around these problems.

2. (d) Normative science, economics involves value judgments. It is prescriptive in nature and described 'what ought to be' or ‘what should be the things’. For example, the questions like what should be the level of national income, what should be the wage rate, how much of national




product be distributed among people - all fall within the scope of normative science. Thus,

normative economics is concerned with welfare propositions.

3. (c) Professor Samuelson used the concept of the production possibility curve to explain the economic problem of a society. A production possibility curve is the locus of all such combinations of two commodities which can be produced in a country with its given resources and technology.

4. (c) A boom refers to a period of increased commercial activity within either a business, market, industry or economy as a whole. For an individual company, a boom means rapid and significant sales growth, while a boom for a country is marked by significant GDP growth. In the stock market, booms are associated with bull markets, whereas busts are associated with bear markets. Hence, option (c) is correct.

5. (c) The three problems are known as the central problems or the basic problems of an economy. This is so because all other economic problems cluster around these problems. The below are the problems:

1. What to produce?

2. How to produce?

3. For whom to produce?

6. (b) Alfred Marshall published his book, "Principles of Economics” in 1890, where he provided his definition of economics as “Political economy or economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-beings. Thus, it is on the one side, a study of wealth; and on the other, and more important side, a part of the study of man.

7. (c) Marshall’s definition is considered to be material-welfare centered definition of economics. He laid emphasis from wealth to material welfare. According to him, wealth acted only as means to attain the ends and the wealth should not be treated as an end in itself. According to Marshall, “End is the human welfare.” Marshall was the pioneer of welfare thought.

8. (c) This definition is given by George Bernard Shaw. According to him, it is very difficult to define economics because economics is very dynamic subject and there exists no single definition to the

subject. It would not be very inappropriate to quote that there exist as many definitions of economics as there are number of economists in this universe. Each definition has an element that cannot be disregarded so can the definition be not discarded. As a result, we come across a large number of definitions of economics, which appear to differ from each other.

QUESTIONS OF DECEMBER 2017

1. Name the Economist whose definition of Economics is considered to be material welfare control:

(a) A.C. Pigou

(b) David Ricardo

(c) Adam Smith

(d) Alfred Marshall.

2. Micro economics is not concerned with the price output decisions by:

(a) Infosys

(b) Reliance

(c) Food Corporation of India

(d) Indian Economy

3. Which of the following would result in inward shift of the Production Possibility Curve (P.P.C.)?




(a) Increase in reserves of oil in the country

(b) Earthquake destroying resources of the country

(c) Increase in jobs in government projects

(d) Improvisation of machinery

4. Which of the following markets denote capitalist economic system?

(a) Communist market

(b) Controlled market

(c) Monopoly market

(d) Free market

SOLUTIONS OF DECEMBER 2017

1. (d) The Definition of Alfred Marshall is considered to be material

Welfare Control.

2. (d) Micro economics is the branch of economic analysis that studies the

behaviour of individual economic unit which may be a person, an individual house or a firm.

3. (b) Production possibility curve is the laws of all possible combination

of production which is possible with the given resources of an economy. Any activity causing destruction of resources is will surely lead to inward shift of the production possibility curve.

4. (d) Capitalist Market is characterised by presence of free market.

QUESTIONS OF JUNE 2018


X. Growth oriented definition of Economics

(i) Normative statement

Y. Government should reduce taxes to promote growth

(ii) India

Z. Supply of a commodity is less than the quantity demanded at a zero price

(iii) Paul Samuelson

W. Second largest populated country

(iv) Scarcity


(a) X (iii), Y (i), Z (iv), W (ii)

(b) X (iv), Y (iii), Z (ii), W (i)

(c) X (i), Y (ii), Z (Hi), W (iv)

(d) X (ii), Y (iii), Z (iv), W (i)




New Advances in technology result in more output of commodity - Y from given inputs. Which one of the ABOVE figures is best describing this situation? Correct options is:

(a) Figure -1

(b) Figure-2

(c) Figure - 3

(d) Figure - 4

3. Government should increase expenditure on social services to benefit the poor, which one of the following represent the correct reason that establishes that the above given statement is a normative statements:

(a) It states the facts as they are

(b) It passes a Value Judgement

(c) It states there is a direct relationship between public expenditure and poverty alleviation.

(d) It states that poverty can not be removed by market forces.

4. Laissez faire refers to with no or little intervention by the

government in economic activities. Which one of the following is the correct option to fill in the blank space?

(a) Centrally planned economies

(b) Controlled socialist economies

(c) Free market economies

(d) Mixed socialist economies.

SOLUTIONS OF JUNE 2018

1. (a) Growth oriented definition of economics given by Paul Samuelson.




Government should reduce tares to promote growth is Normative Statement. Supply of commodity is less than the quantity demanded at a zero price is deemed to scarcity.

India is Second largest populated country and first is China.

2. (c) New advances in technology result in more output of Commodity-Y

from given inputs shown by figure-3, as in figure -3 Commodity-Y shift towards the right. Which result in increase in output.

3. (b) Government should increase expenditure on social services to

benefit the poor is a normative statement as it passes value judgement.

4. (c) Laissez faire is also known as capitalist economy which refers to free market economies. Free market economies refers with no or little intervention by the Government in economic activities.





1......................is the want satisfying of a commodity.

(a) Indifference curve

(b) Utility

(c) Consumer surplus


2. Utility is a.......................entity and varies from person to person.

(a) Subjective

(b) Objective

(c) Restrictive


3. Marginal Utility Analysis theory is propounded by :

(a) Hicks and Allen

(b) Samuelson

(c) Marshall

(d) Robbins.

4. Indifference curve Analysis theory is pro-pounded by :

(a) Hicks and Allen

(b) Samuelson

(c) Marshall

(d) Robbins.

5. Utility is :

(a) Subjective

(b) Objective


(d) None of these

6. According to law of diminishing marginal utility, the extra satisfaction that the consumer derives from an extra unit of a good goes on................

(a) Increasing

(b) Falling

(c) Same

(d) Either (a) Or (b)

7. When TU is increasing at increasing rate MU is.........................

(a) Decreasing

(b) Constant

(c) Increasing

(d) Negative

8. The concept of cardinal measurability of utility was explained by -(a) Alfred Marshall




(b) Hicks and Allen

(c) Lionnel Robbins

(d) None of these.

9. Consumer Surplus = ?

(a) What a consumer is not ready to pay- what he actually pay.

(b) What a consumer is ready to pay - what he actually pay.

(c) What a consumer pay unwillingly - what he is ready to pay.

(d) What a consumer actually pay - What a consumer is ready to pay.

10. A set of indifference curves is called :

(a) Indifference Schedule

(b) Indifference Map

(c) Indifference Polygon


11. Higher indifference Curve signifies a ..................level of satisfaction.

(a) Same

(b) Lower

(c) Higher

(d) Different

12. Contraction of demand is the result of:

(a) Decrease in the number of consumers.

(b) Increase in the price of the good concerned.

(c) Increase in the prices of other goods.

(d) Decrease in the income of purchases.

13. Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price :

(a) Equal to one

(b) Greater than one

(c) Smaller than one

(d) Zero

14. In the case of an inferior goods, the income elasticity of demand is :

(a) Positive

(b) Zero

(c) Negative

(d) Infinite

15. A higher indifference curve shows a higher level of satisfaction. True/False

(a) True

(b) False

(c) Partly true

(d) None of these.




16. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of

the consumers of the goods to :

(a) Remain the same

(b) Increase

(c) Decrease

(d) Any of these

17. The law of demand is :

(a) A quantitative statement

(b) Qualitative statement

(c) Both a quantitative and a qualitative statement-

(d) Neither a quantitative nor a qualitative statement

18. All of the following are determinants of demand except :

(a) Tastes and preferences

(b) Quantity supplied

(c) Income

(d) Price of related goods

19. The consumer is in equilibrium at a point where the budget line :

(a) Is above an indifference curve

(b) Is below an indifference curve

(c) Is tangent to an indifference curve

(d) Cuts an indifference curve.

20. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:

(a) Zero

(b) Infinite

(c) Equal to one

(d) Greater than zero but less than one

21. A typical demand curve cannot be :

(a) Concave from below

(b) Convex from below

(c) Rising upward to right

(d) A straight line

22. When price decreases, quantity demanded increase it is known as

(a) Expansion of demand

(b) Contraction of demand

(c) Increase in demand

(d) Decrease in demand

23. Which of the following is not the exception to the law of demand?

(a) Giffen goods

(b) Level of income

(c) Future expectations




(d) Conspicuous necessities

24. When price elasticity is found between two points is known as :

(a) Arc elasticity

(b) Cross elasticity

(c) Point elasticity


25. Luxury goods are price ......................... while necessities are

price..............

(a) Inelastic Elastic

(b) Elastic, Inelastic

(c) Inelastic, Unitary

(d) Unitary, Elastic

26. The elasticity of substitution between two perfect substitutes is..........................

(a) Greater than O

(b) Infinity

(c) Less than infinity

(d) Zero

27. Slope of a demand curve is determined by -

(a) its own price

(b) factors other than its own price

(c) any of these

(d) None of these.

28. Demand for car decreases due to increase in price. It implies that car and petrol are.............

(a) Normal goods

(b) Inferior goods

(c) Substitute goods

(d) Complementary goods

29. Effect of change in the price of a product on the consumer's purchasing power is................

(a) Consumer surplus

(b) Income effect

(c) Substitute effect


30......................goods are those goods which are consumed together simultaneously.

(a) Competing goods

(b) Complementary goods

(c) Inferior goods

(d) superior goods




31. Larger the size of the population of a country or region.................is the demand for

commodities.

(a) Lesser

(b) Greater

(c) Same

(d) No effect

32. Demand can be defined as :

(a) Desire to buy

(b) Ability to pay

(c) Willingness to buy

(d) Desire and willingness to buy backed by adequate purchasing power.

33. Movement along the demand curve is due to the following reason :

(a) Change in the price of substitute goods

(b) Change in the price of the commodity

(c) Improvement in technology

(d) Both "a" and "c"

34. If two goods are perfect substitute for each other cross elasticity is...................

(a) Negative

(b) Positive

(c) Not defined


35. Budget line is also known as :

(a) Parallel line

(b) Price line

(c) Propensity line


36. Demand remains constant, decrease in supply means ---------- in equilibrium price.

(a) Falls

(b) Rise

(c) Both a and b


37. A vertical supply curve parallel to the Y-axis implies that the elasticity of supply is:

(a) Zero

(b) Infinite

(c) Equal to 1

(d) Greater than 0 but less than 1

38. Total expenditure method of measuring elasticity was formulated by -

(a) Alfred Marshall

(b) Hicks and Allen




(c) Ragnes Frisch

(d) Paul A Samuelson

39. For luxuries, the elasticity is....................

(a) Less than 1

(b) Equal to 1

(c) More than 1

(d) Zero

40. Cardinal utility approach can be measured in

(a) Algebric form

(b) Tabular form

(c) Numeric form

(d) Graphic form

41. Who criticized the concept of cardinal utility

(a) Pareto

(b) H.D. Dickinson

(c) Marshall

(d) Hicks and Aliens.

42. Supply Curve is_____ sloped, in direction from__

(a) Positively, upward to right

(b) Positively, downward negatively sloped

(c) Negatively, downward to left

(d) Negatively, left to right.

43. Which one of these is not an exception to the law of supply.

(a) Competition

(b) Monopoly

(c) Change in fashion

(d) Perishable goods

44. Excess supply of a commodity will cause________in its price

(a) Rise

(b) Consistency

(c) No effect

(d) Fall

45. In________, small change in price causes a greater change in quantity demanded

(a) Relatively elastic demand

(b) Perfectly elastic demand

(c) Unitary elastic demand


46. If the price for laptops increases, and relatively the demand for tablets increases then, laptops and tablets are

(a) Ceteris Paribus products




(b) Independent products

(c) Substitute products

(d) Complementary products

47. Higher indifference curve specifies________level of satisfaction.

(a) Same

(b) Higher

(c) Different

(d) Lower

48. Necessities are price________while luxury goods are________.

(a) Unitary, Inelastic

(b) Elastic, Unitary

(c) Elastic, Inelastic

(d) Inelastic, Elastic.

49. Budget line is also known as

(a) Propensity Line

(b) Price Line

(c) Parallel Line

(d) None of these.

50. Indifference curve approach is given by

(a) Hicks and Allen

(b) Alfred Marshall

(c) Pareto

(d) Paul A. Samuelson

51. In the utility approach__ explains__

(a) Hicks & Allen Consumer equilibrium

(b) Alfred Marshall Law of diminishing marginal utility

(c) Alfred Marshall Law of Equi Marginal utility

(d) both (b) and (c)

52. Utility approach is also known as________

(a) Marginal utility analysis

(b) Indifference curve approach

(c) Cardinal measurability of utility


53. When total utility decreases, marginal utility________.

(a) Decreases

(b) Increases

(c) Decreases negatively

(d) Decreases positively

54. Average utility has ________slope & lies ________.

(a) Flatter, below MU




(b) Downward, above TU

(c) Upward, below TU

(d) Flatter, above MU

55. Goods for which demand rises when the price increases and demand falls when price decreases

(a) G if fen goods

(b) Normal goods

(c) Superior goods

(d) Inferior goods

56. Under law of demand

(a) Price of commodity is an independent variable

(b) Quantity demanded is dependent variable

(c) Reciprocal relationship is found between price and quantity demanded


Answer

1 (b) 2 (a) 3 (c) 4 (a) 5 (a) 6 (b)

7 (c) 8 (b) 9 (b) 10 (b) 11 (c) 12 (b)

13 (c) 14 (c) 15 (a) 16 (b) 17 (b) 18 (b)

19 (c) 20 (b) 21 (c) 22 (a) 23 (b) 24 (a)

25 (b) 26 (b) 27 (a) 28 (d) 29 (b) 30 (b)

31 (b) 32 (d) 33 (b) 34 (b) 35 (b) 36 (b)

37 (a) 38 (a) 39 (c) 40 (c) 41 (a) 42 (a)

43 (c) 44 (d) 45 (a) 46 (d) 47 (b) 48 (d)

49 (b) 50 (a) 51 (c) 52 (c) 53 (c) 54 (d)

55 (a) 56 (d)


1. Which of the following is not a characteristic of land?

(a) Its supply for the economy is limited.

(b) It is immobile.




(c) Its usefulness depends on human efforts.

(d) It is produced by our forefathers.

2. Which of the following is the best definition of the "Production function"?

(a) The relationship between market price and quantity supplied.

(b) The relationship between the firm's total revenue and the cost of production.

(c) The relationship between the quantities of inputs needed to produce a given level of output.

(d) The relationship between the quantity of inputs and the firm's marginal cost of production.

Refer the following table for answering Q3 and Q4.

Output 1 2 3

TP 100 - 240

MP - 80 -

3. What is the total output when 2 hours of labour are employed?

(a) 80

(b) 100

(c) 180

(d) 200

4. What is the marginal product of the third hour of labour?

(a) 60

(b) 80

(c) 100

(d) 240

5. Which cost increases continuously with the increase in production? (a) Average cost

(b) Marginal cost

(c) Fixed cost

(d) Variable cost

6. Which of the following cost curves is never 'U' shaped?

(a) Average cost curve

(b) Marginal cost curve

(c) Average variable cost curve

(d) Average fixed cost curve

7. Which of the following is a function of an entrepreneur?

(a) Initiating a business enterprise

(b) Risk bearing

(c) Innovating

(d) All the above

8. If decreasing returns to scale are present, then if all inputs are increased by 10% then:

(a) Output will also decrease by 10%

(b) Output will increase by 10%




(c) Output will increase by less than 10%

(d) Output will increase by more than 10%

9. The vertical difference between TVC and TC is equal to:

(a) MC

(b) AVC

(c) TFC

(d) None of those

10. Production may be defined as an act of:

(a) Creating utility

(b) Earning Profit

(c) Destroying utility

(d) Providing Services

11. Labour has______bargaining power

(a) Weak

(b) Strong

(c) No

(d) Either a or c

12. Which of the following is not correct in connection with the increasing returns?

(a) Specialization of Labour

(b) Technological advancement

(c) Marketing Economics

(d) All the above

13. What are the factors of production?

(a) Land

(b) Capital

(c) Entrepreneur

(d) All the above

14. Law of return to scale operates in:

(a) Long run

(b) Short run

(c) Very short period

(d) Both a and b

15. Land is______in supply.

(a) Semi Fixed

(b) Fixed

(c) Variable


16. During the stage of decreasing return:

(a) MP is negative

(b) MP is decreasing




(c) AP is negative

(d) Both b and c

17. In long run all costs are known as_______costs.

(a) Variable

(b) Fixed

(c) Semi Fixe

(d) Both Fixed and Variable

18. When marginal productivity becomes______total productivity reaches its maximum.

(a) Negative

(b) Zero

(c) One


19. Law of variable proportion operates in:

(a) Long run

(b) Short run

(c) Very long period

(d) Both a and b

20. External Economies of scale are____

(a) Customer Specific

(b) Industry Specific

(c) Firm Specific

(d) Producer Specific •

21._____cost is closely related to marginal cost.

(a) Prime cost

(b) Variable cost

(c) Implicit cost.

(d) Fixed cost

22. Marginal cost curve intersect the average cost curve at its:

(a) Minimum point

(b) Falling portion

(c) Rising portion

(d) Any where

23. Which of the following statement is correct?

(a) Shape of average cost and marginal cost is 'U' shaped

(b) AR and MR curve under perfect competition are parallel to x-axis

(c) At equilibrium of the firm, AR - MR

(d) Both a and b

24. All factors are_______in the long run.

(a) Fixed

(b) Variable




(c) Either a orb

(d) Neither a nor b

25. When TR is________MR is zero

(a) Maximum

(b) Minimum

(c) Zero

(d) None of above

26. Which of the following equation is correct?

(a) ATC = AFC + AVC

(b) ATC = TC/No. of units

(c) TC = TFC + TVC

(d) All the above

27. What affect is made on AFC when the output of a firm is increasing?

(a) Decline continuously

(b) Rises continuously

(c) Decline in a constant nature


28. Average revenue curve is also named as_______.

(a) Demand curve

(b) Supply curve



29. Because of the operation of law of variable proportion in short-run, cost curves are______.

(a) Inverse U - shaped

(b) U - shaped

(c) V - shaped

(d) Either b or c

30. Which of these is known as plant curve?

(a) SAC

(b) LAC

(c) AR

(d) MR

31. "Production is the process by which goods and services are created", was given by -

(a) Adam Smith

(b) Edward Buffe

(c) Robbins

(d) S. B'. Keynes

32. Which is a not a characteristic of labour?

(a) Free gift of nature

(b) Perfectly inelastic supply curve




(c) Supply is inelastic in general

(d) imperfect mobile factor

33. Can an entrepreneur start production alone without any other factor of production?

(a) No

(b) Can't say

(c) Partly agree

(d) Yes

34. The average product of labour is maximized when MP of labour

(a) Equals zero

(b) Maximized

(c) None

(d) Equal to the average product of labour

35. The law of variable proportion is drawn under all the assumptions mentioned below except the assumption that

(a) Technology is changing

(b) Technology is stable & given

(c) Minimum level of efficiency

(d) Inputs are divisible into most viable units

36. When does rational consumer choses to produce his goods according to law of variable proportion?

(a) At stage I

(b) At stage II

(c) At stage I & III

(d) At stage I & II

37. Costs are nothing but input prices. This relationship is called

(a) Cost function

(b) Production function

(c) Cost & Output function

(d) None of these.

38. When AVC falls, MC falls at a ________rate

(a) Slower

(b) Steeper

(c) Faster

(d) Maximum

39. Can fixed costs be avoided?

(a) No

(b) Cant’ say

(c) Yes

(d) Partly agree

40. Wages, raw materials consumed and direct expenses are related with________.




(a) Fixed cost

(b) Variable cost

(c) Opportunity cost

(d) Prime cost

41. Increase in AVC depends upon

(a) Law of short run

(b) Law of diminishing return

(c) Law of DMU

(d) Law of increasing returns

42. Financial, bye - products, advertising and risk economics relates to _

(a) External economies

(b) External diseconomies

(c) Internal diseconomies

(d) Internal economies

43. When TR = TC, then it is what?

(a) Equilibrium conditions

(b) Profit

(c) Loss

(d) Break even point

44. Because of operation of law of variable proportion in short run, cost curves are?

(a) Demand Curve

(b) Supply Curve

(c) None of above

(d) Indifference Curve

45. When AC is minimum then, MC is

(a) Zero

(b) Maximum

(c) Minimum

(d) Equal

46. Which of the following is example of an explicit cost?

(a) The wages of proprietor could have been made by working as an employer of a large firm

(b) The income that could have been earned in alternative uses by the resources owned by the firm

(c) The payment of rent by the firm for the building in which it has a house

(d) The payment of wages by the firm.

47. Marginal cost is defined as

(a) The change in TC due to a one unit change in output

(b) TC divided by output

(c) Total product divided by the quantity of input

(d) The change in output due to one unit change in an output.




Output TC

0 240

1 230

2 410

3 480

4 540

5 610

6 690

Relater to 31-33

48. AFC of 2 units of output is

(a) 285

(b) 80

(c) 85

(d) 120

49. MC of 6th unit is

(a) 133

(b) 80

(c) 75

(d) 450

50. Diminishing marginal return starts to occur between units, (a) 2 and 3

(b) 4 and 5

(c) 3 and 4

(d) 5 and 6

51. What is the relationship between AR and MR under competitive market?

(a) AR and MR rising

(b) AR = MR = P

(c) AR1 and MR

(d) AR and MR are zero.

52. MR cuts MC from below to become greater that MR after MC = MR level of output

(a) True

(b) False

(c) Partly True

(d) Can't say

53. In TC & TR approach, TC = TR should be

(a) Minimum

(b) Equal

(c) Maximum

(d) Equal to zero

54. Endogenous is also known as




(a) External economies

(b) External diseconomy

(c) Internal economy

(d) None of these.

55. Total revenue falls as the price of a good increase if price elasticity of demand is

(a) Elastic

(b) Unitary elastic

(c) Inelastic

(d) Perfectly Elastic

56. Law of diminishing return states that

(a) As the firm uses more of the variable resources given the quantity of fixed resources, the average product of the firm will increase.

(b) As the firm uses more of the variable resources given the quantity of fixed resources, marginal utility of firm will eventually decrease.

(c) In the short run, the average total cost of the firm will diminish.

(d) In the long run, the average total cost of the firm will eventually diminish

Answer

1 (d) 2 (c) 3 (c) 4 (a) 5 (d) 6 (d)

7 (d) 8 (c) 9 (c) 10 (a) 11 (a) 12 (d)

13 (d) 14 (a) 15 (b) 16 (b) 17 (a) 18 (b)

19 (b) 20 (b) 21 (b) 22 (a) 23 (d) 24 (b)

25 (a) 26 (d) 27 (b) 28 (a) 29 (b) 30 (a)

31 (b) 32 (a) 33 (a) 34 (d) 35 (a) 36 (b)

37 (a) 38 (c) 39 (a) 40 (d) 41 (b) 42 (d)

43 (d) 44 (a) 45 (d) 46 (d) 47 (a) 48 (d)

49 (b) 50 (a) 51 (b) 52 (a) 53 (c) 54 (c)

55 (a) 56 (a)


1. What is the shape of the demand curve faced by a firm under perfect competition?

(a) Horizontal

(b) Vertical

(c) Positively sloped

(d) Negatively sloped

2. Which of the following is not a condition of perfect competition?

(a) A large number of firms

(b) Perfect mobility of factors

(c) Informative advertising to ensure that consumers have good information.




(d) Freedom of entry and exit into and out of the market.

3. Which is the other name that is given to the average revenue curve?

(a) Profit curve

(b) Demand curve

(c) Average cost curve

(d) Indifference curve

4. Under which of the following forms of market structure does a firm has no control over the price of its product?

(a) Monopoly

(b) Monopolistic competition

(c) Oligopoly

(d) Perfect competition

5. In perfect competition in the long run there will be no_________.

(a) Normal profits

(b) Supernormal profit

(c) Production

(d) Costs

6. When the perfectly competitive firm and industry are in long run equilibrium then:

(a) P = MR = SAC = LAC

(b) D = MR = SMC = LMC

(c) P = MR = Lowest point on the LAC curve

(d) All the above

7. The perfectly competitive firm can sell its output at__________prices.

(a) Variable

(b) Normal

(c) Fixed

(d) Normal or fixed

8. Supply of a product in_________is relatively inelastic.

(a) Short period

(b) Long period



9. Many sellers offering differentiated products to' many buyers is characterized as:

(a) Oligopoly

(b) Monopoly

(c) Monopolistic competition


10.________refers to the selling of specific commodity or service to different buyer at two or more different prices.

(a) Price determination




(b) Price differentiation

(c) Product differentiation

(d) Price discrimination

11. In perfect competition since firm is the price taker which curve is straight line?

(a) Total revenue

(b) Marginal revenue

(c) Total cost

(d) Marginal cost

12. Product differentiation is the feature of_____________.

(a) Perfect competition

(b) Monopoly

(c) Oligopoly

(d) Monopolistic competition

13. Under________there will be no difference between firm and industry.

(a) Duopoly

(b) Bilateral monopoly

(c) Monopoly

(d) None of above

14. Monopolist is a_________.

(a) Price taker

(b) Price dictator

(c) Price maker

(d) Price motivator

15. In the long run, monopolist firm earn_________.

(a) Supernormal profit

(b) Loss

(c) Normal profit

(d) Any of these

16. In long run, a monopolist can make profit because of:

(a) Low cost

(b) Restricted entry


(d) High scales of Economy

17. The term differentiated product denotes_______ product used by________set of people.

(a) Same, Differentiated

(b) Different, Differentiated

(c) Same, Same

(d) Different, Same

18. In monopolistic competitive market, seller try to compete on the basis of:

(i) Price




(ii) Aggressive Advertising

(iii) Efficient after sale service

(iv) Product development

(a) Only (i)

(b) Only (iii) and (iv)

(c) Only (ii), (iii) and (iv)

(d) (i), (ii), (iii) and (iv)

19. Which of the following is correct regarding perfect competition?

(i) Firm is the price maker

(ii) AR = MR

(iii) MR is linear and parallel to x - axis

(a) Only (i) and (ii)

(b) Only (ii) and (iii)

(c) Only (i) and (iii)

(d) All (i), (ii) and (iii)

20. Discriminating monopolist charges a higher price from the market which has a relatively_________demand.

(a) Elastic

(b) Inelastic

(c) Perfectly elastic

(d) Greater than 1

21. In imperfect competition, which of the following curves generally lies below the demand curve and slopes downward?

(a) Marginal cost


(c) Average cost

(d) Average revenue

22. In the long run, a perfectly competitive firm earns only normal profits because of:

(a) Product homogeneity in the industry

(b) Large number of seller and buyers in the industry

(c) Free entry and exit of firms in the industry

(d) Both (a) and (b) above

23. In India monopoly exists in the following industry?

(a) Internet service providing industry

(b) Rail transportation

(c) Small car industry

(d) Electricity generation.

24. Which of the following is false in a monopolistic competition?

(a) Many buyers and sellers

(b) Identical products




(c) Easy entry and exit

(d) Price of the competitor is the bench mark price

25. In general speaking, market refers, to a place, but in economic terms refers to

(a) Product

(b) Internet

(c) Place again


26.________refers to the amount of money which a firm realizes by selling certain units of a commodity.

(a) Total revenue

(b) Average revenue

(c) Marginal revenue

(d) Total product

27. Under which of the following condition/ s, industry is said to have attained long run equilibrium?

(a) All firms are earning normal profit

(b) No further entry and exit from the market


(d) All firms are earning supernormal profit.

28. In the following figure, the area ABCP shows

(a) Loss

(b) Normal profit

(c) Super normal profit

(d) Shut down point

______

29. What is the reason for downward slope of monopolist's demand curve?

(a) Because monopolist can influence the price

(b) Because monopolist can influence the output

(c) Because the industry's demand curve is the monopolist's demand curve


30. In which of the following market situation are the firms mutually interdependent in pricing output decisions?




(a) Oligopoly

(b) Perfect competition

(c) Monopsony


______

31. A monopolist may determine either________ or________, but he cannot determine________.

(a) Price, output, revenue

(b) Price, output, sales volume

(c) Price, output, both


______

32. When all the firms are functioning with normal profit,________is said to be in equilibrium.

(a) Firm

(b) Market

(c) Industry_____


______


(a) MR = ΔATR/ΔQ

(B) MRn = TRn - TRn-1

(c) Both (a) and (b).

(d) MR = TR/Q

34. If the firm is not producing anything, it will have an operating loss equal to its________

(a) Total cost

(b) Average cost

(c) Fixed cost

(d) Variable cost

35. If new firm enters in the industry in long run in perfect competitive market, supply curve

(a) Shifts to the right

(b) Shifts to the left

(c) Moves downwards

(d) Supply curve will not be affected

36. Government fixes the price of critical inputs, which of the following are the critical inputs?

(i) Petrol (ii) Diesel (iii) Fertilizers (iv) Coal (v) Kerosene

(a) Only (i), (ii) and (iii)

(b) Only (i), (ii) and (v)

(c) Only (i), (ii), (iii) and (v)

(d) (i), (ii), (iii), (iv) and (v)




37. The price of the product depends upon :

(a) Demand

(b) Supply


(d) Production

'38. Under which of the following condition, monopolist can incur loss? (a) AC>AR

(b) MC > MR

(c) ATC>AR


39. Monopolistic competition does not exists in the following industry :

(a) Salt

(b) Toothpastes

(c) Ice creams

(d) Exists in all the above industries

40. In a perfectly competitive market, the demand curve is________

(a) Relatively elastic

(b) Infinitely elastic

(c) Relatively inelastic

(d) Unitary elastic

41. If demand decreases and supply remains constant, equilibrium price will

(a) Constant

(b) Moves down

(c) Moves up

(d) No affect

42. Which of the following are the barriers to entry?

(a) Government regulation

(b) Product differentiation

(c) High cost of production


43. Soaps are example of


(b) Monopoly

(c) Oligopoly

(d) Imperfect competition

Answer




1 (a) 2 (c) 3 (b) 4 (d) 5 (b) 6 (d)

7 (c) 8 (a) 9 (c) 10 (d) 11 (b) 12 (d)

13 (c) 14 (c) 15 (a) 16 (b) 17 (d) 18 (c)

19 (b) 20 (b) 21 (b) 22 (c) 23 (b) 24 (b)

25 (a) 26 (a) 27 (c) 28 (c) 29 (c) 30 (a)

31 (c) 32 (c) 33 (c) 34 (c) 35 (a) 36 (d)

37 (c) 38 (c) 39 (d) 40 (b) 41 (b) 42 (d)

43 (d)


1. What is the shape of the demand curve faced by a firm under perfect competition?

(a) Horizontal

(b) Vertical

(c) Positively sloped

(d) Negatively sloped

2. Which of the following is not a condition of perfect competition?

(a) A large number of firms

(b) Perfect mobility of factors

(c) Informative advertising to ensure that consumers have good information.

(d) Freedom of entry and exit into and out of the market.

3. Which is the other name that is given to the average revenue curve?

(a) Profit curve




(b) Demand curve

(c) Average cost curve

(d) Indifference curve

4. Under which of the following forms of market structure does a firm has no control over the price of its product?

(a) Monopoly

(b) Monopolistic competition

(c) Oligopoly


5. In perfect competition in the long run there will be no_________.

(a) Normal profits

(b) Supernormal profit

(c) Production

(d) Costs

6. When the perfectly competitive firm and industry are in long run equilibrium then:

(a) P = MR = SAC = LAC

(b) D = MR = SMC = LMC

(c) P = MR = Lowest point on the LAC curve

(d) All the above

7. The perfectly competitive firm can sell its output at__________prices.

(a) Variable

(b) Normal

(c) Fixed

(d) Normal or fixed

8. Supply of a product in_________is relatively inelastic.

(a) Short period

(b) Long period



9. Many sellers offering differentiated products to' many buyers is characterized as:

(a) Oligopoly

(b) Monopoly

(c) Monopolistic competition


10.________refers to the selling of specific commodity or service to different buyer at two or more different prices.

(a) Price determination

(b) Price differentiation


(d) Price discrimination




11. In perfect competition since firm is the price taker which curve is straight line?

(a) Total revenue


(c) Total cost

(d) Marginal cost

12. Product differentiation is the feature of_____________.


(b) Monopoly

(c) Oligopoly


13. Under________there will be no difference between firm and industry.

(a) Duopoly

(b) Bilateral monopoly

(c) Monopoly

(d) None of above

14. Monopolist is a_________.

(a) Price taker

(b) Price dictator

(c) Price maker

(d) Price motivator

15. In the long run, monopolist firm earn_________.

(a) Supernormal profit

(b) Loss

(c) Normal profit

(d) Any of these

16. In long run, a monopolist can make profit because of:

(a) Low cost

(b) Restricted entry


(d) High scales of Economy

17. The term differentiated product denotes_______ product used by________set of people.

(a) Same, Differentiated

(b) Different, Differentiated

(c) Same, Same

(d) Different, Same

18. In monopolistic competitive market, seller try to compete on the basis of:

(i) Price

(ii) Aggressive Advertising

(iii) Efficient after sale service

(iv) Product development




(a) Only (i)

(b) Only (iii) and (iv)

(c) Only (ii), (iii) and (iv)

(d) (i), (ii), (iii) and (iv)

19. Which of the following is correct regarding perfect competition?

(i) Firm is the price maker

(ii) AR = MR

(iii) MR is linear and parallel to x - axis

(a) Only (i) and (ii)

(b) Only (ii) and (iii)

(c) Only (i) and (iii)

(d) All (i), (ii) and (iii)

20. Discriminating monopolist charges a higher price from the market which has a relatively_________demand.

(a) Elastic

(b) Inelastic

(c) Perfectly elastic

(d) Greater than 1

21. In imperfect competition, which of the following curves generally lies below the demand curve and slopes downward?

(a) Marginal cost


(c) Average cost

(d) Average revenue

22. In the long run, a perfectly competitive firm earns only normal profits because of:

(a) Product homogeneity in the industry

(b) Large number of seller and buyers in the industry

(c) Free entry and exit of firms in the industry

(d) Both (a) and (b) above

23. In India monopoly exists in the following industry?

(a) Internet service providing industry

(b) Rail transportation

(c) Small car industry

(d) Electricity generation.

24. Which of the following is false in a monopolistic competition?

(a) Many buyers and sellers

(b) Identical products

(c) Easy entry and exit

(d) Price of the competitor is the bench mark price

25. In general speaking, market refers, to a place, but in economic terms refers to




(a) Product

(b) Internet

(c) Place again


26.________refers to the amount of money which a firm realizes by selling certain units of a commodity.

(a) Total revenue

(b) Average revenue

(c) Marginal revenue

(d) Total product

27. Under which of the following condition/ s, industry is said to have attained long run equilibrium?

(a) All firms are earning normal profit

(b) No further entry and exit from the market


(d) All firms are earning supernormal profit.

28. In the following figure, the area ABCP shows

(a) Loss

(b) Normal profit

(c) Super normal profit

(d) Shut down point

______

29. What is the reason for downward slope of monopolist's demand curve?

(a) Because monopolist can influence the price

(b) Because monopolist can influence the output

(c) Because the industry's demand curve is the monopolist's demand curve


30. In which of the following market situation are the firms mutually interdependent in pricing output decisions?

(a) Oligopoly

(b) Perfect competition

(c) Monopsony





______

31. A monopolist may determine either________ or________, but he cannot determine________.

(a) Price, output, revenue

(b) Price, output, sales volume

(c) Price, output, both


______

32. When all the firms are functioning with normal profit,________is said to be in equilibrium.

(a) Firm

(b) Market

(c) Industry_____


______


(a) MR = ΔATR/ΔQ

(B) MRn = TRn - TRn-1

(c) Both (a) and (b).

(d) MR = TR/Q

34. If the firm is not producing anything, it will have an operating loss equal to its________

(a) Total cost

(b) Average cost

(c) Fixed cost

(d) Variable cost

35. If new firm enters in the industry in long run in perfect competitive market, supply curve

(a) Shifts to the right

(b) Shifts to the left

(c) Moves downwards

(d) Supply curve will not be affected

36. Government fixes the price of critical inputs, which of the following are the critical inputs?

(i) Petrol (ii) Diesel (iii) Fertilizers (iv) Coal (v) Kerosene

(a) Only (i), (ii) and (iii)

(b) Only (i), (ii) and (v)

(c) Only (i), (ii), (iii) and (v)

(d) (i), (ii), (iii), (iv) and (v)

37. The price of the product depends upon :

(a) Demand

(b) Supply





(d) Production

'38. Under which of the following condition, monopolist can incur loss? (a) AC>AR

(b) MC > MR

(c) ATC>AR


39. Monopolistic competition does not exists in the following industry :

(a) Salt

(b) Toothpastes

(c) Ice creams

(d) Exists in all the above industries

40. In a perfectly competitive market, the demand curve is________

(a) Relatively elastic

(b) Infinitely elastic

(c) Relatively inelastic

(d) Unitary elastic

41. If demand decreases and supply remains constant, equilibrium price will

(a) Constant

(b) Moves down

(c) Moves up

(d) No affect

42. Which of the following are the barriers to entry?

(a) Government regulation

(b) Product differentiation

(c) High cost of production


43. Soaps are example of


(b) Monopoly

(c) Oligopoly

(d) Imperfect competition

Answer

1 (a) 2 (c) 3 (b) 4 (d) 5 (b) 6 (d)

7 (c) 8 (a) 9 (c) 10 (d) 11 (b) 12 (d)




13 (c) 14 (c) 15 (a) 16 (b) 17 (d) 18 (c)

19 (b) 20 (b) 21 (b) 22 (c) 23 (b) 24 (b)

25 (a) 26 (a) 27 (c) 28 (c) 29 (c) 30 (a)

31 (c) 32 (c) 33 (c) 34 (c) 35 (a) 36 (d)

37 (c) 38 (c) 39 (d) 40 (b) 41 (b) 42 (d)

43 (d)


1. In terms of purchasing power parity, India ranks________.

(a) First

(b) Second

(c) Third

(d) Fourth

2. The Planning Commission was set up in_______.

(a) 1950

(b) 1960

(c) 1980 _____

(d) None

3. The principle task of planning commission is___________.

(a) To ensure equality

(b) To make five year plans

(c) To advise the government




(d) Preparing budget

4. Which of these is a not an objective of planning?

(a) Increase in National Income

(b) Achieving full employment

(c) Reduction of inequalities of income

(d) None of these

5. The first five year plan was presented to the parliament by:

(a) Mahatma Gandhi

(b) Indira Gandhi

(c) Jawahar Lal Nehru

(d) A. K. Antony

6. Five steel mills at Dhilai, Durgapur and Raurkela were established in which five year plan?

(a) First

(b) Second

(c) Third

(d) Fourth

7. Green revolution is also known as______________revolution.

(a) Wheat

(b) Rice

(c) Poverty_____

(d) None of these

8. State Electricity Board was formed under which plan:

(a) 2nd

(b) 1st

(c) 3rd

(d) 4th

9. Three consecutive periods of drought were experienced in which plan?

(a) 1st

(b) 2nd

(c) 3rd _____

(d) 4th

10. In terms of agriculture which of these is the most developed state?

(a) Punjab

(b) Bihar

(c) U.P.

(d) Haryana

11.___________sector is treated as the major source of savings.

(a) Agriculture

(b) Industrial

(c) Service




(d) None of these

12. Which of these is not a linkage between agriculture and industrial sector?

(a) Production linkage

(b) Demand linkage

(c) Saving and investment linkage

(d) Capital linkage

13.___________sector occupies central place in the economy.

(a) Agriculture

(b) Industry

(c) Service

(d) None

14. Agriculture price commission was set up in_________.

(a) 1990

(b) 1965

(c) 1980

(d) 1950

15. National Agricultural Policy was started in__________.

(a) 2000

(b) 2005

(c) 2009

(d) 2010

16. Which of these is not a thrust area of Tenth Five Year Plan?

(a) Minimum Support Price Scheme

(b) Credit

(c) Agriculture diversification

(d) None of these

17. Which of these is not a cause of low productivity?

(a) General factors

(b) Institutional factor

(c) Social factors

(d) Technological factor

18. Land reforms does not include:

(a) Abolition of Zamindari

(b) Inspector Raj

(c) Consolidation

(d) Cooperative farming

19. Green revolution was started in which year__________.

(a) 1987

(b) 1967

(c) 1990 _____




(d) 1976

20.___________aims at integrating our national economy with that of the world.

(a) Globalization

(b) Liberalization

(c) Privatization

(d) Divestment

21.___________is the process by which centre of gravity of the economy shifts from agriculture to industry.

(a) Privatization

(b) Industrialization

(c) Divestment

(d) Urbanization

22. Which of these is an objective of industrial policy?

(a) Sustainable growth

(b) Gainful employment

(c) Optimum utilization of resources

(d) All of these

23. As per IDRA, 1951, small scale industry is one which has investment upto________crore in plant and machinery excluding land and building.

(a) 1

(b) 2

(c) 3

(d) 5

24. In case of enterprises engaged in rendering of services, a small enterprise is one where investment in__________is more than 10 lakhs but less than 2 crores".

(a) Plant and machinery

(b) Land and building

(c) Equipment

(d) None of these

25. The condition of persistent loss and erosion of net worth is known as:

(a) Shut down point

(b) Industrial sickness

(c) Insolvency

(d) None of these

26. Which of these is not a cause of industrial sickness?

(a) Fraudulent policy

(b) Faulty management

(c) Over strength of employees

(d) Strikes and lockouts

27.____________was set up for rehabilitation of sick units.

(a) CSO




(b) BIFR

(c) ICICI

(d) NSSO

28. Public investment is also known as________.

(a) Government investment

(b) Investment by private individuals

(c) Investment by public sector enterprise

(d) None of these

29. Using High Yield variety (HYV) seeds is associated with:

(a) Eleventh five year plan

(b) Green Revolution

(c) Policy of agriculture commission

(d) All of these

30. The duration of 11th five year plan is:

(a) 2007-12

(b) 2008-2013

(c) 2005-2009

(d) None of these

31. Target growth for sixth five year plan is :

(a) 5.4% of GDP

(b) 5.2% of GDP

(c) 5.0% of GDP

(d) 6.2% of GDP

32. A second green revolution is needed to raise the growth rate of agriculture GDP to around

(a) 1 Percent

(b) 2 Percent

(c) 3 Percent

(d) 4 Percent

33. Bureau of Industrial and Financial Reconstruction (BIFR) started its work on

(a) 15 July, 1988

(b) 15 May, 1987

(c) 15 June, 1987

(d) 15 Jan, 1989

34. The term industrialization involves :-

(a) Superior techniques of production

(b) Modern Techniques



35. The principle task of the planning commission is to

(a) Formulate the five year plan




(b) Maintain the five year plan


(d) None of these.

Answer

1 (d) 2 (a) 3 (b) 4 (d) 5 (c) 6 (b)

7 (a) 8 (c) 9 (d) 10 (a) 11 (a) 12 (d)

13 (a) 14 (b) 15 (a) 16 (d) 17 (c) 18 (b)

19 (b) 20 (a) 21 (b) 22 (d) 23 (a) 24 (c)

25 (b) 26 (d) 27 (b) 28 (a) 29 (b) 30 (a)

31 (b) 32 (d) 33 (b) 34 (c) 35 (a)


1. Match the following:—

Name of Revolution Name of Related Commodity

1. Green Revolution (i) Sunflower

2. White Revolution (ii) Marine Products

3. Blue Revolution (iii) Agricultural Crops

4. Yellow Revolution (iv) Milk

(a) 1.(iv);2.(iii);3.(ii);4.(i)

(b) 1.(iii);2.(iv);3. (ii); 4. (i)

(c) 1.(ii);2.(iii);3.(iv);4.(i)

(d) 1.(i);2.(ii);3.(iii);4.(iv)

2. The first industrial policy revolution in independent India was announced in the year:—

(a) 1948

(b) 1949

(c) 1950

(d) 1951

3. The growth strategy adopted in India's Second Five Year Plan put more emphasis on the growth of—

(a) Consumer goods industries

(b) Industries producing luxuries and comforts

(c) Light capital goods industries

(d) Heavy and basic industries

4. Heavy inflows of foreign direct investment to India took place during the period:—

(a) 1950 to 1970

(b) 1960 to 1975

(c) 1980 to 1995

(d) 1995 to 2010

5. Purchase of equity shares in an Indian joint stock company by a foreigner constitute:—

(a) Foreign direct investment




(b) Portfolio investments

(c) Green investments


6. The time period which is called a "Plan Holiday" is

(a) 1961-1966

(b) 1966 -1969

(c) 1969-1974

(d) 1974 -1979

7, The contribution of the agricultural sector to India's national income in recent years has been about—

(a) 50%

(b) 30%

(c) 25%

(d) 15%

8. Integration of domestic economy with the world economy is called as— (a) Disinvestment

(b) Privatization

(c) Liberalization

(d) Globalization


1. Which of the following is considered as the function of money? .

(a) Served as medium of exchange

(b) Served as a common measure of value

(c) Served as store of value

(d) All the above

2. Legal tender money refers to which:

(a) Is backed by law and refusal to accept it is punishable offence

(b) Is in the form of paper currency

(c) Is easily convertible

(d) Is in the form of metallic money

______

3. Fisher's equation explains________.

(a) Value of money at a given point of time

(b) Value of money for a period of time

(c) Value of money as a ratio of demand for money

(d) None of the above. ______

4. "Liquidity" refers to:

(a) Market value of the asset

(b) Moneyness of an assets

(c) Convertibility of assets in to money





5. If the quantity of money increases, value of money_________.

(a) Decreases

(b) Increases

(c) Remains constant

(d) Either b or c

6. Who is the official "lender of the last resort" in India?

(a) SBI

(b) PNB

(c) RBI

(d) OBC

7.______ refers to that portion of total deposits of a commercial bank, which it has to keep with RBI in the form of cash reserves.

(a) CRR

(b) SLR

(c) Bank Rate

(d) Repo-Rate

8. In order to Control Credit in the Country, the RBI may.

(a) Buy Securities in the open market

(b) Sell Securities in the Open market

(c) Reduce Cash Reserve Ratio (CRR)

(d) Reduce Bank Rate

9. ________controls affect indiscriminately all sectors of the economy.

(a) Selective credit

(b) Quantitative

(c) Margin requirements


10. Who is the custodian of monetary reserves in India?

(a) SBI

(b) SIDBI

(c) NABARD____

(d) RBI

11. What is Bank Rate?

(a) The rate of interest charged by public sector banks from the general public.

(b) The rate of interest on housing loans.

(c) The rate of interest on educational loan.

(d) The rate at which the RBI discounts the bills of commercial banks.

12. One of the following is not an anti-inflationary measure:

(a) Rise in bank rate




(b) Raising the reserve ratio requirement

(c) Purchase of securities in open market

(d) Rationing of credit

13. Find the odd one out:

(a) State bank of India

(b) Reserve Bank of India

(c) Bank of Baroda

(d) Bank of India

14. The higher the marketing cost the______will be the liquidity.

(a) More

(b) Less

(c) No effect on liquidity

(d) None of these

15. Fisher gave_________approach of quantity theory of money.

(a) Transactional approach

(b) Cash Balance approach

(c) Both of these

(d) None of these

16. P= W + M1V1 / T is related to:

(a) Transactional approach

(b) Cash balance approach

(c) Both of these

(d) None of these

17. Reserve Bank of India was nationalized in:

(a) January, 1949

(b) April, 1949

(c) January, 1935

(d) None of these

18. Central Bank of India has_____offices across the across the country.

(a) 19

(b) 20

(c) 22 ______

(d) 40

19.___________is the rate at which central bank borrows from commercial banks.

(a) Repo Rate

(b) Reverse Repo Rate

(c) Bank Rate .(d) None of these

20. Margin Requirement is a___________.

(a) Qualitative measure

(b) Selective measure




(c) Quantitative measure


21. Credit creation is done by___________________.

(a) Central Bank

(b) Commercial bank

(c) Government

(d) None of these

22. As per transactional approach if quantity of money is doubled, value of money becomes__________.

(a) Double

(b) Half

(c) Has no effect

(d) None of these

23. Secondary functions of money are also known as:

(a) Additional functions

(b) Sub primary functions

(c) Derived functions

(d) None of these

24. Monopoly of note issue rests with______.

(a) Central Bank

(b) Commercial bank

(c) NABARD

(d) None of these

25. In order to reduce money supply, RBI will________securities.

(a) Buy

(b) Sell

(c) Will do nothing

(d) None of these

26. To define money, two approaches have been adopted by economists :

(a) Functional and liquidity approach

(b) Traditional and cash balance approach


(d) None of these

27. Due to which factors transaction of lending and borrowing money is regarded as best medium.

(a) Stability in value

(b) General acceptability

(c) Durability

(d) All of these




28. Contingent functions of money were stated by

(a) A. Marshall

(b) Prof. Kinley

(c) Fisher

(d) Paul Samuelson

29. "An item cannot have liquidity unless it is marketable"

(a) True

(b) False

(c) Partly true

(d) Partly false

30. Liquidity of an asset is deeply influenced by following factors _

(a) Period of maturity

(b) Price fluctuations


(d) Only (b)

31. Liquidity approach emphasized on which function of money?

(a) Measure of value

(b) Store of value

(c) Basis of credit

(d) Medium of exchange

32. Loan deposit may be termed as ________ deposit and cash deposit may be termed as ________ deposit.

(a) Primary, secondary

(b) Secondary, primary

(c) Secondary

(d) Primary

33. According to which approach, money does not perform store of value functions and hence, there are no saving in economy.

(a) Cash Balance Approach

(b) Traditional Approach

(c) Cambridge Version

(d) None of these

34. The following equation was given by Fisher:

(a) π=kR/M

(b) P= Mv + Mv / T

(c) P = MV/ T

(d) None of these.

35. Moral suasion is




(a) Quantitative measure

(b) Qualitative measure

(c) Both (a) and (c)

(d) General measure

36. Suppose a bank accepts deposits @6% whereas it provides loan @ 9%. How much credit will be created by bank?

(a) 6%

(b) 3%

(c) 1.5%

(d) None of above

37. In Cash Balance Approach, there are________sales and saving in economy.

(a) Cash

(b) Credit

(c) Both (a) & (b)

(d) None of these.

38. Which of the following are functions of Central Bank?

(a) Credit control

(b) Banker to Government

(c) Issuer of notes

(d) All of these.

39. The Central Bank collects taxes and other payment on behalf of government. According to this statement, Central Bank acts as

(a) Financial Advisor to Government

(b) Agent to Government

(c) Banker to Government


40. Leading instruments associated with general credit control measures are

(i) Open market operation

(ii) Rationing of credit

(iii) Margin requirement

(iv) Bank rate policy

(v) Repo rate

(a) (ii), (iii), (v)

(b) (i), (iv), (v)

(c) (i), (iii), (iv)

(d) (ii), (iv), (v)

41. Money has overcome the difficulty of________system.

(a) Barter

(b) Economical

(c) Money transaction




(d) Exchange

42. Money comprises of________&________of legal tender.

(a) Gold & Silver

(b) B/P and B/R

(c) Coin & Notes

(d) Goods & Transfer

43. Non-currency money does not includes -

(a) Paper note

(b) Cheque

(c) Credit Card

(d) Bill of exchange

44. The monetary unit used in calculation is called unit of________.

(a) Account

(b) Coins

(c) Notes

(d) Bank papers

45. The purchasing power of money________when there is_________in the price of goods & services.

(a) Rise & Fall

(b) Increase & Decrease

(c) Decrease & Increase

(d) Fall & Rise

46. Money has a unique nature of________&________in value.

(a) Durability & stability

(b) Flexibility & Durability

(c) Rigidity & Durability

(d) Flexibility & Stability

47. Which of the________is/are not the secondary function of money?

(a) Store of value

(b) Measure of value

(c) Standard of differed payment

(d) Transfer of value

48. Which of these is a contingent function of money?

(a) Transfer of value

(b) Store of value

(c) Measure of value

(d) Basis of credit

49. The contribution of all factors are calculated in________terms -

(a) Monetary

(b) Beneficial




(c) Non-monetary

(d) Transferability

50. The economic capacity of an item to be readily acceptable in the market is termed as________

(a) Profitability

(b) Liquidity

(c) Convertability

(d) Contingency

51. An item cannot have ___ unless it is________

(a) Profitability & liquidity

(b) Liquidity & Marketability

(c) Marketability & Profitability

(d) Convertability & Liquidity

52. Tangible asset are________liquid but________is its exception.

(a) Most & Cheque

(b) Cash & Most

(c) Least & Cash

(d) B/P & Most

53. Those asset for which only slight capital gain & losses are possible are called________asset

(a) Fixed

(b) Current

(c) Financial/Monetary

(d) Near money asset

54. Liquidity of asset depend upon________&________of asset.

(a) Existence & Maturity

(b) Convertability & Maturity

(c) Convertability & Existence

(d) None of above

55. An________in the money supply by the monetary authority leads to an ________in the liquidity

with the public.

(a) Increase, Increase

(b) Decrease, Decrease

(c) Decrease, Increase

(d) Increase, Decrease

56. Central bank works for ________ motive & commercial bank for _______________.

(a) Service & Service

(b) Profit & Profit

(c) Monetary & Non monetary

(d) Service & Profit

57. MV = PT is given by -

(a) Cambridge




(b) Fisher

(c) Former H

(d) F Gardner

Answer

1 (d) 2 (a) 3 (a) 4 (c) 5 (a) 6 (c)

7 (a) 8 (b) 9 (b) 10 (d) 11 (d) 12 (c)

13 (b) 14 (b) 15 (a) 16 (a) 17 (a) 18 (c)

19 (b) 20 (d) 21 (b) 22 (b) 23 (c) 24 (a)

25 (b) 26 (a) 27 (d) 28 (b) 29 (a) 30 (c)

31 (b) 32 (b) 33 (b) 34 (b) 35 (b) 36 (b)

37 (b) 38 (d) 39 (b) 40 (b) 41 (a) 42 (b)'

43 (a) 44 (a) 45 (d) 46 (a) 47 (b) 48 (d)

49 (a) 50 (b) 51 (b) 52 (c) 53 (d) 54 (d)

55 (d) 56 (d) 57 (b)

Multiple Choice Questions In the development of statistical methods, the greatest contribution is that of: (a) Economists (b) Scientists (c) Mathematicians (d) None of these 2. Nationality of a student is:

(a) An attribute (b) A continuous variable (c) A discrete variable (d) (a)or(c) 3. Who has defined statistics as "aggregate of facts affected to a marked extent by multiplicity of causes........." (a) A. L. Bowley (b) Prof. Y-Lan-Chou (c) Croxton and Cowden (d) Prof. Horace Secrist 4. Statistics is defined in terms of numerical data in the: (a) Singular Sense (b) Plural Sense (c) Either (a) or (b) (d) Both (a) and (b) 5. In Singular Sense, statistics means: (a) Statistical data (b) Statistical method

(c) Both(a)&(b) (d) None of these 6. Statistics Can: (a) Prove anything




(b) Disprove anything

(c) Neither prove nor disprove anything is just a tool (d) None of these 7. An attribute is: (a) A qualitative Characteristic (b) A quantitative Characteristic . (c) A measurable Characteristic (d) All of these 8. Statistics is applied in (a) Economics (b) Business management (c) Commerce and Industry (d) All of these 9. Who has defined Statistics as 'numerical Statement of facts': (a) A L Bowley (b) Prof. Y-Lan-Chou (c) Croxton and Cowden (d) Prof. Horace Secrist 10. An Indian statistician who has made significant contribution in the development of statistics is:

(a) P C Mahalanobis (b) Prof. A L Bowley (c) King (d) Lovin 11. Which of the following is not the part of statistical enquiry? (a) Collection of data (b) Presentation of data (c) Manipulation of data (d) Interpretation of data 12. "Statistics is both, a Science and an art" is given by: (a) Keynes (b) Tippets (c) Bowley (d) Spiegel 13. Which of the following statements is false? (a) Statistics is derived from the Latin word 'Status' (b) Statistics is derived from the Italian word 'Stato' (c) Statistics is derived from the French word 'Statista'

(d) Statistics is derived from the German word Statistik' 14. Statistics can best be considered as: (a) An art (b) A science (c) Both (a) and (b) (d) neither (a) nor (b) 15. Bowley stated, "statistics may be called as the science of (a) Average (b) Estimates (c) Counting (d) None of the above 16. Law of inertia of large number is__________of law of statistical regularity.




(a) Corollary

(b) Opposite (c) Both (a) and (b) (d) None of the above. 17. The________the size of the sample, the more reliable is the result. (a) Medium (b) Smaller (c) Large (d) None of the above 18. In Plural sense, statistics means: (a) Statistical data (b) Statistical method (c) Both (a) and (b) (d) None of these 19. The real giant in the development of the theory of statistics is: (a) R A Fisher (b) A L Bowley (c) Karl Pearson (d) None of these

20. Statistics is concerned with (a) Qualitative information (b) Quantitative information (c) Either (a) or (b) (d) Both (a) and (b) 21. Kilometer tonnes is an example of: (a) Simple statistical unit (b) Composite statistical unit (c) Complex statistical unit (d) None of these 22. Primary Data is: (a) Collection of original data for the first time (b) Basically compilation of existing data (c) Neither (a) nor (b) (d) None of these 23. Drinking habit of a person is: (a) An attribute (b) A variable

(c) A discrete variable (d) A continuous variable 24. Who has given the most acceptable definition of statistics? (a) Bowley (b) Fisher (c) King (d) Prof. Horace Secrist 25. Which of the following is in correct sequence: (a) Analysis, organisation & presentation, interpretation, collection (b) Collection, analysis, organisation & presentation, interpretation (c) Collection, organisation & presentation, analysis, interpretation (d) None of these




26. The Meaning of Latin word 'Status' is.

(a) Political arithmetic (b) Political Science (c) Numerical Data (d) Political State 27. A tentative explanation for an observation phenomenon, or scientific problem that can be tested by further investigation. (a) Hypothesis (b) Statistical enquiry (c) Analytical Statistics (d) Applied Statistics 28. Arrange the following in Correct Sequence:- (i) Analysis (ii) Organisation (iii) Presentation (iv) Collection (v) Interpretation (a) (v) (iv) (i) (iii) (ii) (b) (iv) (ii) (iii) (ii) (v)

(c) (iv) (ii) (iii) (i) (v) (d) (ii) (iii) (i) (v) (iv) 29. "Statistics are like clay from which you can make a God or a devil as you please" is given by:- (a) W. I king (b) AC Bowley (c) R.A. fisher (d) Croxton & Cowden. 30. The branch of Statistics that draws conclusions that extend beyond the immediate data alone. (a) Inductive Statistics. (b) Inferential Statistics (c) Descriptive Statistics (d) Hypothesis 31. Which of the following is not a characteristic of Statistics. (a) Numerically expressed (b) Reasonable degree of accuracy (c) Unsystematic manner (d) None of the above. 32. Statistics may be called as the science of counting or the science of averages :-

(a) AL Bowley (b) Fisher (c) Lovin (d) Lincon L Chao 33. Which of the following are limitations of Statistics. (a) Study of groups & not individuals (b) Deals in qualitative data (c) Statistical laws are exact (d) All of the above. 34. Which of the following are functions of Statistics. (a) Preciseness & Definiteness (b) Business Forecasting




(c) Farming & testing Hypothesis

(d) All of the above 35. Business forecasting is done with help of (a) Inductive Statistics (b) Applied Statistics (c) Inferential Statistics (d) Descriptive Statistics. 36. Which of the following techniques are used in Applied Statistics. (a) Averages (b) Dispersion (c) Time Series (d) None of the above 37. The branch of Statistics that deals with generalization, predictions, estimations & decisions from data initially presented. (a) Applied Statistics (b) Inferential Statistics (c) Inductive Statistics (d) None of the above Answer

1 (c) 2 (a) 3 (d) 4 (b) 5 (b) 6 (c)

7 (a) 8 (d) 9 (a) 10 (a) 11 (c) 12 (b)

13 (c) 14 (c) 15 (c) 16 (a) 17 (c) 18 (a)

19 (a) 20 (d) 21 (c) 22 (a) 23 (a) 24 (d)

25 (c) 26 (d) 27 (a) 28 (c) 29 (a) 30 (b)

31 (c) 32 (a) 33 (a) 34 (d) 35 (a) 36 (d)

37 (c)

Multiple Choice Questions 1. S.I. on Rs. 3,500 for 3 years at 12% per annum is (a) Rs. 1,200 (b) Rs. 1,260 (c) Rs. 2,260 (d) None of these. 2. P = 5,000, R = 15% T = 4 ½ using I = PRT/100, I will be (a) Rs. 3,375 (b) Rs. 3,300 (c) Rs. 3,735 (d) None of these. | j 3. P = Rs. 12,000, A = Rs. 16,500, T = 2 ½ years. Rate Percent Per annum Simple interest will be (a) 15% (b) 12% (c) 10% (d) None of these. 4. P = Rs. 8,500, A = Rs. 10,200, R = 12 ½ % SI, T will be. (a) 1 yr 7 month (b) 2 yrs

(c) 1 yr (d) None of these.

5. A sum of money doubles itself in 10 years. The number of years it would triple itself is.

(a) 25 Years (b) 15 Years




(c) 20 Years (d) None of these.

6. The sum required to earn a monthly interest of Rs. 1,200 at 18% per annum SI is. (a) Rs. 50,000 (b) Rs. 60,000 (c) Rs. 80,000 (d) None of these. 7. Rs. 100 will become after 20 years at 5% p.a. compound interest amount, (a) Rs. 250 (b) Rs. 205 (c) Rs. 265.50 (d) None of these. 8. If A = Rs. 1,000 n = 2 Years, R = 6% p.a. Compound interest Payable half yearly, then Principal (P) is. (a) Rs. 888.80 (b) Rs. 885 (c) Rs. 800 (d) None of these. ___ 9. The useful life of a machine is estimated to be 10 years and cost Rs. 10,000. Rate of depreciation is 10% p.a. The scrap value at the end of its life is. (a) Rs. 3,486 (b) Rs. 4,383 (c) Rs. 3,400 (d) None of these.

10. The C.I. on Rs. 16,000 for 1 years at 10% p.a. payable half yearly is

(a) Rs. 2,222 (b) Rs. 2,522 (c) Rs. 2,500 (d) None of these. 11. The C.I. on Rs. 40,000 at 10% p.a. for 1 year when the interest is payable quarterly is. (a) Rs. 4,000 (b) Rs. 4,100 (c) Rs. 4150.4 (d) None of these. 12. The difference between the S.I. and the C.I. on Rs. 2,400 for 2 years at 5% p.a. is. (a) Rs. 5 (b) Rs. 10 (c) Rs. 16 (d) Rs. 6 13. The present value of an annuity of Rs. 3,000 for 15 years at 4.5% p.a. C.I. is. (a) Rs. 23809.41 (b) Rs. 32217.33 (c) Rs. 32908.41 (d) None of these. 14. A loan of Rs. 10,000 is to be paid back in 30 equal instalments. The amount of each installment to cover the principal and at 4% p.a. C.I. is. (a) Rs. 587.87 (b) Rs. 587

(c) Rs. 578.87 (d) None of these. 15. Mr. X borrowed Rs. 5,120 at 12 ½ % p.a. C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him is. (a) Rs. 2,100 (b) Rs. 2,170 (c) Rs. 2,000 (d) None of these. 16. The present value of annuity of Rs. 5,000 per annum for 12 years at 4% p.a. C.I. annually is. (a) Rs. 46,000 (b) Rs. 46,850 (c) Rs. 15,000 (d) None of these.




17. If the amount of an annuity after 25 years at 5% p.a. C.I. is Rs. 50,000 the annuity will be. (a) Rs. 1406.90 (b) Rs. 1046.90 (c) Rs. 1146.90 (d) None of these. 18. a = Rs. 100 n = 10 i = 5% find the FV of annuity using the formula FV = a / i {1 + i)n -1}, M is equal to (a) Rs. 1,258 (b) Rs. 2,581 (c) Rs. 1,528 (d) None of these. 19. A = Rs. 5,200, R = 5% p.a., T = 6 Years, P will b<? (a) Rs. 2,000 (b) Rs. 3,880 (c) Rs. 3,000 (d) None of these. , 20. The present value of an annuity of Rs. 80 for 20 years at 5% p.a. is. (a) Rs. 997 (appx.) (b) Rs. 900 (c) Rs. 1,000 (d) None of these. 21. The difference between compound and simple interest at 5% per annum for 4 years on Rs.

20,000 is Rs._________________. (a) 250 (b) 277 (c) 300 (d) 310. 22. Alibaba borrows Rs. 6 lakhs Housing Loan at 6% repayable in 20 annual installments commencing at the end of the first years. How much annual payment is necessary. (a) Rs. 52,420 (b) Rs. 52,419 (c) Rs. 52,310 (d) Rs. 52,320. 23. Raja aged 40 wishes his wife Rani to have Rs. 40 lakhs at his death. If his expectation of life is another 30 years and he starts making equal annual investment commencing now at 3% compound interest p.a. how much should he invest annually? (a) Rs. 84,077 (b) Rs. 84,450 (c) Rs. 84,449 (d) Rs. 84,417. 24. Simple interest on a certain sum at the rate of 4.5% per annum for 4 years and 6 years differs by Rs. 216. The sum is. (a) Rs. 24,000 (b) Rs. 2,100

(c) Rs. 4,900 (d) Rs. 1,800. 25. The simple interest on a certain sum for 15 months at 8% per annum is Rs. 50 more than the simple interest on the same sum for 8 months at 10%. The sum borrowed is. (a) Rs. 1,500 (b) Rs. 1,700 (c) Rs. 2,000 (d) Rs. 2,500. 26. An amount of money fetches a simple interest of Rs. 3,600 at the rate of 5% per annum at the end of 6 years. What is the principal amount ? (a) Rs. 24,000 (b) Rs. 12,000 (c) Rs. 18,000 (d) Rs. 1,20,000.




27. The difference between S.I. and C.I. for two years on a certain amount of money at 4% is Rs.

160. The amount is (lac) (a) Rs. 1.5 <b) 1 (c) 0.75 (d) 2. 28. An annuity of equal payments at the beginning of every six months for 8 years is to be calculated for Rs. 20,000. If the interest rate is 18% p.a. compounded half yearly. How much is each payment ? (a) Rs. 557.89 (b) Rs. 552.89 (c) Rs. 556.79 (d) None of these. 29. A person invests Rs. 100 at the end of each year at 5% p.a. How much would he get back at the end of 10 years ? [Given : (1.05)10 = 1.6289] (a) Rs. 1,275.80 (b) Rs. 1,257.20 (c) Rs. 1,255.60 (d) None of these. 30. A borrows Rs. 6 lakhs Housing loan at 6% repayable in 20 annual instalments commencing at the end of the first year. How much annual payment is necessary. (a) Rs. 52,420 (b)Rs.52,419

(c) Rs. 52,319 (d) Rs. 52,350. 31. From the following which of these is not a type of annuity : (a) Annuity certain (b) Annuity due (c) Closed annuity (d) Forborne annuity. 32. The period of time for which interest is calculated is called — (a) Conversion period (b) Agreement period (c) Payment period (d) None of these. 33. The sum of money paid by the borrower at the end of the period is: (a) Principal (b) Capital (c) Amount (d) Both (a) & (c) 34. SI on Rs. 147, for 6 years at 12% per annum is (a) Rs. 215.94 (b) Rs.101.00 (c) Rs. 105.84 (d) Rs. 94.90

35. SI on Rs. 175 for 13 years at 4% per annum. What is the total new balance? (a) Rs. 300 (b) Rs. 266 (c) Rs. 250 (d) None of these. 36. The time period for which the interest is calculated is called:- (a) Conversion Period (b) Interest Period (c) Loan Period (d) All of these. 37. A sum of Rs. 1,200 becomes Rs. 1,323 in 2 years at compound interest compounded annually. Find the rate percent. (a) 4% (b) 6% (c) 7% (d) 5%




38. Find the compound interest for Rs. 1,000 for 4 years at 5% p.a., when compounded quarterly. (a) Rs.215 (b) Rs. 220 (c) Rs. 218 (d) None. 39. If nothing else is mentioned about the period of interval, in annuity, it is taken to be:- (a) 1 year (b) Half-year (c) 1 month > (d) Quarter year. 40. The difference in compound interest and simple interest for 1 year for Rs. 1,000 at 10% p.a. is: (a) Rs. 10 (b) Rs. 5 (c) Rs. 0 (d) Rs. 15 41. Annuity which continues forever is (a) Contingent Annuity (b) Perpetuity (c) Forborne Annuity (d) Variable Annuity. 42. The useful life of a machine is estimated to be 10 years and cost Rs. 10,000. Rate of depreciation is 10% p.a, the scrap value at the end will be>

(a) Rs. 3,486.78 (b) Rs. 2,000 (c) Rs. 3,912.45 (d) None. 43. Mr. X borrows Rs. 25,000 from Mr. Y at a compound rate of interest of 12% for first year, 13% for second year, 14% for 3rd year. What will be the amount after 3 years that Mr. X will have to pay:- (a) Rs. 41,480.04 (b) Rs. 36,069.60 (c) Rs. 30,560.00 (d) None 44. A newly constructed house will need no repairs until the end of 5 years, when Rs. 10,000 will be needed for repainting. Thereafter, Rs. 10,000 will be needed at the end of each year for repairs for next 20 years. Find the present value (X) of the upkeep of the house, if money is worth 6%? (a) Rs. 93,182.51 (b) Rs. 94,114.61 (c) Rs. 98,100.00 (d) Rs. 95,620.91 45. What amount should be set aside at the end of each year to amount to Rs. 10 Lacs at the end of 15 years at 6% per annum compound interest? Given: (1.06)15 = 2.3965 (a) Rs. 50,000.00 (b) Rs. 42,962.76

(c) Rs. 45,687.94 (d) None 46. A man borrowed some money and returned it in 3 equal quarterly installments of Rs. 4630.50 each. What sum did he borrowed, if the rate of interest was 20% p.a. compounded quarterly? Given:- (1,05)'3 = 0.8638 (a) Rs. 12,560 (b) Rs. 13,500 (c) Rs. 14,650 (d) Rs. 12,610 47. Mr. Aggarwal buys a house at Rs. 30,00,000 for which he agrees to make payments at the end of each year for 10 years at 10% p.a.. Find the amount of each installments. Take (1.1)'10 = 0.3855 (a) Rs. 4,88,201.79 (b) Rs. 5,01,290.12




(c) Rs. 3,00,000 (d) None

48. An annuity consists of 20 quarterly installments of Rs. 1,200.each, the first being made at the end of 3 years, at 8% per annum compounded quarterly. Find the amount of this annuity. Take (1,02)20 = 1.4859. (a) Rs. 25,498.11 (b) Rs. 29,156.84 (c) Rs. 16,500.37 (d) Rs. 20,000.00 49. Find the present value of a sequence of annual payments of Rs. 1,000 each, the first being made at the end of 5th year and last being made at the end of 12th year, at 6% p.a. Given: (1,06)'8 = 0.6274 (a) Rs. 38,268.44 (b) Rs. 48,292.50 (c) Rs. 24,005.37 (d) Rs. 25,650.88 50. Find the amount of an annuity of Rs. 2,000 payable at the end of every month for 5 years, if money is worth 6% p.a. compounded monthly- Take: (1.005)60 = 1.3488 (a) Rs. 1,99,680.05 (b) Rs. 1,39,540.06 (c) Rs. 2,00,000 (d) Rs. 2,00,100

51. SI on a certain sum at the rate of 4.50% p.a. for 4 years and 6 years differ by Rs. 216. The sum is (a) Rs. 24,000 (b) Rs. 2,100 (c) Rs. 4,900 (d) Rs. 1,800 52. Find the present value of an annuity due of Rs. 500 payable in the beginning of each year for 5 years if the money is worth 6% p.a. compounded annually. Given: (1.06)4 = 1.2624 (a) Rs. 1,732.55 (b) Rs. 2,232.55 (c) Rs. 2.920.01 (d) None 53. S borrows Rs. 5,00,000 to buy a house. If he pays equal installments for 20 years and 10% interest on outstanding balance, what will be the equal annual instalment? Given: (1.1)20 = 6.7275 (a) Rs. 58,729.81 (b) Rs. 58,730.95 (c) Rs. 55,729.81 (d) Rs. 56,729.90 54. What is the present value of Rs. 1 to be received after two year compounded annually at 10% interest rate:

Given: (1.1)2 = 0.826 (a) Rs. 0.92 (b) Rs. 0.99 (c) Rs. 0.84 (d) Rs. 0.83 55. The bacteria in a culture grow by 10% in the first hour, decreases by 8% in the 2na hour and again increases by 7% in the 3rd hour. If at the end of 3rd hour, the count of bacteria is 15,000, then find the number of bacteria at-the initial hour. (a) 13,852.46 (b) 12,852.92 (c) 11,012.13 (d) 15,001.37 56. The compound interest on Rs. 30,000 at 7% p.a. is Rs. 4,347. What is the period (in years)? (a) 5 years (b) 2 years




(c) 6 years (d) 1 year

57. Series of fixed payments, at fixed intervals guaranteed for a fixed number of years under stated conditions is: (a) Annuity (b) Simple interest (c) C.I. (d) Amount

Answer

1 (b) 2 (a) 3 (a) 4 (a) 5 (c) 6 (c)

7 (c) 8 (a) 9 (a) 10 (b) 11 (c) 12 (d)

13 (b) 14 (o) 15 (b) 16 (d) 17 (b) 18 (a)

19 (b) 20 (a) 21 (d) 22 (c) 23 (a) 24 (a)

25 (a) 26 (b) 27 (b) 28 (c) 29 (b) 30 (c)

31 (c) 32 (a) 33 (c) 34 (c) 35 (b) 36 (a)

37 (d) 38 (b) 39 (a) 40 (c) 41 (b) 42 (a)

43 (b) 44 (a) 45 (b). 46 (d) 47 (a) 48 (b)

49 (a) 50 (b) 51 (a) 52 (b) 53 (a) 54 (d)

55 (a) 56 (b) 57 (a)