Paper 2006-2011

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1. Which pattern reflects a pure executive form of management?

(a) Functional

(b) Line

(c) Line and Staff

(d) Committee

Ans. (a)

2. Match the following:

A. Increasing cost industry 1. Horizontal long run supply curve

B. Decreasing cost industry 2. Positively sloped long run supply curve

C. Constant cost 3. Negatively sloped long run supply curve industry

Codes:A B C

(a) 1 2 3

(b) 3 2 1

(c) 2 3 1

(d) 2 1 3

Ans. (c)

3. The management of personnel is also called:(a) Staffing

(b) Controlling

(c) Co-coordinating

(d) None of these

Ans. (a)

4.Assertion (A):High capital gearing leads to greater speculation. .Reason (R):Proportion of equity share capital in relation to the total capital comprising the othersecurities is small leading to capitalization being highly geared.

Codes:(a) Both A and R are true and R is the correct explanation of A.

(b) Both A and R are true but R is not a correct explanation of A.(c) A is true but R is false.

(d) A is false but R is true.

Ans. (d)

5. Techniques of managerial control are useful in:

(a) Selection of plant location

(b) Identifying appropriate strategy

(c) Profit planning

(d) Conducting shareho1ders meetings

Ans. (c)

6. Opportunity costs are also known as:

(a) Spillover costs

(b) Money-costs

(c) Alternative costs

(d) External costs

Ans. (d)

7.Assertion (A):The focus of scientific management was narrow.Reason (R):It concentrated on the work done at the lowest level.Codes:

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(a) A and R are true and R is the correct explanation of A.

(b) A and R are true but R is not the correct explanation of A.

(c) A is true but R is false.


Ans. (a)

8. The Human Relations Theory does not lay emphasis on:

A. Principles

B. People

C. Human motivations

D. Informal group function

Select the answer from answer from the codes given below:(a) A

(b) A and B.

(c) A, B and C

(d) A, B, C and D

Ans. (a)

9. What is consumer market?

(a) Buyers(b) Sellers

(b) Distributors

(d) None of the above

Ans. (a)

10. There will be only one regression line in case of two variables if:

(a) r = 0

(b) r = l

(c) r = 0.5

(d) None of them

Ans. (b)

11. Match the following:A. Various combinations of two commodities 1. Indifference map

that a consumer can purchase

B. Various combinations of two commodities 2. Indifference curve

that give consumer equal satisfaction

C. A set of indifference curves 3. Budget Line

D. Point of agency of a budget line and an 4. Consumers equilibrium

indifference curve

Codes:A B C D

(a) 1 2 4 3

(b) 4 3 2 1

(c) 2 3 4 1

(d) 3 2 1 4

Ans. (d)

12. The area which lies under the demand curve for a given good measures:

(a) Marginal utility

(b) Total utility

(c) Disutility

(d) Marginal cost of production

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Ans. (b)

13. The prime cost may be considered as:

(a) Variable cost

(b) Direct cost

(b) Sunk cost

(d) Fixed cost

Ans. (d)

14. The optimum is the one which is produced:

(a) By the optimum firm

(b) At the maximum average cost

(c) At the minimum average cost

(d) At zero marginal cost

Ans. (c)

15. Product mix consist:

(a) 2 P

(b) 6 P

(c) 4 P

(d) None of theseAns. (c)

16. Greshams law is related to:

(a) Consumption and Demand

(b) Supply and Demand

(c) Circulation of Money

(d) Deficit Financing

Ans. (c)

17. SDR is the currency of IMF which is in the form of:

(a) Paper currency

(b) Gold

(c) Silver and gold both(d) Book-keeping entry only

Ans. (d)

18.Assertion (A):The investors in the capital market have been showing a decisive shift in favour offixed income instruments.

Reason (R):The debt instruments have active secondary market.Codes:(a) Both A and R are true and R is the correct explanation of A.

(b) Both A and R are true but R is not a correct explanation of A.


(d A is false but R is true.

Ans. (c)

19. The first stock exchange was set up in India in:

(a) Calcutta

(b) Bombay

(c) Delhi

(d) Madras

Ans. (b)

20. Under perfect competition, a firm will be in equilibrium when its AC is:

(a) At a maximum

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(b) At a minimum

(c) Covering only prime costs of production

(d) Covering wages and salaries only

Ans. (b)

21. The greatest weakness of the informal organizations:

(a) Its utter instability

(b) Its behaviour can be predicted

(c) It does not change

(d) All of the above

Ans. (a)

22. Which of the following are devices to bring about co-ordination?

A. Cabinet Committees

B. Union Government

C. Zonal Councils

D. National Development Council

(a) A and B only

(b) B only

(c) A, B, and D only(d) A, B, C, and D

Ans. (d)

23. TQMS major emphasis is on:

(a) Product Quality

(b) Company Profitability

(c) Customer Delight

(d) Employees Training

Ans. (a)

24. The theory which deals with the comparative statistics and positive equilibrium is called:

(a) Macro Economics

(b) Modern Economics(c) Micro Economics


Ans. (b)

25. An informal organization is:

A. Not written and manualised

B. Not portrayed in organizational charts

C. A set of work relationship that grow out of the mutual interactions of persons working together over

a period of time

D. Customary, not enacted

Select the correct answer from the codes given below:

(a) A only

(b) A and B only

(c) A, B and C only

(d A, B, C and D

Ans. (d)

26. When the greater the elasticity of supply the change in the new equilibrium price will:

(a) Be higher

(b) Be higher than previous price

(c) Be lower

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(d) Be lower than previous price

Ans. (c)

27. In the short run, the monopolist:

(a) Incurs a loss

(b) Breaks down

(c) Makes a profit

(d) Any of the above

Ans. (d)

28. Match the following:

A. Responsiveness of demand to change in price 1. Income elasticity of demand

B. Responsiveness of demand to change in tastes 2. Price elasticity of demand

C. Responsiveness of demand to change in income 3. Cross elasticity of demand

D. Responsiveness of demand to change in price 4. Taste elasticity of demand

of related goods

Codes:A B C D

(a) 1 2 3 4

(b) 4 3 1 2(c) 3 4 2 1

(d) 2 4 1 3

Ans. (d)

29. A stable equilibrium position is one in which:

(a) There are never any departures from the equilibrium position

(b) There are only two forces influencing equilibrium

(c) Any departure from the equilibrium position calls into play forces which end to restore that position

(d) There are endless oscillations

Ans. (c)

30. We can separate the income effect from the substitution effect of the price fall of reducing the

consumers:(a) Money income sufficiently to keep his real income constant

(b) Money income to make his real income higher

(c) Money income to make his real income lower

(d) None of these

Ans. (a)

31. The Law of Diminishing Returns is applied to all fields of production was stated by

(a) Walras

(b) A. C. Pigou

(c) Alfred Marshall

(d) David Ricardo

Ans. (a)

32.Assertion (A):A manager dealing with trained subordinates can afford to operate on a wide span.Reason (R):Trained subordinates carry on their functions without very frequent reference to thesuperior.

Codes:(a.) A and R are true and R explains A.

(b) A and R are true but R does not explain A.



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Ans. (a)

33. Pocus on social environment is related to the:

(a) Human Relations

(b) Unity of direction

(c) Unity of command


Ans. (a)

34. Which of the following are associated with the Scientific Management Movement?

1. Functional-Foremanship

2. Centralization

3. Time and motion study

4. Unity of command

Select the correct answer from the codes given below:

(a) l and 3

(b) 2 and 4

(c) l, 2 and 3

(d) 2, 3, and 4

Ans. (a)35. Commercial banks are now permitted to I undertake to the business of:

(a) Equipment leasing

(b) Mutual funds

(c) Factoring

(d) All of these

Ans. (d)

36. Marketing research data is gathered by:

(a) Observation

(b) In-depth interviews

(c) Controlled experiment

(d) All of the aboveAns. (d)

37. Who authored book Policy and Management?

(a) Gladden

(b) Weber

(c) Dimock

(d) Appleby

Ans. (d)

38. If the agreement is silent, an arbitration reference is to appoint:

(a) Sole arbitrator

(b) Two or more arbitrators

(c) Both (a) and (b)


Ans. (a)

39. Structure variable is synonymous with::

(a) Task

(b) Relations

(c) Styles

(d) Attitude

Ans. (a)

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40. The Banking Regulation Act, 1949, does not at all apply to:

(a) State Bank of India and its subsidiaries

(b) Nationalized Banks

(c) Foreign Banks having their offices in India

(d) Primary agricultural credit societies and co-operative and mortgagee banks

Ans. (d)

41. Which of the following is most likely to cause an immediate increase in the stage of the working

population?

(a) A rise in the average size of families

(b) An increase in the birth rate

(c) A fall in the death rate of the over 60 years old

(d) More favourable tax treatment of the earnings, married women

Ans. (d)

42. You are the manager of a firm.

Which of the following activities do you initiate first?

(a) Planning

(b) Organizing

(c) Staffing(d) Directing

Ans. (a)

43. The Industrial Finance Corporation, of India came into existence in

(a) July, 1948

(b) August, 1968

(c) September, 1951

(d) None of these

Ans. (a)

44. A court has power to:

(a) Modify the award of an arbitrator with his consent

(b) Modify the award subject to the consent of the parties(c) Nullify the arbitration agreement

(d) None of these

Ans. (d)

45. The three objectives of scientific management are:

1. Standardization of working conditions

2. Standardization of work methods

3. Planning of large daily tasks

4. Maximization of employment

Select the correct code from the following:

(a) l, 2 and 4

(b) l, 2 and 3

(c) 2, 3 and 4

(d) 1, 3 and 4

Ans. (c)

46. Scientific management addressed itself to the problems of:

(a) Bottom part of organization

(b) Top management

(c) Middle tier of management

(d) All of the above

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Ans. (d)

47. Which of the following is not a typically used procedure to reduce the total number of employees?

(a) Lay off

(b) Terminations

(c) Downturns

(d) Early retirement in inducements

Ans. (d)

48. You require capital for purchase of fixed assets. What is this capital called :

(a) Floating capital

(b) Reserve capital

(c) Circulating capital

(d) Fixed capital

Ans. (a)

49. Who is the final authority for deciding the design, form and material of bank notes?

(a) Central Government

(b) Reserve Bank of India

(c) Indian Banks Association

(d) Note Issuing Authority of IndiaAns. (c)

50. Who is author of The Function of the Executive?

(a) Chester Bernard

(b) Cart Rogers

(c) A. H. Maslow

(d) E. Mayo

Ans. (a)

Documents

Paper 2006-2011