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:
ABC (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 other securities 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:

(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. (d) A is false but R is true. 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:
ABCD (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

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 these Ans. (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 of fixed 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. (c) A is true but R is false. (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

(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 (d) None of the above 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

(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:
ABCD (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 the superior.

Codes:
(a.) A and R are true and R explains A. (b) A and R are true but R does not explain A. (c) A is true but R is false. (d) A is false but R is true.

Ans. (a) 33. Pocus on social environment is related to the: (a) Human Relations (b) Unity of direction (c) Unity of command (d) None of the above 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 above Ans. (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) (d) None of the above Ans. (a) 39. Structure variable is synonymous with:: (a) Task (b) Relations (c) Styles (d) Attitude Ans. (a)

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

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 India Ans. (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)