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U/2015/24/II/A2

1. Economists say that there has to be someform of rationing whenever—(A) There is excess demand(B) Merit goods are produced(C) There are externalities(D) Inflation occurs

2. The equation for Anna’s demand curve forCDs is Q = 20 – 0.5 P. If the price of a CD is£ 18, consumer surplus will be—(A) £ 242 (B) £ 11(C) £ 198 (D) £ 121

3. Which of the following statements bestdescribes the outcome under monopolisticcompetition ?(A) It is not efficient because too little output

is produced, but is efficient in that theoutput produced is produced atminimum average total cost.

(B) It is not efficient because too little outputis produced and the output that isproduced is produced at a cost aboveminimum average total cost.

(C) It is efficient because entry is free andeconomic profits are eliminated in thelong run.

(D) It is efficient because the right amountof output is produced, but not efficientin that the output produced is producedat a cost above minimum average totalcost.

4. Externalities are a problem only if—(A) All firms are perfectly competitive(B) Decision makers do not take them into

account(C) All firms are monopolistic(D) The extemities are negative

5. An index of prices of all domesticallyproduced goods in the economy is the—(A) Producer Price Index (PPI)(B) Wholesale Price Index (WPI)(C) Consumer Price Index (CPI)(D) GDP deflator

6. In the Tuckman model, groups at the ..........stage develop guidelines and standards ofacceptable behaviour.(A) Norming (B) Adjourning(C) Forming (D) Storming

7. According to Organisational CultureInventory (OCI), an organisation in whichmembers are encouraged to work together inways that meet higher order human needs isclassified as having a ............ culture.(A) Constructive(B) Motivational(C) Passive(D) High Achievement

8. The bank wiring room experiment, part ofthe Hawthorne experiments at the WesternElectric Company in America, found that—(A) Natural leaders who emerged with the

consent of the members were most effective(B) Formally appointed supervisors were

most effective(C) Natural leaders who emerged without the

consent of the members were most effective(D) Formally appointed leaders were most

effective

9. McClelland’s Achievement Motivation Theorystates that people with a high achievementneed have a preference for—(A) Clear and unambiguous feedback(B) Attaining success through their own

efforts rather than through teamwork(C) Moderate task difficulty(D) All the above

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U/2015/24/II/A3

10. According to Henry Mintberg, managersperform three roles. Indicate the one rolewhich is not among them—(A) Decisional (B) Informational(C) Interpersonal (D) Supervisory

11. What is meant by a ‘golden hello’ ?(A) Cash lump sums offered to new recruits(B) Cash lump sum promised to employees

who stay on in the organisation(C) Cash lump sum promised to people who

refer a friend(D) Cash lump sum offered to people

leaving the organisation

12. What is the meaning of upward appraisal ?(A) Senior managers rate the performance

of line managers(B) Line managers rate the performance of

employees(C) Employees rate the performance of their

manager(D) Employees rate the performance of their

peers

13. Which of the following is not the element/component of HRM—(A) Acquisition (B) Motivation(C) Development (D) Quality Assurance

14. What is the key difference between EqualOpportunities (EO) and Diversity ?(A) Diversity is driven by a business case

for EO(B) EO is focused upon rewarding

employers who promoted diversity(C) EO focuses upon compliance with

legislation(D) Diversity is concerned with the celaboration

of the characteristics of diverse groups

15. Which of the following Acts has a directrelevance for grievance handling practices ?(A) The Industrial Employment (Standing

Order) Act, 1946(B) The Industrial Disputes Act, 1947(C) The Factories Act, 1948(D) All the above

16. Assume that the interest rate is higher thanzero. Which of the following cash-inflowstreams totaling $ 1,500 would you prefer ?The cash flows are listed in order for Year 1,Year 2 and Year 3, respectively—(A) $700 $500 $300(B) $300 $500 $700(C) $500 $500 $500(D) Any of the above, since each sums to

$1,500

17. Under the Walter Model, if the rate of returnis higher than the cost of capital—(A) Price per share does not vary with the

increase or decrease in dividend pay-outratio

(B) Price per share increases as the dividendpay-out ratio increases

(C) Price per share increases as the dividendpay-out ratio decreases

(D) None of the above

18. Which of the following would not improvethe current ratio ?(A) Borrow short term to finance additional

fixed assets(B) Issue long-term debt to buy inventory(C) Sell common stock to reduce current

liabilities(D) Sell fixed assets to reduce accounts

payable

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U/2015/24/II/A4

19. When operating under a single-periodcapital-rationing constraint, you may firstwant to try selecting projects by descendingorder of their ........... in order to give yourselfthe best chance to select the mix of projectsthat adds most to firm value.(A) Profitability index (PI)(B) Net present value (NPV)(C) Internal rate of return (IRR)(D) Payback period (PBP)

20. The capital budgeting appraisal criterion thatis most appropriate in the situation of capitalrationing will be—(A) Payback period(B) Internal rate of return(C) Net present value(D) Profitability index

21. Providing free samples of perfumes (scent)in magazines is an example of which of thefollowing ?(A) Classical conditioning(B) Operant conditioning(C) Social learning(D) Behavioural learning

22. Brands are capable of triggering associationsin the minds of consumers. Theseassociations may sometimes enableconsumers to construe ............. meaningassociated with a particular brand.(A) Physical (B) Sociological(C) Psychosocial (D) Cognitive

23. Relationship marketing aims at buildingmutually satisfying long term relations with—(A) Customers(B) Employees(C) Marketing partners(D) All the above

24. This is a group of people in the process ofdiffusion who enjoy being at the leading edgeof innovation and buy into new products atan early stage—(A) Late majority (B) Early adopter(C) Early majority (D) Laggards

25. By lowering prices to attract customersduring quieter times and raising prices whendemand is at its highest, demand can belevelled and marginal revenues increased.This is an example of—(A) Differential pricing(B) Demand-based pricing(C) Service-based pricing(D) Intangible pricing

26. In inventory control, which one of thefollowing factors does not affect the ROL(Re-Order-Level) ?(A) Average Daily Usage(B) Lead Time(C) Safety Stock(D) Holding Costs

27. The 4 costs of quality are, external failurecosts, internal failure costs, assurance costsand ............. costs.(A) Inspection (B) Prevention(C) Performance (D) Insurance

28. A critical path network diagram does not—(A) Calculate earned-value(B) Identify the particularly important

activities(C) Help determine the amount of float(D) Calculate the duration of the whole

project

29. The LCL in the R control charts when n ≤ 6is—(A) 1.0 (B) 0.5(C) 0 (D) None of these

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U/2015/24/II/A5

30. In the growth stage of the product/service lifecycle, the operation is likely to focus onwhich combination of performanceobjectives ?(A) Dependability, quality and Cost(B) Speed, Quality and Cost(C) Speed, Dependability and Cost(D) Speed, Dependability and Quality

31. The target population can be defined in termsof—(A) Elements — the object about which

information is desired(B) Extent — the geographical boundaries(C) Sampling units — the set of elements

available for selection during thesampling process

(D) All the above

32. XYZ Inc. produces two types of paper towels,called regular and super-soaker. Regular uses2 units of recycled paper per unit ofproduction and super-soaker uses 3 units ofrecycled paper per unit of production. Thetotal amount of recycled paper available permonth is 10,000. Let X1 be the number ofunits of regular produced per month and X2represent the number of units of super-soakerproduced per month, the appropriateconstraint/s will be—(A) 2X1 + 3X2 = 10000(B) 2X1 + 3X2 ≤ 10000(C) 2X1 + 3X2 ≥ 10000(D) 2X1 = 3X2

33. Testing the probability of a relationshipbetween variables occurring by chance aloneif there really was no difference in thepopulation from which that sample wasdrawn is known as—(A) Chi-squared test(B) Multiple regression analysis(C) Correlation coefficients(D) Significance testing

34. Which of the following is not based on squared

deviations from the regression line ?

(A) The coefficient of correlation

(B) The coefficient of determination

(C) The standard deviation

(D) The standard error of estimate

35. The simple probability of the occurrence of

an event is called the—

(A) Bayesian probability

(B) Conditional probability

(C) Joint probability

(D) marginal probability

36. Low cost, product differentiation, and

focused market are the examples of—

(A) corporate strategy

(B) Business strategy

(C) Functional strategy

(D) Behavioural strategy

37. Match the following—

List - I List - II

(a) How do we succeed(1) Functional

in this business Strategy

(b) What business should(2) Business

we be in Strategy

(c) How does this unit (3) Corporate

Contribute Strategy

Code—

(a) (b) (c)

(A) 1 2 3

(B) 3 2 1

(C) 1 3 2

(D) 2 3 1

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U/2015/24/II/A6

38. Match the following—

List - I List - II(a) Retrenchment (1) Reduction

Strategy

(b) Combination (2) Filled/used

Strategy

(c) Stability Strategy(3) Maintain present

course

(d) Growth Strategy (4) PLC

Code—(a) (b) (c) (d)

(A) 1 2 3 4

(B) 4 2 1 3

(C) 1 4 3 2

(D) 3 1 2 4

39. The most extreme rivalry results from—

(A) A high level of differentiation

(B) Few competitors, slow industry growth,

lack of differentiation, high fixed or

storage costs

(C) Numerous equally balanced competitors,

manufacturing capacity increases only

in large increments, low exit barriers

(D) Numerous equally balanced competitors,

slow industry growth, high fixed costs

40. Cadbury Schweppes have a policy that, no

matter how unusual, all payments are

recorded in the company’s books. This rule

is—

(A) Overly cumbersome

(B) Designed to minimize improper and

unethical conduct

(C) Aimed at encouraging managers to

make better budgetary decisions

(D) Directed at protecting client confidentiality

41. Weber’s greatest contribution to the study ofentrepreneurship resulted from his work on—(A) The personal attributes of entrepreneurs(B) Charisma and the Protestant ethics(C) Bureaucracy(D) Cultural value

42. Entrepreneurship means—(A) The function of creating something new(B) Undertaking risk(C) Handling economic uncertainty(D) All the above

43. When formulating a mission statement for abusiness, there are 4 criteria that need to betaken into consideration. Which of thefollowing is not one of them ?(A) focused and capable of differentiating

the business from its competitors(B) Targeted on its customers and clear

about the level of service being offered(C) Sufficiently broad to allow the business

to grow and realize its potential(D) Concise and capable of being

memorised

44. According to Greiner’s (1972) GrowthModel, firms pass through a series of stages,each of which is followed by a period ofcrisis. Which crisis follows Greiner’s initialcreativity stage ? Is it—(A) Red tape (B) Autonomy(C) Control (D) Leadership

45. ............ means identifying and imitating thebest in the world at specific tasks.(A) Quality circle(B) Bench marking(C) Strategy(D) Outsourcing

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U/2015/24/II/A7

46. Which statement represents a challenge to

Evan’s and Freedman’s defense of the

stockholder theory against the classical

model of corporate social responsibility ?

(A) The law now recognizes a wide range of

managerial obligations to such

stakeholders as consumers, employees,

competitors, the environment, the disabled

(B) Courts and legislatures have recognized

that the rights and interests of various

constituencies affected by corporate

decisions limit managers’ fiduciary

responsibility

(C) Stakeholder theory cannot answer the

question as to how exactly a manager

should go about balancing the diverse

and competing claims of all parties

(D) There is no guarantee that when

managers produce profits they will serve

the interests of either stockholders or the

public

47. Identify the statement that is consistent with

utilitarian ethical theory—

(A) Adhering to a set of principles may well

forbid and act that would otherwise

provide overall net good consequences.

(B) No act is ever morally right or wrong in

all cases, in every situation. It will all

depend on the act’s consequences

(C) Some actions like murder, theft, rape,

and lying are wrong of their very nature,

the kind of acts they are. No amount of

net good consequences could ever

justify them

(D) The end never justifies the means

48. Select the statement that is not a criticism ofinsider trading—(A) The insider benefits inappropriately by

buying or selling the stock at a price(B) An insider can benefit by trading on bad

news as well as good, and this might bean incentive to work against the firm’sbest interests

(C) The insider’s action sends the correctmessage to the market, reflecting thestock’s true value, moving the markettoward equilibrium

(D) The insider’s information is often usedwithout the firm’s permission in a waythat harms the stockholder’s interests

49. Select the practice that is not a form ofconsumer manipulation—(A) Cigarette advertising aimed at children(B) Ads aimed at elderly population for such

goods as medicare supplementaryinsurance, casinos and gambling,nursing homes, and funeral services

(C) Researching the criteria that a typicalbuyer uses to select a particular makeand model of automobile

(D) Selling an extended automobilewarranty or theft protection products toa customer who is anxious about thewhole process of buying an automobile

50. Choose the action that exemplifiesaffirmative action, i.e., taking extra steps thatmove beyond passive nondiscrimination—(A) Advertising in media that appeals to

women or minorities(B) Deliberately recruiting qualified women

and minority candidates(C) Providing special support through the

human resources office for women orpeople of colour who are hired

(D) All the above

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