CBSE NET Management September-2013 Solved Paper II

  1. The sum of the value of all final goods and services produced within a country and net factor income from abroad is termed as

    1. GNP

    2. Nominal GDP

    3. NNP

    4. Real GDP

    Answer: a

  2. If a firm raises Rs. 1, 00, 000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that equates the present value of cash inflows with the present value of cash outflows is referred to as

    1. Explicit cost

    2. Implicit cost

    3. Specific cost

    4. Future cost

    Answer: a

  3. The major objective of economists to monopolies is

    1. Lack of technological progress in such industries.

    2. The dangerous impact on democratic government.

    3. The inability in an industry where there is a single producer.

    4. The tendency to restrict output and charge higher price.

    Answer: d

    • Statement 1: I: Demand for a commodity refers to quantity of the commodity demanded at a certain price during any particular period of time.
    • Statement 2: II: Contraction of demand is the result of increase in the price of the goods concerned.
    1. Both I & II are correct.

    2. Both I and II are incorrect.

    3. I is correct and II is incorrect.

    4. II is correct and I is incorrect.

    Answer: a

  4. Match the items given in List-I with most suitable options given in List-II.

    List-I List-II
    1. Rate of dscount which equates the net present value to zero.

    2. Ratio of present value of cash inflows to the cash outflow.

    3. Percentage of annual net income earned on average fund invested in a project.

    4. Investment divided by annual net cash inflow.

    1. Payback period

    2. Internal Rate of Return

    3. Profitability Index

    4. Average Rate of Return

    • A
    • B
    • C
    • D
      • 3
      • 2
      • 4
      • 1
      • 3
      • 2
      • 1
      • 4
      • 2
      • 3
      • 4
      • 1
      • 2
      • 3
      • 1
      • 4

    Answer: c

  5. The process through which individuals attempt to determine the causes behind others'behaviour is known as

    1. Perception

    2. Attitude

    3. Attribution

    4. Social identity theory

    Answer: c

  6. Which theory of human motivation focuses on personal perceptions of the performance process?

    1. Adam's Theory of Inequality

    2. McClelland's Need Theory

    3. Vroom's Expectancy Theory

    4. Alderfer's ERG Theory

    Answer: c

  7. Annual Reports, Balance Sheets, Brochures and Advertisements in organisational communication are the means to aim at

    1. Influencing

    2. Image building

    3. Group building

    4. Credibility building

    Answer: b

  8. Match the following:

    List-I List-II
    1. Attitudes

    2. Job Satisfaction

    3. Prejudice

    4. Stereo types

    1. Beliefs that individuals possess certain characteristics because of their membership in certain groups.

    2. Negative attitude toward the members of specific groups, based solely on the fact that they are members of those groups.

    3. Positive or negative attitudes held by individuals toward their jobs.

    4. Relatively stable clusters of feelings, beliefs and behavioural intentions toward specific objects, people or institutions.

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 2
      • 3
      • 4
      • 1
      • 3
      • 4
      • 1
      • 2
      • 4
      • 3
      • 2
      • 1

    Answer: d

  9. Match the following:

    List-I List-II
    1. Delegating

    2. Situational theory

    3. Grid training

    4. Participative Leadership

    1. A function of a situation wherein a leader is effective only when the styles used to influence and alter the situation is appropriate.

    2. Low nurturing and low regulating behaviour.

    3. A function of a situation wherein a leader permits subordinates to take part in decision making and permit them a considerable degree of autonomy.

    4. A multi-step process designed to cultivate concern for people and concern for production.

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 2
      • 1
      • 4
      • 3
      • 3
      • 2
      • 4
      • 1
      • 4
      • 3
      • 1
      • 2

    Answer: c

  10. On-the-job training methods are not based on

    1. Demonstration methods

    2. Interactive methods

    3. Vestibule Training methods

    4. Apprentice training method

    Answer: b

  11. Minimum wage means

    1. Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and provision for evil days.

    2. Wages paid in proportion to workman's work efficiency.

    3. A wage sufficient to satisfy the workman's basic needs.

    4. A sum of money paid under contract by an employer to a workman for services rendered.

    Answer: c

  12. Which of the following statement is true?

    1. Profit sharing is an agreement freely entered into by which the employees receive share fixed in advance from the organization's profits.

    2. An experiment in profit shares on a wide scale would therefore be definitely undertaking a voyage of an unchartered sea.

    3. Profit distribution under a profit sharing plan are used to fund employee retirement plans.

    4. All of the above:

    Answer: d

  13. Performance appraisal includes

    1. Check reviews done by the supervisors.

    2. Review his performance in relation to the objectives and other behaviours.

    3. Promote employees for self-appraisal.

    4. All of the above:

    Answer: d

  14. Match the following:

    1. Human Resource Strategy 1. A goal-directed approach in which workers and their supervisors set goals together for the upcoming appraisal period.

    2. Compensation 2. Time during which employees can choose not to be at work.

    3. Flexitime 3. A legally required benefit that provides medical care, income continuation and rehabilitation expenses.

    4. Management by Objectives 4. A firm's deliberate use of human resources to help it to gain or maintain an edge against its competitors.

    Codes:

    A B C D

    1. 1 2 3 4

    2. 4 3 2 1

    3. 2 3 4 1

    4. 3 4 1 2

    Answer: b

  15. In which case, the acquirer puts pressure on the management of the target company by threatening to make an open offer; the board capitulates straight away and agrees for settlement with the acquirer for change of control.

    1. Poison Put

    2. Bear Hug

    3. Poison Pill

    4. None of the above

    Answer: b

  16. Which of the following method of incorporation of risk in the capital budgeting decision framework is useful for situations in which decisions at one point of time also affect the decisions of the firm at some later date?

    1. Certainty Equivalent Approach

    2. Probability Distribution Approach

    3. Risk-adjusted Discount Rate Approach

    4. Decision-tree Approach

    Answer: d

  17. In which of the approach, the market value of the firm depends upon the EBIT and the overall cost of capital

    1. Net Income Approach

    2. Net Operating Income Approach

    3. Modigliani-Miller Approach

    4. None of the above

    Answer: b

  18. Which is the assumption of Modigliani and Miller approach to cost of capital?

    1. The firms can be classified into homogeneous risk class.

    2. The capital markets are assumed to be perfect.

    3. All investors have the same expectations from a firm's net operating income which is necessary to evaluate the value of a firm.

    4. All of the above:

    Answer: d

  19. Match the following:

    List-I (Functions of Finance) List-II (Significance)
    1. Financial Statements

    2. Administration of Tax

    3. Internal Audit

    4. Budgeting

    1. Check on Financial Activities

    2. Reduction of Tax Liability

    3. Allocation of Fund

    4. Income Statement

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 4
      • 3
      • 2
      • 1
      • 4
      • 2
      • 1
      • 3
      • 2
      • 3
      • 4
      • 1

    Answer: c

  20. A deliberate and careful choice of organisation, product, price promotion, place strategies and policies best define the concept of

    1. Marketing Mix

    2. Product Mix

    3. Market Penetration

    4. Market Segmentation

    Answer: a

  21. Rational motives in buying process are explained as

    1. Motives based on careful, logcal reasoning and self-acceptance.

    2. Motives based on sensual satisfaction, fear and entertainment.

    3. Activity buyer adopts to satisfy buying needs.

    4. All of the above:

    Answer: a

  22. Which of the following combination, according to hierarchy of effects model is correct?

    1. Awareness – Liking – Knowledge – Conviction – Preference – Purchase.

    2. Awareness – Knowledge – Liking – Preference – Conviction – Purchase.

    3. Awareness – Liking – Knowledge – Conviction – Purchase – Preference.

    4. Awareness – Preference – Knowledge – Liking – Preference – Purchase.

    Answer: b

  23. This consists of two lists of statements or terms and the candidate has to match an item in one list with an item in the other.

    List-I (Statement) List-II (Terms)
    1. Brands which are evaluated for the purchase decision.

    2. Brands which are considered by the buyer for evaluation.

    3. Brands which are disliked and avoided.

    4. Brands which the buyer is aware but is indifferent towards it.

    1. Consideration set

    2. Evoked set

    3. Inept set

    4. Inert set

    • A
    • B
    • C
    • D
      • 2
      • 3
      • 1
      • 4
      • 1
      • 2
      • 3
      • 4
      • 2
      • 1
      • 3
      • 4
      • 2
      • 1
      • 4
      • 3

    Answer: b

  24. “Marketing concept is the recognition on the part of management that all business decisions at the firm must be made in the light of customer needs and wants, hence that all marketing activities must be under one supervision and that all activities of a firm must be coordinated at the top in the light of market requirements.” Who said it?

    1. Lazo and Carton

    2. Schwartz G

    3. King RL

    4. C. P. Mc Namara

  25. Which one of the following is not a qualitative forecasting method?

    1. Educated guess

    2. Executive Committee Consensus

    3. Delphi method

    4. Linear regression method

    Answer: d

  26. Statement A Mean (–X) chart do not give the desired result about process variability. Statement B: Range (R) chart monitors process variability.

    1. Statement A is correct, but Statement B is false.

    2. Statement B is correct, but Statement A is false.

    3. Both Statements 1 and 2 are correct.

    4. Both Statements 1 and 2 are false.

    Answer: c

  27. Which one is not a part of control charts for attributes?

    1. P-chart

    2. σ-chart

    3. np-chart

    4. c-chart

    Answer: b

  28. There are different phases in a Operations Research Project. They are

    1. Research phase

    2. Action phase

    3. Judgement phase

    The correct sequence of these phases is

    1. 1, 2, 3

    2. 3, 1, 2

    3. 2, 3, 1

    4. 3, 2, 1

    Answer: b

  29. The Graphical method can be used to solve

    1. A Linear Programming Problem (LPP) with all integer data.

    2. A LPP with two decision variables.

    3. Any LPP.

    4. A transportation problem with two origins and two destinations.

    Answer: b

  30. A vendor can make a profit of Rs. 3, 000 with a probability of 0.4 or make a loss of Rs. 1, 000 with a probability of 0.6. What is his expected profit?

    1. Rs. 600

    2. Rs. 800

    3. Rs. 1, 000

    4. Rs. 500

    Answer: a

  31. If the sample size is less than 50, which non parametric test can be used to test the independence of attributes?

    1. Chi-square test

    2. Fisher Irwin test

    3. Cochran Q test

    4. Kruskal Wallis test

    Answer: b

  32. Match the items given in List-I with most appropriate options given in List-II.

    List-I List-II
    1. Centroid Method

    2. Hierarchical Method

    3. Relationship between a single metric dependent and two or more independent variables

    4. The main and interactive effects of categorical variables on multiple dependent interval variables.

    1. Multiple Regression

    2. Factor Analysis

    3. MANOVA

    4. Cluster Analysis

    • A
    • B
    • C
    • D
      • 4
      • 2
      • 1
      • 3
      • 2
      • 4
      • 1
      • 3
      • 2
      • 4
      • 3
      • 1
      • 4
      • 3
      • 1
      • 2

    Answer: b

  33. Identify the window not associated with SPSS.

    1. Editor

    2. Syntax

    3. Output

    4. Format Cells

    Answer: d

  34. Match the items given in Column-A with the items given in Column-B. Column – A Column-B

    1. A process to upgrade the quality of the data before it is moved into a data warehouse. 1. Pattern recognition

    2. A system that is used to run the business in real time and is based on current data. 2. Data Scrubbing

    3. A critical success factor in data mining of large data store. 3. Operational system

    Codes:

    1 2 3

    1. 2 3 1

    2. 3 2 1

    3. 1 2 3

    4. 2 1 3

    Answer: a

  35. In BCG Matrix which division represents the organisation's best long-run opportunities for growth and profitability?

    1. Question marks

    2. Stars

    3. Cash Cows

    4. Dogs

    Answer: b

  36. In a comprehensive strategy formulation framework which matrix reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies.

    1. SPACE Matrix

    2. SWOT Matrix

    3. QSPM Matrix

    4. Competitive Profile Matrix (CPM)

    Answer: c

  37. Stage 2 of strategy formulation consists of

    1. EFE Matrix, the IFE Matrix and the Competitive Profile Matrix (CPM).

    2. SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal-External (IE) Matrix, and the Grand Strategy Matrix.

    3. Quantitative Strategic Planning Matrix (QSPM).

    4. EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix (QSPM).

    Answer: b

  38. Match the following: Term Explanation

    List-I List-II
    1. Strategy

    2. Vision

    3. Mission

    4. Objectives

    1. Enduring statements of purpose that distinguish one business from other simple firms.

    2. Specific results that an organization seeks to achieve.

    3. What do we want to become?

    4. Means by which long term objectives will be achieved.

    • A
    • B
    • C
    • D
      • 4
      • 3
      • 1
      • 2
      • 4
      • 2
      • 3
      • 1
      • 1
      • 3
      • 2
      • 4
      • 1
      • 2
      • 3
      • 4

    Answer: a

  39. Match the following:

    List-I List-II
    1. Italian Culture

    2. American Culture

    3. Mexican Culture

    4. Japanese Culture

    1. Importance on group loyalty and consensus

    2. Employment as workers of those who are agreeable, respectful and obedient rather than innovative, creative and independent.

    3. Willing to do business with individuals they do not know.

    4. A culture where in you do not soften up executives with praise before criticize.

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 4
      • 3
      • 2
      • 1
      • 2
      • 3
      • 4
      • 1
      • 3
      • 4
      • 1
      • 2

    Answer: b

  40. An Entrepreneur who is dominated more by customs, religions, traditions and past practices and he is not ready to take any risk is called as

    1. Drone Entrepreneur

    2. Adoptive Entrepreneur

    3. Fabian Entrepreneur

    4. Innovative Entrepreneur

    Answer: c

  41. “Poverty is an artficial creation. It does not belong to human civilization and we can change that and can make people come out of poverty through redesigning our institutions and policies.” This preamble refers to

    1. Women Entrepreneurship

    2. Corporate Entrepreneurship

    3. Social Entrepreneurship

    4. None of the above

    Answer: c

  42. Match the following:

    List-I (Subject) List-II (Technique)
    1. Entrepreneurship

    2. Marketing

    3. Inventory Management

    4. HR Planning

    1. Innovation

    2. Promotion Mix

    3. Reorder Level

    4. Appraisals

    • A
    • B
    • C
    • D
      • 1
      • 3
      • 2
      • 4
      • 1
      • 2
      • 3
      • 4
      • 4
      • 3
      • 2
      • 1
      • 4
      • 2
      • 3
      • 1

    Answer: b

  43. _______ means identifying and imitating the best in the world at specific tasks and functions.

    1. Quality circle

    2. Outsourcing

    3. Bench marking

    4. Continuous Improvement

    Answer: c

  44. Match the following:

    List-I List-II
    1. Action planning

    2. Accountability

    3. Working the plan

    4. Reviewing the progress

    1. New Actions are taken and old habits are broken.

    2. It is the periodic review of what has already been executed.

    3. It is the art of delegation to implement a business plan.

    4. Making decisions relating to the order in which the Business plan is implemented.

    • A
    • B
    • C
    • D
      • 2
      • 3
      • 4
      • 1
      • 4
      • 3
      • 1
      • 2
      • 1
      • 4
      • 3
      • 2
      • 3
      • 4
      • 2
      • 1

    Answer: b

  45. Which of the following duties is not a general duty of directors of a company?

    1. Duty of good faith

    2. Duty of care

    3. Duty to attend Board Meeting

    4. Duty not to delegate

    Answer: c

  46. The principles to be followed for corporate social responsibility are

    1. involvement of stakeholders.

    2. maintaining transparency in reporting.

    3. independent verification of policies and outcome.

    4. All of the above:

    Answer: d

  47. Match the following:

    List-I List-II
    1. Value

    2. Unethical behaviour

    3. Indian ethos

    4. Environmental responsibility

    1. Aham Brahmasmi

    2. Recycling Waste

    3. Bribery

    4. Trust worthiness

    • A
    • B
    • C
    • D
      • 1
      • 3
      • 2
      • 4
      • 4
      • 3
      • 1
      • 2
      • 2
      • 3
      • 4
      • 1
      • 1
      • 3
      • 4
      • 2

    Answer: b

  48. The obligation of an organization behave in a ethical way is known as

    1. Knowledge about ethics

    2. Social responsibility of business

    3. Organisational behaviour

    4. Business without ethics

    Answer: b

  49. Identify the correct sequence of steps in a value identification process:

    1. Define the role of executive in leading the staff.

    2. Learn about and discuss the power of shared values.

    3. Obtain consensus that the leaders are committed to creating value based workplace.

    4. Provide written material the executives can share with their reporting staff.

    Codes:

    1. 1, 2, 3 and 4

    2. 4, 2, 3 and 1

    3. 2, 3, 1 and 4

    4. 2, 3, 4 and 1

    Answer: c