CBSE NET Management December-2013 Solved Paper III

  1. Match the items of List-I with those of List-II and give the correct code from the following:

    List-I List-II
    1. Sales Maximisation Model

    2. Managerial Discretion Model

    3. Integrative Model

    4. Behavioural Model

    1. John Williamson

    2. RM Cyert and J. G. March

    3. William J. Baumol

    4. Oliver Williamson

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

    Answer: b

  2. Match the items of the following two lists and give the correct code for the following:

    List-I List-II
    1. Scale of Preferences

    2. Inadequate Explanation of Giffen Goods

    3. Curves always slope negatively

    4. Inseparation of Income and Substitution affects

    1. Indifference Curves

    2. Ordinal Utility

    3. Demand Curves

    4. Marshallian Utility Analysis

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

    Answer: c

  3. Cost-plus pricing is not suitable for

    1. Monopoly Pricing

    2. Product Tailoring

    3. Refusal Pricing

    4. Monopsony Pricing

    Answer: a

  4. Indicate the correct code matching the items of List-I with those in List-II as follows:

    List-I List-II
    1. Resorting to New Technology

    2. Excess Capacity of the Plant

    3. Employees'Training Centres

    4. Reserve Capacity of the Plant

    1. Cost reduction through output expansion

    2. Constant cost despite output expansion

    3. Internal Economies

    4. External Economies

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

    Answer: b

  5. In a mixed economy, the central problems are solved through which of following?

    1. Price mechanism

    2. Regulated market mechanism

    3. Market mechanism and economic planning

    4. Economic planning and control

    Answer: c

  6. Indicate the correct code matching the items in List-I with those in List-II as follows:

    List-I List-II
    1. Excess of aggregate investment over aggregate savings, at full employment level

    2. Equality of aggregate income and savings

    3. Comparatively greater decrease in income following a decrease in investment

    4. Aggregate expenditure being less than national income at full employment level

    1. Stability of National Income

    2. Recessionary gap

    3. Multiplier effect

    4. Inflationary gap

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

    Answer: b

  7. The study of gestures and body postures for their impact on communication is known as:

    1. Kinesics

    2. Proximics

    3. Semantics

    4. Informal channels

    Answer: a

  8. Which of the following deals with “what, why, when and how” tasks to be performed?

    1. Job Analysis

    2. Job Description

    3. Job Specification

    4. Job Enrichment

    Answer: b

  9. According to Henry Mntberg, managers perform three roles. Indicate the one role which is not among them.

    1. Decisional

    2. Informational

    3. Interpersonal

    4. Supervisory

    Answer: d

  10. The Ringlemann effect describes

    1. The tendency of groups to make risky decisions

    2. Social loafing

    3. Social facilitation

    4. The satisfaction of members'social needs

    Answer: b

  11. The term “workforce diversity” refers to differences in race, age, gender, ethnicity, and _______ among people at work.

    1. Social status

    2. Personal wealth

    3. Able-bodiedness

    4. Political preference

    Answer: c

  12. Match the following and indicate the correct code:

    List-I List-II
    1. A form of learning through association that involves the manipulation of stimuli to influence behaviour

    2. The process of controlling behaviour by manipulating its consequences

    3. Something that incites action

    4. The administration of a consequence as a result of behaviour

    1. Stimulus

    2. Reinforcement

    3. Operant conditioning

    4. Classical conditioning

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

    Answer: d

  13. Which of the following techniques permits the complainant to remain anonymous?

    1. The exit interview

    2. The gripe-box system

    3. The opinion survey

    4. None of the above

    Answer: b

  14. Which of the following Acts has a direct relevance for grievance handling practices?

    1. The Industrial Employment (Standing Order) Act, 1946

    2. The Industrial Disputes Act, 1947

    3. The Factories Act, 1948

    4. All of the above

    Answer: d

  15. That the authority rests solely with the management with no right to anyone to challenge is the basis of the

    1. Pluralist Approach

    2. Systems Approach

    3. Unitary Approach

    4. Social Action Approach

    Answer: c

  16. Which of the following is not a welfare provision under the Factories Act, 1948?

    1. Canteen

    2. Crèches

    3. First Aid

    4. Drinking water

    Answer: d

  17. A person who has ultimate control over the affairs of the factory under the Factories Act, 1948 is called

    1. Occupier

    2. Manager

    3. Chairman

    4. Managing Director

    Answer: a

  18. In which of the following methods grievances are ascertained at the time of employees quitting the organisation?

    1. The exit interview method

    2. The gripe-box system

    3. The open-door policy

    4. Opinion surveys

    Answer: a

  19. Redressal of employees'grievances covers

    1. Positive attitude towards employees'grievances and readiness to help

    2. Expediting machinery for resolving employees'grievances

    3. Equitable salary system for all

    4. Both A and (B)

    Answer: d

  20. Which of the following are most closely interconnected?

    1. Leadership and organization structure

    2. Leadership and motivation

    3. Leadership and planning

    4. Leadership and performance appraisal

    Answer: b

  21. _______ is defined as disputes between parties submitted and decided by a neutral third party.

    1. Collective Bargaining

    2. Affirmation Action

    3. Arbitration

    4. Negotiation

    Answer: c

  22. The appropriate method to derive the growth rate according to Dividend-Growth Model for equity valuation is

    1. Growth rate of sales over a period of time

    2. Plough-back ratio multiplied with return-on-equity

    3. Plough-back ratio multplied with net profit margin

    4. Growth rate of fixed assets over a period of time

    Answer: b

  23. Match the items given in List-I and List-II and indicate the correct code:

    List-I List-II
    1. The technique used in examining the effect of change in one variable at a time

    2. The process of developing the frequency distribution of Net Present Value

    3. The technique used in examining the chances of Net Present Value being greater than zero

    4. The technique used when investment at a future date is to be decided based on the probable outcome of previous investment

    1. Hillier Model

    2. Sensitivity Analysis

    3. Decision tree

    4. Simulation

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

    Answer: b

  24. Match the correct option for each ofthe following approaches of Capital structure theories:

    List-I List-II
    1. The Net Income Approach

    2. The Net Operating Income Approach

    3. The Modigliani & Miller Proposition – I

    4. The Pecking Order Theory

    1. The market value of the firm is not affected by changes in the capital structure

    2. Declining weighted-average cost of capital

    3. The firms prefer to rely on internal accruals followed by debt finance and external finance

    4. The value of the firm depends on the earnings and risk of its assets rather than the way the assets have been financed

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

    Answer: c

  25. Under the Walter Model, if the rate of return is greater than the cost of capital:

    1. Price per share does not vary with the increase or decrease in dividend pay-out ratio.

    2. Price per share increases as the dividend pay-out ratio increases.

    3. Price per share increases as the dividend pay-out ratio decreases.

    4. None of the above:

    Answer: c

  26. Which one of the following is not the major objective of International Monetary Fund?

    1. Promoting co-operation among countries on international monetary issues.

    2. Giving loans to countries for the purpose of economic development.

    3. Promoting stability in the exchange rates.

    4. Promoting free mobility of capital across countries.

    Answer: b

    • Assertion (A): Management decisions to insure or hedge asset appear at best neutral mutation.
    • Reason (R): The price of systematic risk is identical for all the participants in the financial market.
    1. A is correct, but R is incorrect.

    2. A is incorrect, but R is correct.

    3. Both the A and the R are incorrect.

    4. Both the A and the R are correct.

    Answer: d

  27. Conservative policy of working capital refers to

    1. Situation with high investment in current assets

    2. Situation which stimulates sales

    3. Situation with frequent production stoppages

    Codes:

    1. 3 is correct.

    2. 2 is correct.

    3. 1 is correct.

    4. 1 and 2 are correct.

    Answer: d

  28. DUPONT analysis refers to

    1. Earning Per Share = (Net Profit/Number of Equity Shares)

    2. Return on Assets = (Net Profit Margin)/(Total Assets Turnover Ratio)

    3. Total Assets Turnover Ratio = (Sales Average)/(Total Assets)

    4. None of the above

    Answer: b

  29. Match the following and indicate the correct code:

    1. Mergers resulting into economies achieved primarily by eliminating the duplicate facilities 1. Conglomerate Merger

    2. Mergers resulting into expansion of company's business towards ultimate consumer or source of raw material 2. Horizontal Merger

    3. Mergers in unrelated line of business 3. Vertical Merger

    Codes:

    a b c

    1. 1 2 3

    2. 2 3 1

    3. 3 1 2

    4. 3 2 1

    Answer: b

  30. Consider the following:

    1. Usually people from the same culture, social class and occupation have the same life style.

    2. The consumer buying decision will involve the same stages regardless of whether the goods involved are low or high involvement.

    3. “Salesmen are born, not made.”

    4. The ultimate goal of a customer-oriented organization is to maximize its customer's satisfaction.

      1. All are true.

      2. 1 and 2 are false, others are true.

      3. 3 is true, others are false.

      4. All are false.

      Answer: d

  31. Cognitive dissonance is associated with which stage of the consumer buying decision process?

    1. Need recognition

    2. Information search

    3. Evaluation of alternative

    4. None of the above

    Answer: d

  32. Consider the following:

    1. Brand equity is a function of brand awareness and brand preference.

    2. Product lines tend to shorten over time.

    3. The Standards of Weights and Measures (Packaged Commodities) Rules, 1977 provide for the labelling rules relating to packaged commodities.

    4. AIDA Model is relevant to advertising as well as physical distribution.

    Indicate the correct answer.

    Codes:

    1. All the above statements are false.

    2. Only 3 is true.

    3. 1, 3 and 4 are true.

    4. Only 1 is true.

    Answer: b

  33. A marketer developing a brand name that is easy to pronounce would conduct:

    1. An association test

    2. A memory test

    3. A preference test

    4. A recall test

    Answer: d

  34. Before performing the business analysis for developing a new product, a company should beengaged in

    1. Idea screening

    2. Product development

    3. Marketing strategy development

    4. Product positioning

    Answer: c

  35. Relationship marketing aims at building mutually satisfying long term relations with

    1. Customers

    2. Employees

    3. Marketing partners

    4. All of the above

    Answer: d

  36. In the social-cultural arena, marketers may not understand

    1. People's views

    2. Organisation's views

    3. Society's views

    4. Government's views

    Answer: d

  37. A manufacturer of industral goods would use ______ sales force structure.

    1. Territorial

    2. Matrix

    3. Product

    4. Market

    Answer: d

  38. Which of the following is/are a type (s) of direct marketing?

    1. Direct-Response Advertising

    2. Personal Selling

    3. Telemarketing

    4. All of the above

    Answer: d

  39. In inventory control, which one of the following factors does not affect the ROL (Re-Order-Level)?

    1. Average Daily Usage

    2. Lead Time

    3. Safety Stock

    4. Holding Costs

    Answer: d

  40. The number of allocated cells in the optimal solution of a transportation problem having m rows and n columns is:

    1. m + n – 1

    2. m + n – 1 or less

    3. m + n + 1

    4. None of the above

    Answer: b

  41. In a railway yard, goods trains arrive at a rate of 30 trains per day. Assume that the inter-arrival time follows an exponential distribution and the service distribution is also an exponential with an average of 36 minutes. The probability that the size of the queue exceeds 10 is

    1. 0.944

    2. 0.750

    3. 0.250

    4. 0.056

    Answer: d

  42. If in the optimal solution of a linear programming problem, a non-basic variable has zero value in the Cj – Zj row, the problem

    1. Has no feasible solution

    2. Has multiple optimal solutions

    3. is unbounded

    4. A and (B), but not (C)

    Answer: b

  43. The best model to compute the probability that a machine functioning well in one period will continue to function or will break down in the next period is

    1. Delphi Model

    2. Decision-tree Model

    3. Multiplicative Model

    4. Markov-Process Model

    Answer: d

    • Statement 1: I: X and R charts use the sample standard deviation to measure process variability.
    • Statement 2: II: The lower control limit on an R chart is always R – (1 – 3d3/d2).
    1. Both Statements I and II are correct.

    2. Statement 1 is correct, but II is wrong.

    3. Statement 1 is wrong, but II is correct.

    4. Both Statements I and II arewrong.

    Answer: d

    • Statement 1: I: A subjective probability may be nothing more than an educated guess.
    • Statement 2: II: One reason that decision-makers at high levels often use subjective probabilities is that they are concerned with unique situations.
    1. Statement 1 is correct, but Statement 2 is wrong.

    2. Statement 1 is wrong, but Statement 2 is correct.

    3. Both Statements I and II are correct.

    4. Both Statements I and II are wrong.

    Answer: c

  44. Which of the following is a step in performing analysis of variance?

    1. Determine an estimate of population variance from within samples.

    2. Determine an estimate of population variance from among the sample means.

    3. Determine the difference between expected and observed frequency for each class.

    Codes:

    1. 1 and 2 only.

    2. 1 and 3 only.

    3. 2 and 3 only.

    4. 1, 2 and 3

    Answer: a

  45. From the following, identify the decision-support systems:

    1. Status inquiry system

    2. Data analysis system

    3. Accounting system

    4. Information system

    Codes:

    1. 1, 2 and 3

    2. 2, 3 and 4

    3. only 3

    4. 1, 2, 3 and 4

    Answer: d

  46. Which of the following are the components of data warehouses?

    1. Metadata

    2. Integration Programs

    3. Summarised data

    4. Archives

    Codes:

    1. 1, 2 and 3 only

    2. 1, 3 and 4 only

    3. 2, 3 and 4 only

    4. 1, 2, 3 and 4

    Answer: d

  47. Arrange the following stages involved in DBMS in proper sequence:

    1. Creating

    2. Defining

    3. Data structuring

    4. Updating

    5. Interrogating

    Codes:

    1. 1, 3, 2, 4 and 5

    2. 2, 1, 3, 5 and 4

    3. 3, 2, 5, 4 and 1

    4. 2, 3, 1, 4 and 5

    Answer: c

  48. For years Converse had a major share in the athletic shoe market. Then, in the 1980's, Nike and Reebok re-invented the athletic shoe industry, and Converse changed nothing. Now Converse is a minor brand in a growth industry. According to the BCG matrix, Converse is an exampleof

    1. Cash Cow

    2. Dog

    3. Question mark

    4. Star

    Answer: c

  49. The managerial process of developing and maintaining a viable fit between an organization's objectives, skills, and resources, and its market opportunities is called

    1. Establishing strategic business units

    2. Market-oriented strategic planning

    3. Market research

    4. Portfolio analysis

    Answer: b

  50. Low cost, product differentiation, and focused market are the examples of

    1. Corporate strategy

    2. Business strategy

    3. Functional strategy

    4. Behavioural strategy

    Answer: b

  51. The word “Tactic” is the most likely to be associated with

    1. Corporate strategy

    2. Business strategy

    3. Operational strategy

    4. Behavioural strategy

    Answer: c

  52. A marketing effectiveness review is part of _______ control.

    1. Annual Plan

    2. Profitability

    3. Proficiency

    4. Strategic

    Answer: d

  53. When a cigarette manufacturing company drastically cuts price of a popular brand of its cigarettes, to increase its share in the competitive market, it is implementing a ______strategy.

    1. Integrative growth

    2. Market development

    3. Market penetration

    4. Product development

    Answer: c

  54. An entrepreneur who is neither willing to introduce new changes nor to adopt new methods is known as:

    1. Adoptive Entrepreneur

    2. Fabian Entrepreneur

    3. Innovative Entrepreneur

    4. Drone Entrepreneur

    Answer: d

  55. UNIDO preparatory meeting on the “Role of Women in Industrialisation in Developing Countries” held in February 1978. Identified constraints, which hinder women from participating in industrial activities. The meeting was held at

    1. Vienna

    2. New Delhi

    3. Geneva

    4. Mexico City

    Answer: a

  56. Which of the following statements is false?

    1. Venture capital is outside equty that comes from professionally managed pools of investor money.

    2. Term Loan from bank is needed to pay dividends toshareholders on time.

    3. Permanent working capital is the amount a firm needs to produce goods and services at the lowest point of demand.

    4. Temporary working capital is the amount which a firm may need to meet seasonal demand.

    Answer: b

  57. Small Industries Development Organisation (SIDO) has been set up to

    1. Promote, aid and foster the growth of small-scale industries in the country.

    2. Formulate, coordinate and monitor the policies and programmes for promotion and development of small scale industries.

    3. Provide consultancy and training to small entrepreneurs – both existing and prospective.

    4. Provide integrated administrative framework at the district level for promotion of small-scale industries in rural areas.

    Answer: b

  58. Match the items in the two lists:

    List-I (Part of Social Responsibility) List-II (Features)
    1. Responsibility towards owners

    2. Responsibility towards employees'

    3. Responsibility towards depositors'

    4. Responsibility towards customers

    1. Stock

    2. Quality product

    3. Safety of their investment

    4. Job security

    5. Interest

    • A
    • B
    • C
    • D
      • 1
      • 3
      • 2
      • 5
      • 3
      • 4
      • 5
      • 2
      • 1
      • 3
      • 5
      • 2
      • 3
      • 4
      • 2
      • 1

    Answer: b

  59. First industrial estate in India was established by SSIB in 1955 at

    1. Okhla in Delhi

    2. Ghaziabad in Uttar Pradesh

    3. Rajkot in Gujarat

    4. Sannat Nagar in Jammu &Kashmir

    Answer: c

  60. The Companies Bill, 2012 has been passed by Parliament in August, 2013. What is not true about this Bill?

    1. It does not provide for corporate social responsibility.

    2. It provides for measures to curb corporate frauds.

    3. It does not include the concept of corporate fraud.

    4. It emphasises on self-reputation and stringent penalties on professionals.

    Codes:

    1. All of the above are true.

    2. While items 1 and 2 are true, the rest are not.

    3. While items 2 and 4 are true, the rest are not.

    4. All of the above are false.

    Answer: c

  61. A high ranking organizational official (e. g. General counsellor or vice president) who is expected to provide strategies for ensuring ethical conduct throughout the organization is known as

    1. Ethics Manager

    2. Ethics Officer

    3. Ethics Controller

    4. Ethics Counsellor

    Answer: b

    • Assertion (A): All ethical theories are not equally applicable every time in all types of ethical dilemma resolution.
    • Reason (R): The ethical resolution should be based as far as possible on a cognitive ethical principle with justification.
    1. A is correct, R is incorrect.

    2. R is correct, A is incorrect.

    3. Both the statements A and R are correct.

    4. Both the statements A and R are incorrect.

    Answer: c

  62. According to which committee should an organization submit regular social reports?

    1. Sachchar Committee

    2. Kumarmangalam Birla Report

    3. Both of above

    4. None of above

    Answer: a

  63. The method of collecting money for Corporate Social Responsibility (CSR) by raising prices or following many other unethical ways is often described as:

    1. Reverse effect

    2. Reverse Robinhood effect

    3. Boomerang

    4. Roosevelt effect

    Answer: b

  64. When the values and priorities of the parent organization guides the strategic decision making of all its international operations, it is known as

    1. Polycentric Orientation

    2. Regiocentric Orientation

    3. Ethnocentric Orientation

    4. Geocentric Orientation

    Answer: c

    • Assertion (A): GDP increases a currency's value.
    • Reason (R): Since there is likely to be greater demand for country's currency.
    1. A and R both are correct, but R is not the appropriate explanation of (A).

    2. A and R both are correct and R is the right explanation of (A).

    3. A is correct, but R is not correct.

    4. Both A and R are not correct.

    Answer: a

  65. The salient features of India's Foreign Trade Policy are:

    1. Reducing the interest burden and extension of the interest subvention scheme.

    2. Rationalizing defence-related imports.

    3. Focus on labour-intensive sectors.

    4. Extension of zero-duty EPCG scheme.

    Codes:

    1. All 1, 2, 3 and 4

    2. 1, 2 and 3 only

    3. 1, 3 and 4 only

    4. 2, 3 and 4 only

    Answer: c

  66. Arrange the following steps of Dispute Settlement Mechanism under the WTO in the systematic order:

    1. Panel Proceedings

    2. Appellate Body

    3. Consultations

    4. Compliance Panel

    5. Arbitration Panel

      1. 3 1 2 4 5

      2. 5 4 3 2 1

      3. 4 2 3 5 1

      4. 1 2 3 4 5

      Answer: a

  67. Which of the following schemes is not a part of India's Foreign Trade Policy 2009 − 14?

    1. DFIA (Duty-Free Import Authorization)

    2. TFITES (Tax-Free IT Export Scheme)

    3. VKGUY (Vishesh Krishi and Gram Udyog Yojana)

    4. FMS (Focus-Market Scheme)

    Answer: b

    • Assertion (A): The Global Managers must develop systems and policies that address floor price, ceiling price and optimum price.
    • Reason (R): The Global Managers must be in line with global opportunities and constraints.
    1. A is correct, but R is not the right explanation of (A).

    2. A and R both are correct, but R is not the right explanation of (A).

    3. A and R both are correct, and R is the right explanation of (A).

    4. A and R both are incorrect.

    Answer: c

  68. Match the following in the context of International Market Entry and indicate the correct code:

    List-I List-II
    1. Assembly

    2. Acquisition

    3. Export House

    4. Commission Agent

    1. Exports

    2. Indirect Exports

    3. Contractual Entry

    4. Direct Investment

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

    Answer: b