CBSE NET Management June-2012 Solved Paper III

  1. Hawthorne Experiment is related to the

    1. Systems theory

    2. Classical theory

    3. Human relations theory

    4. Scientfic management theory

    Answer: c

  2. Cost incurred in the past and is not affected by a current decision is referred to as:

    1. Sunk cost

    2. Marginal cost

    3. Incremental cost

    4. Replacement cost

    Answer: a

  3. The principle of organisation that no employee should report to more than one superior is called

    1. Scalar principle

    2. Span of control

    3. Unity of command

    4. Unity of direction

    Answer: c

  4. ‘Rege Committee’ is related to

    1. Working conditions in Indian Industry

    2. Social security in Indian Industry

    3. Individual differences in Indian Industry

    4. None of the above

    Answer: a

  5. The factors affecting to P/E multiple are

    1. Dividend pay-out ratio and required return

    2. Required return and expected growth rate

    3. Dividend pay-out ratio and expected growth rate

    4. Dividend pay-out ratio, required return and expected growth rate

    Answer: d

  6. Which of the following is not one of the benefits of E-Commerce?

    1. E-Commerce offers greater flexibility in meeting consumer needs.

    2. E-Commerce can help to reduce cost.

    3. E-Commerce increases potential market share.

    4. E-Commerce increases the net cost per contact.

    Answer: d

  7. Which among the following is not concerned with the PERT evolution?

    1. Polaris Project

    2. Lock-head Aircraft Corporation

    3. Both A and (B)

    4. None of the above

    Answer: c

  8. Before a company decides to target a particular market segment, which important factors are to be examined against organization's objectives and resources?

    1. Market size

    2. Growth rate

    3. Structural attractiveness

    4. All of the above

    Answer: d

  9. Balance of Payment is

    1. Balance of trade + Net earnings on invisibles

    2. Foreign exchange inflow – Foreign exchange outflow

    3. Balance of current account + Balance of capital account + Statistical discrepancy

    4. Export of goods – Import of goods

    Answer: c

  10. Factors contributing to unethical behaviour are

    1. Poor leadership

    2. Poor internal communication

    3. Lack of management support

    4. All of the above

    Answer: d

  11. Which of the following is not included in the five forces of competition?

    1. Bargaining power of suppliers

    2. Bargaining power of consumers

    3. Threat of substitutes

    4. Strategic planning

    Answer: d

  12. Match the following:

    List-I (Financial Institution) List-II (Year of Establishment)
    1. Industrial Development Bank of India (IDBI) 1.

    2. Small Industries Development Bank of India (SIDBI)

    3. Natural Small Industries Corporation (NSIC)

    4. Industrial Finance Corporation of India (IFCI)

    1. 55

    2. 1964

    3. 1948

    4. 1989

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

    Answer: b

  13. The practice of selling two or more separate products together for a single price is:

    1. Bundling

    2. Dumping

    3. Both A and (B)

    4. None of the above

    Answer: a

  14. Which is the oldest and simplest form of organisation?

    1. Functional organisation

    2. Committee organisation

    3. Line organisation

    4. Line and staff organisation

    Answer: c

  15. While considering promotion of an employee, the following is the most important consideration:

    1. Seniority

    2. Competence

    3. Loyalty

    4. Only A and (B)

    Answer: d

  16. Which type of promotion has been described by W. R. Spriegel?

    1. Departmental Promotion

    2. Inter-departmental Promotion

    3. Inter-plant Promotion

    4. Inter-company Promotion

      1. 1, 2, 3

      2. 2, 3, 4

      3. 1, 2, 4

      4. 1, 3, 4

      Answer: a

  17. Market risk is also known as

    1. Systematic risk or diversifiable risk

    2. Unsystematic risk or diversifiable risk

    3. Systematic risk or non-diversifiable risk

    4. Unsystematic risk or non-diversifiable risk

    Answer: c

  18. The discount rate that makes NPV equal to zero is known as

    1. Benefit–Cost ratio

    2. Internal Rate of Return

    3. Discounted Pay-back period

    4. Profitability Index

    Answer: b

  19. Match the following:

    List-I List-II
    1. Poisson distribution

    2. Normal distribution

    3. Chi-Square distribution

    4. Binomial distribution

    1. Mean is greater than variance

    2. Mean & Variance are same

    3. Symmetric

    4. Positively skewed

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

    Answer: c

  20. A critical activity is defned as one whose

    1. Total float is zero.

    2. Free float is zero.

    3. Duration is the longest.

    4. Duration is the smallest.

    Answer: a

  21. In the buying decision process, what is the term used for a person who first suggests buying the product or service?

    1. Influencer

    2. Initiator

    3. Decider

    4. Buyer

    Answer: b

  22. Strategies formulated to convert a sick unit to healthy is referred to:

    1. Turnaround

    2. Expansion

    3. Diversification

    4. Stabilisation

    Answer: a

  23. Which one is an international credit rating agency?

    1. Mc Kinsey

    2. B C G

    3. Standard and poor

    4. 1 M F

    Answer: c

  24. Ethical challenges may arise on account of

    1. Failure of personal character, conflict of personal value & organisational goals and conflict of organisational goals and social values

    2. Hazardous but popular products

    3. Both A and (B)

    4. None of the above

    Answer: c

  25. Supply curve slopes backward towards left, when:

    1. More quantity is supplied at higher prices.

    2. Less quantity is supplied at higher prices.

    3. Same quantity is supplied at higher prices

    4. None of the above

    Answer: b

  26. Transactional Analysis (TA) is related to

    1. Learning

    2. Attitudes

    3. Perception

    4. Personality

    Answer: d

  27. Which among the following is odd one?

    1. BMS

    2. FICCI

    3. AITUC

    4. INTUC

    Answer: b

  28. Which of the following strategies requires a company to concentrate its efforts in one or more narrow segments instead of a broad based strategy?

    1. Cost-Leadership strategy

    2. Differentiation strategy

    3. Focus strategy

    4. None of the above

    Answer: c

  29. In case where the investment can be made in stages and is dependent on the future outcomes, the capital budgeting technique that can be adopted will be

    1. Simulation technique

    2. Hiller model

    3. Decision-tree analysis

    4. Scenario analysis

    Answer: c

  30. Statement A. In an organization we pay for jobs, we do not pay for men. Statement B. The compensation must be as per the Job assigned.

    1. Statement A is correct but B is false.

    2. Statement B is correct but A is false.

    3. Both Statement A and B are correct.

    4. Both Statement A and B are false.

    Answer: c

  31. If the regression coefficient of the independent variable in a simple regression equation is negative, then which of the following statement is correct?

    1. The coefficient of correlation between the variables is zero.

    2. The coefficient of correlation between the variables is the positive square root of the coefficient of determination.

    3. The coefficient of correlation between the variables is the negative square root of the coefficient of determination.

    4. None of the above:

    Answer: c

  32. Selling the products only through a single wholesaler or retailer is called

    1. Extensive distribution strategy

    2. Selective distribution strategy

    3. Exclusive distribution strategy

    4. Mass merchandise strategy

    Answer: c

  33. Marketing myopia concept was developed by

    1. Philip Kotler

    2. Peter Drucker

    3. C. K. Prahlada

    4. Theodore Levitt

    Answer: d

  34. Emerging market economies are:

    1. A part of developed countries

    2. Newly industrializing countries

    3. A part of developing countries

    4. A part of third world countries

    Answer: b

  35. What describes the market, product and technological area of business?

    1. Company's mission

    2. Company's vision

    3. Strategic plan

    4. None of the above

    Answer: a

  36. Activities taken up on part time or casual basis to raise income is:

    1. Self employment

    2. Income generation

    3. Entrepreneurship

    4. None of the above

    Answer: b

  37. “The optimal pay-out ratio for growth firm is nil and declining firm is 100%” is established by

    1. Gordon model

    2. Walter model

    3. Both A and (B)

    4. None of the above

    Answer: c

  38. Match the following:

    List-I List-II
    1. Z – Theory

    2. Y – Theory

    3. Hierarchy Needs Theory

    4. Hygiene Theory

    1. Hergberg

    2. Maslow

    3. Mc Gregor

    4. Urwick

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

    Answer: c

  39. Need-Hierarchy Theory was propounded by

    1. Peter F. Drucker

    2. Abraham Maslow

    3. Mc – Fraland

    4. Elton Mayo

    Answer: b

  40. Additional revenue generated by selling an additional unit is

    1. Incremental revenue

    2. Marginal revenue

    3. Total revenue

    4. Average revenue

    Answer: b

  41. What is the term used if a market is divided into distinct groups of buyers who might require separate products or marketing mixes?

    1. Market Targetting

    2. Market Positioning

    3. Market Segmentation

    4. Market Co-ordination

    Answer: c

  42. Bath tub curve is encountered in

    1. Process control

    2. Acceptance sampling

    3. Both A and (B)

    4. Maintenance management

    Answer: d

  43. Cost advantage is referred as

    1. A firm achieving a lower cumulative cost of performing value activities than its competitors

    2. Firm trying to outsource all relative products from one company to gain economies of scale

    3. Firm trying to restrict the cost controls measure relative to its nearer competitor

    4. None of the above

    Answer: a

  44. If a hypothesis is tested at a significant level of 5%, then it means that

    1. There is 5% probability that the null hypothesis will be rejected though it is true.

    2. There is 5% probability that the null hypothesis will be false.

    3. There is 5% probability that the null hypothesis will be true.

    4. There is 95% probability that the alternative hypothesis will be false.

    Answer: a

  45. The time that elapses between the purchase of raw materials and the collection of cash for sales is referred as

    1. Production cycle

    2. Operating cycle

    3. Cash cycle

    4. Organisation cycle

    Answer: b

  46. One of the following is not included in job descriptions:

    1. Job title

    2. Location

    3. Penal actions

    4. Duties

    Answer: c

  47. In which type of market situation competitors offer same type of products and services for the same price with no differentiation?

    1. Monopolistic competition

    2. Monopoly

    3. Oligopoly

    4. Perfect competition

    Answer: d

  48. Sick enterprise is referred to which of the following bodies for rehabilitation?

    1. Small Industries Development Bank of India (SIDBI)

    2. Small Industries Development Organisation (SIDO)

    3. Board for Industrial and Financial Restructure (BIFR)

    4. National Small Industries Corporation (NSIC)

    Answer: c

  49. Match the following:

    List-I List-II
    1. Wealth of Nations

    2. Income and Substitution effect

    3. Kinked Demand Curve

    4. Production function

    1. Robert Giffen

    2. Paul M. Sweezy

    3. Cobb-Douglas

    4. Adam Smith

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

    Answer: d

  50. The term “Grapevine Communication” is related to

    1. Formal Communication

    2. Informal Communication

    3. Written Communication

    4. Vertical Communication

    Answer: b

  51. Taylor differential piece rate system is related to

    1. Time wage system

    2. Piece wage system

    3. Incentive wage system

    4. None of the above

    Answer: c

  52. Financial risk arises from

    1. R & D and operations stages of value chain

    2. GNP growth rate and competitive environment

    3. Volatility of interest rates, currency rates, commodities prices and stock prices

    4. Changes in laws and regulations

    Answer: c

  53. A company using high price and high promotion policy is adopting the following strategy:

    1. Slow skimming

    2. Rapid Penetration

    3. Slow Penetration

    4. Rapid Skimming

    Answer: d

  54. Which one of the following are the functions of personnel management?

    1. Planning, Organising, Staffing, Directing and Controlling

    2. Planning, Organising, Coordinating, Budgeting and Controlling

    3. Procurement, Development, Compensation, Integration and Maintenance

    4. Perception, Development, Learning, Organisation and Behaviour

    Answer: c

  55. Match the following:

    List-I List-II
    1. Net present value method

    2. Average rate of return

    3. Internal rate of return

    4. Pay back method

    1. Inflow after interest and tax

    2. Discounted cash flow

    3. Traditional method

    4. Decision based on cut-off rate

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

    Answer: c

  56. The number of product lines a company carries is called

    1. Product range

    2. Product mix depth

    3. Product mix width

    4. Product line length

    Answer: c

  57. Entrepreneurial failures can be attributed to:

    1. Low quality raw materials

    2. Labour problems

    3. High overhead costs

    4. All of the above

    Answer: d

  58. What are the economic goals that guide the strategic direction of every viable business organization?

    1. Goal, profit and public image

    2. Public image, growth and profit

    3. Survival, growth and profitability

    4. Growth, profitability and public image

    Answer: c

  59. Match the following:

    List-I List-II
    1. Sensitivity training

    2. Hygiene factors

    3. Number of subordinates

    4. Likert's management system

    1. Leadership

    2. Organisational Development

    3. Motivation

    4. Span of management

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

    Answer: a

  60. If the intrnsic value of the share is greater than market value, such shares are:

    1. Under valued

    2. Over valued

    3. Neutral

    4. None of the above

    Answer: a

  61. Which of the following is not a market oriented pricing technique?

    1. Penetration pricing

    2. Going rate pricing

    3. Perceived value pricing

    4. Early-cash recovery pricing

    Answer: d

  62. Which one of the following facilitates E-Commerce?

    1. Public relations

    2. Direct marketing

    3. Personal selling

    4. Product quality

    Answer: b

  63. Sensitivity analysis may be used in

    1. Linear programming

    2. Transportation programming

    3. PERT

    4. CPM

    Answer: a

  64. Sensitivity training method is a part of

    1. On-the-job training method

    2. Off-the-job training method

    3. Vestibule training method

    4. None of the above

    Answer: c

  65. A machine on the average produces 5% defective items. What are the mean and variance in a set of 32 items?

    1. 16, 8

    2. 16, 4

    3. 4, 16

    4. None of the above

    Answer: d

  66. Distribution strategy of a company will be influenced by

    1. Nature of product

    2. Target segment of consumers

    3. Pricing policy

    4. All of the above

    Answer: d

  67. Which of the following is an example for unsystematic risk?

    1. Interest rate risk

    2. Exchange rate risk

    3. International risk

    4. Operating risk

    Answer: d

  68. Match the following:

    List-I List-II
    1. Job Analysis

    2. Job Description

    3. Job Specification

    4. Job Classification

    1. Grading jobs according to scale of pay

    2. A statement of human qualities to fill the job

    3. A process of obtaining job facts

    4. A statement of duties and responsibilities of a job

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

    Answer: a

  69. A positioning strategy should include the following strategies except

    1. Product strategy

    2. Personnel strategy

    3. Promotion strategy

    4. Advertising strategy

    Answer: b

  70. Which among the following will suit the best as location for a chemical plant?

    1. Desert Area

    2. Coastal Area

    3. Plains

    4. Hill Area

    Answer: b

  71. When making purchase decisions the main consideration involved in organizational buying is

    1. Product quality

    2. Price

    3. Service

    4. All the above

    Answer: d

  72. Which of the following is to be considered by an investor while exercising the option?

    1. Exercise price

    2. Spot price

    3. Exercise price and spot price

    4. None of the above

    Answer: c

  73. Match the following:

    List-I List-II
    1. Indian Trade Union Act 1

    2. Industrial Dispute Act

    3. The Workmen's Compensation Act

    4. The Employees'State Insurance Act

    1. 23

    2. 1926

    3. 1948

    4. 1947

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

    Answer: a

  74. Who creates and implements strategic change in an organization?

    1. Directors

    2. Consultants

    3. H. R. Managers

    4. Strategist

    Answer: d

  75. Which of the variables is not used by marketers for demographic segmentation?

    1. Age

    2. Income

    3. Gender

    4. Poverty

    Answer: d