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NTA NET Management Higher Questions and Answers & Solutions December 2019 Part 2

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Q.14 Budgeting is closely related to planning in an organisation. It involves four stages and their correct sequence is

(1) Setting the objectives, specifying the goals, laying down the strategies, preparation of budget

(2) Setting the objectives, laying down the strategies, specifying the goals, preparation of budget

(3) Laying down the strategies, setting the objectives, specifying the goals, preparation of budget

(4) Specifying the goals, setting the objectives, laying down the strategies, preparation of budget

Q.15 Novation a feature of future exchanges stipulates

(1) Future contracts are traded in an exchange

(2) Exchange becomes counter-party for all trades

(3) Futures contracts delivery dates are standardised

(4) Credit risk using intricate system of margins

Q16. The right sequence in respect of stages of group development is

(1) Forming, Storming, Norming, Performing, adjourning

(2) Storming, Forming, Norming, Adjourning, Performing

(3) Norming, Performing, Storming, forming, adjourning

(4) Storming, Forming, Norming, Performing, Adjourning

0.17 According to Mintzberg՚s model of strategic decision making, its modes are:

(i) Entrepreneurial, adaptation and planning

(ii) Managerial, incrementalisation and judgmental

(iii) Entrepreneurial, planning and incrementalisation

(iv) Judgemental, managerial and leadership

Which of the following options is correct?

(1) (i) , (ii) , (iv) only

(2) (i) and (iii) only

(3) (ii) and (iii) only

(4) (ii) , (iii) and (iv) only

Q18. Collusion is one of the co-operative strategies in business combination that

(i) May be explicit

(ii) May be tacit

(iii) May reduce technological risk

(iv) May be illegal in many countries

Which of the following option is correct?

(1) Only (i) and (ii)

(2) (ii) , (iii) and (iv)

(3) (i) , (ii) and (iii)

(4) (i) , (ii) and (iv)

Q19. Match the following constructs with underlying theories on dividend decisions:

List l

Dividend Constructs

(a) Bird-in-the hand argument

(b) Irrelevance of dividends

(c) Interdependence of investment dividend decisions

(d) Tax considerations in dividend decision

List ll

Theories on Dividend

(i) MAI theory

(ii) Walter Model

(iii) Lintner՚s model

(iv) Gordon model

Choose the correct options from those given below:

1. a-ii, b-i, c-iii, d-iv

2. a-iv, b-iii, c-i, d-ii

3. a-iii, b-ii, c-i, d-iv

4. a-iv, b-i, c-ii, d-iii

Q20. Which of the following sequence are the steps of •QUEST technique of external economic?

(1) Conceptualization Phase — Evaluation Phase — Feedback Phase - Analysis

(2) Preparation Phase — Divergent Planning Phase Option Identification Phase -scenario Development Phase

(3) Development Phase — Scanning Phase — Evaluation Phase — Strategic Implementation Phase

(4) Scanning Phase Segmentation Phase Generative Phase — Review Phase.

Q 21. Assertion (A) : Foreign trade policy is an important instrument that incentivises the exporters of the country.

Reasons (R) : It is important for exporters of our country to have knowledge of foreign trade policy

Which of the following option is correct?

(1) Both (A) and (R) are correct and (R) is the explanation of (A)

(2) Both (A) and (R) are correct but (R) is not the explanation of (A)

(3) (A) is but (R) is not

(4) Both (A) and (R) are incorrect

Q22. Which one of the following is the sequence of selection?

1. Application blank, initial interview, employment tests, final interview, checking references, physical examination

2. Application blank, employment tests, initial interview, checking references, physical examination, final interview.

3. Employment tests, initial interview, checking references, physical examination, final interview

4. Employment tests, initial interview, checking references, final interview, physical examination

Q23. Mergers and acquisitions are example of which strategy of Ansoff (2 × 2) matrix?

(1) Present Product — Present market

(2) Present Product — New market

(3) New Product — Present market

(4) New Product — New market

Q24. Which of the following is a correct description of attitude?

(1) Attitudes are learned

(2) Attitudes are organized and are core to an individual.

(3) Attitudes are the major determinants of human behaviour.

(4) Attitudes are beliefs, feelings and action tendencies of individual toward objects, ideas and people.

Q25. An MNC wants to invest in India. Of the following entry modes, select the right order in terms of increasing risk?

i. Co-operative joint venture

ii. Branch office

iii. Portfolio investment

iv. Wholly owned subsidiary

v. Equity joint venture

Select correct option:

(1) iv, iii, v, v, ii

(2) ii, i, v, iii, iv

(3) i, ii, v, iv, iii

(4) iii, i, ii, v, iv

Q26. Which of the following is aptly described by 2⟋10, net 30?

(1) Credit policy

(2) Credit standards

(3) Credit terms

(4) Collection policy

Q27. The steps followed in developing a global pay system in right sequence are:

(1) Set strategy, identify crucial executive behaviour, global philosophy framework, identify gaps, systematize pay system, and adopt pay policies

(2) Set strategy global philosophy framework, identify gaps, identify crucial executive behaviour, adopt pay, policies, and systematize pay system

(3) Identify crucial executive behaviour, set strategy, global philosophy framework, identify gaps, systematize pay system, and adopt pay policies

(4) Adopt pay policies, identify crucial executive behaviour, set Strategy, global philosophy framework, identify gaps, and systematize pay system.