Business Administration Paper – 2007 Solved MCQs Competitive Exams Set 2

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(13) Extreme division of labour leads to result in:

(a) Motivation

(b) Boredom

(c) Decreased work skill

(d) Non-specialization

(e) None of these

Answer: (b)

(14) Fayol defines 14 principles of management. Which of the following is not one of those principles?

(a) Scalar chain

(b) Espirit de corps

(c) Centralization

(d) Directedness of command

(e) None of these

Answer: (d)

(15) An example of pre-control established by management would be:

(a) Rules

(b) Policies

(c) Budgets

(d) All of these

Answer: (d)

(16) Firm’s credit policy usually includes establishing:

(a) Credit standards

(b) Credit terms

(c) Collection policy

(d) All of these

Answer: (d)

(17) Liquidity ratios are computed by using information from:

(a) Balance Sheet

(b) Income statement

(c) Cash flow Statement

(d) Both (a) and (b)

Answer: (a)

(18) Conservative working capital management strategies involve:

(a) Low risk, Low return

(b) Low risk, High return

(c) High risk, High return

(d) High risk, Low return

Answer: (a)

(19) Product life cycle has the following stages:

(a) Introduction and Maturity

(b) Growth and Maturity

(c) Introduction, Maturity and Decline

(d) Introduction, Growth, Maturity and Decline

Answer: (d)

(20) Which product is most likely to be purchased through routine decision-making?

(a) Car

(b) Desk

(c) Soft Drink

(d) Shirt

(e) None of these

Answer: (c)

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