Question Bank 3

26. Consider the following elements in a feedback loop is:
1. Identification of deviations
2, Measurement of actual performance
3. Actual performance
4. Comparison of actual against standards
The correct sequence of these elements in the feedback loop is:
(a) 3, 2, 1, 4 (b) 3, 2, 4, 1
(c) 2, 3, l,. 4 (d) 3, 2, 4, 1
Ans:- (a)
27. Assertion (A) : MBO is effective way of planning and organising the work.
Reason (R) : Employees participate in setting the objectives.
(a) Both A and R true and R is the correct explanation of A.
(b) Both A and R are true but R is NOT a correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans:- (c)
28. Match List-I (Activity) with List-II (Associated organisation) and select the correct answer by using the codes given below the lists:
List-I List-II
A. Mutual Fund 1. Stock Exchange
B. Public issue of 2. Assets management company
capital
C. Forward trading 3. Merchant banking
D. Option pricing 4. Forex market
Codes.
A B C D
(a) 3 2 4 1
(b) 3 2 1 4
(c) 2 3 1 4
(d) 2 3 4 1
Ans:- (d)
29. Assertion (A) : The investors in the capital market have been showing a decisive shift in favour of fixed income instruments.
Reason (R) : The debt instruments have active secondary market.
(a) Both A and R are true and.R is the correct explanation of A.
(b) Both A and R are true but R is not a correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans:-(c)
30. Which of the following are the methods of market new issues of securities?
I. Listing of securities
II. Jobbers and brokers
III. Private placement of securities
IV. Privileged subscriptions
Select the correct answer using the codes given below
Codes:
(a) I and II
(b) II and III
(c) III and IV
(d) I, II, III and IV
Ans:- (c)
31. The maximum number of partners in a firm for a general business is
(a) 7
(b) 10
(c) 50
(d) 20
Ans:- (d)
32. The term ‘Capitalisation’ is used in relation to:
(a) Sole-proprietorship
(b) Partnership1r
(b) Joint Stock Companies
(d) Co-operative Societies
Ans:- (c)
33. Under-Capitalisation can be remedied by:
(a) Issue of Bonus shares
(b) Redemption of preference shares
(c) Redemtion of debentures
(d) Reduction of interest of debentures
Ans:- (a)
34. Working Capital is represented by
(a) Current liabilities
(b) Current assets minus current liabilities
(c) Total assets minus current liabilities
(d) Cash-in hand plus stock-in-trade
Ans:- (b)
35. Which of the following is not a component of the new issue market?
(a) Stock exchange
(b) Unit Trust of India
(c) Financial Institution like IFC, IDBI
(d) LIC
Ans:- (a)
36. Under writers are persons who:
(a) Purchase the shares and debentures of a company.
(b) Work as agents of the company for the sales of shares and debentures.
(c) Manage the issue of shares and debentures.
(d) Undertake to buy those shares and debentures not subscribed for the public.
Ans:- (d)
37. Which one of the following statements is correct?
(a) Business policy is another name for long range planning
(b) Strategic planning is the function of middle management
(c) Operational planning is the function of top management
(d) Strategic planning is largely influenced by external environment
Ans:- (d)
38. Assertion (A) : Larger number of people report to one manager,
Reason (R) : Organisation has a tall structure
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans:- (b)
39. The term ‘Organisational Climate’ best represents
(a) Human environment prevailing in an organisation
(b) Union-management relations within an organisation
(c) Problems introduced by faculty organisational structure
(d) Socio-cultural environment in an organization
Ans:- (a)
40. T Q M’s major emphasis is on:
(a) Product quality
(b) Company profitability
(c) Customer delight
(d) Employee training
Ans:- (a)
41. Brainstorming is used by the management for:
(a) Work allocation on the shop floor
(b) Generating alternative for problem solving
(c) The promotion of research and development
(d) Training employees.
Ans:- (b)
42. Winters’ method incorporates various components such as random, trend, seasonality and corrects the smoothing constants every period. It is therefore natural that this method is better than the simple exponential smoothing and decomposition methods:
(a) True
(b) Decomposition method is better as it isolates each component and later assembles them
(c) Simple exponential smoothing with appropriate oice of the smoothing constant is certainly superior
(d) None of the above
Ans:- (d)
43. Tracking Signals can:
(a) Measure forecast quality
(b) Track the demand
(b) Be useful only when the demand fluctuations are large
(d) None of the above
Ans:- (a)
44. In locating fire stations, the major criterion would be:
(a) To minimise trport or travel costs of the fire engines
(b) To minimise the response time
(c) To maximise the utilisation of the invested facilities
(d) None of the above
Ans:- (b)
45. When coefficient of skewness is zero the distribution is(a) J-shaped
(b) U-shaped
(c) Symmetrical
(d) L-shaped
Ans:- (c)