Question Bank 7

1. Which pattern reflects a pure executive form of management?
(a) Functional
(b) Line
(c) Line and Staff
(d) Committee
Ans. (a)
2. Match the following:
A. Increasing cost industry 1. Horizontal long run supply curve
B. Decreasing cost industry 2. Positively sloped long run supply curve
C. Constant cost 3. Negatively sloped long run supply curve industry
Codes:
A B C
(a) 1 2 3
(b) 3 2 1
(c) 2 3 1
(d) 2 1 3
Ans. (c)
3. The management of personnel is also called:
(a) Staffing
(b) Controlling
(c) Co-coordinating
(d) None of these
Ans. (a)
4. Assertion (A): High capital gearing leads to greater speculation. .
Reason (R): Proportion of equity share capital in relation to the total capital comprising the other securities is small leading to capitalization being highly geared.
Codes:
(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. (d)
5. Techniques of managerial control are useful in:
(a) Selection of plant location
(b) Identifying appropriate strategy
(c) Profit planning
(d) Conducting shareho1der’s meetings
Ans. (c)
6. Opportunity costs are also known as:
(a) Spillover costs
(b) Money-costs
(c) Alternative costs
(d) External costs
Ans. (d)
7. Assertion (A): The focus of scientific management was narrow.
Reason (R): It concentrated on the work done at the lowest level.
Codes:
(a) A and R are true and R is the correct explanation of A.
(b) 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. (a)
8. The Human Relations Theory does not lay emphasis on:
A. Principles
B. People
C. Human motivations
D. Informal group function
Select the answer from answer from the codes given below:
(a) A
(b) A and B.
(c) A, B and C
(d) A, B, C and D
Ans. (a)
9. What is consumer market?
(a) Buyer’s
(b) Seller’s
(b) Distributors
(d) None of the above
Ans. (a)
10. There will be only one regression line in case of two variables if:
(a) r = 0
(b) r = ± l
(c) r = 0.5
(d) None of them
Ans. (b)
11. Match the following:
A. Various combinations of two commodities 1. Indifference map
that a consumer can purchase
B. Various combinations of two commodities 2. Indifference curve
that give consumer equal satisfaction
C. A set of indifference curves 3. Budget Line
D. Point of agency of a budget line and an 4. Consumer’s equilibrium
indifference curve
Codes:
A B C D
(a) 1 2 4 3
(b) 4 3 2 1
(c) 2 3 4 1
(d) 3 2 1 4
Ans. (d)
12. The area which lies under the demand curve for a given good measures:
(a) Marginal utility
(b) Total utility
(c) Disutility
(d) Marginal cost of production
Ans. (b)
13. The prime cost may be considered as:
(a) Variable cost
(b) Direct cost
(b) Sunk cost
(d) Fixed cost
Ans. (d)
14. The optimum is the one which is produced:
(a) By the optimum firm
(b) At the maximum average cost
(c) At the minimum average cost
(d) At zero marginal cost
Ans. (c)
15. Product mix consist:
(a) 2 P
(b) 6 P
(c) 4 P
(d) None of these
Ans. (c)
16. Gresham’s law is related to:
(a) Consumption and Demand
(b) Supply and Demand
(c) Circulation of Money
(d) Deficit Financing
Ans. (c)
17. SDR is the currency of IMF which is in the form of:
(a) Paper currency
(b) Gold
(c) Silver and gold both
(d) Book-keeping entry only
Ans. (d)
18. 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.
Codes:
(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)
19. The first stock exchange was set up in India in:
(a) Calcutta
(b) Bombay
(c) Delhi
(d) Madras
Ans. (b)
20. Under perfect competition, a firm will be in equilibrium when its AC is:
(a) At a maximum
(b) At a minimum
(c) Covering only prime costs of production
(d) Covering wages and salaries only
Ans. (b)
21. The greatest weakness of the informal organizations:
(a) Its utter instability
(b) Its behaviour can be predicted
(c) It does not change
(d) All of the above
Ans. (a)
22. Which of the following are devices to bring about co-ordination?
A. Cabinet Committees
B. Union Government
C. Zonal Councils
D. National Development Council
(a) A and B only
(b) B only
(c) A, B, and D only
(d) A, B, C, and D
Ans. (d)
23. TQM’S major emphasis is on:
(a) Product Quality
(b) Company Profitability
(c) Customer Delight
(d) Employees Training
Ans. (a)
24. The theory which deals with the comparative statistics and positive equilibrium is called:
(a) Macro Economics
(b) Modern Economics
(c) Micro Economics
(d) None of the above
Ans. (b)
25. An informal organization is:
A. Not written and manualised
B. Not portrayed in organizational charts
C. A set of work relationship that grow out of the mutual interactions of persons working together over a period of time
D. Customary, not enacted
Select the correct answer from the codes given below:
(a) A only
(b) A and B only
(c) A, B and C only
(d A, B, C and D
Ans. (d)