1. The elasticity of demand indicates

The rate of response of demand to a change in price.

The rate of change of demand to a change in income.

The change in the tastes of consumers at different prices.

The rate of response of demand to a change in supply.
2. A rightward shift in supply curve indicates

A decrease in supply

An increase in quantity demanded

An increase in supply

Law of variable proportion
3. Which of the following is the condition of equilibrium for the monopolist

MR MC

MC AR

AR MC Price

AC AR
4. If the demand curve is a rectangular hyperbola, elasticity is

1

0

infinity

less than one
5. If both supply and demand increase by the same proportion,

Quantity remains constant

Price remains constant

Price increases

Quantity increases
6. What leads to rationing and black marketing under perfect competition

Price support

Excess demand

Decrease in supply

Price control
7. In Maslow's need hierarchy theory, which of the following is not high order needs

Safety

Social

Esteem

Self-Actualisation
8. Feeling arising out of inadequate definition of roles is known as

Role ambiguity

Role conflict

Role perception

Role expectation
9. A type of group discussion process in which members of the group are encouraged to generate as many imaginative and creative ideas in a relatively short period of time is known as

Brain storming

Group working

Simulation

Group effect
10. The amount of satisfaction an individual anticipates from a particular outcome is known as

Theory Y
Theory Z

Valence

Stress
11. A personality characteristic indicating one's willingness to do whatever it takes to get one's own way is known as

Locus of control

Machiavellism

Job characteristic model

Personality legitimacy
12. The process of studying and collecting information relating to a specific job is known as

Motion study

Job analysis

Job specification

Job enrichment
13. The horizontal expansion of jobs is termed as

Job enlargement

Job enrichment

Job sharing

Job involvement
14. A bargaining which is based upon zero-sum game is known as

Integrative bargaining

Principled bargaining

Distributive bargaining

None of these
15. The final link in the communication process that puts the message back into the system
as a check against misunderstandings is described as

Decoding

Feedback

Feedback Loop

None of these
16. In the 'Managerial grid' 1 style is termed as

Team Management

Country Club Management

Authority Obedience

Improvised Management
17. Which of the following is not one of the 5s of housekeeping

Sort

Systemize

Specialize

Shine
18. Internal rate of return method applied for capital budgeting decision

allows to take different discount factors.

uses cost of capital as discount factor.

may give more than one IRR.

distinguishes between the IRR for lending and borrowing decision.
19. Beta in the context of security analysis indicates

Systematic risk

Unsystematic risk

Total risk

All of the above
20. Assuming constant rate of growth of dividend, value of share will be equal to

P0 D0 g

P0 D1 g

P1 D0 g

P1 D0 g
21. Theoretically, with the issue of rights share the value of existing shares

will increase

will not change

will reduce

may increase or decrease
22. When the cash flow outcomes of succeeding period depends on what has happened before, the probabilities of succeeding period are known as

joint probabilities

conditional probabilities

simple probabilities

decision tree
23. A high risk, high-yield often unsecured bond rated below investment grade is known as

Income-bond

Subordinated debentures

Junk bond

Serial bond
24. Who coined the term 4 Ps

Philip Kotler

Stanton

Peter Drucker

Mc Carthy
25. In the buying decision process, what is the term used for a person who first suggests buying the product

Consumer

Decider

Initiator

Influencer
26. Which of the following is in order

Product, place, price and promotion.

Price, product, promotion and place.

Promotion, place, product and price.

Product, price, place and promotion.
27. Which of the demographic variable is not used by marketers for demographic segmentation

Income

Gender

Family life cycle

Poverty
28. Which of the following indicates the distinction between Advertising and Publicity

Advertising is expensive, publicity is less expensive.

Advertising is through T.V., publicity is through print media.

Advertising is a paid form of communication, Publicity is not a paid form of communication.

Advertising is through film stars, Publicity is through cricketers.
29. Which of the following order about product life cycle is correct

Introduction, Maturity, growth and decline.

Introduction, growth, maturity and decline.

Introduction, decline, maturity and growth.

Growth, maturity, decline and introduction.
30. Companies that attack other firms including market leader in an attempt to build market share are called

Market followers

Market challengers

Market penetrators

Market Nichers
31. Tactical production planning decision includes

Layout planning

Machine loading

Production process

Plant location
32. Which of the following is not to be considered for plant location decision

Availability of labour

Availability of power

Availability of raw material

Brand image
33. Moving average forecasting is used to

establish the trend of the past

forecast the current demand

forecast market competition

forecast Quasi demand
34. Work measurement is essential for

Labour utilization and efficiency

Determining the delivery dates

Introducing Financial incentive schemes

All of the above
35. E O Q refers to the quantity for which

fixed cost is equal to variable cost

carrying cost is equal to ordering cost

average cost is equal to marginal revenue

total contribution minus cost of goods
36. A company is producing steel rods. Assuming that the length of steel rods follows
normal distribution with mean 10 inches variance equal to 0.04 sq. inches. The
standard error of mean, when a random sample of 16 is taken, will be

4/10

2/20

2/40

None of these
37. Judgement sampling to select the sampling units from population is termed as

Probability sampling

Non-probability sampling

Systematic sampling

None of these
38. Wide area network is

Network of computers spread over a small geographical area.

Network of computers spread over a large geographical area.

Network of computers in a room.

None of these.
39. Correlation coefficient between two variables X Y is calculated as 0.63. If the measurements of X Y are changed to U X 10/ 5 V Y 10 the new value of correlation coefficient will be

0.063

0.315

0.63

None of these
40. A person appears in an interview for a job in the two companies say X and Y. The chances of selection in company X is 0.7 and chances of selection in Y is 0.6. The probability of his selection in either of the two companies will be

0.42

0.88

0.50

None of these
41. Which of the following helps a manager to identify the opportunities and threats in the competitive industry environment

Analysis of organisational structure.

Analysis of competitive forces.

Analysis of operations.

Market Research
42. Essence of strategy at strategic Business Unit level is

How to build core competency

How to gain competitive advantage

How to gain market share

All of the above
43. Which one of the following is a primary activity in a value chain

Operations

Firm infrastructure

Technology development

Procurement
44. Business unit which holds a large market share in a mature and slow growing industry is called

Star

Dog

Question Mark

Cash cow
45. Which strategy requires a company to concentrate its efforts in one or more narrow segments instead of broad based strategy

Cost leadership

Focus

Differentiation

None of the above
46. Which of the following is an example of an external threat

New trade regulations

Global sales potential

Economies of scale

Decreased competition
47. Which of the following has been entrusted with the responsibility of developing and supporting small business

IDBI

RBI

NABARD

SIDBI
48. "Innovation and entrepreneurship" is a book written by

Philip Kotler

C. K. Prahlad

Pradeep Khandwala

Peter F. Drucker
49. Strategising within value frame work is an approach of

Management

Administration

Governance

Stake holders
50. Social responsibility means that a business

Functions efficiently without harming the society

Abjures the profit motive

Keeps pollution under check

Pays its Taxes to Government