1. There is acute shortage of electricity in some of the states in India. This reflects a problem in which type of business environment
Economic

Demographic

Politico-legal

Socio-cultural
2. Match the items given in List-I and List-II.

List I List II
Economic liberalisation IT-enabled services
Out sourcing SFIO
Corporate frauds Macro economic stability
Second generation reforms Increased competition
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3. Which of the following is true
A consumer court set up under the Consumer Protection Act, does not have the power to punish for its contempt.

Professional services are outside the purview of the CPA.

A consumer court cannot force a person indulging in misleading advertising to confess his quit.

None of the above.
4. Match the items/terms given in List-I with those given in and List-II.

List I List II
BIS Print Media
CERC Minimum support price for agricultural products.
CACP Quality of manufactured products.
PCI Comparative product testing.
Indicate the correct answer
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5. Which one among the following is not the salient feature of industrial policy since 1991
Enormous expansion of the private sector.

Redefining the role of public sector.

Limited exposure of Indian industry to foreign competition.

Pruning of the list of items reserved for SSI units.

6. a partner in a firm, is drawing 500 regularly on the 16th of every month. He will have to pay interest at the given rate in a year on 6000 for the total period of
5 months

6 months

7 months

12 months
7. Subsequent expenditures that extend the useful life, improve the quality of output, or reduce operating costs of an existing asset beyond their originally estimated levels are
Capital expenditures

Revenue expenditures

Deferred Revenue expenditures

None of the above

8. Marginal-costing technique is useful for
Make or Buy decisions

Profit planning

Shut-down decisions

All of the above
9. Which one is not a feature of budgetary control
A tool for management control.

An instrument of delegation and authority.

An instrument for evaluating the overall performance.

A statement of budget and forecasts.
10. The Debt-Equity Ratio of a company is 2 1. In this relation, match the following

List I List II
Issue of equity shares 1. No change on the ratio
Cash received from debtors 2. Reduce the ratio
Redemption of debentures 3. No change on the ratio
Purchased goods on credit 4. Reduce the ratio

Codes


1 2 3 4

2 3 4 1

1 3 4 2

2 4 1 3
11. Which one of the following does not explain the basic nature of Business economics

Behaviour of firms in theory and practice.

Distribution theories like rent, wages and interest along with the theory of profit.

Use of the tools of economic analysis in clarifying problems in organising and evaluating information and in comparing alternative courses of action.

Integration of economic theory with business practices for the purpose of facilitating decision- making.

12. At a point of satiety for a commodity the marginal utility is
Negative

Positive

Zero

Highly positive

13. A rectangular hyperbola shaped demand curve on all its points has
Equal slopes and equal point elasticities.

Unequal slopes and unequal point elasticities.

Unequal slopes and equal point elasticities.

Equal slopes and unequal point elasticities.
14.
Assertion A perfectly competitive firm is not a price- maker but is a price-taker.

Reason The firm is interested in deciding the level of output only.
Codes
Both and are true.

Both and are false.

is false, while is true.

is true, but is not a correct explanation of
15. Match the items of List-I with the items of List-II.
List I List II
A market having high price elasticity. I. Skimming pricing
A market having high price inelasticity II. Differential pricing
A market having several segments differing prominently with regard to price elasticities of their demand. III. Penetrating pricing
Codes
I II III








16. Which one of the following options deals with the process of making estimates, predictions and decisions

Descriptive statistics

Inferential statistics

Probability theory

None of the above
17. A hypothesis test is being performed for a process in which a Type-I error will be very costly, but a Type-II error will be relatively inexpensive and unimportant. Which of the following would be the best choice for alpha

0.10

0.05

0.01

0.50

18. If the dependent variable increases as the independent variable increases in an estimating equation, the coefficient of correlation will be in the range

0 to 1

0 to 0

0 to 0.05

0 to 1

19.
Assertion When there is an evidence of a linear relationship between two variables, it may not always mean an independent- dependent relationship between the two variables.

Reason The causal relationship between the two variables may not imply a reasonable theoretical relationship between the two.
Choose the right answer from the following statements
Codes
Both and are true and is the correct explanation.

Both and are true, but is not the correct explanation.

is true, but is false.

is false, but is true.

20.

Assertion User interface is most critical task in DSS design

Reason DSS is used by outside Customers frequently.

is correct, but is wrong.

Both and are wrong.

is wrong, but is correct.

Both and are correct.

21. Which of the following is not true about Matrix Organisation

It is relatively permanent.

Its project managers authority is distributed reasonably.

There is slow information processing.

Its project heads have to share resources with functional heads.

22. Consider the following leadership styles
1. Telling 2. Autocratic
3. Selling 4. Motivating
5. Participating 6. Delegating
7. Charismatic

Select the four styles of leadership explained by Hersey and Blauchard.

6 and 7

4 and 5

5 and 6

6 and 7
23. Given below are two statements, one labelled as Assertion and the other labelled as Reason

Assertion Classical organisations believed in the use of authority to achieve coordination.

Reason Classical thinkers consider organisation is an open system.
Codes
is correct, but is incorrect.

Both and are correct.

is incorrect, but is correct.

Both and are incorrect.

24. Who has modified Maslow's Hierarchical levels of needs and developed ERG model

Frederick Herzberg

David C. McClelland

Douglas McGregor

Clayton Alderfer
25. Taylor's differential piece work plan provides that

All labourers should be assigned different amount of work.

All labourers should be put in different time-period.

Those who produce above standard should receive higher wages than those producing below standard.

Payment should be the same on a fixed standard.
26. Which one of the following stages of the marketing research process is most expensive

Data analysis

Data collection

Developing the research plan

Report writing
27. The people to adopt a new product first are called

Early adopters

First users

Initial adopters

Innovators
28. A concept in retailing that helps explain the emergence of new retailers is called the hypothesis.

Product life cycle

Service assortment

Retail life cycle

'Wheel-of-retailing'
29. Manufacturers of cars and motor cycles typically distribution.

selective

intensive

exclusive

restrictive
30. Which method of setting advertising budget is most scientific and logical


All-you-can afford method

Competitive parity method

Objective-and-task method

Percentage-of-sales method
31.

Assertion Weighted average cost of capital should be used as a hurdle rate for accepting or rejecting a capital budgeting proposal.

Reason It is because by financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.
Codes
Both and are false.

Both and are true.

is true, while is false.

is false, while is true.

32. A firm wants to know the Degree of Operating Leverage with the following information Current level of sales 6000 units Break-even point sales 4000 units What would be the DOL

1.50

0.67

3.00

None of the above

33.

Assertion When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV and PI methods may give contradictory results.

Reason The contradictory results in the ranking are due to differing dimensions relating to the scale of investments, cash flow patterns and project lives.
Indicate the correct answer
Codes
Both and are true.

is true, but is a necessary condition, but not a sufficient condition.

Both and are false.

Both and are true and explains the reason sufficiently.

34. Which one of the following assumptions is not covered in the Walter's Model of the dividend policy

All financing is done through retained earnings.

Firm's business risk does not change due to additional investments.

The firm has an infinite life.

The key variables like EPS and DPS keep on changing.
35. Which one of the following emphasizes the qualitative aspects of working capital management

Gross working capital

Quick working capital

Net working capital

None of the above
36. Which of the following training methods exposes the newly recruited employee to the various business functions, divisions and departments

Orientation

Vestibule Training

Transition Analysis

Role playing
37. Match the names of the Authors given below with the motivational theories they are associated with
List-I List-II
1. Herzberg a. ERG Theory 2. McGregor
b. Three-need theory 3. Alderfer
c. Theory X and Theory Y 4. David McClelland
d. Two-factor theory

Codes
1 2 3 4

a b c d

d c b a

b a d c

d c ab
38. Who was closely associated with industrial relations in India

B. Kurien

Gadgil

V.V. Giri

Vinoba Bhave
39. Under the Trade Union Act 1926, how many minimum number of members are required for a trade union to be registered

5

7

9

11
40. The idea that a manager tends to be promoted to a level of his incompetence is referred to as

the advancement principle

the Paul principle

the Peter principle

the job design principle
41. Which of the following committees is intended to review the working of the monetory system in India

Narasimham Committee

Tandon Committee

Sukhamoy Chakravarty Committee

Deheja Committee
42. Match the items of List-I with those in List-II and select the correct answer.

List-I List-II
Bank Rate Policy 1. Involving the shortening of the currency of bills eligible for rediscount.
Credit Rationing 2. Involving the Purchase and sale of securities in the open market.
Variable Reserve System 3. Involving the alteration of discount rate.
Open Market Operations 4. Involving the variation of the minimum reserves
Codes


1 4 2 3

2 1 3 4

4 2 1 3

3 1 4 2

43. Match the items of List-I with the items of List-II and select the correct answer using the codes given below the lists.

List-I List-II
Rural Industries Programme Meant for various target groups like Rural youth, Ex-serviceman, women and Scheduled Castes/Tribes
Mahila Vikas Nidhi Scheme Aim at ensuring flow of credit to the disadvantaged sections of the society.
Entrepreneurship Development Programme Commercial exploitation of local resources.
Micro Credit Scheme Provides assistance to voluntary organizations for the benefit of women.
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44. According to the FDI Policy of the Government of India the FDI in banks is limited to

20% in Nationalised Banks and 74% in Private Sector Banks.

20% in Nationalised Banks and 49% in Private Sector Banks.

16% in Nationalised Banks and 74% in Private Sector Banks.

49% in Nationalised Banks and 51% in Private Sector Banks.
45. According to the recent guidelines (2013) of the Reserve Bank of India the Private Sector Banks are required to have a minimum paid up equity capital of

300 crores

200 crores

400 crores

500 crores
46. International trade theory which provides that capital intensive country should export labourintensive goods and import capital goods is referred to as

Leontief Paradox

Heckscher-Ohlin Theory

Mercantilism Theory

Theory of Comparative Advantage
47. Which of the following is not a form of economic integration in the context of intra-regional trade

Customs Union

European Union

Economic Union

African Union
48. 'Crawling Peg System means

Fixed Exchange Rate System.

Floating Exchange Rate System.

Hybrid of Fixed and Floating Exchange System.

None of the above.
49. From the following modes of international business, identify the mode which involves strategic alliance

Franchising

Leasing

Turnkey Project

Joint venture
50. Which of the following expressions amount to the import restriction measures

Currency control
Establishment of EPZs
Tariff cuts
Imposition of tariffs
Imposition of non-tariff barriers Codes

and

and

and

and