500+ TOP Business Management Questions and answers

BUSINESS MANAGEMENT Multiple Choice Questions :-

1. TQM focuses on
A. employees

B. customers

C. both a and b

D. none

Answer: C.both a and b

2. Which Japanese term refers to continuous improvement
A. kaizen

B. kanban

C. seri

D. seito

Answer: A.kaizen

3. ISO emphasis on
A. prevention

B. inspection

C. rejection

D. all the above

Answer: A.prevention

4. …….. provides all relevant information needed by the managers at different levels for taking correct decisions
A. mbo

B. mis

C. dbms

D. none

Answer: B.mis

5. …….. is an internationally recognised Quality Management System
A. iso9001

B. iso14001

C. iso 2014

D. none

Answer: A.iso9001

6. TQM & ISO both focuses on
A. customer

B. employee

C. supplier

D. all the above

Answer: A.customer

7. ……… is a workflow diagram to bring forth a clearer understanding of a process or series of parallel processes
A. fishbone diagram

B. interrelation graph

C. tree diagram

D. process mapping

Answer: D.process mapping

8. Where was the TQM emerged?
A. japan

B. germany

C. india

D. america

Answer: A.japan

9. Tools of TQM ……
A. process maps

B. benchmarking

C. force field analysis

D. all the above

Answer: D.all the above

10. ………. Is a management philosophy and methodology which was invented by Motorola.
A. tqm

B. tpm

C. 6- sigma

D. none

Answer: C.6- sigma

11. Ethics is a system of ……..principles
A. moral

B. guiding

C. value

D. none

Answer: A.moral

12. …………. Means a process of stimulating people to action to accomplish desired goals
A. motivation

B. leadership

C. communication

D. none of these

Answer: A.motivation

13. Maslow’s theory of motivation is …………..
A. theory x and

B. two factor theory

C. achievement theory

D. none of these

Answer: D.none of these

14. Need Hierarchy theory was developed by …………
A. mc gregor

B. abraham maslow

C. herzberg

D. mc clelland

Answer: B.abraham maslow

15. According to Need Hierarchy theory, the human needs are ……….
A. limited

B. unpredictable

C. unlimited

D. all of these

Answer: C.unlimited

16. ………… needs are need for survival
A. safety

B. esteem

C. social

D. physiological

Answer: D.physiological

17. …………… is the need for love and affection
A. safety

B. esteem

C. social

D. physiological

Answer: C.social

18. The desire to reach the peak of one’s potential is called as ………..
A. self actualization needs

B. safety need

C. esteem need

D. social need

Answer: A.self actualization needs

19. Two Factor Theory is also known as …………….
A. theory x and y

B. motivation hygiene theory

C. achievement theory

D. none of these

Answer: B.motivation hygiene theory

20. In ———type of organization, workers receive instructions from various specialists.
A. line

B. functional

C. informal

D. none

Answer: B.functional

21. If duties and authority are shown in the organizational structure of the enterprise, then it is called
A. informal delegation

B. formal delegation

C. written delegation

D. none of these

Answer: B.formal delegation

22. ———–is an example of internal source of recruitment
A. advertisement

B. trade unions

C. employment exchange

D. promotion

Answer: D.promotion

23. ——– is the process of inducting an employee into the social set up of work.
A. placement

B. induction

C. absorption

D. none of these

Answer: B.induction

24. ——– is the act of increasing the knowledge and skills of an employee for doing a job.
A. training

B. induction

C. placement

D. orientation

Answer: A.training

25. ——– means issuing orders, instructions and commands.
A. directing

B. unity of command

C. authority

D. all of these

Answer: A.directing

26. ——— is a statement of expected results expressed in quantitative terms for a period
A. plan

B. budget

C. schedule

D. none of these

Answer: B.budget

27. The word Ethics is derived from Greek word……
A. ethios

B. ethikos

C. ethoes

D. none

Answer: B.ethikos

28. What is meant by the phrase CSR?
A. corporate social responsibility

B. company social responsibility

C. corporate society responsibility

D. company society responsibility

Answer: A.corporate social responsibility

29. The goal of corporate governance and business ethics education is to:
A. teach students their professional accountability and to uphold their personal integrity to society.

B. change the way in which ethics is taught to students.

C. create more ethics standards by which corporate professionals must operate.

D. increase the workload for accounting students.

Answer: C.create more ethics standards by which corporate professionals must operate.

30. The corporate governance structure of a company reflects the individual companies’:
A. cultural and economic system.

B. legal and business system.

C. social and regulatory system.

D. all of the above.

Answer: D.all of the above.

31. The four types of social responsibility include:
A. legal, philanthropic, economic, and ethical

B. ethical, moral, social, and economic

C. philanthropic, justice, economic, and ethical

D. legal, moral, ethical, and economic

Answer: A.legal, philanthropic, economic, and ethical

32. A(n) is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.
A. crisis

B. ethical issue

C. indictment

D. fraud

Answer: B.ethical issue

33. Which of the following statements best describes Corporate Social Responsibility?
A. a corporation’s requirement to make as much profit as possible.

B. a corporation’s obligation to society that goes beyond the requirements of the law and economics to take into account the social and environmental impact of its decisions.

C. a corporation’s obligation to consider the impact of its decisions on the environment.

D. the duty of care a corporation has to its employees and customers.

Answer: B.a corporation’s obligation to society that goes beyond the requirements of the law and economics to take into account the social and environmental impact of its decisions.

34. The moral case for CSR, i.e. that it is the right thing to do, is justified by which of the following arguments?
A. that the corporation is a creation of society and should therefore serve its needs.

B. that the corporation is a legal creation and therefore cannot be a moral agent.

C. large corporations do not have the power or resources to address society’s problems.

D. business decisions will have social and environmental consequences which will be addressed by governments.

Answer: A.that the corporation is a creation of society and should therefore serve its needs.

35. Which of the following form part of the business case for CSR?
A. better motivated staff reduce operating costs.

B. increased brand value and reputation.

C. the maintenance of the ‘licence to operate’.

D. all of the options given.

Answer: D.all of the options given.

36. The word moral is derived from the Latin word ………
A. moralis

B. morilitic

C. monatic

D. none

Answer: A.moralis

37. ……..ethics is a study of human behaviour as a consequence of beliefs about what is right or wrong.
A. normative

B. meta

C. applied

D. moral

Answer: D.moral

38. The main purpose of business ethics is to?
A. understanding ethical uncertainities

B. principles and concepts

C. application of practices

D. all of the above

Answer: B.principles and concepts

39. …………………is primarily concerned with the relationship of business goals and techniques to specifically human ends
A. business ethics

B. code of conduct

C. all of these

D. none

Answer: A.business ethics

40. …………are the principles, which govern and guide business people to performbusiness functions
A. business ethics

B. code of conduct

C. all of these

D. none

Answer: A.business ethics

41. In ………… style of leadership a manager centralizes decision making power inhimself
A. autocratic

B. participative

C. free rein

D. none of these

Answer: A.autocratic

42. ……………… leader tries to make the subordinates to feel that they are actuallyparticipating in decision making even though he had already taken he decision.
A. participative

B. free rein

C. manipulative autocrat

D. none of these

Answer: C.manipulative autocrat

43. ………………. Leadership gives complete freedom to subordinates
A. authoritarian

B. participative

C. free rein

D. none of these

Answer: C.free rein

44. Participative leadership is also referred as …………………. leadership
A. democratic

B. consultative

C. ideographic

D. all of these

Answer: D.all of these

45. ……………. Is vested with the democratic style of leadership
A. negative motivation

B. centralization of authority

C. decentralization of authority

D. one way communication

Answer: C.decentralization of authority

46. ——— is considered as the primary function of management?
A. organizing

B. planning

C. staffing

D. controlling

Answer: B.planning

47. MBO stands for?
A. management of business objectives

B. management by objectives

C. managing business operations

D. none of these

Answer: B.management by objectives

48. ——– is the process of selecting one best alternatives from different alternatives.
A. planning

B. organizing

C. decision making

D. forecasting

Answer: C.decision making

49. ——– is the process of identifying and grouping of work to be performed
A. organizing

B. staffing

C. division of labour

D. planning

Answer: A.organizing

50. Operational guides to action is known as
A. policies

B. procedures

C. plan

D. none of these

Answer: B.procedures

51. ——– is a sequence of activities to be undertaken for implementing the policies and achieving the objectives of an enterprise.
A. procedures

B. programme

C. rule

D. plans

Answer: B.programme

52. ——– is an organizational structure which clearly defines duties, responsibilities, andauthority.
A. formal

B. informal

C. natural

D. none of these

Answer: A.formal

53. Koontz and O’Donnel are the advocates of ……………….approach to management
A. system approach

B. empirical

C. contingency

D. operational

Answer: D.operational

54. According to …………… approach, management is a logical process and it can beexpressed in terms of mathematical symbols and relationships.
A. empirical

B. management science

C. contingency

D. operational

Answer: B.management science

55. ……………….approach of management heavily concentrates on ‘People’ aspect ofmanagement.
A. human relations

B. system

C. empirical

D. management science

Answer: A.human relations

56. ……………is the art of knowing exactly what you want men to do and then seeing thathow they do it in the best and cheapest way.
A. general management

B. scientific management

C. administration

D. none

Answer: B.scientific management

57. …………..is introduced to secure the benefits of division of labour or specialization atthe supervising level under scientific management
A. operating management

B. functional foremanship

C. either a or b

D. none

Answer: B.functional foremanship

58. ………………….helps to determine a fair days work and rest period to complete it
A. work study

B. time study

C. motion study

D. all of these

Answer: A.work study

59. The main objective of ……………..study is to determine and eliminate unnecessaryand wasteful movements
A. work study

B. time study

C. motion study

D. all of these

Answer: C.motion study

60. The author of the famous book “General and Industrial Management”is……………………
A. henry fayol

B. f.w. taylor

C. henry gantt

D. none

Answer: A.henry fayol
61. Comparison between actual and standard performance is known as……
A. planning

B. organising

C. controlling

D. none

Answer: C.controlling
62. CPM method of control was developed by
A. due de meemoues co.

B. de pont co.

C. gast niksons chart

D. none

Answer: B.de pont co.
63. Standard costing is used to control the
A. cost

B. profit

C. volume

D. revenue

Answer: B.profit
64. To convert a message in to groups of words, symbols, gestures or sounds that presentideas or concepts is called…….
A. encoding

B. feedback

C. noise

D. none

Answer: A.encoding
65. Suggestions for improvements from an employee in the accounting department are anexample of…..
A. upward communication

B. horizontal communication

C. downward communication

D. none

Answer: A.upward communication
66. Father of Modern Management theory is ………………
A. henry fayol

B. f.w.taylor

C. henry gantt

D. none

Answer: A.henry fayol
67. ………….suggests that each communication going up or coming down must flowthrough each position in the line of authority
A. communication pattern

B. horizontal communications

C. scalar chain

D. none of these

Answer: C.scalar chain
68. Management can be considered as………………..
A. exact science

B. inexact science

C. psuedo science

D. b or c

Answer: D.b or c
69. …………………..is that phase of business enterprise that concerns itself with theoverall determination of institutional objectives and the policies necessary to be followed in achieving those objectives.
A. management

B. administration

C. both of these

D. none

Answer: B.administration
70. ……….has defined the basic problem of managing as the art of “knowing exactly whatyou want men to do and then see that they do it in the best and cheapest way “
A. henry fayol

B. f.w. taylor

C. mary parker follet

D. none of these

Answer: B.f.w. taylor

71. According to functional foremanship, the speed boss, Inspector, foreman and gangboss are entrusted with the …………………aspect of work.
A. planning

B. organizing

C. doing

D. none of these

Answer: C.doing
72. …………..is undertaken to find out the one best way of doing the thing
A. job analysis

B. merit rating

C. job enrichment

D. none

Answer: A.job analysis
73. The principle of Unity of command is contrary to Taylors……………………..
A. rule of thumb

B. unity of direction

C. functional foremanship

D. none of these

Answer: C.functional foremanship
74. According to …………..principle, each group of activities with the same objective musthave one head and one plan
A. unity of direction

B. unity of command

C. either of these

D. none

Answer: A.unity of direction
75. Everything which goes to increase the importance of subordinates roleis……………….
A. decentralization

B. centralization

C. either a or b

D. none

Answer: A.decentralization

76. The Book “ Functions of Executive” was written by …………………..
A. p.f. drucker

B. chester barnard

C. herbert simon

D. none

Answer: B.chester barnard
77. ………………..school of Management recognizes the existence of a centralized body ofknowledge for the Management.
A. system approach

B. empirical

C. contingency

D. operational

Answer: D.operational
78. …………..school of thought has developed on the idea that there is no single bestmethod to find solutions to Managerial problems
A. system approach

B. empirical

C. contingency

D. operational

Answer: C.contingency
79. There are……. Levels of management
A. five

B. three

C. six

D. four

Answer: B.three
80. Luther Gullick described functions of management as………
A. podscorb

B. posdcorb

C. pocscrob

D. podsorb

Answer: A.podscorb
81. ……… can be defined as the process of grouping of activities in to units and subunitsfor the purpose of administration
A. departmentation

B. span of control

C. delegation

D. centralisation

Answer: A.departmentation
82. . …………….is a comprehensive plan designed to implement the policy and accomplishthe objectives.
A. schedules

B. budgets

C. project

D. programs.

Answer: D.programs.
83. ‐‐‐‐‐‐‐‐ are the simplest and the most specific type of standing plans.
A. policy

B. rule

C. project

D. schedule.

Answer: B.rule
84. ————is the process of searching for prospective employees and stimulating them toapply for the Job.
A. selection

B. training

C. recruitment

D. induction

Answer: C.recruitment
85. ———- is considered as a negative function of management.
A. selection

B. recruitment

C. training

D. placement

Answer: A.selection
86. ——— is the process of comparing actual performance with the standard and takingcorrective Action.
A. controlling

B. management

C. planning

D. co-ordination

Answer: A.controlling
87. ——— a process of integrating the interdepartmental activities as unified actiontowards the Achievement of the common goal of the organization.
A. controlling

B. directing

C. co-ordination

D. all of these

Answer: B.directing
88. Two Factor Theory was developed by …………….
A. mc gregor

B. abraham maslow

C. herzberg

D. mc clelland

Answer: C.herzberg
89. Achievement Theory was developed by ……….
A. mc gregor

B. abraham maslow

C. herzberg

D. mc clelland

Answer: D.mc clelland
90. Achievement Theory is concerned with ………………..
A. affiliation

B. power

C. achievement

D. all of these

Answer: D.all of these
91. Mc Gregor’s motivation theory is known as ………………
A. theory x and y

B. two factor theory

C. achievement theory

D. none of these

Answer: A.theory x and y
92. …………….. is vested with negative motivation
A. achievement theory

B. theory x

C. theory y

D. all of these

Answer: B.theory x
93. The techniques and tools for organizing and co-ordinating a group of individualsworking towards a common goal
A. performance management

B. team management

C. performance appraisal

D. none of these

Answer: B.team management
94. ……….. Communication is also known as Grape wine
A. formal

B. informal

C. lateral

D. none of these

Answer: B.informal
95. ……… approach of management heavily concentrates on People aspect ofmanagement
A. human relation

B. system

C. empirical

D. management science

Answer: A.human relation
96. ………….. developed MBO
A. henry fayol

B. rensis likert

C. michael porter

D. peter f drucker

Answer: D.peter f drucker
97. MBO gives emphasis on …………….
A. top management

B. middle management

C. objectives

D. lower management

Answer: C.objectives
98. MBO establishes a …………………
A. community of interest

B. centralized organization

C. rigid organisation structure

D. all of these

Answer: A.community of interest
99. According to Fayol , the principles of Management are……………….
A. rigid

B. flexible

C. a or b

D. none of the above

Answer: B.flexible
100. ………..is the right of a superior to give orders to subordinates, take decisions etc.
A. authority

B. responsibility

C. accountability

D. none

Answer: A.authority

101. Authority and responsibility are …………….to each other
A. supplementary

B. complementary

C. contradictory

D. none

Answer: B.complementary
102. ………….principle states that an employee should receive orders form one superior only
A. unity of direction

B. unity of command

C. esprit de corps

D. none

Answer: B.unity of command
103. According to ………….principle, there should always exist one head and one plan for agroup of activities having the same objective
A. unity of direction

B. unity of command

C. esprit de corps

D. none

Answer: A.unity of direction
104. …………..is highly suitable for large organizations having large number of managerialpersonnel at different levels.
A. centralization

B. decentralization

C. departmentalization

D. all of these

Answer: B.decentralization
105. ………….is defined as a chain of superiors ranging from the ultimate authority to thelowest ranks
A. structure

B. scalar chain

C. both of these

D. none of these

Answer: B.scalar chain
106. The book “Creative Experience was written by ………………..
A. henry fayol

B. f.w. taylor

C. mary parker follet

D. none of these

Answer: C.mary parker follet
107. ……… is a world wide federation of national standards bodies, with one bodyrepresenting each member country.
A. ansi

B. ifrs

C. ias

D. iso

Answer: D.iso
108. Ethics means ……….
A. character

B. manner

C. custom

D. all of tehse

Answer: D.all of tehse

109. …… is a sub function of direction
A. supervision

B. planning

C. organising

D. recruitment

Answer: A.supervision
110. ……… refers to coordination between activities of a manager and his subordinates
A. vertical coordination

B. horizontal coordination

C. diagonal coordination

D. none

Answer: A.vertical coordination
111. Which of the following is not an area of responsibility for a logisticsmanager?
A. warehousing

B. inventory

C. information systems

D. marketing

Answer: D.marketing
112. The objective of ISO-9000 family of Quality management is
A. customer satisfaction

B. employee satisfaction

C. skill enhancement

D. environmental issues

Answer: A.customer satisfaction

113. Which of the following is responsible for quality objective?
A. top level management

B. middle level management

C. frontline management

D. all of the above

Answer: A.top level management
114. Which of the following is for Environment management?
A. iso-9000

B. iso-14000

C. iso-26000

D. iso-31000

Answer: B.iso-14000
115. The necessity of human relation in management is emphasised by….
A. elton mayo

B. charles babbage

C. f.w.taylor

D. hnery fayol

Answer: A.elton mayo
116. Ethics is a system of …………… principles
A. moral

B. guiding

C. value

D. none of the above

Answer: A.moral

117. .………….. mean a code of conduct
A. principles

B. values

C. ethics

D. none of the above

Answer: C.ethics
118. A document prepared to guide organization members when encountering ethical dilemmas is
A. code of conduct

B. list of rules and responsibilities

C. code of ethics

D. outline of expected behaviors

Answer: C.code of ethics
119. The form of ethics that endeavors to help professionals decide what to do when they are confronted with a case or situation that raises an ethical question or moral problem is referred to as
A. professional ethics

B. organizational ethics

C. business ethics

D. none of the above

Answer: C.business ethics
120. ……….. is a problem, situation, or opportunity requiring an individual, group, ororganization to choose among several action that must be evaluated as right or wrong.
A. crisis

B. ethical issue

C. condemnation

D. fraud

Answer: B.ethical issue

121. ……….. ethics is study of human behavior as a consequence of beliefs about what is right orwrong.
A. normative

B. meta

C. applied

D. moral

Answer: D.moral
122. The word “ethics” is derived from greek word ………….
A. ethios

B. ethikos

C. etheos

D. none of these.

Answer: B.ethikos
123. Ethics is a ……….
A. pure science

B. normative science

C. inexact science

D. none of these.

Answer: B.normative science
124. Ethics means…………..
A. character

B. manner

C. customs

D. all of these

Answer: D.all of these
125. …………. Deals with the right actions of individuals.
A. sincerity

B. rules

C. ethics

D. all of these

Answer: C.ethics

126. What is the classical view of management’s social responsibility?
A. to create specific environment in work place

B. to maximise profits

C. to protect and improve society’s welfare

D. all of the above

Answer: B.to maximise profits
127. What does the socio – economic view of social responsibility talk about?
A. social responsibility goes beyond making profits to include protecting and improving society’s welfare

B. encourage business

C. financial return

D. none of the above

Answer: A.social responsibility goes beyond making profits to include protecting and improving society’s welfare
128. What is the only concern of stock holders?
A. financial return

B. make profits

C. encourage business to take up social responsibility

D. none of the above

Answer: A.financial return
129. Which of the following is a disadvantage of social responsibility?
A. possession of resources

B. b. ethical obligation

C. public image

D. violation of profit maximization

Answer: D.violation of profit maximization
130. __________ is when a firm engages in social actions because of its obligation to meetcertain economic and legal responsibilities.
A. social obligation

B. social responsibility

C. social responsiveness

D. none of the above

Answer: A.social obligation
131. When social criteria is applied on investment decisions it is called ____
A. social responsiveness

B. ethical obligation

C. social screening

D. financial return

Answer: C.social screening
132. The recognition of the close link between an organization’s decisions and activities and itsimpact on the natural environment is called __________.
A. global environment

B. greening of management

C. social actions

D. none of the above

Answer: B.greening of management
133. ……………. Generally refers to transparent business practices that are based on ethicalvalues, compliance with legal requirements, and respect for people, communities, and the environment.
A. corporate social responsibility

B. code of ethics

C. ethical standards

D. none of the above

Answer: A.corporate social responsibility
134. WBCSD stands for
A. world business council for sustainable development

B. world business company for sustainable development

C. world bank council for sustainable development

D. world business council for strategic development

Answer: A.world business council for sustainable development
chapter:
Unit 1
135. Management is a continuous process because it persist as long as……….. exist
A. objective

B. organisation

C. activity

D. human resource

Answer: B.organisation
136. Management helps the organisation to reach its……….
A. Goal

B. top

C. level

D. beginning

Answer: A.Goal
137. management is multi………… Process
A. work

B. multidisciplinary

C. part

D. Administration

Answer: B.multidisciplinary
138. coordination is very essential for successful………..
A. achievement

B. b.management

C. labour work

D. d.none of this

Answer: B.b.management
139. …….. is very important for an organisation
A. teamwork

B. group work

C. together work

D. none of these

Answer: B.group work
140. dynamic means………
A. changing

B. fix

C. stable

D. can’t say

Answer: A.changing
141. Management is………. Kind of force
A. Tangible

B. intangible

C. visible

D. hidden

Answer: B.intangible
142. All processes of an organisation are…………
A. Unknown

B. interrelated

C. understandable

D. can’t say

Answer: B.interrelated
143. directors are the…….. level management
A. top

B. low

C. middle

D. can’t say

Answer: A.top
144. Every……. is important for an organisation
A. Strategies

B. Level

C. Objectives

D. policies

Answer: B.Level
145. Foremen are the part of…. Management
A. Top

B. Middle

C. Lower

D. none of these

Answer: C.Lower
146. Lower level management is also known as….
A. Decision maker

B. Operational

C. Executive

D. none of these

Answer: B.Operational
147. The management level shows the…… Of executive
A. rank

B. organisation

C. directors

D. none of these

Answer: A.rank
148. The initial function of organisation is…..
A. Organising

B. Planning

C. coordinating

D. directing

Answer: B.Planning
149. ….. Is the the next step to the planning
A. Coordination

B. organising

C. directing

D. staffing

Answer: B.organising
150. Hiring personal is is…… Process
A. Coordination

B. Organizing

C. directing

D. staffing

Answer: D.staffing

151. Showing right direction to the staff is…..
A. Coordination

B. organising

C. directing

D. staffing

Answer: C.directing
152. Integration of activities can you done in ………
A. Coordination

B. organising

C. directing

D. staffing

Answer: B.organising
153. Management help in proper utilisation of…
A. Resources

B. Skills

C. knowledge

D. all the above

Answer: A.Resources
154. Reduction of wastage can lead to maximum…..
A. Input

B. output

C. efforts

D. work

Answer: B.output
155. Equilibrium is is very important for the the….. Stability of an organisation
A. Organisation

B. environment

C. economical

D. physical

Answer: C.economical
156. An organisation try to change the product as per the needs of the…..
A. Employees

B. society

C. executive

D. labours

Answer: B.society
157. The book ok general and Industrial industrial administration is written by……
A. Frederick Taylor

B. henri Fayol

C. peter drucker

D. none of these

Answer: A.Frederick Taylor
158. Fourteen principles of management as suggested by…..
A. Frederick Taylor

B. henri Fayol

C. peter drucker

D. none of these

Answer: B.henri Fayol
159. According to henri Fayol……. should follow the 14 principles
A. supervisors l

B. abours

C. managers

D. directors

Answer: C.managers
160. The basic principles of henri Fayol are useful for……. Management
A. Temporary

B. effective

C. short time

D. long term

Answer: B.effective
161. Managerial activities include
A. Security

B. Planning

C. statistics

D. property rights

Answer: B.Planning
162. Division of work is is one of the principal of ……….. Theory
A. Frederick Taylor

B. henri Fayol

C. peter drucker

D. none of these

Answer: B.henri Fayol
163. Unity of, isnd unity of of,nd,nd is is principle of………..
A. henri Fayol

B. Frederick Taylor

C. peter drucker

D. none of these

Answer: A.henri Fayol
164. The book principles of scientific management is written by……….
A. Frederick Taylor

B. henri Fayol

C. philip Kotler

D. peter drucker

Answer: B.henri Fayol
165. Motion study is used by …… For improve efficiency
A. henri Fayol

B. philip Kotler

C. Frederick Taylor

D. peter drucker

Answer: C.Frederick Taylor
166. The book practice of management is published by…….
A. Frederick Taylor

B. henri Fayol

C. philip Kotler

D. peter drucker

Answer: A.Frederick Taylor

167. MBO is used to calculate……..
A. Performance

B. ability

C. scale

D. none of these

Answer: A.Performance
168. Peter drucker process of checking validity e of objectives is……..
A. old method

B. smart method

C. new method

D. none of these

Answer: B.smart method
169. according to mintzberg monitor has a roLe in……..
A. information

B. decision

C. creation

D. none of these

Answer: A.information
170. According to mintzberg a good decision maker is also………… Handler
A. Disturbance

B. program

C. activity

D. none of these

Answer: A.Disturbance

171. According to means and entrepreneurs should have……… Ideas
A. Improvement

B. innovative

C. upgrade

D. none of these

Answer: B.innovative
chapter:
Unit 2
172. Purpose of planning is is to ensure optimum utilisation human and ………..
A. Economic resources

B. activities

C. goal

D. objective

Answer: A.Economic resources
173. According to George Terry”…… is Selecting and relating of facts and using andformulation of propose day activities”
A. Planning

B. organising

C. directing

D. controlling

Answer: A.Planning
174. Planning premises provide……… For planning and action.
A. way

B. framework

C. correct

D. effective

Answer: B.framework
175. Contingency planning is useful if primary plans…..
A. Fails

B. available

C. schedule

D. none of these

Answer: A.Fails

176. Day today work standards can be decided in……..
A. Strategic planning

B. tactical planning

C. contingency planning

D. operational planning

Answer: D.operational planning
177. Planning establishes standard for……..
A. Directing

B. forecasting

C. controlling

D. none of these

Answer: C.controlling
178. Planning reduces……. Activities
A. New

B. Old

C. overlapping

D. none of these

Answer: C.overlapping
179. Taking the review of the market is called as……. In forecasting
A. Delphi technique

B. focus Group study

C. test marketing

D. none of these

Answer: C.test marketing
180. From test marketing results idea of people …… about the product can understood
A. Interest

B. strategy

C. planning

D. none of these

Answer: A.Interest
181. In quantitative techniques of of demand forecasting seasonal variations aredependent upon……..
A. Price

B. organisation

C. season

D. none of these

Answer: C.season
182. A chronological sequence of steps to be undertaken to enforce a policy andto attain an objective is known as ___________.
A. objective.

B. strategies.

C. procedures.

D. rules.

Answer: C.procedures.
183. A statement of expected results expressed in numerical terms for a definiteperiod of time in the future is known as ____________.
A. objective.

B. strategies.

C. procedures.

D. budgets.

Answer: D.budgets.
184. The process of establishing a time sequence for the work is known as__________.
A. objective.

B. schedules.

C. procedures.

D. budgets.

Answer: B.schedules.
185. A rigid plan, no scope for discretion __________.
A. rule.

B. schedules.

C. procedures.

D. budgets.

Answer: A.rule.
186. Specifying the manner of executing policy is known as ________________.
A. objective.

B. schedules.

C. procedures.

D. budgets.

Answer: C.procedures.
187. Goal or target to be achieved is known as ____________.
A. objective.

B. schedules.

C. procedures.

D. budgets.

Answer: A.objective.
chapter:
Unit 3
188. Penalty is levied for violation of __________.
A. rules.

B. procedures.

C. policy.

D. methods.

Answer: A.rules.
189. Plan that establish a required method of handling future activities is called_________.
A. rules.

B. procedures.

C. policy.

D. methods.

Answer: B.procedures.
190. Supply of human and material resources and helps to achieve the objective ofbusiness is______________.
A. planning.

B. organisaiton.

C. management.

D. control.

Answer: B.organisaiton.
191. Formal authority flows from upwards to downwards in___________.
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: A.formal organization.
192. Informal authority flows upwards to downwards or horizontallyin_____________.
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: B.informal organization.
193. Rules, duties and responsibilities or workers are given in writingin______________.
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: A.formal organization.
194. Which arises from man’s quest for social satisfaction?
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: B.informal organization.
195. Which type of organization is permanent and stable?
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: A.formal organization.
196. Which type of organization gives importance to terms of authority andfunctions?
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: A.formal organization.
197. Which type of organization gives importance to people and theirrelationships?
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: B.informal organization.
198. Which organisaitonal relationship gives a greater job satisfaction and resultsin maximum production?
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: B.informal organization.
199. Which type of organization has no place in the organization chart?
A. formal organization.

B. informal organization.

C. business or oganisation.

D. strategic organization.

Answer: B.informal organization.
200. “Decision making is the selection based on some criteria from two or morepossible alternatives” is defined by___________.
A. Farland.

B. Mac Donald.

C. Terry.

D. M.C. Nites.

Answer: C.Terry.

201. The selection of best alternative from many alternatives is knownas__________.
A. selection.

B. decision-making.

C. organizing.

D. budgeting.

Answer: B.decision-making.
202. Deal with routing and repetitive problems is a __________.
A. programmed decision.

B. non-programmed decision.

C. major decision.

D. minor decision.

Answer: A.programmed decision.
203. Placing purchase order is an example of ________.
A. programmed decision.

B. non-programmed decision.

C. major decision.

D. decision

Answer: A.programmed decision.
204. The decision taken by high level of management is _______________.
A. programmed decision.

B. non-programmed decision.

C. individual decision.

D. non-economic decision.

Answer: B.non-programmed decision.
205. Non-programmed decision is also called _____________.
A. routine decisions.

B. structured decisions.

C. strategic decisions.

D. operative decisions.

Answer: C.strategic decisions.
206. Programmed decision is also known as _____________.
A. routine decisions.

B. structured decisions.

C. strategic decisions.

D. operative decisions.

Answer: D.operative decisions.
207. The decision which has long term impact on business is _____.
A. programmed decision.

B. non-programmed decision.

C. individual decision.

D. non-economic decision.

Answer: B.non-programmed decision.
208. The decision which relates to day-to-day operation of an organization isknown as ____.
A. major decision.

B. organisational decision.

C. personal decision.

D. operative decision.

Answer: D.operative decision.
209. The decision which does not incur any expenses is known as ____.
A. economic decision.

B. crisis decision.

C. non-economic decision.

D. problem decision.

Answer: C.non-economic decision.
210. The decision which is implemented within the concerned department isknown as ___.
A. economic decision.

B. departmental decision.

C. non-economic decision.

D. problem decision.

Answer: B.departmental decision.
chapter:
Unit 4
211. Decision taken by committee formed by the top management for specificpurpose is ____.
A. group decision.

B. organisational decision.

C. personal decision.

D. operative decision.

Answer: A.group decision.
212. Crisis decision is also known as ____.
A. group decision.

B. major decision.

C. minor decision.

D. spot decision.

Answer: D.spot decision.
213. A decision taken to meet unexpected situations is known as ____.
A. economic decision.

B. crisis decision.

C. non-economic decision.

D. problem decision.

Answer: B.crisis decision.
214. The authority flows from top to bottom through the structure of anorganization is ____.
A. The acceptance of authority theory.

B. The formal authority theory.

C. The competence theory.

D. The organisaiton theory.

Answer: B.The formal authority theory.
215. Which theory is also called traditional authority theory?
A. The acceptance of authority theory.

B. The formal authority theory.

C. The competence theory.

D. The organisaiton theory.

Answer: B.The formal authority theory.
216. If the subordinates do not accept the command of their superior, then thesuperior cannot be said to have any authority over them is given in.
A. The acceptance of authority theory.

B. The formal authority theory.

C. The competence theory.

D. The organisaiton theory.

Answer: A.The acceptance of authority theory.
217. The type of authority is invested with the persons by virtue of the office heldby them is ____.
A. The acceptance of authority theory.

B. The formal authority theory.

C. The competence theory.

D. The organisaiton theory.

Answer: C.The competence theory.
218. The process whereby a manger shares his work and authority with hissubordinates is________.
A. Decentralisaiton

B. Responsibility.

C. Delegation.

D. decision making.

Answer: C.Delegation.
chapter:
Unit 5
219. Transfer can be considered as……. Recruitment.
A. External

B. Internal

C. employment exchange

D. none of these

Answer: B.Internal
220. Promotion can be considered as……. Recruitment
A. External

B. Internal

C. employment exchange

D. none of these

Answer: B.Internal
221. Reemployment of ex employees can be considered as…….. Recruitment
A. internal

B. External

C. employment exchange

D. none of these

Answer: A.internal
222. ……. Is type of external recruitment
A. Advertisement

B. transfer

C. promotion

D. reemployment

Answer: A.Advertisement
223. ……..Is type of external recruitment
A. Educational institutions

B. transfer

C. promotion

D. reemployment

Answer: A.Educational institutions
224. ……..Is type of external recruitment
A. transfer

B. employment agencies

C. promotion

D. reemployment

Answer: B.employment agencies
225. ……..Is type of external recruitment
A. Recommendations

B. transfer

C. promotion

D. reemployment

Answer: A.Recommendations

226. Recruiting through labour contractors is type of ……..
A. Internal source

B. external source

C. can’t say

D. none of these

Answer: B.external source
227. Interview is a part of……..
A. Recruitment

B. Selection

C. recommendation

D. none of these

Answer: B.Selection
228. ………. Is aspect of selection process
A. Advertisement

B. employment agencies

C. interview

D. none of these

Answer: C.interview
229. Tests can give the idea about …… knowledge of candidate
A. Intellectual

B. Organizational

C. team Spirit

D. none of these

Answer: A.Intellectual
230. …….. can change as per the job profile.
A. Test

B. organisational

C. team Spirit

D. none of these

Answer: A.Test
231. Assessment centres are helpful to organisation to assess …….. and other skills
A. Psychological

B. speaking

C. appearance

D. none of these

Answer: A.Psychological
232. Management games are organised in……
A. Club

B. assessment centre

C. factory

D. none of these

Answer: B.assessment centre
233. Part of Staffing process outside the organisation is……….
A. Selection

B. recruitment

C. training

D. none of these

Answer: B.recruitment
234. Part of Staffing process inside the organisation is……….
A. Selection

B. recruitment

C. training

D. none of these

Answer: A.Selection
235. After selecting candidate….. Is given
A. Development

B. Direction

C. Training

D. none of these

Answer: C.Training
236. …….. Process candidates have not to cross over many hurdles
A. Selection

B. recruitment

C. training

D. none of these

Answer: B.recruitment
237. …….. Process candidates have to cross over many hurdles
A. recruitment

B. Selection

C. training

D. none of these

Answer: B.Selection
238. …….. Encourages large number of candidates for job.
A. training

B. Selection

C. recruitment

D. none of these

Answer: C.recruitment
239. Rejection of candidate is done in……. In process
A. recruitment

B. Selection

C. training

D. none of these

Answer: B.Selection
240. …… Creates contact between employers and applicants
A. recruitment

B. Selection

C. training

D. none of these

Answer: B.Selection
241. ……… Is the process of picking up more competent and suitable employes.
A. Selection

B. recruitment

C. training

D. none of these

Answer: A.Selection
chapter:
Unit 6
242. …….is like teaching a teacher in a classroom
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
243. Supervision communication and leadership is involved in…….
A. staffing

B. Organising

C. directing

D. none of these

Answer: C.directing
244. ……. Process is is motivating the subordinates
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
245. ……… Inspire the subordinates to achieve common goal
A. staffing

B. Organising

C. directing

D. none of these

Answer: C.directing
246. When Manager guide subordinates is nothing but……
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
247. Showing the right way off work to the subordinates is a part of…….. Process
A. staffing

B. Organising

C. directing

D. none of these

Answer: C.directing
248. ……… Is concerned with instructions guidance to the the subordinates
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
249. Explaining subordinates how to do is nothing but……
A. staffing

B. Organising

C. directing

D. none of these

Answer: C.directing
250. Directing flows from…… to bottom
A. Low

B. high

C. top

D. none of these

Answer: C.top

251. Direction takes place……. Levels of the management
A. All

B. few

C. lower

D. none of these

Answer: A.All
252. ……. Performance-oriented function
A. staffing

B. Organising

C. directing

D. none of these

Answer: C.directing
253. ……. Study and moulding of human behaviour
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
254. A proper discipline can be maintained with proper…..
A. staffing

B. Organising

C. directing

D. none of these

Answer: C.directing
255. direction process expect maximum……. Contribution
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
256. Leadership is essential element of…….
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
257. ………. means sending message and receiving message
A. Communication

B. staffing

C. directing

D. none of these

Answer: C.directing
258. If there is no proper……. Then directing is is not effective
A. Communication

B. staffing

C. directing

D. none of these

Answer: C.directing
259. To check whether the products are produced as per the order is nothing but……
A. Organising

B. staffing

C. directing

D. none of these

Answer: C.directing
260. People working together in the organisation her common goal is…….
A. group work

B. teamwork

C. combine work

D. none of these

Answer: C.combine work
261. Team members should be……. To the ideas of others
A. group work

B. open

C. combine work

D. none of

Answer: B.open
262. Sharing of information and ideas can build a strong…….
A. Team

B. Teamwork

C. combine work

D. none of these

Answer: B.Teamwork
263. Team members shows support contribution of ……..
A. other members

B. teamwork

C. combine work

D. none of these

Answer: A.other members
264. attentive ear should be given to the opinion of other team…….
A. Members

B. groups

C. superior

D. subordinates

Answer: A.Members
265. If idea not clear team members can I ask the questions until the ……… is clarified
A. Matter

B. task

C. duty

D. none of these

Answer: A.Matter
266. Poor communication can be e beginning of………
A. Conflict

B. work

C. team

D. can’t say

Answer: A.Conflict
267. Conflict may arise due to…..
A. Change in leadership

B. lack of openness

C. poor communication

D. all the above

Answer: B.lack of openness
chapter:
Unit 7
268. Exchange of ideas, opinions, information etc. between two or more personsis________.
A. Planning.

B. organizing.

C. Communication.

D. Staffing.

Answer: C.Communication.
269. Communication is a _______.
A. one-way process.

B. two-way process.

C. three-way process.

D. four-way process.

Answer: B.two-way process.
270. The person who sends a message is known as________.
A. Sender.

B. Receiver.

C. Messenger.

D. Communicator.

Answer: A.Sender.
271. _______ deals with appointing of people and placing them in job.
A. hrm

B. recruitment

C. staffing

D. placement

Answer: C.staffing
272. The act of translating the message into words, pictures, symbols, signs orsome other form is known as _________.
A. Sender.

B. Receiver.

C. Encoding.

D. decoding.

Answer: C.Encoding.
273. The person who receives the message is called _________.
A. sender.

B. receiver.

C. encoding.

D. decoding.

Answer: B.receiver.
274. Converting symbols, signs or pictures into meaning is known as _______.
A. Sender.

B. receiver.

C. encoding.

D. decoding.

Answer: D.decoding.
275. communication that flow from superior to subordinates is________.
A. downward communication.

B. upward communication.

C. horizontal communication.

D. informal communication.

Answer: A.downward communication.

276. Informal communication is commonly known as ________.
A. downward communication.

B. upward communication.

C. horizontal communication.

D. Grapevine.

Answer: D.Grapevine.
277. Communication of policies, procedures and programmes is exampleof_________.
A. downward communication.

B. upward communication.

C. horizontal communication.

D. informal communication.

Answer: A.downward communication.
278. Reports, suggestions, appeals, grievances, etc is example of_________.
A. downward communication.

B. upward communication.

C. horizontal communication.

D. informal communication.

Answer: B.upward communication.
279. Inter-depoartmental committee meeting is an example of__________.
A. downward communication.

B. upward communication.

C. horizontal communication.

D. informal communication.

Answer: C.horizontal communication.
280. Rumours and gossips are_________.
A. downward communication.

B. upward communication.

C. horizontal communication.

D. informal communication.

Answer: D.informal communication.
281. Exchange of messages through spoken words is_________.
A. oral communication.

B. written communication.

C. gestural communication.

D. sideward communication.

Answer: A.oral communication.
282. Lectures, group discussions, interviews, social gathering are example of_____.
A. oral communication

B. written communication.

C. gestural communication.

D. sideward communication.

Answer: A.oral communication
283. Letters, circulars, memos, bulletin, manuals, reports are exampleof________.
A. oral communication.

B. written communication.

C. gestural communication.

D. sideward communication.

Answer: B.written communication.
284. The problems in communication channels is known as______.
A. organizational barriers.

B. mechanical barriers.

C. personal barriers.

D. semantic barriers.

Answer: B.mechanical barriers.
285. The integration of objectives and activities of an organization is________.
A. control.

B. co-ordination.

C. Planning.

D. organizing.

Answer: B.co-ordination.
286. Co-ordination between the activities of various departments and individualsworking within the organization is known as _________.
A. vertical co-ordination.

B. external co-ordination.

C. internal co-ordination.

D. horizontal co-ordination.

Answer: C.internal co-ordination.
287. Scalar chain means ________.
A. hierarchy levels.

B. chain of command.

C. delegation of authority.

D. span of control.

Answer: A.hierarchy levels.
288. The oldest type of organization__________.
A. functional organization.

B. line organization.

C. matrix organization.

D. committee organization.

Answer: B.line organization.
289. The organization which was devised by FW Taylor was ________.
A. functional organization.

B. matrix organisation.

C. committee organization

D. line and staff organization.

Answer: A.functional organization.
chapter:
Unit 8
290. Devices which shows the organizational relationships________.
A. organizational charts.

B. scalar chain.

C. over all plan.

D. Budgets.

Answer: A.organizational charts.
291. When the supervisor commands subordinates and has close supervision iscalled ______.
A. free-rein.

B. autocratic.

C. consultative.

D. democratic.

Answer: B.autocratic.
292. Praise, recognition and power are_______.
A. intrinsic motivation.

B. extrinsic motivation.

C. positive motivation.

D. negative motivation.

Answer: A.intrinsic motivation.
293. X and Y theory was introduced by_______.
A. Mc gregor.

B. Peter drucker.

C. Henry fayol.

D. FW taylor.

Answer: A.Mc gregor.
294. Time-event network is _________.
A. PERT.

B. CPM.

C. MIS.

D. statistical reports.

Answer: A.PERT.
295. Management is ____________.
A. art.

B. science.

C. art and science.

D. humanities.

Answer: C.art and science.
296. Decision making helps in the smooth function of the___________.
A. business.

B. staffing.

C. organization.

D. planning.

Answer: A.business.
297. The study relating to the movement of a machine operator and his machinewhile performing the job is called__________.
A. time study.

B. work study.

C. motion study.

D. fatigue study.

Answer: C.motion study.
298. Selecting a best course of action among the alternatives is calledas_________.
A. decision making.

B. planning.

C. organizing.

D. controlling.

Answer: A.decision making.
299. The decisions which are frequent and repetitive in nature are calledas________.
A. non programmed decisions.

B. programmed decisions.

C. major decisions.

D. operative decisions.

Answer: B.programmed decisions.
300. A decision which is taken to meet unexpected situation__________.
A. problem decision.

B. certainty decisions.

C. crisis decision.

D. organizational decision.

Answer: C.crisis decision.

301. The right of a person to give instructions to his subordinates is knownas_________.
A. responsibility.

B. authority.

C. accountability.

D. line authority.

Answer: B.authority.
302. Elements of delegation_________.
A. responsibility, authority, accountability.

B. authority, delegation, accountability.

C. responsibility, decentralization, centralization.

D. controlling, responsibility, authority.

Answer: A.responsibility, authority, accountability.
303. The extent to which power and authority are retained at the top is calledas________.
A. centralization.

B. decentralization.

C. responsibility.

D. accountability.

Answer: A.centralization.
304. _____ deals with appointing people and placing them at the appropriate jobs.
A. Human resources.

B. Recruitment.

C. Staffing.

D. Placement.

Answer: C.Staffing.
chapter:
more mcqs
305. In the process of production, capital equipment is worn out. The word used to described this process is
A. Obsolescence

B. Devalution

C. Appreciation

D. Depreciation

E. Funding

Answer: D.Depreciation
306. The political party to which Hind Mazdoor Sabah is affiliated is
A. Janata Party

B. Bhartia Janata Party

C. Congress (I)

D. Socialist Party

E. Communist Party

Answer: D.Socialist Party
307. Industrial safety is defined as
A. Freedom from danger or injury, risk, or loss.

B. Job security.

C. Less than 1

D. A disease-free work environment

E. Job specification

Answer: A.Freedom from danger or injury, risk, or loss.
308. During contract negotiations what two rights are weighed against each other
A. Employes rights

B. Management right

C. Government right

D. A and B

E. B and C

Answer: D.A and B
309. A fall in demand for the product of a monopolised industry when predicted with lead to
A. A fall in price

B. A decrease in number of firms in the long run

C. A decrease in the output of each firms

D. All of the above

E. None of the above

Answer: D.All of the above
310. If you want to use a red pen but mass production of only blue pens is undertaken, your inability to exercise your sovereignty is because of
A. Limited income

B. Standardized production

C. Weather conditions

D. State control

E. Poor demand

Answer: B.Standardized production
311. The major cause of unemployment in India is
A. under development

B. inadequate employment planning

C. rapid population growth

D. All of the above

E. Rs. 17,50,500

Answer: D.All of the above
312. Nationalization means
A. Taking over, by the government, of existing privately run concerns

B. Establishing new enterprises as state run concerns

C. Putting the day-to-day control of firms in the hands of Parliament

D. Instituting worker in control of an industry

E. The state assuming control of an industry to secure greater efficiency

Answer: A.Taking over, by the government, of existing privately run concerns
313. Differences in rates of interest charged from different customers arise due to
A. Differences in risks

B. Differences in use of money

C. Differences in productivity

D. All of the above

E. None of the above

Answer: C.Differences in productivity
314. The ‘free’ good is so called because
A. No charge is made to the consumer

B. It is supplied freely by a public authority

C. The supply is adequate to meet all needs without rationing

D. There is an unlimited supply

E. None body wants it.

Answer: E.None body wants it.
315. Indirect financial and non-financial forms of compensation are called
A. Salaries

B. Services

C. Benefits

D. none of the above

E. All of the above

Answer: C.Benefits
316. The assumption in PERT is
A. A project is always behind schedule

B. Cost of project is always more than the estimated cost

C. A project can be sub-divided into a set of predictable, independent activities

D. Activities are complex in nature and time taken by them are indeterminate

E. None of the above

Answer: C.A project can be sub-divided into a set of predictable, independent activities
317. A public sector undertaking
A. Is fully owned by public through shareholders

B. Is jointly owned by private parties

C. Is jointly owned by private partics and Government

D. Is fully owned by Government

E. None of the above

Answer: D.Is fully owned by Government
318. Retention of cost competitiveness is the function of
A. methods engineering

B. finance department

C. production planning and control

D. none of the above

E. None of the above

Answer: C.production planning and control
319. The size of the market for a product means
A. The number of people in a particular area

B. The geographical area saved by the producers

C. The number of sales of the product recorded annually

D. The number of potential buyers of the product

E. The volume of potential sales of the product

Answer: E.The volume of potential sales of the product
320. Which of the following contributes to indirect cost?
A. Training of workers

B. Overtime payment to workers

C. Depreciation of machinery

D. Cost of material

E. Rs. 17,50,500

Answer: A.Training of workers

321. Through routing the engineers decide in advance
A. The flow of material in the plant

B. The ways and means for proper utilization of manpower

C. The ways and means for proper utilization of machines

D. Inspection of final products

E. Normal route of workers through the plant

Answer: A.The flow of material in the plant
322. Demand for a commodity is elastic when
A. Change in price causes greater change in its demand

B. Change in price does not change its demand

C. Change in National income causes change in demand

D. Any of the above

E. None of the above

Answer: A.Change in price causes greater change in its demand
323. The largest source of revenue for state governments is generally
A. Entertainment tax

B. Sales tax

C. Land revenue

D. Excise duty

E. Rs. 17,50,500

Answer: B.Sales tax
324. Who proposed that all human efforts can be measured in terms of a common unit partly composed of actual work and partly of compensating relaxation?
A. Emerion

B. Taylor

C. Gantt

D. Bedaux

E. None of the above

Answer: D.Bedaux
325. Improving the work force overtime is the aim of
A. Recruitment

B. Selection

C. Human resource planning

D. Placement

E. Human resource auditing

Answer: E.Human resource auditing

326. How an executive interprets facts and events in accordance with beliefs and assumptions is best described by his
A. Administrative acuman

B. Managerial philosphy

C. Executive profile

D. Leadership style

E. None of the above

Answer: B.Managerial philosphy
327. The shareholders have limited liability in case of a
A. cooperative

B. partnership firm

C. public limited company

D. All of the above

E. Rs. 17,50,500

Answer: C.public limited company
328. The term ‘balance of trade’ is associated with
A. imports and exports

B. taxation

C. gross profits of a company

D. budgeting

E. Rs. 17,50,500

Answer: A.imports and exports
329. Motion study is not used for
A. Improving a work method by locating deficiencies

B. Improving a work method by assisting in adjusting the pattern of inter-relationships

C. Designing a work method through logical analysis and synthesis

D. Providing a schematic framework for organizing knowledge about the inter-relationships

E. Reducing inventory costs

Answer: E.Reducing inventory costs
330. Process planning consists of
A. specifying product details

B. specifying quality standards

C. specifying details of work

D. none of the above

E. None of the above

Answer: C.specifying details of work
331. A bonus plan in which allowance is determined in terms of time for each unit of output instead of money is
A. hour-for-hour plan

B. group plan

C. Beedaux plan

D. none of the above

E. None of the above

Answer: A.hour-for-hour plan
332. Public goods are different from private goods because
A. The government produces public goods, while private goods are produced by private persons

B. Public goods are preferred to private goods

C. The amount consumed by one does not affect the amount available for others

D. Private goods can be consumed only by private individuals while public goods can be consumed by government and private citizens

E. All of the above

Answer: D.Private goods can be consumed only by private individuals while public goods can be consumed by government and private citizens
333. M.T.M. helps in
A. Establishing time standards

B. Estimating cost

C. Improving existing methods

D. Developing methods before the starting of production

E. All of the above

Answer: E.All of the above
334. Job enrichment means
A. Paying more for entry level jobs

B. providing further training in job skills

C. adding more tasks at the same level

D. adding some planning and control to a job

E. None of the above

Answer: D.adding some planning and control to a job
335. Barter system can work successfully when
A. people are fully educated

B. society is developed

C. wants are limited

D. demand is equal to supply

E. Rs. 17,50,500

Answer: C.wants are limited
336. Standing orders act provides for penalties for
A. Failure of an employer to submit the draft standing orders for certification

B. Modifications of standing orders not in accordance with the prescribed procedure

C. Doing any act in contravention of the certified above

D. (A) and (B) above

E. (A), (B) and (C) above

Answer: E.(A), (B) and (C) above
337. Safety guards on machines should be
A. always in position

B. Put in position while using machine

C. Used if operator desires

D. Never used

E. Used if time permits

Answer: A.always in position
338. Statistics show that the vast majority of all accidents result from
A. Technical causes

B. Human causes

C. Environmental causes

D. A combination of human, technical and environmental causes

E. None of the above

Answer: D.A combination of human, technical and environmental causes
339. The best source of revenue for States in India is
A. Sales tax

B. Customs duty

C. Income from lotteries

D. Excise duty

E. Entertainment tax

Answer: A.Sales tax
340. The price of diamonds is higher than the price of wheat because
A. Diamonds are much heavier than wheat

B. Diamonds are more useful than wheat

C. The total stock of diamonds is more useful than the total stock of wheat

D. Diamonds cannot be grown whereas wheat can be grown

E. Enough people have a higher subjective value of diamonds relative to wheat

Answer: E.Enough people have a higher subjective value of diamonds relative to wheat
341. Which of the following is not a factor management which must weight when deciding to establish particular kind of employee benefit
A. Cost

B. Need

C. Productivity

D. Union power

E. Ability to pay

Answer: C.Productivity
342. Planning and control departments normally do not consist of
A. Planning cell

B. Control cell

C. Inventory section

D. Printing section

E. Quality section

Answer: D.Printing section
343. The disadvantage of process layout system is
A. The initial investment is high

B. Machine failures and job difficulties seriously disrupt production schedules

C. The scope of production facilities is limited

D. Production time is longer, requiring more goods in process

E. High initial investment is required

Answer: D.Production time is longer, requiring more goods in process
344. If the electric supply is not available in a factory the workers will show it as
A. Delay

B. Deliberate delay

C. Avoidable delay

D. Unavoidable delay

E. None of the above

Answer: D.Unavoidable delay
345. A process layout is generally suggested for
A. Jobbing work

B. Batch production

C. Continuous type of production

D. Efficient machine utilization ratio

E. None of the above

Answer: B.Batch production

346. Indian Railways are a
A. joint sector undertaking

B. public sector undertaking

C. departmental operation

D. private sector undertaking

E. Rs. 17,50,500

Answer: C.departmental operation
347. The financial position of a company is considered to be sound if
A. Sufficient funds are available under reserve and surplus

B. Company has declared good dividends in the past

C. Sales are increasing

D. Gross profit is reasonable

E. The company has no loans outstanding

Answer: A.Sufficient funds are available under reserve and surplus
348. The sign of a country’s development is
A. More and more industries

B. Higher standard of living

C. Higher per capita income

D. More means of transport

E. All of the above

Answer: C.Higher per capita income
349. Which one is not a component of process?
A. Operation

B. Inspection

C. Storage

D. Disassemble

E. Quality section

Answer: D.Disassemble
350. Capital expenditure means
A. Expenses incurred in capital

B. Main expenditure

C. Recurring expenditure

D. Expenditure on procurement of fixed assets

E. None of the above

Answer: D.Expenditure on procurement of fixed assets

351. The cause of slow growth of national income in India is
A. rapid population growth

B. deficiency in investment

C. high capital output ratio

D. All of the above

E. Rs. 17,50,500

Answer: A.rapid population growth
352. Machine loading means
A. Total load of machine + load of job

B. Load of machine + load of heaviest job that machine can take

C. Load of machine + load of heaviest job that machine can take

D. Electrical load required for the machine motors

E. Amount of work assigned to a machine

Answer: E.Amount of work assigned to a machine
353. All of the following are the characteristics of socialism EXCEPT
A. Lack of competition

B. Government owns factors of production

C. Elimination of exploitation

D. Private sector to help public sector

E. Rs. 17,50,500

Answer: D.Private sector to help public sector
354. Budget is the major instrument of
A. Fiscal policy

B. Monetary policy

C. Economic policty

D. Export policy

E. Rs. 17,50,500

Answer: A.Fiscal policy
355. Recruiting is
A. Judging

B. Finding

C. Hiring

D. Matching

E. All of the above

Answer: B.Finding
356. Which is the proper requence
A. Recuriting selecting placing indoctrimating

B. Indoctrimating-recruiting-selecting-placing

C. Recruiting-selecting-indoctrimating-placing

D. Selecting-placing-recruiting-indoctrimating

E. None of the above

Answer: A.Recuriting selecting placing indoctrimating
357. Break even analysis requires
A. fixed cost

B. variable cost

C. income

D. none of the above

E. None of the above

Answer: D.none of the above
358. The present value of a Rs. 100 payable one year from today its
A. Rs. 100

B. Rs. 105 if the interest rate is 5%

C. Rs. 110 if the interest rate is 10%

D. Rs. 95 if the interest rate is 5%

E. None of the above

Answer: D.Rs. 95 if the interest rate is 5%
359. A monopolist can charge a high price only for those commodities which have
A. elastic demand

B. inelastic demand

C. no demand

E. Rs. 17,50,500

Answer: B.inelastic demand
360. The retirement benefits for workmen are covered under
A. Payment of Wages Act

B. Payment of Bonus Act

C. Employees Provident Fund Act

D. Workmen’s Compensation Act

E. All of the above

Answer: C.Employees Provident Fund Act
361. Emerson plan awards bonus based on time
A. which is standard

B. Saved

C. worked

D. none of the above

E. None of the above

Answer: C.worked
362. Common bases for monopoly include all of the following but
A. Control over a key patent

B. Extensive diseconomies of scale in production

C. Control over a strategic raw material

D. Extensive economies of scale in production

E. Control over channels of distribution

Answer: B.Extensive diseconomies of scale in production
363. In a factory the costs which increase as output increases are known as
A. Fixed costs

B. Variable costs

C. Total costs line

D. Average fixed costs

E. Average total costs

Answer: B.Variable costs
364. The salient feature of functional organisation is
A. Work is properly planned and distributed

B. Strict adherence to specifications

C. Each individual maintains functional efficiency

D. Separation of planning and design

E. All of the above

Answer: E.All of the above
365. PERT analysis is based on
A. Optimistic time

B. Pessimistic time

C. Most likely time

D. All the above

E. None of the above

Answer: D.All the above
366. In retractional flow system in plant layout
A. Material is transferred from one machine to another without having to move again along the same path

B. The flow is repeated for completing non-consecutive operations

C. Materials fed at one end and components leave at the other end

D. The feeding to and ejection from the line is at the same end

E. The flow of material is in zig-zag path

Answer: B.The flow is repeated for completing non-consecutive operations
367. EOQ stands for
A. Elements of quality control

B. Elimination of quality inspection

C. End of quality inspection stage

D. Economic order quantity

E. None of the above

Answer: D.Economic order quantity
368. The amount deducted from the salary of workers towards Employees Provident Fund is
A. Retained by employer

B. Deposited in bank

C. Deposited in Post office

D. Deposited in the account of workers with employer

E. Deposited in the account of workers with Provident Fund Commissioner

Answer: E.Deposited in the account of workers with Provident Fund Commissioner
369. In break even analysis the total cost consists of
A. fixed cost

B. Variable cost

C. Fixed cost + Variable cost

D. Fixed cost + Variable cost + Profits

E. Fixed cost + Variable cost + Profits + Overheads

Answer: A.fixed cost
370. Which of the following represents joint supply?
A. Paan Parag and Paan Bahar

B. Cigarettes and Bidis

C. Radiosets and Transistors

D. Birds and Cages

E. Rs. 17,50,500

Answer: D.Birds and Cages
371. The disadvantage of product layout is
A. High initial investment is required for the specialized facilities

B. Skill labour is required to operate general purpose machinery

C. Production time is longer, requiring more goos in prices

D. Cost of inspection is very high

E. Production control is complex and costly

Answer: A.High initial investment is required for the specialized facilities
372. Which of the following is the characteristic of national income distribution of India?
A. Great income inequalities

B. Inequality in sharing consumption

C. Regional disparities in growth and development

D. All of the above

E. Rs. 17,50,500

Answer: D.All of the above
373. In work study the symbol O implies
A. Delay

B. Operation

C. Transport

D. Inspection

E. Temporary storage

Answer: C.Transport
374. Which of the following is not an advantage of large scale production?
A. Cheap production

B. Latest use at technology

C. Full opportunities for exhibition of creative art

D. All of the above

E. None of the above

Answer: C.Full opportunities for exhibition of creative art
375. All of the following are the characteristics of mixed economy EXCEPT
A. Co-existence of private and public sectors

B. Economic welfare

C. Economic equality

D. Govt. control over huge capital investment industries

E. Rs. 17,50,500

Answer: C.Economic equality

376. Control of production is done through
A. scheduling

B. follow up

C. dispatching

D. none of the above

E. None of the above

Answer: B.follow up
377. Training current workers new skills may be best thought of as
A. Time consuming

B. Downgrading

C. Retraining

D. Inefficient

E. Benevolent

Answer: B.Downgrading
378. Which does not apply to the point system?
A. Stability of rating scale

B. Worker acceptance

C. Valid

D. Quickly constructed

E. Reliable

Answer: D.Quickly constructed
379. Mixed economy is identified by
A. Lack of competition

B. co-existence of public and private sectors

C. vigorous competition

D. rising trend in prices

E. Rs. 17,50,500

Answer: B.co-existence of public and private sectors
380. Human resource action programmes are commonly found in which of the following areas
A. Labour relations – collective bargaining

B. Training development

C. Recruitment selection

D. Benefits and compensation

E. All of the above

Answer: E.All of the above
381. Which of the following wage and salary criteria refer to organizationally internal wage determinants?
A. Ability to pay

B. Supply and demand

C. Cost of living

D. Prevailing pay

E. Union bargaining power

Answer: A.Ability to pay
382. Queuing theory is associated with
A. Production time

B. Inventory

C. Sales

D. Inspection time

E. Waiting time

Answer: E.Waiting time
383. Which of the following is the broadcast concept
A. Job description

B. Job analysis

C. Position description

D. Position specification

E. Job specification

Answer: B.Job analysis
384. Which of the following is a multination corporation?
A. IBM

B. LST

C. DCM

D. Escorts

E. Rs. 17,50,500

Answer: A.IBM
385. The advertisement cost is included
A. In fixed cost

B. Sometimes in fixed cost and sometimes in variable costs

C. Always in variable costs

D. Never included in variable costs

E. It is a separate head of costs

Answer: C.Always in variable costs
386. If the price level rises with a marked change in real output this is known as
A. Inflation

B. Deflation

C. Devaluation

D. Revaluaion

E. Improved labour relations

Answer: D.Revaluaion
387. Which of the following cheque is encashable at any branch of the issuing bank?
A. Bearer cheque

B. Crossed cheque

C. Traveller’s cheque

D. Order cheque

E. Rs. 17,50,500

Answer: C.Traveller’s cheque
388. PERT stands for
A. Project estimation and return times

B. Planning estimation, review techniques

C. Project evaluation and review techniques

D. Puching edging and review techniques

E. Precise Estimation and Results Technique

Answer: C.Project evaluation and review techniques
389. Upper limit for capital investment in small scale industries is
A. Rs. 10 lakhs

B. Rs. 15 lakhs

C. Rs. 35 lakhs

D. Rs. 50 lakhs

E. Rs. 17,50,500

Answer: C.Rs. 35 lakhs
390. Demand for electricity is elastic because
A. It is very expensive

B. It has number of close substitutes

C. It has number of alternatives uses

D. All of the above

E. None of the above

Answer: C.It has number of alternatives uses
391. PERT is
A. Based on one time estimates

B. Synthesis in concepts

C. Used for repetitive works

D. Built of activities oriented programme

E. All of the above

Answer: E.All of the above
392. While estimating ‘Economic Order Quantity’ if uniform inflation rate is also taken into consideration as compared to conventional method
A. The lot size with inflation will reduce

B. The lot size with inflation will increase

C. There will be no change

D. Inventories are not related with inflation

E. None of the above

Answer: B.The lot size with inflation will increase
393. Which one of the following is a ‘free good’ in economics?
A. Tap water

B. Water in canal

C. Water in Atlantic ocean

D. Distilled water

E. Soda-water

Answer: C.Water in Atlantic ocean
394. Which cheque can be encashed by any one
A. Account payee cheque

B. Crossed cheque

C. Bearer cheque

D. none of the above

E. Rs. 17,50,500

Answer: C.Bearer cheque
395. A monopolist makes maximum profits when
A. Prices are high

B. Production is maximum

C. Marginal cost is equal to marginal revenue

D. Sales are high

E. Buyers buy less

Answer: D.Sales are high
396. A joint sector undertaking
A. Is jointly managed by several shareholders

B. Is jointly owned by only two directors

C. In jointly owned by State and Central Governments

D. Is jointly owned by private parties and Government

E. None of the above

Answer: D.Is jointly owned by private parties and Government
397. The benefit of good communication in a factory is
A. Reduced frustration

B. Improvement in work performance

C. Development of good human relations

D. Creation of interests and attention

E. Better profits

Answer: E.Better profits
398. When two persons exchange their goods without bringing in money, it is known as
A. internal exchange

B. block exchange

C. barter

D. profiteering

E. Rs. 17,50,500

Answer: C.barter
399. Because cost of living raises are not earned, but are a condition of employment, they may be considered
A. Incentives

B. Promotions

C. Indirect compensation

D. Reversable

E. All of the above

Answer: C.Indirect compensation
400. Industrial safety is defined as
A. A disease free work environment

B. Job security

C. Less than 2% chance of injury

D. Freedom from danger or injury, risk or loss

E. A grievance free environment

Answer: D.Freedom from danger or injury, risk or loss

401. Which of the following law is related to health of workers?
A. ESI

B. Payment of wages act

C. Employees Provident Fund Act

D. Payment of Bonus Act

E. Rs. 17,50,500

Answer: A.ESI
402. A gantt chart provides information about
A. Sales

B. Inventory

C. Machine utilisations

D. Rejections

E. Production schedule

Answer: E.Production schedule
403. Expediting is watching
A. flow of material

B. worker’s activity

C. minimizing delay

D. none of the above

E. None of the above

Answer: B.worker’s activity
404. Which of the following public sector is under the Ministry of Defence?
A. Sail

B. FCI

C. HAL

D. NTPC

E. Rs. 17,50,500

Answer: C.HAL
405. Estimates or predictions are probably most indispensable in
A. Planning

B. Organizing

C. Directing

D. Control

E. All of the above

Answer: D.Control
406. Scheduling is
A. alloting a job to an operator

B. alloting a job to a machine

C. fixing the time of completition of a job

D. detailing the sequence of operation job wise and machine wise

E. None of the above

Answer: D.detailing the sequence of operation job wise and machine wise
407. For a fact be considered as information, it must relate to a thing or circumstance and be
A. Quantitatives

B. Relevant

C. Objective

D. Added knowledge

E. All of the above

Answer: D.Added knowledge
408. Which of the following item is not produced under mass production?
A. Ball bearings

B. Automobile tyres

C. Aircraft

D. Passenger cars

E. Rs. 17,50,500

Answer: C.Aircraft
409. One item in the list given below is not capital. Which is that item?
A. Strw in a barn

B. Straw in a hat factory

C. A straw in a hat shop

D. A straw hat in your room

E. None of the above

Answer: A.Strw in a barn
410. If the price index is 200, it means that the price level is
A. 200 percent higher than in the base year

B. 150 percent higher than in the base year

C. 100 percent higher than in the base year

D. 50 percent higher than in the base year

E. Rs. 17,50,500

Answer: C.100 percent higher than in the base year
411. When prices rise
A. creditors benefit

B. debtors benefit

C. creditors as well as debtors benefit

D. no one benefits

E. Rs. 17,50,500

Answer: B.debtors benefit
412. Which of the following principal wage and salary issues and problems is concerned with the internal hierarchy of pay rates, pay grades and job classifications existing within an organisation
A. pay control

B. Pay level

C. pay structure

D. Payment method

E. None of the above

Answer: C.pay structure
413. Which market describes a monopoly
A. Many buyers and many sellers

B. One seller, many buyers

C. One buyer, many sellers

D. Few sellers, many buyers

E. One buyer, one seller

Answer: B.One seller, many buyers
414. The objective of time study is to determine the time required to complete a job by
A. Fastest worker

B. Average worker

C. Slow worker

D. Apprentice

E. Any of the above

Answer: D.Apprentice
415. A military organisation is known as
A. Line organisation

B. Line and staff organisation

C. Functional organisation

D. Committee

E. None of the above

Answer: A.Line organisation
416. Which of the following agency is associated with housing?
A. REC

B. TRYSEM

C. HUDCO

D. INTUC

E. Rs. 17,50,500

Answer: C.HUDCO
417. From employees point of view, increased benefits are noticed by
A. Needs

B. Unions

C. Grievances

D. Common practice

E. None of the above

Answer: A.Needs
418. Which would cause interest rates to rise?
A. Diamond for money

B. Standard of living

C. Value of money

D. General level of prices

E. All of the above

Answer: A.Diamond for money
419. All of the following are perquisites EXCEPT
A. Leave Travel Assistance

B. Contributory Provident Fund

C. Travelling allowance

D. Leave encashment

E. Rs. 17,50,500

Answer: C.Travelling allowance
420. Hiring is most closely related to which of the following staffing subprocesses
A. Appraisal

B. Indoctrimation

C. Placement

D. Selection

E. Recruitment

Answer: D.Selection
421. Capital gains are
A. Unanticipated increases in income

B. Income from lottery

C. Income through interest earned on invetment

D. Income of dividends, received from companies

E. Unanticipated changes in value of property relative to the goods

Answer: E.Unanticipated changes in value of property relative to the goods
422. Who among the following offers service utility?
A. Teacher

B. Peon

C. Philosopher

D. Doctor

E. Rs. 17,50,500

Answer: D.Doctor
423. A good organisation requires that
A. Every body should feel responsibility

B. Every body should be authorised to get any work done for expeditious disposal

C. Frequent change in responsibility so that every body gets the taste of every job

D. Communication system should be dull so that secrets do not leakout

E. Responsibilities should be clearly defined

Answer: E.Responsibilities should be clearly defined
424. If the price of tea rises and that of coffee falls
A. More tea will be bought

B. More coffee will be bought

C. More sugar will be bought

D. More tea and less coffee will be bought

E. Demand will depend upon the price difference

Answer: B.More coffee will be bought
425. Which of the following is an indirect tax?
A. Gift tax

B. Estate duty

C. Income tax

D. Import duty

E. Rs. 17,50,500

Answer: D.Import duty

426. The mass production generally refers to
A. Large scale production

B. Flow production

C. Machine production

D. Computerized production

E. None of the above

Answer: A.Large scale production
427. Standing orders are certified by
A. Management

B. Workers

C. Workers union

D. Management and workers union

E. Certifying officer of government

Answer: E.Certifying officer of government
428. The appellate authority for an industrial dispute is
A. Management

B. Labour court

C. High court/Supreme court

D. Labour Minister state/centre

E. Government

Answer: C.High court/Supreme court
429. Which one of the following will not affect the efficiency of labour?
A. Education and training

B. Better working conditions

C. Higher prices for final products

D. Improved medical service

E. All of the above

Answer: D.Improved medical service
430. Market demand for any good is a function of the
A. Price per unit of the good

B. Price per unit of other goods

C. Incomes of consumers

D. Tastes of consumers

E. All of the above

Answer: E.All of the above
431. The demand for luxuries is
A. constant

B. elastic

C. inelastic

D. fixed

E. Rs. 17,50,500

Answer: B.elastic
432. Scheduling is the determination of
A. When and at what rate the products will be put out and the relative times at which specific activities shall occur

B. Actual production, how work is to be processed and what machines are to be used

C. Putting right jobs on right machines and at right times

D. Capacity of machines to do the job

E. None of the above

Answer: A.When and at what rate the products will be put out and the relative times at which specific activities shall occur
433. Devaluation is resorted to
A. Belittle foreign currencies

B. Encourage exports

C. Give more value to home currency

D. Tide over post war difficulties

E. All of the above

Answer: A.Belittle foreign currencies
434. As a result of heavy taxes on a commodity its supply
A. increases

B. decreases

C. remains unaffected

E. Rs. 17,50,500

Answer: B.decreases
435. During inflation
A. prices rise

B. prices drop

C. prices remain unchanged

D. prices fluctuate heavily

E. Rs. 17,50,500

Answer: A.prices rise
436. Saving is that portion of income that is
A. spent on luxuries

B. not spent on consumption

C. retained by the employer

D. none of the above

E. Rs. 17,50,500

Answer: B.not spent on consumption
437. In work study the symbol => implies
A. Delay

B. Transport

C. Operation

D. Inspection

E. Temporary storage

Answer: B.Transport
438. Under progressive tax
A. the tax rate goes on increasing with an increase in the level of income

B. the tax rate is constant

C. the tax rate goes on decreasing with an increase in the level of income

D. the tax rate is inversely proportional to the net income

E. Rs. 17,50,500

Answer: A.the tax rate goes on increasing with an increase in the level of income
439. Bin cards are used in
A. Machine loading

B. Accounts

C. Stores

D. Quality control

E. Preventive maintenance

Answer: C.Stores
440. One of the essential conditions of perfect competition is
A. Product differentiation

B. Multiplicity of prices for identical product at any one time

C. Many sellers and few buyers

D. Many sellers and few sellers

E. Only one price for identical goods at any one time

Answer: C.Many sellers and few buyers
441. Law of demand correlates
A. quality and quantity

B. quality and price

C. quantity and price

D. price and profit

E. Rs. 17,50,500

Answer: C.quantity and price
442. Which is the most commonly used job evaluation system
A. Factor

B. Renting

C. Point

D. Grade description

E. None of the above

Answer: C.Point
443. Which of the following tax is separately imposed by central as well as state governments?
A. Entertainment tax

B. Sales tax

C. Income tax

D. Import duty

E. Rs. 17,50,500

Answer: B.Sales tax
444. A synthetic process is one that
A. Combines several different ingredients or assembles numerous component parts to manufacture a product

B. Starts with basic raw materials and breaks it down into various constituent products

C. Is characterized by an uninterupted flow of operations from raw materials to end product

D. Involves operations which are repeated in the same way

E. Involves non-repetitive operations

Answer: A.Combines several different ingredients or assembles numerous component parts to manufacture a product
445. Shares can be purchased and sold in
A. nationalised banks

B. financial corporations

C. stock exchanges

D. non-nationalised banks

E. Rs. 17,50,500

Answer: C.stock exchanges
446. Pessimistic time is
A. The maximum time which an activity might require

B. The average time required for a job

C. The time which has the highest probability of occurrence associated with it

D. The minimum time in which an activity can possibly be accomplished

E. The earliest possible time that an event can be reached or an activity completed.

Answer: A.The maximum time which an activity might require
447. The principle of management by exception is most likely to be applied in the management function of
A. Planning

B. Organizing

C. Directions

D. Control

E. All of the above

Answer: D.Control
448. For an organisation those costs which do not, increase as output increases, are known as
A. Fixed costs

B. Variable costs

C. Total costs

D. Average fixed costs

E. Average total costs

Answer: A.Fixed costs
449. The population of a city was 6.4 million at the beginning of a becade and rose to 8.1 million by the end of the decade. Assuming the rate of growth to be constant, the size of population in the middle of the decade was
A. 6.25 million

B. 6.75 million

C. 7.25 million

D. 7.75 million

E. Rs. 17,50,500

Answer: C.7.25 million
450. Which of the following is not normally classified as a “payment for time not worked”?
A. Pension

B. Severance pay

C. Sick leave

D. Duty time

E. Special leave

Answer: A.Pension

451. What should a wise manager try to do about the informal communication system (the grapevine) that exists (virtually within) every formal organization?
A. Destroy it

B. Ignore it

C. Impede its flow of messages whenever possible

D. Use it as a supplement to the formal system

E. None of the above

Answer: D.Use it as a supplement to the formal system
452. Skilled men receive higher wages than unskilled because
A. The job is more difficult

B. The limited supply of skilled men

C. the productivity of skilled men is greater than that of unskilled men

D. Skilled men possesses certain attributes which the unskilled men do not and therefore earn economic rent

E. All of the above

Answer: E.All of the above
453. First free trade zone in India was established in
A. Bombay

B. Calcutta

C. New Delhi

D. Madras

E. Trivandrum

Answer: A.Bombay
454. Appraisal is
A. Judging

B. Finding

C. Hiring

D. Matching

E. None of the above

Answer: A.Judging
455. Wage and salary criteria are primarily used to determine
A. Pay structures

B. Incentives

C. Cost of living raises

D. Productivity

E. None of the above

Answer: A.Pay structures
456. Locating an individual onject from a group is
A. select

B. grasp

C. position

D. hold

E. Waiting time

Answer: A.select
457. The deductions for Employees Provident Fund start
A. Immediately on joning the service

B. After one month of joining the service

C. After 120 days of joining of service

D. After 240 days of joining the service

E. After one year of joining the service

Answer: D.After 240 days of joining the service
458. Trade will occur when
A. Personnel values are different

B. Middle-men can profit by making trade

C. The exchange leads to more preferred situation for the traders

D. There is enough disparity between the consumption-substitution ratios to cover the costs of trades

E. All of the above

Answer: E.All of the above
459. Which of the following is not a form utility?
A. A carpenter

B. A transporter

C. A craftsman

D. A blacksmith

E. Rs. 17,50,500

Answer: B.A transporter
460. A vertical demand curve for a commodity shows that demand is
A. Highly elastic

B. Perfectly melastic

C. Fairly elastic

D. Moderately elastic

E. Totally inelastic

Answer: E.Totally inelastic
461. Emerson plan is based on
A. standard time

B. time save

C. time worked

D. none of the above

E. None of the above

Answer: C.time worked
462. Which of the following creates time utility?
A. Bank cashier

B. Carpenter

C. Farmer

D. Trader

E. Clerk

Answer: C.Farmer
463. Gross national income minus net national income equals
A. cost

B. taxes

C. depreciation

D. wages

E. Rs. 17,50,500

Answer: C.depreciation
464. Price elasticity of demand is best defined as
A. The change in the tastes of consumers at different prices

B. The rate of response of demand to a change in supply

C. The change in costs when output is increased by one unit

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

E. Being depended on whether the goods are a lusury or not

Answer: D.The rate of response of demand to a change in price
465. The advantage of mass production is
A. better quality

B. use of new technology

C. sophistication

D. reduced cost of production

E. Rs. 17,50,500

Answer: D.reduced cost of production
466. Which of the following depicts joint demand?
A. Magazine and newspaper

B. Coffee and tea

C. Lipstick and nail polish

D. Paper and book

E. Tooth paste and brush

Answer: E.Tooth paste and brush

467. In wimplex method of linear programming the objective row of the matrix consists of
A. Coefficient of the objective function, which is the profit contribution per unit of each of the products

B. Names of the variables of the problems

C. Slack variables

D. Any of the above

E. None of the above

Answer: A.Coefficient of the objective function, which is the profit contribution per unit of each of the products
468. Floating of a currency leads to
A. Devaluation

B. Revaluation

C. Over-valuation

D. Either revaluation or devaluation

E. Either revaluation or over-valuation

Answer: D.Either revaluation or devaluation
469. Time standards developed as a result of time study may be used for
A. Wage incentives

B. Plant layout

C. Budgetary control

D. Equipment selection

E. Any of the above

Answer: E.Any of the above
470. In case of paper money the face value is
A. less than its intrinsic value

B. more than its intrinsic value

C. same as its intrinsic value

E. Rs. 17,50,500

Answer: B.more than its intrinsic value
471. Which of the following company is under cooperative sector?
A. DCM Limited

B. Voltas Ltd

C. IFFCO

D. BARC

E. Rs. 17,50,500

Answer: C.IFFCO
472. Indicate the group of persons who gain from inflation
A. Stock holders

B. Bond holders

C. Debetures holders

D. Fixed deposit holders

E. Improved labour relations

Answer: A.Stock holders
473. At break-even point, total cost is equal
A. fixed cost

B. variable cost

C. income

D. none of the above

E. None of the above

Answer: C.income
474. Balanced growth means
A. Equal percentage growth in output

B. Equal increase in resources allocated

C. Different parts of the economy grow in a harmonious manner

D. Different fields grow in a natural rate

E. None of the above

Answer: C.Different parts of the economy grow in a harmonious manner
475. Fountain pen and ink are
A. independent goods

B. substitute goods

C. complimentary goods

D. classified goods

E. Rs. 17,50,500

Answer: C.complimentary goods

476. The main disadvantage of line organisation is
A. Communication delay

B. Rigid structure

C. Top level executions over work

D. All the above

E. None of the above

Answer: D.All the above
477. A worker’s real wages are determined by
A. The average daily wage

B. The purchasing power of his earnings

C. The money value of his production

D. The actual amount paid in lieu of work done

E. Any of the above

Answer: C.The money value of his production
478. Which of the following is not a financing institution?
A. IFCI

B. IDBI

C. FCI

D. IRCI

E. Rs. 17,50,500

Answer: C.FCI
479. Which of the following place is not associated with steel plant?
A. Salem

B. Visakhapatnam

C. Bhadravati

D. Udaipur

E. Rs. 17,50,500

Answer: D.Udaipur
480. Which of the following is not wealth?
A. Office building

B. Goodwill of a firm

C. Services of a consultant

D. Water in sea

E. Rs. 17,50,500

Answer: D.Water in sea
481. Which of the following item enjoys governemtn subsidy?
A. Fertiliser

B. Petroleum

C. Cooking gas

D. Cloth

E. Rs. 17,50,500

Answer: A.Fertiliser
482. A captive power plant is
A. established by a industry to meet its own requirements

B. an emergency power plant for peak load

C. a power plant operated in case of emergency only

D. one which directly drives the machine without producing electrical energy

E. Rs. 17,50,500

Answer: A.established by a industry to meet its own requirements
483. Rourkela steel plant has been established in collaboration with
A. UK

B. Germany

C. USSR

D. USA

E. Rs. 17,50,500

Answer: B.Germany
484. The most frequent form of occupational disease is produced by
A. Skin irritants

B. Noise

C. Contamination

D. Radiation

E. Job specification

Answer: A.Skin irritants
485. In a field you see ten workers harvesting raice with bare hands. The reapers are not unemployed. Then this is a case of
A. Under production

B. Lack of skill

C. Labour intensive production

D. Bonded labour system

E. Disguised unemployment

Answer: E.Disguised unemployment
486. The imposition of a tariff by country A on imports from country B
A. Always benefits A

B. Always benefits B

C. May benefit A, if B does not retaliate

D. Could benefit both countries provided B retaliates

E. Depends on the shape of reciprocal demands

Answer: E.Depends on the shape of reciprocal demands
487. Equilibrium exists between
A. Buyers and sellers

B. Supply and demand

C. Price and quality

D. Quantity and quantity

E. All of the above

Answer: E.All of the above
488. An industrial dispute is a dispute, disagreement or difference between
A. Management and government

B. Management and workers

C. Workers and workers

D. Trade unions and trade unions

E. (A), (C) and (D) only

Answer: E.(A), (C) and (D) only
489. Which of the following is not ensured in a socialistic system of economy?
A. Economic equality

B. Economic stability

C. Private initiative

D. Best optimum use of available resources

E. Rs. 17,50,500

Answer: C.Private initiative
490. Time study is not used
A. To determine overhead expenses

B. To provide a basis for setting piece prices or incentive wages

C. To determined standard costs

D. To determine the number of machines a person may run

E. To compare alternative method

Answer: A.To determine overhead expenses
491. Which of the following is not a feature of developed economy?
A. Predominance of industries

B. High per capita income

C. Predominance of indirect taxes

D. High rate of capital formation

E. Rs. 17,50,500

Answer: C.Predominance of indirect taxes
492. Standard time is defined as
A. Normal time

B. Normal time + allowances

C. Normal time + avoidable delays + allowances

D. Normal time + unavoidable delays + allowances

E. Normal time + idle time + allowances

Answer: B.Normal time + allowances
493. In work study the symbol D implies
A. Delay

B. Transport

C. Operation

D. Inspection

E. Temporary storage

Answer: A.Delay
494. Division of labour is helpful in
A. batch production

B. mass production

C. quality assurance

D. bulky goods

E. Rs. 17,50,500

Answer: B.mass production
495. According to Mc Gregor’s theory of management
A. All managers are complex in behaviour and it is difficult to get work done

B. X managers in organisation will not work and Y managers will work. The ratio X/Y depends on the organisational set up

C. The ratio X/Y is always on 0.5 for any organisation

D. X theory managers pressume that the average human being has an inherent dislike of work and will avoid it if he can

E. None of the above

Answer: D.X theory managers pressume that the average human being has an inherent dislike of work and will avoid it if he can
496. In order to promote sales a company spends considerable amount on publicity by way of campaign on radio, TV, advertisement in papers etc. Such expenses in break even analysis are shown under
A. Fixed cost

B. Variable costs

C. Total costs line

D. Total sales line

E. Not shown in break even chart

Answer: B.Variable costs
497. MRO inventories are
A. Machine repairs or Operation supplies

B. Money on repairs

C. Maintenance repair and Operation supplies

D. Mainly repair operations supplies

E. None of the above

Answer: C.Maintenance repair and Operation supplies
498. Essential feature of deflation is
A. Fall in prices

B. Fall in exports

C. Rise in production

D. All of the above

E. None of the above

Answer: A.Fall in prices
499. Assuming the statistical information is available, which of the following is the best measure of an increase in a country’s economic efficiency?
A. Increase in real national income

B. Increase in real national income per head of the working population

C. Increase in net annual investment

D. Increase net annual private investment

E. Increase in transactions involving transfer of money

Answer: B.Increase in real national income per head of the working population
500. The “system approach” to motivation attempts to avoid the incompleteness or one sidedness of other approaches to behaviour is made by integrating these kinds of motivational inputs
A. Individual, group and environmental factors

B. Roles, forms and traditions

C. Social, economic and political influences

D. Instinctual, lognitive and cultural effects

E. None of the above

Answer: A.Individual, group and environmental factors

501. Reflation is
A. same as deflation

B. a controlled inflation of moderate degree

C. a temporary phase in which there is more production than demand

D. a condition under which production is regulated to be equal to demand

E. Rs. 17,50,500

Answer: B.a controlled inflation of moderate degree
502. Against which type of account a cheque can be drawn?
A. Share account

B. Current account

C. Time deposit

D. Debenture account

E. All of the above

Answer: B.Current account
503. Which one is very sensitive to changes in iterest rate
A. Supply of notes and coins

B. Supply of bank money

C. Speculative demand for money

D. Transactions demand for money

E. None of the above

Answer: C.Speculative demand for money
504. The price which covers the variable cost as well as the fixed price is
A. Market price

B. Long run price

C. Short term price

D. Equilibrium price

E. Economic price

Answer: B.Long run price
505. F.W. Taylor introduced a system of working known as
A. Line organisation

B. Line and staff organisation

C. Functional organisation

D. Effective organisation

E. None of the above

Answer: C.Functional organisation
506. A certain community needs Rs. 185090.62 to cover its expenses. If its tax rate is Rs. 1.43 per Rs. 100 of assessed value, what must be the assessed value of its property
A. Rs. 12,870,005

B. 12,900,005

C. Rs. 12,943,400

D. 12,240,500

E. Rs. 17,50,500

Answer: C.Rs. 12,943,400
507. The annual financial statement of the estimated income and expenditure for the ensuring year is known as
A. profit-loss account

B. trading account

C. budget

D. barter

E. Rs. 17,50,500

Answer: C.budget
508. Economic development of a country depends more on
A. Natural resources

B. Capital formation

C. Availability of market

D. Entrepreneurs

E. All of the above

Answer: B.Capital formation
509. Scheduling gives information as to
A. when work should begin and how much work should be completed during certain period

B. when the work should be completed

C. how the time for completing a work is minimized

D. none of the above

E. None of the above

Answer: A.when work should begin and how much work should be completed during certain period
510. A rupee received in one year is not equivalent to a rupee received today, because the use of money has a value. This is the principal under
A. Pay back method

B. Average return on investment method

C. Present value method

D. Discounted cash flow method

E. Cost accounting method

Answer: C.Present value method
511. Standing orders contain
A. History of management of a factory

B. Names of directors of company

C. List of important officers of a company

D. Serve conditions, leave, discipline rules etc., for officers

E. Service conditions, leave, discipline rules etc., for workers

Answer: E.Service conditions, leave, discipline rules etc., for workers
512. A consultant is usually compensated by way of
A. salary

B. perks

C. dividend

D. fee

E. Rs. 17,50,500

Answer: D.fee
513. Which one of the following represents an event
A. Curing of concrete

B. Concrete cured

C. Plastering of the walls

D. Fixing of windows, doors, ventilators

E. Fixing of electrical wiring.

Answer: B.Concrete cured
514. Overtime payment is a
A. perquisite

B. bonus

C. demand

D. incentive

E. Rs. 17,50,500

Answer: D.incentive
515. In India, telephone service comes under which market form
A. Duopoly

B. Bilateral monopoly

C. Monopoly

D. Perfect competition

E. None of the above

Answer: C.Monopoly
516. Which act provides for lay off and retrenchment compensation?
A. Minimum Wages Act

B. Workmen’s Compensation Act

C. Employees State Insurance Act

D. Employees Provident Fund Act

E. Industrial Disputes Act

Answer: B.Workmen’s Compensation Act
517. The economic function of middle-man is
A. To exploit the parties involved in the exchange

B. To ensure that parties to an exchange are made better off

C. To make trade among individuals so that the middle-man realizes a profit

D. Unjustified because the traders them selves could engage in trade and be better off if they did not pay the middle-men

E. All of the above

Answer: E.All of the above
518. Placement is
A. Matching

B. Judging

C. Hiring

D. Finding

E. None of the above

Answer: A.Matching
519. Fringe benefit refer to
A. Extra remuneration

B. Overtime

C. Non-wages

D. Extra capital earning

E. Bonus system

Answer: C.Non-wages
520. Finance for small scale industries is not provided by
A. State financial corporations

B. State Bank of India

C. Traveller’s cheque

D. Punjab National Bank

E. Rs. 17,50,500

Answer: C.Traveller’s cheque
521. The economy of Soviet Union is
A. Capitalist economy

B. Command economy

C. Cooperative economy

D. Market economy

E. Competitive economy

Answer: B.Command economy
522. If more is demanded at the same price or same quantity at a higher price, this fact of demand is known as
A. Extension of demand

B. Increase of demand

C. Contraction of demand

D. Decrease of demand

E. Fluctuation of demand

Answer: B.Increase of demand
523. Which falls under the category of joint supply
A. Cotton and clothq

B. Coal tar and molasses

C. Rice and husk

D. Coffee and tea

E. Electricity and transistor

Answer: C.Rice and husk
524. According to census the number of males per 1000 females in India is approximately
A. 900

B. 937

C. 960

D. 990

E. 1050

Answer: E.1050
525. The input-output analysis is often called as
A. Cost benefit analysis

B. Value analysis

C. Analysis on marginal cost

D. Non-pricing analysis

E. Inter-industry analysis

Answer: A.Cost benefit analysis

526. Dispatching involves
A. starting the work

B. making plan correction

C. collection data

D. none of the above

E. All of the above

Answer: A.starting the work
527. EXIM bank was established
A. to ensure quality goods

B. to promote exports

C. to finance small scale entrepreneurs

D. to finance sick industries

E. Rs. 17,50,500

Answer: B.to promote exports
528. Which of the following principal wage and salary issues and problems concerns the question of whether the entire pay structure is high, average or low in comparison with the general external labour market?
A. Pay structure

B. Pay level

C. Pay control

D. Payment method

E. Individual pay determination

Answer: B.Pay level
529. An increase in demand that leads to an increase in wealth
A. Will induce new firms to begin production

B. Will induce existing firms to produce close substitutes

C. Will induce both new and existing firms to bid resources away from other uses

D. Will increase the value and hence the cost of resources used in producing that good

E. All of the above

Answer: E.All of the above
530. Consumer goods’ means
A. All commodities for which there is a high demand by all types of consumers

B. All goods other than free goods whose uses directly satisfies consumer wants

C. All goods other than free goods used by consumers in order to earn their living

D. All the factories and mines used by the community to satisfy their wants

E. All tangible goods produced for consumption in a free economic system

Answer: A.All commodities for which there is a high demand by all types of consumers
531. An action probably engaged in by energetic manager is
A. Controlling

B. Organizing

C. Decision making

D. Directing

E. None of the above

Answer: C.Decision making
532. Which of the following is a public sector undertaking?
A. DCM Ltd.

B. Larsen & Toubro Ltd

C. Instrumentation Ltd.

D. JK Synthetics Ltd.

E. Rs. 17,50,500

Answer: C.Instrumentation Ltd.
533. The symptoms of sickness of an industry are
A. failure to pay statutory liabilities

B. failure to pay timely instalment of principal and interest on loan

C. low capacity utilisations

D. All of the above

E. Rs. 17,50,500

Answer: D.All of the above
534. .An economy that does not permit product movements across its boundaries is known as
A. collective economy

B. closed economy

C. micro economy

D. macro economy

E. Rs. 17,50,500

Answer: B.closed economy
535. The average annual birth rate in India per 1000 is
A. 1000

B. 400 to 500

C. 300 to 400

D. 30 to 40

E. 3 to 4

Answer: D.30 to 40
536. People will tend to demand money if they think
A. The rate of interest will fall

B. The price of goods will fall

C. The price of goods will rise

D. The price of bonds will fall

E. All of the above

Answer: C.The price of goods will rise
537. Essential attribute to wealth is
A. utility

B. scarcity

C. transferability

D. all of the above

E. Rs. 17,50,500

Answer: D.all of the above
538. A decrease in the quantity supplied to the market at given prices leads to
A. A higher price and a contraction of demand

B. A lower price and an expansion of demand

C. A higher price and an expansion of demand

D. A lower price and a contraction of demand

E. None of the above

Answer: A.A higher price and a contraction of demand
539. Bar charts are suitable for
A. Minor projects

B. Major projects

C. Large projects

D. Inter-dependent projects

E. None of the above

Answer: A.Minor projects
540. An event is indicated on the network by
A. A straight line

B. A number enclosed in a circle or a square

C. A straight line with circles at the ends

D. A dotted line

E. An arrow

Answer: B.A number enclosed in a circle or a square
541. A SIMO (simultaneous motion cycle) chart is
A. Graphic presentation of the separable steps of each pertinent body member of the individual

B. A sketch of the part of a plant connected with a man’s work on which lines are drawn indicating path the operator travels in performing the work

C. A chart in which activities of a man are charted

D. Graphic presentation of the separable steps a man performs when doing a task that requires him to move from place to place in the course of his work

E. Reducing inventory costs

Answer: A.Graphic presentation of the separable steps of each pertinent body member of the individual
542. The employees Provident Fund act is acceptable to
A. All industries

B. Only small and medium industries

C. Industries which volunteer for the same

D. The industries notified by Government

E. The trade unions notified by Government

Answer: D.The industries notified by Government
543. Wheniver a country devalues its currency, it generally stands to gain as a result of
A. increased imports at lower prices

B. increased exports

C. fall in domestic prices

D. increased domestic production

E. Rs. 17,50,500

Answer: B.increased exports
544. Affirmative ratio affects which staffing and appraisal subsets.
A. Recuitment

B. Selection

C. Placement

D. Appraisal

E. All of the above

Answer: D.Appraisal
545. PERT has the following time estimates
A. No time estimates

B. One time estimate

C. Two time estimates

D. Three time estimates

E. None of the above

Answer: D.Three time estimates
546. The term clearing house is associated with
A. banks

B. cooperatives

C. foreign exchange

D. free trade zones

E. Rs. 17,50,500

Answer: A.banks
547. Time study is
A. The appraisal, in terms of time, of the value of work involving human effort

B. Time taken by a operator to set the job in a machine

C. The study of time that a group of workers will take to do a job

D. The method of fixing hours for workers

E. Method of determing the number of Supervisors needed in a workshop

Answer: A.The appraisal, in terms of time, of the value of work involving human effort
548. Pay level relates company wages to
A. Labour costs

B. Pay criteria

C. External labour market conditions

D. Minimum wage act

E. None of the above

Answer: C.External labour market conditions
549. Which of the following were not management thinkers
A. Taylor

B. Drucker

C. McGregor

D. Galileo

E. Parkinson

Answer: D.Galileo
550. Promoting people from within an organisation
A. Is more economical than hiring from outside

B. Can result in “inbreeding”

C. Is faster than hiring from outside

D. Provides a system for rewarding deserving employees

E. All of the above

Answer: E.All of the above

551. Which of the following will not happen if trade union forces up the wage bill?
A. Other things remaining the same firms profit will fall

B. More men will be employed because the higher wages attract them

C. Prices of the product will soon rise

D. Employers will substitute machines for men where possible

E. Fewer men will be employed

Answer: B.More men will be employed because the higher wages attract them
552. Under the Apprenticeship Act
A. All industries have to necessarily train the Apprentices

B. Industries have to train Apprentices according to their requirement

C. Only industries owned by Government have to recruit apprentices

D. Only industries employing more than 500 workers have to recruit apprentices

E. None of the above

Answer: D.Only industries employing more than 500 workers have to recruit apprentices
553. Stock of raw materials held by a firm is known as its
A. fixed capital

B. working capital

C. circulating capital

D. none of the above

E. Rs. 17,50,500

Answer: C.circulating capital
554. Sellers reserve price means
A. The seller refuses to sell the product till the minimum price (covering the cost of production) is offered

B. Seller refuses to sell the product at any price

C. Seller demands the price for whole of his product

D. A price which includes economic profits

E. A price determined for a batch of production

Answer: A.The seller refuses to sell the product till the minimum price (covering the cost of production) is offered
555. The overall purpose of training, development is to
A. Increase organizational effectiveness

B. Increase profits

C. Prenant works obsolesence

D. Increase managrical effectiveness

E. None of the above

Answer: A.Increase organizational effectiveness
556. The approximate annual rate of growth of population in India is
A. 1 to 2.5 percent

B. 5 to 7.5 percent

C. 8 to 10 pervent

D. 10 to 12 percent

E. 12.5 to 15 percent

Answer: A.1 to 2.5 percent
557. Which of the following is not classified as consumer goods?
A. Clothes

B. Furniture

C. Lubricants

D. Machines

E. Rs. 17,50,500

Answer: D.Machines
558. Which is not the pair of compliment goods?
A. Tea and mild

B. Sweets and sugars

C. Whiskey and soda

D. Concrete and steel

E. Mustard oil and coconut oil

Answer: E.Mustard oil and coconut oil
559. Standing orders are applicable to
A. Voluntary

B. Statutory

C. Compulsory

D. Compulsory for big industries only

E. Compulsory for medium industries

Answer: B.Statutory
560. Various activities of project are shown on a bar chart by
A. Vertical line

B. Horizontal lines

C. Area of columns

D. Dotted lines

E. Cross marks

Answer: B.Horizontal lines
561. Micro-hydel systems meet the power requirements of
A. industries only

B. urban residential areas

C. rural areas

D. All of the above

E. Rs. 17,50,500

Answer: C.rural areas
562. By the end of this century the target for nuclear power production is
A. 1000 MW

B. 5000 MW

C. 10,000 MW

D. 100,000 MW.

E. Rs. 17,50,500

Answer: C.10,000 MW
563. Which of the following groups of income receivers would benefit from deflation?
A. Salary earners

B. Debtors

C. Holders of ordinary shares

D. Preference share holders

E. Improved labour relations

Answer: A.Salary earners
564. Dispatching is
A. determining how much work is to be done by operator

B. instructing an operator to begin work

C. intrupting an operator for correction

D. none of the above

E. None of the above

Answer: B.instructing an operator to begin work
565. Which of the following state has concentration of textile industries?
A. UP

B. Orissa

C. Gujrat

D. Kerala

E. Rs. 17,50,500

Answer: C.Gujrat
566. Indirect financial and non-financial forms of compensation are called
A. Salaries

B. Services

C. Benefits

E. None of the above

Answer: C.Benefits
567. Which of the following wage and salary criteria exerts the greatest influence on industry pay rates?
A. Productivity

B. Ability to pay

C. Cost of living

D. Prevailing pay level

E. Union bargaining power

Answer: D.Prevailing pay level
568. Which question would best open up an interview?
A. Do you think you will be successful at this job

B. Give me two reasons why you went into this line of work

C. What do you hope to gain by this transfer?

D. none of the above

E. All of the above

Answer: E.All of the above
569. Micro-motion study is
A. Analysis of man-work method by using a motion-picture camera with a timing device in the field of view

B. Motion study observed on enhanced time intervals

C. Motion study of a sequence of operations conducted in parts

D. A study of man and machine conducted separately

E. A scientific analytical procedure for determining a preferable work method

Answer: A.Analysis of man-work method by using a motion-picture camera with a timing device in the field of view
570. Which of the following is a free port?
A. Kandla

B. Cochin

C. Calcutta

D. Goa

E. Rs. 17,50,500

Answer: A.Kandla
571. For interpretation of Standing orders the workman can refer to
A. Shop supervisor

B. Management

C. Trade union

D. Labour court

E. None of the above

Answer: D.Labour court
572. Selection is
A. Matching

B. Finding

C. Hiring

D. Judging

E. None of the above

Answer: C.Hiring
573. The elasticity of demand explains the relationship between
A. Income and demand

B. Price and demand

C. Price of substitutes and demand

D. Utility and demand

E. Price of substitutes and utility

Answer: B.Price and demand
574. Time versus output or wage versus incentive are part of problems involving
A. pay level

B. pay control

C. payment method

D. pay structure

E. Individual pay determination

Answer: C.payment method
575. The greatest barrier to communication lies in
A. Technological limitations

B. Human differences

C. Distance

D. Semantic problem

E. All of the above

Answer: B.Human differences

576. Hindustan Copper Limited has main plant in Khetri which is in the state of
A. Rajasthan

B. J & K

C. Haryana

D. Punjab

E. Rs. 17,50,500

Answer: A.Rajasthan
577. Determining manpower requirements and ways of meeting those requirement is the process of
A. Human resource planning

B. Recruitment

C. Selection

D. Human resource auditing

E. Training

Answer: A.Human resource planning
578. When supply is fixed, the market price is determined by
A. demand

B. income

C. Cost

D. Profit

E. Rs. 17,50,500

Answer: A.demand
579. Which of the following is levied on goods imported into India?
A. customs duty

B. Excise duty

C. Estate duty

D. Wealth tax

E. Rs. 17,50,500

Answer: A.customs duty
580. Standing orders are applicable to
A. All industries

B. All engineering industries

C. Only major industries

D. All industries employing more than 500 workers

E. All industries employing more than 100 workers

Answer: E.All industries employing more than 100 workers
581. For efficient organisation the principle by which management should abide by
A. There should be a clear distribution between line and staff operation and control

B. A clear understanding of authority under each position

C. A well established and known system of communication

D. All of the above

E. None of the above

Answer: D.All of the above
582. NREP is the agency associated with
A. rural employment

B. industrial growth

C. adult education

D. removal of economic disparities

E. Rs. 17,50,500

Answer: A.rural employment
583. Which of the following is capital good
A. Cigarettes

B. Medicines in a hospital

C. New print

D. News paper

E. Car for factory manager

Answer: E.Car for factory manager
584. Which one is not an economic good
A. Poison

B. Water in desert

C. Sand in river bed

D. Sand in desert

E. Trees in forests

Answer: D.Sand in desert
585. Lignite based power plant has been established in
A. Bikaner

B. Hazira

C. Rampur

D. Neyveli

E. Rs. 17,50,500

Answer: D.Neyveli
586. People will tend to move out of money and into bonds if they think
A. The rate of interest is going to fall

B. The rate of interest is going to rise

C. The rate of interest is not going to change

D. The price of real goods will rise

E. Free income is going to be taxed by government

Answer: A.The rate of interest is going to fall
587. Systematic evaluation of workers job performance and potential for cevelopment is called
A. Production

B. Human resource auditing

C. Appraisal

D. Training and development

E. None of the above

Answer: C.Appraisal
588. The term ‘OGL’ is associated with
A. insurance

B. depreciation of machinery

C. import of goods

D. gross profit

E. Rs. 17,50,500

Answer: C.import of goods
589. Customers are likely to get a variety of goods under
A. Monopoly

B. Perfect competition

C. Oligopoly

D. Monopolistic competition

E. All of the above

Answer: B.Perfect competition
590. Which of the following is a necessary characteristic that must be present before an organiszation exists?
A. An objective

B. A collection of resources

C. A combination of people and things

D. A group of people resolving a common objective

E. None of the above

Answer: D.A group of people resolving a common objective
591. Communication is defined as
A. Writing, speaking or signating

B. Receiving comprehensible information

C. The process by while thought is transpered to action

D. Transmitting information from one person, place or thing to another person, place or thing

E. All of the above

Answer: D.Transmitting information from one person, place or thing to another person, place or thing
592. The main advantage of indirect taxes is that
A. they are regressive in nature

B. easy to collect

C. arbitrary

D. capable of increased production

E. Rs. 17,50,500

Answer: A.they are regressive in nature
593. Devaluation affects imports by making it
A. costher

B. cheaper

C. competitive

D. prohibitive

E. Rs. 17,50,500

Answer: A.costher
594. The main advantage of line organisation is
A. Well defined responsibilities at all levels

B. Effective command and control

C. Rigid discipline

D. Quick decision making at all levels

E. All of the above

Answer: E.All of the above
595. The law of demand indicates the relationship between
A. The price of a commodity and the quantity demanded

B. The income of consumer and the quantity demanded

C. The relationship betweent he price of one commodity and the price of a substitute

D. The price of two commodities

E. All of the above

Answer: A.The price of a commodity and the quantity demanded
596. Salvaging means
A. Writing off the assets

B. Throwing away the assets

C. Setting the assets

D. Disposing off property which is no longer useful in present situation

E. None of the above

Answer: D.Disposing off property which is no longer useful in present situation
597. In time study sone variations almost always occur from reading to reading for any element, even if the worker is not attempting to vary his pace. This variation is not caused by the following factors, among others
A. Random variations in operator movements and pace

B. Random variations in the positions of parts worked with

C. Random variations in the position of the tools used

D. Random variations caused by slight errors in watch reading

E. Random variations caused by electricity failures

Answer: E.Random variations caused by electricity failures
598. Interest is not paid by banks on
A. Fixed deposits

B. Recurring deposit

C. Savings deposits

D. Cash certificates

E. Traveller’s cheqe.

Answer: E.Traveller’s cheqe.
599. Which of the following is not the characteristics of human wants?
A. Some wants are complementary

B. Wants differ intensity

C. Wants are limited in number

D. Wants are satisfied for the time being and are, therefore recurrent

E. Rs. 17,50,500

Answer: C.Wants are limited in number
600. Which act provides for medical care of workmen?
A. Industrial Disputes Act

B. Workmen’s Compensation Act

C. Employees State Insurance Act

D. Employees Provident Fund Act

E. All of the above

Answer: C.Employees State Insurance Act

601. If two commodities are jointly demanded they are
A. Inferior goods

B. Compliments

C. Necessities

D. Substitutes

E. Multiple goods

Answer: B.Compliments
602. A product layout is generally suggested for
A. Jobbing work

B. Batch production

C. Continuous type of production

D. Efficient machine utilization ratio

E. None of the above

Answer: C.Continuous type of production
603. Which of the following does not represent time utility?
A. Old rice

B. Cold storage

C. Sand in cities

D. All of the above

E. Rs. 17,50,500

Answer: C.Sand in cities
604. The conditions to be fullfilled before the Standing orders are certified are
A. They Standing orders should provide for every matter set out in the schedule which is applicable to the Industrial establishment

B. The Standing orders should be in conformity with the provisions of the Act

C. The certifying officers or the Appellate authority shall before certifying the Standing orders adjusdicate upon the fairness or reasonableness of the provisions of any Standing orders

D. (A) and (B) above

E. (A), (B) and (C) above

Answer: E.(A), (B) and (C) above
605. Saving is defined as
A. Accounting difference between current income and consumption

B. Sum of savings made by the different factors

C. Excess of expenditure over available income

D. Amount set aside for meeting unforeseen expenditure

E. None of the above

Answer: A.Accounting difference between current income and consumption
606. The variance of a statistical distribution indicates
A. The average value of the distribution

B. The spread of the distribution

C. The value of the variate with the largest frequency

D. The difference between the extreme values in the distribution

E. None of the above

Answer: B.The spread of the distribution
607. During contract negotiations, what two territorial rights are weighed against each other?
A. Employee rights

B. Management rights

C. Government rights

D. (A) and (C)

E. (A) and (B)

Answer: E.(A) and (B)
608. Principal wage and salary issues are all concerned with
A. Filling open positions with the most qualified personnal available

B. Creating an equitable pay system

C. Getting the most labour for the industry’s expenditures

D. All of the above

E. None of the above

Answer: B.Creating an equitable pay system
609. The objective of an organizational hygiene program is
A. To prevent accidents

B. To make the workplace risk free

C. To supply emergency medical service to workers and their families

D. To prevent occupational diseases

E. Job specification

Answer: D.To prevent occupational diseases
610. The wage rate of brick layers is likely to rise due to
A. A depression in building industry

B. An increase in the demand for houses

C. The development of cheap industrial building process

D. A decrease in productivity of bricklayer

E. None of the above

Answer: B.An increase in the demand for houses
611. Contribution of a growing production to economic growth consists in what is
A. Adds to consumption

B. Adds to production minus what it takes away from the national product in the form of consumption

C. Adds to saving and investment

D. Adds to reproducible resources

E. None of the above

Answer: B.Adds to production minus what it takes away from the national product in the form of consumption
612. Which of the following is not usually included in list of probable economies of large scale production?
A. Efficient management

B. Specialised labour force

C. Advertising

D. Use of machinery

E. Improved labour relations

Answer: C.Advertising
613. The state in India which has maximum population is
A. West Bengal

B. Kerala

C. Madhya Pradesh

D. Uttar Pradesh

E. Rajasthan

Answer: C.Madhya Pradesh
614. Which of the following is a hard currency?
A. Takka

B. Dinar

C. Yen

D. Rival

E. Rs. 17,50,500

Answer: C.Yen
615. The information used to evaluate how successful a manager is in achieving planned objectives in included
A. Profit plan or budgets

B. Financial statements

C. Proforma statements

D. Performance reports

E. None of the above

Answer: D.Performance reports
616. Speculation arises because of
A. Monopolistic competition

B. Stock market

C. Share market

D. Uncertainty of the future

E. All of the above

Answer: D.Uncertainty of the future
617. Sinking fuad’ is associated with
A. employees welfare

B. mahcine depreciation

C. idle timing

D. indirect labour cost

E. Rs. 17,50,500

Answer: B.mahcine depreciation
618. Micromotion study is
A. Enlarged view of motion study

B. Analysis of one stage of motion chart

C. Motion study when seen on a time chart

D. Sub-division of an operation into therbligs and their analysis

E. Motion study with micro-seconds as units

Answer: D.Sub-division of an operation into therbligs and their analysis
619. India had a plan holiday between
A. 1947 and 1951

B. 1963 and 1966

C. 1966 and 1969

D. 1971 and 1974

E. 1977 and 1980

Answer: D.1971 and 1974
620. Basic tool in work study is
A. Process chart

B. Planning chart

C. Shop layout

D. Bar chart

E. Stop watch

Answer: E.Stop watch
621. The incentive plan which awards bonus to worker on the basis of time save in addition to certain base rate is
A. Halsey plan

B. Rowan plan

C. Emerson plan

D. none of the above

E. None of the above

Answer: A.Halsey plan
622. All of the following are the characteristics of capitalism EXCEPT
A. Right to private property

B. Economic equality

C. Profit motive

D. Right of free enterprise

E. Rs. 17,50,500

Answer: B.Economic equality
623. The performance of a company can be judged by its
A. Share capital

B. total production

C. number of employees

D. profits

E. Rs. 17,50,500

Answer: D.profits
624. In linear programming shadow prices are
A. The values assigned to one unit of capacity

B. Maximum cost per item

C. Cost of brought out items

D. Cost of items manufactured in the plant

E. Lowest sales prices

Answer: A.The values assigned to one unit of capacity
625. Which of the following groups of economists find consumers sovereignty undesirable?
A. Capitalists

B. Socialists

C. Mercantilists

D. Positivists

E. All of the above

Answer: B.Socialists

626. Theory X and theory Y were identified by
A. Douglas Mc Gregor

B. Frederick Herzberg

C. Abbraham Maslow

D. Fritz Roethlisberger

E. None of the above

Answer: A.Douglas Mc Gregor
627. Which Trade Union has affiliation to Congress party
A. All India Trade Union Congress

B. The Centre of Indian Trade Union

C. The Indian Nation trade Union Congress

D. The Hind Mazdoor Sabha

E. None of the above

Answer: A.All India Trade Union Congress
628. Interest is not payable on investment in
A. debentures

B. fixed deposits

C. shares

D. secured loans

E. Rs. 17,50,500

Answer: C.shares
629. A monopolistic firm’s average revenue is always
A. Rising

B. Falling

C. Constant

D. Dometimes rising sometimes falling

E. Depends on several variables

Answer: A.Rising
630. All the following debt securities pay the bearer interest except
A. Corporate bonds

B. Treasury bills

C. Debentures

D. Treasury bonds

E. State government bonds

Answer: B.Treasury bills
631. Which of the following is an example of non-economic goods?
A. A packet of cigarette

B. Sand in desert

C. Plastic scrap

D. An empty bottle of whickey

E. Rs. 17,50,500

Answer: B.Sand in desert
632. Windfall profits accrue due to
A. professional management

B. use of ultra modern machinery

C. reduced cost of inputs

D. unexpected circumstances

E. Rs. 17,50,500

Answer: D.unexpected circumstances

Fundamentals of Business Management

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