Maharashtra SET exam 2013 Answer Keys for Management

PAPER - III

1) In order to predict human behavior, it is best to supplement your intuitive opinions with information derived in what fashion?

A) Common Sense

B) Systematic inquiry

C) Direct Observation

D) Organizational theory

Correct Answer is Option B) Systematic Inquiry

2) Which of the following is not a force in the Porter's Five Forces Model?

A) Bargaining Power of Buyers

B) Bargaining Power of Suppliers

C) Industry Rivalry

D) Bargaining Power of Dealers

Correct Answer is Option C) Bargaining Power of Dealers

3) Which of the following is a non-DCF technique?

A) PI

B) IRR

C) NPV

D) ARR

Correct Answer is option D) ARR

4) Role playing is often used to:

A) Change attitudes

B) Learn Skills

C) Change results

D) Model Behaviour

Correct Answer is Option B) Learn Skills

5) Sarbanes-Oxley Act, 2002 emphasises on:

A) Environmental Protection

B) Work-Life Balance

C) Total Quality Management

D) Audit function and financial disclosures

Correct Answer is Option D) Audit Function & Financial disclosures

6) Ultimately .......................was replaced by the........................on Jan. 1, 1995.

A) G.A.T.T. , W.T.O.
B) W.T.O., G.A.T.T.
C) G.A.T.S., W.T.O
D) I.M.F., G.A.T.T.

Correct Answer is Option A) G.A.T.T., W.T.O.

7) Under the traditional distribution structure in International Marketing, which of the following controls a fixed supply of goods that are sold as high prices ti a small group of customers?

A) Exporter
B)Cartel
C)Importer
D) Manufacturer

Correct Answer is option B) Cartel

8) An adult worker under the Factories Act, 1948 is eligible for leave with wages @ 1 day for every.........days worked during the preceding year.

A) 50
B) 20
C) 15
D) 240

Correct Answer is option B) 20

9) 'Franchising' is an example of:

A) Imitation Strategy
B) Innovation Strategy
C) Broad Scope Strategy
D) Market Scope strategy

Correct Answer is option A) Imitation Strategy

10) Industrial Policy (1956) declared by the Government of India aimed at establishing:

A) Capitalistic economy
B) Socialistic pattern of Society
C) Mixed economy
D) Democratic economy

Correct Answer is option B) Socialistic Pattern of Society

11) The number of telephone calls received per day to a particular telephone number can be best modeled by using the:

A) Binomial distribution
B) Uniform distribution
C) Poisson distribution
D) Normal distribution

Correct Answer is C) Poisson distribution

12) The basic objective of financial management is:

A) Maximization of profits
B) Maximization of shareholder's wealth
C) Ensuring financial discipline in the Organization
D) Ensuring returns to debenture-holders

Correct answer is option B) Maximization of Shareholder's wealth

13) Which of the following methods is the most appropriate measure for cost reduction investment projects with unequal lives?

A) Equivalent annual cost
B) Equivalent annual NPV
C) Equivalent present value index
D) Capital rationing

Correct answer is option A) Equivalent annual cost

14) Which of the following is not an application of Markov analysis?

A) Brand switching analysis
B) Accounts receivables problem
C) Optimal Maintenance policy
D) Product mix decision

Correct answer is option D) Product mix decision

15) ............absolves the employer's liability under the Maternity Benefit Act and Workmen's Compensation Act.

A) Employee's Provident Fund Act, 1952
B) Industrial Employment (Standing Order) Act, 1946
C) Employees State Insurance Act, 1948
D) Industrial Disputes Act, 1947

Correct Answer is Option C) Employees State Insurance Act, 1948

16) As per Pecking-Order theory, the first financing choice in order of preference is:

A) Retained earnings
B) Non-convertible debt
C) Preference shares
D) Equity

Correct Answer is option A) Retained Earnings

17) Training evaluation criteria include all but:

A) Reactions
B) Results
C) Relevance
D) Behavior

Correct Answer is Option A) Reactions

18) Which of the following approaches to dividend valuation assumes a constant non-growing dividend stream?

A) Constant Growth Model
B) Variable Growth Model
C) Zero Growth Model
D) Gorden Model

Correct Answer is option C) Zero Growth Model

19) Which theory considers the possibility of trade between two countries having same factor endowment and consumer preference?

A) Comparative advantage theory
B) Heckescher-Ohlin theory
C) Imitation-gap theory
D) Absolute advantage theory

Correct Answer is option C) Imitation-gap theory

20) A demand curve suggesting unitary elasticity through out shall be:

A) a rectangular hyperbola
B) a straight line parallel to X-axis
C) a straight line parallel to Y-axis
D) a negatively sloping straight line of 45 deg. angle

Correct Answer is option A) a rectangular hyperbola

21) Which of the following is not a stakeholder of a company?

A) Employee
B) Customer
C) Competitors
D) Shareholder

Correct Answer is option C) Competitors

22) Sabbatical means:

A) Extra pay for not taking sick leave
B) An extended leave of absence
C) Benefits for time not worked
D) Membership-based, non-financial rewards offered to attract and retain employees

Correct Answer is option B) An extended leave of absence

23) The exports to countries belonging to erstwhile British Empire is called:

A) ASEAN
B) Commonwealth
C) SAPTA
D) SAARC

Correct Answer is option B) Commonwealth

24) .......................describes changes in an individual consumer behavior arising from experience.

A) Modeling
B) Perception
C) Learning
D) Motivation

Correct Answer is option C) Learning

25) In which of the following types of ownership there is no dictinction between the business entity and the owner(s):

A) Company limited by shares
B) The co-operative organization
C) Proprietorship
D) Joint stock company

Correct Answer is option C) Proprietorship

26) When there is an official increase in exchange rate of the Indian Rupee, then it is called.......

A) Appreciation
B) Deflation
C) Depreciation
D) Revaluation

Correct Answer is option A) Appreciation

27) Which type of unemployment takes place in the Economy when there is a business downward?

A) Frictional Unemployment
B) Structural Unemployment
C) Cyclical Unemployment
D) Unstructured Unemployment

Correct Answer is Option C) Cyclic unemployment

28) Which is the part of every interpersonal relationship?

A) Conflict
B) Love
C) Stress
D) Communication

Correct Answer is option A) Conflict

29) ..................is defined as the difference between the benefits a customer sees from a market offering and the cost of obtaining those benefits.

A) Profit margin
B) Surplus
C) Customer Value
D) Consumer Surplus

Correct Answer is option C) Customer Value

30) How can the Government of a country reduce its deficit in the BoP for arresting imports and stimulating exports?

A) Depreciation
B) Deflation
C) Devaluation
D) Inflation

Correct Answer is option B) Deflation

31) Organize the following in the correct sequence:

1) Knowledge
2) Business Intelligence
3) Data
4) Information

Choose the right option:
A) (1), (2), (3), (4)
B) (1), (4), (2), (3)
C) (3), (4), (1), (2)
D) (3), (4), (2), (1)

Correct Answer is option C) (3), (4), (1), (2)

32) Which of the following is not among the thrust areas of policy for SSIs in India?

A) Resource availability
B) Rehabilitation of sick SSI units
C) Timely and adequate credit availability
D) Quality improvement support

Correct Answer is option D) Quality improvement support

33) Match the correct option:

Suspension:

A) Actual posting of an employee to a specific job
B) Termination of the services of an employee
C) Downward movement of an employee in the organizational hierarchy
D) Prohibiting an employee from attending work and performing normal duties assigned to him/her.

Correct answer is option D) Prohibiting an employee from attending work and performing normal duties assigned to him/her.

34) When a manager focuses on making whatever products are easy to produce, and then trying to sell them, that manager has a ..................... orientation.

A) Marketing
B) Production
C) Sales
D) Profit

Correct answer is B) Production

35) Organize the following activities in production planning process in the correct order:

(1) Master Production Schedule
(2) Raw material purchase orders
(3) Aggregate production planning
(4) Material requirement planning

Choose the right option:
A) (3), (1), (2), (4)
B) (3), (1), (4), (2)
C) (4), (3), (2), (1)
D) (1), (2), (3), (4)

36) A Dog division stands for:

A) A low market growth rate but high market share
B) A high market growth rate and high market share
C) A high market growth rate and low market share
D) A low market growth rate and low market share

Correct Answer is D) A low market growth rate and low market share

37) The standard error of the mean will decrease:

A) As the sample size increases
B) As the sample standard deviation increases
C) To a point and then remains constant
D) As the sample size decreases

Correct Answer is A) As the sample size increases.

38) For a 't' distribution, increasing the sample size will affect:
1) degrees of freedom
2) the 't' ratio
3) standard error of mean
Choose the correct option:

A) (1) only
B) (2) only
C) (3) only
D) (1), (2) and (3)

Correct Answer is D) (1),(2) and (3)

39) Assume the following facts:
- Risk free return, Rf = 7.75%
- Beta, B = 2
- Expected return of investors, R = 16%
What will be the expected returns as per CAPM model?
A) 4.125%
B) 16.00%
C) 11.875%
D) 7.75%

Correct Answer is C) 11.875%

40) In strategic pricing process,there are various steps undertaken as under:
1) Selecting pricing method
2) Selecting the final price
3) Studying the competitors price
4) Selecting the pricing objective
5) Estimating cost
Select the correct sequence of steps from the following:
A) (1)-(5)-(3)-(2)-(4)-(6)
B) (5)-(4)-(6)-(3)-(1)-(2)
C) (4)-(3)-(1)-(2)-(6)-(5)
D) (2)-(3)-(5)-(6)-(4)-(1)

Correct Answer is B) (5)-(4)-(6)-(3)-(1)-(2)