MH SET 2013: 1 December, Paper III, Management
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DEC-51313/III 2
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DEC-51313/III
Management
Paper III
Time Allowed : 2½ Hours] [Maximum Marks : 150
Note : This Paper contains Seventy Five (75) multiple choice questions, each
question carrying Two (2) marks. Attempt All questions.
3. Human Resource Department is :
1. What measures can a government
(A) Line department
take to reduce unemployment ?
(B) Authority department
(A) Monetary measures
(C) Service department
(B) Increase in imports
(D) Functional department
(C) Fiscal measures
4. Which of the following is true for
(D) Decrease government spending
IRR method of capital budgeting ?
2. Which of the following answer
(I) IRR is that rate where NPV
choices is the best definition of
equals zero
attitudes ?
(II) IRR is that rate where PV of
(A) Attitudes are the yardstick by
cash inflows equal PV of cash
which one measures one’s
outflows
actions
(III) IRR considers time value of
(B) Attitudes are the emotional
money
part of an evaluation of some
person, object or event (IV) IRR and ARR give similar
results
(C) Attitudes are evaluative
statements of what one believes (A) (I), (II) and (III)
about something or someone (B) (I), (II) and (IV)
(D) Attitudes are a measure of how (C) (I), (III) and (IV)
the worth of an object, person
(D) (II), (III) and (IV)
or event is evaluated
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5. Zapping is the technique ................... . 7. What condition is required before the
central limit theorem justifies
(A) to change the TV channels to
approximating the sampling
avoid seeing commercials
distribution of the mean with a
(B) to view only select
normal distribution ?
advertisements on TV
(A) n < 30
(C) to influence audience through
(B) n > 30
a specific TV commercial
(C) nq > 8
screened frequently
(D) 1 > n < N
(D) to have intentional display of
a particular advertisement at 8. Which of the following statements
about organization’s mission is
regular intervals
false ?
6. The difference between the actual
(A) They reflect a company’s
demand for a period and the
purpose
demand forecast for that period is
called : (B) They indicate what a company
intends to contribute to society
(A) Mean square error
(C) They define a company’s reason
(B) Bias
for existence
(C) Weighted Arithmetic Mean
(D) They are formulated after
(D) Forecast error
strategies are known
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9. Y.C. Deveshwar, M.S. Banga, 11. BARS stands for :
K.V. Kamath are examples of : (A) Best Administered Rating
System
(A) Entrepreneurs
(B) Behaviourally Administered
(B) Business tycoons
Ranking Strategy
(C) Intrapreneurs (C) Best Attitudinal Review System
(D) Social entrepreneurs (D) Behaviourally Anchored Rating
Scale
10. Which of the following arguments
12. Assertion (A) : Usually a company
are against social responsibility of
treats brand only as name and it
business ? misses the point of branding.
(A) Businesses can do better by Reasoning (R) : Brand name needs
to be carefully managed so that its
creating better public image
equity does not get depreciated.
(B) Businesses must respond to
(A) Both (A) and (R) are correct and
social demands (R) is the correct explanation
of A
(C) Businesses should set-up
(B) Both (A) and (R) are correct but
socially desirable standards of
(R) is not the correct
living
explanation of (A)
(D) Businesses should manage only (C) (A) is correct but (R) is incorrect
in the interest of shareholders (D) (A) is incorrect but (R) is correct
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13. A portfolio consisting of two risky 15. Appropriate meaning of
securities can be made riskless i.e.
compensable factors is :
σp = 0, if :
(A) the securities are perfectly (A) Common job characteristics
positively correlated that an organization is willing
(B) the securities are perfectly
to pay for such as skill, efforts
negatively correlated
and responsibility etc
(C) the correlation ranges between
0 to 1 (B) A rise in pay based on
(D) the correlation coefficient r = 0.5 performance
14. Which one of the following is a
(C) Practice of using fewer pay
record of country’s monetary
grades having broader ranges
transactions with the rest of
the world, during a given period of than traditional compensation
time ?
system
(A) International trade
(D) Shows the relationship between
(B) Balance of trade
the value of the job and average
(C) Balance of payment
wage paid
(D) Current account
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16. In the case of only one variable 18. Advantages of transfer include all
factor in a production process, other but ...................... .
factors assumed to be unchanging,
(A) improves better use of human
if the total product is at its
resources
maximum, the corresponding
(B) helps in managing dual career
marginal product is ...................... .
(C) enhancing the individual’s
(A) also maximum
motivation
(B) zero
(D) broadening the employees’
(C) falling
perspective
(D) rising
19. “Off the balance sheet financing”
17. Poor quality lateral communication
refers to financing through :
will result in which of the following ?
(A) Intercorporate deposits
(A) lack of direction
(B) lack of co-ordination (B) Public deposits
(C) lack of delegation (C) Leasing arrangement
(D) lack of control (D) Venture capital
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20. The controllable variables a
company puts together to satisfy a 22. The measure of how well the
target group is called the
......................... . regression line fits the data is the :
(A) marketing strategy
(B) marketing mix (A) slope of regression line
(C) strategic planning
(B) mean square error
(D) marketing concept
21. Which of the following statements
is true ? (C) coefficient of determination
(1) An intermittent flow system is
characterised by a streamlined (D) standard error of the regression
flow of products in the operating
system coefficient
(2) Continuous flow systems are
characterised by mid volume, 23. Which of the following is not a
mid variety products/services
(3) Jumbled flow system is support activity in Michael Porter’s
characterised by non-standard
and complex flow patterns value chain analysis model ?
(4) The nature of flow in operations
has no impact on the process
(A) Firm infrastructure
choices available to the
operations manager
(B) Procurement
Choose the correct option :
(A) (2)
(C) Technology development
(B) (4)
(C) (3)
(D) After sales services
(D) (1)
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24. .......................... is the payment 1 2 3
method most often used in Idea
26. Generation
Idea
Screening ?
international trade which offers the
exporter best assurance of being paid
for the products sold internationally. Commerciali-
Product
Development
zation
(A) Bill of lading
5 4
(B) Letter of credit
(C) Open account Stage-3 of New Product
(D) Bank draft
Development is :
25. Match the right pairs :
(A) Determine business potential
(1) Universally mentioned
Rewards of Entrepre- (i) Power (B) Idea evaluation
neurship
(C) Test product development
(2) Occasionally mentioned (ii) Wealth
rewards of Entrepre- (D) Determine product cost
neurship
27. The method used to give new or
(3) Rarely mentioned
present employees the skills they
rewards of entrepre- (iii) Develop
neurship new product/ need to perform their jobs are called
idea
........................... .
Which of the given choices
represents the correct pairs : (A) orientation
(A) (1-ii), (2-iii), (3-i)
(B) training
(B) (1-ii), (2-i), (3-iii)
(C) (1-iii), (2-i), (3-ii) (C) development
(D) (1-i), (2-iii), (3-ii)
(D) management
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30. The type of financing in which the
28. Which of the following markets will
purchaser approaches the
be less competitive ?
shareholders directly instead of the
(A) High barriers to entry management to acquire interest in
acquired firm is known as :
(B) Presence of large number of
(A) Preference share financing
substitutes
(B) Tender offer
(C) Strong bargaining power of
(C) Deferred payment plan
suppliers
(D) Ordinary share financing
(D) Strong bargaining power of
31. Who proposed that a country
distributors
produces and exports the product in
29. The customer pages of a company which she has absolute advantage
and import the rest of the products
on ‘Facebook’ is an example of :
from other countries ?
(A) Viral marketing
(A) David Ricardo
(B) Social media marketing
(B) Adam Smith
(C) Network marketing (C) Posner
(D) Referral marketing (D) Ohlin
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32. Who takes the advantage of leverage 34. Which of the HR functions is least
i.e. the possibility of large potential affected by internationalisation ?
gains and large potential losses in
(A) Succession planning
the derivatives market ?
(B) Equal employment oppor-
(A) Hedgers
tunities
(B) Speculators
(C) Compensation
(C) Arbitrageurs
(D) Training
(D) Regulators
35. The following is not an objective of
33. When the price of petrol rises,
wage incentive programme :
demand for automobiles decreases
(A) Developing ownership interest
because car and petrol are :
(B) Improving employee retention
(A) Complementary goods
(C) Reducing labour costs
(B) Substitute goods
(D) Facilitating the separation of
(C) Inferior goods
employees
(D) Normal goods
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36. Firm A acquires firm B, MPS of B
38. The product of ‘actual time’
is Rs. 20 and EPS is Rs. 5. For an
‘performance rating’ and ‘allowance
exchange ratio of 1.5 : 1 what was
the P/E ratio used in acquiring factor’ is known as :
B ?
(A) Cycle time
(A) 4
(B) Standard task time
(B) 5
(C) Completion time per unit
(C) 6
(D) 2.66 (D) Setup time
37. Which of the following statements 39. Information system that monitors,
is not true for services ?
the elementary activities and
(A) Most service products cannot be
transactions of the organisations
inventoried
are :
(B) Intangible elements usually
dominate value creation (A) Management level systems
(C) Operational inputs and outputs (B) Operational level systems
do not vary
(C) Knowledge level systems
(D) Customers may be involved in
co-production (D) Strategic level systems
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40. A conglomerate diversification
strategy involves .......................... . 42. Which of the following statements
(A) Diversifying into related areas
(B) Diversifying into unrelated is incorrect ?
areas
(C) Joining hands with competitors
Ethical codes .................... .
(D) Forging collaboration with
foreign companies
41. On basis of the statements given (A) are statements of norms and
below answer the question given :
(1) It is ethical to make beliefs of an organisation
exaggerated claims in
advertisements
(B) establish priorities between
(2) It is ethical to degrade rival
products in advertisements
(3) It is ethical to make false claims norms and beliefs
in advertisements
(4) Advertisements which are
(C) should be updated
obscene are ethical
(A) Statements (3) and (4) are
periodically
incorrect
(B) All statements (1), (2), (3) and
(4) are incorrect (D) are considered as ‘window
(C) Only statements (3) and (4) are
incorrect
dressing’ by many employees
(D) Only statement (4) is incorrect
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43. When looking at consumer’s income, 45. Suppose country ‘A’ produces a new
product which will be produced by
marketers are most interested in :
country ‘B’ within a stipulated period
(A) Inflationary income of time. This gap in time period is
called .................... .
(B) Disposable income
(A) Time lag
(C) Gross income
(B) Demand lag
(D) Discretionary income
(C) Supply lag
44. The goal of wealth management does
(D) Imitation lag
not take into consideration :
46. Which one of the following entry
(A) Risk related to uncertainty of models for international business
has maximum risk but maximum
returns
reward also ?
(B) Timing of expected returns
(A) Licensing
(C) Amount of returns expected
(B) Alliances
(D) Impact of competition on cash
(C) Direct exporting
flows
(D) Indirect exporting
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47. Choose the correct option :
49. Training objectives should be
Allowance given for using capital
expressed in :
equipment for production is known
as : (A) Employee behaviour
(A) Appreciation (B) Needs assessment
(B) Deficit
(C) Employee reactions
(C) Loss
(D) Subjective judgement
(D) Depreciation
50. Which of the following is not an
48. The first stage of conflict resolution
assumption of the MM theory for
is to :
irrelevance of dividends ?
(A) define the problem (A) Irrational investors
(B) analyse the problem (B) No tax discrimination on capital
gains and dividends
(C) choose a solution
(C) No transaction costs
(D) think through possible solutions
(D) No floatation costs
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51. The firm’s orientation characterised 53. In a bank customers arrive once in
every 3 minutes. What is the
by the belief that ‘a good product will
probability of exactly 10 customers
sell itself’ is a reflection of :
arriving at the bank within a time
(A) Sales orientation period of half an hour ?
(A) 0.25
(B) Product orientation
(B) 0.125
(C) Relationship orientation
(C) 0.15
(D) Marketing orientation (D) 0.10
52. Which of the following methods is 54. Two cards are drawn in succession
from a standard 52 card deck. What
used to measure correct demand ?
is the probability that both the cards
(A) Market build up method are aces if the cards are drawn
without replacement ?
(B) Survey of buyer’s intentions
(A) 0.0044
(C) Composite of sales force
(B) 0.044
opinions
(C) 0.44
(D) Past sales analysis (D) –0.44
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55. Match the contributions of the 57. Select the correct option :
following : A teleological approach to business
(i) Igor Ansoff (a) QUEST technique ethics proposes that the guiding
(ii) Michael Porter (b) Growth vector principle should be :
(iii) B. Nanus (c) Competitive adva-
(A) Power
ntage of nations
(iv) Mc Kinsey (d) 7-S (B) Purpose
Select the correct matching : (C) Practice
(A) (i-d), (ii-a), (iii-b), (iv-c)
(D) People
(B) (i-b), (ii-c), (iii-a), (iv-d)
58. Which of the following is not one of
(C) (i-b), (ii-d), (iii-c), (iv-a)
(D) (i-c), (ii-d), (iii-a), (iv-a) the main reasons for major changes
56. Which among the following is not in performance appraisal in recent
a distinctive competitive advantage years ?
for SSI’s ?
(A) Total quality management
(A) Ability to mobilize local
resources (B) Knowledge management
(B) Quick response to rapidly
initiatives
changing environment
(C) Government legislation
(C) Better managerial control
(D) Economies of scale (D) Team work initiatives
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60. Which of the following statements
59. Company ‘A’ is interested in
is True ?
finding out if the demand for a
(A) Forward exchange contracts are
particular brand of detergent is
traded on at an organised
sensitive to higher or lower prices.
exchange
What type of research design would
(B) Future contracts are carried out
be most suitable to carry the
through direct dealing between
research ?
parties
(A) Experimental Research (C) Leading and lagging is an
Design internal technique of foreign
exchange risk management
(B) Exploratory Research Design
(D) Translation profits or losses
(C) Descriptive Research Design
must be reflected in the income
(D) Secondary Data Research statement
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61. When the market forces reduce the 63. “Extra leg space” in aircraft and
“services guarantee” are examples
external value of a currency, then
of :
the process is called ....................... .
(A) Demand-supply management
(A) Deflation
strategies in services
(B) Devaluation
(B) C.R.M. initiatives in services
(C) Exchange rate depreciation (C) Tangibilising the intangibles in
services
(D) Depreciation
(D) Creative pricing in services
62. Employee orientation programme
64. The OPEC operating at the
should be the concern of :
international level is the case
(A) top management
of a ............................ .
(B) the supervisor
(A) Holding company
(C) the HR department (B) Cartel
(D) both the HR department and (C) Multinational company
the supervisor (D) Trust
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65. Victor Vroom’s V.I.E. model of
67. The stability of dividends can
motivation is about :
(A) Value Interpretation take any of the following
Experiment
forms :
(B) Varied Interpersonal
Experience
(i) Constant dividend per
(C) Variety Involvement Execution
(D) Valence instrumentality share
Expectancy
66. Match the correct option (ii) Stable D/P ratio
(A) A candid state-
ment from a (iii) Constant dividend per share
rater
plus extra dividend
Self Appraisal (B) Evaluation by
a ratee
(A) (i) only
(C) E v a l u a t i o n
based on key
incidents (B) (i) and (ii) only
(D) C o m p a r i n g
(C) (i), (ii) and (iii)
ratees to one
another
(D) (ii) and (iii) only
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68. In a project the following 69. Study the table given below and
information about procedence answer the question :
relationships and activity Topology Feature
completion time is given : (1) Star topology (a) The terminals are
connected in a
Activity Immediate Activity circle like cable
layout
predecessor Completion
(2) Ring topology (b) allows for all
Time (in weeks) messages to be
sent to the entire
A — 1
network through
B — 2 a circuit
(3) Hybrid topology (c) Communications
C A 3
are routed
D B 4 through the
central system
E C 4
known as server
F C 3 (4) Bus topology (d) Mix of topologies
to serve specific
G D&E 5
communication
needs
H F&G 2
Choose the right option representing
Choose the correct critical path :
the correct combinations
(A) A–C–F–H (A) 1—(c), 2—(a), 3—(d), 4—(b)
(B) 1—(c), 2—(b), 3—(a), 4—(d)
(B) A–C–E–G–H
(C) 1—(a), 2—(b), 3—(c), 4—(d)
(C) B–D–G–H
(D) 1—(d), 2—(a), 3—(b), 4—(c)
(D) B-D–E–F–H
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70. ‘Moonlighting’ refers to :
72. The first step in a performance
(A) Doing a part time
analysis is to :
entrepreneurial work after
regular job hours (A) compare the person’s
(B) Taking business away from performance to ideal
one’s employer performance
(C) Getting extra business for the (B) evaluate productivity per
employer through personal
employee
contacts
(C) conduct tests of job knowledge
(D) Attempt to make one’s business
seem more successful than the (D) evaluate supervisor
reality performance reviews
71. Select the correct option :
73. The systematic and deliberate
Kyoto Protocol : advancement made by an individual
(A) will result into reduction of in his/her career in the entire work
Greenhouse Gases
life is known as :
(B) will improve quality of work life
(A) career path
(C) will ensure and protect
(B) career review
employee privacy
(D) will reduce gender (C) career guidance
discrimination (D) career anchoring
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74. Which of the following statements
75. In which of the following
is false ?
types of trading blocs are
(A) Return on any financial asset
consists of current yield and monetary and fiscal policies
capital yield.
co-ordinated among member
(B) In CAPM, beta represents total
countries ?
risk i.e. systematic and
unsystematic risk.
(A) Free trade area
(C) Risk of a portfolio depends on
(B) Customs union
the correlation among the
securities in the portfolio.
(C) Common market
(D) Risk of an individual financial
(D) Economic union
asset refers to variability of its
returns around its mean
returns.
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ROUGH WORK
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