MH SET 2013: 17 February, Paper III, Management
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Management
Paper III
Time Allowed : 2½ Hours] [Maximum Marks : 150
Note : This Paper contains Seventy five (75) multiple choice questions. Each
question carries Two (2) marks. Attempt All questions.
1. Which of the following statements
3. .................................................absolves
is true ?
(A) MC is a subset of incremental the employer’s liability under the
cost
Maternity Benefit Act and
(B) Incremental cost is a subset of
MC Workmen’s Compensation Act.
(C) MC is subset of sunk cost
(A) Employee’s Provident Fund Act,
(D) Sunk cost is a subset of
incremental cost
1952
2. In order to predict human
behaviour, it is best to supplement (B) Industrial Employment
your intuitive opinions with
(Standing Order) Act, 1946
information derived in what
fashion ?
(C) Employees State Insurance Act,
(A) Common sense
(B) Systematic inquiry 1948
(C) Direct observation
(D) Industrial Disputes Act, 1947
(D) Organisational theory
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4. As per Pecking-Order theory, the 6. Study the following table about
various methods of selective
first financing choice in order of
inventory control and answer the
preference is :
question at the end of the table :
(A) Retained earnings Inventory Control Concepts
Methods
(B) Non-convertible debt
(1) ABC analysis (a) Speed of movement
(C) Preference shares
of inventory
(D) Equity (2) XYZ classification (b) Combination of unit
cost and consumption
5. Identify the incorrect pair of
pattern
“Strategy–Approach” :
(3) VED analysis (c) Unit cost of inventory
(A) Market Penetration—Increase
(4) FSN classification (d) Criticality of
number of users
inventory item
(B) Market Development—Sell in Which of the following indicates the
new locations correct match of the methods and the
concepts ?
(C) Product Development—
(A) (1)–(a), (2)–(b), (3)–(c), (4)–(d)
Improve Technology
(B) (1)–(b), (2)–(c), (3)–(d), (4)–(a)
(D) Diversification—Convince non-
(C) (1)–(c), (2)–(a), (3)–(b), (4)–(d)
users to use the product
(D) (1)–(d), (2)–(a), (3)–(c), (4)–(b)
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7. Organise the following in the correct 9. Which of the following is not among
the thrust areas of policy for SSIs
sequence :
in India ?
(A) Resources availability
(1) Knowledge
(B) Rehabilitation of sick SSI units
(2) Business Intelligence (C) Timely and adequate credit
availability
(3) Data (D) Quality improvement support
10. On basis of the statements given
(4) Information
below, answer the following
Choose the right option : question :
Puffery in advertisement is :
(A) (1), (2), (3), (4) (1) An exaggerated claim in an
advertisement that is considered
(B) (1), (4), (2), (3)
as illegal
(C) (3), (4), (1), (2) (2) An exaggerated claim in an
advertisement that is considered
(D) (3), (4), (2), (1) as legal
(3) Usage of claims like ‘best’,
8. Which of the following is not a force
‘greatest’, ‘finest’, for a product
in the Porter’s Five Forces Model ? or service
(3) Based on the concept of ‘Placebo
(A) Bargaining Power of Buyers
Effect’
(A) Options (1) and (3) are correct
(B) Bargaining Power of Suppliers
(B) Options (1) and (2) are correct
(C) Industry Rivalry (C) Options (1), (3), (4) are correct
(D) Options (2), (3) and (4) are
(D) Bargaining Power of Dealers
correct
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11. The process of deciding what 13. Match the pair for the following and
indicate the correct option :
positions the firm will have to fill
(a) Constant growth (i) Capital Budgeting
is called :
Technique
(A) Recruitment
(b) Profitability (ii) Capital Structure
(B) Selection
Index Theory
(C) Personnel Planning (c) Modigliani- (iii) Corporate Restruc-
Miller approach turing
(D) Interviewing
(d) Leveraged (iv) Share valuation
12. Training evaluation criteria include
buyout Model
all but :
(A) (a)-(i), (b)–(ii), (c)–(iii), (d)–(iv)
(A) Reactions
(B) (a)-(ii), (b)–(iii), (c)–(iv), (d)–(i)
(B) Results
(C) (a)-(iii), (b)–(ii), (c)–(i), (d)–(iv)
(C) Relevance
(D) (a)-(iv), (b)–(i), (c)–(ii), (d)–(iii)
(D) Behaviour
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14. Why is international trade 16. Which concept shows the overall
significant among countries ? output generated at a given level of
(A) For promoting the world peace input ?
(B) For decreasing cost of (A) Cost function
production
(B) Production function
(C) For difference in the taste and
(C) Marginal rate of technical
preference among nations
substitution
(D) To earn foreign exchange
(D) Isocost
15. The component of an effective
17. Balance Score Card emphasizes
performance management process
that explains each employee’s role on :
in terms of his or her day-to-day
(A) only the strategy
work is called :
(B) the importance of measuring
(A) Role clarification
business performance
(B) Goal alignment
(C) critical incident method
(C) Developmental goal setting
(D) intellectual capital
(D) Direction sharing
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20. When a manager focuses on making
18. Inputs to the selection process
whatever products are easy to
include all but : produce, and then trying to sell
them, that manager has
(A) Job applicants a.................................orientation.
(A) Marketing
(B) Human resource planning
(B) Production
(C) Supervision (C) Sales
(D) Profit
(D) Job analysis
21. Organise the following activities in
19. Which of the following approaches production planning process in the
correct order :
to dividend valuation assumes a
(1) Master Production Schedule
constant non-growing dividend (2) Raw Material Purchase Orders
(3) Aggregate Production Planning
stream ?
(4) Material Requirements
(A) Constant growth model Planning
Choose the right option :
(B) Variable growth model
(A) (3), (1), (2), (4)
(C) Zero growth model (B) (3), (1), (4), (2)
(C) (4), (3), (2), (1)
(D) Gordon model
(D) (1), (2), (3), (4)
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22. The standard error of the mean will 24. What are the areas of primary focus
decrease : for “Public Entrepreneurship” ?
Which deals with revitalization of
(A) As the sample size increases
government agencies ?
(B) As the sample standard
(A) Creation, Innovation
deviation increases
(B) Customer, Creation
(C) To a point and then remains
(C) Customer, Efficiency
constant
(D) Innovation, Efficiency
(D) As the sample size decreases
25. Choose the correct option :
23. A dog division stands for :
Performance Review System, that
(A) A low market growth rate but makes managers rate people on
high market share normal distribution curve :
(B) A high market growth rate and (A) Is ethically correct
high market share (B) Values the full development of
peoples’ potential
(C) A high market growth rate and
(C) Creates misalignment between
low market share
values and practices
(D) A low market growth rate and
(D) Increases productivity of
low market share
employees
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26. Which of the following techniques
28. Because personal selling is taking
is least susceptible to personal
biases ? on a more prominent role in the
(A) Rating scales
corporate marketing mix, selling
(B) Check lists
(C) Forced choice today :
(D) BARS
(A) requires fewer and less intensive
27. Based on the statements below select
the correct answer : communication skills than
Hybrid systems :
previously
(1) Are similar in operations to the
multiple channel system
(B) has become a less attractive
(2) Are systems where channel
members perform complemen- career for college graduates
tary services
(C) Involves more use of
(3) Are more vertical
(4) Improve level of performance. communications and computer
(A) Statements (1) and (3) are
technologies
correct
(B) Statements (1) and (2) are (D) Places greater focus on short-
correct
term persuation, with less
(C) Statements (2) and (4) are
correct
emphasis on consultation and
(D) Statements (2) and (3) are
correct problem solving
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29. Which is the correct sequence, if we 31. Which theory considers the
arrange various sources of finance
possibility of trade between two
from costliest to cheapest in terms
countries having the same factor
of their cost of capital ?
endowment and consumer
(A) Equity, Retained earnings,
Debt, Preference preference ?
(B) Retained earnings, Equity,
(A) Comparative advantage theory
Preference, Debt
(B) Heckscher—Ohlin theory
(C) Debt, equity, Preference,
Retained Earnings (C) Imitation-gap theory
(D) Preference, Debt, Equity,
(D) Absolute advantage theory
Retained earnings
32. Role playing is often used to :
30. Which of the following is a non-DCF
technique ? (A) Change attitudes
(A) PI
(B) Learn skills
(B) IRR
(C) Change results
(C) NPV
(D) Model behaviour
(D) ARR
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33. A demand curve suggesting unitary 36. Assertion (A) :Dividing a segment
elasticity through out shall be :
into subsegments with a distinctive
(A) a rectangular hyperbola
set of traits seeking a special
(B) a straight line parallel to X-axis
combination of benefits
(C) a straight line parallel to Y-axis
Reasoning (R) : Godrej company
(D) a negatively sloping straight
introduced Ezee to target the
line of 45° angle
consumers who wanted mild
34. A common method of measuring
attitudes is by using : washing detergent for woollen
clothes.
(A) in-depth interviews
(B) observing people’s behaviour (A) Both (A) and (R) are correct
(C) systematic differential scales and (R) is correct explanation
(D) a lie detector of (A)
35. Which of the following is not an (B) Both (A) and (R) are correct but
environmental challenge facing
(R) is not the correct
human resources ?
explanation of (A)
(A) Competition for scarce inputs
(C) (A) is correct but (R) is
(B) Governmental rules and
incorrect
regulations
(C) Global competition (D) (A) is incorrect but (R) is
(D) Environmental activities correct
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37. For a ‘t’ distribution, increasing the
39. Which of the following sets of factors
sample size will affect :
(1) degrees of freedom
should an entrepreneur considers
(2) the ‘t’ ratio
(3) standard error of mean
carefully before selecting a new
Choose the correct option :
(A) (1) only
project ?
(B) (2) only
(C) (3) only
(A) Investment size, Location
(D) (1), (2) and (3)
38. Which of the following sets of
technology, Market conditions
activities truly reflects the strategic
implementation ?
(B) Investment size, competition,
(A) Leadership implementation,
Organizational restructuring,
expertise, age, gender
Quality monitoring
(B) Resource allocation, Quality
(C) Investment size, Market
monitoring Management
policies, Leadership
conditions, Gestation period,
implementation
(C) Organizational restructuring,
Expertise
Resource allocation
Management policies,
(D) Investment size, Repayment
Maintenance management
(D) Leadership implementation,
capability, Availability of loans,
Resource allocation,
Management policies,
Profit margins
Organizational restructuring
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40. Which of the following is not a 42. The gap between what customers
stakeholder of a company ? expect and what they receive
when dealing with a firm, is :
(A) Employee
(A) Related to the price they
(B) Customer
paid for something, not its
(C) Competitors
quality
(D) Shareholder
(B) Always positive because the
41. Sabbatical means :
higher of the two values is
(A) Extra pay for not taking sick
counted first
leave
(C) One measure of their
(B) An extended leave of absence satisfaction with a firm and its
(C) Benefits for time not worked products
(D) Membership-based, non- (D) Impossible to measure
financial rewards offered to because it is subjective, not
attract and retain employees objective
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43. Which is the correct equation that 45. Which of the following figures
calculates P (Profit before tax). represents perfect negative
Assume selling price per unit = Rs. correlation between price and sales
S, variable cost per unit = Rs. V of a particular product of a
Number of units sold = U units and company ?
Total fixed costs = Rs. F.
Sales
(A) P = SV – F
(A)
(B) P = U(S – V) – F Price
(C) P = FS – V
Sales
(D) P = S(V – F)
(B)
44. The exports to countries belonging Price
to erstwhile British empire is
called : Sales
(C)
(A) ASEAN
Price
(B) Commonwealth
(C) SAPTA Sales
(D)
(D) SAARC Price
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46. Penetration pricing of a product of 48. Match the correct option :
a firm implies : Graphic Rating Scale :
(A) low initial price followed by a (A) Evaluation based on key
high price incidents
(B) high initial price followed by a (B) Rating in behavioural terms
low price (C) A scale that lists a number of
traits and a range of
(C) moderate price of a product
performance for each
(D) fluctuating price of a product
(D) Evaluation by ratee
47. Which role in a group setting
49. Which of the following is not a
contributes to the social-emotional
hypothesis put forward to explain
bonding of members and the groups
the rationale for issuing bonus
overall success ?
shares and stock splits ?
(A) facilitative or building role
(A) Signalling hypothesis
(B) individualizing
(B) Trading range hypothesis
(C) maintenance
(C) Attention hypothesis
(D) blocking (D) Alternate hypothesis
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50. .....................describes changes in an 52. Management Information System
individual consumer behaviour usually :
arising from experience.
(I) Provides managers with a
(A) Modeling
generalised computing and
(B) Perception
telecommunications strategy for
(C) Learning problem solving
(D) Motivation
(II) Serves managers interested in
51. A problem can be considered as weekly, monthly and yearly
Linear Programming Problem, if
results on various performance
and only if it has :
parameters
(1) Objective function
(III) Performs and records daily
(2) Costraints
routine transactions necessary
(3) Alternative courses of Action
for conducting business
(4) Latest Technology
(A) (I) only
(A) (1) only
(B) (II) only
(B) (1) and (2)
(C) (III) only
(C) (1), (2) and (3)
(D) (I) and (II)
(D) (1), (2) and (4)
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53. Match the following :
55. Select the correct option :
Types of Organization Characteristics
Structure Sarbanes–Oxley Act, 2002
(1) Functional (a) Maximum use of
emphasises on :
limited functio-
nal resources
(A) Environmental Protection
(2) Network (b) Adopts to local
conditions (B) Work-life Balance
(3) Matrix (c) Simple communi-
cation (C) Total quality Management
(4) Territorial (d) More Agile and
(D) Audit function and Financial
flexible
(A) (1)–(a), (2)–(c), 3–(b), (4) –(d) disclosures
(B) (1)–(c), (2)–(d), 3–(a), (4) –(b)
56. Which of the following is not a
(C) (1)–(b), (2)–(a), 3–(c), (4) –(d)
“Public Relations Function” ?
(D) (1)–(d), (2)–(b), 3–(a), (4) –(c)
54. In which of the following types of
(A) Assess the corporate reputation
ownership there is no distinction
between the business entity and the
(B) Audit C.S.R.
owner(s) :
(A) Company limited by shares (C) Conduct positive image
(B) The co-operative organization
building activities
(C) Proprietorship
(D) Identify prospective customers
(D) Joint stock company
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57. When there is an official increase in
60. Which is the part of every
exchange rate of the Indian rupee,
interpersonal relationship ?
then it is called....................... .
(A) Conflict
(A) Appreciation
(B) Love
(B) Deflation
(C) Depreciation (C) Stress
(D) Revaluation (D) Communication
58. In case the company goes into 61. Match the correct option :
liquidation, which of the following
Suspension :
is repayable first ?
(A) Actual posting of an employee
(A) Equity capital
to a specific job
(B) Redeemable preference capital
(B) Termination of the services of
(C) Cumulative preference capital
an employee
(D) Debentures
(C) Downward movement of an
59. Which type of unemployment takes
employee in the organisational
place in the economy when there is
a business downward ? hierarchy
(A) Frictional unemployment (D) Prohibiting an employee from
(B) Structural unemployment attending work and performing
(C) Cyclical unemployment normal duties assigned to him/
her
(D) Unstructured unemployment
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62. The basic objective of financial 65. Which of the following is not an
management is : application of Markov Analysis ?
(A) Maximisation of profits (A) Brand switching analysis
(B) Maximisation of shareholder’s (B) Accounts receivables problem
wealth
(C) Optimal maintenance policy
(C) Ensuring financial discipline in
(D) Product mix decisions
the organisation
(D) Ensuring returns to debenture- 66. Match the following :
holders Types of Production Characteristics
63. Which of the following methods is System
the most appropriate measure for (1) Job type (a) Stationary Layout
cost reduction investment projects and Unique
with unequal lives ?
(2) Mass type (b) Functional Depart-
(A) Equivalent annual cost ments and Compli-
(B) Equivalent annual NPV cated Material Mana-
(C) Equivalent present value index gement
(D) Capital rationing (3) Batch type (c) Huge Volume and
64. ...............................is defined as the Standard Design
difference between the benefits a (4) Project type (d) Large variety and
customer sees from a market offering Less Investment
and the costs of obtaining those
Choose the correct option :
benefits.
(A) (1)–(d), (2)–(c), (3)–(b), (4)–(a)
(A) Profit margin
(B) Surplus (B) (1)–(a), (2)–(b), (3)–(c), (4)–(d)
(C) Customer value (C) (1)–(c), (2)–(d), (3)–(b), (4)–(a)
(D) Consumer surplus (D) (1)–(b), (2)–(a), (3)–(d), (4)–(c)
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67. The number of telephone calls 69. “Franchising” is an example of :
received per day to a particular
(A) Imitation strategy
telephone number can be best
modelled by using the : (B) Innovation strategy
(A) Binomial distribution
(C) Broad scope strategy
(B) Uniform distribution
(D) Market scope strategy
(C) Poisson distribution
70. Choose the correct option :
(D) Normal distribution
Industrial Policy (1956) declared by
68. Fill in the blank spaces :
Ultimately...........................was the Government of India aimed at
replaced by the.............................on establishing :
Jan. 1, 1995.
(A) Capitalistic economy
(A) G.A.T.T., W.T.O.
(B) Socialistic pattern of society
(B) W.T.O., G.A.T.T.
(C) Mixed economy
(C) G.A.T.S., W.T.O.
(D) I.M.F., G.A.T.T. (D) Democratic economy
19 [P.T.O.
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71. An adult worker under the Factories 73. Assume the following facts :
Act, 1948 is eligible for leave with — Risk free return, rf = 7.75%
wages @ 1 day for every..................... — Beta, β = 2
days worked during the preceding — Expected return of investors,
year. r = 16%
(A) 50 What will be the expected returns
as per CAPM model ?
(B) 20
(A) 4.125%
(C) 15 (B) 16.00%
(D) 240 (C) 11.875%
(D) 7.75%
72. In strategic pricing process, there
74. How can the government of a
are various steps undertaken as
country reduce its deficit in the BOP
under :
for arresting imports and
(i) Selecting pricing method stimulating exports ?
(ii) Selecting the final price (A) Depreciation
(B) Deflation
(iii) Studying the competitors price
(C) Devaluation
(iv) Estimating demand
(D) Inflation
(v) Selecting the pricing objective 75. Under the traditional distribution
(vi) Estimating cost structure in International
Marketing, which of the following
Select the correct sequence of steps
controls a fixed supply of goods that
from the following :
are sold as high prices to a small
(A) (i)—(v)—(iii)—(ii)—(iv)—(vi) group of customers ?
(B) (v)—(iv)—(vi)—(iii)—(i)—(ii) (A) Exporter
(B) Cartel
(C) (iv)—(iii)—(i)—(ii)—(vi)—(v)
(C) Importer
(D) (ii)—(iii)—(v)—(vi)—(iv)—(i) (D) Manufacturer
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ROUGH WORK
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ROUGH WORK
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Source: Savitribai Phule Pune University. Question paper published by Savitribai Phule Pune University.