TS SET 2014: Paper III, Management

Text of page 1
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
SUBJECT CODE SUBJECT PAPER
A-11-03 MANAGEMENT III
HALL TICKET NUMBER QUESTION BOOKLET
NUMBER
OMR SHEET NUMBER
DURATION MAXIMUM MARKS NUMBER OF PAGES NUMBER OF QUESTIONS
2 HOUR 30 MINUTES 150 24 75
This is to certify that, the entries made in the above portion are correctly written and verified.
Candidate’s Signature Name and Signature of Invigilator
Instructions for the Candidates A¿æýÅÆæÿ$¦ËMæü$ çÜ*^èþ¯èþË$
1. Write your Hall Ticket Number in the space provided on the top 1. D ç³#r ò³O ¿êVæü ÌZ CÐèþÓºyìþ¯èþ çÜ¦Ë ÌZ Ò$ çàÌý sìýMðüsý ¯èþ ºÆæÿ$ Æ>Äæý$ yìþ.
of this page. 2. D {ç³Ôèý² ç³{èþÐèþ$$ yðþ¿ñýOI§æþ$ ºçßý$âñýO_eMæü {ç³Ôèý²Ë¯èþ$ MæüÍW E ¨.
2. This paper consists of seventy five multiple-choice type of
questions. 3. ç³Èæü {´ëÆæÿ ¿æýÐèþ$$¯èþ D {ç³Ôé²ç³{èþÐèþ$$ Ò$Mæü$ CÐèþÓºyæþ$èþ$ ¨. Ððþ$$§æþsìý I§æþ$
3. At the commencement of examination, the question booklet will °Ñ$çÙÐèþ$$ËÌZ D {ç³Ôé²ç³{èþÐèþ$$¯èþ$ ðþÇ_ Mìü §æþ ðþÍí³¯èþ A Ôé˯èþ$ èþç³µ°çÜÇV>
be given to you. In the first 5 minutes, you are requested to open çÜÇ^èþ*çÜ$Mø yìþ.
the booklet and compulsorily examine it as below : (i) D {ç³Ôèý² ç³{èþÐèþ$$¯èþ$ ^èþ*yæþyé°Mìü MæüÐèþÆÿõ³h A ^èþ$¯èþ E¯èþ² M>Wèþç³# ïÜË$¯èþ$
(i) To have access to the Question Booklet, tear off the paper _ ^èþ yìþ. íÜtMæüPÆÿ ïÜË$Ìôý° Ðèþ$ÇÄæý$$ C¨ÐèþÆæÿMóü ðþÇ_ E¯èþ² {ç³Ôé²ç³{èþÐèþ$$¯èþ$
seal on the edge of this cover page. Do not accept a booklet Ò$Ææÿ$ A XMæüÇ ^èþÐèþ§æþ$ª.
without sticker-seal and do not accept an open booklet.
(ii) Tally the number of pages and number of questions in (ii) MæüÐèþÆæÿ$ õ³h ò³O Ðèþ$${¨ _¯èþ çÜÐèþ*^鯿ÿ {ç³M>Ææÿ D {ç³Ôèý²ç³{èþÐèþ$$ÌZ° õ³iË
the booklet with the information printed on the cover çÜ Qůèþ$ Ðèþ$ÇÄæý$$ {ç³Ôèý²Ë çÜ Qůèþ$ çÜÇ^èþ*çÜ$Mø yìþ. õ³iË çÜ QÅMæü$
page. Faulty booklets due to pages/questions missing çÜ º «¨ _ V>± Ìôý§é çÜ*_ _¯èþ çÜ QÅÌZ {ç³Ôèý²Ë$ ÌôýMæü´ùÐèþ#r Ìôý§é °f{ç³
or duplicate or not in serial order or any other M>Mæü´ùÐèþ#r Ìôý§é {ç³Ôèý²Ë$ {MæüÐèþ$ç³§æþ®ÌZ ÌôýMæü´ùÐèþ#r Ìôý§é HÐðþO¯é óþyéË$ yæþ$r
discrepancy should be got replaced immediately by a Ðèþ sìý §øçÙç³NÇèþÐðþ$O¯èþ {ç³Ôèý² ç³{é°² Ððþ r¯óþ Ððþ$$§æþsìý I§æþ$ °Ñ$ÚëÌZÏ ç³È>
correct booklet from the invigilator within the period ç³ÆæÿÅÐóþæüMæü$°Mìü ÇW C_aÐóþíÜ §é°Mìü º§æþ$Ë$V> çÜÇV>Y E¯èþ² {ç³Ôèý²ç³{é°² ¡çÜ$Mø yìþ.
of 5 minutes. Afterwards, neither the Question Booklet èþ§æþ¯èþ èþÆæÿ {ç³Ôèý²ç³{èþÐèþ$$ Ðèþ*Ææÿaºyæþ§æþ$ A§æþ¯èþç³# çÜÐèþ$Äæý$ CÐèþÓºyæþ§æþ$.
will be replaced nor any extra time will be given.
(iii) After this verification is over, the Test Booklet Number (iii) ò³O Ñ«§æþ V> çÜÇ^èþ*çÜ$Mö¯èþ² èþÆ>Óèþ {ç³Ôé²ç³{èþ çÜ Qůèþ$ OMR ç³{èþÐèþ$$ ò³O
should be entered in the OMR Sheet and the OMR Sheet A§óþÑ«§æþ V> OMR ç³{èþÐèþ$$ çÜ Qůèþ$ D {ç³Ôé²ç³{èþÐèþ$$ ò³O °ÇªçÙtt çÜ¦Ë ÌZ Æ>Äæý$ÐèþÌñý¯èþ$.
Number should be entered on this Test Booklet. 4. {ç³ {ç³Ôèý²Mæü$ ¯éË$Væü$ {ç³éÅÐèþ*²Äæý$ {ç³çܵ §æþ¯èþË$ (A), (B), (C) Ðèþ$ÇÄæý$$ (D)
4. Each item has four alternative responses marked (A), (B), (C) Ë$V> CÐèþÓºyézÆÿ$$. {ç³{ç³Ôèý²Mæü$ çÜÆðÿO¯èþ {ç³çܵ §æþ¯èþ¯èþ$ G¯èþ$²Mö° Mìü §æþ ðþÍí³¯èþ Ñ«§æþ V>
and (D). You have to darken the circle as indicated below on the OMR ç³{èþÐèþ$$ÌZ {ç³ {ç³Ôé² çÜ QÅMæü$ CÐèþÓºyìþ¯èþ ¯éË$Væü$ Ðèþé¢ÌZÏ çÜÆðÿO¯èþ
correct response against each item. {ç³çܵ §æþ¯èþ¯èþ$ çÜ*_ ^óþ Ðèþ颰² »êÌý ´ëÆÿ$$ sý ò³¯þø Mìü §æþ ðþÍí³¯èþ Ñ«§æþ V>
Example : A B C D ç³NÇ ^éÍ.
where (C) is the correct response. E§éçßýÆæÿ×ý : A B C D
(C) çÜÆðÿO¯èþ {ç³çܵ §æþ¯èþ AÆÿ$$óþ
5. Your responses to the items are to be indicated in the OMR Answer
Sheet given to you. If you mark at any place other than in the 5. {ç³Ôèý²ËMæü$ {ç³çܵ §æþ¯èþ˯èþ$ D {ç³Ôèý²ç³{èþÐèþ$$ø CÐèþÓºyìþ¯èþ OMR ç³{èþÐèþ$$ ò³O¯èþ
circle in the Answer Sheet, it will not be evaluated. CÐèþÓºyìþ¯èþ Ðèþé¢ÌZϯóþ ç³NÇ _ Væü$Ç¢ ^éÍ. AÌêM>Mæü çÜÐèþ*«§é¯èþ ç³{èþ ò³O ÐóþÆöMæü ^ør
6. Read instructions given inside carefully. Væü$Ç¢õÜ¢ Ò$ {ç³çܵ §æþ¯èþ Ðèþ$*ÌêÅ Mæü¯èþ ^óþÄæý$ºyæþ§æþ$.
7. Rough Work is to be done in the end of this booklet. 6. {ç³Ôèý² ç³{èþÐèþ$$ ÌZç³Ë C_a¯èþ çÜ*^èþ¯èþ˯èþ$ gê{Væüèþ¢V> ^èþ§æþÐèþ yìþ.
8. If you write your name or put any mark on any part of the OMR 7. _èþ$¢ç³°° {ç³Ôèý²ç³{èþÐèþ$$ _ÐèþÆæÿ C_a¯èþ RêäçܦËÐèþ$$ÌZ ^óþÄæý*Í.
Answer Sheet, except for the space allotted for the relevant
entries, which may disclose your identity, you will render yourself 8. OMR ç³{èþÐèþ$$ ò³O °È~èþ çÜ¦Ë ÌZ çÜ*_ ^èþÐèþËíܯèþ ÑÐèþÆ>Ë$ èþí³µ _ CèþÆæÿ çÜ¦Ë ÌZ
liable to disqualification. Ò$ Væü$Ç¢ ç³#¯èþ$ ðþÍõ³ Ñ«§æþ V> Ò$ õ³Ææÿ$ Æ>Äæý$yæþ V>± Ìôý§é CèþÆæÿ _à²Ë¯èþ$ ò³rtyæþ
9. The candidate must handover the OMR Answer Sheet to the V>± ^óþíܯèþrÏÆÿ$$óþ Ò$ A¯èþÆæÿáèþMæü$ Ò$Æóÿ »ê«§æþ$ÅËÐèþ#鯿ÿ$.
invigilators at the end of the examination compulsorily and 9. ç³Èæü ç³NÆæÿ¢Æÿ$$¯èþ èþÆ>Óèþ Ò$ OMR ç³{é°² èþç³µ°çÜÇV> ç³Èæü ç³ÆæÿÅÐóþæüMæü$yìþMìü CÐéÓÍ.
must not carry it with you outside the Examination Hall. The Ðésìý° ç³Èæü Væü¨ ºÄæý$rMæü$ ¡çÜ$Mæü$ÐðþâæýÏMæü*yæþ§æþ$. ç³Èæü ç³NÆæÿ¢Æÿ$$¯èþ èþÆæÿ$Ðéèþ A¿æýÅÆæÿ$¦Ë$
candidate is allowed to take away the carbon copy of OMR {ç³Ôèý² ç³{é°², OMR ç³{èþ Äñý$$MæüP M>Ææÿ¾¯þ M>ï³° ¡çÜ$Mæü$ÐðþâæýÏÐèþ^èþ$a.
Sheet and used Question paper booklet at the end of the
10. ±Í/¯èþËÏ Ææÿ Væü$ »êÌý ´ëÆÿ$$ sý ò³¯þ Ðèþ*{èþÐóþ$ Eç³Äñý*W ^éÍ.
examination.
10. Use only Blue/Black Ball point pen. 11. ÌêVæüÇ£æþÐþ$ sôýº$ÌýÞ, M>ÅÍMæü$ÅÌôýrÆÿË$, GË[M>t°Mü ç³ÇMæüÆ>Ë$ Ððþ$$§æþËVæü$¯èþÑ ç³ÈæüVæü¨ÌZ
11. Use of any calculator or log table etc., is prohibited. Eç³Äñý*W ^èþyæþ °õÙ«§æþ .
12. There is no negative marks for incorrect answers. 12. èþç³ çÜÐèþ*«§é¯éËMæü$ Ðèþ*Ææÿ$PË èþWY ç³# Ìôý§æþ$.
III L 1 A-11-03
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
Text of page 2
*A0403*
HE
RE
WR
ITE
NO
T
DO
III L 2 A-11-03
Text of page 3
*A0403*
MANAGEMENT
Paper – III
1. Grievance means 4. Achievement, Recognition and
(A) Long pending unresolved written Responsibility are
complaint
(A) Extrinsic rewards
(B) Long pending unresolved oral
(B) Monetary rewards
complaint
(C) Technical rewards
(C) Long standing unresolved strike
(D) Intrinsic rewards
(D) Long standing unresolved lockout
2. ‘Hot Stove’ rule is 5. Staffing includes
(A) A learning program 1. Workload estimation
(B) A disciplinary action 2. Termination
(C) A training program 3. Selection
(D) A dispute settlement
4. Induction
3. Directing is one of the important functions
Options :
of HRM under______ function.
(A) 1 and 2 only
(A) Operative
(B) 1, 2 and 3 only
(B) Technical
(C) Managerial (C) 2, 4, 3 only
(D) Behavioral (D) 1, 2, 3 and 4
III L 3 A-11-03
Text of page 4
*A0403*
6. HR Planning includes 8. Select the correct sequence of the
following H.R. functions
1. Selection
1. Compensation and Benefits
2. Recruitment 2. H.R. Planning
3. Training 3. Performance Appraisal
4. Separation 4. Recruitment Selection
5. Training and Development
Options :
Options :
(A) 1 and 2
(A) 1 – 2 – 3 – 4 – 5
(B) 3 and 4
(B) 2 – 4 – 5 – 3 – 1
(C) 1, 2, 3 and 4 (C) 5 – 4 – 3 – 2 – 1
(D) 2, 3 and 4 (D) 4 – 3 – 2 – 1 – 5
7. The order of Grievance redressal 9. Select the correct sequence of the stages
in career cycle
procedure
1. Maintenance
1. Supervisor
2. Establishment
2. Foreman
3. Exploration
3. H.O.D. 4. Growth
4. Worker 5. Mid-career crisis
5. Grievance Committee 6. Stabilization
7. Decline
Option :
Options :
(A) 4 – 2 – 1 – 3 – 5
(A) 1– 2 – 3 – 4 – 5 – 6 – 7
(B) 1 – 2 – 3 – 4 – 5
(B) 7 – 6 – 5 – 4 – 3 – 2 – 1
(C) 5 – 4 – 3 – 2 – 1
(C) 4 – 3 – 2 – 6 – 5 – 1 – 7
(D) 3 – 2 – 1 – 5 – 4 (D) 6 – 5 – 4 – 2 – 3 – 7 – 1
III L 4 A-11-03
Text of page 5
*A0403*
10. Match the following sets: 12. Match the following sets:
Set-I Set-II
Set-I Set-II
a. Maslow 1. Two factor theory
a. Culture 1. Beautrice web
b. McGregor 2. Need Hierarchy theory
b. Organizational culture 2. Ishikawa
c. Herzberg 3. Achievement theory
d. McClelland 4. Theory ‘X’ and Theory ‘Y’ c. Collective bargaining 3. Edgar Sehin
Options: d. Quality circles 4. E.B. Taylor
a b c d
Options :
(A) 1 3 2 4
(B) 2 4 1 3 a b c d
(C) 3 2 4 1 (A) 2 1 3 4
(D) 2 1 3 4 (B) 1 3 4 2
11. Match the following sets: (C) 4 3 1 2
Set-I Set-II (D) 3 2 1 4
a. Job specification 1. Relative worth of
13. Assertion (A) : HRM is the policies and
job
practices involved in
b. Job Description 2. Human
managing the people.
Requirements
c. Job Enrichment 3. Duties and Reasoning (R) : HRD is training and
Responsibilities developing people’s
d. Job Evaluation 4. New opportunities skills.
Options: Options :
a b c d (A) Both A and R are correct
(A) 3 4 2 1
(B) A is correct but R is wrong
(B) 4 3 1 2
(C) A is wrong but R is correct
(C) 2 3 4 1
(D) 1 4 3 2 (D) Both A and R are wrong
III L 5 A-11-03
Text of page 6
*A0403*
14. Assertion (A) : Performance Read the following passage and answer the
Management is a
questions from (Q. No. 16 – 19)
comprehensive
approach of assigning, One of the best-known organization wide
training, assessing and
incentive systems is the Scanlon plan. It seeks
rewarding employee’s
performance. cooperation between management and
employees through sharing problems, goals
Reasoning (R) : Performance appraisal
is evaluating employees’ and ideas. (It is interesting to note that many
current performance quality circle programs instituted in the 1980s
relative to “standard
were a direct outgrowth of the Scanlon Plan).
performance”.
Under Scalon, each department in the
Options :
organization has a committee composed of
(A) Both A and R are wrong
supervisor and employee representatives.
(B) Both A and R are correct
Another incentive plan that started in the early
(C) A is correct but R is wrong
1990s is called IMPROSHARE. Improshare,
(D) A is wrong but R is correct
a contraction of improving productivity through
15. Assertion (A) : Learning is the process sharing, uses a mathematical formula to
through which employees
determine employee’s bonuses. For example,
gain skills by their
spontaneous efforts. if workers save labor costs in producing a
product, a predetermined portion of the labour
Reasoning (R) : Training is the process
through which employees savings goes to the employees.
are gaining skills by
enforcement. 16. Bonus based on mathematical formula is
Options : (A) Market share
(A) Both A and R are correct (B) Inclusive share
(B) Both A and R are wrong
(C) Improshare
(C) A is correct R is wrong
(D) Intra share
(D) A is wrong R is correct
III L 6 A-11-03
Text of page 7
*A0403*
17. Incentive program through sharing 20. The marketing concept holds that
problems between employees and (A) Firm should find the right products for
its customers and not the right
employers is customers for its product
(B) Customers who are coaxed into
(A) Gantt-Plan
buying a product will most likely buy it
again
(B) Scan-Plan
(C) A new product will not be successful
(C) Lon Plan unless it is priced, distributed and sold
properly
(D) Scanlon-Plan (D) A better product will by itself lead
people to buy it without much effort
18. Scanlon-Plan is a derivative of from the sellers
21. The ultimate outcome of relationship
(A) Quality Management
marketing is a unique company asset
called the _________, consisting of the
(B) Quality spiral
company and its supporting stake holders.
(C) Quality engineering (A) Brand
(B) Supply chain
(D) Quality Circle
(C) Value proposition
(D) Service channel
19. Scanlon plan is _________ incentive.
22. Which of the following categories of goods
(A) Individual wise and services is most likely to require an
aggressive use of the selling concept?
(B) Group-wise (A) Shopping goods
(B) Necessary goods
(C) Plant wise
(C) Luxury goods
(D) Team wise (D) Unsought goods
III L 7 A-11-03
Text of page 8
*A0403*
23. When e-Bay and Amazon .com cut out the 25. The set of brand equity drivers are
majority of middlemen that normally would 1. The initial choices for the brand
elements or identities making up the
participate in the exchange process is brand
2. The product and service and all
(A) Deregulation
accompanying marketing activities
and supporting marketing programs
(B) Disintermediation
3. Other associations indirectly
(C) Diversification transferred to the brand by linking it
some other entity
(D) Reintermediation 4. None of the above
Options :
24. The buying centre includes the following
(A) 1 only
members of the organisations who play (B) 1 and 2 only
role in the purchase decision process (C) 1, 2 and 3 only
(D) 4 only
1. Initiators and influencers
26. Consumer behavior is influenced by
2. Approvers and deciders 1. Culture, sub-culture and social class
2. Reference groups, family, social roles
3. Users and buyers
3. Age, stage in the life cycle,
4. Gate keepers occupation, life style
4. None of the above
(A) 3 only
Options :
(B) 1, 2 and 3 only (A) 1 and 2 only
(B) 1 and 3 only
(C) 1, 2, 3 and 4
(C) 4 only
(D) None of the above (D) 1, 2 and 3 only
III L 8 A-11-03
Text of page 9
*A0403*
27. Cause for channel conflict 29. Assertion (A) : It is not the job of the
marketing researcher to
1. Clear roles and rights
produce insight into the
2. Goal incompatibility customer’s attitude and
buying behaviour.
3. Differences in perception
Reasoning (R) : Marketing insights
4. Intermediaries dependence on the
provide diagnostic
manufacture information about how
and why we observe
Options :
certain effects in the
(A) 1 only market place and what
that means to marketers.
(B) 2, 3 and 4 only
(A) A is right and R is wrong
(C) 3 and 4 only
(B) R is right and A is wrong
(D) 4 only
(C) Both A and R are right
28. Assertion (A) : A market segment (D) Both A and R are wrong
consists of a group of
30. Assertion (A) : Sellers should do their
customers who share a
similar set of needs and best to avoid
wants. dissatisfiers and should
identify the major
Reasoning (R) : The size, purchasing satisfiers or motivators of
power and
purchase.
characteristics of the
segments can be Reasoning(R) : The absence of
measured. dissatisfiers is enough to
Options : motivate purchase.
(A) A is right R is wrong (A) A is right R is wrong
(B) A is wrong R is right (B) R is right A is wrong
(C) Both are right (C) Both A and R are right
(D) Both are wrong (D) Both A and R are wrong
III L 9 A-11-03
Text of page 10
*A0403*
31. Assertion (A) : Corporate Social 33. Correct sequence in Marketing Research
marketing concept holds
Process
that the firm’s task is to
determine the needs and 1. Develop the research plan
interest of target groups
and deliver desired 2. Define the problem
satisfactions more
effectively and need 3. Collect and analyse the information
bother about society’s
4. Make the decision
well-being.
5. Present the findings
Reasoning (R) : Adopting and conducting
business practices that (A) 2 – 1 – 3 – 5 – 4
protect the environment,
human and animal rights (B) 1 – 2 – 5 – 4 – 3
is specifically a part of
Corporate Social (C) 2 – 3 – 5 – 4 – 1
marketing.
(D) 1 – 2 – 3 – 5 – 4
(A) A is right R is wrong
(B) A is wrong R is right 34. Correct sequence in pricing
(C) A and R are right
1. Selecting the pricing objective
(D) A and R are wrong
2. Selecting a pricing method
32. Correct sequence of Buying Decision
Process 3. Estimating demand and cost
1. Information search 4. Analysing competitors cost, prices
2. Evaluation of alternatives and offers
3. Problem recognition
5. Selecting final price
4. Post purchase behavior
5. Purchase decision Options:
Options: (A) 3 – 4 – 2 – 1 – 5
(A) 1 – 3 – 4 – 2 – 5
(B) 1 – 3 – 5 – 4 – 2
(B) 3 – 1 – 2 – 5 – 4
(C) 1 – 3 – 4 – 2 – 5
(C) 2 – 1 – 3 – 4 – 5
(D) 4 – 5 – 3 – 2 – 1 (D) 4 – 3 – 1 – 2 – 5
III L 10 A-11-03
Text of page 11
*A0403*
35. Match the following: 36. Match the following:
Set-I Set-II Set-I Set-II
a. Brand salience 1) Focus on
a. Stated needs 1) The customer wants customers’ own
to be seen by friends personal opinions
and evaluations
as a savvy consumer
b. Brand imagery 2) Is how often and
b. Unstated needs 2) The customer would how easily
customers think of
like the dealer to
the brand under
include an onboard various purchase
or consumption
navigation system
situation
c. Delight needs 3) The customer expects c. Brand judgements 3) Describe the
extrinsic
good service from the
properties of the
dealer product or service
d. Brand feelings 4) Are customers
d. Secret needs 4) The customer wants
emotional
an inexpensive car resources and
reactions with
Options : respect to the
brand.
a b c d
Options :
(A) 4 3 2 1 a b c d
(B) 3 2 1 4 (A) 4 2 3 1
(B) 2 3 1 4
(C) 4 1 2 3
(C) 3 4 2 1
(D) 3 4 1 2 (D) 2 1 4 3
III L 11 A-11-03
Text of page 12
*A0403*
37. Match the following: 38. Match the following:
Set-I Set-II Set-I Set-II
a. Likert scale 1) A scale
a. Hard core loyals 1) Consumers who shift connecting two
bipolar words.
loyalty from one
The respondent
brand to another selects the point
that represents
his or her
b. Split loyals 2) consumers who
opinion.
show no loyalty to
b. Rating scale 2) A scale that
any brand rates the
significance of
some attribute.
c. Shifting loyals 3) Consumers who are
loyal to two or more c. Semantic differential 3) A scale that
rates some
brands attribute from
poor to
d. Switchers 4) Consumers who buy excellent
only one brand all the d. Importance scale 4) A statement
with which the
time respondent
shows the
Options : amount of
agreement/
a b c d disagreement.
Options :
(A) 3 4 1 2
a b c d
(B) 2 1 3 4 (A) 1 3 2 4
(C) 4 3 1 2 (B) 2 1 3 4
(C) 4 2 1 3
(D) 3 4 2 1
(D) 4 3 1 2
III L 12 A-11-03
Text of page 13
*A0403*
39. In IRR, the discount rate at which the cash 42. Which of the following statements are
flows are reinvested is correct ?
1. Dividends are distributed after
(A) Risk free rate
deducting tax
(B) Cost of capital
2. Dividends are distributed out of current
(C) The IRR year net profit
3. Dividends are distributed even out of
(D) Cost of equity
reserves
40. In the case of conflicts in Ranking projects, 4. Dividends are distributed out of capital
the decision rule that is appropriate in to (A) 1 and 2 are correct
(A) Accept the project with the highest IRR (B) 1 and 3 are correct
(C) 3 and 4 are correct
(B) Accept the project with lowest cost of
(D) 2 and 4 are correct
capital
43. Risk of returns on a stock is measured by
(C) Accept the project with highest NPV
1. Using part returns
(D) Accept the project with lowest risk
2. Using current return
41. The value of a lowered firm is 3. Using expected returns
(A) Vu + Tax shield 4. Using accounting rate of return
(A) 1 and 2 are correct
(B) Vu + Market value of bonds
(B) 2 and 3 are correct
(C) Vu + Market value of equity
(C) 3 and 4 are correct
(D) None of the above
(D) 1 and 3 are correct
III L 13 A-11-03
Text of page 14
*A0403*
44. Which of following is a Conglomerate 46. Assertion (A) : A customer is the most
Business? important person for a
1. Tata, Reliance, Birla, ITC business – all principal
direction for a business
2. Murugappa, Pepsi, Coca Cola, HCL
comes from customers
3. Infosys, Wipro, TCS, Cognizant i.e. the market.
4. HUL, Dabur, Proctor and Gamble,
Reasoning (R) : When Steve Job’s was
Ranboxy
asked about whether he
(A) 1 and 2
listened to the market to
(B) 2 and 3 come out with successful
(C) 1 only products, he remarked
(D) 1 and 4 ‘What does the Market
Know’?
45. Assertion (A) : In the strong form of
(A) Only A is correct
Efficient Market
Hypothesis (EMH), a (B) Only R is correct
security’s price reflects (C) Both are not correct
only publicly held
information. (D) Both are right
Reasoning (R) : In the sense strong form 47. Assertion (A) : A person walked in a
of Efficient Market pond whose average
Hypothesis (EMH) a depth was 1 foot and
security’s price reflects drowned.
all information that may
be contained in the Reasoning (R) : The above statement is
historical prices of the a commentary on abuse
security. of statistics.
A) Only A is correct (A) Both A and R are correct
B) Only R is correct (B) Only A is wrong
C) Both A and R are wrong (C) Only R is correct
D) Both A and R are correct (D) Both A and R are wrong
III L 14 A-11-03
Text of page 15
*A0403*
48. The dividend, disbursement process 50. Steps in estimating cash flow for a capital
involves expenditure decision
1. Terminal cash flows
1. TDS
2. Initial cash flows
2. Approval at AGM 3. Intermediate cash flows
4. Estimation of cash flows
3. Board of Director’s resolution
(A) 4, 3, 2, 1
4. Disbursal of dividend warrant (B) 4, 1, 2, 3
(A) 1, 2, 3, 4 (C) 4, 2, 3, 1
(D) 4, 2, 1, 3
(B) 2, 3, 4, 1
51. Match the following:
(C) 3, 2, 1, 4
Set-I Set-II
(D) 3, 2, 4, 1
a. Screening 1) Averaging of
price
49. Which of the following resourcing of
managerial finance function is correct? b. Toe hold acquisition 2) Wrong selection
c. Moral Hazard 3) Mitigating
1. Investing
information
asymmetry
2. Financing
d. Pooling equilibrium 4) Initial small
3. Dividend disbursement
acquisition of
shares
4. Project evaluation
(A) 4, 1, 2, 3 a b c d
(A) 1 2 3 4
(B) 4, 2, 1, 3
(B) 2 3 4 1
(C) 2, 3, 4, 1
(C) 4 3 2 1
(D) 1, 2, 3, 4 (D) 3 4 2 1
III L 15 A-11-03
Text of page 16
*A0403*
52. Match the following: Read the following passage and answer the
Set-I Set-II questions (Nos. 54-57) :
a. Tata 1) FMCG
A venture financier is evaluating a proposal to
b. Infosys 2) Conglomerate fund a new firm. The new firm’s parameters are
c. Apple 3) I Phone as follows:
d. HUL 4) IT Solutions
The venture requires Rs. 7 million in equity
a b c d
financing to move to the next stage of
(A) 2 4 3 1
development. Assuming that the financers,
(B) 2 3 1 4
business goals are achieved, it will generate
(C) 1 3 2 4
earnings of Rs. 21 million per year into
(D) 3 2 1 4
perpetuity starting beginning on the harvest
53. Match the following sets:
date, four years from now, when the firm will
Set-I Set-II
go public. At that time firm will be valued
a. LBO 1) A measure of according to P/E ratio of 18. The probability of
abnormal return
the firm being successful is only 25%. A
b. Jensen’s Alpha 2) It can not be
eliminated discount rate of 33% will have to be applied to
c. Non diversifiable risk 3) Selling below the firm.
economic value
d. Fire sale 4) Acquiring a 54. What is the harvest date value of the firm
company using in million rupees?
debt funds
a b c d (A) 210
(A) 4 3 1 2 (B) 378
(B) 4 1 2 3
(C) 400
(C) 4 1 3 2
(D) 4 2 1 3 (D) 368
III L 16 A-11-03
Text of page 17
*A0403*
55. What is the probability adjusted value of 59. American depository receipt for Infosys’s
stock means
the firm at harvest date?
(A) Infosys stocks are deposited in the US
(A) 189
(B) Infosys stock are traded as fixed
(B) 283.5 deposits
(C) 94.5 (C) Infosys stocks are dominated in USD
(D) None of the above
(D) 300
60. ISO 9000 refers to
56. What is the present value of probability
(A) Quality standards
adjusted value?
(B) Quantity standards
(A) 30.2
(C) Ecological standards
(B) 30 (D) Technical standards
(C) 25 61. Michael Porter theory of international trade
(D) 21 focus on
(A) Technological upgradation
57. On the basis of above valuation, what
(B) International HRM
would be the share of VC in the capital?
(C) The competitive advantage of nations
(A) 33.2% (D) Economies of scale
(B) 43.2%
62. Balance of payments consists of
(C) 23.2% 1. Current account
(D) 13.2% 2. Official reserve account
3. Capital account
58. Which of the following does not covered
4. Foreign account
by TRIPS?
Options:
(A) Copy rights and related rights
(A) 1, 2, 3 not 4
(B) Trade marks
(B) 1, 2, 3 and 4
(C) Patents (C) 1, 3, 4 not 2
(D) Quantitative restrictions (D) 2, 3, 4 not 1
III L 17 A-11-03
Text of page 18
*A0403*
63. Non-tariff measures are as follows 65. Assertion (A) : Some businesses may
want to eliminate foreign
1. Import quota
competition through
2. Voluntary export restrictions protective legislation.
3. Quality standards Reason (R) : The better way to
compete is to
4. Domestic content requirements
continuously improve
(A) 1, 2, 3 not 4 products at home and
expand in to foreign
(B) 2, 3, 4 not 1 markets.
(C) 2, 4, not 1 and 3
(A) A is correct but R is wrong
(D) 1, 2, 3 and 4
(B) R is correct but A is wrong
64. Choose the set of components of (C) A and R are correct
globalization (D) A and R are wrong
1. Globalization of markets 66. Assertion (A) : The attribution rate in
BPO sector is alarming.
2. Globalization of products
3. Globalization of investment Reason (R) : The stress levels in BPO
sector is high due to
4. Globalization of technology
heavy work load.
(A) 1, 2, 3 and 4 (A) Both A and R are true
(B) 2, 3, 4 not 1 (B) Both A and R are wrong
(C) 1, 3, 4 not 2 (C) A is true but R is wrong
(D) R is true but A is wrong
(D) 2 and 4 only
III L 18 A-11-03
Text of page 19
*A0403*
67. Assertion (A) : Most companies would 69. Match the following sets:
prefer to remain domestic
if their domestic markets
were large. Set-I Set-II
Reason (R) : Domestic companies
a. Domestic based 1) Home based
prefer to expand to foreign
markets due to non viability export division and travel
of domestic markets.
abroad to fund
(A) A and R are correct
business
(B) A and R are wrong
(C) R is correct but A is wrong
b. Overseas subsidiary 2) Export
(D) A is correct but R is wrong
department
68. Match the following sets: operating as its
Set-I Set-II own profit center
a. Ethnocentric 1) Exporting to the
approach neighbouring countries c. Travelling export 3) Holds limited or
of the country sales representative exclusive rights
to represent the
b. Polycentric 2) Entire world is just like a
approach single country company in that
country
c. Regiocentric 3) Companies establish
approach foreign subsidiary and
empowers its executives d. Foreign based 4) Handles sales
d. Geocentric 4) Domestic companies distribution and distribution
approach view foreign markets as and promotion
an extension of
domestic markets a b c d
a b c d (A) 4 3 1 2
(A) 4 3 1 2
(B) 2 4 1 3
(B) 2 4 3 1
(C) 3 1 4 2
(C) 1 2 4 3
(D) 3 1 2 4 (D) 1 2 3 4
III L 19 A-11-03
Text of page 20
*A0403*
70. Match the following sets: 72. Match the following sets:
Set-I Set-II
Set-I Set-II
a. Floating rate system 1) Exchange rate
a. USA 1) KRX - KE are fixed with
respect to the
b. Hong Kong 2) NASDAQ currencies of
countries of a
c. Japan 3) HANGSENG particular zone
d. South Korea 4) NIKKEI b. Pegging of currency 2) Is a hybrid
of fixed rate
and floating
a b c d rate.
(A) 2 3 4 1
c. Crawling peg 3) Developing
(B) 4 2 1 3 country pegs
its currency
(C) 3 1 4 2 either to a
strong
(D) 1 3 2 4
currency or
currency of a
country with
71. Arrange the following steps related global which it has
reward system. large share of
trade.
1. Rewards frame work
d. Target zone agreement 4) Marketing
2. Job structure frame work
forces
3. Global philosophy frame work determine the
exchange rate
4. Ongoing program assessment
Options:
5. Talent management frame work
a b c d
(A) 4, 2, 3, 5, 1
(A) 3 4 1 2
(B) 2, 4, 5, 3, 1
(B) 4 3 2 1
(C) 3, 2, 1, 4, 5 (C) 1 3 4 2
(D) 5, 3, 4, 1, 2 (D) 2 3 4 1
III L 20 A-11-03
Text of page 21
*A0403*
73. Match the following sets:
74. Volatility in USD and INR exchange rate
Set-I Set-II
is measured by calculating.
a. Sporadic dumping 1) Selling the
product in a
foreign market at (A) Annualized standard deviation of
a less
exchange rate of INR against USD
b. Predatory dumping 2) Consistently
selling the
product at lower (B) Standard deviation of exchange rate
prices in one
market than in of INR against USD
other markets
c. Persistent dumping 3) Product is sold (C) Standard deviation exchange rate of
at a high price in
international INR against Euro
markets and at a
lower price in
domestic market (D) None of the above
d. Reverse dumping 4) Occurs when an
international
75. Recently, the capital account deficit in
company sells
its unsold
India shows signs of decline due to
inventory in
foreign country
to get rid of them (A) Fall in crude prices
Options:
a b c d (B) Fall in gold imports
(A) 4 1 2 3
(B) 3 1 4 2 (C) Increase in exports
(C) 2 1 3 4
(D) 1 2 3 4 (D) All of the above
________________
III L 21 A-11-03
Text of page 22
*A0403*
Space for Rough Work
III L 22 A-11-03
Text of page 23
*A0403*
Space for Rough Work
III L 23 A-11-03
Text of page 24
*A0403*
Space for Rough Work
III L 24 A-11-03Official key not published for this paper.
Page 1 of 24
Source: Telangana State Eligibility Test. Question paper published by Telangana State Eligibility Test.