1. Which one of the following information type is NOT included in a skill inventory?

a) Employee’s personal data

b) Organization’s training schedulem, history

c) Employee’s potential

d) Salary and Job history

Ans:  Employee’s personal data

2. Which one of the following approaches stresses that there are no universal rules for managers to follow in order to perform the job?

a) Contingency

b) System

c) Mathematical

d) Empirical

Ans: Contingency

3. The best level of output for a perfectly competitive firm in short run is a point where P = MR = MC, provided that

a) P< AVC / P<AVC

b) P> AVC / P<AVC

c) P=AVC / P=AVC

d) P< AVC / P=AVC



4. What is the role of advertisements and selling costs in perfectly competitive markets?

Informative to intimate product/service availability

a) Enlarging market size

b) Very essential for survival of the firm

c) Influencing buyer behaviour

Ans: Informative to intimate product/service availability

5, It is believed that employees’ attitude influence their perception of work, but the employees’ experience at work may also modify or shape their attitudes. This is an example

a) Contingency Approach

b) Democratic Approach

c)Interactional Approach

d) Socio‐technical system Approach

Ans :‐ Contingency Approach

6. Which one of the following employee behaviour is NOT true in case of high stress level?

a. Anxiety

b. Careless mistakes

c. Nervousness

d. Low and bad judgemental ability

Ans: Anxiety

7. Information regarding ‘personal job demands (human expenditure involved in work, such as energy expenditure)’ collected in job analysis falls in which one of the following?

a. Work Activities

b. Worker‐Oriented Activities

c. Personal Requirements

d. Job Context

Ans: Work Activities

8. Which one of the following orientation programmes seek to ratify the usefulness of the characteristics that the person brings to the new job?

a. Serial Orientation

b. Disjunctive Orientation

c. Investiture Orientation

d. Divestiture Orientation

Ans:  Serial Orientation

9. In which one of the following motives, relevant for organizational climate, there is an urge to be relevant and useful to large groups including society as a whole?

a. Affiliation

b. Influence

c. Extension

d. Achievement

Ans: Affiliation

10. If the market price of PQR Ltd. is 44, EPS is 3.75 and the retention ratio is 60%, then the multiplier according to Graham and Dodd Model of Dividend policy is

a. 15

b. 5

c. 16

d, 17

Ans: 15

11. The holistic, integrated and goal‐oriented process of planning, recruiting, selecting, developing, managing, and compensating employees is known as

a. Human Resource Management

b.Strategic Human Resource Management

c. Talent Management

d. Human Resource Planning

Ans: Human Resource Management

12. Which one of the following performance appraisal methods prevents supervisors from rating all or most employees “satisfactory” or “high”?

a. Critical Incident Method

b. Forced Distribution Method

c. Paired Comparison Method

d. Alternation Ranking Method

Ans: Critical Incident Method

13. In case of agency problem, the actions of managers are very likely to be directed towards the goal of

a. Profit maximisation

b. Wealth maximisation

.c Survival and self‐sufficiency

d. Self‐sufficiency

Ans: Profit maximisation

14. Which one of the following measures better explains inflation in an economic ecosystem?

a) GNP deflator

b) Wholesale Price Index (WPI)

c) Consumer Price Index (CPI)

d) Rate of change in GNP deflator

ans:  GNP deflator

Du Pont analysis formula involves which financial elements for computation of earning power?

a Net profit margin, Total assets turnover and Equity multiplier

b Total assets turnover and sales turnover profitability

c Profit margin, Sales turnover and Asset‐use efficiency

d. Total assets turnover and Equity multiplier

ans:  Net profit margin, Total assets turnover and Equity multiplier


Following information is available for the year 2018 and 2019 of ABC Ltd

Year                                       2018                                                 2019

Sales                                         Rs.32,00,000                         Rs 57,00,000

Profit/(Loss)                           (Rs. 3,00,000)                             Rs. 7,00,000    

Calculate P/V ratio

a 40%

b 16%

c 22%

d 25%

ans: 40%

17. Which methods of risk analysis better serve lender’s perspective in the capital budgeting decisions?

a)Risk Adjusted Discount Rate

b)Certainty Equivalent approach

c) Simulation and Sensitivity analyses

d) Decision Analysis

ans:  Risk Adjusted Discount Rate

18. As per Walter’s model, the market value of a growing firm will increase if the dividend payout ratio is a) Increased

b) Decreased

c) constant

d) 100%

ans:  increased

19. In the absence of covariance among securities in the portfolio, if each security has an average standard deviation of 20%, the portfolio of 100 securities would have a standard deviation of

a) 2%


c) constant

d) 10%

ans:  2%

20. The relationship between an investor’s expectation of return on bonds with respect to the investment horizon is called

a) Yield to maturity

b)bond yield

c) constant yield

d) risk immunization

ans:  bond yield

21. ___________ usually have intensive distribution because sales of these products tend to have a direct relationship to their availability

a) convenience goods

b)unsought goods

c) shopping goods

d)none of these

ans:  convenience goods

22. Which phrase best completes the statement below?
One of the key tasks of a marketer is to __ and to create a perception among consumers that the product is worth purchasing.
a)Promote sales of products

b)Make products easily visible and available

c)Do market surveys

d)none of these

ans: Make products easily visible and available

23. When companies offer products in small packages or charge on a pay‐per‐use basis, then such strategies are part of:

a Regionalisation strategies

b Strategies for the Bottom‐of‐the Pyramid

c Strategies for competing with global companies

d Strategies for internationalisation

ans: Regionalisation strategies

24. At the business level, organisations need to position their business as being Low‐cost leaders or Differentiated. The position when cost leadership is high in terms of lower prices/lower costs and differentiation is low, is called:

a Cost Leaders

b Focused differentiators

c Focused Cost Leaders

d Differentiators

ans: Focused Cost Leaders

25. The process of converting a non‐productive, inactive asset into a productive asset by selling receivables to a company that specialises in their collection and administration, is described as

a Factoring

b Receivables management

c Credit administration

d none of these

ans: Credit administration

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