1. The process of analysing the environment for the identification of factors which
have impact on or have implication for the business is called:
A) Forecasting B) Assessment
C) Scanning D) Evaluation

2. A monetary policy which tries to contract economic activities during an expansionary phase and expanding economic activities in a contractionary phase of a business cycle is:
A) Expansionary monetary policy
B) Contractionary monetary policy
C) Counter cyclical monetary policy
D) Discretionary monetary policy

3. Which one of the following is not a constituent of invisible account of the Balance of Payment?
A) Foreign travel B) Investment income
C) Merchandise trade D) Transfer payment

4. Which one of the following is not a disadvantage of fixed exchange rate policy?
A) Persistent imbalance in balance of payment
B) Stability in exchange rate
C) Lack of independence in monetary policy
D) Speculation

5. Name of economic system which is dominated by market forces:
A) Capitalism B) Socialism
C) Mixed economy D) Feudalism

6. Net factor income from abroad when deducted from GNP will result in:
C) GDP D) Per Capita Income

7. As per terms of WTO, patent rights are available for a minimum of:
A) 12 years B) 14 years
C) 16 years D) 20 years

8. The rate at which a banker is willing to buy foreign currency is:
A) Ask rate B) Bid rate
C) Offer rate D) Cross rate

9. State whether the followings statements are true or false:
I. Economic phenomenon, such as rate of unemployment and inflation are
studied in micro-economics.

II. Fiscal policy deals with manipulation of levels of Government spending
and Taxation.
A) I and II are true B) I and II are false
C) I is true and II is false D) I is false and II is true

10. FEMA was passed in the year:
A) 1991 B) 1999 C) 2000 D) 2001

11. Withdrawal of State from an industry partially or fully is known as:
A) Modernisation B) Liberalisation
C) Globalisation D) Privatisation

12. Scanning the external environment of a business enables it to identify:
A) Opportunities and Threats B) Opportunities and Strength
C) Strength and Weaknesses D) Threats and Strength

13. The apex body of economic planning in India is:
A) Ministry of Planning
B) NITI Aayog
C) Ministry of Economic Affairs
D) Planning Commission

14. The Brettonwood twins comprises of World Bank and:
C) IMF D) Federal Reserve

15. ——– is defined as systematic assessment of the social impact of the activities of a business firm.
A) Social audit B) Social responsibility
C) Social interaction D) Social benefit

16. FDI stands for:
A) Foreign Domestic Investment
B) Foreign Direct Import
C) Foreign Duty Inflows
D) Foreign Direct Investment

17. Which Act was replaced with the introduction of Competition Act of 2002?

18. The environment created by application of knowledge which redefine the boundaries of global business is known as:
A) Social environment B) Technological environment
C) Cultural environment D) Economic environment

19. The analysis and designing of application systems can be efficiently handled by:
A) Data entry operators B) Computer programmers
C) System analysts D) Computer operators

20. What type of commerce occurs when a firm sells its products over internet to
other firms?
A) B2B B) B2C
C) C2B D) Enterprise commerce

21. The term encryption is associated with:
A) E Commerce B) Data entry
C) Communication of data D) Data processing

22. Which one of the following is not a feature of critical information?
A) Correctness B) Economy
C) Timeliness D) Completeness

23. A system is called ——- when the inputs, process and the outputs are known with certainty.
A) Probabilistic B) Deterministic C) Open D) Close

24. Accounting system is an example of:
A) Probabilistic system B) Open system
C) Deterministic system D) Closed system

25. Transfer of a negotiable instrument can be effected by:
A) Endorsement B) Delivery of possession
C) Endorsement and delivery D) Noting by notary public

26. The rate at which RBI discounts the bills of commercial banks is known as:
A) PLR B) Bank rate
C) Discount rate D) Reverse repo rate

27. Credit cards are also known as:
A) Plastic money B) Soft money
C) Hard money D) Electronic money

28. Capital goods market deals with:
A) Non-durable goods B) Durable goods
C) Consumer goods D) Necessities

29. Under which of the following stages of product life cycle sales growth tends to slow down?
A) Declining stage B) Growth stage
C) Maturity stage D) Introduction stage

30. Which one of the following is not a factor while deciding demographic market segments?
A) Age B) Sex
C) Family size D) Climatic conditions

31. In BCG matrix a firm enjoying high market share operating in an industry offering
a high growth rate is an example of:
A) Star B) Question mark
C) Cash cow D) Dog

32. Profits reported by enterprises will be the highest in which stage of industry life
A) Introduction B) Growth
C) Decline D) Saturation

33. Which one of the following is not a generic strategy as per Porter?
A) Differentiation B) Price leadership
C) Cost leadership D) Cost focus

34. Pick out the one which is not an advantage of outsourcing from the following:
A) Better bargaining B) Self sufficiency
C) Flexibility D) Savings in investment

35. Where exactly we want to place our business pertains to:
A) Our mission B) Our policy
C) Our vision D) Our tactics

36. Merging with a raw material supplier is an example of:
A) Horizontal diversification
B) Vertical diversification
C) Conglomerate diversification
D) Capacity expansion

37. During what stage of strategic management, a firm’s specific internal strengths and weaknesses are determined?
A) Formulation B) Implementation
C) Evaluation D) Feedback

38. Effective strategic planning involves alignment of a firm’s internal competencies with:
A) Managerial skills B) External environment
C) Communication networks D) Critical success factors

39. A discrete element of organization which is treated separately for strategic management purposes is known as:
A) Project B) SBU
C) Division D) Department

40. Identify a constituent of legal environment from the following:
A) Resource constraints B) Import restriction
C) Logistics bottlenecks D) Employee turnover

41. The authoritarian leadership style supports:
A) Theory X B) Theory Y
C) Theory Z D) Theory of Laissez fare

42. Decentralisation of higher order results in:
A) Small organization
B) Multiple decision levels
C) Vertical organization structures
D) Delay in decision making

43. Which one of the following is the last link in the communication process in an
A) Decoding B) Encoding
C) Selection of channel D) Feed back

44. According to Herzberg’s two factor theory, which one of the following is treated
as a hygiene factor?
A) Recognition B) Promotion
C) Interpersonal relations D) Achievement

45. Pick from the following, one which is not an advantage of MBO:
A) Flexibility B) Clarity in tasks
C) Facilitating smooth change D) Clarity in individual roles

46. The process of adding higher responsibility with an existing job position to make
the job more challenging or demanding is:
A) Job design B) Job enlargement
C) Job enrichment D) Job specification

47. Which one of the following is not an example of downward communication?
A) Promotion orders
B) Transfer policy
C) Performance appraisal report
D) Break down summary

48. Which one of the following selection method is most suitable to assess the temperament possessed by a candidate?
A) Intelligence test B) Psychological test
C) Skill test D) Knowledge test

49. An interpersonal conflict resolution approach guided by lower level assertiveness
with higher order cooperativeness is:
A) Forcing B) Accommodating
C) Avoiding D) Manipulating

50. The process involved in monitoring the subordinate level performance, comparing
with set targets and suggesting rectification is popularly known as:
A) Organising B) Directing
C) Controlling D) Co-ordinating

51. Zero Base Budget prepared every year falls under:
A) Standing plan B) Single use plan
C) Flexible plan D) Contingency plan

52. The principle of Henry Fayol which insists that every subordinate should report to
only one superior is:
A) Unity of direction B) Espirit-de-corpse
C) Unity of command D) Scalar chain

53. Composition of various sources of capital in the total capital of a firm is popularly
known as:
A) Capitalisation decision B) Capital structure decision
C) Dividend decision D) Retention decision

54. Time required to recover the initial cash outlay of a project is:
A) Gestation period B) Economic life
C) Payback period D) Project life cycle

55. If net profit after tax is Rs. 3,00,000, retention ratio is 40 % and number of equity
shares outstanding is 1,00,000, what is EPS?
A) Rs. 3 B) Rs. 1.80
C) Rs. 1.50 D) Rs. 1.20

56. While managing working capital, an important principle to be kept in mind is that
liquidity varies inversely with;
A) Risk B) Investment in current assets
C) Profitability D) Cash in hand

57. Current ratio is 3, liquid ratio is 2 and current liabilities are Rs.12,000. What is the value of inventory?
A) Rs.8,000 B) Rs.12,000 C) Rs.16,000 D) Rs.24,000

58. The proportion of equity in the capital structure is ¼ and that of debt is Rs. ¾. It’s cost of equity is 12 % and after tax cost debt is 8 %, what is WACC?
A) 6 % B) 7 % C) 8 % D) 9 %

59. Pick the one which is not an assumption of MM approach to capital structure:
A) Market is imperfect
B) There exists no corporate taxes
C) Money can be borrowed at risk free rates
D) No floatation costs exist

60. If the risk and return associated with an asset is borne by lessee during the entire economic life, it is the case of:
A) Outright purchase B) Sale and lease back
C) Operating lease D) Financial lease

61. Loss of bad debts reverts back to the client in the case of:
A) Reverse factoring B) Recourse factoring
C) Direct factoring D) Non-recourse factoring

62. A transaction where financial securities are issued against a pool of assets is called:
A) Securitisation B) Credit Default Swaps
C) Credit Linked Notes D) Total Return Swaps

63. A firm’s earnings before interest is Rs. 2,40,000 and its interest burden is Rs.80,000 p.a.What is the degree of financial leverage?
A) 2 B) 1.5 C) 1 D) 0.5

64. Which one of the following sources of capital doesn’t involve floatation cost?
A) Retained earnings B) Equity capital
C) Preference capital D) Debentures

65. Revenue is required to be recognized at the point of sale. Name the accounting principle followed above:
A) Matching B) Revenue recognition
C) Cost D) Going concern

66. Which International Accounting Standard deals with the preparation of cash flow
A) IAS 1 B) IAS 3 C) IAS 7 D) IAS 9

67. Closing entries are recorded in:
A) Ledger B) Profit and loss a/c
C) Balance sheet D) Journal proper

68. Sinu’s capital as on 1.1.2014 was Rs. 50,000, interest on drawings Rs. 5,000,interest on capital Rs. 8,000, drawings Rs. 15,000 and profit for the year 2014 is Rs. 8,000. What is his capital balance as on 31.12.2014?
A) Rs. 55,000 B) Rs. 46,000
C) Rs. 64,000 D) Rs. 72,000

69. Copyrights are:
A) Tangible assets B) Fictitious assets
C) Intangible assets D) Floating assets

70. The balance of Income and Expenditure account is:
A) Closing cash balance
B) Profit or loss
C) Closing capital balance
D) Surplus or deficit

71. If original cost of an asset bought on 1.4.2013 is Rs. 3, 00,000 and is subject to depreciation @ 15 % on WDV basis, what will be the WDV of the asset as on 31.3.2015?
A) Rs. 2,16,750 B) Rs. 2,85,000
C) Rs. 2,55,000 D) Rs. 2,45,000

72. For a liability which can be determined with substantial accuracy:
A) A reserve should be created
B) A provision should be created
C) An absolute liability should be created
D) An appropriation of profit should be made