Kerala-SET-2023

1. “Knowing exactly what you want men to do and then see in that they do it in the best
and cheapest way” This statement is very well associated with
A) Administrative Management B) Scientific Management
C) Modern Management D) Bureaucracy
2. The concept of ethics and social responsibility to the scientific study of management
was first propounded by
A) Max Weber B) Oliver Sheldon
C) Henry Fayol D) F.W. Taylor
3. Hawthorne Experiments leads to
A) Scientific Management Approach
B) Bureaucratic Approach
C) Human relations approach of management
D) Social Systems Theory
4. Cybernetics is a crucial aspect of
A) System Approach of Modern organizational theory
B) Contingency Approach
C) Behavioural Approach
D) Line organization
5. The mathematical formula for determining span of control was contributed by
A) Keith Davis B) Lyndil F. Urwick
C) V.A. Graicunas D) Waino W. Soujanen
6. Identify the correct sequence of historical development of the discipline Organisational
Behaviour (OB)
A) Industrial Revolution – Human Relations Movement- Scientific Management-OB
B) Scientific Management- Industrial Revolution- Human Relations Movement-OB
C) Industrial Revolution- Scientific Management- Human Relations Movement-OB
D) None of the above
7. Each person is ——–by their personality
A) Specific B) Unique C) Intellectual D) Genuine
8. MBTI means
A) Myres-Briggs Test Indicator
B) Myres-Briggs Test Investigator
C) Myres-Briggs Type Investigator
D) Myres-Briggs Type Indicator
9. Marketing strategy is mainly a —— strategy
A) Business B) Corporate C) Functional D) Growth

10. Cash Cows in BCG matrix can well be explained by
A) High growth rate with relatively high market share
B) High growth rate with low relative market share
C) Low growth rate with high relative market share
D) Low growth rate with low relative market share
11. The beginning point of strategic intent is
A) Mission B) Vision C) Goals D) Objectives
12. Which of the following is not a Competitive force as per Porters Five Competitive Forces?
A) Threat of new entrants
B) Threat of Substitutes
C) Threat of technological advancements
D) Bargaining power of suppliers
13. The first Industrial Policy Resolution was passed in the year
A) 1938 B) 1948 C) 1956 D) 1964
14. The elements of business ethics are
A) Attitude, Pressure, and Environment
B) Values, Rights and Duties
C) Values, Environment and Attitude
D) Rights, Attitude and Environment
15. Fiscal Policy is also called:
A) Industrial Policy B) Monitory Policy
C) Budgetary Policy D) Corporate Policy
16. Dual Economy is characterized by:
A) Bilateral trades
B) Both import and export activities
C) Traditional and Modern aspects existed in the economy
D) None of the above
17. As per the World Bank classification of countries, India is classified under
A) Low income economies
B) Lower-Middle income economies
C) Upper-Middle income economies
D) High income economies
18. Disposable Personal Income is
A) National Income + Transfer Payments
B) Personal Income – Taxes
C) Personal Income – Transfer Payments
D) None of these
19. Estimation of National Income is the responsibility of:
A) Finance Ministry
B) Reserve Bank of India
C) National Sample Survey Organisation
D) Central Statistical Organisation

20. The treaty that marked the establishment of European Union is:
A) Treaty of Lisbon B) Maastricht Treaty
C) Treaty of London D) Berlin treaty
21. The base year for computing national income is:
A) 2004-05 B) 2011-12 C) 1951-52 D) None of these
22. Who is the chairman of GST COUNCIL?
A) Prime Minister B) President of India
C) Union Commerce Minister D) Union Finance Minister
23. What does PPP initiative means?
A) Public Performance Project B) Public Private Partnership
C) Public Production Policy D) Private Partnership in Production
24. GDSS means
A) Group Dimensions Service System
B) Group Decision Secure System
C) Group Decision Support System
D) Group Discussion Service System
25. What is Prototype?
A) An iconic model of an existing system
B) A working model of an existing system
C) Symbolic model of a system
D) All of the above
26. BPR means
A) Business Programme Rescheduling
B) Business Process Reengineering
C) Business Plan Reengineering
D) None of these
27. The branch of accounting that generates statements for the use of external parties is
known as
A) Financial Accounting B) Cost Accounting
C) Management Accounting D) Forensic Accounting
28. Which statement is correct about double entry system of accounting?
A) Every business transactions brings in two financial changes in business
B) Financial changes are recorded as debits and credits in various accounts
C) Every debit entry has a corresponding credit entry
D) All of the above
29. Preliminary Expenses in the assets side of the balance sheet is a/an
A) Intangible Asset B) Fictitious Asset
C) Wasting Asset D) Current Asset
30. Discount for prompt payment of debt is known as
A) Trade Discount B) Cash Discount
C) Prompt payment discount D) Lump sum discount

31. Which of the following error affect the agreement of the Trial Balance?
A) Compensating Errors B) Errors of Principle
C) Errors of Complete omission D) Errors of Partial omission
32. In single entry system, credit sales can be ascertained by preparing
A) Creditors Account B) Debtors Account
C) Cash Book D) Statement of Affairs
33. The rate of Gross Profit on Sale is 20%; If Cost of production is `.50000/- what is
Gross Profit?
A) `10000/- B) `15000/- C) `12500/- D) `20000/-
34. What percentage of issued capital amount is minimum subscription?
A) 80 % B) 95% C) 90% D) 75%
35. Rebate on Bills discounted for banking companies is
A) An Asset
B) An Expense
C) Income received in Advance
D) Income Accrued
36. What is an intercompany holding?
A) Shares held by transferee company in transferor company
B) Shares held by transferor company in transferee company
C) Shares held by both companies in one another
D) All of these
37. Formation of a new company by liquidating an existing company is called
A) External Reconstruction B) Amalgamation
C) Merger D) Liquidation
38. What is IFRS 9?
A) Depreciation Accounting
B) Inventory valuation
C) Accounting for Financial Instruments
D) None of the above.
39. The statement of assets and liabilities prepared under single entry system is called
A) Statement of Affairs B) Financial statement
C) Balance Sheet D) Assets and Liabilities statement
40. Estimation is
A) Inductive inference B) Deductive inference
C) Objective inference D) Subjective inference
41. Type II error is the probability of
A) Accepting a true null hypothesis
B) Rejecting a true null hypothesis
C) Rejecting a false null hypothesis
D) Accepting a false null hypothesis

42. Which of the following is a Non-probability sampling method
A) Random Sampling B) Multi-stage sampling
C) Systematic Sampling D) Snowball sampling
43. A research done with the objective of finding cause and effect relationship between
dependent variable with independent variable is called
A) Exploratory Research B) Descriptive Research
C) Hypothesis testing research D) Action research
44. The ethical principle of non-malfeasance in research suggests that
A) Respect each participant as a person capable of making informed decision
B) Obligation on the part of the researcher to maximize the benefits of individual
participants
C) Equitable selection of participants
D) The proposed research project involving human participants should not cause
harm to them.
45. Extraneous variables are
A) Variables manipulated by the researcher and resulting effects are measured
B) Variables that depend on or are a consequence of other variables
C) Independent variables which are not a part of the study
D) Independent variable which can assume any value within a range
46. Factorial Designs are used
A) To manipulate the dependent variable
B) To identify the confounded relationships
C) The effect of more than one independent variable on the dependent variable is
to be measured
D) All of these
47. A Sample frame is
A) Population B) Source List
C) Sample Design D) Sampling Element
48. Which among the following is an alternate hypothesis for right tailed test?
A) µ = µ0 B) µ < µ0 C) µ > µ0 D) µ ≠ µ0
49. Level of Significance implies
A) Probability of accepting a false null hypothesis
B) Probability of accepting a true null hypothesis
C) Probability of rejecting a true null hypothesis
D) Probability of rejecting a false null hypothesis
50. Iconic models are
A) A set of symbols used to represent the decision variable of the problem
B) Based on intuitions and give solutions to the problems depending on
assumptions
C) Physical representation of items under study
D) None of the above

  1. A Dual problem in L.P.P means
    A) A problem with two known constraints
    B) A problem with two objective functions
    C) Transpose of a primal problem
    D) A problem stated in two different ways

52. Degeneracy in transportation problem means

A) Number of positive allocations = (m+n)-1

B) Number of positive allocations < (m+n)-1

C) Number of positive allocations >(m+n)-1

D) All of the above

  1. Total float =
    A) Free float- tail even slack B) Independent float-Head slack
    C) LST- EST D) EST-EFT
  1. The objective of profit maximization is considered as a
    A) Short-term concept
    B) Long-term concept
    C) Both long term and short term concept
    D) None of these
  2. The market price of equity shares is basically determined by
    A) The Securities and Exchange Board of India
    B) The Board of Directors of the Company
    C) The Stock Exchanges
    D) The individuals buying and selling the stock
  3. To increase the present value the discount rate should be
    A) Increased B) Decreased C) Constant D) None of these
  4. Mutually exclusive projects that are not subject to capital rationing can correctly been
    ranked using
    A) Internal Rate of Return B) Net Present Value
    C) Profitability Index D) Payback period
  5. Earnings Before Interest and Taxes (EBIT) is also known as
    A) Operating Profit B) Funds from Operations
    C) Earnings before taxes D) Net Income
  6. The Dividend Payout Ratio is
    A) Dividend per share divided by current price per share
    B) Dividend Yield plus capital gains yield
    C) Dividend per share divided by earnings per share
    D) Dividend per share divided by Book value of share
  7. In Inventory turnover ratio, which amount is taken as numerator
    A) Cost of Goods Sold B) Opening Stock
    C) Closing Stock D) Sales
  8. Bird in Hand argument is given by
    A) Walters Model B) Gordons Model C) M.M. Model D) Residuals Model
  1. The expected annual earnings of Sintex Ltd. is 4,00,000/- What will be the amount of capitalization of the company if the rate of return earned by similar types of companies is 15%? A)40,00,000 B) 60,00,000 C)26,66,667 D) `13,33,333
  2. MMs theory of capital structure is based on
    A) Arbitrage Process B) Speculation Process
    C) Hedging process D) None of these
  3. Pre-emptive rights are for
    A) Equity shareholders
    B) Preference shareholders
    C) Both equity as well as preference shareholders
    D) Directors of the company
  4. The aspect of marketing that deals with discouraging customers is known as
    A) Meta-marketing B) Demarketing
    C) Societal Marketing D) Niche Marketing
  5. Products for which customers have strong brand preference and are very fussy about
    them are called
    A) Convenience Products B) Shopping Products
    C) Specialty Products D) Unsought products
  6. The perception or image that customers have of the company and its products is called
    A) Positioning B) Targeting C) Branding D) None of these
  7. Cost of designing drawings for the manufacture of a product is
    A) Direct labour cost B) Indirect Labour cost
    C) Direct Expenses D) Indirect Expenses
  8. The breakeven point in unit is
    A) Fixed Cost/Variable cost
    B) Fixed Cost/ Selling Price per unit
    C) Fixed cost/ Contribution per unit
    D) Sales-fixed cost/ contribution per unit
  9. The process of assigning share of indirect costs to cost centres are known as
    A) Allocation B) Apportionment
    C) Joint Costing D) Service Costing
  10. The method of costing used for products produced under series of interconnected
    operations
    A) Job Costing B) Batch Costing
    C) Standard Costing D) Process Costing
  1. Sales = 600000; Markup = 20% on cost. What is the profit?
    A) 120000 B) 100000 C) 200000 D) 150000
  2. When ratios are calculated from the balance sheet of one year, it is called
    A) Short-term analysis B) Long-term analysis
    C) Vertical Analysis D) Horizontal Analysis
  3. The long-term solvency of the firm can be examined by using
    A) Liquidity Ratios B) Leverage Ratios
    C) Profitability Ratios D) Activity Ratios
  4. Calculate current liabilities, if current asset is Rs. 120000 and current ratio is three times
    A) 40000 B) 36000 C) 50000 D) 37500
  5. The proportion between fixed income bearing securities to non-fixed income bearing
    securities is referred to as
    A) Interest Coverage Ratio
    B) Ratio of Long term debt to Shareholders fund
    C) Fixed assets to Net worth Ratio
    D) Capital Gearing Ratio
  6. To calculate fund from operation, the depreciation on fixed assets should be
    A) Added back to current year profit
    B) Deducted from the current year profit
    C) Non financial item so not considered for calculating fund from operations
    D) None of these
  7. A schedule prepared by the budget controller showing the budgeting programmes and
    procedures is called
    A) Master Budget B) Budget manual
    C) Budget Key factor D) Budget period
  8. Reports submitted at periodical intervals using standardized forms covering routine
    activities
    A) External Reports B) Routine Reports
    C) Special Reports D) Interim Reports
  9. Which of the following are the assumptions of Marginal Costing Technique? 1)The elements of cost can be divided into fixed and variable components 2)Total fixed cost remains constant at all levels of output 3)Variable cost varies with the volume of output 4 )Selling price per unit remains unchanged at all levels of activity
    A) 1 & 2 only B) 2 & 3 only C) 1 & 4 only D) 1, 2, 3 & 4
  10. Positive motivation makes people willing to do their work in the best way they can
    and it improves their:
    A) Skill B) Performance C) Ability D) None of these
  1. The father of Three-Needs Theory is ————–
    A) Vroom B) McClelland
    C) Peter Drucker D) None of these
  2. The reason for diversification is:
    A) To reduce competition B) to increase organizational capabilities
    C) To get tax advantage D) to get quick entry into a business
  3. From the given steps in controlling, identify their correct sequence
    I. Measurement of performance. II. Comparison of actual and standard.
    III. Analysis of causes of deviation. IV. Actual performance.
    V. Corrective action plan
    A) I, II, IV, III, V B) IV, I, III, II, V
    C) II, III, IV, V, I D) IV, I, II, III, V
  4. Which of the following information processing systems gives the output in the form of
    summary reports that are useful to the managers?
    A) Management information system
    B) Office automation system
    C) Transaction processing system
    D) Executive support system.
  5. Which of the following refers to the flow of information among persons at different
    levels, who have no direct reporting relationships?
    A) Horizontal communication B) Diagonal communication
    C) Downward communication D) Forward communication.
  6. Match the following:
    a. Administrative Theory 1. Douglas McGregor
    b. Bureaucratic Theory 2. Henri Fayol
    c. Human Relations Theory 3. Max Weber
    d. X &Y Theory 4. Elton Mayo
    A) a-3, b-2, c-4, d-1 B) a-2, b-3, c-4, d-1
    C) a-4, b-3, c-1, d-2 D) a-1, b-4, c-2, d-3
  7. According to which of the following management approaches, does managerial
    practice depend on circumstances?
    A) Systems approach B) Contingency approach
    C) Mc Kinsey’s 7-S framework D) Empirical approach
  8. State whether the following two statements are TRUE or FALSE
    I. A closed system is perfectly deterministic and predictable.
    II. There is no exchange between the closed system and the external environment
    A) I and II are true B) I is true and II is false
    C) I is false and II is true D) I and II are false
  1. Which global economic institutions were established as a result of the Bretton Woods
    negotiations in 1944?
    A) The World Bank and the EU B) The World Bank and the IMF
    C) The EU and the IMF D) The WTO and the IMF
  2. A “green transport plan” is:
    A) An environmentally acceptable travel plan devised by a local authority for its area
    B) An internationally agreed strategy for reducing the impact of international
    transport activity on the global environment
    C) A plan devised by a company or organization to reduce the environmental
    impact of the transport demands generated by itself and its employees
    D) The government’s plan for a sustainable transport sector
  3. If the economy is operating at its full capacity or potential GDP, following a decline in
    business confidence which one of the following is most likely to occur?
    A) Investment is likely to fall and unemployment is likely to increase
    B) Investment and employment are likely to remain unchanged
    C) Firms are likely to increase their investment in new plant and machinery
    D) None of these
  4. ———— is the rate at which the central bank of a country lends money to commercial
    banks in the event of any shortfall of funds
    A) Discount rate B) Repo rate
    C) Reverse repo rate D) Market rate
  5. Which of the following would not help a firm to improve its competitive position?
    A) Building a strong brand
    B) Developing good relationships with its suppliers
    C) Gaining sole rights to the extraction of key raw materials
    D) Reducing the perceived value of its products while keeping their price at the
    previous level
  6. The concept that all costs which are applicable to the revenue of a period should be
    charged against that revenue to determine the net income is
    A) Matching concept
    B) Revenue recognition concept
    C) Money measurement concept
    D) Dual aspect concept
  7. From the following statements, which one is not applicable for a Balance sheet?
    A) It is a statement of assets and liabilities
    B) It is prepared to ascertain the financial position
    C) Balances of all types of accounts, personal, real and nominal, appear in it
    D) It is meant mainly for outside parties such as, creditors, shareholders etc.
  8. Specify which of the items given below is example for revenue expenditure
    A) Cost of overhauling and painting a second-hand truck newly purchased.
    B) Cost of white washing a cinema hall
    C) Amount spent on air conditioning the office of the General Manager.
    D) Amount spent as erection charges of a machinery purchased
  1. While preparing Final accounts, Royalty is included in
    A) Profit & Loss account B) Trading account
    C) Balance sheet D) None of these
  2. Making provision for bad debts is based on the convention of
    A) Consistency B) Conservatism C) Disclosure D) Materiality
  3. State whether the following two statements are TRUE or FALSE
    I. Goods withdrawn for personal use is debited to Purchases account
    II. Depreciation on machinery is credited to machinery account
    A) I and II are true B) I is true and II is false
    C) I is false and II is true D) I and II are false
  4. A company forfeited 1,000 shares of 10 each, issued at par and held by Mr. Babu, for non-payment of first & final call money of4 per share. The called-up value per share
    was 9. On forfeiture, the amount debited to share capital will be A)5,000 B) 4,000 C)10,000 D) `9,000
  5. Which technique is used in finding a solution for optimising a given objective such as
    profit maximisation, cost minimisation under certain constraints?
    A) Decision tree B) Simulation
    C) Waiting line D) Linear programming
  6. According to a survey, the probability that a family owns two cars of annual income
    greater than 12,50,000 is 0.45. Of the households surveyed 58% had incomes over 12,50,000 and 60% had two cars. What is the probability that a family has two cars
    and an income over `12,50,000 a year?
    A) 0.27 B) 0.261 C) 0.348 D) 0.18
  7. Which of the following is not a property of binomial distribution?
    A) n is fixed
    B) each trial has two outcomes
    C) Trials are independent
    D) probability of success varies from trial to trial
  8. In research studies, the review of relevant literature is done for knowing:
    A) What is already known about the topic
    B) What concepts and theories have been applied to the topic
    C) Who are the key contributors to the topic
    D) All of these
  9. The standard error is a statistical measure of:
    A) The normal distribution of scores around the sample mean
    B) The extent to which a sample mean is likely to differ from the population mean
    C) The clustering of scores at each end of a survey scale
    D) The degree to which a sample has been accurately stratified
  1. Which among the following statement(s) is / are true about a statistical test?
    I. Power of a test is a function of type-I error.
    II. When the sample size is very large, any test can be approximated by a Z-test.
    III. Type- II error is committed when we reject a true null hypothesis.
    A) Only I is true B) Only II is true
    C) I and III only are true D) All are true
  2. Liquid assets do not include
    A) Bank balance B) Marketable securities
    C) Short term investments D) Stock in trade
  3. State whether the following two statements are TRUE or FALSE
    I. Profit maximisation objective ensures that the firm utilizes its available
    resources most efficiently under conditions of competitive markets
    II. Wealth maximisation objective is consistent with the object of maximising
    owners’ economic welfare.
    A) I and II are true B) I is true and II is false
    C) I is false and II is true D) I and II are false
  4. Match the following:
    a. Sensitivity Analysis 1. Non-discounted cash flow
    b. Profitability Index 2. Discounting rate
    c. Accounting Rate of Return 3. Risk and uncertainty
    d. Cost of capital 4. Benefit cost method
    A) a-2, b-1, c-3, d-4 B) a-4, b-2, c-1, d-3
    C) a-3, b-4, c-1, d-2 D) a-3, b-4, c-2, d-1
  5. Identify which one of the following affects the dividend policy of a company
    A) Cost of external financing
    B) Liquidity position of the company
    C) Divisible profit of the company
    D) All of these
  6. Match the following:
    a. M.M Approach 1. Irrelevance of capital structure
    b. Walter’s Model 2. Irrelevance theory of dividend
    c. Net operating income theory 3. Relevance of capital structure
    d. Net income approach 4. Relevance theory of dividend
    A) a-2, b-4, c-1, d-3 B) a-4, b-1, c-2, d-3
    C) a-3, b-4, c-1, d-2 D) a-3, b-4, c-2, d-1
  7. Dividing a market into distinct groups of buyers on the basis of needs, characteristics
    or behaviour, who may require different products or marketing mixes, is known as:
    A) Market targeting B) Market positioning
    C) Market segmentation D) Product differentiation
  1. The financial ratio, Debt to equity, is a ratio that attempts to measure a firm’s
    A) Profitability B) Liquidity C) Solvency D) Reliability
  2. Match the following:
    a. P/V ratio 1. Not included in product cost
    b. Differential cost 2. Decision making
    c. Debenture interest 3. Profitability rate
    d. Angle of incidence 4. Considers costs by behavior
    A) a-2, b-4, c-1, d-3 B) a-4, b-2, c-1, d-3
    C) a-3, b-2, c-4, d-1 D) a-3, b-4, c-1, d-2
  3. Continuous stock taking is a part of:
    A) Annual stock taking B) Perpetual inventory
    C) ABC Analysis D) None of these
  4. Which of the following is not a direct expense?
    A) Hire charges of plant if used for a specific job.
    B) Cost of making a design or pattern for a specific job.
    C) Cost of power and fuel used in the factory
    D) Salesman’s commission based on value of units sold.
  5. Match the following:
    a. Contract costing 1. Motor car manufacturing
    b. Process costing 2. Repair shops
    c. Composite costing 3. Textile industry
    d. Job costing 4. Escalation clause
    A) a-4, b-2, c-1, d-3 B) a-4, b-3, c-1, d-2
    C) a-3, b-2, c-4, d-1 D) a-3, b-4, c-2, d-1
  6. If the sales increase from 50,000 to75,000 and profit increases by `5,000, the P/V
    ratio of the firm is ——–.
    A) 7% B) 10% C) 20% D) 25%
  7. State whether the following two equations are TRUE or FALSE
    I. Capital employed = Share Capital + Reserve and Surplus + Long-term Loans –
    Non-Operating Assets − Fictitious Assets
    II. Capital employed = Net fixed assets + working capital – Long-term loans
    A) I and II are true B) I is true and II is false
    C) I is false and II is true D) I and II are false
Qn.NoKeyQn.NoKeyQn.NoKeyQn.NoKeyQn.NoKeyQn.NoKey
1   B   21   B   41   D   61   B   81   B   101   D   
2   B   22   D   42   D   62   C   82   B   102   D   
3   C   23   B   43   C   63   A   83   B   103   B   
4   A   24   C   44   D   64   A   84   D   104   D   
5   C   25   B   45   C   65   B   85   A   105   D   
6   C   26   B   46   C   66   C   86   B   106   B   
7   B   27   A   47   B   67   A   87   B   107   B   
8   D   28   D   48   C   68   C   88   B   108   D   
9   C   29   B   49   C   69   C   89   A   109   A   
10   C   30   B   50   C   70   B   90   B   110   C   
11   B   31   D   51   C   71   D   91   C   111   D   
12   C   32   B   52   B   72   B   92   A   112   A   
13   B   33   C   53   C   73   C   93   B   113   C   
14   B   34   C   54   A   74   B   94   D   114   C   
15   C   35   C   55   D   75   A   95   A   115   A   
16   C   36   C   56   B   76   D   96   C   116   B   
17   B   37   A   57   B   77   A   97   B   117   C   
18   B   38   C   58   A   78   B   98   B   118   B   
19   D   39   A   59   C   79   B   99   B   119   C   
20   B   40   A   60   A   80   D   100   C   120   B  

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