|Management · June 2023

UGC NET Management June 2023 Question PaperPaper 1 & Paper 2 with Answer Key

The complete UGC NET June 2023 question paper for Management, covering Paper 1 (General Aptitude) and Paper 2 (Management). Every question below is shown with its options and the correct answer, and a detailed explanation you can unlock by signing in. All 148 questions are free to practise.

UGC NET June 2023 at a glance

ExamUGC NET June 2023
PapersPaper 1 (General Aptitude) and Paper 2 (Management)
Exam date(s)June 16, 2023
Shift(s)Shift 1
Paper 1 questions49 questions · 60 minutes · 100 marks
Paper 2 questions99 questions · 120 minutes · 200 marks
Total148 questions
Marking scheme+2 per correct answer · No negative marking
Paper 1

General Aptitude

UGC NET June 2023 · Management sitting

49 questions60 min100 marks
Practice Now
Paper 2

Management

UGC NET June 2023

99 questions120 min200 marks
Practice Now

Paper 1 — General Aptitude

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49 questions with the answer key and explanations.

  1. Question 1

    The number of female candidates who qualified from state B in 2021 is approximately ______ % of the male candidates who qualified from state A in 2022.

    Table 1 shows the percentage distribution of candidates who qualified in a competitive examination from six states A–F during 2021 and 2022, along with the ratio of male to female among them. Table 2 shows the total number of candidates who appeared and the percentage of candidates who qualified from all six states A–F in these two years.

    State2021 Qualified (%)2021 Male:Female2022 Qualified (%)2022 Male:Female
    A18%5:420%28:17
    B16%3:112%5:3
    C12%7:516%11:5
    D16%13:1115%15:11
    E25%13:1222%15:9
    F13%8:115%11:9
    YearTotal Appeared (A–F)Qualified (%) from A–F
    202114200045%
    202218000052%
    1. A16
    2. B22
    3. C20
    4. D18

    Answer: (B) 22

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  2. Question 2

    In 2022 for state A, if four female candidates who qualified are not eligible, then what is the average number of female candidates who qualified (and eligible) from all the six states together in the year 2022?

    Table 1 shows the percentage distribution of candidates who qualified in a competitive examination from six states A–F during 2021 and 2022, along with the ratio of male to female among them. Table 2 shows the total number of candidates who appeared and the percentage of candidates who qualified from all six states A–F in these two years.

    State2021 Qualified (%)2021 Male:Female2022 Qualified (%)2022 Male:Female
    A18%5:420%28:17
    B16%3:112%5:3
    C12%7:516%11:5
    D16%13:1115%15:11
    E25%13:1222%15:9
    F13%8:115%11:9
    YearTotal Appeared (A–F)Qualified (%) from A–F
    202114200045%
    202218000052%
    1. A5990
    2. B5900
    3. C5920
    4. D5940

    Answer: (A) 5990

    Explanation

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  3. Question 3

    What is the ratio of the number of female candidates who qualified from states A and C together in 2021 to number of male candidates who qualified from the same two states in the year 2022?

    Table 1 shows the percentage distribution of candidates who qualified in a competitive examination from six states A–F during 2021 and 2022, along with the ratio of male to female among them. Table 2 shows the total number of candidates who appeared and the percentage of candidates who qualified from all six states A–F in these two years.

    State2021 Qualified (%)2021 Male:Female2022 Qualified (%)2022 Male:Female
    A18%5:420%28:17
    B16%3:112%5:3
    C12%7:516%11:5
    D16%13:1115%15:11
    E25%13:1222%15:9
    F13%8:115%11:9
    YearTotal Appeared (A–F)Qualified (%) from A–F
    202114200045%
    202218000052%
    1. A8307:21844
    2. B8407:21944
    3. C8307:21944
    4. D8307:20894

    Answer: (C) 8307:21944

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  4. Question 4

    The number of male candidates who qualified from state E in 2022 is approximately ______ % more than the number of male candidates who qualified from state F in 2021.

    Table 1 shows the percentage distribution of candidates who qualified in a competitive examination from six states A–F during 2021 and 2022, along with the ratio of male to female among them. Table 2 shows the total number of candidates who appeared and the percentage of candidates who qualified from all six states A–F in these two years.

    State2021 Qualified (%)2021 Male:Female2022 Qualified (%)2022 Male:Female
    A18%5:420%28:17
    B16%3:112%5:3
    C12%7:516%11:5
    D16%13:1115%15:11
    E25%13:1222%15:9
    F13%8:115%11:9
    YearTotal Appeared (A–F)Qualified (%) from A–F
    202114200045%
    202218000052%
    1. A72
    2. B74
    3. C70
    4. D76

    Answer: (B) 74

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  5. Question 5

    In the year 2021, the number of female candidates who qualified is more than 5000 in exactly ______ states.

    Table 1 shows the percentage distribution of candidates who qualified in a competitive examination from six states A–F during 2021 and 2022, along with the ratio of male to female among them. Table 2 shows the total number of candidates who appeared and the percentage of candidates who qualified from all six states A–F in these two years.

    State2021 Qualified (%)2021 Male:Female2022 Qualified (%)2022 Male:Female
    A18%5:420%28:17
    B16%3:112%5:3
    C12%7:516%11:5
    D16%13:1115%15:11
    E25%13:1222%15:9
    F13%8:115%11:9
    YearTotal Appeared (A–F)Qualified (%) from A–F
    202114200045%
    202218000052%
    1. Afive
    2. Bfour
    3. Cthree
    4. Dtwo

    Answer: (D) two

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  6. Question 6

    In which method of collaborative learning the main purpose is to develop listening skills in the students?

    1. Acircle of voices
    2. Bproblem solving
    3. CFishbowl strategy
    4. DJigsaw strategy

    Answer: (C) Fishbowl strategy

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  7. Question 7

    Which of the following individual difference(s) may not affect learning?
    A. Cultural background
    B. Height
    C. Blood Group
    D. Age
    E. Complexion

    1. AA, D and E only
    2. BB, C and E only
    3. CB only
    4. DA, C and D only

    Answer: (B) B, C and E only

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  8. Question 8

    Which of the following are the characteristics of Mind mapping?
    A. Built around a central topic.
    B. Use of long sentences and paragraphs to explain the content.
    C. The branches of a particular topic form a connected nodal structure.
    D. Use of images and symbols to represent ideas.

    1. AA only
    2. BB and D only
    3. CA, C and D only
    4. DB and C only

    Answer: (C) A, C and D only

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  9. Question 9

    Match List I with List II.

    List-I (Channel No.)List-II (Channel)
    A. CH-04I. PRABANDHAN
    B. CH-05II. KAUTILYA
    C. CH-06III. SAARASWAT
    D. CH-07IV. VIDHIK

    SWAYAM PRABHA channel numbers and names

    1. AA-II, B-IV, C-I, D-III
    2. BA-IV, B-III, C-II, D-I
    3. CA-III, B-I, C-IV, D-II
    4. DA-I, B-II, C-IV, D-III

    Answer: (C) A-III, B-I, C-IV, D-II

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  10. Question 10

    Which of the following is a benefit of using rubrics for evaluation?

    1. AGreater ease of grading
    2. BIncreased consistency in grading
    3. CIncreased subjectivity
    4. DGreater test security

    Answer: (B) Increased consistency in grading

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  11. Question 11

    According to the UGC Regulations, 2018 on plagiarism similarity of 42% refers to which of the following levels of plagiarism?

    1. A0
    2. B1
    3. C2
    4. D3

    Answer: (C) 2

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  12. Question 12

    The question of whether a measure that is devised for a concept really does reflect the concept that it is supposed to be denoting, relates to:

    1. AMeasurement validity
    2. BEcological validity
    3. CInternal validity
    4. DExternal validity

    Answer: (A) Measurement validity

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  13. Question 13

    Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.

    Assertion (A): Surveys conducted over the internet have witnessed a huge growth since the late 1990s.
    Reason (R): Internet users always constitute an unbiased sample of the population.

    1. ABoth A and R are correct and R is the correct explanation of A
    2. BBoth A and R are correct but R is NOT the correct explanation of A
    3. CA is correct but R is not correct
    4. DA is not correct but R is correct

    Answer: (C) A is correct but R is not correct

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  14. Question 14

    Among the following types of sampling techniques, which one is also known as 'Judgemental' sampling?

    1. AQuota sampling
    2. BConvenience Sampling
    3. CCluster Sampling
    4. DPurposive Sampling

    Answer: (D) Purposive Sampling

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  15. Question 15

    Variations in time series data would be best represented by a:

    1. Aline chart
    2. Bpie chart
    3. Cbar chart
    4. Dscatter plot

    Answer: (A) line chart

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  16. Question 16

    The person who studies the symbiotic relationship between people and the media technologies which they create and use is identified as a:

    1. AMedia influencer
    2. BMedia sociologist
    3. CMedia anthropologist
    4. DMedia ecologist

    Answer: (D) Media ecologist

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  17. Question 17

    A political party broadcast is considered as:

    1. Aopen text
    2. Bclosed text
    3. CLengthy text
    4. DLiberal text

    Answer: (B) closed text

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  18. Question 18

    The Buddhist concept of interpersonal communications emphasizes:
    A. Flexible morality
    B. Total isolation
    C. Sensitive use of language
    D. Truthfulness
    E. Achievement of consensus

    1. AA, B, C Only
    2. BB, C, D Only
    3. CC, D, E Only
    4. DA, B, E Only

    Answer: (C) C, D, E Only

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  19. Question 19

    Given below are two statements:

    Statement I: The Hindu view of communications is based on the precept that reality is undivided.
    Statement II: According to the ancient Hindu view language is a means to acquire knowledge.

    1. ABoth Statement I and Statement II are true
    2. BBoth Statement I and Statement II are false
    3. CStatement I is true but Statement II is false
    4. DStatement I is false but Statement II is true

    Answer: (A) Both Statement I and Statement II are true

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  20. Question 20

    Match List I with List II.

    List-I (Scholars)List-II (Organization/Concept)
    A. BharathaI. Grammar
    B. BharthrahariII. Sadharanikaran
    C. BhattanayakaIII. Rasa theory
    D. PaniniIV. Speech theory

    Indian scholars matched with their communication/aesthetic concepts

    1. AA-I, B-II, C-III, D-IV
    2. BA-II, B-III, C-IV, D-I
    3. CA-III, B-IV, C-II, D-I
    4. DA-IV, B-I, C-III, D-II

    Answer: (C) A-III, B-IV, C-II, D-I

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  21. Question 21

    A person X can do a piece of work worth ₹3000 in 6 days; but he engages an assistant Y, and completes the work in 4 days. Find the share of the assistant Y in completing the work.

    1. A₹800
    2. B₹1000
    3. C₹1500
    4. D₹1200

    Answer: (B) ₹1000

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  22. Question 22

    What number would replace question mark (?) in the series given below? 1, 6, 14, 40, 108, 296, 808, ?

    1. A2208
    2. B1104
    3. C1212
    4. D1804

    Answer: (A) 2208

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  23. Question 23

    The house of a man is facing towards south. From the front door of the house, the man starts walking and after walking for 20 meters straight, he turns to his left and walks for 50 meters. After this the man turns to his right and walks for 80 meters and stops there. Find the distance from the point where the man stops to the front door of his house.

    1. A25√5 m
    2. B50√5 m
    3. C50 m
    4. D100 m

    Answer: (B) 50√5 m

    Explanation

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  24. Question 24

    In a certain coding language: (a) 'ON' is coded as 210; (b) 'OFF' is coded as 540. How 'SET' will be coded in that language?

    1. A1600
    2. B1850
    3. C1700
    4. D1900

    Answer: (D) 1900

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  25. Question 25

    Which of the following statements are contrary to each other?
    A. All movies are thrillers.
    B. Some movies are not thrillers.
    C. No movies are thrillers.
    D. Some movies are thrillers.

    1. AA and C Only
    2. BB and C Only
    3. CA and D Only
    4. DC and D Only

    Answer: (A) A and C Only

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  26. Question 26

    If the statement 'Some trucks are not polluting vehicles' is given as false then which of the following statements can be immediately inferred to be true?
    A. All trucks are non-polluting vehicles.
    B. All trucks are polluting vehicles.
    C. Some trucks are polluting vehicles.
    D. All polluting vehicles are trucks.

    1. AA and C Only
    2. BC and D Only
    3. CB, C and D Only
    4. DB and C Only

    Answer: (D) B and C Only

    Explanation

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  27. Question 27

    Which of the following statements is logically equivalent to the statement 'All philosophers are realists'?

    1. ANo philosopher is non-realist
    2. BNo realists are non-philosophers
    3. CNo non-philosopher are non-realists
    4. DNo non-realists are non-philosophers

    Answer: (A) No philosopher is non-realist

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  28. Question 28

    "I have listened to the parliament speech of the president of the country XYZ once, from that I must conclude that he is a lousy speaker." Which fallacy is committed in the above statement?

    1. ABegging the question
    2. BHasty Generalization
    3. CSlippery Slope
    4. DAd Hominem

    Answer: (B) Hasty Generalization

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  29. Question 29

    Given below are two statements:

    Statement I: Nyaya syllogism is only inductive and material.
    Statement II: The Aristotelian syllogism is only deductive and formal.

    1. ABoth Statement I and Statement II are true
    2. BBoth Statement I and Statement II are false
    3. CStatement I is true but Statement II is false
    4. DStatement I is false but Statement II is true

    Answer: (D) Statement I is false but Statement II is true

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  30. Question 30

    Which of the following is a benefit that businesses receive from using the Internet?

    1. AEasier use of satellite radio
    2. BFaster connection with suppliers
    3. CImproved methods of manufacturing
    4. DThe ability to call employees on the road.

    Answer: (B) Faster connection with suppliers

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  31. Question 31

    Consider the equation L + M = N, where L = (100011)₂ and N = (101000)₂. What is the value of M as represented in decimal format?

    1. A40
    2. B35
    3. C10
    4. D5

    Answer: (D) 5

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  32. Question 32

    A web page offers a link for users to request another web page. The requested web page contains HTML code and JavaScript code. In this context, identify the correct sequence of the following statements A-E.
    A. The requested web page is displayed on the client computer.
    B. The user clicks on the hyperlink and the web page is requested from the web server.
    C. The requested web page content is transmitted to the client computer.
    D. The client computer processes the JavaScript code using the web browser software.
    E. The web server locates the requested web page.

    1. AB, E, C, A, D
    2. BB, E, D, C, A
    3. CE, B, C, D, A
    4. DB, E, C, D, A

    Answer: (D) B, E, C, D, A

    Explanation

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  33. Question 33

    Given below are two statements:

    Statement I: Shareware is limited-functioning freeware, and normally expires after a week or month.
    Statement II: Shareware code can be modified and redistributed.

    1. ABoth Statement I and Statement II are true
    2. BBoth Statement I and Statement II are false
    3. CStatement I is true but Statement II is false
    4. DStatement I is false but Statement II is true

    Answer: (C) Statement I is true but Statement II is false

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  34. Question 34

    Which of the following should always be regarded as security risks to computer systems?
    A. Chat rooms
    B. Cookies
    C. Pharming
    D. Virus
    E. VoIP

    1. AA and D Only
    2. BC and D Only
    3. CB and D Only
    4. DA, D and E Only

    Answer: (B) C and D Only

    Explanation

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  35. Question 35

    When a water body gets enriched with nutrients, the process is called as:

    1. AOligotrophication
    2. BEutrophication
    3. CMesotrophication
    4. DDystrophication

    Answer: (B) Eutrophication

    Explanation

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  36. Question 36

    Which of the following statements are correct in respect of Green House Gases?
    A. They are generally of light green colour.
    B. They absorb thermal radiations emitted by earth.
    C. Water vapour is a green house gas.
    D. Green house gases cause global warming.
    E. Ammonia (NH₃) is a green house gas.

    1. AA, B, C, D Only
    2. BA, C, E Only
    3. CB, C, D Only
    4. DA, B, D, E Only

    Answer: (C) B, C, D Only

    Explanation

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  37. Question 37

    Which of the following air pollutants help in the formation of photochemical smog?

    1. ACarbon monoxide
    2. Bmethane
    3. COxides of Sulphur
    4. DOxides of nitrogen

    Answer: (D) Oxides of nitrogen

    Explanation

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  38. Question 38

    Through enrichment process, concentration of which uranium isotope is increased in the natural uranium?

    1. AU-234
    2. BU-235
    3. CU-238
    4. DU-239

    Answer: (B) U-235

    Explanation

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  39. Question 39

    Three 'Rs' used for the mitigation of solid wastes are:
    A. Recover
    B. Reduce
    C. Reuse
    D. Restrict
    E. Recycle

    1. AA, B, C Only
    2. BB, C, D Only
    3. CB, C, E Only
    4. DC, D, E Only

    Answer: (C) B, C, E Only

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  40. Question 40

    Which was the first education commission of independent India?

    1. ASargent commission
    2. BKothari commission
    3. CRadhakrishnan commission
    4. DMudaliar commission

    Answer: (C) Radhakrishnan commission

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  41. Question 41

    The National Education policy document of 1986 revised in 1992 suggested:

    1. AUse of multimedia for distance education
    2. BLinking degrees with jobs
    3. CAbolition of AICTE
    4. DFocus on research, only for degrees

    Answer: (A) Use of multimedia for distance education

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  42. Question 42

    The committee for the evolution of the new education policy recommended that no university in India should have more than ______ affiliated colleges.

    1. A50
    2. B60
    3. C75
    4. D100

    Answer: (D) 100

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  43. Question 43

    Which of the following universities have their locations in Bihar?
    A. Vallabhi
    B. Vikramshila
    C. Shridhanya katak
    D. Odantapuri

    1. AA and D Only
    2. BB and D Only
    3. CA and B Only
    4. DB and C Only

    Answer: (B) B and D Only

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  44. Question 44

    Which of the following universities were established in the year 1857?
    A. Calcutta University
    B. Bombay University
    C. Madras University
    D. Allahabad University

    1. AA, B and D Only
    2. BA, B and C Only
    3. CB, C and D Only
    4. DA, C and D Only

    Answer: (B) A, B and C Only

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  45. Question 45

    London became a city of 'great stinking fogs' as a result of:

    Few of Man's activities have zero environmental effect. For centuries, societies have suffered a wide variety of environmental damage, not least in terms of the air pollution that primitive, uncontrolled methods of combustion caused. People of Roman Britain, with fires in their huts, found the smoke a hazard to health and examination of human skulls shows a pitting that indicates a high frequency of sinusitis. The UK was the first country to widely experience massive industrial development based on coal. Between 1580 and 1680, imports of coal to London increased from 20,000 tonnes a year to 360,000 tonnes and London became a city of 'great stinking fogs'. These were only really to disappear some years after the episode in December 1952 when cold temperatures and moist air resulted in the condensation of moisture on particles in the air from coal combustion. Over a radius of 20 miles the resulting fog rendered the atmosphere opaque and it was found that in the week ending 13 December 1952 there had been an excess of 2851 over the usual weekly number of deaths. In response the Clean Air Acts of 1956 and 1968 dealt mainly with smoke in cities. Two decades after the smog disaster the Control of Pollution Act (1974) was brought in and systematically began the long haul towards comprehensive improvements in air quality as part of overall environmental protection. Similar experiences were encountered across Europe and North America during the 20th century.

    1. AHousehold fires
    2. BCold temperatures
    3. CCoal combustion
    4. DExcessive moisture in the air

    Answer: (C) Coal combustion

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  46. Question 46

    Between 1580 and 1680 imports of coal to London increased:

    Few of Man's activities have zero environmental effect. For centuries, societies have suffered a wide variety of environmental damage, not least in terms of the air pollution that primitive, uncontrolled methods of combustion caused. People of Roman Britain, with fires in their huts, found the smoke a hazard to health and examination of human skulls shows a pitting that indicates a high frequency of sinusitis. The UK was the first country to widely experience massive industrial development based on coal. Between 1580 and 1680, imports of coal to London increased from 20,000 tonnes a year to 360,000 tonnes and London became a city of 'great stinking fogs'. These were only really to disappear some years after the episode in December 1952 when cold temperatures and moist air resulted in the condensation of moisture on particles in the air from coal combustion. Over a radius of 20 miles the resulting fog rendered the atmosphere opaque and it was found that in the week ending 13 December 1952 there had been an excess of 2851 over the usual weekly number of deaths. In response the Clean Air Acts of 1956 and 1968 dealt mainly with smoke in cities. Two decades after the smog disaster the Control of Pollution Act (1974) was brought in and systematically began the long haul towards comprehensive improvements in air quality as part of overall environmental protection. Similar experiences were encountered across Europe and North America during the 20th century.

    1. AMarginally
    2. BInsignificantly
    3. CNegligibly
    4. DSubstantially

    Answer: (D) Substantially

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  47. Question 47

    The fog of London in the second week of December 1952:
    A. Reduced the number of deaths.
    B. Increased the number of deaths.
    C. Rendered the atmosphere over a radius of 20 miles smoke free.
    D. Rendered the atmosphere over a radius of 20 miles opaque.
    E. Did not make any difference to the air quality or to the number of deaths.

    Few of Man's activities have zero environmental effect. For centuries, societies have suffered a wide variety of environmental damage, not least in terms of the air pollution that primitive, uncontrolled methods of combustion caused. People of Roman Britain, with fires in their huts, found the smoke a hazard to health and examination of human skulls shows a pitting that indicates a high frequency of sinusitis. The UK was the first country to widely experience massive industrial development based on coal. Between 1580 and 1680, imports of coal to London increased from 20,000 tonnes a year to 360,000 tonnes and London became a city of 'great stinking fogs'. These were only really to disappear some years after the episode in December 1952 when cold temperatures and moist air resulted in the condensation of moisture on particles in the air from coal combustion. Over a radius of 20 miles the resulting fog rendered the atmosphere opaque and it was found that in the week ending 13 December 1952 there had been an excess of 2851 over the usual weekly number of deaths. In response the Clean Air Acts of 1956 and 1968 dealt mainly with smoke in cities. Two decades after the smog disaster the Control of Pollution Act (1974) was brought in and systematically began the long haul towards comprehensive improvements in air quality as part of overall environmental protection. Similar experiences were encountered across Europe and North America during the 20th century.

    1. AB, C and D Only
    2. BB and D Only
    3. CC, D and E Only
    4. DD and E Only

    Answer: (B) B and D Only

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  48. Question 48

    The Control of Pollution Act:
    A. Was brought in almost 20 years after the Clean Air Act of 1956
    B. Stopped all industrial activity.
    C. Aimed at improving air quality
    D. Focused mainly on dealing with smoke in cities
    E. Focused on environmental protection.

    Few of Man's activities have zero environmental effect. For centuries, societies have suffered a wide variety of environmental damage, not least in terms of the air pollution that primitive, uncontrolled methods of combustion caused. People of Roman Britain, with fires in their huts, found the smoke a hazard to health and examination of human skulls shows a pitting that indicates a high frequency of sinusitis. The UK was the first country to widely experience massive industrial development based on coal. Between 1580 and 1680, imports of coal to London increased from 20,000 tonnes a year to 360,000 tonnes and London became a city of 'great stinking fogs'. These were only really to disappear some years after the episode in December 1952 when cold temperatures and moist air resulted in the condensation of moisture on particles in the air from coal combustion. Over a radius of 20 miles the resulting fog rendered the atmosphere opaque and it was found that in the week ending 13 December 1952 there had been an excess of 2851 over the usual weekly number of deaths. In response the Clean Air Acts of 1956 and 1968 dealt mainly with smoke in cities. Two decades after the smog disaster the Control of Pollution Act (1974) was brought in and systematically began the long haul towards comprehensive improvements in air quality as part of overall environmental protection. Similar experiences were encountered across Europe and North America during the 20th century.

    1. AA and E Only
    2. BB, C and D Only
    3. CA, C and E Only
    4. DA, B, C and D Only

    Answer: (C) A, C and E Only

    Explanation

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  49. Question 49

    The passage highlights mainly:

    Few of Man's activities have zero environmental effect. For centuries, societies have suffered a wide variety of environmental damage, not least in terms of the air pollution that primitive, uncontrolled methods of combustion caused. People of Roman Britain, with fires in their huts, found the smoke a hazard to health and examination of human skulls shows a pitting that indicates a high frequency of sinusitis. The UK was the first country to widely experience massive industrial development based on coal. Between 1580 and 1680, imports of coal to London increased from 20,000 tonnes a year to 360,000 tonnes and London became a city of 'great stinking fogs'. These were only really to disappear some years after the episode in December 1952 when cold temperatures and moist air resulted in the condensation of moisture on particles in the air from coal combustion. Over a radius of 20 miles the resulting fog rendered the atmosphere opaque and it was found that in the week ending 13 December 1952 there had been an excess of 2851 over the usual weekly number of deaths. In response the Clean Air Acts of 1956 and 1968 dealt mainly with smoke in cities. Two decades after the smog disaster the Control of Pollution Act (1974) was brought in and systematically began the long haul towards comprehensive improvements in air quality as part of overall environmental protection. Similar experiences were encountered across Europe and North America during the 20th century.

    1. Athe association between vehicular pollution and development
    2. Bair pollution and human health
    3. Cthe industrial development of UK.
    4. Dthe similarities in development of UK, Europe and North America.

    Answer: (B) air pollution and human health

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Spotted a shift or questions missing from this paper?

Paper 2 — Management

Attempt this paper

99 questions with the answer key and explanations.

  1. Question 1

    Which one of the following is NOT a standard categorization of stress?

    1. AAcute stress
    2. BImported stress
    3. CChronic stress
    4. DEustress

    Answer: (B) Imported stress

    Explanation

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  2. Question 2

    Which of the following motives were articulated by J. M. Keynes for holding cash?
    a. Precautionary
    b. Return generation
    c. Speculative
    d. Investment
    e. Transaction
    Choose the correct answer from the options given below:

    1. Aa, b and c only
    2. Bb, d and e only
    3. Ca, c and e only
    4. Db, c and d only

    Answer: (C) a, c and e only

    Explanation

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  3. Question 3

    Hofstede's dimensions of culture were based on a study conducted at:

    1. AIntel Ltd.
    2. BIBM
    3. CPepsico
    4. DMicrosoft

    Answer: (B) IBM

    Explanation

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  4. Question 4

    Which of the following economic identities states that One (1) extra percent unemployment
    costs two (2) percent of the Gross Domestic Product (GDP)?

    1. ASacrifice ratio
    2. BPhillips curve
    3. CMisery index
    4. DOkun's law

    Answer: (D) Okun's law

    Explanation

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  5. Question 5

    Which of the statements are true of innovations?
    a. Innovations are a must to survive in business
    b. Discontinuous innovations lead to failures
    c. Continuous innovations do not disrupt established usage and behaviour patterns
    d. Line extensions are discontinuous innovations
    e. In discontinuous innovations, there is a change not only in technology but also in behavioural
    patterns of usage and consumption
    Choose the correct answer from the options given below:

    1. Aa, b, d and e only
    2. Bc, d and e only
    3. Cb, c and d only
    4. Da, c and e only

    Answer: (D) a, c and e only

    Explanation

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  6. Question 6

    Which of the following goods (commodities) have positive elasticities?
    a. Necessities

    b. Substitutes
    c. Luxury goods
    d. Complementary goods
    e. Inferior goods
    Choose the correct answer from the options given below:

    1. Aa, b and c only
    2. Bc, d and e only
    3. Ca, c and d only
    4. Db, c and e only

    Answer: (A) a, b and c only

    Explanation

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  7. Question 7

    Which of the following is NOT a characteristic of digital media?

    1. ADigital media is "pull" media
    2. BMass customization is possible in digital media
    3. CDigital media is lean-back media
    4. DDigital media is intense media

    Answer: (C) Digital media is lean-back media

    Explanation

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  8. Question 8

    Match List I with List II.

    List IList II
    a. Transcendingi. Uses latest knowledge and a wide variety of experiences
    b. Process-facilitatingii. Helps the system to confront reality
    c. Shock-absorbingiii. Takes an independent overall view
    d. Resource-sharingiv. Is perceptive of the reality in the organisation Choose the correct answer from the options given below:
    1. Aa - iii, b - ii, c - i, d - iv
    2. Ba – iv, b – iii, c – i, d - ii
    3. Ca – iii, b - iv, c – ii, d - i
    4. Da – iii, b – ii, c – iv, d - i

    Answer: (C) a – iii, b - iv, c – ii, d - i

    Explanation

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  9. Question 9

    Consumer buying behaviour in situations characterized by high involvement but few perceived
    differences among brands is known as

    1. AComplex buying behaviour
    2. BDissonance reducing buying behaviour
    3. CHabitual Buying behaviour
    4. DVariety seeking buying behaviour

    Answer: (B) Dissonance reducing buying behaviour

    Explanation

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  10. Question 10

    Which of the following statements are applicable to McKinsey's 7S framework?
    a. A priori, it is obvious which of the seven factors will be the driving force in changing a particular
    organisation at a particular point of time.
    b. Effective organisational change is the relationship between seven factors of the framework.
    c. Change in any one element effects change in other elements for effective organisational change.
    d. Framework can be used for facilitating organisational change.
    e. Strategy, Structure, Systems and Style are 'Hard S' of the Model while Staff, Skill and Shared
    values are the 'Soft S' of the framework.

    Choose the correct answer from the options given below:

    1. Aa, b and d only
    2. Bb, c and d only
    3. Ca, b, c and d only
    4. Da, b, c and e only

    Answer: (B) b, c and d only

    Explanation

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  11. Question 11

    Which of the following narratives explain the Leontief paradox in international business:

    1. AUSA's exports were capital intensive and imports were labour intensive
    2. BUSA's exports and imports both were capital intensive
    3. CUSA's exports were labour-intensive and imports were capital intensive
    4. DUSA's exports and imports both were labour-intensive

    Answer: (C) USA's exports were labour-intensive and imports were capital intensive

    Explanation

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  12. Question 12

    Which of the following is NOT an element of 'Trade-relations mix' in International Business?

    1. AProduct variety
    2. BPrice policy
    3. CMutual service and responsibilities
    4. DDistributor's territorial rights

    Answer: (A) Product variety

    Explanation

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  13. Question 13

    Arrange the following statements corresponding to different levels of Brand Dynamics
    Pyramid in a sequence starting with the base of the pyramid:
    a. Belief that the brand delivers acceptable product performance and is on the consumer's short-list
    b. Rational and emotional attachments to the brand to the exclusion of most other brands
    c. Active familiarity with the brand based on post trial, saliency or knowledge of the brand promise
    d. Relevance of brand to consumer's needs in the right price range or in the consideration set
    e. Belief that the brand has an emotional or rational advantage over other brands in the category
    Choose the correct answer from the options given below:

    1. Ac, d, a, e, b
    2. Bd, c, a, e, b
    3. Cd, c, a, b, e
    4. Dc, d, a, b, e

    Answer: (A) c, d, a, e, b

    Explanation

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  14. Question 14

    Population variance differ from sample variance in which of the following manner:
    a. μ ± 3σ is replaced by ̅x + 9σ2
    b. μ is replaced by ̅x
    μ2
    c. μ2 is replaced by (n−1)α
    d. N is replaced by n -1
    e. N is replaced by n - 1 - α
    Choose the correct answer from the options given below:

    1. Ab and d only
    2. Bc, d and e only
    3. Ca and e only
    4. Dd and e only

    Answer: (A) b and d only

    Explanation

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  15. Question 15

    Characteristics of industrial relations include:
    a. An outcome of employment relationships in an organisation
    b. Develop the skills and methods of adjusting to and cooperating with each other
    c. Create rules and regulations to maintain harmonious relations

    d. Government is not involved in shaping industrial relations
    e. Parties to industrial relations are employees, their organisations and employers
    Choose the correct answer from the options given below:

    1. AA, B, E only
    2. BA, B, C only
    3. CC, D, E only
    4. DA, B, C, E only

    Answer: (D) A, B, C, E only

    Explanation

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  16. Question 16

    Following are the statements on the Mintzberg’s organisational type. Choose the correct
    statements:
    a. Entrepreneurial organisations primarily focus on skills standardization
    b. Professional organisations primarily focus on output standardisation
    c. Innovative organisations primarily focus on mutual adjustment
    d. Missionary organisations primarily focus on norms standardisation
    e. Innovative organisations do not focus on mutual adjustment
    Choose the correct answer from the options given below:

    1. Aa, c, d and e only
    2. Ba, b, c and e only
    3. Cc and d only
    4. Da, b and e only

    Answer: (C) c and d only

    Explanation

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  17. Question 17

    Which of the following are included in the work place diversity?
    a. Ethnicity
    b. Career experience
    c. Gender
    d. Geographic experiences
    e. Sexual orientation
    Choose the correct answer from the options given below:

    1. AA, C only
    2. BA, C, E only
    3. CB, D, E only
    4. DA, B, C, D and E

    Answer: (B) A, C, E only

    Explanation

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  18. Question 18

    Arrange the following steps of job evaluation in the proper sequence:
    a. Review job descriptions and job specifications
    b. Select compensable factors
    c. Choose benchmark jobs
    d. Define each factor's degree
    e. Assign weights to compensable factors
    Choose the correct answer from the options given below:

    1. Aa, e, b, d, c
    2. Bc, b, e, d, a
    3. Ca, c, b, e, d
    4. Dc, b, e, a, d

    Answer: (B) c, b, e, d, a

    Explanation

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  19. Question 19

    Arrange the following types of intelligence which a computer can simulate in the ascending
    order:
    a. Visual-spatial

    b. Logical mathematical
    c. Linguistic
    d. Interpersonal
    e. Bodily kinesthetic
    Choose the correct answer from the options given below:

    1. Ac, d, a, e, b
    2. Bc, a, d, e, b
    3. Ca, c, e, b, d
    4. Da, c, b, e, d

    Answer: (A) c, d, a, e, b

    Explanation

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  20. Question 20

    Given below are two statements:
    Statement I: To exist and be successful in a competitive world a business has to be ethical.
    Statement II: An ethical organisation can be recognized on the basis of its corporate excellence
    and not on its relations with the stakeholders.
    In light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II arc incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement H is correct

    Answer: (C) Statement I is correct but Statement II is incorrect

    Explanation

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  21. Question 21

    Contrast to individual stocks, stability of Portfolio Risk (β) dramatically increases with:
    a. High return portfolios (𝑅𝑝 > 𝑅𝐹 )
    b. Larger portfolios (𝑛𝑝 > 50)
    c. Longer investment duration (𝑡𝑝 > 26 weeks)
    d. Increased trading volume
    e. High premium portfolios (𝑅𝑝 > 𝑅𝑝 )
    Choose the correct answer from the options given below:

    1. Aa, b and c only
    2. Bb, c and d only
    3. Cc, d and e only
    4. Da, d and e only

    Answer: (B) b, c and d only

    Explanation

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  22. Question 22

    Match List I with List II.

    List IList II
    a. Balanced Scorecardi. Barney
    b. Economic Value-added Analysisii. Howard J. Dresner
    c. VRJO frameworkiii. Stern Stewart & Company
    d. Business intelligenceiv. Robert S. Kaplan and David P. Norton Choose the correct answer front the options given below:
    1. Aa - iv, b, - i, c - iii, d - ii
    2. Ba - iv, b - iii, c - i, d - ii
    3. Ca - iii, b - iv, c - i, d - ii
    4. Da - iv, b - iii, c - ii, d - i

    Answer: (B) a - iv, b - iii, c - i, d - ii

    Explanation

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  23. Question 23

    Which of the following is a measure of appropriateness of organizational goals and how well
    these goals are being met?

    1. AOrganizational transparency
    2. BOrganizational citizenship
    3. COrganizational effectiveness
    4. DOrganizational efficiency

    Answer: (C) Organizational effectiveness

    Explanation

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  24. Question 24

    Which of the following is a post-offer takeover defense mechanism in which target company
    buys back shares at a significant premium?

    1. APoison pills
    2. BGolden parachute
    3. CGreenmail
    4. DCrown jewel defense

    Answer: (C) Greenmail

    Explanation

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  25. Question 25

    If the Net Present Value (NPV) of an investment proposal is positive, what conclusions can be
    drawn?
    a. The investment generated present value of cashflows exceed cost of investment
    b. The discount rate used is less than the investment's estimated return
    c. The discount rate used equals the minimum return required by the investors
    d. The investment generated present value of cashflows equals the cost of investment
    e. The investment's Internal Rate of Return (IRR) exceeds the Cost of Capital
    Choose the correct answer from the options given below:

    1. Aa, b and c only
    2. Bc, d and e only
    3. Cb, c and d only
    4. Da, b and e only

    Answer: (D) a, b and e only

    Explanation

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  26. Question 26

    The major problems faced by rural entrepreneurs are:
    a. Rate of interest charged by commercial banks is too high
    b. Inability to market their products and services
    c. Lack of comprehensive training on required skills
    d. Inability to handle cultural issues
    e. Difficulty in opening bank accounts due to lack of documents
    Choose the correct answer from the options given below:

    1. Aa and b only
    2. Ba, d and e only
    3. Cb and c only
    4. Dc, d and e only

    Answer: (C) b and c only

    Explanation

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  27. Question 27

    Given below are two statements, one is labelled as Assertion A and the other is labelled as
    Reason R:
    Assertion (A): A stereotyped and male-centered vision discourages some women from
    participating in business activities that could have a consequence on people who interact with
    women at the conununity level.
    Reason (R): Attributions of the society and the different socialisation processes relating to men
    and women may create obstacles for women due to unequal distribution of assets and services.

    In light of the above statements, choose the correct answer from the options given below:

    1. ABoth A and R are true and R is the correct explanation of A
    2. BBoth A and R are true but R is NOT the correct explanation of A
    3. CA is true but R is false
    4. DA is false but R is true

    Answer: (B) Both A and R are true but R is NOT the correct explanation of A

    Explanation

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  28. Question 28

    Match List I with List II.

    List IList II
    a. Macro-appliedi. Organisation development
    b. Micro-appliedii. Organisational behaviour
    c. Macro-theoreticaliii. Human Resource Management
    d. Micro-theoreticaliv. Organisation Theory Choose the correct answer from the options given below:
    1. Aa - ii, b -iii, c -iv, d - i
    2. Ba - i, b - iii, c- iv, d - ii
    3. Ca - i, b - iv, c- iii, d - ii
    4. Da - iii, b - ii, c - i, d - iv

    Answer: (B) a - i, b - iii, c- iv, d - ii

    Explanation

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  29. Question 29

    Which of the following models identifies the strategy development process, the value creation
    process, multi-channel integration process, performance assessment process and the information
    management process as its core processes?

    1. AThe IDIC Model
    2. BThe CRM value chain
    3. CPayne & Frow's Model of CRM
    4. DThe SCHEMA Model

    Answer: (C) Payne & Frow's Model of CRM

    Explanation

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  30. Question 30

    Which of the following statements explains the Integrated Marketing Communication (IMC)
    concept?
    a. IMC is the specific blend of promotion tools to communicate customer value and build customer
    relationships
    b. IMC calls for recognising only those touch points where the customer physically encounters the
    company and its brands
    c. IMC's goal is to deliver a consistent and clear message about the organisation and its products
    d. IMC ties together all of the company's messages and images
    e. IMC calls for integration and coordination of the company's many communication channels
    Choose the correct answer from the options given below:

    1. Aa and c only
    2. Ba, b and d only
    3. Cc, d and e only
    4. Da, b and e only

    Answer: (C) c, d and e only

    Explanation

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  31. Question 31

    Arrange (in descending order) the following present value of a growing perpetuity which
    makes first payment of Rs. 3,000 in next year.

    a. Present value at 8% growth and 10% discount rate.
    b. Present value at 3% growth and 9% discount rate.
    c. Present value at 6% growth and 11% discount rate.
    d. Present value at 5% growth and 6% discount rate.
    e. Present value at 1% growth and 4% discount rate.
    Choose the correct answer from the options given below:

    1. Aa, d, c, b, e
    2. Bc, b, e, d, a
    3. Cd, a, e, c, b
    4. Db, e, c, a, d

    Answer: (C) d, a, e, c, b

    Explanation

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  32. Question 32

    An organisational vision should include:
    a. An organisational charter of core values and principles
    b. A strategy or plan and a view from the top
    c. The source of priorities, plans and goals
    d. A pusher into the future
    e. A determination and publication of what makes an organisation unique
    Choose the correct answer from the options given below:

    1. Ab, c and d only
    2. Ba, c and d only
    3. Ca, c and e only
    4. Da, d and e only

    Answer: (C) a, c and e only

    Explanation

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  33. Question 33

    In competitive markets, a new firm will enter the market in which of the following situations?

    1. AP >ATC
    2. BP <ATC
    3. CP = MC
    4. DP = MR = MC

    Answer: (A) P >ATC

    Explanation

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  34. Question 34

    A workman hired in place of a permanent workman or probationer who is temporarily absent
    is called:

    1. ATemporary workman
    2. BCasual workman
    3. CProbationer workman
    4. DBadli workman

    Answer: (D) Badli workman

    Explanation

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  35. Question 35

    In which method of capital budgeting, cash flows are re-invested at the required rate of return?

    1. ANet Present Value (NPV)
    2. BInternal Rate of Return (IRR)
    3. CProfitability Index (PI)
    4. DAccounting Rate of Return (ARR)

    Answer: (A) Net Present Value (NPV)

    Explanation

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  36. Question 36

    Employees' belief in the degree to which they affect their work environment, their competence,
    the meaningfulness of their job and perceived autonomy in their work is known as:

    1. AJob involvement
    2. BJob satisfaction
    3. CPsychological empowerment
    4. DOrganizational commitment

    Answer: (C) Psychological empowerment

    Explanation

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  37. Question 37

    According to the HRD score card developed by TVRLS India, HRD Systems Maturity Score
    includes:
    a. HR Information System
    b. Potential Appraisal and Development
    c. Job-rotation
    d. Performance Management Systems
    e. Feedback and Coaching Mechanisms
    Choose the correct answer from the options given below:

    1. Aa, b, d, e only
    2. Ba, d only
    3. Cb, c, e only
    4. Da, b, c, d and e

    Answer: (D) a, b, c, d and e

    Explanation

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  38. Question 38

    The sequence of steps involved in testing a hypotheses are:
    a. Select a suitable test statistic
    b. Establish critical or rejection region
    c. State the null and alternative hypothesis
    d. State the level of significance (α)
    e. Formulate a decision rule to evaluate the null hypothesis

    1. Ae, c, d, a, b
    2. Bc, d, b, a, e
    3. Ca, b, e, c, d
    4. Db, c, a, e, d

    Answer: (B) c, d, b, a, e

    Explanation

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  39. Question 39

    Artificial Intelligence has simulation potential of the following kinds of intelligence:
    a. Visual-spatial
    b. Intrapersonal
    c. Interpersonal
    d. Creative
    e. Logical-mathematical
    Choose the correct answer from the options given below:

    1. Aa and e only
    2. Ba, c and e only
    3. Cb, c, d and e only
    4. Da and b only

    Answer: (B) a, c and e only

    Explanation

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  40. Question 40

    Lowering of costs that a firm often experiences when it produces two or more products together
    than each alone is known as:

    1. AEconomies of scale
    2. BEconomies of Scope
    3. CEconomies of Specialisation
    4. DTechnical Efficiency

    Answer: (B) Economies of Scope

    Explanation

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  41. Question 41

    Many consumers seek to be different and exclusive by demanding less of a commodity as more
    people consume it, is called?

    1. ABandwagon effect
    2. BSnob effect
    3. CVeblen effect
    4. DSubstitution effect

    Answer: (B) Snob effect

    Explanation

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  42. Question 42

    Match List I with List II.

    List IList II
    a. Angel investingi. Growth and Development stage
    b. Sweat equityii. Follow-on finding stage
    c. Venture capitaliii. Mature stage iv Start-up stage Choose the correct answer from the options given below:
    d. Initial Public Offer (IPO).
    1. Aa - iii, b iv, c - i, d - ii
    2. Ba - iv, b - iii, c - ii, d - i
    3. Ca - i, b - ii, c - iii, d - iv
    4. Da - ii, b - iii, c - i, d - iv

    Answer: (B) a - iv, b - iii, c - ii, d - i

    Explanation

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  43. Question 43

    Which of the following focus of OD interventions are relevant if the nature of intervention is
    unstructured?
    a. Role negotiation
    b. Development of internal facilitators
    c. Counselling
    d. Work review
    e. Team development
    Choose the correct answer from the options given below:

    1. Aa, c only
    2. Bb, c, e only
    3. Cb, c, d only
    4. Da, d, e only

    Answer: (B) b, c, e only

    Explanation

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  44. Question 44

    Which of the following prevent the majority of managers from effective implementation and
    sustainability?
    a. Hollow talk
    b. Debilitating fear
    c. Complex measurement systems
    d. Mindless reliance
    e. Constructive internal competition
    Choose the correct answer from the options given below:

    1. Ab, c only
    2. Ba, b, d only
    3. Ca, b, c, d only
    4. Dc, d, e only

    Answer: (B) a, b, d only

    Explanation

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  45. Question 45

    Which of the following should not be included in the balance of payments account?

    1. ABonus shares to equity shareholders
    2. BImports of automobile parts
    3. CDividend payment to home-country investors from a foreign subsidiary
    4. DInterest payment on loan to the IMF

    Answer: (A) Bonus shares to equity shareholders

    Explanation

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  46. Question 46

    Arrange the following steps of organization planning in the proper sequence:
    a. Develop of the organization a culture that promotes growth and implement a documented
    promotion policy.
    b. We are committed to achieve financial growth of our organization by fostering growth and
    creativity among our valued employees.
    c. To foster growth and creativity.
    d. Provide opportunities for growth of employees.
    e. To achieve excellence in human resource management and foster growth and creativity.
    Choose the correct answer from the options given below:

    1. Ab, c, e, d, a
    2. Be, b, a, c, d
    3. Ce, b, d, c, a
    4. Db, e, c, d, a

    Answer: (D) b, e, c, d, a

    Explanation

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  47. Question 47

    Entrepreneurs in general are _______ obsessed and _______ balanced?

    1. AOpportunity, Leadership
    2. BInnovation, Risk
    3. CCreativity, Innovations
    4. DProfit, Creativity

    Answer: (A) Opportunity, Leadership

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  48. Question 48

    Cash flows are grouped in the of Cash Flow statement as per IND AS - 3 into which of the
    following major categories?

    1. ACash receipts, cash disbursements and non-cash activities
    2. BDirect cash flows and indirect cash flows
    3. COperating activities, investing activities and collection activities
    4. DOperating activities, investing activities and financing activities

    Answer: (D) Operating activities, investing activities and financing activities

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  49. Question 49

    Which of the following is NOT a base of product related segmentation?

    1. AConsumption of the product
    2. BLoyalty for the product
    3. CDecision criteria for product evaluation
    4. DProduct use situations

    Answer: (C) Decision criteria for product evaluation

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  50. Question 50

    Match List I with List II.

    List IList II
    a. Grouping of productsi. Delphi Method
    b. Allocation of job tasksii. Transportation Model
    c. Evaluating facility locationiii. Aggregate Planning
    d. Demand forecastingiv. Assignment Model Choose the correct answer from the options given below:
    1. Aa - iv, b - i, c - ii, d - iii
    2. Ba - i, b - ii, c - iv, d - iii
    3. Ca - iii, b - iv, c- ii, d - i
    4. Da - ii, b - iii, c - i, d - iv

    Answer: (C) a - iii, b - iv, c- ii, d - i

    Explanation

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  51. Question 51

    Match List I with List II.

    List IList II
    a. Operating Profiti. Actual sales volume - Breakeven sales volume
    b. Profit-Volume Ratioii. Sales Revenue - Total variable costs
    c. Margin of safetyiii. (Sales × P/V ratio) - Fixed Cost
    d. Contribution marginiv. (Unit sale price- Variable costs per unit)/ Unit sale price Choose the correct answer nom the options given below:
    1. Aa - ii, b - i, c - iv, d - iii
    2. Ba - iii, b - iv, c - i, d - ii
    3. Ca - iii, b - i, c - ii, d - iv
    4. Da - iv, b - iii, c - ii, d - i

    Answer: (B) a - iii, b - iv, c - i, d - ii

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  52. Question 52

    Arrange the following causes of work stoppages in India in the ascending order:
    a. Retrenchment of personnel
    b. Bonus
    c. Leave and hours of work
    d. Wages and allowances
    e. Indiscipline and violence
    Choose the correct answer from the options given below:

    1. Ac, b, e, a, d
    2. Be, c, a, b, d
    3. Cd, b, c, e, a
    4. Dc, a, e, b, d

    Answer: (A) c, b, e, a, d

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  53. Question 53

    Which of the following is NOT a fundamental principle of KAIZEN?

    1. ALet it go
    2. BEmpower people
    3. CKnow your customer
    4. DGo to Gemba

    Answer: (A) Let it go

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  54. Question 54

    Which one of the following is NOT a justification for preferring ethnocentric approach to
    staffing?

    1. AHiring host country nationals eliminates language barriers
    2. BPerceived lack of qualified host country nationals
    3. CUnited corporate culture can be maintained
    4. DGood communication, coordination and control links with headquarters

    Answer: (A) Hiring host country nationals eliminates language barriers

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  55. Question 55

    A flexible organisation design which can form and re-form varied patterns of connection, is
    known as :

    1. AVirtual Organisation
    2. BFishnet Organisation
    3. CLearning Organisation
    4. DSpaghetti Organisation

    Answer: (B) Fishnet Organisation

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  56. Question 56

    Which concept states that profit are normally recognized when the title to the goods passes to
    the customer, not necessarily when money changes hands?

    1. AMatching Concept
    2. BRealisation Concept
    3. CPrudence Concept
    4. DMateriality Concept

    Answer: (B) Realisation Concept

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  57. Question 57

    In order to shorten its operating cycle, a manufacturing company focuses on which of the
    following decisions?
    a. Reducing operating expenses
    b. Enhanced coordination of firm activities
    c. Manufacturing automation
    d. Longer production schedule
    e. Tightening credit policy
    Choose the correct answer from the options given below:

    1. Aa, b and d only
    2. Bc, d and e only
    3. Cb and d only
    4. Db, c and e only

    Answer: (D) b, c and e only

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  58. Question 58

    Why do companies pursue a retrenchment strategy?
    a. Better opportunities in the environment are perceived elsewhere.
    b. Its main strategic decisions focus on the conscious use of reversal grand strategies.
    c. The environment is seen so threatening that internal strengths are insufficient to meet the
    challenge.
    d. Its easier and comfortable to pursue retrenchment strategy.
    e. The firm is not doing well or perceives itself as doing poorly.
    Choose the correct answer from the options given below:

    1. Aa, b and c only
    2. Ba, c and e only
    3. Cc, d and e only
    4. Db, d and e only

    Answer: (B) a, c and e only

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  59. Question 59

    An unfavourable overhead volume variance indicates that:

    1. ATotal fixed overhead has exceeded the standard budgeted amount
    2. BVariable overhead per unit has exceeded the standard budgeted amount
    3. CActual production was less than the normal level of output
    4. DActual production was more than the normal level of output

    Answer: (C) Actual production was less than the normal level of output

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  60. Question 60

    Deviation from market portfolio, a point on the Capital Market Line (CML) that differentiates
    investors' investing and financing decisions (based on their risk appetite) is describe by:

    1. AConvergence theorem
    2. BSeparation theorem
    3. CEfficient market theorem
    4. DArbitrage pricing theorem

    Answer: (B) Separation theorem

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  61. Question 61

    Which one of the following statements is true for Type II error?

    1. ARejecting an incorrect hypothesis
    2. BAccepting an incorrect hypothesis
    3. CAccepting a correct hypothesis
    4. DRejecting a correct hypothesis

    Answer: (B) Accepting an incorrect hypothesis

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  62. Question 62

    Which of the following outcomes will promote sustainable capitalism?
    a. Job creation, wealth generation and equitable income distribution
    b. Do good and make profit (Shubh Labh)
    c. Digital transformation and increased corporate profiteering
    d. Ethical wealth creation and resource allocation
    e. Emergence of monolithic and oligopolistic corporate entities
    Choose the correct answer from the options given below:

    1. Aa, b and c only
    2. Bc, d and e only
    3. Ca, b and d only
    4. Db, c and e only

    Answer: (C) a, b and d only

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  63. Question 63

    Which one of the following is not an internal force for organizational change?

    1. AManagerial Behaviour
    2. BChange in leadership
    3. CWorkforce Diversity
    4. DChange in Employee and customer expectations

    Answer: (D) Change in Employee and customer expectations

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  64. Question 64

    Internal reliability of a test instrument is defined as:

    1. AThe increase and decrease in scores measured over time produce a variance of less than 50%
    2. BThe consistency of a measure taken at two different points of time
    3. CThe identical observation of single individual's scores
    4. DThe property of a distribution to achieve mean of 0 and variance of 1

    Answer: (B) The consistency of a measure taken at two different points of time

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  65. Question 65

    Which of the following are concerns and challenges of industrial revolution 4.0?
    a. Invasion of privacy
    b. Reduced capital expenditure on infrastructure
    c. Low cost and affordable service
    d. Blurring differences between the men and machines
    e. Environmental concerns
    Choose the most appropriate answer from the options given below:

    1. Aa, b and c only
    2. Bc, d and e only
    3. Cb and d only
    4. Da and e only

    Answer: (D) a and e only

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  66. Question 66

    Which of the following statements are true about line balancing?

    a. The total amount of work on a line is divided into different tasks
    b. Line balancing mainly ensures that each work station gets approximately equal amount of time
    c. Cycle time is determined by the minimum time required at any workstation
    d. Line balancing is not useful for the process industry
    e. Tasks are assigned to workstations that allow the work to be performed in a feasible sequence
    Choose the correct answer from the options given below:

    1. Ac, d and e only
    2. Ba and e only
    3. Ca, b and c only
    4. Db, c and d only

    Answer: (B) a and e only

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  67. Question 67

    Which one of the following is NOT an extramural function of Trade Unions?

    1. AProvision of education
    2. BJob security
    3. CHousing facilities
    4. DExtension of medical facilities during sickness

    Answer: (B) Job security

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  68. Question 68

    The major components of Nicosia Model of consumer decision-making are:
    a. The consumers attitude based on firm's message exposure
    b. Perceptual and teaming constructs
    c. Feedback in the form of purchase experience
    d. Extensive problem solving by consumer
    e. Consumer's product search and evaluation
    Choose the correct answer from the options given below:

    1. Aa, b and c only
    2. Ba, c and e only
    3. Cb, d and e only
    4. Db, c and d only

    Answer: (B) a, c and e only

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  69. Question 69

    Arrange the steps of novel product design thinking process in a sequential order:
    a. Define
    b. Test
    c. Prototype
    d. Empathise
    e. Ideate
    Choose the correct answer from the options given below:

    1. Ae, d, a, b, c
    2. Ba, c, d, e, b
    3. Cd, a, e, c, b
    4. Db, c, d, e, a

    Answer: (C) d, a, e, c, b

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  70. Question 70

    Arrange the following steps of marketing process in the sequential order:
    a. Capture value from customers to create profits and customer equity.
    b. Understand the market place and customer needs and wants.
    c. Build profitable relationships and create customer delight.
    d. Construct an integrated marketing program that delivers superior value.
    e. Design a customer-driven marketing strategy.
    Choose the correct answer from the options given below:

    1. Ab, d, e, a, c
    2. Bb, e, d, c, a
    3. Ce, b, c, d, a
    4. Dd, a, b, c, e

    Answer: (B) b, e, d, c, a

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  71. Question 71

    Given below are two statements, one is labelled as Assertion A and the other is labelled as
    Reason R:
    Assertion (A): IFRS and GAAP are two accounting systems competing for international
    acceptance.
    Reason (R): Indian Accounting Standards (Ind AS) are in convergence with both, the IFRS and the
    GAAP.
    In light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth A and R are correct and R is the correct explanation of A
    2. BBoth A and R are correct but R is NOT the correct explanation of A
    3. CA is correct but R is not correct
    4. DA is not correct but R is correct

    Answer: (C) A is correct but R is not correct

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  72. Question 72

    Given below are two statements:
    Statement I: If there are differences in consumers' responses, brand-name, product is essentially a
    commodity and competition will probably be based on price.
    Statement II: Brand equity is reflected in perceptions, performance and behaviour related to all
    aspects of the marketing of a brand.
    In light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (D) Statement I is incorrect but Statement II is correct

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  73. Question 73

    Match List I with List II.

    List IList II
    a. System approachi. Emphasizes that decisions and actions taken in one organisational area will affect others and vice- versa
    b. Contingency approachii. Emphasizes on application of statistics. optimization models and computer simulations to management activities
    c. Quantitative approachiii. Emphasizes on career orientation, impersonality, authority hierarchy, division of labour, formal selection etc.
    d. Weber's ideal bureaucracyiv. Emphasizes that organisations are different and face different situations that require different ways of managing Choose the correct answer from the options given below:
    1. Aa - i , b - iv, c - ii, d- iii
    2. Ba - ii, b - iii, c - i, d - iv
    3. Ca - iii, b - ii, c - iv, d - i
    4. Da - iv, b - i, c - iii, d- ii

    Answer: (A) a - i , b - iv, c - ii, d- iii

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  74. Question 74

    Given below are two statements:
    Statement I: The status of the person being perceived will greatly influence others' perception of
    the person.
    Statement II: The visible traits of the person perceived will not influence others' perception of the
    person.
    In light of the above statements. choose the correct answer from the options given below:

    1. ABoth Statement I and Statement II are true
    2. BBoth Statement I and Statement II are false
    3. CStatement I is true but Statement II is false
    4. DStatement I is false but Statement II is true

    Answer: (C) Statement I is true but Statement II is false

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  75. Question 75

    Earnings per share of a company is Rs. 4, Return on Investment is 20 percent and the return
    required by shareholder is 16 percent. Assuming Walter valuation model, if the payout ratio is 40
    percent, what will be the price per share?

    1. ARs 16.75
    2. BRs 20.65
    3. CRs 28.75
    4. DRs 30.15

    Answer: (C) Rs 28.75

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  76. Question 76

    From the viewpoint of stockholder, which of the following relationships is of the least
    significance?

    1. AThe return on assets is consistently of higher than the industry average
    2. BThe return on equity has increased in each of the past five years
    3. CNet income is greater than the amount of working capital
    4. DThe return on assets is greater than the rate of interest being paid to the lenders

    Answer: (C) Net income is greater than the amount of working capital

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  77. Question 77

    Which of the following are NOT motivational factors according to Herzberg?
    a. Interpersonal relations
    b. Work itself
    c. Advancement
    d. Achievement
    e. Salary
    Choose the correct answer from the options given below:

    1. Aa and e only
    2. Ba and b only
    3. Cb and d only
    4. Dc and e only

    Answer: (A) a and e only

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  78. Question 78

    Match List I with List II.

    List IList II
    a. Low Price- earnings ratio stocks outperform high Price-earning ratio stocksi. Peters (1991)
    b. Low PEG (p-e ratio/ Earnings growth rate) stocks outperform high PEG stocksii. Fama and French (1992)
    c. Small firms consistently experience larger risk-adjusted returnsiii. Basu (1977)
    d. High book value/ market value ratio stocks yield higher returnsiv. Banz (1981) Choose the correct answer from the options given below:
    1. Aa - ii, b - i, c - iii, d - iv
    2. Ba - iii, b - i, c - iv, d - ii
    3. Ca - iii, b - ii, c- iv, d - i
    4. Da - iii, b - iv, c - ii, d - i

    Answer: (B) a - iii, b - i, c - iv, d - ii

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  79. Question 79

    Match List I with List II.

    List IList II
    a. Strangersi. High potential profitability and low projected loyalty.
    b. Barnaclesii. High potential profitability and High projected loyalty
    c. True Friendsiii. Low potential profitability and low projected loyalty
    d. Butterfliesiv. Low potential profitability and High projected loyalty Choose the correct answer from the options given below:
    1. Aa - i, b - iii, c - ii, d - iv
    2. Ba - iv, b - iii, c - ii, d - i
    3. Ca - iii, b - ii, c - iv, d - i
    4. Da - iii, b - iv, c - ii, d - i

    Answer: (D) a - iii, b - iv, c - ii, d - i

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  80. Question 80

    Match List I with List II.

    List IList II
    a. Implicit Costsi. Change in the total cost per unit change in output.
    b. Marginal costii. Total increase in costs resulting from the implementation of a particular managerial decision.
    c. Incremental Costiii. Imputed value of inputs owned and used by the firm.
    d. Sunk Costiv. The costs that are not affected by managerial decision. Choose the correct answer from the options given below:
    1. Aa - iii, b - ii, c - iv, d - i
    2. Ba - iv, b- iii, c- ii, d - i
    3. Ca - iii, b - i, c - ii, d - iv
    4. Da - ii, b - i, c - iv, d - iii

    Answer: (C) a - iii, b - i, c - ii, d - iv

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  81. Question 81

    Gantt chart is applicable to:

    1. ATime study
    2. BProduction scheduling
    3. CSales Forecasting
    4. DMotion Study

    Answer: (B) Production scheduling

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  82. Question 82

    UNCTAD compiled ‘Transnationality Index’ consists of which of the following three ratios?

    1. AForeign assets/Total assets: Foreign sales/Total sales and Foreign employment/Total
      employment
    2. BForeign assets/Total assets: Foreign sales/Total output and Foreign employment/Total
      employment
    3. CForeign assets/Total GDP: Foreign sales. Total GDP and Foreign employment/Total GDP
    4. DForeign assets/Total output: Foreign sales/Total sales and Foreign employment/Total GDP

    Answer: (A) Foreign assets/Total assets: Foreign sales/Total sales and Foreign employment/Total
    employment

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  83. Question 83

    "A company in the sewing machine business diversifies into kitchenware and household
    appliances and sells these items through a chain of retail stores to family consumers". This is an
    example of:

    1. AMarketing-related concentric diversification
    2. BTechnology-related concentric diversification
    3. CMarketing and technology-related concentric diversification
    4. DUnrelated diversification

    Answer: (A) Marketing-related concentric diversification

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  84. Question 84

    A consumer wants to purchase a laptop. She makes a list of selected brands and then evaluates
    selected brands in terms of each relevant attribute and computes a weighted score for each brand.
    Then, she selects the highest scoring brand. Which consumer decision making rule has she
    employed?

    1. ACompensatory
    2. BConjunctive
    3. CAffect Referral
    4. DLexicographic

    Answer: (A) Compensatory

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  85. Question 85

    “Udyam Assist Platform” developed by the SIDBI cater to which of the following enterprises?

    1. ASmall Enterprises
    2. BMedium Enterprises
    3. CExport Oriented Enterprises
    4. DInformal Micro Enterprises

    Answer: (D) Informal Micro Enterprises

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  86. Question 86

    "We don't have a marketing department; we have a customer department."
    Herb Kelleher's statement given above refers to which one of the following concepts?

    1. ASocial Responsibility Marketing Concept
    2. BInternal Marketing Concept
    3. CMarketing Concept
    4. DCustomer Relationship Management Concept

    Answer: (C) Marketing Concept

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  87. Question 87

    Which one of the following is not the view of ethics among the following of views ?

    1. AUtilitarian view of ethics
    2. BRights view of ethics
    3. CTheory of justice view of ethics
    4. DNon-integrative social view

    Answer: (D) Non-integrative social view

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  88. Question 88

    Dimension reduction methods have the goal of using the correlation structure among the
    predictor variables to accomplish which of the following:
    a. To reduce the number of predictor components
    b. To help ensure that these components are dependent
    c. To provide a framework for interpretability of the results
    d. To help ensure that these components are independent
    e. To increase the number of predictor components
    Choose the correct answer from the options given below:

    1. Aa, b, d and e only
    2. Ba, c and d only
    3. Ca, b, c and e only
    4. Db, c, d and e only

    Answer: (B) a, c and d only

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  89. Question 89

    Arrange the following milk product brands developed by the state co-operatives in ascending
    order of revenue generator:
    a. Vita (Haryana)
    b. Amul (Gujarat)
    c. Nandini (Karnataka)
    d. Verka (Punjab)
    e. Milma (Kerala)
    Choose the correct answer from the options given below:

    1. Ae, d, a, b, c
    2. Ba, e, d, c, b
    3. Cc, e, a, d, b
    4. Dd, c, a, e, b

    Answer: (B) a, e, d, c, b

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  90. Question 90

    The most important step of ERP implementation is the _______ phase:

    An enterprise resource planning is at the center of the institution. In spite of a definite need to
    integrate functionality in areas like accounting, sales and order management, customer relationship
    management and SCM, the investments made by companies is not enough. Enterprises need to
    transform business processes to respond to fast changing customer demands and survive the intense
    global competition.
    Enterprises globally have been seeking information systems with the capacity to automate,
    communication and integrate information by collecting data in a highly standardized form. The
    selection of the ERP package is daunting task requiring a variety of infrastructural and managerial
    considerations. Both present and future business process scenarios need to be considered along
    with flexibility and cost. One dilemma before the decision makers is the possible intervention of
    non-proprietary technology standards. ERP implementation is a strategic activity requiring a
    comprehensive analysis of pre and post implementation scenarios and intensive training of people
    especially the front-end users. While some managers need to be involved in the design and
    implementation process, others have to learn the functionalities. The integration process passes
    through tough phases of accounting for differences in segments, departments and business

    processes, though with a unified managerial intent. A prototype of the required integration of
    business process needs to be developed after discussion with the people at different levels. The
    quality of ERP carries a long-term impact on the process of the organization and it is not easy to
    switch to another product with concomitant scale of investment and complexities. Fundamentally,
    everybody in the organization should understand how ERP will be used to bridge between "How it
    is" and "How it needs to be".

    1. AInstallation
    2. BGap analysis
    3. CTesting
    4. DTraining

    Answer: (B) Gap analysis

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  91. Question 91

    In ERP implementation. which is not a constraint in the process of integration of different business
    entities?

    An enterprise resource planning is at the center of the institution. In spite of a definite need to
    integrate functionality in areas like accounting, sales and order management, customer relationship
    management and SCM, the investments made by companies is not enough. Enterprises need to
    transform business processes to respond to fast changing customer demands and survive the intense
    global competition.
    Enterprises globally have been seeking information systems with the capacity to automate,
    communication and integrate information by collecting data in a highly standardized form. The
    selection of the ERP package is daunting task requiring a variety of infrastructural and managerial
    considerations. Both present and future business process scenarios need to be considered along
    with flexibility and cost. One dilemma before the decision makers is the possible intervention of
    non-proprietary technology standards. ERP implementation is a strategic activity requiring a
    comprehensive analysis of pre and post implementation scenarios and intensive training of people
    especially the front-end users. While some managers need to be involved in the design and
    implementation process, others have to learn the functionalities. The integration process passes
    through tough phases of accounting for differences in segments, departments and business

    processes, though with a unified managerial intent. A prototype of the required integration of
    business process needs to be developed after discussion with the people at different levels. The
    quality of ERP carries a long-term impact on the process of the organization and it is not easy to
    switch to another product with concomitant scale of investment and complexities. Fundamentally,
    everybody in the organization should understand how ERP will be used to bridge between "How it
    is" and "How it needs to be".

    1. AFunctional differences
    2. BGeographical differences
    3. CManagerial differences
    4. DOperational differences

    Answer: (C) Managerial differences

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  92. Question 92

    For success of ERP, the issues to be considered do not include:

    An enterprise resource planning is at the center of the institution. In spite of a definite need to
    integrate functionality in areas like accounting, sales and order management, customer relationship
    management and SCM, the investments made by companies is not enough. Enterprises need to
    transform business processes to respond to fast changing customer demands and survive the intense
    global competition.
    Enterprises globally have been seeking information systems with the capacity to automate,
    communication and integrate information by collecting data in a highly standardized form. The
    selection of the ERP package is daunting task requiring a variety of infrastructural and managerial
    considerations. Both present and future business process scenarios need to be considered along
    with flexibility and cost. One dilemma before the decision makers is the possible intervention of
    non-proprietary technology standards. ERP implementation is a strategic activity requiring a
    comprehensive analysis of pre and post implementation scenarios and intensive training of people
    especially the front-end users. While some managers need to be involved in the design and
    implementation process, others have to learn the functionalities. The integration process passes
    through tough phases of accounting for differences in segments, departments and business

    processes, though with a unified managerial intent. A prototype of the required integration of
    business process needs to be developed after discussion with the people at different levels. The
    quality of ERP carries a long-term impact on the process of the organization and it is not easy to
    switch to another product with concomitant scale of investment and complexities. Fundamentally,
    everybody in the organization should understand how ERP will be used to bridge between "How it
    is" and "How it needs to be".

    1. AAdaptability to changes in business processes in the future
    2. BERP package free from the intervention of non-proprietory technology standards
    3. CCustomisations to support varied business practices
    4. DFlexibility and cost-effectiveness of ERP

    Answer: (B) ERP package free from the intervention of non-proprietory technology standards

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  93. Question 93

    Organisation wide training is required to take full advantage of an ERP implementation. In this
    context, which of the following statements are true?
    i. Learning of the steering team on system performance is a must for ERP implementation
    ii. Training of functional managers in process analysis and redesign is required continually
    iii. IT department needs to be fully aware of system architecture

    An enterprise resource planning is at the center of the institution. In spite of a definite need to
    integrate functionality in areas like accounting, sales and order management, customer relationship
    management and SCM, the investments made by companies is not enough. Enterprises need to
    transform business processes to respond to fast changing customer demands and survive the intense
    global competition.
    Enterprises globally have been seeking information systems with the capacity to automate,
    communication and integrate information by collecting data in a highly standardized form. The
    selection of the ERP package is daunting task requiring a variety of infrastructural and managerial
    considerations. Both present and future business process scenarios need to be considered along
    with flexibility and cost. One dilemma before the decision makers is the possible intervention of
    non-proprietary technology standards. ERP implementation is a strategic activity requiring a
    comprehensive analysis of pre and post implementation scenarios and intensive training of people
    especially the front-end users. While some managers need to be involved in the design and
    implementation process, others have to learn the functionalities. The integration process passes
    through tough phases of accounting for differences in segments, departments and business

    processes, though with a unified managerial intent. A prototype of the required integration of
    business process needs to be developed after discussion with the people at different levels. The
    quality of ERP carries a long-term impact on the process of the organization and it is not easy to
    switch to another product with concomitant scale of investment and complexities. Fundamentally,
    everybody in the organization should understand how ERP will be used to bridge between "How it
    is" and "How it needs to be".

    1. ABoth i and ii
    2. BBoth ii and iii
    3. CBoth i and iii
    4. Di, ii and iii

    Answer: (C) Both i and iii

    Explanation

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  94. Question 94

    Which of the following is a precursor to ERP implementation?

    An enterprise resource planning is at the center of the institution. In spite of a definite need to
    integrate functionality in areas like accounting, sales and order management, customer relationship
    management and SCM, the investments made by companies is not enough. Enterprises need to
    transform business processes to respond to fast changing customer demands and survive the intense
    global competition.
    Enterprises globally have been seeking information systems with the capacity to automate,
    communication and integrate information by collecting data in a highly standardized form. The
    selection of the ERP package is daunting task requiring a variety of infrastructural and managerial
    considerations. Both present and future business process scenarios need to be considered along
    with flexibility and cost. One dilemma before the decision makers is the possible intervention of
    non-proprietary technology standards. ERP implementation is a strategic activity requiring a
    comprehensive analysis of pre and post implementation scenarios and intensive training of people
    especially the front-end users. While some managers need to be involved in the design and
    implementation process, others have to learn the functionalities. The integration process passes
    through tough phases of accounting for differences in segments, departments and business

    processes, though with a unified managerial intent. A prototype of the required integration of
    business process needs to be developed after discussion with the people at different levels. The
    quality of ERP carries a long-term impact on the process of the organization and it is not easy to
    switch to another product with concomitant scale of investment and complexities. Fundamentally,
    everybody in the organization should understand how ERP will be used to bridge between "How it
    is" and "How it needs to be".

    1. ABusiness modelling
    2. BBusiness process reengineering
    3. CProject analysis
    4. DBusiness continuity analysis

    Answer: (A) Business modelling

    Explanation

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  95. Question 95

    More competition in the early years of the business results in:

    Accepted wisdom holds that the less competition a business faces, the more it thrives. The concept
    is at the core of the Blue Ocean Strategy (Kim and Mauborgne, 2005) which advocates launching
    in the uncontested markets, in order to avoid pain of going head-to-head with rivals. Research
    shows that exposure to competition in early stages of a firm's life increases its long-term survival
    prospects.
    Companies established in crowded markets had a higher likelihood of failing in the first year than
    those started in less crowded markets. Early exposure to competition may immunize a company.
    How does a competition help firms in their youth thrive? A challenging environment causes startups

    to be tightly focused on satisfying customer needs along with lowering and containing costs. Many
    companies develop internal competition. Venture investors can help to create a similar dynamics
    by being careful not to overfund a new company, as having too much cash-on- hand can make it
    harder to establish a low-cost culture. Of course, early competition has a downside: some new
    businesses fail before they have time to build up immunity. Still managers of young businesses will
    bear in mind the advantages of exposure to safe levels of external competition or to a competitive
    environment that's been generated inside the organization. Such exposure can have long-lasting
    positive effects on efficiency and survival.

    1. AReducing the chances of its survival in the long-run
    2. BIncreasing the chances of its survival in the long-run
    3. CNeutralising the life of the business
    4. DMaking difficult for the new firm to raise funds from the market

    Answer: (B) Increasing the chances of its survival in the long-run

    Explanation

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  96. Question 96

    According to the passage, venture capitalists should:

    Accepted wisdom holds that the less competition a business faces, the more it thrives. The concept
    is at the core of the Blue Ocean Strategy (Kim and Mauborgne, 2005) which advocates launching
    in the uncontested markets, in order to avoid pain of going head-to-head with rivals. Research
    shows that exposure to competition in early stages of a firm's life increases its long-term survival
    prospects.
    Companies established in crowded markets had a higher likelihood of failing in the first year than
    those started in less crowded markets. Early exposure to competition may immunize a company.
    How does a competition help firms in their youth thrive? A challenging environment causes startups

    to be tightly focused on satisfying customer needs along with lowering and containing costs. Many
    companies develop internal competition. Venture investors can help to create a similar dynamics
    by being careful not to overfund a new company, as having too much cash-on- hand can make it
    harder to establish a low-cost culture. Of course, early competition has a downside: some new
    businesses fail before they have time to build up immunity. Still managers of young businesses will
    bear in mind the advantages of exposure to safe levels of external competition or to a competitive
    environment that's been generated inside the organization. Such exposure can have long-lasting
    positive effects on efficiency and survival.

    1. Abuild a low-cost structure
    2. Bbe aggressive in financing
    3. Ctake steps to acquire poor performing companies that they have funded
    4. Dnot overfund a new business

    Answer: (D) not overfund a new business

    Explanation

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  97. Question 97

    The best way for a firm to survive in a highly-competitive environment is:

    Accepted wisdom holds that the less competition a business faces, the more it thrives. The concept
    is at the core of the Blue Ocean Strategy (Kim and Mauborgne, 2005) which advocates launching
    in the uncontested markets, in order to avoid pain of going head-to-head with rivals. Research
    shows that exposure to competition in early stages of a firm's life increases its long-term survival
    prospects.
    Companies established in crowded markets had a higher likelihood of failing in the first year than
    those started in less crowded markets. Early exposure to competition may immunize a company.
    How does a competition help firms in their youth thrive? A challenging environment causes startups

    to be tightly focused on satisfying customer needs along with lowering and containing costs. Many
    companies develop internal competition. Venture investors can help to create a similar dynamics
    by being careful not to overfund a new company, as having too much cash-on- hand can make it
    harder to establish a low-cost culture. Of course, early competition has a downside: some new
    businesses fail before they have time to build up immunity. Still managers of young businesses will
    bear in mind the advantages of exposure to safe levels of external competition or to a competitive
    environment that's been generated inside the organization. Such exposure can have long-lasting
    positive effects on efficiency and survival.

    1. AHiring highly competitive human resources
    2. BFocusing on customer needs along with lowering the cost
    3. CImproving the quality of the product without caring for the costs involved
    4. DMaking huge investment in state-of-the art technology

    Answer: (B) Focusing on customer needs along with lowering the cost

    Explanation

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  98. Question 98

    Which of the following is a type of competitive strategy?

    Accepted wisdom holds that the less competition a business faces, the more it thrives. The concept
    is at the core of the Blue Ocean Strategy (Kim and Mauborgne, 2005) which advocates launching
    in the uncontested markets, in order to avoid pain of going head-to-head with rivals. Research
    shows that exposure to competition in early stages of a firm's life increases its long-term survival
    prospects.
    Companies established in crowded markets had a higher likelihood of failing in the first year than
    those started in less crowded markets. Early exposure to competition may immunize a company.
    How does a competition help firms in their youth thrive? A challenging environment causes startups

    to be tightly focused on satisfying customer needs along with lowering and containing costs. Many
    companies develop internal competition. Venture investors can help to create a similar dynamics
    by being careful not to overfund a new company, as having too much cash-on- hand can make it
    harder to establish a low-cost culture. Of course, early competition has a downside: some new
    businesses fail before they have time to build up immunity. Still managers of young businesses will
    bear in mind the advantages of exposure to safe levels of external competition or to a competitive
    environment that's been generated inside the organization. Such exposure can have long-lasting
    positive effects on efficiency and survival.

    1. AProduct differentiation
    2. BMinimum currency cost
    3. CMaximum cost structure
    4. DProfit maximisation

    Answer: (A) Product differentiation

    Explanation

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  99. Question 99

    A strategy referred to in the passage that enables firms to create a new market space for themselves
    is:

    Accepted wisdom holds that the less competition a business faces, the more it thrives. The concept
    is at the core of the Blue Ocean Strategy (Kim and Mauborgne, 2005) which advocates launching
    in the uncontested markets, in order to avoid pain of going head-to-head with rivals. Research
    shows that exposure to competition in early stages of a firm's life increases its long-term survival
    prospects.
    Companies established in crowded markets had a higher likelihood of failing in the first year than
    those started in less crowded markets. Early exposure to competition may immunize a company.
    How does a competition help firms in their youth thrive? A challenging environment causes startups

    to be tightly focused on satisfying customer needs along with lowering and containing costs. Many
    companies develop internal competition. Venture investors can help to create a similar dynamics
    by being careful not to overfund a new company, as having too much cash-on- hand can make it
    harder to establish a low-cost culture. Of course, early competition has a downside: some new
    businesses fail before they have time to build up immunity. Still managers of young businesses will
    bear in mind the advantages of exposure to safe levels of external competition or to a competitive
    environment that's been generated inside the organization. Such exposure can have long-lasting
    positive effects on efficiency and survival.

    1. ARed Ocean strategy
    2. BBlue Ocean strategy
    3. CBudding in the Ocean strategy
    4. DOccasional strategy

    Answer: (B) Blue Ocean strategy

    Explanation

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