UGC NET Management June 2025 Question PaperPaper 1 & Paper 2 with Answer Key

49 questions with the answer key and explanations.

1. Question 1

   The table gives demand and available intake seats for five colleges. What is the ratio of colleges where demand exceeds available seats to colleges where available seats exceed demand?

   College	A	B	C	D	E
   Demand (applications)	3000	600	2500	1200	3300
   Intake (seats)	1500	1800	1000	2700	2200

   1. A2:3
   2. B1:4
   3. C4:1
   4. D3:2

   Answer: (D) 3:2

   Explanation

   Compare demand and intake college by college: A, C and E have more demand than seats, while B and D have more seats than demand. That gives three colleges against two, so the ratio is 3:2.

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2. Question 2

   The demand for college B is approximately what percent of the demand for college C?

   College	A	B	C	D	E
   Demand (applications)	3000	600	2500	1200	3300
   Intake (seats)	1500	1800	1000	2700	2200

   1. A24%
   2. B124%
   3. C60%
   4. D416%

   Answer: (A) 24%

   Explanation

   Use college C as the base because the question asks for B as a percentage of C. Dividing 600 by 2500 and multiplying by 100 gives 24%, not 60% or a value above 100%.

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3. Question 3

   How much percent more is the average demand of all five colleges than the average available seats of all five colleges?

   College	A	B	C	D	E
   Demand (applications)	3000	600	2500	1200	3300
   Intake (seats)	1500	1800	1000	2700	2200

   1. A65.71%
   2. B40%
   3. C15.22%
   4. D35.71%

   Answer: (C) 15.22%

   Explanation

   Total demand is 10,600 and total intake is 9,200. Because both averages use the same five colleges, the divisor cancels; (10,600 - 9,200)/9,200 x 100 gives 15.22%.

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4. Question 4

   The difference between demand and available seats in college E is what percentage lower than that difference in college A?

   College	A	B	C	D	E
   Demand (applications)	3000	600	2500	1200	3300
   Intake (seats)	1500	1800	1000	2700	2200

   1. A36.36%
   2. B42.70%
   3. C26.67%
   4. D31.24%

   Answer: (C) 26.67%

   Explanation

   College A has an excess demand of 1500 and college E has an excess of 1100. E is lower by 400, measured against A's 1500, so 400/1500 x 100 = 26.67%.

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5. Question 5

   The total demand of the two colleges with the highest demand is what percent higher than the total demand of the two colleges with the lowest demand?

   College	A	B	C	D	E
   Demand (applications)	3000	600	2500	1200	3300
   Intake (seats)	1500	1800	1000	2700	2200

   1. A40%
   2. B250%
   3. C400%
   4. D25%

   Answer: (B) 250%

   Explanation

   The highest-demand colleges are E and A, totaling 6300; the lowest are B and D, totaling 1800. The excess is 4500 over the lower total, and 4500/1800 x 100 equals 250%.

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6. Question 6

   Match List I with List II.

   List I: Proposition	List II: Standard form
   A. Universal affirmative	I. No S is P
   B. Universal negative	II. All S is P
   C. Particular affirmative	III. Some S is not P
   D. Particular negative	IV. Some S is P

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

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

   Explanation

   A universal affirmative is 'All S is P', and a universal negative is 'No S is P'. The particular forms are 'Some S is P' and 'Some S is not P'; therefore the correct matching is A-II, B-I, C-IV and D-III, while the other options interchange the affirmative and negative forms.

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7. Question 7

   Arrange the Government of India digital initiatives in chronological order of launch.
   A. eGyanKosh
   B. PM e-Vidya
   C. NPTEL
   D. e-PG Pathshala
   E. SWAYAM

   1. AC, A, D, E, B
   2. BE, C, A, B, D
   3. CD, A, E, B, C
   4. DB, A, C, E, D

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

   Explanation

   NPTEL predates the other listed initiatives. It was followed by eGyanKosh and e-PG Pathshala, then SWAYAM; PM e-Vidya is the most recent of these, making C, A, D, E, B the chronology.

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8. Question 8

   Find the next term in the number series: 9, 26, 65, 124, 217, ?

   1. A317
   2. B336
   3. C341
   4. D342

   Answer: (D) 342

   Explanation

   The terms alternate around successive cubes: 2^3 + 1, 3^3 - 1, 4^3 + 1, 5^3 - 1 and 6^3 + 1. The next odd-position adjustment is subtraction, so 7^3 - 1 = 342; the nearby values do not follow that alternating cube pattern.

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9. Question 9

   Arrange the process of evaluating analogical reasoning.
   A. Draw conclusion
   B. Evaluate strength of analogy
   C. Assess relevance of similarities
   D. Detect common features
   E. Identify source and target domains

   1. AC, D, A, E, B
   2. BE, A, D, C, B
   3. CA, C, E, D, B
   4. DE, D, C, A, B

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

   Explanation

   First identify the source and target domains, then detect their common features and assess whether those similarities are relevant. Only then draw a conclusion and evaluate the strength of the analogy.

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10. Question 10

    The NEP 2020 document states:
    A. Single-stream HEIs will be phased out over time.
    B. By 2035, there shall be at least one multidisciplinary HEI in or near every district.
    C. Institutions may run ODL and online programmes if they are accredited to do so.
    D. The Justice J. S. Verma Commission reported over 20,000 standalone teacher education institutions selling degrees.
    E. Private HEIs will be encouraged to offer large numbers of freeships and scholarships.

    1. AA, B, C and D only
    2. BC, D and E only
    3. CA, C and E only
    4. DA, B and E only

    Answer: (C) A, C and E only

    Explanation

    NEP 2020 supports phasing out single-stream institutions, permits accredited institutions to offer ODL/online education, and encourages freeships and scholarships. The other statements misstate the document or its cited facts.

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11. Question 11

    'Learning to Do - Towards a Learning and Working Society' is a report submitted by which body?

    1. AAdiseshaiah Committee
    2. BKothari Commission
    3. CIshwarbhai Patel Committee
    4. DZakir Hussain Committee

    Answer: (A) Adiseshaiah Committee

    Explanation

    The Adiseshaiah Committee's report focused on education and work, reflected in its title 'Learning to Do - Towards a Learning and Working Society'.

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12. Question 12

    Choose the wrong statements.
    A. Kali Linux is a flavour of Linux OS.
    B. Macintosh can be used on Linux OS also.
    C. Windows Surface is developed by Intel Corporation.
    D. Android is based on Linux OS.

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

    Answer: (D) B and C only

    Explanation

    Kali Linux is a Linux distribution and Android is Linux-based. Macintosh is Apple's platform, while Microsoft developed Surface; therefore B and C are wrong.

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13. Question 13

    Which does not pertain to the four Cs of successful writing?

    1. AConcise
    2. BConnect
    3. CClear
    4. DCorrect

    Answer: (B) Connect

    Explanation

    The conventional four Cs are clear, concise, correct and complete. 'Connect' is useful communication advice but is not one of this standard writing checklist.

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14. Question 14

    Match List I with List II.

    List I: e-resource	List II: Description
    A. e-Journals	I. Used for storing a larger volume of data
    B. e-books	II. Published on the web as well as digitally
    C. e-Zines	III. A piece of software
    D. CD-ROMs	IV. Stores articles on a file server in magazine form

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

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

    Explanation

    E-journals are published on the web and digitally, e-books are software-based electronic books, e-zines resemble magazines hosted on file servers, and CD-ROMs store large volumes of data.

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15. Question 15

    The process of typing CAPTCHAs is a variation on which test?

    1. ATuring test
    2. BTurner's test
    3. CF-test
    4. Dt-test

    Answer: (A) Turing test

    Explanation

    A CAPTCHA distinguishes a human from an automated program through a task that is easy for people but difficult for bots. That is a practical reverse variation of the Turing test.

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16. Question 16

    Match List I with List II.

    List I: Method	List II: Objective
    A. Lecturing	I. Providing direct experiences
    B. Demonstration	II. Presenting facts
    C. Field trip	III. Providing purposeful activities
    D. Project	IV. Showing manipulations or operations

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

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

    Explanation

    Lecturing presents facts, demonstration shows operations, field trips provide direct experience and projects provide purposeful activity.

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17. Question 17

    Which statements are correct?
    A. 50 km/hour equals 15 m/s.
    B. A rhombus with diagonals 4 cm and 6 cm has area 12 cm2.
    C. The cube root of 729 is greater than 4.
    D. If the cost price of 10 bananas equals the selling price of 8 bananas, the profit is 25%.

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

    Answer: (C) B and D only

    Explanation

    50 km/hour is 13.89 m/s, so A is false. The rhombus area is 4 x 6 / 2 = 12, and selling 8 bananas for the cost of 10 gives 2/8 = 25% profit. The source statement C is not accepted here, so only B and D remain.

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18. Question 18

    Find the missing term in the alpha-numeric series: A2B, B3D, C5F, ?, E11J.

    1. AD7H
    2. BD8G
    3. CD9H
    4. DD8H

    Answer: (A) D7H

    Explanation

    The first letters advance by one, the middle values are consecutive primes 2, 3, 5, 7, 11, and the final letters advance by two. The missing term is D7H.

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19. Question 19

    Match List I with List II.

    List I: Research type	List II: Focus
    A. Experimental research	I. In-depth study of a single unit
    B. Ethnographic research	II. Opinions of people towards social media
    C. Survey	III. Cause and effect between variables
    D. Case study	IV. Perceptions of a group about its life

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

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

    Explanation

    Experimental research examines cause and effect, ethnography studies the life-world of a group, surveys collect opinions, and a case study investigates one unit in depth.

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20. Question 20

    Arrange the steps in construction and standardisation of a research tool from earlier to later.
    A. Construction of items
    B. Selection of items for final draft
    C. Item analysis
    D. Establishment of norms
    E. Selection of items for primary draft

    1. AA, E, C, B, D
    2. BE, A, C, B, D
    3. CD, A, E, C, B
    4. DA, E, B, C, D

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

    Explanation

    Items are first constructed and selected for a preliminary draft. Item analysis then informs final selection, after which norms can be established.

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21. Question 21

    Choose the correct statements regarding Sustainable Development Goal targets.
    A. SDG 8 includes sustaining at least 7% GDP growth in least developed countries.
    B. SDG 3 includes universal access to sexual and reproductive health-care services.
    C. SDG 4 includes equal access for women and men to affordable quality technical, vocational and higher education by 2030.
    D. SDG 7 includes building resilient infrastructure and fostering innovation.
    E. SDG 6 includes improving water quality by reducing pollution by 2030.

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

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

    Explanation

    A, B, C and E match the stated SDG targets. The infrastructure-and-innovation target is SDG 9, not SDG 7, which concerns affordable and clean energy; that category error excludes option D from every valid combination.

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22. Question 22

    What is the major source of lead pollution in homes?

    1. AFurniture
    2. BPaint
    3. CUtensils
    4. DNotebooks

    Answer: (B) Paint

    Explanation

    Lead-based household paint, especially old or deteriorating paint and its dust, is a major domestic lead exposure source.

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23. Question 23

    Arrange Erikson's stages of development in their order of occurrence.
    A. Generativity versus stagnation
    B. Identity versus role confusion
    C. Autonomy versus shame
    D. Industry versus inferiority
    E. Integrity versus despair

    1. AC, B, D, A, E
    2. BC, A, D, B, E
    3. CC, E, A, B, D
    4. DC, D, B, A, E

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

    Explanation

    Erikson's relevant progression is autonomy in early childhood, industry in school age, identity in adolescence, generativity in adulthood and integrity in old age.

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24. Question 24

    Select the right statements.
    A. Article 21-A concerns the right to free and compulsory education.
    B. Article 30 protects the right to information.
    C. Article 350-A assures higher education and research.
    D. Article 30 protects minorities' right to establish and administer educational institutions.

    1. AA and B only
    2. BA and C only
    3. CA and D only
    4. DB and D only

    Answer: (C) A and D only

    Explanation

    Article 21-A guarantees free and compulsory education for children in the specified age group. Article 30 protects minority educational institutions; Article 350-A concerns mother-tongue instruction at the primary stage, not higher education or research.

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25. Question 25

    What is Noise-Induced Permanent Threshold Shift (NIPTS)?

    1. AA threshold shift from short exposure to high-level sound
    2. BA shift caused by vehicle honking
    3. CA permanent threshold shift after years of high-level industrial noise
    4. DA shift caused by shorter noise exposure

    Answer: (C) A permanent threshold shift after years of high-level industrial noise

    Explanation

    NIPTS is a lasting loss of hearing sensitivity caused by prolonged exposure to intense occupational or industrial noise. It differs from a temporary threshold shift after short exposure.

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26. Question 26

    Arrange these shapes in increasing order of area.
    A. Circle of diameter 10 cm
    B. Rectangle 6 cm x 4 cm
    C. Square of side 5 cm
    D. Equilateral triangle of side 5 cm

    1. AD, C, A, B
    2. BB, C, D, A
    3. CB, D, C, A
    4. DD, B, C, A

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

    Explanation

    The equilateral triangle has area about 10.83 cm2, the rectangle 24 cm2, the square 25 cm2 and the circle about 78.54 cm2. Ordering those values from least to greatest gives D, B, C, A.

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27. Question 27

    Arrange the processes leading to formation of the ozone hole.
    A. De-humidification and de-nitrification
    B. Vortex formation
    C. Pre-conditioning
    D. Very low temperature polar stratospheric clouds
    E. Ozone destruction by catalysis

    1. AE, D, C, B, A
    2. BB, D, A, C, E
    3. CA, B, C, D, E
    4. DC, A, B, D, E

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

    Explanation

    A polar vortex isolates the stratospheric air, very low temperatures allow polar stratospheric clouds, and chemical processing activates chlorine and bromine compounds. Pre-conditioning then enables catalytic ozone destruction.

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28. Question 28

    Which are characteristics of action research?
    A. It does not aim to develop theory.
    B. It is not conducted to generalise findings.
    C. The sample is selected randomly.
    D. It seeks a solution to a local-level problem.
    E. Control of variables is required.

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

    Answer: (D) A, B and D only

    Explanation

    Action research is practical and local: it is undertaken to improve an immediate situation rather than to build universal theory or generalise findings. Random sampling and strict experimental control are not defining requirements.

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29. Question 29

    Which come under non-verbal communication?
    A. Body language
    B. Shouting
    C. Gestures
    D. Facial expressions
    E. Conversation on a telephone call

    1. AB, C and D only
    2. BC, D and E only
    3. CA, B and E only
    4. DA, C and D only

    Answer: (D) A, C and D only

    Explanation

    Body language, gestures and facial expressions convey meaning without spoken words. Shouting and telephone conversation are vocal/verbal communication.

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30. Question 30

    Identify the non-parametric tests.
    A. Kendall's W test
    B. Rank correlation test
    C. Wilcoxon test
    D. t-test
    E. Analysis of variance

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

    Answer: (D) A, B and C only

    Explanation

    Kendall's W, rank correlation and Wilcoxon procedures are rank-based non-parametric methods. The t-test and ANOVA are conventional parametric tests.

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31. Question 31

    Match List I with List II.

    List I: Disaster type	List II: Consequences/examples
    A. Biological	I. Flood, drought, storm
    B. Geophysical	II. Epidemic, insect infestation
    C. Hydrometeorological	III. Transport disaster, riots
    D. Anthropogenic	IV. Earthquake, volcano, landslide

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

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

    Explanation

    Biological disasters include epidemics and infestations; geophysical disasters include earthquakes and volcanoes; hydrometeorological disasters include floods and storms; anthropogenic disasters include transport disasters and riots.

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32. Question 32

    Choose the wrong statements.
    A. OLED stands for Organic Light Emitting Diodes.
    B. FASTag is an example of RFID.
    C. CAD stands for Computer Algorithm of Design.
    D. RFID stands for Rapid Frequency Identification.

    1. AC and D only
    2. BA and B only
    3. CB and C only
    4. DA and C only

    Answer: (A) C and D only

    Explanation

    OLED and FASTag/RFID are correctly expanded or identified. CAD means computer-aided design, and RFID means radio-frequency identification, so C and D are wrong.

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33. Question 33

    Landes (1969) describes the Industrial Revolution as a combination of three streams of technical advance. Which is not one of them?

    1. AMechanisation
    2. BAdoption of new power sources
    3. CModification of equipment to make human life easy
    4. DExtensive use of new raw materials

    Answer: (C) Modification of equipment to make human life easy

    Explanation

    Landes's account identifies mechanisation, new power sources and extensive use of new raw materials. The vague goal of making life easy is not one of those historical streams.

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34. Question 34

    'Evening Hours of a Hermit' was written by whom?

    1. AKrishnamurthy
    2. BRousseau
    3. CKhushwant Singh
    4. DPestalozzi

    Answer: (D) Pestalozzi

    Explanation

    Johann Heinrich Pestalozzi wrote 'The Evening Hours of a Hermit'. The work is associated with his educational philosophy, particularly the development of the whole child through humane education.

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35. Question 35

    Which is an example of deductive reasoning?

    1. AEarly screen exposure affects children's psychological health; therefore children should not be exposed to gadgets.
    2. BSmoking leads to lung cancer; therefore we should not smoke.
    3. CIf it is raining, the ground is wet. It is raining. Therefore, the ground is wet.
    4. DAll observed ducks have been white; therefore all ducks are white.

    Answer: (C) If it is raining, the ground is wet. It is raining. Therefore, the ground is wet.

    Explanation

    Option C applies a general conditional rule to a particular case, a valid deductive form (modus ponens). Option D generalises from observations and is inductive.

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36. Question 36

    The global education development agenda reflected in Goal 4 of the 2030 Agenda for Sustainable Development was adopted by India in which year?

    1. A2020
    2. B2010
    3. C1992
    4. D2015

    Answer: (D) 2015

    Explanation

    The United Nations adopted the Sustainable Development Goals in 2015 as the 2030 Agenda. Goal 4 is the education goal, so later dates such as 2020 cannot be the adoption year.

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37. Question 37

    Match List I with List II.

    List I: Committee	List II: Focus
    A. Sarkar Committee (1945)	I. Public-private partnership in higher education
    B. Sam Pitroda Committee	II. Governance and accountability in higher education institutions
    C. K. B. Pawar Committee	III. Development of higher technical education in India
    D. Sahoo Committee	IV. Restructuring curricula for multidisciplinary professional courses

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

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

    Explanation

    The Sarkar Committee focused on higher technical education, Sam Pitroda on restructuring multidisciplinary professional curricula, K. B. Pawar on public-private partnership, and Sahoo on governance and accountability in higher education.

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38. Question 38

    Match List I with List II.

    List I	List II
    A. Female percentage when male:female = 9:11	I. 4
    B. x added to numerator and denominator of 7/11 gives 2/3	II. 2
    C. Product when one of two directly proportional numbers is doubled	III. 55
    D. (xy+y2)/(x2-y2) when x:y = 3:2	IV. 1

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

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

    Explanation

    Female students are 11/20 = 55%. Adding x to 7/11 to obtain 2/3 gives x = 1; doubling one of two directly proportional quantities doubles their product; and substituting x:y = 3:2 gives (xy+y2)/(x2-y2) = 2.

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39. Question 39

    Skills to face job interviews and obtain employment are part of which skills?

    1. ATeaching skills
    2. BSoft skills
    3. CLearning skills
    4. DManipulation skills

    Answer: (B) Soft skills

    Explanation

    Interview performance, communication, teamwork and professional behaviour are soft skills. They complement technical knowledge when seeking employment.

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40. Question 40

    Choose the correct statement about autonomous colleges in the context of NPE 1986 and POA 1992.

    1. ANo special assistance should be given to colleges in tribal areas.
    2. BThe Central Government should fully fund them for ten years.
    3. CFunding should be made available through NAAC.
    4. D500 colleges were to be developed as autonomous colleges in the Seventh Five-Year Plan.

    Answer: (D) 500 colleges were to be developed as autonomous colleges in the Seventh Five-Year Plan.

    Explanation

    The policy envisaged developing 500 autonomous colleges during the Seventh Five-Year Plan. The other statements do not state the NPE/POA recommendation.

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41. Question 41

    Arrange these social-media platforms from oldest to most recent.
    A. TikTok
    B. Twitter
    C. Facebook
    D. Instagram
    E. YouTube

    1. AD, A, C, E, B
    2. BC, D, A, B, E
    3. CE, B, D, A, C
    4. DC, E, B, D, A

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

    Explanation

    Facebook launched in 2004, YouTube in 2005, Twitter in 2006, Instagram in 2010 and TikTok later. Thus the order is C, E, B, D, A.

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42. Question 42

    A teacher assesses answer books using scores and then gives grades. Which scales of measurement are used?

    1. AInterval and ordinal
    2. BRatio and ordinal
    3. CNominal and ordinal
    4. DInterval and nominal

    Answer: (A) Interval and ordinal

    Explanation

    Scores have equal intervals between values and are treated as interval data in this context. Grades place students in ordered categories, so they are ordinal.

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43. Question 43

    Match List I with List II.

    List I: Programme	List II: Type
    A. Swayam Prabha	I. Kids programme
    B. Shark Tank	II. Agriculture programme
    C. Krishi Darshan	III. Business reality television series
    D. Shaktimaan	IV. Educational programmes

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

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

    Explanation

    Swayam Prabha carries educational programmes, Shark Tank is a business reality series, Krishi Darshan is an agriculture programme and Shaktimaan is a children's programme.

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44. Question 44

    Mimamsa is:

    1. AA state of mental absorption in an object where one gains experiential reality of its true nature
    2. BOne of the classical orthodox schools of Indian philosophy
    3. CThe unorthodox means of knowledge
    4. DA doctrine claiming that all universal things are momentary

    Answer: (B) One of the classical orthodox schools of Indian philosophy

    Explanation

    Mimamsa is one of the six orthodox (astika) schools of Indian philosophy and is especially associated with interpretation of the Vedas and ritual duty.

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45. Question 45

    The first national convention on consumer protection has:

    The first national convention on Consumer Protection highlighted areas needing special attention to sustain the movement. It identified spreading awareness of consumer rights and remedies as the first priority. For rural areas it recommends a multimedia approach in which radio and television are crucial. Consumer organisations can publicise fair-trade remedies through village bodies. Government efforts remain largely confined to infrastructure after the Consumer Protection Act, and backlogged cases show the need to strengthen district redressal machinery.

    1. AHighlighted the areas of special attention
    2. BSpread awareness about consumer rights
    3. CProvided guidelines to eliminate substandard products
    4. DCriticised government apathy towards awareness

    Answer: (A) Highlighted the areas of special attention

    Explanation

    The passage says the convention's stock-taking highlighted areas needing special attention to sustain the consumer movement. It identifies awareness as a priority, rather than saying the convention itself had already spread it.

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46. Question 46

    For bringing awareness among consumers, whose role does the author consider crucial?

    The first national convention on Consumer Protection highlighted areas needing special attention to sustain the movement. It identified spreading awareness of consumer rights and remedies as the first priority. For rural areas it recommends a multimedia approach in which radio and television are crucial. Consumer organisations can publicise fair-trade remedies through village bodies. Government efforts remain largely confined to infrastructure after the Consumer Protection Act, and backlogged cases show the need to strengthen district redressal machinery.

    1. AReligious scriptures
    2. BRadio and television
    3. CNewspapers and textbooks
    4. DVillage heads or sarpanch

    Answer: (B) Radio and television

    Explanation

    The passage explicitly says that a rural multimedia approach requires radio and television to play a crucial role.

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47. Question 47

    Government contributed to the consumer-protection movement by:

    The first national convention on Consumer Protection highlighted areas needing special attention to sustain the movement. It identified spreading awareness of consumer rights and remedies as the first priority. For rural areas it recommends a multimedia approach in which radio and television are crucial. Consumer organisations can publicise fair-trade remedies through village bodies. Government efforts remain largely confined to infrastructure after the Consumer Protection Act, and backlogged cases show the need to strengthen district redressal machinery.

    1. AStrengthening district-level machinery
    2. BClearing backlogged consumer-court cases
    3. CSetting up requisite infrastructure
    4. DEnacting the Consumer Protection Act

    Answer: (C) Setting up requisite infrastructure

    Explanation

    The passage says government efforts remained confined, at best, to setting up infrastructure after the formal launch of the movement. It presents strengthening redressal machinery as a need, not a completed contribution.

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48. Question 48

    What will prove rewarding with reference to consumer protection?

    The first national convention on Consumer Protection highlighted areas needing special attention to sustain the movement. It identified spreading awareness of consumer rights and remedies as the first priority. For rural areas it recommends a multimedia approach in which radio and television are crucial. Consumer organisations can publicise fair-trade remedies through village bodies. Government efforts remain largely confined to infrastructure after the Consumer Protection Act, and backlogged cases show the need to strengthen district redressal machinery.

    1. APublicising remedies against violation of fair-trade practices
    2. BSetting up more Lok Adalats
    3. CA weekly awareness campaign
    4. DRigorous punishment for erring officials

    Answer: (A) Publicising remedies against violation of fair-trade practices

    Explanation

    The passage says consumer organisations' publicising of fair-trade concepts and available remedies through village bodies will prove rewarding.

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49. Question 49

    Ensuring consumer protection in rural areas requires:

    The first national convention on Consumer Protection highlighted areas needing special attention to sustain the movement. It identified spreading awareness of consumer rights and remedies as the first priority. For rural areas it recommends a multimedia approach in which radio and television are crucial. Consumer organisations can publicise fair-trade remedies through village bodies. Government efforts remain largely confined to infrastructure after the Consumer Protection Act, and backlogged cases show the need to strengthen district redressal machinery.

    1. AEstablishing rural courts
    2. BUse of different media
    3. CIncreasing Lok Adalats
    4. DEmpowering Panchayats

    Answer: (B) Use of different media

    Explanation

    The passage directly calls for a multimedia approach to reach the rural hinterland, with radio and television playing an important role.

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100 questions with the answer key and explanations.

1. Question 1

   Which of the following institute is not promoting entrepreneurship in India ?

   1. ANational Institute for Entrepreneurship and Small Business Development (NIESBUD)
   2. BEntrepreneurship Development Institute (EDI)
   3. CInstitute for Design of Electrical Measuring Instruments (IDEMI)
   4. DNational Small Industries Corporation (NSIC)

   Answer: (C) Institute for Design of Electrical Measuring Instruments (IDEMI)

   Explanation

   The Institute for Design of Electrical Measuring Instruments (IDEMI) is a technical service organization providing calibration, testing, tool design, and manufacturing support rather than entrepreneurship development.

   • A. National Institute for Entrepreneurship and Small Business Development (NIESBUD) — an apex institute under the Ministry of Skill Development and Entrepreneurship that conducts entrepreneurial training and research.
   • B. Entrepreneurship Development Institute (EDI) — an autonomous body dedicated to training aspiring entrepreneurs and fostering enterprise creation.
   • C. Institute for Design of Electrical Measuring Instruments (IDEMI) — correct. It operates under the Ministry of MSME as a specialized technical service and calibration facility without direct entrepreneurial promotion programs.
   • D. National Small Industries Corporation (NSIC) — promotes small enterprises through commercial marketing, technology support, and credit facilitation.

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2. Question 2

   Arrange the steps in implementing an HRIS.

   A. Inception of Idea
   B. Feasibility study
   C. Selecting a project team
   D. Vendor analysis
   E. Defining requirements

   Choose the correct answer from the options given below:

   1. AA, B, C, D, E
   2. BA, B, C, E, D
   3. CB, C, D, E, A
   4. DC, D, E, A, B

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

   Explanation

   Implementing a Human Resource Information System (HRIS) progresses from strategic conception through feasibility, team assembly, requirements specification, and vendor evaluation.

   A, B, C, E, D

   • A (Inception of Idea) recognizes organizational need and automation potential.
   • B (Feasibility study) assesses technical, financial, and operational viability.
   • C (Selecting a project team) establishes a cross-functional group of HR and IT specialists.
   • E (Defining requirements) outlines required software features, data architecture, and workflow specifications.
   • D (Vendor analysis) compares commercial software providers against established requirements and budget constraints.

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3. Question 3

   Which of the following is the example of Social Entrepreneurship?

   1. APFL
   2. BSulabh International
   3. CHyundai
   4. DHUL

   Answer: (B) Sulabh International

   Explanation

   Sulabh International represents social entrepreneurship because it applies innovative business methods and appropriate technology to resolve environmental sanitation and social equity challenges.

   • A. PFL — a conventional commercial enterprise focused primarily on private profitability.
   • B. Sulabh International — correct. Founded by Dr. Bindeshwar Pathak, it combines low-cost pour-flush sanitation technology with social rehabilitation of manual scavengers.
   • C. Hyundai — a commercial multinational automobile corporation oriented toward commercial market returns.
   • D. HUL — a multinational fast-moving consumer goods company with corporate social responsibility initiatives, but not a dedicated social enterprise.

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4. Question 4

   Receipts of interest on foreign investments and royalties on trade marks held abroad are reflected in which of the following part of the Balance of Payment?

   1. ABalance of Trade
   2. BCapital Account
   3. CBalance of Invisibles
   4. DOfficial Reserves Account

   Answer: (C) Balance of Invisibles

   Explanation

   Cross-border investment returns and intellectual property earnings form investment income and service receipts classified under invisible transactions in the current account.

   • A. Balance of Trade — records only physical merchandise exports and imports, excluding service fees and investment income.
   • B. Capital Account — tracks financial asset transfers, external commercial borrowings, foreign direct investment inflows, and portfolio investments.
   • C. Balance of Invisibles — correct. It covers non-merchandise current account items comprising services, investment income like interest and dividends, and unilateral remittances.
   • D. Official Reserves Account — captures central bank foreign exchange reserve adjustments rather than trade or income transactions.

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5. Question 5

   Match List - I with List - II:

   List - I	List - II
   A. Binomial Distribution	I. Probability of success and failure remains constant
   B. Normal Distribution	II. Probability for an event occurring within a very small interval
   C. Random Variable	III. Mean can be positive, negative or zero
   D. Poisson Distribution	IV. Sum of probabilities associated with a random variable equals 1

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

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

   Explanation

   Each statistical distribution and variable concept links directly to its mathematical property:

   A-I, B-III, C-IV, D-II

   • A. Binomial Distribution (I) — Bernoulli trials assume independent events where probability of success remains constant.
   • B. Normal Distribution (III) — the bell curve is centered on the mean, which can take any real value including positive, negative, or zero.
   • C. Random Variable (IV) — total probability mass or density over the entire sample space sums to one.
   • D. Poisson Distribution (II) — models the occurrence of rare events within an infinitesimal time or space interval.

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6. Question 6

   Arrange the steps in the creative process for an idea

   A. Preparation
   B. Incubation
   C. Idea incubation
   D. Verification
   E. Fluorescence / Spotlight

   Choose the correct answer from the options given below:

   1. AA, B, C, D, E
   2. BC, A, B, E, D
   3. CE, D, C, B, A
   4. DC, B, A, D, E

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

   Explanation

   In this five-step creative formulation, ideation begins with initial germination before systematic preparation, deeper incubation, breakthrough illumination, and ultimate validation.

   C, A, B, E, D

   • C (Idea incubation) represents the genesis and preliminary conception of the underlying opportunity.
   • A (Preparation) gathers data, builds knowledge, and frames the specific challenge.
   • B (Incubation) allows subconscious integration and mental recombination.
   • E (Fluorescence / Spotlight) delivers the sudden flash of insight corresponding to illumination.
   • D (Verification) subjects the breakthrough idea to empirical testing, refinement, and execution.

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7. Question 7

   Which of the following assumptions are central to the pecking order theory of capital structure?

   A. Managers have more information about their firm's value than investors
   B. Asymmetric information exist between managers and the investors
   C. Issuing equity indicates that the current share price is overvalued
   D. Firms always aim for well-defined debt equity target
   E. Equity is cheaper than debt as free source of raising finance

   Choose the correct answer from the options given below:

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

   Answer: (B) A, B, C Only

   Explanation

   Stewart Myers and Nicolas Majluf formulated the pecking order theory around asymmetric information, where managers possess superior insight into asset values compared to external financiers.

   • A, B, and C are correct — managers know more than market participants, generating information asymmetry that leads investors to interpret equity issuance as a signal that the stock is overvalued.
   • D is incorrect — pecking order theory posits that leverage fluctuates with funding deficits, lacking a rigid debt-to-equity target ratio.
   • E is incorrect — external equity is the most expensive financing source due to severe adverse selection discounts and underwriting expenses.

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8. Question 8

   Arrange the steps in rational decision making.

   A. Evaluate the alternatives
   B. Develop the alternatives
   C. Allocate weights to the criteria
   D. Identify the decision criteria
   E. Define the problem

   Choose the correct answer from the options given below:

   1. AE, D, C, B, A
   2. BA, B, C, D, E
   3. CB, C, D, E, A
   4. DC, D, E, A, B

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

   Explanation

   The classic rational decision-making model progresses from problem diagnosis to criteria weighting, alternative generation, and comparative evaluation.

   E, D, C, B, A

   • E (Define the problem) establishes the discrepancy between current and desired states.
   • D (Identify the decision criteria) determines relevant parameters governing the outcome.
   • C (Allocate weights to the criteria) prioritizes criteria by organizational significance.
   • B (Develop the alternatives) lists viable potential courses of action.
   • A (Evaluate the alternatives) critically scores each option against weighted criteria.

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9. Question 9

   The error arising from the treatment of revenue expenditure as capital expenditure and vice-versa, is termed as :

   1. AError of Omission
   2. BError of Principle
   3. CError of Compensation
   4. DError of Recognition

   Answer: (B) Error of Principle

   Explanation

   Treating revenue expenditure as capital expenditure violates the foundational accounting principle distinguishing temporary operational costs from long-term asset acquisition.

   • A. Error of Omission — happens when a business transaction is entirely or partially left unrecorded in the journals or ledgers.
   • B. Error of Principle — correct. Occurs when transactions are recorded in breach of recognized accounting principles, such as capitalizing routine building repairs.
   • C. Error of Compensation — occurs when two separate ledger calculation errors offset each other exactly in total value.
   • D. Error of Recognition — relates to improper timing of revenue or expense recognition rather than misclassification between capital and revenue outlays.

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10. Question 10

    Expatriates are:

    1. ANoncitizens of the countries in which employee are working
    2. BHost Country Nationals
    3. CHome Country Nationals
    4. DThird Country Nationals

    Answer: (A) Noncitizens of the countries in which employee are working

    Explanation

    In international human resource management, an expatriate is an employee posted to work in a foreign nation of which they are not a citizen.

    • A. Noncitizens of the countries in which employee are working — correct. This umbrella definition captures both parent-country nationals and third-country nationals assigned abroad.
    • B. Host Country Nationals — employees who are citizens of the country where the foreign subsidiary is operating.
    • C. Home Country Nationals — employees who hold citizenship in the parent firm's home headquarters nation.
    • D. Third Country Nationals — employees working outside their native country in a nation that is neither the parent nor the host location.

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11. Question 11

    Match List-I with List-II:

    List-I (Women Entrepreneurs)	List-II (Enterprise)
    A. Richa Kar	I. Zivame
    B. Kiran Mazumdar Shaw	III. Biocon Limited
    C. Kalpana Saroj	II. Kamani Tubes
    D. Falguni Nair	IV. Nykaa

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

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

    Explanation

    Prominent Indian women business leaders are paired with their flagship ventures:

    A-I, B-III, C-II, D-IV

    • A. Richa Kar (I) — pioneered online lingerie commerce in India by founding Zivame.
    • B. Kiran Mazumdar Shaw (III) — established and scaled Biocon Limited into a premier biopharmaceutical corporation.
    • C. Kalpana Saroj (II) — turned around and revitalized industrial enterprise Kamani Tubes as a celebrated entrepreneur.
    • D. Falguni Nair (IV) — founded Nykaa, creating a dominant beauty and fashion omnichannel platform.

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12. Question 12

    Which of the following are implications of e-HRM?

    A. PERT
    B. CPM
    C. Recruitment
    D. Selection
    E. Training

    Choose the correct answer from the options given below:

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

    Answer: (A) C, D, E Only

    Explanation

    Electronic human resource management (e-HRM) applies digital portals and web-based applications to core personnel functions rather than general project management scheduling tools.

    • C, D, and E are correct — recruitment, applicant selection, and employee training are transformed through e-recruiting job boards, online screening algorithms, and learning management systems.
    • A and B are incorrect — PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are operations research tools for project network scheduling, not e-HRM functional applications.

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13. Question 13

    Arrange the stages of group development in proper sequence.

    A. Performing
    B. Norming
    C. Storming
    D. Forming
    E. Adjourning

    Choose the correct answer from the options given below:

    1. AA, B, C, D, E
    2. BB, C, D, E, A
    3. CC, D, E, A, B
    4. DD, C, B, A, E

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

    Explanation

    Bruce Tuckman established that team maturation proceeds through five predictable developmental milestones.

    D, C, B, A, E

    • D (Forming) involves member orientation, boundary testing, and setting baseline expectations.
    • C (Storming) features interpersonal friction, conflict over leadership, and role negotiation.
    • B (Norming) develops group cohesion, mutual expectations, and shared standards of performance.
    • A (Performing) focuses concerted collective effort on efficient task execution.
    • E (Adjourning) manages closure, task completion, and team disbandment.

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14. Question 14

    Match List - I with List - II:

    List - I	List - II
    A. Net Present Value (NPV)	I. Ratio of present value of cash inflows to initial investment
    B. Internal Rate of Return (IRR)	II. Discount rate at which NPV is zero
    C. Profitability Index (PI)	III. Difference between present value of cash inflows and cash outflows
    D. Payback Period	IV. Time required to recover the initial investment

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

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

    Explanation

    Capital budgeting appraisal techniques are matched with their defining mathematical relationships:

    A-III, B-II, C-I, D-IV

    • A. Net Present Value (III) — calculates the net difference between the discounted present value of incoming cash flows and outgoing capital outlays.
    • B. Internal Rate of Return (II) — the exact discount hurdle rate that equates present value of inflows to initial outlay, making net present value zero.
    • C. Profitability Index (I) — represents the ratio of discounted cash inflows relative to the initial required capital investment.
    • D. Payback Period (IV) — counts the time span needed for undiscounted or discounted cash receipts to fully recover the original investment.

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15. Question 15

    According to eclectic theory of foreign direct investment, foreign direct investment will occur on which of the following conditions when they are to be uniquely combined?

    A. Ownership
    B. Location
    C. Market power
    D. Internationalization
    E. Vertical integration

    Choose the correct answer from the options given below:

    1. AB, C, D and E Only
    2. BA, C, D and E Only
    3. CD and E Only
    4. DA, B and D Only

    Answer: (D) A, B and D Only

    Explanation

    John Dunning's OLI eclectic framework requires an enterprise to simultaneously possess three distinct advantages to justify foreign direct investment over exporting or licensing.

    • A, B, and D are correct — Ownership advantages (proprietary assets or patents), Location advantages (host country market size or natural resources), and Internalization advantages (rendered here as Internationalization) form the OLI paradigm.
    • C and E are incorrect — while market power and vertical integration explain specific business strategies, they are not individual legs of Dunning's canonical OLI framework.

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16. Question 16

    Arrange the process of capital budgeting in proper sequence.

    A. Identification of potential investment opportunities
    B. Decision making
    C. Assembling of proposed investments
    D. Preparation of capital budget and appropriation
    E. Implementation

    Choose the correct answer from the options given below:

    1. AB, A, C, D, E
    2. BE, A, C, B, D
    3. CD, B, A, E, C
    4. DA, C, B, D, E

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

    Explanation

    Capital expenditure management follows a disciplined sequence from proposal origination through project screening, final authorization, formal budgeting, and project execution.

    A, C, B, D, E

    • A (Identification of potential investment opportunities) originates innovative project ideas across operational departments.
    • C (Assembling of proposed investments) consolidates, classifies, and filters submissions.
    • B (Decision making) evaluates cash flows using DCF appraisal methods to select viable projects.
    • D (Preparation of capital budget and appropriation) assigns capital funds and secures board appropriation.
    • E (Implementation) executes procurement, installation, and project management.

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17. Question 17

    Which of the following statements are True?

    A. Preference capital represents a hybrid form of financing.
    B. Preference capital carries definite legal obligation.
    C. Retained earnings represent the profits ploughed back in the business.
    D. Disadvantages of equity capital are that it represents a permanent source of finance.
    E. Equity share holders do not have right to claim over assets in the event of liquidation.

    Choose the correct answer from the options given below:

    1. AB and E Only
    2. BA and C Only
    3. CB and D Only
    4. DA and C Only

    Accepted answers: (B) A and C Only, (D) A and C Only

    Explanation

    Evaluation of financing instruments shows that statements A and C are factually correct, making both duplicate options B and D valid accepted answers.

    • A is true — preference share capital combines features of debt (fixed dividend rate) and equity (no voting control in normal course).
    • B is false — paying preference dividend is not a mandatory legal obligation unless distributable profits exist and dividends are formally declared.
    • C is true — retained earnings are accumulated operational profits reinvested into business expansion.
    • D is false — permanence of equity capital is a major advantage for financial solvency, not a corporate disadvantage.
    • E is false — equity holders possess the ultimate residual claim on net assets upon liquidation.

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18. Question 18

    Match List - I with List - II:

    List - I	List - II
    A. OLAP	I. Breaks big-data problems into sub-problems and distributes them across nodes
    B. Hadoop	II. Finds hidden patterns, infers rules and predicts future behaviour
    C. Data Mart	III. Summarized/focused portion of an organization's database for a specific group of users
    D. Data Mining	IV. Enables multidimensional analysis of the same data

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

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

    Explanation

    Key enterprise data architecture and analytical systems correspond to their technical definitions:

    A-IV, B-I, C-III, D-II

    • A. OLAP (IV) — Online Analytical Processing uses multidimensional data cubes for slicing, dicing, and aggregation.
    • B. Hadoop (I) — distributed computing framework that partitions massive datasets into parallel tasks across clusters.
    • C. Data Mart (III) — targeted subject-oriented repository serving the analytical needs of a single department.
    • D. Data Mining (II) — extracts hidden patterns, associations, and predictive insights from large historical datasets.

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19. Question 19

    Find out the correct options from the following.

    A. A future contract is custom designed.
    B. Buying a put option is equivalent to buying insurance.
    C. The cost of carry is not the cost of holding a security.
    D. The difference between the spot price and the future price is called the basis.
    E. An American option can be exercised only at its expiration date

    Choose the most appropriate answer from the options given below:

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

    Answer: (B) B and D Only

    Explanation

    Derivative instruments possess standardized contractual mechanics and risk-mitigation properties that confirm statements B and D:

    • B is correct — purchasing a put option fixes a minimum selling price for an asset, providing downside insurance against falling prices.
    • D is correct — the basis is defined mathematically as spot price minus futures price.
    • A is incorrect — futures contracts are standardized exchange-traded contracts — forward contracts are custom designed.
    • C is incorrect — cost of carry directly measures financing interest, storage fees, and insurance associated with holding the asset.
    • E is incorrect — American options permit exercise at any point prior to or on the expiration date — European options are restricted to expiration only.

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20. Question 20

    Which of the followings are the types of personality according to Holland's Typology?

    A. Realistic
    B. Investigative
    C. Social
    D. Extrovert
    E. Introvert

    Choose the correct answer from the options given below:

    1. AC, D and E Only
    2. BB, C and D Only
    3. CA, B and C Only
    4. DD, E and B Only

    Answer: (C) A, B and C Only

    Explanation

    John Holland's RIASEC vocational typology classifies occupational personalities into six distinct orientations: Realistic, Investigative, Artistic, Social, Enterprising, and Conventional.

    • A, B, and C are correct — Realistic, Investigative, and Social are core personality types in the RIASEC framework.
    • D and E are incorrect — Extrovert and Introvert are personality traits from Carl Jung's psychological types and the Myers-Briggs Type Indicator (MBTI), not Holland's occupational model.

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21. Question 21

    Which of the following concept relates to the statement "A process by which individuals organize and interpret their sensory impressions to give meaning to their environment" ?

    1. AAttitude
    2. BAptitude
    3. CPerception
    4. DIntuition

    Answer: (C) Perception

    Explanation

    Perception is defined in organizational behavior as the psychological process through which sensory stimuli are selected, organized, and interpreted into a meaningful mental model of the environment.

    • A. Attitude — an evaluative belief or feeling predisposing an individual to react favorably or unfavorably toward objects or persons.
    • B. Aptitude — an innate or acquired capacity to learn and perform specialized tasks.
    • C. Perception — correct. Matches Stephen Robbins' standard definition of how individuals filter and interpret environmental sensory impressions.
    • D. Intuition — a subconscious decision-making process distilled out of accumulated life experiences.

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22. Question 22

    A relatively large, low cost, high volume, self-service operation designed to serve the consumer's needs for household products is:

    1. ADepartment Store
    2. BConvenience Store
    3. CSuper Store
    4. DSuper Market

    Answer: (D) Super Market

    Explanation

    Philip Kotler defines a supermarket as a large, low-cost, low-margin, high-volume, self-service retail operation designed to serve broad consumer requirements for food and household items.

    • A. Department Store — carries broad product lines like clothing and furnishings with extensive customer service rather than pure self-service low-margin operations.
    • B. Convenience Store — a compact retail outlet located near residential areas offering high-turnover items at higher prices with long opening hours.
    • C. Super Store — significantly larger format meeting total food and non-food needs, including dry cleaning, pharmacy, and banking services.
    • D. Super Market — correct. Represents the classic low-cost, high-volume self-service retail model for groceries and routine household supplies.

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23. Question 23

    Which ratio measures the amount that investors are willing to pay for each rupee of earnings; where higher the ratio, the larger the investors confidence in the firm's future ?

    1. APrice/Earning Ratio
    2. BEarning per Share
    3. CDividend Payout Ratio
    4. DReturn of Capital Employed

    Answer: (A) Price/Earning Ratio

    Explanation

    The Price/Earnings (P/E) ratio compares the current market price of a stock against its earnings per share, showing market willingness to pay for each rupee of corporate profit.

    • A. Price/Earning Ratio — correct. Higher P/E multiples signal elevated investor optimism regarding future earnings growth.
    • B. Earning per Share — quantifies the absolute net profit attributable to each outstanding equity share rather than market valuation.
    • C. Dividend Payout Ratio — reflects the percentage of net profit distributed to shareholders as cash dividends.
    • D. Return of Capital Employed — evaluates operational profitability relative to total capital invested in business assets.

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24. Question 24

    Arrange the steps for calculating portfolio expected return.

    A. Multiply weight of each asset with its expected return
    B. Add all the weighted return
    C. Identifying weights of individual securities
    D. Compute expected return of the portfolio

    Choose the correct answer from the options given below:

    1. AC, A, B, D
    2. BA, B, C, D
    3. CC, B, A, D
    4. DB, A, C, D

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

    Explanation

    The expected return of a multi-asset portfolio is the weighted average of the expected returns of its individual asset holdings.

    C, A, B, D

    • C (Identifying weights of individual securities) determines the capital allocation proportion for each constituent asset.
    • A (Multiply weight of each asset with its expected return) scales each asset's expected return by its respective portfolio weight.
    • B (Add all the weighted return) aggregates the individual weighted products across the entire asset bundle.
    • D (Compute expected return of the portfolio) concludes and validates the total expected portfolio return.

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25. Question 25

    Match List - I with List - II:

    List - I	List - II
    A. Trait theory	I. Readiness or maturity of followers determines the appropriate leadership style
    B. Behavioural theory	II. Stress affects the use of intelligence and experience as cognitive resources
    C. Cognitive resource theory	III. Specific behaviours differentiate leaders from non-leaders
    D. Situational leadership theory	IV. Personal qualities differentiate leaders from non-leaders

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

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

    Explanation

    Major leadership perspectives emphasize different core drivers of effective managerial influence:

    A-IV, B-III, C-II, D-I

    • A. Trait theory (IV) — focuses on innate personal characteristics and enduring qualities that distinguish leaders.
    • B. Behavioural theory (III) — emphasizes observable leader actions like task-oriented versus relationship-oriented leadership.
    • C. Cognitive resource theory (II) — explains how psychological stress moderates the effect of intelligence and experience on performance.
    • D. Situational leadership theory (I) — matches directive and supportive behavior to the maturity and competence of followers.

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26. Question 26

    Which of the following are characteristics of a Normal probability distribution?

    A. The two tails of normal curve extend to infinity in both directions and never touch horizontal axis
    B. Normal curve is symmetrical around vertical line
    C. The values of mean, median and mode are equal
    D. Mean and variance of the distribution are equal
    E. Mean and standard deviation are equal

    Choose the correct answer from the options given below:

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

    Answer: (D) A, B and C Only

    Explanation

    The normal probability distribution is a symmetrical bell-shaped curve whose central location parameters coincide and whose tails approach the baseline asymptotically.

    • A is correct — the curve extends infinitely in both directions without ever intersecting the horizontal axis.
    • B is correct — the distribution is perfectly symmetrical about the central vertical axis passing through the mean.
    • C is correct — unimodal symmetry ensures that the mean, median, and mode are identical.
    • D is incorrect — mean and variance are independent parameters that are rarely identical in a normal distribution.
    • E is incorrect — the mean and standard deviation represent distinct dimensional measures and need not be equal.

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27. Question 27

    Which of the following are components of Agile supply chain?

    A. Virtual
    B. Market sensitive
    C. Pickup fulfillment
    D. Process integration
    E. Store based fulfillment

    Choose the most appropriate answer from the options given below:

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

    Answer: (B) A, B and D Only

    Explanation

    Martin Christopher defines an agile supply chain around four core structural capabilities: market sensitivity, virtual enterprise linkages, process integration, and network orchestration.

    • A, B, and D are correct — market sensitivity reads real-time demand, virtual linkages share information electronically, and process integration aligns cross-functional buyer-supplier workflows.
    • C and E are incorrect — pickup fulfillment and store-based fulfillment are specific retail logistics delivery methods rather than foundational dimensions of agile supply chain architecture.

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28. Question 28

    Which of the following are the new organization structure?

    A. The team structure
    B. The virtual structure
    C. Boundary less structure
    D. The Matrix structure
    E. The sample structure

    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, B and E Only

    Answer: (A) A, B and C Only

    Explanation

    Modern organizational design theory identifies team structures, virtual organizations, and boundaryless designs as contemporary flexible alternatives to traditional bureaucratic departmentalization.

    • A, B, and C are correct — the team structure breaks departmental barriers, the virtual structure relies on outsourced networks, and the boundaryless organization eliminates vertical and horizontal boundaries.
    • D is excluded — the matrix structure is classified as an established hybrid design combining functional and product lines rather than a modern new design option.
    • E is incorrect — sample structure is not an recognized organizational design framework.

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29. Question 29

    Which of the following is not covered under HR Audit?

    1. AJob Descriptions
    2. BRecruitment and Selection
    3. CMandated Benefits
    4. DBalanced Scorecard

    Answer: (D) Balanced Scorecard

    Explanation

    A Human Resource Audit examines operational HR documentation, administrative practices, and statutory compliance, whereas the Balanced Scorecard is an overarching corporate strategic measurement system.

    • A. Job Descriptions — evaluated during an HR audit to verify role clarity and task currency.
    • B. Recruitment and Selection — audited for compliance with fair hiring laws and procedural consistency.
    • C. Mandated Benefits — audited to ensure full compliance with statutory labor welfare enactments.
    • D. Balanced Scorecard — correct. Developed by Kaplan and Norton as a strategic performance management tool, it is not a routine departmental component inspected under an HR compliance audit.

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30. Question 30

    Which of the following types of entrepreneurs are based on personality traits?

    A. Franchises
    B. The real manager
    C. The achiever
    D. Industrial entrepreneur
    E. Owner-cum-manager

    Choose the most appropriate answer from the options given below:

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

    Answer: (B) B and C Only

    Explanation

    John Miner's psychological model classifies entrepreneurs into four distinct types based on personality traits and motivational patterns.

    • B and C are correct — The Real Manager and The Personal Achiever represent psychological archetypes categorized by managerial motivation and achievement orientation.
    • A, D, and E are incorrect — franchises, industrial entrepreneurs, and owner-managers are categorizations based on legal affiliation, industry sector, or operational role rather than personality trait theory.

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31. Question 31

    Arrange the following steps in the correct sequence in the budgetary control system.

    A. Preparation of budgets for different departments
    B. Comparison of actual performance with budgeted figures
    C. Establishment of objectives and budget key factors
    D. Analysis of variances
    E. Taking correlative actions

    Choose the correct answer from the options given below:

    1. AC, B, D, A, E
    2. BC, A, B, D, E
    3. CC, B, A, D, E
    4. DA, C, D, B, E

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

    Explanation

    A budgetary control system functions as a systematic management control loop starting from target formulation through execution tracking and corrective adjustment.

    C, A, B, D, E

    • C (Establishment of objectives and budget key factors) defines strategic goals and identifies constraining principal budget factors.
    • A (Preparation of budgets for different departments) builds detailed operational and functional estimates.
    • B (Comparison of actual performance with budgeted figures) gathers actual operational results and benchmarks them against targets.
    • D (Analysis of variances) computes deviations and isolates assignable causes.
    • E (Taking correlative actions) implements corrective measures to restore operations to target trajectory.

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32. Question 32

    Which of the following is not a determinant of demand?

    1. APrice of Goods
    2. BConsumer Income
    3. CCost of Production
    4. DConsumer Preferences

    Answer: (C) Cost of Production

    Explanation

    Cost of production determines the supply curve and seller offer prices rather than the willingness and ability of buyers to purchase goods in the market.

    • A. Price of Goods — a primary determinant of demand reflecting price responsiveness along the demand curve.
    • B. Consumer Income — shifts purchasing power and purchasing volume for normal and inferior goods.
    • C. Cost of Production — correct. Raw material and manufacturing input expenses govern supply decisions, not demand formation.
    • D. Consumer Preferences — subjective tastes and brand affinity directly determine consumer demand.

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33. Question 33

    Which of the following is not an advantage of merger?

    1. AIncreased market share
    2. BSynergy
    3. CDiversification
    4. DIncreased competition

    Answer: (D) Increased competition

    Explanation

    Corporate mergers consolidate competing entities into a unified enterprise, which reduces overall market competition rather than increasing it.

    • A. Increased market share — pooling sales volumes enhances the combined entity's competitive standing.
    • B. Synergy — creates operational and financial efficiencies where the combined valuation exceeds standalone sum of parts.
    • C. Diversification — entering new markets or product lines balances cyclical cash flows and reduces systematic risk.
    • D. Increased competition — correct. Combining rival firms reduces the count of independent market competitors, elevating market concentration.

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34. Question 34

    Sequence the steps for Vogel's approximation method.

    A. Assign largest quantity as per rim requirements to the cell in the row/column with smallest cost
    B. Select largest difference of rows/columns
    C. Find difference between the two unallocated least cost cells from each row and each column
    D. Eliminate the row/column that has been satisfied
    E. Check all rim requirement conditions are met

    Choose the correct answer from the options given below:

    1. AC, B, A, D, E
    2. BA, B, C, D, E
    3. CA, C, D, E, B
    4. DC, A, D, B, E

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

    Explanation

    Vogel's Approximation Method (VAM) determines an initial feasible solution for transportation problems by prioritizing routes with the steepest unit cost penalties.

    C, B, A, D, E

    • C (Find difference between least cost cells) calculates the penalty difference for each remaining row and column.
    • B (Select largest difference) chooses the row or column bearing the highest penalty.
    • A (Assign largest quantity) allocates maximum possible freight volume to the least-cost cell in that chosen line.
    • D (Eliminate row/column) strikes out exhausted supply rows or satisfied demand columns.
    • E (Check rim requirements) verifies whether all supply availability and demand constraints are fully met.

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35. Question 35

    Which of the following are direct sellers in India?

    A. Herbalife International India
    B. Lakme products India
    C. Modicare
    D. Amway India enterprises
    E. Avon beauty products India

    Choose the most appropriate answer from the options given below:

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

    Accepted answers: (B) A, C, D and E Only, (D) A, D, C and E Only

    Explanation

    Direct selling models distribute consumer goods through person-to-person consultant networks away from permanent retail establishments.

    • A, C, D, and E are direct selling enterprises — Herbalife, Modicare, Amway, and Avon operate predominantly via direct selling independent distributor networks.
    • B is excluded — Lakme distributes cosmetics through traditional retail channels, salons, and modern trade counters.
    • Because options B and D both contain the valid set of four enterprises, both choices are accepted.

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36. Question 36

    The 'Leontiff Paradox' is in contradiction of which of the following theory?

    1. ATheory of Comparative Advantage
    2. BFactor Endowments Theory
    3. CTheory of Absolute Advantage
    4. DNeo-Mercantilism Theory

    Answer: (B) Factor Endowments Theory

    Explanation

    Wassily Leontief's 1953 empirical study of US input-output tables revealed that capital-rich United States exported labor-intensive products and imported capital-intensive goods.

    • A. Theory of Comparative Advantage — David Ricardo's classical trade theory based on comparative labor productivity differentials.
    • B. Factor Endowments Theory — correct. Eli Heckscher and Bertil Ohlin asserted that capital-abundant nations export capital-intensive goods, which Leontief's empirical findings contradicted.
    • C. Theory of Absolute Advantage — Adam Smith's principle that trade flows follow absolute manufacturing cost superiorities.
    • D. Neo-Mercantilism Theory — an economic strategy promoting continuous trade surpluses through protectionist measures.

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37. Question 37

    Match List - I with List - II:

    List - I	List - II
    A. R-chart	II. Controls process variability using sample ranges
    B. P-chart	III. Controls proportion of defectives
    C. X-chart	I. Controls process average/location
    D. C-chart	IV. Controls number of defects per item/unit

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

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

    Explanation

    Statistical process control charts are paired with their monitored process parameters:

    A-II, B-III, C-I, D-IV

    • A. R-chart (II) — monitors process variability and dispersion using sample ranges.
    • B. P-chart (III) — tracks attribute quality by evaluating the proportion of defective items.
    • C. X-chart (I) — controls process central tendency and average location across measurement samples.
    • D. C-chart (IV) — tracks attribute defect density by counting the number of defects per inspection unit.

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38. Question 38

    Match List - I with List - II:

    List - I	List - II
    A. Competition Extinguisher Pricing	II. Prices are lowered to eliminate competition
    B. Copper Pricing	III. Complex/unclear offers make price comparison difficult
    C. Price Fragmentation	IV. Each part of an offer is priced separately, increasing total cost
    D. Base Point Pricing	I. Price is based on a designated base point plus freight

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

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

    Explanation

    Pricing strategies are matched with their defining market implementations:

    A-II, B-III, C-IV, D-I

    • A. Competition Extinguisher Pricing (II) — slashes prices aggressively to squeeze competitors out of the market.
    • B. Copper Pricing (III) — constructs complex or opaque fee schedules to hinder direct price comparisons by buyers.
    • C. Price Fragmentation (IV) — unbundles pricing by charging separately for each component of an offering.
    • D. Base Point Pricing (I) — quotes prices computed from a designated geographical base location plus freight charges.

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39. Question 39

    Which of the following is not essential for nurturing Intrapreneurs?

    1. ABuilding culture and climate
    2. BBuilding Competence
    3. CBuilding relationship
    4. DLearning Sign language

    Answer: (D) Learning Sign language

    Explanation

    Corporate intrapreneurship flourishes when enterprises nurture an innovative organizational culture, develop technical competencies, and foster supportive cross-functional relationships.

    • A. Building culture and climate — essential for fostering psychological safety, tolerance for risk, and experiment encouragement.
    • B. Building Competence — essential for providing employees the managerial, technological, and commercial skills to innovate.
    • C. Building relationship — essential for securing internal sponsorship and cross-unit collaboration.
    • D. Learning Sign language — correct. Sign language is a specialized communication medium that is not a core requirement for corporate intrapreneurship development.

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40. Question 40

    Match List - I with List - II:

    List - I	List - II
    A. Monopoly	II. Single seller and no close substitutes
    B. Perfect Competition	I. Free entry and exit; homogeneous product; firms are price takers
    C. Monopolistic Competition	III. Many sellers offering differentiated products
    D. Oligopoly	IV. Firms exhibit strategic interdependence

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

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

    Explanation

    Theoretical market structures are paired with their core competitive characteristics:

    A-II, B-I, C-III, D-IV

    • A. Monopoly (II) — single firm operates as the sole seller with high entry barriers and no close substitutes.
    • B. Perfect Competition (I) — numerous small firms sell homogeneous products with free entry and exit as pure price takers.
    • C. Monopolistic Competition (III) — many competing sellers supply differentiated products with brand competition.
    • D. Oligopoly (IV) — few dominant enterprises exhibit strategic mutual interdependence in output and pricing.

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41. Question 41

    When the responsibility, scope and challenges in work is deliberately upgraded, it is known as:

    1. AJob Description
    2. BJob Enrichment
    3. CJob Rotation
    4. DJob Assignment

    Answer: (B) Job Enrichment

    Explanation

    Job enrichment vertically expands a role by infusing greater autonomy, responsibility, authority, and cognitive challenge into the employee's daily duties.

    • A. Job Description — an administrative document summarizing job title, essential responsibilities, and working conditions.
    • B. Job Enrichment — correct. Associated with Frederick Herzberg's two-factor theory, it builds motivating factors directly into the work.
    • C. Job Rotation — moving employees systematically among different tasks at the same organizational level.
    • D. Job Assignment — routine managerial allocation of specific duties to a designated staff member.

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42. Question 42

    Type II error occurs when:

    1. AH₀ (Null hypothesis) is true and is accepted
    2. BH₀ (Null hypothesis) is true and is rejected
    3. CH₀ (Null hypothesis) is false and is accepted
    4. DHₐ (Alternate hypothesis) is false and is rejected

    Answer: (C) H₀ (Null hypothesis) is false and is accepted

    Explanation

    In statistical hypothesis testing, a Type II error occurs when researchers fail to reject a false null hypothesis.

    • A. H₀ is true and is accepted — represents a correct statistical decision with confidence level 1 minus alpha.
    • B. H₀ is true and is rejected — defines a Type I error with probability equal to alpha.
    • C. H₀ is false and is accepted — correct. Defines a Type II error with probability beta, failing to recognize a genuine phenomenon.
    • D. Hₐ is false and is rejected — another way of describing a correct non-rejection of a true null hypothesis.

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43. Question 43

    Arrange the steps of designing a distribution logistics system.

    A. Finding out what the customers and channels want in product delivery
    B. Articulating the distribution objectives and prescribing the minimum service level to be ensured in product delivery
    C. Optimizing the costs of the system and tackling the cost-service tussle
    D. Finding out what competitors do
    E. Providing for flexibility in the system

    Choose the correct answer from the options given below:

    1. AA, B, C, D, E
    2. BB, A, C, D, E
    3. CC, A, B, E, D
    4. DB, A, D, C, E

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

    Explanation

    Designing an integrated physical distribution system balances customer service performance benchmarks against total logistical operational expenditures.

    B, A, D, C, E

    • B (Articulating distribution objectives) formalizes service level benchmarks such as order cycle delivery times.
    • A (Finding out customer and channel needs) surveys end-user expectations and intermediary channel requirements.
    • D (Finding out what competitors do) benchmarks logistics networks and delivery response speeds against market rivals.
    • C (Optimizing system costs) balances transportation and inventory carrying costs against required service levels.
    • E (Providing for flexibility) builds operational adaptability to withstand demand surges and supply chain disruptions.

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44. Question 44

    Which of the following is NOT a part of 4Ps of the marketing mix ?

    1. AProduct
    2. BPrice
    3. CPlace
    4. DProducer services

    Answer: (D) Producer services

    Explanation

    E. Jerome McCarthy's foundational marketing mix framework consists of four strategic tactical pillars: Product, Price, Place, and Promotion.

    • A. Product — the tangible goods or intangible services developed to satisfy target customer needs.
    • B. Price — the monetary consideration charged for the offering and associated payment terms.
    • C. Place — the distribution channels and logistics systems delivering goods to points of consumption.
    • D. Producer services — correct. Services provided to producers are an economic sector category rather than one of McCarthy's 4Ps of marketing.

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45. Question 45

    A channel structure in which producers, wholesalers and retailers act as a unified system is :

    1. AConventional Distribution Channel
    2. BDirect Marketing Channel
    3. CVertical Marketing System Channel
    4. DIndirect Marketing Channel

    Answer: (C) Vertical Marketing System Channel

    Explanation

    A Vertical Marketing System integrates producers, wholesalers, and retailers into a unified network to achieve channel coordination, cost economies, and eliminate channel conflict.

    • A. Conventional Distribution Channel — consists of independent producers, wholesalers, and retailers each seeking to maximize their own isolated profits.
    • B. Direct Marketing Channel — sells directly from the producer to final consumers without any intermediate distributors.
    • C. Vertical Marketing System Channel — correct. Operates as a coordinated unified network through common ownership, contractual agreement, or market leadership.
    • D. Indirect Marketing Channel — an umbrella term for any channel containing one or more intermediaries between producer and consumer.

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46. Question 46

    According to MM theory, the market price of the share will:

    1. AChanges after the payment of dividend.
    2. BChanges after payment of interest and tax.
    3. CWill change due to market fluctuations.
    4. DRemains unchanged even after the payment of dividend.

    Answer: (D) Remains unchanged even after the payment of dividend.

    Explanation

    Under Franco Modigliani and Merton Miller's dividend irrelevance hypothesis, dividend payments do not affect total shareholder wealth in perfect capital markets.

    • A is incorrect — while the per-share price drops by the dividend amount on the ex-dividend date, total shareholder wealth remains unaffected.
    • B is incorrect — MM's original 1961 dividend irrelevance proposition assumes the absence of corporate and personal income taxes.
    • C is incorrect — the proposition isolates corporate valuation from exogenous speculative market fluctuations.
    • D is correct — shareholder wealth remains completely unchanged because dividend receipt is fully offset by the decline in share market price.

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47. Question 47

    Which of the followings are the examples of current liabilities:

    A. Current investments
    B. Short-term borrowings
    C. Bills receivables
    D. Bills payables
    E. Accrued income

    Choose the correct answer from the options given below:

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

    Answer: (B) B and D Only

    Explanation

    Current liabilities are short-term corporate obligations expected to be settled within twelve months or the regular operating cycle of the enterprise.

    • B and D are current liabilities — short-term bank borrowings and bills payable represent short-term debt obligations.
    • A, C, and E are current assets — current investments, bills receivable from customers, and accrued revenues represent liquid resource claims owned by the business.

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48. Question 48

    General statements or understandings which guide managers' thinking in decision making are known as:

    1. APolicies
    2. BGoals
    3. CStrategy
    4. DRules

    Answer: (A) Policies

    Explanation

    Policies are standing organizational guidelines that define broad boundaries within which managerial decision-making discretion is exercised.

    • A. Policies — correct. Defined by Koontz and Weihrich as general understandings channeling managerial thoughts in decision-making.
    • B. Goals — future target endpoints toward which organizational efforts are directed.
    • C. Strategy — unified comprehensive plans linking enterprise capabilities to environmental challenges.
    • D. Rules — strict behavioral mandates requiring specific actions with zero discretion.

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49. Question 49

    Which of the following Acts were meant for labour welfare?

    A. The Factory Act, 1948
    B. The Employee Insurance Act, 1948
    C. The Payment of Gratuity Act, 1972
    D. The Consumer Protection Act, 2019
    E. The Companies Act, 2013

    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. DC, D and A Only

    Answer: (A) A, B and C Only

    Explanation

    Indian labor welfare legislation protects industrial worker safety, healthcare, sickness insurance, and post-employment social security.

    • A, B, and C are correct — The Factories Act (1948) mandates factory health and safety, The Employees State Insurance Act (1948) provides medical and maternity benefits, and The Payment of Gratuity Act (1972) secures terminal retirement gratuity.
    • D is incorrect — The Consumer Protection Act (2019) defends consumer rights against unfair trade practices.
    • E is incorrect — The Companies Act (2013) regulates corporate governance, incorporation, and company administration.

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50. Question 50

    Arrange the following steps of buyer decision making.

    A. Information research
    B. Evaluation of alternatives
    C. Need recognition
    D. Purchase decision
    E. Post purchase behaviour

    Choose the correct answer from the options given below:

    1. AA, B, C, D, E
    2. BC, A, B, D, E
    3. CA, C, D, E, B
    4. DB, A, D, C, E

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

    Explanation

    The consumer buying decision process moves sequentially through five psychological problem-solving stages.

    C, A, B, D, E

    • C (Need recognition) triggers the process when a perceived deficiency arises.
    • A (Information research) searches commercial and personal sources for viable solutions.
    • B (Evaluation of alternatives) compares competing brand features and utility attributes.
    • D (Purchase decision) commits to buying the most preferred brand.
    • E (Post purchase behaviour) assesses satisfaction and cognitive dissonance after product usage.

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51. Question 51

    Match List - I with List - II:

    List - I	List - II
    A. Hierarchy of Need Theory	I. Abraham Maslow
    B. Theory X and Theory Y	II. Douglas McGregor
    C. Two-Factor Theory	III. Frederick Herzberg
    D. Expectancy Theory	IV. Victor Vroom

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

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

    Explanation

    Prominent organizational psychologists and management theorists are linked with their seminal motivation theories:

    A-I, B-II, C-III, D-IV

    • A. Hierarchy of Need Theory (I) — Abraham Maslow arranged human needs into a five-tier developmental hierarchy.
    • B. Theory X and Theory Y (II) — Douglas McGregor contrasted authoritarian assumptions with participative assumptions regarding worker motivation.
    • C. Two-Factor Theory (III) — Frederick Herzberg separated intrinsic motivators from extrinsic hygiene factors in workplace satisfaction.
    • D. Expectancy Theory (IV) — Victor Vroom modeled motivation as a multiplicative function of expectancy, instrumentality, and valence.

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52. Question 52

    Arrange the following five steps of resource-based approach to strategy analysis proposed by Grant.

    A. Identify resource gaps and invest in upgrading weaknesses
    B. Select the strategy that best exploits the firms' capabilities relative to external opportunities
    C. Appraise the profit potential of these capabilities in terms of their potential for sustainable competitive advantage
    D. Combine the firm's strength into specific capabilities
    E. Identify and classify the firm's resources in terms of strength and weaknesses

    Choose the correct answer from the options given below:

    1. AC, D, E, A, B
    2. BB, A, C, D, E
    3. CA, B, C, D, E
    4. DE, D, C, B, A

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

    Explanation

    Robert M. Grant's resource-based model of competitive strategy analysis builds competitive advantage upward from foundational organizational assets.

    E, D, C, B, A

    • E (Identify and classify firm resources) catalogs tangible and intangible assets and appraises strengths and weaknesses.
    • D (Combine strengths into capabilities) identifies what the organization can accomplish through coordinated resource combinations.
    • C (Appraise profit potential) evaluates capabilities against sustainability criteria like durability and imitability.
    • B (Select strategy) chooses competitive market positions that best leverage proprietary organizational capabilities.
    • A (Identify resource gaps) plans long-term investments to overcome weaknesses and upgrade strategic assets.

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53. Question 53

    Arrange the following steps in the correct logical sequence to explain how indifference curves are derived ?

    A. The consumer plots combination of goods that provide the same satisfaction
    B. The consumer ranks preferences over combination of two goods
    C. A downward-sloping, convex indifference curve is formed
    D. The consumer reaches equilibrium where the budget line is tangent to the indifference curve

    Choose the correct answer from the options given below:

    1. AA, B, C, D
    2. BB, A, C, D
    3. CA, C, B, D
    4. DD, B, A, C

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

    Explanation

    Indifference curve analysis models consumer behavior logically from ordinal preference ranking through graphical curve formation and equilibrium optimization.

    B, A, C, D

    • B (Consumer ranks preferences) applies ordinal utility axioms to order consumption bundles.
    • A (Plots combinations providing same satisfaction) identifies locus points across which the consumer remains indifferent.
    • C (Convex curve is formed) connects plotted bundles into a downward-sloping curve exhibiting diminishing marginal rates of substitution.
    • D (Consumer reaches equilibrium) determines optimal consumption where the budget constraint is tangent to the highest attainable indifference curve.

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54. Question 54

    Encouraging customer switching to a brand is:

    1. ASales Promotion
    2. BPublicity
    3. CInformative Advertising
    4. DPersuasive Advertising

    Answer: (D) Persuasive Advertising

    Explanation

    Persuasive advertising is designed specifically to build selective brand preference and convince consumers to switch from competing alternatives.

    • A. Sales Promotion — short-term tactical incentives like coupons or price discounts intended to accelerate immediate purchase volume.
    • B. Publicity — non-personal editorial coverage and third-party media mentions without direct corporate sponsorship payments.
    • C. Informative Advertising — builds primary category awareness and explains technical product features for new offerings.
    • D. Persuasive Advertising — correct. Emphasizes distinctive value propositions to shift buyer loyalty away from rival brands.

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55. Question 55

    Match List - I with List - II:

    List - I	List - II
    A. Liquidity Ratio	II. Ability to meet short-term obligations
    B. Activity Ratio	III. Efficiency of asset utilisation
    C. Profitability Ratio	I. Assesses operating performance/profitability
    D. Debt Ratio	IV. Ability to manage fixed financial obligations

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

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

    Explanation

    Financial statement ratios evaluate distinct dimensions of corporate performance and solvency:

    A-II, B-III, C-I, D-IV

    • A. Liquidity Ratio (II) — measures corporate capacity to satisfy maturing short-term financial obligations.
    • B. Activity Ratio (III) — gauges the operational speed and efficiency with which enterprise assets are utilized.
    • C. Profitability Ratio (I) — evaluates operational earnings capacity and return generation relative to revenue and capital.
    • D. Debt Ratio (IV) — assesses long-term solvency and leverage capacity to manage fixed interest and principal commitments.

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56. Question 56

    Countries try to hold the value of their currencies within some range against an important reference currency or a 'basket' of currencies, is referred to as:

    1. ADirty-float system.
    2. BPegged exchange rate
    3. CFixed exchange rate
    4. DExtended exchange facility

    Answer: (B) Pegged exchange rate

    Explanation

    A pegged exchange rate regime commits monetary authorities to stabilize domestic currency valuation within a predetermined target band relative to an anchor currency or trade-weighted composite currency basket.

    • A. Dirty-float system — a floating exchange rate system where the central bank intervenes intermittently without announcing a target band.
    • B. Pegged exchange rate — correct. Formally binds currency fluctuations to a reference currency or currency basket within defined margins.
    • C. Fixed exchange rate — ties exchange rates to a single immutable parity with zero permissible band variance.
    • D. Extended exchange facility — a medium-term International Monetary Fund lending program supporting structural macroeconomic stabilization.

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57. Question 57

    Match List - I with List - II:

    List - I	List - II
    A. Furniture	I. Job Costing
    B. Cement	II. Output Costing
    C. Petroleum	III. Process Costing
    D. Interior Decoration	IV. Operating Costing

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

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

    Explanation

    Manufacturing and service sectors apply costing methodologies tailored to their production flow characteristics:

    A-I, B-II, C-III, D-IV

    • A. Furniture (I) — applies job costing because individual batches and pieces are produced against custom customer specifications.
    • B. Cement (II) — applies output or single unit costing for homogeneous bulk continuous manufacturing.
    • C. Petroleum (III) — applies process costing to track continuous chemical refining stages across uniform output.
    • D. Interior Decoration (IV) — is matched to operating costing in this examination key.

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58. Question 58

    Finance function involves:

    1. AProcurement of finance only
    2. BExpenditure of funds only
    3. CSafe custody of funds only
    4. DProcurement and effective utilization of funds

    Answer: (D) Procurement and effective utilization of funds

    Explanation

    Modern managerial finance integrates both resource acquisition at minimum cost and productive capital deployment to maximize shareholder wealth.

    • A. Procurement of finance only — reflects the outdated traditional view of corporate finance restricted to fundraising.
    • B. Expenditure of funds only — captures capital budgeting disbursement without addressing capital sourcing.
    • C. Safe custody of funds only — describes a routine treasury cash management task rather than broad corporate finance.
    • D. Procurement and effective utilization of funds — correct. Modern corporate finance unites fund procurement, investment allocation, and dividend distribution.

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59. Question 59

    The Cost of Capital is:

    1. AThe fee required to sell stock using financial institution.
    2. BThe amount you pay to be an investor.
    3. CThe required rate of return to appease the supplier of a certain kind of funding to be utilized in the organization.
    4. DThe sum required to finance a specific purchase.

    Answer: (C) The required rate of return to appease the supplier of a certain kind of funding to be utilized in the organization.

    Explanation

    Cost of capital represents the minimum hurdle rate of return that an enterprise must earn on its investments to satisfy the opportunity return demands of its equity and debt investors.

    • A. Fee required to sell stock — represents flotation costs and underwriting fees rather than the ongoing cost of capital.
    • B. Amount paid to be an investor — denotes the purchase price of a financial asset.
    • C. Required rate of return to appease funding suppliers — correct. Matches the standard financial definition of the minimum yield required by capital providers.
    • D. Sum required to finance a purchase — refers to gross capital expenditure outlay.

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60. Question 60

    Which one of the following is not the Central Trade Union of India ?

    1. AINTUC
    2. BThe AFL-CIO
    3. CCITU
    4. DBMS

    Answer: (B) The AFL-CIO

    Explanation

    The AFL-CIO is the largest national federation of labor unions in the United States rather than an Indian central trade union organization.

    • A. INTUC — Indian National Trade Union Congress, affiliated with the Indian National Congress.
    • B. The AFL-CIO — correct. The American Federation of Labor and Congress of Industrial Organizations operates exclusively in the United States.
    • C. CITU — Centre of Indian Trade Unions, affiliated with the CPI(M).
    • D. BMS — Bharatiya Mazdoor Sangh, India's largest national central trade union organization.

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61. Question 61

    Which of the following are not directly financing small scale industries?

    A. Small Industries Development Bank of India (SIDBI)
    B. World Bank
    C. Industrial Development Bank of India (IDBI)
    D. International Monetary Fund (IMF)
    E. National Small Industries Corporation Ltd. (NSIC)

    Choose the most appropriate answer from the options given below:

    1. AB, C and D Only
    2. BA and B Only
    3. CA and C Only
    4. DA and E Only

    Answer: (A) B, C and D Only

    Explanation

    Small enterprise financing in India relies on dedicated domestic development bodies, whereas global financial agencies and apex development banks do not extend direct retail credit to small manufacturing units.

    • B, C, and D are correct — The World Bank finances broad national infrastructure, IDBI historically catered to heavy corporate industry, and the IMF resolves sovereign balance of payments crises.
    • A and E are excluded — SIDBI and NSIC are statutory Indian agencies established expressly to provide direct and refinance credit and marketing facilities to small-scale enterprises.

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62. Question 62

    Arrange the steps involved in the case-based reasoning

    A. System finds closest fit and retrieves solution
    B. System asks user additional questions to narrow search
    C. System modifies the solution to better fit the problem and got successful
    D. System searches data base for similar cases
    E. User describes the problem

    Choose the correct answer from the options given below:

    1. AD, B, A, C, E
    2. BE, B, D, A, C
    3. CE, D, B, A, C
    4. DB, A, C, E, D

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

    Explanation

    Conversational case-based reasoning executes an interactive problem-solving cycle to adapt past successful precedents to new diagnostic challenges.

    E, D, B, A, C

    • E (User describes the problem) enters the initial symptoms and parameters.
    • D (System searches database for similar cases) queries historical case libraries.
    • B (System asks additional questions) prompts the user for discriminating attributes to refine candidate matches.
    • A (System finds closest fit and retrieves solution) pulls the most relevant historical precedent.
    • C (System modifies solution to better fit problem) adapts the retrieved approach to deliver a tailored successful outcome.

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63. Question 63

    Match List - I with List - II:

    List - I	List - II
    A. Personnel Management	I. Profit-maximisation / administrative employee contribution focus
    B. Human Resource Management	IV. Development of employee attitudes, skills and capabilities
    C. Industrial Relations	II. Amicable employer-employee relations
    D. International HRM	III. Human-resource issues in international operations

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

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

    Explanation

    Evolving employee relations paradigms correspond to their strategic scopes and functional emphases:

    A-I, B-IV, C-II, D-III

    • A. Personnel Management (I) — emphasizes administrative routine, employee contribution tracking, and cost control.
    • B. Human Resource Management (IV) — focuses on continuous development of worker capabilities, attitudes, and human capital potential.
    • C. Industrial Relations (II) — centers on collective bargaining, dispute settlement, and cordial union-employer relationships.
    • D. International HRM (III) — manages staffing, cross-cultural adjustment, and compliance across multinational subsidiary networks.

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64. Question 64

    Which barrier is caused by the unwillingness of service providers to provide necessary resources?

    1. AMisconception barrier
    2. BInadequate resources barrier
    3. CInadequate delivery barrier
    4. DExaggerated promise's barrier

    Answer: (B) Inadequate resources barrier

    Explanation

    In service quality gap frameworks, service delivery deficits stemming directly from management's failure to provide adequate funding, tools, or staffing constitute the inadequate resources barrier.

    • A. Misconception barrier — arises when management misinterprets customer service expectations.
    • B. Inadequate resources barrier — correct. Reflects an institutional unwillingness or inability to allocate sufficient operational resources to fulfill specified service standards.
    • C. Inadequate delivery barrier — occurs when frontline personnel fail to execute service specifications despite resource availability.
    • D. Exaggerated promise's barrier — occurs when external marketing communications overstate actual service performance capabilities.

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65. Question 65

    When NPV and IRR give different rankings, which of the following problem is the cause of disparity that arises when the initial investment in mutually exclusive projects is different ?

    1. ATime-Disparity
    2. BSize-Disparity
    3. CUnequal Expected Lives
    4. DConventional Equivalent

    Answer: (B) Size-Disparity

    Explanation

    Appraisal conflicts between Net Present Value and Internal Rate of Return in mutually exclusive projects originate from size disparity when project initial investment outlays differ substantially.

    • A. Time-Disparity — occurs when cash flow trajectories differ, such as front-loaded versus back-loaded cash inflows.
    • B. Size-Disparity — correct. Arises because a smaller project can yield a higher percentage IRR while a larger project generates a larger absolute rupee NPV.
    • C. Unequal Expected Lives — occurs when mutually exclusive investment alternatives operate over unequal economic horizons.
    • D. Conventional Equivalent — an appraisal adjustment mechanism rather than an underlying cause of ranking conflict.

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66. Question 66

    Which one is not the form of discrimination ?

    1. ASexual Harassment
    2. BExclusion
    3. CIntimidation
    4. DGroup Cohesiveness

    Answer: (D) Group Cohesiveness

    Explanation

    Workplace discrimination encompasses unfair practices that disadvantage individuals based on demographic identities, whereas group cohesiveness is a constructive team performance dynamic.

    • A. Sexual Harassment — unwelcome sexual advances creating an intimidating workplace environment.
    • B. Exclusion — isolating certain employees from professional opportunities, committee assignments, or social networks.
    • C. Intimidation — overt bullying and hostility aimed at specific organizational members.
    • D. Group Cohesiveness — correct. A positive social dimension reflecting mutual solidarity and shared commitment among team members.

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67. Question 67

    Which of the following is incorrect ?

    1. Abxy = 0.8, byx = 0.8
    2. Bbxy = 1.2, byx = 1.2
    3. Cbxy = 1.2, byx = 0.8
    4. Dbxy = 0.8, byx = 1.2

    Answer: (B) bxy = 1.2, byx = 1.2

    Explanation

    Because the correlation coefficient is the geometric mean of both regression coefficients, their product cannot exceed one.

    r = sqrt(bxy * byx)

    • A. bxy = 0.8, byx = 0.8 — product equals 0.64, yielding valid correlation r = 0.80.
    • B. bxy = 1.2, byx = 1.2 — incorrect and mathematically impossible. The product equals 1.44, producing an impossible correlation coefficient r = 1.20 that violates the theoretical upper bound of 1.0.
    • C. bxy = 1.2, byx = 0.8 — product equals 0.96, yielding valid correlation r = 0.98.
    • D. bxy = 0.8, byx = 1.2 — product equals 0.96, yielding valid correlation r = 0.98.

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68. Question 68

    Which of the following is the right sequence of Employability Skills Matrix (ESM) ?

    1. ACritical thinking, Communication, Collaboration, Knowledge and Social responsibility
    2. BCommunication, Colaboration, Knowledge, Social responsibility and Critical thinking
    3. CCollaboration, Knowledge, Social responsibility, Critical thinking and Communication
    4. DKnowledge, Social responsibility, Critical thinking, Communication and Collaboration

    Answer: (A) Critical thinking, Communication, Collaboration, Knowledge and Social responsibility

    Explanation

    The Employability Skills Matrix organizes foundational workforce competencies sequentially from analytical reasoning through interpersonal skills, domain proficiency, and societal ethics.

    • A. Critical thinking, Communication, Collaboration, Knowledge and Social responsibility — correct. Establishes the standard pedagogical progression from individual analytical discernment to team coordination and ethical responsibility.
    • B, C, and D are incorrect — these options scramble the developmental progression across foundational thinking, communicative exchange, and professional knowledge domains.

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69. Question 69

    Match List - I with List - II:

    List - I	List - II
    A. Brand equity	IV. Goodwill/intangible value attached to a brand
    B. Brand extension	I. Use of an established brand name for a new product in the same market/category
    C. Brand stretching	III. Use of an established brand for products in unrelated markets/categories
    D. Brand authenticity	II. Extent to which a brand is perceived as faithful to its essence/values

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

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

    Explanation

    Brand strategy concepts are paired with their core market definitions:

    A-IV, B-I, C-III, D-II

    • A. Brand equity (IV) — the commercial valuation and consumer goodwill accrued to a brand name above functional asset value.
    • B. Brand extension (I) — deploying an established brand name to launch a new product within the same broad market domain.
    • C. Brand stretching (III) — launching products under a recognized brand name in completely unrelated market categories.
    • D. Brand authenticity (II) — the degree to which a brand is perceived as genuine, consistent, and faithful to its founding purpose.

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70. Question 70

    Which of the followings are the risks associated with the Generic competitive strategies suggested by Porter?

    A. Risk of Human Resources
    B. Risk of Cost leadership
    C. Risk of strategic rollup
    D. Risk of differentiation
    E. Risk of focus

    Choose the most appropriate answer from the options given below:

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

    Answer: (B) B, D and E Only

    Explanation

    Michael Porter explicitly analyzes distinct strategic vulnerabilities inherent to each of his three generic strategic positions.

    • B, D, and E are correct — Porter details the risks of Cost Leadership (imitation and technological obsolescence), Differentiation (buyer price sensitivity and erosion of perceived uniqueness), and Focus (niche erosion or broad-target encroachment).
    • A and C are incorrect — human resource risks and strategic rollup risks are general managerial challenges rather than Porter's generic strategic risk categories.

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71. Question 71

    Which of the following are methods of dispersion?

    A. Median
    B. Mean
    C. Mean deviation
    D. Standard deviation
    E. Range

    Choose the correct answer from the options given below:

    1. AA and E Only
    2. BA, C and E Only
    3. CB, C and D Only
    4. DC, D and E Only

    Answer: (D) C, D and E Only

    Explanation

    Measures of dispersion quantify the degree of spread or scatter of data observations around a central value.

    • C, D, and E are measures of dispersion — mean deviation computes average absolute deviations, standard deviation calculates root-mean-square deviations, and range measures the distance between maximum and minimum values.
    • A and B are measures of central tendency — the arithmetic mean and the median represent central location parameters rather than dispersion.

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72. Question 72

    Real-factor demand-pull inflection can be caused by:

    A. Increase in investment
    B. Decrease in consumer demand
    C. Decrease in imports given the exports
    D. Decrease in exports given the imports
    E. Decrease in government expenditure without change in tax revenue.

    Choose the correct answer from the options given below:

    1. AB and E Only
    2. BE and B Only
    3. CA and C Only
    4. DA and D Only

    Answer: (C) A and C Only

    Explanation

    Demand-pull inflation arises when aggregate demand outpaces potential output, driven by expansions in real expenditure components.

    AD = C + I + G + (X - M)

    • A is correct — autonomous increases in private investment expenditures expand aggregate demand directly.
    • C is correct — an import reduction holding exports constant expands net foreign expenditure inflows, increasing domestic aggregate demand.
    • B, D, and E are incorrect — consumer demand reductions, export declines, and government spending contractions all contract aggregate demand rather than causing demand-pull inflation.

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73. Question 73

    Which of the following behaviour corresponds to the statement "Discretionary behaviour that contributes to the psychological and social environment of the workplace"?

    1. AIndividual Behaviour
    2. BGroup Behaviour
    3. COrganizational Citizenship Behaviour
    4. DGroup Dynamics

    Answer: (C) Organizational Citizenship Behaviour

    Explanation

    Dennis Organ formulated Organizational Citizenship Behaviour as discretionary individual performance that goes beyond prescribed task roles to nurture the psychological and social fabric of the organization.

    • A. Individual Behaviour — an umbrella concept comprising all single-person workplace actions, both mandatory and discretionary.
    • B. Group Behaviour — collective interaction patterns emerging among interdependent organizational team members.
    • C. Organizational Citizenship Behaviour — correct. Captures prosocial discretionary actions like helping colleagues and demonstrating corporate sportsmanship.
    • D. Group Dynamics — the ongoing social forces and interpersonal processes operating within work groups.

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74. Question 74

    Which of the following is not a basis for behavioural segmentation?

    A. Purchase Occasion
    B. Digital Divide
    C. Usage rate of the product
    D. Benefit sought from the product
    E. Lifestyle of consumer

    Choose the most appropriate answer from the options given below:

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

    Answer: (D) B and E Only

    Explanation

    Behavioral segmentation divides consumer markets based on actual buyer knowledge, attitudes, and usage patterns rather than psychographics or socio-technological splits.

    • B and E are not behavioral bases — Lifestyle is a psychographic segmentation criterion, and Digital Divide describes a macroeconomic demographic gap in technology access.
    • A, C, and D are core behavioral bases — purchase occasion, product usage rate, and benefits sought directly reflect consumer purchasing and consumption actions.

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75. Question 75

    Which one of the following is not the method of performance appraisal?

    1. A360° Degree Appraisal
    2. BMBO
    3. CHalo effect
    4. DBARS

    Answer: (C) Halo effect

    Explanation

    The halo effect is a cognitive perceptual bias where an overall impression distorts ratings across specific traits, rather than a structured appraisal methodology.

    • A. 360° Degree Appraisal — an evaluation method collecting performance feedback from supervisors, peers, subordinates, and clients.
    • B. MBO — Management by Objectives evaluates performance against mutually agreed quantitative goals.
    • C. Halo effect — correct. A common appraisal rating error, not an appraisal technique.
    • D. BARS — Behaviorally Anchored Rating Scales benchmark performance against specific critical incident behavioral statements.

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76. Question 76

    Which transactions are classified as operating activities?

    A. Sold manufacturing plant
    B. Collected bills receivables from customers
    C. Purchase of building
    D. Paid to suppliers
    E. Issued equity shares at a premium

    Choose the most appropriate answer from the options given below:

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

    Answer: (C) B and D Only

    Explanation

    In the cash flow statement, operating activities comprise the primary revenue-producing transactions and routine commercial working capital flows of an enterprise.

    • B and D are operating activities — collecting bills receivables from trade debtors and disbursing cash payments to commercial suppliers directly impact operating working capital.
    • A and C are investing activities — selling a manufacturing plant and purchasing real estate buildings represent acquisitions and disposals of long-term productive fixed assets.
    • E is a financing activity — issuing equity share capital at a share premium alters the equity capital structure of the enterprise.

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77. Question 77

    Sequence the following activities in the process of standard costing.

    A. Establishing standard cost
    B. Measurement of actual cost
    C. Identifying variance and causes of variance
    D. Disposing the variance to cost and profit centres
    E. Comparison of actual and standard costs

    Choose the correct answer from the options given below:

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

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

    Explanation

    Standard costing operates as a formal cost control cycle establishing predetermined yardsticks to evaluate actual operating efficiency.

    A, B, E, C, D

    • A (Establishing standard cost) sets engineered benchmarks for material, labor, and overhead per unit.
    • B (Measurement of actual cost) tracks and compiles historical operating expenditures incurred during production.
    • E (Comparison of actual and standard costs) calculates net mathematical cost differences.
    • C (Identifying variance and causes) segregates variances into price, quantity, and efficiency factors to determine assignable causes.
    • D (Disposing the variance) transfers variances to cost centers and profit statements while executing corrective operational adjustments.

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78. Question 78

    Match List - I with List - II:

    List - I	List - II
    A. Par value	IV. Face value/amount the issuer repays at maturity
    B. Maturity period	II. Number of years after which principal/par value is repaid
    C. Coupon rate	I. Specified interest rate paid periodically on the bond
    D. Premium	III. Amount by which a bond sells above par value

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

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

    Explanation

    Fixed-income debt security characteristics are matched with their defining bond terminology:

    A-IV, B-II, C-I, D-III

    • A. Par value (IV) — the stated nominal face value that the bond issuer repays to the investor at maturity.
    • B. Maturity period (II) — the duration in years until the bond matures and principal repayment occurs.
    • C. Coupon rate (I) — the contractual interest rate paid periodically to the bondholder based on par value.
    • D. Premium (III) — the excess market pricing by which a bond trades above its stated face value.

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79. Question 79

    Which of the following is not a non-probability method of selecting samples from a population?

    1. AJudgement sampling
    2. BConvenience sampling
    3. CMultistage sampling
    4. DPurposive sampling

    Answer: (C) Multistage sampling

    Explanation

    Multistage sampling is a probability sampling method that selects clusters in successive hierarchical stages using objective random selection at each phase.

    • A. Judgement sampling — a non-probability technique where the researcher selects elements based on personal expertise.
    • B. Convenience sampling — a non-probability technique drawing units based on ease of access.
    • C. Multistage sampling — correct. A complex probability design ensuring every population element has a known non-zero selection chance.
    • D. Purposive sampling — another term for subjective non-probability judgement sampling targeting specific sample characteristics.

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80. Question 80

    In designing an agent in Al, PEAS stands for :

    1. APerformance, Environment, Actuators, Sensors
    2. BPerformance, Extractor, Actions, Security
    3. CProblem, Effort, Action, Sensor
    4. DProgram, Environment, Architecture, Sensors

    Answer: (A) Performance, Environment, Actuators, Sensors

    Explanation

    Stuart Russell and Peter Norvig specify the task environment of an artificial intelligence agent using the PEAS framework:

    • P (Performance measure) — the objective metric evaluating how successful an agent is in achieving its goals.
    • E (Environment) — the external domain or context within which the agent operates.
    • A (Actuators) — the mechanisms or effectors through which the agent acts upon its environment.
    • S (Sensors) — the devices or perceptual inputs through which the agent gathers state information.

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81. Question 81

    Match List - I with List - II:

    List - I	List - II
    A. Transparency	II. Clear and accurate disclosure of material facts
    B. Accountability	III. Answerability for decisions and actions
    C. Responsibility	IV. Ethical conduct and compliance with applicable laws/regulations
    D. Fairness	I. Protection of stakeholders' interests through equitable treatment

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

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

    Explanation

    Core corporate governance principles are paired with their defining institutional obligations:

    A-II, B-III, C-IV, D-I

    • A. Transparency (II) — requires clear, truthful, and timely disclosure of material operational and financial information to the public.
    • B. Accountability (III) — demands that management and directors remain answerable to shareholders for their executive decisions and corporate results.
    • C. Responsibility (IV) — obligates the board to uphold ethical conduct and maintain strict compliance with applicable regulatory frameworks.
    • D. Fairness (I) — ensures equitable protection and respect for the rights and interests of all shareholders and corporate stakeholders.

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82. Question 82

    Which of the following is characterized by the use of small, intermittent assault on different market segments held by the competitors ?

    1. AEncirclement
    2. BFlanking Maneuver
    3. CGuerrilla Warfare
    4. DFrontal Assault

    Answer: (C) Guerrilla Warfare

    Explanation

    In competitive marketing warfare, guerrilla attacks execute small, intermittent, and unconventional thrusts to harass and demoralize market leaders.

    • A. Encirclement — launches an expansive offensive across multiple product lines and market segments simultaneously.
    • B. Flanking Maneuver — attacks competitor weaknesses or under-served geographic territories away from strongholds.
    • C. Guerrilla Warfare — correct. Employs unpredictable price concessions, localized advertising bursts, and rapid skirmishes.
    • D. Frontal Assault — matches the competitor head-on directly in product quality, pricing, and distribution presence.

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83. Question 83

    Extending an existing brand name to new forms, colours, sizes or flavours of an existing product category is:

    1. ACo-branding
    2. BLine extension
    3. CBrand extension
    4. DBrand sponsorship

    Answer: (B) Line extension

    Explanation

    A line extension applies an established brand name to introduce additional items such as new flavors, package sizes, or forms within the same existing product category.

    • A. Co-branding — combines two established independent brand names on a single co-marketed product offering.
    • B. Line extension — correct. Expands varieties within the existing category under the parent brand name.
    • C. Brand extension — launches an established brand name into an entirely different product category.
    • D. Brand sponsorship — commercial alignment of a brand with external events, personalities, or entertainment entities.

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84. Question 84

    Which of the following is not the type of start up firms ?

    1. ASalary-substitute firms
    2. BLife style firms
    3. CEntrepreneurial firms
    4. DOrdinance firms

    Answer: (D) Ordinance firms

    Explanation

    Bruce Barringer and Duane Ireland classify new entrepreneurial ventures into three primary startup archetypes based on economic goals and growth trajectories.

    • A. Salary-substitute firms — small enterprises generating income levels comparable to conventional professional employment.
    • B. Life style firms — ventures established to support an owner's personal lifestyle and intrinsic passions.
    • C. Entrepreneurial firms — growth-oriented enterprises bringing innovative products or services to market.
    • D. Ordinance firms — correct. This is a spurious military-administrative classification not recognized in entrepreneurship literature.

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85. Question 85

    Cross elasticity of demand refers to:

    1. AChange in demand due to change in price.
    2. BChange in demand due to change in income.
    3. CChange in demand due to change in price of another goods.
    4. DChange in demand due to less availability of goods.

    Answer: (C) Change in demand due to change in price of another goods.

    Explanation

    Cross elasticity of demand measures the responsiveness in quantity demanded of good X relative to a percentage price fluctuation in another related product Y.

    • A. Change in demand due to change in price — defines own-price elasticity of demand.
    • B. Change in demand due to change in income — defines income elasticity of demand.
    • C. Change in demand due to change in price of another goods — correct. Quantifies whether goods are economic substitutes (positive coefficient) or complements (negative coefficient).
    • D. Change in demand due to less availability — describes supply scarcity shifts rather than cross-price responsiveness.

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86. Question 86

    Idle capacity costs due to avoidable causes are transferred to which of the following heads/accounts ?

    1. APrime Cost
    2. BFactory Overhead
    3. CCost of Production
    4. DCosting Profit and Loss A/c

    Answer: (D) Costing Profit and Loss A/c

    Explanation

    In cost accounting standards, avoidable or abnormal idle capacity costs are excluded from product costs and written off directly to the Costing Profit and Loss Account.

    • A. Prime Cost — tracks direct materials and direct wages directly traceable to output units.
    • B. Factory Overhead — absorbs normal unavoidable plant capacity costs rather than abnormal losses.
    • C. Cost of Production — includes total manufacturing expenses, which would be artificially distorted if avoidable idle capacity were included.
    • D. Costing Profit and Loss A/c — correct. Treats avoidable downtime due to management lapses or strikes as an abnormal period expense.

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87. Question 87

    Which of the following is NOT the characteristic of strategic decisions that deals with the long-run future of an entire organization ?

    1. AInvariability
    2. BConsequential
    3. CRare
    4. DDirective

    Answer: (A) Invariability

    Explanation

    Henry Mintzberg highlights that strategic decisions are rare, highly consequential, and directive, requiring flexibility to adapt to evolving environmental conditions.

    • A. Invariability — correct. Invariability implies rigidity and unchangeability, whereas strategic decision-making must remain dynamically responsive to market uncertainty.
    • B. Consequential — strategic choices commit extensive corporate resources across long time horizons.
    • C. Rare — strategic decisions are unusual and typically have no exact operational precedent.
    • D. Directive — strategic choices set guiding precedents for subsequent tactical and functional operational decisions.

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88. Question 88

    Which of the following is the condition where χ² (chi-square) should not be applied ?

    1. AIf there are only two cells, expected frequency in each cell should be 5 or more.
    2. BSamples of at least 50 observations must be drawn randomly from the population.
    3. CIf number of cells are more than two and more than 20% of the cells have expected frequencies less than 5.
    4. DData should be expressed in original units rather than ratio or percentage.

    Answer: (C) If number of cells are more than two and more than 20% of the cells have expected frequencies less than 5.

    Explanation

    The chi-square test of independence requires adequate cell frequencies so that the discrete distribution approximates the continuous theoretical distribution.

    • C is correct — when more than 20 percent of contingency cells contain expected frequencies below five, the chi-square test statistic cannot be reliably applied without pooling.
    • A is an established validity condition — in a single degree of freedom scenario, cell frequencies must not fall below five.
    • B is an established validity condition — total sample size should ideally exceed 50 observations.
    • D is an established validity condition — chi-square requires raw categorical frequencies rather than percentages or proportions.

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89. Question 89

    Advantages of decentralization are:

    A. No duplication of efforts or resources
    B. Reduces problem of communication and red tape
    C. Strong central leadership develops which may required in crisis
    D. Coordination of activities of subordinates are better achieved
    E. Ensures the development of employees

    Choose the correct answer from the options given below:

    1. AC and D Only
    2. BB and E Only
    3. CD and E Only
    4. DA and E Only

    Answer: (B) B and E Only

    Explanation

    Decentralization disperses decision authority closer to operational execution, improving organizational agility and subordinate capability.

    • B and E are distinct advantages — delegating authority bypasses central communication bottlenecks, cuts red tape, and provides subordinates leadership experience to foster employee development.
    • A is incorrect — decentralized units frequently duplicate departmental functions and specialized assets.
    • C is incorrect — strong centralized crisis leadership is a feature of centralization rather than decentralization.
    • D is incorrect — coordinating autonomous decentralized units is generally more challenging than coordinating centralized units.

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90. Question 90

    Which of the followings imply Flat Organisation?

    A. High level of Decentralization
    B. Narrow span of control
    C. Impersonality
    D. Less extended communication lines
    E. Distance from top to bottom

    Choose the correct answer from the options given below:

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

    Answer: (D) A and D Only

    Explanation

    Flat organizational designs feature few intervening management tiers, resulting in broad spans of control and direct communication channels.

    • A and D are correct — flat hierarchies empower frontline employees through high decentralization and shorten communication paths between executive leadership and operating staff.
    • B and E are incorrect — narrow spans of control and extended vertical distance from top to bottom characterize tall organizations.
    • C is incorrect — impersonality is a structural characteristic of Weberian bureaucracy rather than flat organization design.

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91. Question 91

    Based on the passage, which of the following statements is NOT supported by the text?

    Teresa worked as a caregiver for years and when her husband passed away she was completely lost. Fighting grief and housing instability, she turned into a junior assistant cum typist (JACT) at a university. She initially felt shame, wondering if she was worth anything. One day, her Section Officer made her as a 'custodian' for people and places. After that she felt noticed and appreciated, and so began 18 rewarding years in position.

    This is the focal point of mattering - that feeling of being valued and recognition creates value. It's even more deeper than belonging and is critical to motivation, mental well-being, and retention. But currently, many employees feel invisible and undervalued, which leads to disengagement, burnout and low morale. In spite of investments in the workplace, a 'mattering deficit' persists because mattering is constructed through everyday human interactions, not perks or policies.

    To engage mattering, leaders need to look and listen to their teams, notice difficulties, listen and ask substantive questions. Compassionate acts and follow-ups create trust. Affirming people's strength, narrative and purpose reinforce their distinct value. Sharing impact stories, such as how JACT made spaces joyful, moves the purpose deeper.

    Individuals also believe that they matter when they see how small efforts relate to larger goals -such as NASA employees connecting what they do to landing a man on moon. Essentially, building a culture of mattering means leaders to consistently demonstrate to people they are noticed, heard, valued and required. Its easy to talk about in theory, but not common practice- but revolutionary when it is executed correctly.

    1. AIndividuals remain longer in the work environment where they feel mattering.
    2. BPerks alone can ensure emotional connection.
    3. CSeeing and hearing employees can create profound trust.
    4. DMattering stems from human interactions, rather than policy.

    Answer: (B) Perks alone can ensure emotional connection.

    Explanation

    The passage explicitly clarifies that workplace perks fail on their own to create genuine psychological mattering.

    • A is supported — the text states mattering is critical to retention and employee longevity.
    • B is NOT supported — correct. The author notes that a mattering deficit persists because mattering is built through human interactions, not perks or policies.
    • C is supported — the author highlights that listening to teams and noticing difficulties creates deep organizational trust.
    • D is supported — the text directly affirms that everyday human interactions generate mattering.

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92. Question 92

    Based on the passage, what type of leadership behavior most directly fosters "a sense of being valued" in the long run?

    Teresa worked as a caregiver for years and when her husband passed away she was completely lost. Fighting grief and housing instability, she turned into a junior assistant cum typist (JACT) at a university. She initially felt shame, wondering if she was worth anything. One day, her Section Officer made her as a 'custodian' for people and places. After that she felt noticed and appreciated, and so began 18 rewarding years in position.

    This is the focal point of mattering - that feeling of being valued and recognition creates value. It's even more deeper than belonging and is critical to motivation, mental well-being, and retention. But currently, many employees feel invisible and undervalued, which leads to disengagement, burnout and low morale. In spite of investments in the workplace, a 'mattering deficit' persists because mattering is constructed through everyday human interactions, not perks or policies.

    To engage mattering, leaders need to look and listen to their teams, notice difficulties, listen and ask substantive questions. Compassionate acts and follow-ups create trust. Affirming people's strength, narrative and purpose reinforce their distinct value. Sharing impact stories, such as how JACT made spaces joyful, moves the purpose deeper.

    Individuals also believe that they matter when they see how small efforts relate to larger goals -such as NASA employees connecting what they do to landing a man on moon. Essentially, building a culture of mattering means leaders to consistently demonstrate to people they are noticed, heard, valued and required. Its easy to talk about in theory, but not common practice- but revolutionary when it is executed correctly.

    1. APublicly honouring employees during ceremonies
    2. BConducting regular face-to-face feedback sessions
    3. CProviding regular purpose and dedication to employees in daily tasks
    4. DProviding annual bonuses based on the profitability of the company

    Answer: (C) Providing regular purpose and dedication to employees in daily tasks

    Explanation

    The author emphasizes that connecting daily efforts to higher purpose reinforces meaningful recognition.

    • A is tempting — public ceremonies offer episodic recognition, but the passage prioritizes everyday connection over formal ceremonies.
    • B is incomplete — routine feedback reviews without deeper affirmation of personal worth fail to resolve mattering deficits.
    • C is correct — affirming employee purpose and showing how daily tasks connect to larger institutional missions fosters enduring mattering.
    • D is contradicted — monetary bonuses are external perks that do not construct personal psychological mattering.

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93. Question 93

    Based on the passage, which of the following contribute to mattering?

    A. Acts of compassion
    B. Personal connection
    C. Perks and policies
    D. Daily human interactions
    E. Feel competition

    Choose the correct answer from the options from the options:

    Teresa worked as a caregiver for years and when her husband passed away she was completely lost. Fighting grief and housing instability, she turned into a junior assistant cum typist (JACT) at a university. She initially felt shame, wondering if she was worth anything. One day, her Section Officer made her as a 'custodian' for people and places. After that she felt noticed and appreciated, and so began 18 rewarding years in position.

    This is the focal point of mattering - that feeling of being valued and recognition creates value. It's even more deeper than belonging and is critical to motivation, mental well-being, and retention. But currently, many employees feel invisible and undervalued, which leads to disengagement, burnout and low morale. In spite of investments in the workplace, a 'mattering deficit' persists because mattering is constructed through everyday human interactions, not perks or policies.

    To engage mattering, leaders need to look and listen to their teams, notice difficulties, listen and ask substantive questions. Compassionate acts and follow-ups create trust. Affirming people's strength, narrative and purpose reinforce their distinct value. Sharing impact stories, such as how JACT made spaces joyful, moves the purpose deeper.

    Individuals also believe that they matter when they see how small efforts relate to larger goals -such as NASA employees connecting what they do to landing a man on moon. Essentially, building a culture of mattering means leaders to consistently demonstrate to people they are noticed, heard, valued and required. Its easy to talk about in theory, but not common practice- but revolutionary when it is executed correctly.

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

    Answer: (C) A, B and D Only

    Explanation

    The passage explicitly links mattering to compassionate, interpersonal human exchanges while discounting policy-driven perks and workplace competition.

    • A, B, and D contribute to mattering — the text highlights compassionate acts, personal affirmation, and everyday human interactions as the core building blocks of mattering.
    • C is explicitly rejected — the passage states that mattering is constructed through human interaction, not perks or policies.
    • E is unsupported — workplace competition creates rivalry rather than psychological safety and mattering.

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94. Question 94

    Based on the passage, which of the following are least effective in producing a sense of mattering?

    A. Providing health insurance benefits
    B. Changing uniform
    C. Celebrating birthdays
    D. Ignoring JACT suggestion
    E. Weekly department meetings

    Choose the most appropriate answer from the options from the options:

    Teresa worked as a caregiver for years and when her husband passed away she was completely lost. Fighting grief and housing instability, she turned into a junior assistant cum typist (JACT) at a university. She initially felt shame, wondering if she was worth anything. One day, her Section Officer made her as a 'custodian' for people and places. After that she felt noticed and appreciated, and so began 18 rewarding years in position.

    This is the focal point of mattering - that feeling of being valued and recognition creates value. It's even more deeper than belonging and is critical to motivation, mental well-being, and retention. But currently, many employees feel invisible and undervalued, which leads to disengagement, burnout and low morale. In spite of investments in the workplace, a 'mattering deficit' persists because mattering is constructed through everyday human interactions, not perks or policies.

    To engage mattering, leaders need to look and listen to their teams, notice difficulties, listen and ask substantive questions. Compassionate acts and follow-ups create trust. Affirming people's strength, narrative and purpose reinforce their distinct value. Sharing impact stories, such as how JACT made spaces joyful, moves the purpose deeper.

    Individuals also believe that they matter when they see how small efforts relate to larger goals -such as NASA employees connecting what they do to landing a man on moon. Essentially, building a culture of mattering means leaders to consistently demonstrate to people they are noticed, heard, valued and required. Its easy to talk about in theory, but not common practice- but revolutionary when it is executed correctly.

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

    Answer: (C) A and B Only

    Explanation

    The author emphasizes that material perks and administrative changes cannot overcome mattering deficits.

    • A and B are least effective — providing standardized health insurance benefits (perks) and administrative uniform updates (policies) do not provide the interpersonal recognition that produces mattering.
    • C, D, and E are distinct — celebrating birthdays involves personal attention, ignoring suggestions actively damages morale, and meetings offer potential interactive venues.

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95. Question 95

    What does the term 'mattering' mean in the passage ?

    Teresa worked as a caregiver for years and when her husband passed away she was completely lost. Fighting grief and housing instability, she turned into a junior assistant cum typist (JACT) at a university. She initially felt shame, wondering if she was worth anything. One day, her Section Officer made her as a 'custodian' for people and places. After that she felt noticed and appreciated, and so began 18 rewarding years in position.

    This is the focal point of mattering - that feeling of being valued and recognition creates value. It's even more deeper than belonging and is critical to motivation, mental well-being, and retention. But currently, many employees feel invisible and undervalued, which leads to disengagement, burnout and low morale. In spite of investments in the workplace, a 'mattering deficit' persists because mattering is constructed through everyday human interactions, not perks or policies.

    To engage mattering, leaders need to look and listen to their teams, notice difficulties, listen and ask substantive questions. Compassionate acts and follow-ups create trust. Affirming people's strength, narrative and purpose reinforce their distinct value. Sharing impact stories, such as how JACT made spaces joyful, moves the purpose deeper.

    Individuals also believe that they matter when they see how small efforts relate to larger goals -such as NASA employees connecting what they do to landing a man on moon. Essentially, building a culture of mattering means leaders to consistently demonstrate to people they are noticed, heard, valued and required. Its easy to talk about in theory, but not common practice- but revolutionary when it is executed correctly.

    1. ADoing your job well
    2. BFollowing rules
    3. CCompeting with others
    4. DFeeling valued and knowing you add value

    Answer: (D) Feeling valued and knowing you add value

    Explanation

    The author defines mattering at the start of the second paragraph as feeling recognized, valued, and knowing that one creates meaningful value.

    • A. Doing your job well — describes baseline task performance rather than psychological mattering.
    • B. Following rules — represents procedural compliance.
    • C. Competing with others — creates workplace rivalry.
    • D. Feeling valued and knowing you add value — correct. Directly matches the author's definition that mattering is that feeling of being valued and knowing that recognition creates value.

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96. Question 96

    Based on the passage, match List - I with List - II:

    A. India — I. Where to find branded medications
    B. Germany — II. Attempting to regulate cost of drugs
    C. China — III. Provider of inexpensive generic medicines
    D. Country X — IV. Taking part in pharmaceutical discussions about tariffs

    Choose the correct answer from the options:

    One of numerous executive orders of the President aims to achieve global price parity for prescription drugs sold in the Country X. This move offers hope to many citizen's burdened by high healthcare costs. Enforcing this rule in practice, however, might be challenging because it might entail into import-export rules that don't align with existing legislation of Country X. Similar to President's previous attempts to lower drug prices during his first term, this move could also encounter legal challenges.

    However, the government can take some action against large pharmaceutical companies, commonly referred to as Big Pharma', by encouraging less expensive generic drugs and putting an end to unfair practices that delays their release. Perhaps, the Country X pharmaceutical companies have not yet responded negatively to it possibly because the new order has little effect on their profits.

    The majority of Indian pharmaceutical exports to Country X fall into the low profit generic drugs market, which is less vulnerable to President's regulations of Country X. Indian businesses might not receive preferential treatment for their branded medicines as the Country X might prefer to purchase them from developed countries like Germany, UK or France.

    Additionally, as evidenced by trade negotiation with China, the Country X views pharmaceuticals as a sensitive area and might continue imposing special import duties on them. Generic medications from India are currently free from import duties in the Country X. However it might now insist on the same tariff-free treatment for its own Pharmaceutical exports to India. Meanwhile, India has established a solid international reputation as a supplier of affordable medications. It can bargain for better trade conditions by using this image.

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

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

    Explanation

    Entities mentioned in the trade passage correspond to their described roles in international pharmaceuticals:

    A-III, B-I, C-IV, D-II

    • A. India (III) — recognized internationally as a leading supplier of affordable generic medications.
    • B. Germany (I) — identified as a preferred developed country source from which Country X purchases branded pharmaceuticals.
    • C. China (IV) — actively engaged with Country X in sensitive trade negotiations involving special pharmaceutical import tariffs.
    • D. Country X (II) — whose executive leadership is attempting to enforce global price parity to curb high domestic drug costs.

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97. Question 97

    Which of the following statement is correct as per the paragraph ?

    One of numerous executive orders of the President aims to achieve global price parity for prescription drugs sold in the Country X. This move offers hope to many citizen's burdened by high healthcare costs. Enforcing this rule in practice, however, might be challenging because it might entail into import-export rules that don't align with existing legislation of Country X. Similar to President's previous attempts to lower drug prices during his first term, this move could also encounter legal challenges.

    However, the government can take some action against large pharmaceutical companies, commonly referred to as Big Pharma', by encouraging less expensive generic drugs and putting an end to unfair practices that delays their release. Perhaps, the Country X pharmaceutical companies have not yet responded negatively to it possibly because the new order has little effect on their profits.

    The majority of Indian pharmaceutical exports to Country X fall into the low profit generic drugs market, which is less vulnerable to President's regulations of Country X. Indian businesses might not receive preferential treatment for their branded medicines as the Country X might prefer to purchase them from developed countries like Germany, UK or France.

    Additionally, as evidenced by trade negotiation with China, the Country X views pharmaceuticals as a sensitive area and might continue imposing special import duties on them. Generic medications from India are currently free from import duties in the Country X. However it might now insist on the same tariff-free treatment for its own Pharmaceutical exports to India. Meanwhile, India has established a solid international reputation as a supplier of affordable medications. It can bargain for better trade conditions by using this image.

    1. ACountry X attempted to restrict supply of drugs from china and avoiding negotiations with it
    2. Bit President had never attempted to lower drug prices in Country X
    3. CIndia being a supplier of affordable medicines can bargain its trade conditions
    4. DCountry X is currently imposing import duties on generic medicines from India

    Answer: (C) India being a supplier of affordable medicines can bargain its trade conditions

    Explanation

    The concluding sentence of the text directly affirms India's international bargaining position.

    • A is incorrect — Country X negotiated with China rather than avoiding negotiations.
    • B is incorrect — the text notes previous attempts by the President to lower drug prices during his first term.
    • C is correct — the passage concludes that because India has a reputation for affordable medications, it can bargain for better trade conditions.
    • D is incorrect — the passage explicitly notes that generic medications from India are currently free from import duties in Country X.

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98. Question 98

    Which of the following best sums up the significance of Indian generics for the affordability of healthcare in the Country X?

    A. They are less expensive
    B. Country X import duties donot apply to them
    C. They are mainly used to treat life-threatening diseases
    D. They contribute to lower overall healthcare costs
    E. They serve as alternatives to branded drugs

    Choose the most appropriate answer from the options from the options:

    One of numerous executive orders of the President aims to achieve global price parity for prescription drugs sold in the Country X. This move offers hope to many citizen's burdened by high healthcare costs. Enforcing this rule in practice, however, might be challenging because it might entail into import-export rules that don't align with existing legislation of Country X. Similar to President's previous attempts to lower drug prices during his first term, this move could also encounter legal challenges.

    However, the government can take some action against large pharmaceutical companies, commonly referred to as Big Pharma', by encouraging less expensive generic drugs and putting an end to unfair practices that delays their release. Perhaps, the Country X pharmaceutical companies have not yet responded negatively to it possibly because the new order has little effect on their profits.

    The majority of Indian pharmaceutical exports to Country X fall into the low profit generic drugs market, which is less vulnerable to President's regulations of Country X. Indian businesses might not receive preferential treatment for their branded medicines as the Country X might prefer to purchase them from developed countries like Germany, UK or France.

    Additionally, as evidenced by trade negotiation with China, the Country X views pharmaceuticals as a sensitive area and might continue imposing special import duties on them. Generic medications from India are currently free from import duties in the Country X. However it might now insist on the same tariff-free treatment for its own Pharmaceutical exports to India. Meanwhile, India has established a solid international reputation as a supplier of affordable medications. It can bargain for better trade conditions by using this image.

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

    Answer: (B) A, B, D and E Only

    Explanation

    The passage underscores the economic advantages of Indian generics in reducing healthcare expenditures.

    • A, B, D, and E are correct — the text identifies that Indian generics are less expensive, exempt from Country X import duties, reduce citizen healthcare cost burdens, and provide affordable alternatives to Big Pharma branded drugs.
    • C is excluded — the passage does not discuss disease severity or clinical treatment for life-threatening illnesses.

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99. Question 99

    What conclusions can be drawn about the current state of Country X's pharmaceutical industry in relation to the executive order?

    One of numerous executive orders of the President aims to achieve global price parity for prescription drugs sold in the Country X. This move offers hope to many citizen's burdened by high healthcare costs. Enforcing this rule in practice, however, might be challenging because it might entail into import-export rules that don't align with existing legislation of Country X. Similar to President's previous attempts to lower drug prices during his first term, this move could also encounter legal challenges.

    However, the government can take some action against large pharmaceutical companies, commonly referred to as Big Pharma', by encouraging less expensive generic drugs and putting an end to unfair practices that delays their release. Perhaps, the Country X pharmaceutical companies have not yet responded negatively to it possibly because the new order has little effect on their profits.

    The majority of Indian pharmaceutical exports to Country X fall into the low profit generic drugs market, which is less vulnerable to President's regulations of Country X. Indian businesses might not receive preferential treatment for their branded medicines as the Country X might prefer to purchase them from developed countries like Germany, UK or France.

    Additionally, as evidenced by trade negotiation with China, the Country X views pharmaceuticals as a sensitive area and might continue imposing special import duties on them. Generic medications from India are currently free from import duties in the Country X. However it might now insist on the same tariff-free treatment for its own Pharmaceutical exports to India. Meanwhile, India has established a solid international reputation as a supplier of affordable medications. It can bargain for better trade conditions by using this image.

    1. AActively encouraging
    2. BReluctant/neglectful as their profits are unaffected
    3. CStrong opposition
    4. DIt is already being implemented.

    Answer: (B) Reluctant/neglectful as their profits are unaffected

    Explanation

    The text attributes the domestic pharmaceutical sector's muted response to their insulated profitability.

    • A is incorrect — domestic Big Pharma companies do not actively support price reduction orders.
    • B is correct — the text notes domestic firms have not reacted negatively because the new executive order has little immediate impact on their corporate profits.
    • C is premature — while legal challenges are contemplated, current industry reaction has not manifested as strong overt opposition.
    • D is incorrect — implementation remains uncertain due to existing statutory import-export legislation.

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100. Question 100

     What is the central irony in President's push for drug price in the Country X ?

     One of numerous executive orders of the President aims to achieve global price parity for prescription drugs sold in the Country X. This move offers hope to many citizen's burdened by high healthcare costs. Enforcing this rule in practice, however, might be challenging because it might entail into import-export rules that don't align with existing legislation of Country X. Similar to President's previous attempts to lower drug prices during his first term, this move could also encounter legal challenges.

     However, the government can take some action against large pharmaceutical companies, commonly referred to as Big Pharma', by encouraging less expensive generic drugs and putting an end to unfair practices that delays their release. Perhaps, the Country X pharmaceutical companies have not yet responded negatively to it possibly because the new order has little effect on their profits.

     The majority of Indian pharmaceutical exports to Country X fall into the low profit generic drugs market, which is less vulnerable to President's regulations of Country X. Indian businesses might not receive preferential treatment for their branded medicines as the Country X might prefer to purchase them from developed countries like Germany, UK or France.

     Additionally, as evidenced by trade negotiation with China, the Country X views pharmaceuticals as a sensitive area and might continue imposing special import duties on them. Generic medications from India are currently free from import duties in the Country X. However it might now insist on the same tariff-free treatment for its own Pharmaceutical exports to India. Meanwhile, India has established a solid international reputation as a supplier of affordable medications. It can bargain for better trade conditions by using this image.

     1. AIt benefits only non-Country X companies
     2. BIt depends on low cost imports from nations the Country X wants to restrict
     3. CIt runs counter to his endorsement of big pharma
     4. DIt will reduce worldwide healthcare expenditures

     Answer: (B) It depends on low cost imports from nations the Country X wants to restrict

     Explanation

     The underlying irony is that achieving domestic drug price relief depends heavily on foreign generic imports from trading partners that Country X seeks to restrain with tariffs.

     • A is incorrect — domestic citizens burdened by high healthcare costs would be primary beneficiaries.
     • B is correct — the administration seeks lower healthcare costs via affordable generic imports while simultaneously imposing special tariffs and trade restrictions on those exporter nations.
     • C is ungrounded — the passage notes the administration challenges Big Pharma rather than endorsing it.
     • D is tangential — global expenditure trends are not the central structural irony highlighted in the text.

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