Management MULTIPLE CHOICE QUESTIONS MCQ-FCI Technical Discipline-

General/depot

1. Assertion (A): Today managers with leadership qualities and skills are preferred to managers
with expertise alone.
Reason (R): The major organisational changes now emphasis managing people and process.
Codes:
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans-(a)

2. Assertion (A): Special rules and procedures are followed in the import and export trade.
Reason (R): The need for import and export trade is explained by the principles of ‘Comparative
Cost Theory’.
Codes:
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not a correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans:-(b)

3. Brainstorming is used by the management for:

(a) Work allocation on the shop floor.
(b) Generating alternative for problem solving.
(c) The promotion of research and development.
(d) Training employees.
Ans-(b)

4. Indian banks have the maximum foreign branches in.

(a) Bangladesh
(b) U.K.
(c) U.S.A
(d) Sri Lanka
Ans:- (b)

5. For a positively sloped straight line supply curve that intersects the price axis is:
(a) Equal to zero
(b) Equal to one
(C) Greater than one
(d) Constant
Ans(c)

6. Put into chronological order on the basis of development:

1. Law of demand .
2. Law of indifference.
3. Law of diminishing marginal utility.
4. Revealed preference curve.
5. Indifference curve.
(a) 1, 2, 3, 4, 5.
(b) 1, 5, 3, 4, 2
(c) 1, 3, 2, 5, 4
(d) 1, 3 ,4, 2, 5
Ans:-(c )

7. All money Costs can be regarded as:

(a) Social costs
(b) Opportunity costs
(c) Explicit costs
(d) Real costs .
Ans:- (c)

8. Assertion (A): MBO is effective way of planning and organising the work.
Reason (R): Employees participate in setting the objectives.
Codes:
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but. R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans:-(c)

9. Match List-I with List-II and select the correct answer using the codes given below the lists.
List-I
A. Principle of management
B. Management by objectives
C. Human Resources Approach School.
D. Human Relations.
List-II
1. Douglas Mc Gregor
2. Chester Barnard
3. Henry Fayol
4, George Elton Mayo
5. Peter Drucker
Codes:
ABCD
(a) 1 2 3 4
(b) 4 5 1 3
(c) 2 1 3 4
(d) 4 5 2 1
Ans:- (d )

10. If for a sample data: Mean <="" mode,="" then="" the="" distribution="" is
(a) Skewed to the right
(b) Symmetric
(c) Skewed to the left
(d) Neither symmetric nor skewed
Ans:- (c)

11. Which of the following is not discount policy?

(a) Trade discount policy
(b) Discount cash policy
(c) Quantity discount policy
(d) All of the above
Ans:- (d )

12. Which committee was constituted for reforms in tax-structure?

(a) Narsimham Committee.
(b) Chelliah Committee.
(c) Gadgil Committee.
(d) Kelkar Committee.
Ans:- (b)

13. The Sum of squared deviation is the least when taken from :
(a) Mode.
(b) Median.
(c) Arithmetic Mean.
(d) Geometric Mean.
Ans:- (c)

14. The Fisher Index Number is:

(a) GM of Laspeyres and Paasche index numbers
(b) AM of Laspeyres and Paasche index numbers
(c) HM of Laspeyres and Paasche index numbers
(d) GM of Laspeyres and Marshall-Edge worth index numbers
Ans:- (a )

15. Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I
A. Managerial Grid
B. 3-D Approach
C. Contingency Model
D. System Approach
List-II
I. H. Koontnz..
2. F. E. Fiedler.
3. R. R. Blake.
4. R. Likert.
5. W. I. Reddin.
Codes: A B C D
(a) 1 4 2 3
(b) 3 5 4 2
(c) 4 1 2 3
(d) 3 5 2 4
Ans:- (d )

16. Dumping is an example of:

(a) Monopolistic practice in international trade
(b) Monopoly in international trade
(c) Oligopoly in international trade
(d) Perfect competition in international trade
Ans:- (a )

17. Which of the following speculative activities is based on disparity

in quote prices in different markets?
(a) Option dealings
(b) Arbitrage
(c) Margin trading
(d) Blank transfers
Ans:- (b)

18. Find the odd one out:

(a) Human relations theory
(b) Informal functioning
(c) Humanistic theory
(d) None of the above
Ans:- (d)
19. Cross elasticity of complementary goods is:
(a) Negative
(b) Zero
(c) High
(d) Infinite
Ans:- (a)

20. Consider the following elements in a feedback loop is:

1. Identification of deviations
2. Measurement of actual performance
3. Actual performance
4. Comparison of actual against standards. The correct sequence of these elements in the
Feed back loop is:
(a) 3, 2, 1, 4 (b) 3, 2, 4, 1
(c) 2, 3, 1, 4 (d) 2, 3, 4, 1
Ans:- (a )

21. The Human Relations Theory rejects:

(a) Formal institutionalization.
(b) Informal functioning
(c) Human Motivation.
(d) People
Ans:- (d)

22. Who wrote Management and Moral?

(a) Taylor
(b) Roethliberger
(c) Riggs
(d) None of the above
Ans:-(b )

23. Match the following:

List-I List-II

A. Cardinal approach 1. Marginal utility

B. Ordinal approach 2. Alfred Marshall
C. Hicks-Allen approach 3. J. R. Hicks
D. Consumer’s surplus 4. Indifference curve
5. Revealed preference theory.
Codes:
ABCD
(a) 1 2 3 4
(b) 1 5 4 2
(c) 1 3 4 2
(d) 1 3 2 4
Ans:- (b)

24. Marginal (minimum) cost occurs at the output where:

(a) The total product is at a maximum.
(b) The marginal project of the variable factors is at a maximum.
(c) The factors are combined in their best possible proportion.
(d) The average product of the variable factors is at a maximum.
Ans:- (b)
25. Which of the following occupations should be included under the heading of
“Primary Production”?
l. Quarrying
2. Fishing
3. Farming
4. Coal Mining
(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) l, 2, 3and 4
Ans:- (d)

26. In the case of consumer’s demand curve, determined the price but in the case of producer
1. AR curve determined the price
2. AR curve determined the price and income
3. MR curve determined the price
4. MR curve and AR curve are determined the price
(a) 1 only
(c) 3 only
(b) 2 only
(d) 4 only
Ans:- (a)

27. Which of the following is the correct statement

1. The slope of the Isoquants represents the MRTS.
2. The MRTS of the input x and y =MPx / MPy
3. The elasticity of substitution between two inputs x and y is proportionate change in the ratio
two inputs divided by proportionate change in the MRTS
4. If degree of homogeneity is greater than one, the production function is increasing returns to
fixed factor
(a) 1, 2, 3 and 4 (b) 1, 3 and 4
(c) 2, 3 and 4 (d) 1, 2 and 3
Ans:- (d)

28. Price discrimination is possible:

(a) When elasticities of demand in different markets are the same at the ruling price
(b) When elasticities of demand are different in different markets at the ruling price
(c) When elasticities cannot be known .
(d) None of the above
Ans:- (a)

29. The imposition of a ceiling on a monopolist’s price will effect his

(a) Profits only
(b) Average revenue in the short-run only
(c) Equilibrium output only
(d) Equilibrium output and profits
Ans:- (d)

30. A firm enjoys maximum control over the price of its product under:
(a) Monopoly
(b) Perfect competition
(c) Oligopoly
(d) Imperfect competition
Ans:- (a)
31. What does ‘Hierarchy of Authority’ means?
1. The lower levels have to pursue the goals laid down by higher levels.
2. The upper levels of hierarchy set the goals to be pursued.
3. The upper level can not take disciplinary action against subordinates.
4 The lower levels have freedom to carry out the operations.
(a) 1 and 2
(b) 2 and 3
(c) 3 and 4
(d) l and 4
Ans:- (a)

32. Consider the following statements

1. The terms ‘Administration’ and ‘Management’ are synonymous.
2. Administration is a wider term than Management.
3. Management is a wider term than Administration.
4. Management is a narrower term than Administration.
5. Administration encompasses activities like the sel1ing out of policies and objectivities,
designing the organisational structure etc.
6. Management is concerned with those operations leading an organisation. towards success
with is the broader framework set up by Administration.
Select the correct codes:
(a) 1, 2,. 5 and 6
(b) 2, 4, 5 and 6
(c) 3, 4, 5 and 6
(d) 2, 3, 4, 5 and 6
Ans:-(b)

33. Which pattern reflects a pure executive form of management?

(a) Functional
(b) Line
(c) Line and Staff
(d) Committee
Ans:- (a)

34. ‘Coordination’ in an organisation means:

1. Complete control of the activities of the employees.
2. .To secure harmony among different units of the organisation.
3. Removal of conflict and overlapping in the organisation.
Codes:
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) l, 2 and 3
Ans:- (c)

35. Assertion (A): The theory and hypotheses of Argyris suggest no relationship between
personal development of the individual and the organisational situation.
Reason (R): The principles and the characteristics of a formal organisation. in the opinion of
Argyris, are incongruent to the needs of adult human beings.
Codes:
(a) A and R are true and. R is the correct explanation of A.
(b) A and R are true but R does not explain A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans:- (d)
36. Which one of the following is NOT the main concern of ‘Scientific Management’?-
(a) Production
(b) Efficiency
(c) Mechanistic Methods
(d) Rationality
Ans:- (c)

37. Which one of the following concepts are not associated with Scientific Management?
I. Mental Revolution
II. Unity of Command
III. Rule of Thumb
IV. Time and Motion Study
V. Differential Piece rate plan
Select the correct code:
(a) I, II and IV (b) II, III and IV
(c) II and III. (d) I, IV and V
Ans:- (c)

38. Which of the following are the principles of ‘Scientific Management’?

1. Development of a science of work
2. Different Piece Rate Plan
3. Standardisation of tools and equipments
4. Scientific selection of workman
5. Co-operation between managers and workers
Select the correct code:
(a) 1, 3, 4 and 5
(b)1, 4 and 5.
(c) 1, 2, 3, and 4
(d) l, 2, 3, 4 and 5.
Ans:- (b)

39. The Greatman theory of leadership led to the rise of

(a) The Behavioural theory of leadership
(b) The Trait theory of leadership
(c) The situational theory of leadership
(d) None of the above
Ans:- (b)

40. The central principle which derives from McGregor’s Theory is:
(a) Directional and control
(b) Co-ordination
(c) Scalar Principle
(d) Integration
Ans:- (d)

41. Assertion (A): Effective motivation is moderated by organisational complexity and conflicts.
Reason (R): An individual’s motives may he complex and conflicting.
codes:
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is nor a correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans:- (d)

42. The famous book “The Philosophy of Management” was written by

(a) Henery Fayol
(b) Oliver Sheldon
(c) F. W. Taylor
(d) Urwick
Ans:-(b)

43. The first stock exchange was set up in India in

(a) Calcutta
(b) Bombay
(c) Delhi
(d) Madras
Ans:-(b)

44. Which of the speculators expects the price of securities to rise in the near future?
(a) Bull
(b) Bear
(c) Stag
(d) Lane duck
Ans:- (a)

45. Stock exchange deals with the

(a) Second-hand securities
(b) Issue of equity shares,
(c) Issue of preference shares
(d) Issue of debentures.
Ans:- (a)

46. Burns and Stalker model for categorising organisations by structural design uses the
terms: (a) Functional and geographic
(b) Functional and organic
(c) Geographic and mechanistic
(d) Mechanistic and organic.
Ans:- (b)

47. The quality of information is measured by its:

(a) Accuracy
(b) Cost
(c) Degree of Statistical Validity
(d) Timeliness
Ans:- (d)

48. Which of the following departments is not directly affected by the facilities location decision?
(a) Production/Operations
(b) Marketing
(c) Personnel and HRD
(d) None of the above.
Ans:- (d)

49. Of the three costs relevant to a decision on inventory, which is the most difficult to estimate?
(a) Shortage costs
(b) Carrying Costs
(c) Order costs
(d) Transportation costs
Ans:- (a)

50. Increasing returns imply:

(a) Constant average cost
(b) Diminishing cost per unit of output
(c) Optimum use of capital and factor
(d) External economies
Ans:-(b)