I ahangir Success Series

Management

S len es

Multiple Choice Ouestions

.,rr

r/ Sample Tests of Each Section

,/ Glossary

Also Helpful For

All Public Service Commissions
University / Semester Exams
Entry Tests
Interviews

he( NLY Prep Guide from the Test Prep ttxP rts

ruly based on the current forrnat of GAtt A/1anagement Sciences NA/ith every type
of question you rnay en ounter during the actual exarrlination justto ensure
that you understand the sub eCt matter and be best prepared forthe exarns.

Complied by:
Ahmed Ali Oureshi Muharnrnad lsrllail Sairlla Afzal /


t shangir Success Serier

anagement
s len es

comp:ied by:
Ahmed Ali OureshL Muhammad lSmaiL Saima Afzal
 OALLRIGHTS RESERVED

No part of this book may be reproduced

in any form, by photostat, microfilm, or any other
nleans, or incorporated into any infonnation retrieval
system, electronic or mechanical, without the written
permission of publisher/writer.

I Informatioa glen ia this book has been obtained by the publisher

sources believed to be rcliable. Howeveri because of thi posstbiltty of
from
human. or mechanical errors on the part of
,the sources,'publish", o, oih"ri,
the publisher do? guarantee aciuraq, adequacy or completeness ofany
lot
information included in this work and is noi niponsibli
or omissions or the rcsults obtained from the for o"y Jii,
fte of suih inloirmation.
.,I .t

Published byAdeel Niaz

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 PnnrEcn
prepared
who severely face the problem of getting
we have compiled the MCQs for the students due to the
in particular for GAT subject. It is specifically
for different tests of management sciences, for covering all
sciences dg not find any single resource
reason that the students of management
help the students of
subjects in preparing for different tests.
The intention of writing this book is to
preparation for
of lesource set in the form of MCQs for
management sciences, to give them a handful are not
from different resources which include, but
different tests. we have compiled the MCes solved
standard books, internet sites' discussions'
limited to different international and national mentioned where
questions, different question papers' MCQs
books and Others' The resources are
changed the material
ever it is considered necessary. Please
note that, in some instances' we have

dulng compilation to fit in for MCQs'

TheseMCQsgivearelativelyeasierwayofgettingabird'seyeviewofthecompletesubjects.
semester exams for
interviews, preparation for university
This compilation is even herpful for subject
facultymembersaswellasforstudents,preparingforgeneralunderstandingofthesubjectmatier,
teaching and others.
who suffered family' time during the
we would like to dedicate this book to our families,
cornpilation of the book.
Suggestions and improvement can reach
the
suggestions and improvements are requested'
authors through publisher. The same can be
incorporated in later versions of the book'

Ahmed Ali Qureshi

Saima Afzal
Muhammad Ismail

 CONTENTS

Answers
17
O ANuvucAL QUESTIoNS"'-""""'4"-""'-""""'

.r................ ..-.-.--.-.-..24
ANl,lYrrcAL SAMPLE PlPnns
 O

Busrnmss Srarrsrrcs................

o
"


64
00 0 0 00 0

Gloss,
Ell
Brnlro













97
O Sample Test II.

,

:..
1 1
o Answers. .

102
Sample Test I . :
:

106
o Answers.

:: 107

1
O Sample Test .

111

o Answers:. :.. ....

112

O Sample Test V.
:

116
..

o, ..
AnswerS._
:
. :

117
O Sample Test VI.
1

-123
o Ans ers.:.......

124
O sample Test V . . ...1 .

1 129


Answers. ..
..





:

130

O Sample Test VI .

136
o Answers.

:
:

137

0 Sample T st IX,...

Answers.1.





..







.




:.










143

0 Sample Test X. 144

1

Answer . 149

150
O Self Assesslnent Sheet.

.

151
GLOSSARY. . "" "" " " """ " " "

Brnr,rocupnv & RErERENCEs............. """""""190





enl

sh(

res
O

ab

 lX

MCQS baSed t S iOm

1 Tl

. Fi )es on necd baSiS tO any
m j
organiZatiOn.

SinCC PhD is an important and One ofthc highest qualiCatiOns,studentS tO be enrolled in these prograrrls
a.

g Servi
st
should go thrOugh a tOugh Crite

sp 1 p t tdu r
_ C PhD sm

fOr Ph.D p graFrlS.
hddC md
n
Th"
1 m
abilities,sOl ing abilitieS,interprct and understanding o

ELIGIttILITY FOR TIIE GAT SIIBJECT TEST

SGAT eSubieCt
Candidates fOrPhD ShOuld have adCast 18 ycars OfeduCatiOn tO be eligitole to Sitin the SubliCO The

G llttitttl: : "in the CXanl fOr latest

:IIIppear

::Tl

t
Minimum 60 mrks""q
scores and eligibility.
d m GAT Subi
:
t EttTttC
GAT SUBJECT PAPERDISTRIBUTION/CURRICULA
TpsrFomr.q,t oF GAT SunJecr
o Total Question (MCQs) = 100
(2 hours)
o Total Test Time = 120 Minutes
. TestTYPe: PaPerBased

Test
o General Section =3OVo of the Total Test
c Subject Section =lOVo of the Total
Anrl or GENERAL SEcrIoN
r English (Verbal) = l1Vo
ArlalYtical Reasoning = l51o
TEsr oF
Suslacrs DISTRrBurroN FoR
ScrnNcns
GAT SunJBct MaNacnuBut
FollowingisthesubjectdistributionfortheGATSubjectManagerrrcntSciences
MANAGEMENT SCIEN COFe Are ___
 x

GAT SunJrcr Scsrour,B

Late Date of ProvisiOnal
Advertisement Queries wilE Roll.No. Result wi l be
Sr.# Test.Dates Subrnission of List Of be Slip annOunced PL
Dates Registration Candidate entertained
F orrrrs on Website
Dispatch on NTS Al
Sunday 19th Sunday
till Date Website Date
Tuesday Saturday 4m
February
2012
8th January
2012
2 :
2012
2 31st January February
MOnday 27
Febmary
2012 2012 2012
2. 2012

2012

2012
Pttl IR]),y
2012 2012 2012
3. 2012 2012
26thllst
2012
:
Ittt t
3rdtlll: er
2012 2012 2 20
t

4 Sunday 18th 2012 2012 2012

Novcmbcr
2012
7
cr 2 cr 30 811:
Saturday 3rd
Novcmbcr londay 26th
Novcmbcr
2012
'311]Icr 2012 2012 2012 2012 2012
How To REGTsTER
."0,,111ff:iJ:iilil";:i:11Tl,T'*:ff' or GAr subject as per dates announced iry
NrS through print
The process of registration is given
U"ioru
l. Announcement by NTS for registration
2. Download form from the webJte
3. Fiil th6 form
4. Submit the fee as per written in
the downloaded form.
5. The fee has to be submitted in
the prescribed banks only.
6' prescribed on the rorm arong
il'ffiJ"#lfJi,llll"Ljf.::'n" " with the chauan forrn to be couriered
7. Documents to attached are as
follows
(a) 2 photographs (l x 1.5 inch) wirh
fuil face exposure
(b) Challan Form
(c) Others as per the requirement of NTS
8. By hand submission is not allowed.
NorB
. Any query about provisional date
will be accepted within 04 days after
provisional list. the name appears.in the

' :Hi[?,H candidates ust will be uploaded

on rhe NTS website as per rhe receipts
,:lfll'" of the
o Final list of eligible candidates
will be displayed with 02 days afrer
along with resr Center wirr be the provisional list. Roll No.
.
rr;;;Ji,
t-h;'iinJ;ii;i#c'#aiaate rist.
By hand submission of registration
forms are not accepted.
o The roll number slip with
be dispatched to the candidates
o at reast ten days prior to the test

Rbsulrs will be dispatched wirhin 07 days date.

after the test date.

Sh
 xi

TBsr Dav IusrnuctloNs

Prusn Folr.ow Tnaso lNsrnucuoNs Canprullv
ArrnNn.lNcB

Reporting Time at test centre as specified on Roll No. Slip.

No candidate will be admitted in the test centre after specified time.

Candidates will have to produce their Roll Number Slips at the entry point of the test centre.

Without the Roll Number Slip NO candidaie will be entertained for the test.

CorvrposrrloN oF TEsr

Question booklets will be in five different shuffles.

Each question booklet will be sealed and opened by the candidates at the Stdrt of test.

Do not break the seal titl the test starts.

No candidate will be allowed to leave the seat during the test except for an un-avoidat'le reason e.g.
toilet usage, that to in the escort of an invigilator.
All papers will be collected at the end of test and no candidate will be allowed to move frorrr the seat
till the final count after the collection of the paper.
o Do not bring calculators, mobile phones and wrist watches with calculator in the test ,:enter.

Anout Sn.q.olnc / Fu,ltNc Tnn Cmclms

Shading / filling of two answers against single question is wrong. It will be tnarked reRO.
Over writing and cutting near answer circle or anywhere on answer sheet rvill distract the readability
and may be,marked reRO in the specific answer circle

Only use Blue or Black Ball pen to shade / fill the circles
Do not bring any other stationary item including rough/extra sheets as two blank sheets for rough
work are placed inside the Question booklet
o Use of any other material that is not provided by NTS will be illegal and subject to disciplinary

. D.o not write anything on Question Booklet except your NAME, ROI I. No. and SIGN on the front
title of Question Booklet before attempting the questions.
o The questions booklet will be taken back after the test is over so do not attempt to tear or remove
ury pug" from question booklet. No one is allowed to keep any part of it.
Do not ask the invigilation staff about the content of questions. They are not allowed to explain or
correct any question in the paper. The checking system has the capability to determine the erroneous
questions and adjust accordingly.
Every carrdidate is required to sign the attendance sheet, brought to her/him by the invigilators. The
Roll No. Slips will also be collected by the same staff after the attendance is completed'
You are bound to NTS discipline rules till you leave the test center premises.

Any disturbance in any way caused by you will disqualify you from the test and NTS reserves the
righs to carry out legal action against such attempt'
The chief supervisor has complete authority to cancel any paper at any stage if the activities of the
candidate are found against the discipline.
llow ro FILL THE ANSwER SHEET
One page printed answer sheet is provided to answer the questions. Use only ball pen
(black i blue) to
shade/fill the cirites. (Bring pen / clip board with you, erasing materials are not allowed.)
 xii
Answer sheet contains five circles containiug five
alphabets from A to E inside, against each question
options of answer for one question, containing
number.^The candidate has to completely shade/fill
circle that sftre thinks is correct. For example the one
is 'A',
canrlidate feels that the conect unr*"i
then sftre may shade/fill the circle .ontoinirg alphabet ,A,with if the given question
ball pen like this:
Correct Filing

O
Incorrect Filing

000oo Ooo
.OOOoo o oo
OOOo O
OOoo o O
hnsoNar, IxronprarroN oN ANswBn Snmr
The answer sheet contains personal data of
candidate on the top of the sheet. It has candidates,.
Father Name' Roll No' and Name.
The candidate is requireJ to critically check
-Photograph.
ttre required space' If any field oI p"rsonul these fields and sigrr in
information is iound in.correct the candidate must
invigilator presentaround. inform the

Tasr Crrms
First 08 cities are compulsory test cities. other
test cities mentioned in the list are optional
subject to a minimum of 200 registeied candidares. test cities,

Sr # Tcst Cities Sr.# Test Cities

1. Faisalabad 2. Islamabad
3. Karachi 4. LahOre
5. Multan 6. Peshawar
7. Quetta 8. Rawalpindi
9. Bahawalpur 10. Dera3hazi l han
11. Gulranwala 12. Hyderabad
NTS CoNr,q,cr
For test and rcst center inquiries and queries
related to score reporting, and for
complaints or providing feedback, you other purposes like
llu'"
Eut*I1
may s,,u rn touch *lir, n-rs on the
!.v rv'vw.r.'
following con'acts

rnfb@nts.org.pk
HplneuanrERs : (Isr,ervur.ln)
402, Street No. 34, sector I-B/2,
Isramabad, Ter: +92_5r_925g47g_7g,Fax:
+92-5r _g25g4go
 Xlll

ABBoTTBAD OFFICE
UniVersity Road,Abbottabad
KARACH1 0FFICE
POF ComplCX 3rd Ro01,252 Sarwar Shahecd Road Saddar,Karachi,TCl:+92-21-35215013,
Fax:+92-21 3521516
LAHORE OFFICE .
,DHA Colnlnercial Area,Lahorc Cantt,
Plaza No.170,2nd R00r,Y B10Ck,PhaSe
Tel:+92-42 99239022,+92-42-99239258

PESHAWAR OFFICE
,PCshawar,TCL+92-91-9218233,
B ,Rahat Abad Co10ny,Near PakiStan Forcst hStitu
Fax:+92-91-5704084
QUETTA OFFIC
HEC zOna1 0fflCe,QuCtta
SourCe:wWW. rg.
 ,
GENERAL ENGLiSH
_i
For English paper preparation list of antonyms and synonyms are compiled and are given below.
The
candidates are encourag"S to l"u* -uximum of them in order to perform the best in the exams

Words Antonyms
LIsT OF ANTONYMS FOR best worst
PREPARAT10N better worsc
Big slnall,little
Words Antonyms bitter SWCCt
prcsencc
absence blamc pralsc
abundant scarce bless curse
accept refuse blunt sharp
accuratc inaccurate bold tiIIlld,IIlle k
adnut deny borrow lend
advance rctreat,retlre cowardice
bravery
advantage disadvantage bright dull
agrce disagree broad narrow
alive dead build destroy, demolish
ally cncmy calm troubled
always ncver capable incapable
ancient modern captivity freedom,liberty
answer questlon,query careful rush, careless
approached receded, departed cellar attic

approval disapproval cheap dear, expensive

arrival departure clear Yague, cloudy
aniicial natural clever stupid
ascend descend clockwise anti-clockwise
asleeo awake close ldiStant
attack defense cold hot
attcntlon inattention combine lSCp
attractiVe repulsive comc go
forward, onward
backward
good
comfort ldiscomfort
bad common lrqg
beautiful ugly
conceal reveal
beginning ending
above
correct lincorrect
below
bend straighten
bent straight 1 ,

 VVbrds Antonyms Words Antonyms
cruel kind fortunate unfortunate
cunnlng simple fotlnd lost
dainty clumsy frank secretive
danger safety fieedom captiYity
dark light luent seldom

decrease increase flcsh stale
deep shallow fHcnd cnemy
definite indeflnite full empty
demand supply gather distribute
despair hope gcnerous mcan
disappear appear gentle rough
liscourage cncouragc giant dwarf, pygmy
disease hcalth glad sp
dismal cheerful gloomy chccrftll
doctor paticnt granted refused

dry wet great nunute,snlall,little
dull clear, bright guardian ward
dusk dawn guest host
early latc guilty innocent
East West happy sad, miserable
easy difflcult hard soft

cbb ow ha111lful harmless

cconomlse
vast hasten dawdlc

employer loyee love

hate

empty full healthy unhealthy, ill, diseased
encouragc liscourage heavy light

end beginning height depth

entrancc

exit here there

excited calrFl hero iowald

pand contract valley
expenslve inexpensive, cheap hindcr aid, help
xpolt
lmpo honest dishonest
exterior intedor horizontal vertical
external intemal hunablc proud

fail succeed hunger thirst

falsc truc lnutat10n gcnulnc
famous unknown lmmensc tiny, minute
fast slow Hllprlson frcc
fat thin include exclude
feeblc sturdy, strong, powerful lncreasc decrease
fcw many inf'erior supcnor
flnd lose inhabitcd uninhabitcd
last inhalc exhale
fold unfold lnsldc outside
foolish WiS() intelligent unintelligent, stupid
forelegs hincl legs intentional accidental
forget remember interesting uninteresting, dull
 Words Antonyms I Words l A 1:nyms I
interior exterior, outside INorth lSOuth l
intemal external 10bedient l SObedent l
101n separate 16dd lCVen l
Jun10r senlor 10ffcr lrefusc _J
JuStiCC injustice lopen l hit J
king subiect 13
[ l imist l
knowledge lgnorancc 10ut lin l
land SCa lparC IChH I
landlord tcnant lpaSt lprescnt __J
large little,srnall

first 153
1
laugh cry lpemanem l mpOrary l
hwful unlawful Se
11 ldiSplCase _1
lawyer client
laz industrious, energetic
leader follower 155]ite l limp01ite,rude l
lecturer student
left ght lpOVerty lWCalth l
lender borrower lp6werful l ebL,We
lengthen shorten
less more lp Vate lpublic ____J
light dark, heavy limpu
like dislikc,unlikc I J
likely unlikely lquahied nq 5

little large, much, big IF i
ldOW J
lofty lowly
long short 5
: lp051 1
ht lWrong,lCft _

loss find, win
loud soft
low high
loyal disloyal ISatiSfactory lunSatisfactory l
mad sanc
magnetize demagnetize [555


lnCW I
mastcr scrvant ISeCu lhSeCu w __J
lllattlrc immature
maxlmum Irllnllnum :

[ ltriVial J
me you IShOpkCeper lcustOIner l
merry mrrthless, sad ldmplC ICOmphCttcd l
minonty maJonty lsillgtllar 11)lllral _ .

Iniscr spendthrift ldim l 19 ,,1:_

misunderstand understand IS I nk __
narrow wide 1 m lHq d _
near far, distant lsOrOW bOy _
neat untidy
ncw old [5 1
night day ISpeakCr lliStCncr l
nolsy quiet 1
IHC I
 Antonyms Words Synonyms
Words
crooked to an ov to irritate, to bother
straight
to answer to reply
strong weak
to appcar to scem
success failure
to arnve to reach
sunny cloudy
to assurc to guarantee
take glve
short
tarne wild
B
teacher pupil Words 11011

thick thin backbone spinc

tlght slack, loose backside behind,bOttol
tOp bottom bad (not good) poor, naughlY
opaquc ballot Ooll
transparent
truth untruth,liC becomine fitting
believable plausible
up down
bcllv stomach
vacant occupied
bendy flexible
valuable valueless
benefl ial avourable
victory defeat generous
beneficiant
virtuc VlCC
bid tender
visiblc invisible weird
bizane
voluntary compulsory blameless innocent
vowel consonant bloodbath Inassacrc
wax vane bloodless cold
wisdom folly branch deoartment
within VVithout brave lCOurag10us
Words Antonyms brow lorehead

LIsT OF SYNONYMS bu ,(telcphonc) ngaged

to bear on sth. to affect
Words Synonyms
lo beat to defeat
about approxlm .o start
to beein
abstract surnmary
to behave to act
almost nearly
Io bring sb. uP to ralse
animated lively
to b nL sth.back lto rcintroducc
anvwav besides
to bring sth. on tO causc
apparcnt obvious
aoplicable relevant
appreciable considerable C
ardour passlon
candy sweet
arisc occur
charter constitution
aromatic fragrant
chieflv mainly
anful crafty
to chop to cut
association organization
citation quotation
attractive appealing
;lass lesson, course
awav absent
clever intelligent
awil terrlblc
coiffure hairstyle
to accomplish to achieve
to collect to gather
to accumulate to build up
COIIllC comedian
to administer to managc
complete TotaI
to adrrllt to confess
 lncord harmony destiny Fatr:
ronfederate accomplice dcvil satan
ronflict clash to differentiate to distinguish
o confuse to lnlx up disadvantaged deprived
onsiderate thoughtful to disappear to vanish

onstant Fixed to disclaim to deny
onstruction 0it.) interpretation discount reduction
lontemporary modern domesticate cultivate
rontrary OppOsltc dubious loubtful

oconvcv to communicate daybreak Cawn

llrrect Right decontrol deregulate
rook criminal to deduce to infer
E)icc deliberate planned
roller Jelicate fragile
[o denationalize to to pnvatize
9 Categonze to categonse to classify
BD Cenationalise (BE)
lcesy comy, tacky lo denote to indicate, to represent
;hoosy picky depraved wicked,cvil
horus refrain deserted abandoned
)clte to quote detached indifferent
LI k receptionist dicy Riskv
r close .oshut to dinlinish [o decrease
: collapse .o break down disagreeable unpleasant
or ort consolation disaster catastrophe
omrncnccmcnt graduation to disclose :o reveal
ompletely totally disgrace shame
l condemn to scntencc dossier Fllc
l confine to restrict dull (person) stupid
l conform to comply
o conncct to associate, to put E
through (telephone)
onstancy idelitv 3agcr Keen
onstitution stnicturc 3cocnorrllc profitable
l consult to refer to to elevate to raise, to promote
ontlnuous continual to encounter to COInc across
onventlon conference to enqulre .o investigate
)copc to managc especially oarticularly
ouch Sofa to establish to set up
'usade campalgn gverlasting eternal
lrativc healing oxcept apart from
rssed stubborn to explode to blow up

carth Soll

D C20CCntnC selfish
to emphasise to to strcss
ash sprint
emphasize
eceptive misleading [Iuge, immense
enollllous
:dicated committed
eouttv faimess
:fective faultv
essential fundamental
:ilberately intentionally
to evaluate to assess
demostrate to protcst
xactly precisely
3nllls leans
to compt to cXplre to run out
deprave
desert [o abandon cxtra additional
 F
.o fabricate .omanufacture
fanatic enthusiast
to d ft to illuminate to clarify; to light u
to float
Sillv
to suppose, to assume
fo(lish
to foretell to predict
fortunate lucky
:oycr obby
French dressing vinaigrette
garbage rubbish
gay homosexual
fo srab to selzc incidentall
Ve
gratis Free of charge
gravestone headstone
ucid
gLlt Intestine inflexible
madr
amous famed, renowned
1.

fantastic cati bHlliant

m2
fool idiot
nn
forehead brow
matte
formerly oreviouslv
n the
foxy cunning
fragrance perfume intellectual
rcl
to function io operate to intensi
W:
sarbase can (AE) rashcan (AE)
mild
fo glitter to sparkle
ind
Rrasping greedy
IIun
gratuity Iip IIliberal
mls(
:o grousc .o srumble

H
Hall ;orridor
Handsome sood-looking
rder
Happily fortunately
Hashish cannabis
to hazard to endanger Iearn
hermetic alrtlght
Hint trace, tip ivid

homc domestic
housebreaking burglary
to hurry o rush
to hand sth. out .o distribute
to cxarrllnc
hang-out haunt
Hard tough
Lo hawk to peddle
Hearsay nlrnour
hishbrow intellectual
Hole Gap
homicide murder
nungcr starvatlon
hvpothesis speculation

L
 mindless senseless
Lo rrllrror .o reflect
[ealous nvlous miserable Cenressins
lov iclight misread misinterpret
mistrust distrust
moderately reasonablv
more and more increasingly
movlc ill

hckin2 Irllsslng naked barc

Leading lnaln napkin serviette
Lcgltimate valid,leea l narrative a story
Livcablc habitable o
ncar to approach
oopy crazy nightfall dusk
ucid clear .o nominate to appoint
madness insanity noon mddav
magistrate Justice of the Peace to notify to inform
to rnaintaln to prese c nugatory worthless
mannecluln model nameless anonymous
matters things to narate to relate
the meantime meanwhile a natlve a local
meeting assembly necessary essential
merciless cruel nobilitv The Aristocracy
nudwav halfway non-stop :ontinuous
mild gentle noted famous
mind intellect notwithstanding howcVcr
to nunllnlzc To plav down numcrous many
tO IIISCOncclve To misunderstand
misery Cistress 0
mlssing lost
mo(AE) molncnt obdurate stubbom
modern contemporary oblieatorv compulsory
morcovcr in addition omnipotent all-powerful
murderer assassin off-season low season
ast Final organlc biological
Io memorize outside external
.o leam
lo overlook to llllSS
Lthal deadly
t00VCrscc to supervlse
Livid furious
obicct thing
lousy awful
oblique indircct
mackintosh waterproof coat out of date
obsolete
inaglcan con!urOr [o operate to function
.o masnify Io exaggerate decoration

ornament
manmade artifical to overhaul [o overtake
material fab c ovcrscas abroad
maybe perhaps, possibly
mcasurc degree P
mendacity lyins
portray

middleman intermediary oainting

emigrate particular soecific

o migrate

to imitate DattCrn sample

O rFllrFllC
 8

DCrCCptlon insieht
oocket book notebook

DOSSibility opportunity

oractically virtually

precedence oriority

prccis sul lmaF

DrCV10us preceding
prompt lmFnediatc
o provide to supply
:o put sth. back to postpone
papcr rnoncy notcs
passable satisfactorY
oeaceable peaceful
phantasm illusion
pOlsonous toxlC
post-mortem autopsy
pralse compliment
precept principle
DreSSing urgent
priority precedence
prosperous lffluent
orovided f to survlvc

Q
to quake to tremble
quite fairly

R
reasonable hir
refrain chorus
relisious devout
remark COIIIment
rernorsc regret
removable Cetachable
lo renouncc Lo glve up
.o respond to reply
rubbish nonsense
to ruc to rcgrct
satisfied convinced
scrumptious delicious
to select to choose
self-assured confident
significant meaningful indisputable
sincere honcst
soiled dirtv
stable steady unlawful
stupid siHv
suggest propose unfaithful
stinnsc dawn
surroundings environmenI nerally, normall
to symbolize to reprcsent


raw valn useless

uncooked
to vanquish to conquer
understandable comprehensible
vast huge
unfortunate lnlucky
unhurt [o visualize to imagine
uniniured
unmarried single
untimely premature W
unusual strange
rcbcllion Warranty
uprising
well timed rimely
to withstand lo rcslst
V well mannered Polite

emptincss Winery Vineyard

vacancy
vaguc indistinct
valueless worthless Z
to differ
o vary
virtuc advantage zeni PCak
to vacuum to hoover
 10

ENcr,rsn MCQs
(e) None of the above
1. A_isagroup of words that makes
complete sense. 10. Ice floats on water because

(a) Clause Sentence (a) It is spongy

(c) Complement Subject (b) It is trans parent
(c) It is an element which melts easily
Z. A is a sentence that has subject and a (d) Its weight is less than the weight of water
predicate.

of equal volume
(a)- Clause Sentence
(e) None of the above
(c) Complement Subject
11. At midnight, you heard the voice of several 2
3. In a sentence, person or thing about
people shouting 'fire". Which of the
something is said is limown as
following you would do?
(a) Clause (b)COmplel ent (a) Ensure where the fire had taken place and
(c) Subject (d)PrCdiCate
to what extent
4. In a sentencr is what is said about the (b) Continue to sleep till you are called for
subject. (c) Rush out of the room with buckets of water 2`
(a) Clause - (b)COmplelnent to extinguish the fire
(c) Subject (d)PrCdiCatc (d) Rush to the fire brigade station and inform
the officials about the fire 2
5 A _ sentence has one subject and one
(e)
predicate. None of the above
(a) Simple (b) Compound From 1940 to 1970, the amount of food production
6. A _ sentence has two or more clauses. per worker and per hour increased two fold. From 24
(a) Simple (b) Compound 1970 tfr 2fiX), food production per worker and per
hour increased one and a half times.
In these particular questions there are given some
statements, followed by the conclusion which 12. Each of the following, if true, could help to 25
appeals you to be the most correct. account for this trend except
7. You have been asked to appoint a personal (a) More workers were needed to produce the
secretary. Which of the following quality same unit of output
26`
would you consider as most important? (b) The number of farm workers increased
(a) She must have good experience (c) The number of hours worked per unit of
(b) She must have an imposing personality output decreased
(c) She must be highly educated ' (d) The use of chemical fertilizers decreased
27.
(d) She must be an efficient stenographer (e) None of the above
8. While riding on a scooter, you find someone 13. Unhurtis
28.
has been hurt by your scooter. Which of the
(a)Unhalllled (b)Simplc
following will be your responsibility?
(c)Grateful (d)Harlned 29
(a) Pay compensation for the injury and try to
dispose the matter 14. is also knolvn as modifier.
(b) Try to run away from the spot immediately (a)AttectiVe (b)Noun 30.
(c) Take him to the Doctor and arrange for the (C)Verb (d)COnJunctiOn
medical aid
(d) Stop your vehicle and say sorry
15. A _ has three degrees for cornparison. 31.
(a) Adjective (b) Noun
9. Generally a patient of tuberculosis visits the (c) Verb (d) Conjunction
hill stations because
(a) They are advised by the Physicians to do so 16. Mr. Nusrat Fateh Ali Khan is more famous 32.

(b) It is pleasure to enjoy the environment manv others.

(c) Atmospheric pressure decreases with the (a) Than (b) Then 33.
height from the sea level
(c) Farther (d) Further
(d) Cold weather is favorable for the patients of
tuberculosis


34 Middleman is closed to which of the

'17. His car his better many other cars in
fo1lowing word?
town.
(a)COmlllussioner (b) iddleclass
. (a) Then (b) Than
(C)Intemediary (d)Virtual worker
(c) Best (d) Cheap

18. Unprising is closest to

35. Shout is to whisper as run is to
(a) Stay (b)Stand
(a)Untruthful (b) Cheap (c) Hop
(c)Rebcllio (d) Simple (d)Walk
' 19. This is the 36. Choose the odd one out.
_ building.
(a) Mother (b)Aunt
Tallest
(a) (b) Taller
(c) Father
Tall
(c) (d) Smaller (d)SOn
n. She said that she was not happy. 37. If you rearrange the Ietters "IDIAN", you
(a) Farther (b) Further would have the name of a/an:
(c) Either (d) Neither (a) Country (b)OCCan
(c) State (d)City
21. We have not gone there _ a long time
38. GOLF isto FLOG as 8526isto:
(a)For (b)Since
(a)2856 (b)6258
22. She has been here afternoon. (c)5862 (d)5682
(a) For (b) Since
39. The synonym of Novice is:
23. He said he _ a house. (a)Hard (b) impressive
(a) Owns (b) Own (c) Simple (d) public
(c) Owned 40 The synonym close to naughty is:
24, He is not criminal in the of the law. (a) rope (b) wicked
(a)Eye (b)Eycs
(c) crooked (d) puzzled
(C)B00k (d)B00kS 41. The antonym of 'latest' is:
25 He will his exarlls. (a) Current fashion (b) Inl'lammation
(a)Givc (b) Give care (c) Old fashion (d) Dress
(C)Take (d) Take care (e) Fashion
42. The Synonym of latest is
26. The synonynl of`6to vanquish"is
(a) Current fashion (b) Inflammation
(a) To harm (b) To conquer (c) Dress (d) Fashion
(c) To vary (d) To be ungrateful (e) Old Fashion
27. All his are of a bad quality. 43, Nestle means:
(a) Chair (b) Chairs (a) Water (b) Snuggle
(c) Eatables (d) High Quality
28. Our wages _ high.
Are
(a) (b) Is 44. Choose the correctly spelled word
(a) Curnel (b)C010ncl
29. The police not corrupt. (c) Kernele (d)COmul
(a) Are (b) Is 45. The opposite to affection and care is:
30. She is happy today. ( Lust (b) Inhumanity
(a) Very (b) Too (c)Acting (d) Love
46. Blemish is closed to:
31. He comes a very good background. (a) Foible (b) Instrument
(a) Of (b) From (c) Constitution (d) telecommunication
(c) With -
47. A kid jumped the bed.
32. She is this cottttee. (a)In (b) Inside
(a) On (b)In (c)Into - (d) Only
She took
33. Winery- is to 48. cooking when she was YerY

(a) Vineyard young.

Grateful
(a)Up

On
(c) Busy Harmful
(C)TO Over

53. CoheslVe rneans
49. I can put______ with d Cult people. Changc
(b)On (a)StiCky
(a)Off Void
(d)Out (c)Applaud
(C)Up
50 Current fashion 54. Stack means
(b)01d fashiOn (a) friend (b) together
( InnamrrlatiOn
(d)Dress (c) to pile (d) to combine
(C)VOguc
51. Will You Please give me Tea' is
55. The antonYmofaPProve
( thC (b) a (a) disapProve (b) de apProve
(C)SOme -
(d)any (c) unapprove (d) applaud
52. It costs a lot to have both
(a) to fill (b)fill
(c) separated (d)tO SCParate

ANSWERS

4 5 a 6 b 7
b 2 a 3 C
11 12 b 13 a 14 a
8 C 9 C 10 d
18 19 a 20 b 21 a
15 a 16 a 17 b C

b 25 26 a 27 a 28
22 b 23 C 24 C
33 34 C 35 d
29 a 30 31 a 32 a a

39 40 b 41 C 42
36 b 37 38 b C
47 48 a 49 b
43 b 44 b 45 b 46 a C

52 53 a 54 C 55 a
50 C 51 C C
 13

GrxBnar, ENcr,rsrr
TEST I 8. At midnight, you heard the voice of severat
In a sentence, people shouting .fire'r. Which of the
iS What is said about following you would do?
the subject.
(a) (a) Ensure where the fire had taken place and
Clause (b)COmplerncnt
(c) Subject to what extent
(d)Predicatc
(b) Continue to sleep till you are called for
2. A _ sentence has one subject and one (c) Rush out of the room with buckets of water
predicate. to extinguish the fire
Simple
(a) (b) Compound (d) Rush to the fire brigade sration and inform
3. A_ sentence has two or more clauses. the officials about the fire
(a) Simple (b) Compound (e) None of the above

In these particular questions there are given some
statements, followed by the conclusion which
appeals you to be the most correct.
4. You have been asked to appoint a personal
secretaryo Which of the fOnowing quahty
would you consider is lnOst important?
(a)ShC Inust haVe good cxpenencc
(b)She must,ave an impOsing pcrsonality
(C)She FnuSt be highly educatcd
(d)ShC must be an encicnt stenographcr
5 While riding on a sc00ter,you rlnd someOne
has been hurt by your scootero Which of the
fo1lowing will be your respollsibihty?
(a)Pay compensation for the ittury and try to
dispose the lnatter
From 1940 to 1970, the amount of food production
per worker and per hour increased two fold. From
1970 to 2000, food production per worker and per
hour increased one and a half times.
9. Each of the following, if true, could help to
account for this trend except
(a) More workers were needed to produce the
same unit of output
(b) The number of farm workers increased
(c) The number of hours worked per unit of
output decreased
(d) The use of chemical fertilizers decreased
(e) None of the above
10. Unhurt is

(b)Try to run away from thc spotinu diately

(a) Unharmed Simple

(C)Takc him to the Doctor and arrangc for the (c) Grateful Harmed
medical aid

is also known as modifier.

(d)StOp your vehicle and say sorry
(a)AttcctiVe (b)Noun
Genera y a patient of tuberculosis visits the
6
(C)Verb (d)COttunctiOn
hill stations because .
(a)ThCy are advised by thc Physicians to do so 12. A_ has three degrees for comparison.
(b)ItiS plcasure to c oy the cn ronment (a) Adjective (b) Noun
(c)Atmosphe c pressutt decreascs with the (c) .Verb (d) Conjunction
hcight frorFl the Sca lcvcl
13. Mr. Nusrat ]Fateh Ali Khan is more famous
(d)C01d wcathcr is favorable for thc patients of
many others.
tubcrculosis
(a) Than (b) Then
(e)None ofthe abovc
(c) Farther (d) Further
7. lce floats on water because
(a)ItiS Spongy 14. His car his better many other cars in
(b)It iS trans parent town.
(C)ItiS an clement which mclts casily (a) Then (b) Than
(d)ItS weight is less than thc weight of watcr (c) Best (d)Cheap
of equal volume
(e)None ofthc above
15. Unprising is closest to
(a) Untruthful (b)ChCap
(c) Rebellion (d)Simple

 14

13. It costs a lot to have both_.

ANSWERS (a) to fill
(c)
(b)ill
separated (d)tO SCparatc
1. d 2. 3 b 4. a

d
14. Cohesive means

6. 7. 8. a
5. C
(a) Sticky Change

9. b 10. a a 12. a
(c) Applaud Void
13. a 14. b 15 C
15. Stack means
TEST (a) friend (b) together
(c) to pile (d) to combine
l. The synonyIIl close to naughty is:
(a) rope (b)WiCkCd
(c) crooked (d)puZZICd ANSWERS
2. The antonym of 'latest' is: 1. b 2. C 3. a 4. b
(a) Current fashion (b) Inflammation 5 b 6. b 7. 8.
(c) Old fashion (d) Dress 9. a 10. b 11. 12. C
(e) Fashion 13. C 14. a 15

The Synohym of latest is

3.
(a) Current fashion (b) lnflammation TEST III

(c) Dress (d) Fashion 1. Unhurtis

(e) Old Fashion (a)Unhallllcd Simple
Harmed
4. Nestle means: (c)Gratcful

(a) Water Snuggle 2. is also known as modifier.

(c) Eatables High Quality (a)Attcct C (b)Noun

5. Choose the correctly spelled word (C)VCrb (d)COttunc10n
(a) Curnel (b)C010nel 3. A- has three degrees for comparison.
(c) Kernele (d)COmul (a) Adjective (b) Noun
6. The opposite to affection and care is: (c) Verb (d) Conjunction
(a)Lust (b)Inhumanity 4. Mr. Nusrat Fateh Ali Khan is more famous
(c)Acting (d)Lovc many others.

7. Blenish is closed to: (a) Than Then

(a)Foiblc (b)InStrumcnt
(c) Farther Further
(C)COnstit tion (d)telecOrrlmunication 5. His car his better many other cars in
A kid jumped___ the bed. town.

8.
(b)InSidC
(a) Then Than
(a)In
e)Into (d)Only (c) Best Cheap
a

9. She took cooking when she was very 6. Unprising is closest to

young. (a) Untruthful (b)ChCap
(a) Up (b) on (c) Rebellion (d)Simplc
(c) To (d) Over 7. This is the building.
10. I can put______ with difrlcult people. (a)Tallest (b)TallCr
(a)Off (b)On (C)Tan (d)Smalier
-
(C)Up (d)Out 8 She said that she was not happy.
(a) Farlher (b) Further

Current fashion
(c) Either

(a)Inflarlmation Old fashion (d) Neither

(C)VOguc Dress 9 We have not gone there a long time

12. Will you please give me _ Tea. (a)For (b)Since
(a) the (b)a
-
10 She has bOen here_4afternoon.
(c) some (d)any
(a)For (b)Since

 - 1
15

11. He said he______a house. 5 Generally a patient of tuberculosis visits the

(a)OWns (b)OWn hill stations because
(C)OWned (a) They are advised by the Physicians to do so
12. He is not Crillunalin the_of the law (b) It is pleasure to enjoy the environment
(a)Eye (b)Eyes (c) Atmospheric pressure decreases with the
(C)B00k (d)B00kS height from the sea level
(d) Cold weather is favorable for the patients of
13. He will______his exaIIIs
(b) Give care tuberculosis
(a)G c
(d) Take care (e) None of the above
(C)T C
14. The synonym of
t'to vanquish" is 6. Ice floats on water because
(a) To harm (b) To conquer (a) It is spongy
(c) To vary (d) To be ungrateful (b) It is trans parent
- (c) It is an element which melts easily
15 All his_are of a bad quality. (d) Its weight is less than the weight of water
(a)Chair (b)ChairS of equal volume
(e) None of the above
ANSWERS 7. At midnight, you heard the voice of several
2. a 3. a 4. a people shouting 'tire"' Which of the

7. a b following You would do?

b 6. C 8
(a) Ensulre where the fire had taken place and
12. b

10 b 11. C
to what extent
14. a 15
13. C
(b) Continue to sleep till you are called fbr
ici nu.n out of the room with buckets of water
TEST - IV to extinguish the fire
sentence has one subject and one
(d) Rush to the fire brigade station and inftrrm
1. A
the officials about the fire
predicate.
(b) ComPound (e) None of the above
i"l- Simple
2, sentence has two or more clauses' From 1940 tn 1y70, the amount of food production
-' A(a)_-SimPle (b) ComPound per worker and per hour increased twg fold' From
per
iEzO to 2000, food production per worker and
given some
In these particular questions there are hour increased one and a half times'
rlte-u"t", followed by the conclusion which 8. Each of the following, if true, could help to
appeals You to be the most correct' account for this trend excePt
3. You have been asked to appoint a personal (a) More workers were needed to produce the
secretary. Which of the following quality same unit of output
would you consider as most important? (b) The number of farm workers increased
(a) She must have good exPerience i") ff," number of hours worked per unit of
output decrqased
(b) She must have an imposing personality
(d) Th; use of chemical fertilizers decreased
(c) She must be highlY educated (e) None of the above
(d) She must be an efficient stenographer
9. Unhurt is --
4. While riding on a scooter' you find someone (a) Unharmed
has been hurt by your scooter' Which
of the (b) SimPle
following will be your responsibility? (c) Grateful '
(a) Pay compensation for the injury and try to (d) Harmed
disPose the matter modifier'
(b) Try to run away from the spot immediately
10. is also known as
(a) Adjective
(c) Take him to the Doctor and arrange for the (b) Noun
medical aid (c) Verb
(d) StoP Your vehicle and saY sorrY (d) Conjunction

l
 16

ll. A has three degrees for comparison. 6, He will his exams.

(a)Attect C (b) Noun (a)G c (b) Give care
(C)Vcrb
- (d),Conjunction
(C)Take (d) Take care
12. lr. Akralll is more famous many
others. 7. The synonym of ,,to vanquish, is
(a)Than
(a) To harm
(b)Thcn (b) To conquer
(c)Farther (d)Furthcr
13. His car his better______Inany other cars in
(c) To vary
(d) To be ungrareful
town.
(a)Then (b)Than 8. All his are of a bad quality.
(C)Best (d)Chcap (a) Chair (b) Chairs
14. Unprising is closest to Our wages _
9 high.
(a)Untruthflll (a)Are (b)Is
(b)Cheap
(c)RebelliOn
10. The police not corrupt.
(a) Are (b) Is
(d)Simplc

15 This is the_____building. She is happy today.
(a)Tallcst (b)Tallcr (a) Very

@) Too
(C)Tall (d)Smaller 12. He is not criminal in the of the law.
(a)Eyc
ANSWERS (C)Book
(b)Eyes
(d)Books
1 a 2. b 3. a 4. C 13. He will his exarns. th
5. C 6 d 7. a b
8
(a)Give (b) Give care

9. a 10. a a 12. a
13. b 14.
(C)Takc (d) Take care
C 15. a

14. The synonym of ,to vanquish', is

TEST_v (a) To harm
1. She said that she'was not happy. (b) To conquer
(a)Farther (b) Further (c) To vary
(c)Eithcr (d) Neither (d) To be ungrateful
2. We have not gone there .- a long time 15. All his are of a bad quatity.
(a) For (b) Since (a)Chair 0)Chairs 2.
3. She has been here afternoon.
(a) For (b) Since ANSWERS

4. He said he _ a house. b 2. a 3. b 4. C
(a) Owns (b) Own 5 b 6. C 7. a
(c) Owned
8

9 a 10. a a 12. b 3.

5 He is nof criminal in the of the law. 13. 14. a 15 a

(a)Eyc (b)Eycs
(C)Book (d)Books

4.

_
 17

AnnlwtcAL QursrloNs
(c) Ameena must be featured exactly two days
QursuoN 1-6 ' after Rubia is featured
The manager of a radio program is going to (d) Rubia must be featured on Wednesday
feature six voialists - Mehreen, Nadia'
Perveen
i"i nuUiu must be featured later in the week
e*"nu, Rubia, and Sobia - on her hour radio show than Sobia
during the course of one week' She will
feature one
from Monday through 6. If Sobia is to be featured on Friday, what is the
,o.uilt on the show each day
schedule the vocalists total number of acceptable schedules available
Saturday. The manger must
to the manager?
for the show according to the tbltowing conditions
(01 (b)2
Mehreen must be featured earlier in the week (d)4
(c) 3
than Rubia
(e) 5
Perveen must be featured on Tuesday
Ameena must be featuied on the day 7. Da d ran Seventh from the tOp and 28th
day on from the bottOm in a dass.HOW many students
immediately before or immediately after the
are there lll the class?
which Nadia is featured.
( 36 (b)35
1. If Nadia is to be featured on Thursday' the is
(c)34 (d)33
earliest day on which Rubia can be featured (e)None ofthc aboVe
(a) MondaY (b) Tuesday
(c) WednesdaY (d)Friday 8 Select the fouowing WhCh iS dtterent from
(e) Saturday Other with respectto alphabe
(a)Egg (b)Acnc
2. If Sobia is to be featured on Friday, Mehreen (C)MOther (d)Giddy
must be feafured on
(a) Monday (b) TuesdaY g, Select from the following, which is different
(c) WednesdaY (d) ThursdaY from the o erS
(e) SaturdaY (a)Grcat (b)TrCat
(O TCars (d)Table
the
3. If Ameena is to be featured on Thursday' is
(e)Laters
latest day on which Mehreen can be features
(a) MondaY (b) TuesdaY 10. Select from the following which is different
(c) WednesdaY (d) FridaY from the others
(e) SaturdaY (a) ReaP (b)Rare
(c) Tore (d)TCar
4. Which of the following vocalists can be
(e) Pear
featured onMondaY?
(a)Nadia (b)AInecna Qr-nsttoN ll-12
(c)Rubia (d)SObia Answer these questions referring to the symbol'
alphabet or number sequence given below
5. If Sobia is to be featured on Thursday, which PY4#AQ@KB 8D 5 * E%'25 ?9R U $
of the following is true?
(a) Mehreen must be featured on Wednesday F@6HM3W(X)
ir) Nrai, must be featured on Saturday
 18

11. If alt the symbols are dropped from A

19.

sequence, then which element will be in
is open for people every
specialty hotel
center in the new sequence?
Monday to
Saturday but it is closed on
Sundays. The blstro gives out only lunch on
(a)5 Mondays, Tuesdays as well as Thursdays,
(b)E while it gives out only supper on Wednesdays,
(c)2 Fridays, as well as Saturdays. On days that
(d)Thcrc is nO center clcment Hotel is open for people, floors are cleaned and
12.tp 11 t ?,WinthesalnewttasB,E trees are watered according to the following

related to? guidelines:
o
(a)S? (b)6 l Trees are watered two days every week,
(C)W(X) (d)None ofthe abOve but not at all on repeated days anfl never
13.- Clorida is taller than Ivory. Emily is taUer than on the same day are the floors cleaned
Lovely. Lovely is taller than Enamol. To o Floors are cleaned three days every week,
determinb who among them is ths +qllg5! but never on repeated days and never on
which of the following further information, if the same day are the trees watered.
any, is required? If dinner is given out on a day that trees are
(a) Clorida is taller than Enamol and I_ovely watered, which of the following sentence
(b) No further information is needed should be true?
(c) Emily is taller Ivory (a) Floors are cleaned on Thursday
(d) Clorida is raller than Lovely (b) Trees are watered on Saturday
(e) Enamol is taller rhan Ckrrida (c) Floors are cleaned on Wednesday
14. Four of the following five are similar in a
(d) Trees are watered on Tuesday
definite way and so form a group. Which one (e) Trees are watered on Wednesday
ofthem does not belong to the group?
(a) Umbrella 20. Joseph, Jackie and Ninda are the three
(b).Gloves
(C)Shirt (d)Shoes
mountaineers. Joseph is
Jackie's brother,
(e) Cap Jackie is Ninda,s brother. Ninda is not
Josqph's brother. Therefore, Ninda is Josephrs
15. There are 2ti stcps in a Church. In the time sister.
Sandy comes down two steps, plato goes one (a) Should be True
step. If they start simultaneously and keep (b) May be False
their speed unifornr, then at which step from (c) Should be False
bottom will they meeL (d) Cannot be determined
(a) 9*. (b) l2rh
(c) l3tr' (ai g'n 2'1.. In a furniture store there are seven lamps.
(e) None of the above Every lamp has either ceramic or wood base,
and every liamp comes with either a red,
16. In certain code Language the words ' brown, or yellow color.
ROUTIhIE is writtcn as VMRGILI. How wil o Lot of lamps has a ceramic base
the word CRUELTY be written in that code
compared to a wood base
language? o AII red colored lamps are paired with
(a)VOCVZRL (b)WPCVZRL ceramic base
a
(C)VPCVZRL (d)VPVCZRL r There is no lamp with a wood base has a
(e)Nonc ofthe above
brown color
QtIESTION 17 _18
Which of the following sentence about the
1n each Of the following questiOns, groups Of
seven lamps is not true?
lctters havc bcen given,Out of which threc arc alikc.
(a) Five lamps have a ceramic base
Ch9ose the odd One Out.
(b) Five lamps have brown shades
17. ChOcDSe the Odd One Out (c) Five lamps have red shades
(a)Treat (b)Grcat (d) Four lamps have green shades
(c)Ratcs (d)Hcard (e) Four lamps have wood base

18. Ch00se the Odd One OuL

(a) Wear (b)

(c) Cear (d)
 21

QuesuoN 22_ 31 56. In 1.970, the average child visited the dentist
In each of the following questions, groups of once a year. By 1990 the number of visits
letters have been given, out of which three are alike increased to two. Today, the average child
in some way and one is different. Choose the odd 3 visits the dentist three times a year. Each of
one out. the following, if true, could explain this trend
22. Choose the odd one out. except.
(a) Curtain (b) Saree 'a) Better home care of teeth has reduced thc
(c) Shirt (d) Petticoat 35
, number ol'cavities
period
23, Choose the odd one out. 1) Oentist fee have declined over the
(a) (b) Class 16 Parents are more aware of the impoftance
Ground
(c) Teacher (d) Student i";ofdental care
ljlDental care has become less painful
U. Choose the odd one out. (e) ^lone of the above
(a) Inhabit (b) Vacate of new anti terrorist legislation
(c) Reside (d) Dwell 36 ^--,!tion
y:'1.'. defend themsclves againit the
(a) dairn', author's strategy by arguing
25 Choose the odd olle out. (b) fish India's border partners have also
(a) Cotton (b) Nylon
(c) Silk (d) Terylene (c) fieigl similar legislation
(d) runnert that past such legislation improved
' ?rt. Choose the odd one out. (c) Danishtion does not mean that the present
(a) Joy (b).Love do the same
(c) Hate (d) Toy ougsrtoN 37llto new law is not as strong as the
Every senten.
n. Choose the odd one out.
blanks. Every blank rnce personnel are not always
(a) Rule (b) Common
(c) Law (d) Custom misplaced. Below ev.
specified as option. Sel,r.
?8. Choose the odd one out. blank that perfectly fits *re tneanir".
(a) Brother (b) Father as a whole. roll, 36 7o of the
(c) Uncle (d) Srudent 2fi)4'
37. The fact that the- or f'Y--InsurveY
29. Choose the odd one out. as famous * it orr.u ,n* "orilillomer
(a) Parrot (b) Pigeon
(c) Spanow (d) Kiwi (a) Insidiousness---repeated seriously
30 Choose the odd one out. (b) Practice----inculcates
(a) Trickster (b) Juggler (c) Shine---presages e lasr
(c) Magician (d) Musician (d) Technique----presages
31. Choose the odd one out. (e) Caginess----indicates rs
(a) Attachment (b) Love 38. A child should not be---as being either very
(c) Hatred (d) Affectirrn shy or over aggressive.
QursuoN 32-36 (a) Categorized (b) Instructed

All the question given below has two words (c) Intoned (d) Unfocused
which have definite relationship to each other, (e) abstained
followed by five alphabets pairs of associated words. 39. President Farhaad sheikh of Egrpt igroring
Choose the alphabets pair of words. disapproval in the Arab world and in his
32. Degree: Angle , own administration, accepted Prime
Minister Zishan Ktran Invitation to visit Iraq
(a) area: square inch
in order to address the Iraqi parliament.
(b) milk:quart
(c) (a)'Acrimoilious---formally
civilization : classes
(d) letter: alphabet (b) Flawed---awkwardly
(e) time: minutes (c) Definite----earlier
33. Confirmed:Ingrained (d) Spiteful---plainti vely
(a) awareness : theoretical (e) Alluring----scrupulously
(b) financial :bankrupt

t
 ll. If all the symbols are dropped from th
(e) None of the above
sequence, then which elemcnt will be in l1 47. Generally a patient of tuberculosis visits the
center in the new sequence?
hill stations because
(a)5 (a) They are advised by the Physicians to do so
(b)E
(b) It is pleasure to enjoy the environment
(c)2 ay
(d)There is nO center elcmcnt
(c) Atmospheric pressure decreases with the
;We height from the sea level
12. #,8 is related to ?, W in the same way a,ru.. (d) Cold weather is favorable for the patienrs of
related to?
tuberculosis
(a) S? G) 6M (e) None of the above
(c) W(X) (d) Noneof t,
13. Clorida is taller than Ivory. Emily is 48. Ice floats on water because
Lovely. Lovely is taller than F (a) It is spongy
determinb who among them i. are given (b) It is trans parent
which of the following furtherrsions choose (c) It is an element which melts easily
my, h required? (d) Its weight is less than the weight of warer
(a) Clorida is taller than Enamc of equal volume
(b) No further information i, n'-Be'' Nltrogen (e) None of the above
(c) Emily is taller Ivory -rore' oxygen is
(d) Clorida is taller than Lovr 49. At midnighg you heard the voice of several
(e) Enamol is taller than Clr,'.e . . people shouting 'tire". Which of the following
obu'ty t*" yorr would do?
14. Four of the following fi, (a) Ensure where the fire had taken place and
definite way and so form -__ to what extent
of them does not belong ' milk makes i! whiJe. '(b) Continue to sleep till you are called lirr
(a)Umbrclla ir. Therefore, rice also (c) Rush out of the room with buckers of water
(C)Shirt to extinguish the fire
(e)Cap (b) True
(d) (d) Rush to the fire brigade srarion and inform
Probably true
1 the officials about the fire
TttCabovc (e) None of the above
step. Ifd for washing because 50 From 1940 to 1970, the amount of food
their i advertising is powerful production per worker and per hour increased
botfs shape is convenient two fold. From 1970 to 2fi)0, food production
1e
It dissolves dirt in water more easily per worker and per hour increased one and a
r/ The perfume is pleasant half times.
1e) None of the above Each of the following, if true, could help to
l,'' You have been asked to appoint a personal account for this trend except
secretary. Which of the following quality would (a) More workers were needed to produce the
you consider as most impontant? same unit of output
(a) She must have good experience (b) The number of farm workers increased
(b) She must have an imposing personality (c) The number of hours worked per unit of
(c) She musr be highly educatid output decreased
(d) Stre must be an efficient stenogrlpher (d) The use of chemical fertilizers decreased
(e) None of the above (e) None of the above
51. Starting in 1985, all drivers had to wear
4. While riding on a scooter, you find someone
helmets if they have to drive a two wheeler.
has been hurt by your scooter. Which of the
From which of the following can this statement
following will be your resg)nsibility?
be properly inferred?
(a) Pay compensation for the injury and try to (a) Some drivers may have worn helmets
dispose the matter before 1985, but all two wheeler drivers
(b) Try to run away from the spot immediately were required to wear them beginning in
(c) Take him to the Doctor and arrange for the 1985
medical aid (b) No drivers had to wear helmetS before 1985
(d) Stop your vehicle and say sorry
 (c) Two wheelers drivers were the first to be 56.
required to wear helmets
(d) Two wheelers drivers had to wear helmets
prior to 1985
(e) None of the above
52. Snakes and hawks are the predators of mice in
the field. Dogs which also feed on rnice are
bought on the scene. What will be the
immediate result?
(a) Increase in the number of snakes
(b) Decrease in the number of snakes and hawks
(c) Decrease in the number ol mice
(d) Decrease in the number of dogs
(e) None of the above
53. Average family income in the cities has
".
increased today as compared to the last few
years, as in most families these days' husbands
and wives are working. This sentences implies
all the following except
(a) Family income level was lower few years ago
(b) Wives earn more than husbands today
(c) It was more prevalent for one spouse to
work earlier than today
(d) More husbands and wives are working
today as compared to last few years
(e) None of the above
In L970, the average child visited the dentist
once a year. By 1990 the number of visits
increased to two. Today, the average child
visits the dentist three times a year. Each of
the following, if true, could explain this trend
except.
(a) Better home care of teeth has reduced thc
number ol'cavities
(b) Dentist fee have declined over the period
(c) Parents are more aware of the importance
of dental care
(d) Dental care has become less painful
(c) None of the above
Opposition of new anti terrorist legislation
could defend themsclves against the
legislation's author's strategy by arguing
(a) That India's border partners have also
passed similar legislation
(b) The fact that past such legislation improved
the situation does not mean that the present
bill will also do the same
(c) That the new law is not as strong as the
earlier bill
(d) That the defence personnel are not always
right
(e) None of the above

54. Team sports like cricket display socialist
tendencies in their requirements of individual
subordination to the authority of coaches and
nranagers.
Which of the following conclusion may not
be inferred from thc above information?
(a) All team sports have socialist tendencies
(b) All team sports are authoritarian
(c) Without employee subordination to
managerial authority, production for profit
would not be possible
(d) All team players are subordinate to their
coaches
(e) None of the above
55 If in your college hosiel mess, you find that the
vegetable curry being served for the last ten
days is having a lot of stones and you are fed
up with it. What will you do?
(a) Buy your own vegetables and cook it in
your room
(b) Irave consuming the vegetables altogether
(c) Speak with cook to change the vegetable
(d) Bring the matter to the notice of the mess in
charge and if nothing is done by him, then
inform the hostel administration
(e) None of the above
58 ln?m} according to a news po[,36 7o of the
voters had leaning towards patty "Y". In 2004,
tlris figure ros: to 46?o. Bul in another survey
the percentage \tras down to 407o. Therefore,
the party "7]' k likely to win the next election.
Which of the following, if true, would seriously
weaken the above conclusion?
(a) People tend to switch their votes at the last
minute
(b) It has been shown that 857o of the voters
belonging to the party "Y" vote in an
election as compared to 50o/t, of the voters
belonging to party "Z"
(c) People vote fbr the best candidate, not fbr
the party
(d) No one can predict how people will vote
(e) None of the above
59. Inllation rose by 4.5Vo over the second quarter,
by 3.59o during the first quarter and higher
than 2.5Vo recorded during the same time last
year. However, the higher price index did not
seem to alarm National stock index, as stock
prices remained steady.
Which of the following, if true, could explain
the reaction of National stock Index?
(a) The Prime minister announced that he was
concemed about the rising inflation
 (c) Two wheelers drivers were the first to be
required to wear helmets
(d) Two wheelers drivers had to wear helmets
prior to 1985
(e) None of the above
52. Snakes and hawks are the predators of mice in
the field. Dogs which also feed on rnice are
bought on the scene. What will be the
immediate result?
(a) Increase in the number of snakes
(b) Decrease in the number of snakes and hawks
(c) Decrease in the number of mice
(d) Decrease in the number ol dogs
(e) None of the above
53. Average famity income in the cities has
increased today as compared to the last few
yeans, as in most families these days' husbands
and wives are working. This sentences implies
aII the following except
(a) Family income level was lower few years ago
(b) Wives earn more than husbands today
(c) It was more prevalent for one spouse to
work earlier than today
(d) More husbands and wives are working
today as compared to last few years
(e) None of the above
54. Team sports like crickef disptay socialist
tendencies in their requirements of individual
subordination to the authority of coaches and
nranagens.
Which of the following conclusion may not
be inferred from thc above information?
(a) All team sports have socialist tendencies
(b) All team sports are authoritarian
(c) Without employee subordination to
managerial authority, production for profit
would not be possible
(d) att team players are subordinare to rheir
coaches
(e) None of the above
55 If in your college hostel mess, you find that the
vegetable curry being served for the last ten
days is having a lot of stones and you are fed
up with it. What wil you do?
(a) Buy your own vegetables and cook it in
your room
(b) Irave consuming the vegetables altogether
(c) Speak with cook to change the vegetable
(d) Bring the matter to the notice of the mess in
charge and if nothing is done by him, then
inform the hostel administration
(e) None of the above
56. In 1970, the average child visited the dentist
once a year. By 1990 the number of visits
increased to two. Today, the average child
visits the dentist three times a year. Each of
the following, if true, could explain this trend
except.
(a) Better home care of teeth has reduced thc
number ol'cavities
(b) Dentist fee have declined over the period
(c) Parents are more aware of the importance
of dental care
(d) Dental care has become less painful
(e) None of the above
57. Opposition of new anti terrorist legislation
could defend themsclves against the
legislation's author's strategy by arguing
(a) That India's border partners have also
passed similar legislation
(b) The fact that past such legislation improved
the situation does not mean that the present
bill will also do the same
(c) That the new law is not as strong as the
earlier bill
(d) That ,the del'ence personnel are not always
right
(e) None of the above
58 ln ?,002, according to a news poll, 36 Vo of the
voters had leaning towards party "Y". In 2004,
tlris figure rose to 46Vo.But in another survey
tlre percentage was down to 40Vo. Therefore,
the party "Z]' b likely to win the next election.
Which of the following, if true, would seriously
weaken the above conclusion?
(a) People tend to switch their votes at the last
minute
(b) It has been shown that 857o of the voters
belonging to the party "Y" vote in an
election as compared to 50oft, of the voters
belonging to party "2"
(c) People vote fbr the best candidate, not tbr
the party
(d) No one can predict how people will vote
(e) None of the above
59 Inflation rose by 4.5Vo over the second quarter,
by 3.5Vo during the first quafter and higher
thal,;r 2.57o reconded during the same time last
year. However, the higher price index did not
seem to alarm National stock index, as stock
prices remained steady.
Which of the following, if true, could explain
the reaction of National stock Index?
(a) The Prime rninister announced that he was
concerned about the rising inflation
 (b) Stock prices were steady because of a fear 62, If Victory and Terror are screened the same
that inflation would continue day, which of the following must be true about
(c) Econoniist warned that inilation would the film festival schedule if it conforrrs to its
continue parameters?
(d) Much of the quarterly increase in the price (a) Quest to Hope and Wellfleet will be
level was due to a summer drought effect screened the same day
on food pnce (b) Victory cannot be screened on Sunday
(e) None of the above (c) Sam and Rats will not be screened the same
60. While returning from the night day
cinema show, (d) Exactly one day of the schedule will
you notice that some stupid people are chasing not
have any film screening
two young and beautiful girls going in a Cab.
(e) Each day of the schedule will have ar least
What will you do in such a situation?
one film screening
(a) You will pass on your way quietly and take
no notice of thenr 63. AII of the following conform to the parameters
(b) You would ask the stupid people to run of the schedule ItrXCEPT
away or to go through the consequences (a) Sarn and Wellfleet are both screened on
(c) You would seek the help of some passerby Friday
so as to make the girls out of the stupid (b) Wellfleet and Terror are both screened on
people grip Thursday
(d) You would escorr girls up to market place (c) Victory and Wellfleet are both screened on
giving no chance to srupid people to play Saturday
their nasty games (d) Quest to Hope is not screened on Friday
(e) None of the above (e) Rats is not screened on Saturday

61. During ?ft02, advertising expenditure on 64. If Quest to Hope, Rats, and Terror are
readymade garments increased by Z|Vo wltie scheduled for Wednesday, Thursday, and
readymade garments rconsumption rose by Friday, respectively, and if the schedule
25Vo. conforms to the parameters, thEn it must be
(
true that
Each of the following if true could help explain (a) Victory is screened on Wednesday 1

the increase in garments consumption except (b) Victory is not screened on Friday (
(a) Per capita consumption ofunstitched (c) Wellfleet is screened on Friday I
garments declined (d) Wellfleet is screened on Wednesday I
(b) Advertising effectiveness increased (e) Victory is not screened on Saturday
(c)
Serving machine production doubled
(d) Readymade garments were available in QuBsuoNS 65 69 R
more shops
-
Five persons are sitting in a line. One of the two V
(e) None of the above persons, at the farthest ends, is sharp. the other one is (2

fair. An overweight person is sitting to the right of a Q

QursrroN 62-64 feeble person. A tall person is to the left of the fair RI
Six films (Quest to Hope, Rats, Sam, Terror, person and the feeble person is sitting between the Of
Victory, and Wellfleet) are scheduled to be screened sharp and overweight persons. el(
at a film festival. No more than two films may, be Q.
screened during one day, but all of the films will,be 65. TalI person is at which place counting from
right? Rc
screened exactly once during the festival held
Wednesday through Sunday. The screening schedule (a) First (b) Second Q.
adheres to these parameters:
(c) Third (d) Fourth Re
(e) Cannot be determined Q.
The producers of Terror will not allow it to be
screened anytime prior to the screening of Victory. ffi. Which of the following depicts the person to Re
Jos
Rats and Sam are complementary shofts and are to the left of feeble person?
be screened the same day. Quest to Hope (a)Sharp (b)OVerWeight Q.
and
Wellfleet are both black-and-white films and should (c)Fair (d)Ta R
not be screened the same day. (e) Cannot be determined COII
cera
WOo
 67. Which of the following persons is sitting in 69. If the fair person and oyerweight person
the ddle? swap their position, so also tall and feeble,
(a)Fair (b)feeble then who will be sitting to the left of the
(C)Sharp (d)TaH feeble persOn?
(e) Overweight (a)Tall (b)Fair
68. To whose left is the overweight person (C)Overweight (d)Sharp
(e) Cannot be determined
sitting?
(a) Fair (b)Sharp
(c) Tall (d)feeblc
(e) Cannot be determined

ANSWERS
C 2. a 3. d 4. d 5 d 6. b 7. C
8. d 9. d 10 11. d 12. d 13. 14.
15. a 16. 17. d 18. 19. 2(). 21. d
22. 23. a 24. b 25 a 26. d 27. b 28. d

29. d 30. d C 32. a 33. b 34. C 35 a

36. C 37. d 38. a 39. a 40 d 41. d 42
43. a 44. C 45 46. C 47 48. d 49. a
50. b 51. a 52. C 53. b 54. 55 d 56 C

57. C 58. b 59. 60 b a 62. d 63. a

64. C b 66. a 67. C 68. C 69 b
`5.

Sour ExpuruaroRy RrRsorus

Q.8: d Q.222 d
BeaSCDn:Allthe other groups conmin thc alphabet E. Reason: Except the word Curtain, all the others can be
Q.9: d wom.
Reason:AH hc other groups cont n thc letter T E A Q 24:d
R. Reason:Exccptthc wOrd Vacate,a11 0ther wOrds lncan
Q.11:d to stay
ReascDn:PY4AQKB8D5E2S9RUF6HM3 Q 25:d
W.We can sce that numbcr of clelnentsis even nu ber Reason:Only CottOn is Own in flelds.
(22),thcrC iS no ocnter elernent possible. Q 26:d
Q 12:d Reason:Exccpttoy,aH other wOrds dcsc bc emOtiOns.
Reason:Number of elellllents between the second pair Q 27:d
Of Clernc,tS iS dOuble with respect to tte number of
ReascDn:All words except coFrlmC3n arc related tO Law.
elelncnts bctwcen the i t pa ofelclnents.
Q 28:d
Q 17:d
Reason:Except hc wOrd studcnt,al other wOrds comc
ReascDn:All othcr groups have the lctters T E A R
in rclation.
Q 18:d 29:d
Q
Reason:Allthe words except eared
Reason:Except Kwi,al1 0tller words are the namcs Of
Q 20:d bds.
Reason:From thc above stateEcntit clcar dlat Ninda is
Q 30:d
Joseph's sister
1 W d n he"uR Mttd
Q.21:d
Reason:Itis said that sevcn lamps havc a cera c base Reason:Except the word Hatred,all the other wOrds
comparcd tO a w00d basc at least fOur shOuld have a
signify7 Love.
ccrarrllc base. erefore,notlnorc thanree can havc a
wood basc.
 24

ArvalYTrcAL Snnn PLE PAPERS

Leave consuming the vegetables altogether

SavrprE Perrn -I Speak with cook to change the vegetable
Bring the matter to the notice of the mess in
charge and if nothing is done by him, then
David ranks seventh from the top and 28th
inform the hostel administration
from the bottom in a class. How many
None of the above
students are there in the class?
(a)6 (b)35 8 Clorida is taller than Ivory. Emily is taller
(c) 3a than Lovely. Lovely is taller than Enamol. To
(d) Cannot be determined determine who among them is the tallest.
(e) None of the above which of the following further information, if
2, Select from the following, which is different any, is required?
from the others (a) Clorida is taller than Enamol and Lovely
(a) Eee (b)Acne (b) No further information is needed
(c) Mother (d)Giddy (c) Emily is taller Ivory
(d) Enamol is taller than Clonda
3. Select from the following, which is different
from the others 9. Four of the following five are similar in a
(a) Great (b)TrCat definite way and so form a group. Which one
(c) Tears (d)TablC of them does not belong to the group?
(e) Later (a)Umbrclla (b)Glovcs
4. Select from the following, which is different (C)Shirt (d)ShOes
from the others 10 There are 26 steps in a Church. In the time
(a) Reap (b)Rarc Sandy comes down two steps, Plato goes one
(c) Tore (d)TCar step. If they start simultaneously and keep
(e) Pear
their speed uniform, then at which step from
QursuoN 5 6 bottom will they meet.
-
Answer these questions refOrring to the symbol, (a) 9* (b) l2't'
alphabet or number sequence given below (c) 13ft (d) 8*
PY4#AQ KB8D5*E%2S?9RU$F@ (e) None of the above
6HM3W(X)
11. In certain code Language the words
5. If all the sy nbols are dropped from the ROUTINE is written as VMRGFLI. How
sequence,then which element will be in the will the word CRUELTY be written in that
center in the new sequence? code language?
(a)5 (b)E (a)VOCVZRL (b)WPCVZRL
(c) 2
(C)VPCVZRL (d)VPVCZRL
(d) There is no center element (e) None of the above
6. #,8 is related to ?, W irt the same way as B,E
Quesuou 12-13
is related to?
In each of the following questions, five groups of

(a)S? 6M
Ietters have given, out of which three are

been
(C)W(X) None of the above
in
alike some way and one is different. Choose the
7. If in your college hostel mess, you find that odd one out.
the vegetable curry being served for the last
ten days is having a lot ofstones and you are 12. Choose the odd one out.
fed up with it. What will you do? (a) Treat (b)Great
(a) Buy your own vegetables and cook it in (c) Rates (d)HCard
your room

 27

An overweight person is sitting to the right of a 3. Lullaby : Barcarole

feeble person. A tall person is to the left of the fair (a) birth : marriage (b) night : sunrise

person and the feeble person is sitting between the (c) cradle : gondola (d) song: verse
sharp and overweight persons. (e) song: sonneteer
12. Tall person is at which place counting from 4 T,oology: Animals
(a) ecology: pollution

right?
(b) botany: trees

(a)First (b)SCCOnd
(d)Fourth
(c) chemistry : molecule
(C)Third
(d) Past: public

(e)CannOt bc detcrrrllncd
(e) mathematics : arithmetic
13 Which of the fo1lowing deplctt the person to

the left of feeble person?

5. Dory: Van
(a) dairy :bufTalo (b) fish : bus
(a)Sharp (b)OVerwcight

(c) fieighter : caisson (d) runners : bat

(c)Fair (d)Tan
(e) (e) Danish :Dutch
Cannot be determined
me QwsrtoN 6 10
rue
14 Which of the fo1lowing persons is sitting in -
Every sentence given under has one or two
the niddle?
'IIIS
(a)Fair (b)feeblc blanks. Every blank shows that something has
(C) Sharp (d)Tall been misplaced. Below every sentence five words
bc (e) Overweight are speciFred as option. Select one right word for
every blank that perfectly fits the meaning of the
15. To whose left is the overweight
, Person sentences as a whole.
sitting?
(a) Fair (b)Sharp 6. The fact that the of conflict is no
(c) Tall (d)feebic longer as famous as it once was
(e) Cannot be determined progress in race dealings.
(a) Insidiousness----repeated
least
(b) Practice----inculcates
ANSWERS (c) Shine---presages
the C 2. d 3. C 4. C (d) Technique----presages
5. b 6. 7. b 8. (e) Caginess----indicates

don 9 d 10 a e 12. b
7. A child should not be- as being either
13 a 14. e 15. C
very shy or over aggressive.
:d on (a) Categorized (b) Instructed

:d on
Seupm Pnrrn - III (c) Intoned (d) Unfocused
(e) abstained
QuesrroN 1 5 President Farhaad sheikh of Egypt, ignoring
ry -
All the questions given below have two words
8

disapproval in the Arab world and in

which have definite relationship to each other, his dwn administration, accepted
r are followed by five alphabets pairs of associated Prime Minister Zishan Khan Invitation to
, and words. Choose the alphabets pair of words. visit Iraq in order to address the lraqi
redule parliament.
ust be 1. Degree: Angle (a) Acrimonious--fbrmally
(a) area : square inch (b) Flawed---awkwardly
(b) milk :quart
(c) civilization : classes (c) Definite----earlier
(d) letter: alphabet (d) Spiteful----plaintively
(e) time: minutes (e) Alluring----scrupulously

2. Confirmed : Ingrained 9' In his general----rnanner, he had covered

(a) awareness : theoretical himself against this type of loss.
(b) financial: bankrupt (a) thoughtful (b) fortunate
hc twO (c) undeveloped : immature (c) uncanng (d) circumspect
r onC IS (d) believable : unbelievable (e) scathing
(e) wary; gruelling
 29

;. If dinner is given out on a day that trees are 12. Choose the odd one out.

watered, which of the following sentence (a) Joy (b)

should be true? (c) Hate (d)
(a) Floors are cleaned on ThursdaY 13. Choose the odd one out.
(b) Trees are watered on SaturdaY (a) Rule (h) Common
(c) Floors are cleaned on Wednesday (c) Law (d) Custom
(d) Trees are watered on TuesdaY 14. Snakes and hawks are the predators of mice
(e) Trees are watered on WednesdaY in the freld. Dogs which also feed on mic:e are
bought on the scene. What will bt: the
6. Joseph, Jackie and Ninda are the three immediate result?
ne mountaineers. Joseph is Jackie's brother' (a) Increase in the number of snakes
ne Jackie is Ninda's brother. Ninda is not (b) Decrease in the number of snakes and hrawks
ep Joseph's brother. Therefore, Ninda is
(c) Decrease in the number of mice
,m Joseph's sister. (d) Decrease in the nurnber of dogs
(a) Should be True (b) MaY be False
(e) None of the above
(c) Should be False
(d) Cannot be determined 15 Average family income in the citiies tnas
In a furniture store there are seven lamps. Every increased today as cornpared to the llast ftew
larnp has either ceramic or wood base, and every yeors, as in most families these da5r5'

lamp comes with either a red, brown, or yellow husbands and wives are working. Ttuis
colour. sentences implies all the following except
. Lot of lamps has a ceramic base compared
(a) Family income leve[ was lower t'ew Years ago
to a wood base
(b) Wives earn more than husbands t<ilay
o All red coloured lamps are paired with a (c) It was more prevalent for one spouse to
work earlier than today
ceramic base
(d) More husbands and wives are working
o There is no lamp with a wood base has a
today as compared to last few Years
brown colour
(e) None of the above

7. Which of the following sentence about the

,seven lamps is not true? ANSWERS

(a) Five lamps have a ceramic base

(b) Five lamps have brown shades 1. a 2. c 3 d 4 C

(c) Five lamps have red shades 5 a 6. a 7. d 8. a

(d) Four lamps have green shades 9. 10 b 11. a 12. d
(e) Four lamps have wood base 13. b 14. c 15 b
8-f3

QuesuoN
In each of the following questions, four Sauru ParEn -V

groups of letters have been given, out of which

three are alike in some way and one is different. 1.. We not at all thought that he would way out
Choose the odd one out. to----in order to attain his aim; we always
considered him as a----man.
8. Choose the odd one out. (a) Appeal----dishonest
(a) Curtain (b) Saree
(b) Necromancy----pietistic
(c) Shirt (d) Petticoat
(c) Reason----admirable
9. Choose the odd onc out. (d) Subterfuge----honest
QussrtoN 2-15
(a) Ground (b) Class
(c) Teacher (d) Student
In these particular questions there are given
10. Choose the odd one out. some statements, followed by the conclusion
(a) Inhabit (b) Vacate which appeals you to be ttle most correct.
(c) Reside (d) Dwell 2. Nitrogen gas is lighter than oxygen. Nitrogen
gas is lighter than Helium. Therefore, oxygen
11. Choose the odd one out.
is the heaviest ofthe three gases.
(a) Cotton (b) Nylon
(a) Can't say (b) True
(c) Silk (d) Terylene
 30

(c) False (d) Probably true (b) Continue to sleep till you are called for
(e) None of the above (c) Rush out of the room with buckets of water
to extinguish the fire
3. The presence of calcium in milk makes it (d) Rush to the fire brigade station and inform
white. Rice too is white in color. Therefore, the officials about the fire
rice also contains calcium. (e) None of the above
(a) Can't say (b) True
(c) False (d) Probably true 10. From 1940 to 1970, the amount of fbod
(e) None of the above production per worker and per hour
4. Soap is used for washing because increased two fold. From 1970 to 2fi)0, food
(a) The advertising is powerful production per worker and per hour
(b) Its shape is convenient increased one and a half times.
(c) It dissolves dirt in water more easily (a) Each of the following, if true, could help to
(d) The perfume is pleasant account for this trend except (a) More
(e) None of the above workers were needed to produce the same
5 You have beerfasked to appoint a personal unit of output
secretary. Which of the following quality (b) The number of farm workers increased
would you consider as most important? (c) 'The number of hours worked per unit of
(a) She must have good experience output decreased
15
(b) She must have an imposing personality (d) The use of chemical fertilizers decreased
(c) She must be highly educated (e) None of the above
(d) She must be an efficient stenographer Stdrting in 1985, all drivers had to wear
(e) None of the above helmets if they have to drive a two wheeler.
6. While riding on a scooter, you find somcone From which of the following can this
has been hurt by your scooter. Which of the staternent be properly inferred?
following will be your reslnnsibility? (a) Some drivers may have wom helmets
(a) Pay compensation for the injury and try to before 1985, but all two wheeler drivers
dispose the matter were required to wear them beginnrng in
(b) Try to run away from the spot immediately 1985
(c) Take him to the Doctor and arrange for the (b) No drivers had to wear helmets before 1985
medical aid (c) Two wheelers drivers were the first to be
(d) Stop your vehicle and say sorry required to wear helmets
(e) None of the above (d) Two wheelers drivers had to wear lrelmets
7. Generally a patient of tuberculosis visits the prior to 1985
hill stations because (e) None of the above
(a) They are advised by the Physicians to do so 12. Snakes and hawks are the predators of mice
(b) It is pleasure to enjoy the environment in the field. Dogs which also feed on mice are
(c) Atmospheric pressure decreases with the bought on the scene. What will be the
height from the sea level immediate result?
(d) Cold weather is favorable for the patients of (a) Increase in the number of snakes
tuberculosis (b) Decrease in the number of snakes and hawks
(e) None of the above (c) Decreasp in the number of mice
(d) Decrease in the number of dogs
8. Ice floats on water because (e) None of the above
(a) It is spongy
13. Average family income in the cities has
(b) It is trans parent
increased today as compared to the last few
(c) It is an element which melts easily years, as in most families these days'
(d) Its weight is less than the weight of water
husbands and wives are working. This
of equal volume
senterlces implies all the following except
(e) None of the above (a) Family income level was lower f'ew years
9 At midnight, you heard thc voicc of several ago
people shouting ({ire". Which of the (b) Wives earn more than husbands today
following you would do? (c) It was more prevalent for one spouse to
(a) Ensure where the fire had taken place and work earlier than today
to what extent
 31

(d) More husbands and wives are working

today as compared to last few years
(e) None of the above
14. Team sports like cricket, display socialist
tendencies in their requirements of
individual subordination to the authority of

coaches and rnanagers.

Which of the following conclusion may not

be inferred frorn the above information?

(a) All teanl sports have socialist tendencies
(b) All teanl sports are authoritarian
l to (c) Without employee subordination to
Dre managerial authodty, production for profit
mc would not be possible
(d) All team players are subordinate to their
coaches
Of (e) None of tlre above
15 lf in your college hostel mess, you find that
the vegetable curry being served for the last

ten days is having a lot of stones and you are

fed up with it. What will you do?

(a) Buy your own vegetables and cook it in

your ro()m
(b) Irave consuming the vegetables altogether

(c) Speak with cook to change the vegetable

(d) Bring the matter to the notice of the mess in

charge and if nothing is done by him, then

inform the hostel administration

(e) None of the above

ANSWERS
1. d 2. a 3. a 4. C
5 a 6. C 7. C 8. d

9. 10 b a 12. C

13. b 14. C 15. d

ks

tO
 34

37. The relationship between yield and maturity

29. A market where new securities are bought and
for securities differing only in the light of time
sold for the first time is called_.
or term to maturity is called
(a) Secondary market (b) Financial Market (a) Term structure of interest rates
(c) Money market (d) Primary market (b) Indifference Curve
30. A market for existing (used) securities rather (c) Yield Curve (d) Utility
than new issue is called . 38. A graph of the relationship between yields and
(a) Secondary market (b) FinancialMarket term to maturity for particular securities is
(c) Money market (d) Secondary market called .

(a)Yield curvc (b) Indifference Curve

31. Financial institutions that accept money from (d) Utility Curve
(C)Utility
savens and use those funds to make loans and
other financial investments in their own name 39. A rise in the average level of prices of goods
are best come under the umbrella of and services is called
(a) Banks (a) Inflation (b) Interest
(b) Financial intermediaries (c) Deflation (d) Compounding
(c) Government Organizations 40. Money paid (earned) for the use of money is
(d) Investment Companies
called .
32. A financial institution that underwrites (a) Interest (b) Inflation
(purchases at a fixed price on a fixed date) new (c) Deflation (d) None of the Above ,

securities for resale is called

41. Interest paid or earned on only the original
(a) Investment banker
arnount or principal borrowed or lent is
(b) Govemment Organizations
(c) Investment Companies
called .
(a) Compound Interest (b) Inflation
(d) Mortgage Institute (c) Future Value (d) Simple interest :

33. A financial instf,tution that originates (buys) 42. The value at some future time of a
mortgages primarily for resale is called
amount of money, or a series of
(a) Mortgage banker
evaluated at a given interest rate
(b) Govemment Organizations
(c) Investment Companies
cBlled_.
(a) Annuity (b) Present Value
(d) Investment banker (c) Future value or terminal value
34. The failure to rneet the terms of a contract, (d) Growth value
such as failure to make interest or principal 43. The current value of a future amount of
payments when due on a loan is called- money, or a series of payments, evaluated at a
(a)Fault (b)Default given interest rate is called_.
35 The ability to sell a significant volume of (a) Annuity (b) Present value
securities in a short period of timc in the (c) Future Value (d) Interest
secondary market without significant price 44. Irlterest earned or paid on any previous
concession is called
intcrest eamd, as well as on the principal
(a) Marketability or liquidity
borrowed or lent is called_.
(b) Maturity (a) Compound interest
(c) Yield Curve (b) Simple Interest
(d) Successful (c) Annuity (d) Prcsent Value
36. The life of security, the amourit of time before 45 Interest rate used to convert future values to
the principal amount of security becomes due
is called
present value is called_.
(a) Discount rate or capitalization rate
(a) Maturity (b) Interest
(b) Due date (c) Inflation
(c) Interest Time (d) Perpetuity
(d) Contract Termrnation Time
 33

13. In a _ partnership all partners have (c) Accel5,:rrated depreciation

unlimited liability for the debts of ttre frrrn (d) Declin ing balance depreciation
(a) General Partnership
(b) Limited partner 21. Methods ol'depreciation that write off the crcst
(c) Public Listed of a capital asset faster than under straright line
(d) Partnership depreciationt is called
(a) Accelerated depreciation
14. Member of a timited partnership not (b) Double d,ecllining method
personally liablc for the debts of the (c) Straight lini: depreciation
parhrership is called (d) Linear depn:ciation method
(a) Limited parrner (b) Parrnership
(c) Sole proprietorship (d) 22. Methods of depreciation calling for anr annual
Public listed
charge, based rn a fxed percentage, of the
1.5. Member of a partnership with unlimited assets depreciatd book value at the be,ginning
liability for the debts of the parbnership is of the year of urhich the depreciation charge
called-. applies is called__.
(a) General partnership (a) Declining bdlance depreciation
st (b) Corporation (b) Double declining method
he (c) Sole proprietorship (c) Straight line depreciation
(d) Public unlisted (d) Linear depreciation method
16. A business form legally separate from its 23. Cash distribution of earnings to stockholders,
owners. Its distinguishing features include usually on a quarterly basis is called _.
limited liability, easy transfer of ownership, (a) Cash dividend (b) Cash gain

unlimitd life, and an ability to raise large sums (c) Earnings after tax (d) Bonus
of capital is called_. The amount by which the proceeds from the
(a) Corporation (b) Limited company 24.

sale of a capital asset exceeds (is less than) the

(c) Public Company (d) Partnership

asset's original cost is called _.
17. Taxation of the same income twice. A classic (a) Capital gain (loss) (b) Bonus
example is taxation of income at the cortrrcrate (c) Earnings after tax (d) Cash gain
Ievel and again as dividend income when
received by the shareholder is called
25. All institutions and procedure for bringing
buyers and sellers of financial instrurnents

(a) Depreciation
(b) Accounting together is called
(c) (a) Money Market (b) Primary Market
Double Declining Method
(d) Double taxation
(c) Financial markets (d) Secondary Market
18. A business form that provides it owners (caled 26. The market for short term Qess than one year

members) with corporate style limited personal original rnaturity) government and corporate

liability and the federal tax treatment of a debt securities, it also includes government
partnership is called securities originally issued with maturities of

(a) Partnership (b) Sole proprietorship
(c) Limited liability company (LLC)
(d) Public Unlisted Company
19. The systematic allocation of the cost of
capital asset over a period of time for financial
reporting purposed, tax purposes, or both is
more than one year but that now have a year
or less until maturiff is called
(a) Primary Market (b) Money market
(c) Secondary market (d) Financial Market
a
27. The rrarket for relatively long term (greater
than one year original maturity) financial
instruments is calld

called _.

(a) Salvage Value (a) Money Market (b) Capital marker

(b) Interest
(c) Secondary market (d) Financial Marker

(c) Earnings afrer tax (d) Depreciation

20. A method of depreciation that allocatcs 28 Bonds and stocks are examples of _.
expnses evenly over the depreciable life of the
(a) Secondary market (b) Financial Market
asset iscalled_. (c) Money market (d) Capital marker
(a) Double Taxarion Method
(b) Straight line depreciation
 /

34

29. A market where new securities are bought and 37 The relatiorship between yield and maturity
sold for the first time is cdled_.
for securities differing only in the light of time
or term to maturity is called
(a) Secondary market (b) Financial Market (a) Term structure of interest rates
(c) Money market (d) Primary market (b) Indifference Curve
30 A market for existing (used) securities rather (c) Yield Curve (d) Utility
than new issue is called 38. A graph of the relationship between yields and
(a) Secondary market (b) FinanciatMarket term to maturify for particular securities is
(c) Money market (d) Secondary marker called

(a)Yield curvc (b)Indiffc nce Curve
31. Financial institutions that accept money from
(C)Utility (d)UJlity Curve
sayers and use those funds to make loans and
other financial investments in their own name 39. A rise in the average level of prices of goods
are best come under the runbrella of _. and services is called_.
(a) Banks (a) Inflation (b) Interest
(b) Financial intermediaries (c) Deflation (d) Compounding
(c) Govemment Organizations
(d) Investment Companies
40. Money paid (earned) for the use of money is
called_.
32. A financial institution that underwrites (a) Interest (b)In atiOn 44
(purchases at a fxed price on a fixed date) new (c) Deflation (d)None ofthe Above
securities for resale is called
41. Interest paid or earned on only the original
(a) Investment banker
amount or principal borrowed or lent is
(b) Government Organizations
(c) Investment Companies
called_.
(a) Compound Interest (b) Inflation
(d) Mortgage Institute (c) Future Value (d) Simple inrerest
33. A financial institution that originates (buys) A. The value at some future time of a present 5(
mortgages primarily for resale is called
amount of money, or a series of payments,
(a) Mortgage banker
evaluated at a given interest rate is
(b) Government Organizations
(c) Investment Companies called_.
(a) Annuity (b) Present Value
(d) Investment banker (c) Future value or terminal value
34. The failure to meet the terms of a contract, (d) Growth value 51
such as failure to make interest or principal
43. The current value of a fufure amount of
payments when due on a loan is called_.
nxlney, or a series of payments, evaluated at a
(a)Fault (b)Default given interest rate is called_.
35 The ability to sell a significant volume of (a) Annuity (b) Present value
securities in a short period of- time in the (c) Future Value (d) Interest
secondary market without significant price 52
44. Irlterest earned or paid on any previous
concession is called
interest earnd, as well as on the principal
(a) Marketability or liquidity
borrowed or lent is called_.
(b) Maturity (a) Compound interest
(c) Yield Curve (b) Simple Interest
(d) Successful (c) Annuity (d) Present Value 53
36. The life of security, the amourit of time before 45 Interest rate ursed to convert future values to
the principal amount of security becomes due present value is called-.
iS called (a) Discount rate or capitalization rate
(a) Maturity (b) Interest
O) Due date (c) Inflation 541
(c) Interest Time (d) Perpetuity
(d) Coritract Termination Time
 35

6. A series of equal payments or receipts 55 A long term debt instrument issued by a

occurring over a specified number of corporation or government is called
periods-. (a) Bond (b) Stocks
(a) Present Value (b) Future Value (c) Debenture (d) Contract
(c) Interest (d) Annuity 56. The stated value of an asset is called-.
47. An ordinary annuity whose payments (a) Face value (b) Market Value
receipts continue forever is called (c) Intrinsic Value (d) True Value

(a) Perpetuity (b) Annuity 57. The statcd rate of interest on a bond is best

(c) Present Value (d) Future Value described by

48 A rate of interest quotcd for a year that has not (a) Interest Rate (b) Coupon rate
been adjusted for frequency of compounding. (c) Annuity (d) Simple Interest
If interest is compounded more than once a 58. A bond that never nutures is called-'
year, the effective interest rate will be higher (a) Stock (b) Debenture
than nominal rate. Such a rate is called-. (c) Consol (d) None of the Above
(a) Compound Interest 59. A bond that pays no interest but sells at a deep
(b) Effective annual interest discount from its face valuel it provides
(c) Amortization compensation to investors in the form of price
(d) Nominal (stated) interest rate
appreciation is called
49. The rate of intcret earned or paid after (a) Preferred Stock (b) Debenture

adjusting the nominal rate for fac'tors such as (c) Zrro coupon bond (d) CouPon
the number of compounding periods per year 60. A $pe of stock that promises (usually) fixed
called-.

is dividend, but at the discretion of the board of

(a) Effective annual interest rate directors. It has preference over comrnon stock
(b) Compound Interest in the payment of dividends and claims on
(c) Amortization (d) Simple Interest assets is called .

(a) Debenture

50. A tabte showing the repayment schedule of Annuity

interest and principal necessary to pay off a (c) Bond Preferred stock
loan by maturrty is cBlled-. zl represent the ultimate
that
Securities
(a) Amortization schedule ownership and ristri position in a corporation
' (b) Liquidation Schedule are called-.

(c) Rate of Retum (d) Interest Return (a) Debenture Common stock
51. The amount of rnoney that could be realized if (c) Prefened Stock Coupon
an asset or a group of assets is sold separately 62. The expocted rate of return on a bond if
of
from its operating organization is called-. bought at its current rnarket price and held to
rta (a) Amortization (b) Liquidation value
maturity is cdled-,
(c) Annual Interest Value (a) Bond discount (b) Yield to maturity
' (d) Compounded Value (c) Annuity (d) ExtraPolation
52. The amount a firm could be sold for as a 63. Estimote an unknown number that lies
continuing operating business is cdled-. sonrewhere between two known numbers is
(a) Market Value called
(b) Going concern value (a) Extrapolate (b) InterPolate
(c) Intrinsic Value (d) Face Value (c) Curve Making (d) Simulation
-.
53. The market price at which an asset trades is 64. The amount by which the face value of a bond
caIed exceeds its current piice is called-.
(a) Going Concem Valugr (a) Intrinsic Value (b) Bond discount
(b) Market
-. value (c) Extrinsic Value (d) Yield
(c) Intrinsic Value (d) Face Value
The amount by which the current price of a
65

54. The price a security "ought to have" based on bond exceeds its face value is called-.
all factors bearing on valuation is called . (a) Bond premium (b) Intrinsic Value
(a) Market value O) Face Value (c) Extrinsic Value (d) Yield
(c) Intrinsic value (d) 'Bond
 36

66. The variation in the market price of security 69. The ratio of the standard deviation of a
caused by changed in interest rates is distribution to the mean of that distribution is
calld . called_.
(a) Interest rate (b) Yield (a) Parameter
(c) Risk (d) All of the above (b) Coefficient of variation
67. Income on an investment plus any change in (c) Interest rate (d) Probability
market price, usually expressed a as 70 A measure of relative risk is
percentage of the beginning market price of the (a) Coefficient of Variation
investment is called_. (b) Interest rate -.
(a) Interest rate (b) Yield (c) Probability
(c) Risk (d) Return (d) Standard Error mean
68. The variability of returns from those that are
expected is called-. 71. A combination of two or more securities or
(a) Risk (b) Probability assets is best described by
(c) Return (a) Parameter (b) Program
(d) Coefficient of variation (c) Portfolio (d) Beta

ANSWERS
a 2. C a 4. b 5. C 6. C 7. a
8 C 9. a 10 C 11. b 12. a 13. a 14. a
15. a 16 a 17. d 18 C 19. d 20 b 21. a
22. a 23. a 24. a 25 C 26. b 27. b 28. d
29. d 30 d 31. b 32. a 33. a 34. b 35
36 37. a 38 a 39. a 40. a 41. d 42. c
43. b 44. a 45 a 46. d 47. a 48. d 49. a
50. a 51. b 52. b 53. b 54 C 55 56.
57. b 58. c . 59. C 60. d 61. b 62. b 63. b
64. b 65. a 66. d 67. d 68 a 69. b 70 a
71. C
4.

5.

6.

7.
 37

)r
ACCOUNTING
1. Accounting is a means to a(n) 9. CPA means
(a) End (b) Start (a) Certified Public Accountant
(c) Mid (b) Certified Private Accountani
2. (c) Certified Pupil Accountant
The primhry distinction between financial
and other types of accounting information is 10. A financial statement is a meens for
based on the _. communicating information about an
(a) Organization _
enterprise in terms.
(b) Users of the information (a) Import (b) Export
(c) Govemment (d) General public (c) Financial
3. An accounting system consists of the 1-1. Every financial statement in one way or
used by an organization to develop another relates to
accounting infonnation and cornmunicate (a) Time (b) Export
that information to decision makers. (c) Import
(a) Personnel (b) Procedures
(c) Records (d) All of the above 12; Potential investors use _ statements in
selecting among alternative investment

To be cost effective, the benefit of doing opportunities.

something must _ cost of doing it. (a) Import (b) Export
(a) Exceed (b) Precede (c) Financial (d) Financial times
5.. The primary external users of financial 13. In _ the owner is personally liable for
accounting information are _. the debts of the business.
(a) Investors (b) Creditors (a) Sole proprietorship
(c) Botha&b (b) Public unlisted company
6. External users of finrincial (c) Financial statements
accounting
include
(d) Private limited company
(a) Labor unions and general public 14, A is an unincorporated , business
(b) Governmental agencies and suppliers organization with a single owner.
(c) Customers and trade associations (a) Sole proprietorship
(d) All of the above (b) Public unlisted company
7. Investors and creditors (c) Financial statements
are ultimately
(d) Private limited company
interested in receiving back the amount they
have _invested. 15 Assets = liabilities +
(a) Loaned (a) Owner's equity (b) Outflow
(b) Invested or loaned respectively (c) Inflow (d) Human resource
8. The terms financial reporting and financial 16. ' means that in the absence of evidence
statements do not mean the same thing. to the contrary an enterprise is expected to
(a) True (b) False continue to operate in the foreseeable
future.
(a) Cost principle (b) Going concern
 38

(c) Sole proprietorship (d) Inflation 27. The collection of an account receivable will
cause a(n) in cash and a _..- in
17. is the term used to describe increasing
account receivable.
prices.
(a) Increase, increase (b) Increase, decrease
(a) Sole proprietorshiP (c) Decrease, increase
(b) Inflation (d) Decrease, decrease
(c) Deflation (d) Cost PrinciPle
28. is the most liquid of all assets'
18. is the term used to describe
(a) Cash (b) Human resource
decreasing prices. (c) Transport dePartment
(a) Sole proPrietorshiP (d) Machines
(b) Inflation
(c) Deflation 29. Accounts is a liabitity that requires
(d) Cost principle payment.

19. cash flows mean that cash increases'

Receivabie (b) PaYable
(at
(a) Positive (b) Negative 30. Account are assets that will shortly
(c) Stable convert into cash.
-
20. Financial stateIIlents include
(a) Receivable @) PaYable
(a) Balance sheet 31. On a balance sheet, assets are tisted in the
(b) Income statement order of =.--.
. (c) Statement of cash flows (a) Dollar amount (largest first)
(d) All of the above (b) Date of acquisition (earliest first)
on the (c) Ease of conversion to cash
21. Financial statements are all based
(d) Importance to the operation of the business
underlying transaction.
(a) Same (b) Different 32. Following are basic part(s) of an account
22. The term refers to enhancing the (a) Title and left side (debit side)
appearance of the enterprise's financial (b) Title and right side (credit side)
statements by taking certain steps near the (c) Right side (credit side)
end of the financial reporting period. (d) A&c
(a) Window dressing
(b) Dressing 33. The system requires that equal dollar
(c) Window appearance urrrorrt t" of debit and credit entries be made
--
(d) False dressing for everY business transaction'
(a) Double (b) Credit balance
23. The relationship among balance sheet, (c) Credit cash
income statement and statement of cash
flows is known as articulation . 34. On the statement of cash flows, a company
(a) True (b) False would report the purchase of machinery Bs
24. The investment of cash in the bmsiness by the
cash used in ..--.
(a) OPerating activities
owners will cause a(n) in an asset and
-- (b) Financing activities
in a(n) in owners' equitY.
(c) Purchasing activities
(a) Increase, increase (b) Increase, decrease
(d) Investing activities
(c) Decrease, increase (d) Decrease, decrease

The purchase of any asset on credit will

35. The two categories of stockholders' equity
25
usually found on the balance sheet of a
cause a(n) in the asset and an _.--
corporation are
in a liability. (a) Contributed capital and long-term liabilities
(a) (b) Increase, decrease
Increase, increase
(d) Decrease, decrease in) ContriUuted capital and property' plant' and'
(c) Decrease, increase -.
equiPment
26. The cast paymernt of an account payable or (c) Retained eamings and notes payable
note payable willl cause a ..- in th6 asset (d) Contributed capital and retained earnings
cash and a in the liabilitY Paid'
(a) Increase, increase (b) Increase, decrease 36. Most businesses earn revenues
(a) When they collect accounts receivable
--
(c) Decrease, inciease (d) Decrease, decrease
 (b) Through sales of 'goods or services to
44. Not all cash payments represent expense.

customers
(a)Truc (b)False
. (c) By borrowing money from a bank
(d) By selling shares of stock to shareholders 45 The _ indicates that expenses should be
recognized in the period(s) that the
37. Operating profitably causes a in expenditure helps to produce revenue.
owners'equity. (a) Matching principle
. (a) Decrease (b) Increase - (b) Double enEy system
38. 'represents the price of goods sbld and 46. Aafaaq Corporation reported the following
of services rendered to customers during the amounts at the end of the first year of
period. operations, December 31, 2010: contributed
(a) Profit (b) Revenue capital $50,000; sales revenue $2fi),Ofi); totat
(c) Expenses (d) Net income assets $150,000; $10,fiX) dividends; and total
39. The term means the cost of the goods liabilities $80,000. Retained earnings and
and services used up or consumed in the total expenses would be
process of obtaining revenues. (a) Retained earnings $20,000 and expenses
(a) Profit (b)Expcnses $170,000
(c) Net incomb (d)Debit (b) Retained earnings $30,000 and expenses
$160,000
40. What are the categories of cash flows that (c) Retained earnings $70,000 and expenses
appear on a statement of cash flows? $120,000
(a) Cash.flows from investing, ,financing, and (d) Retained eamings $80,000 and expenses
service activities
$110,000
(b) Cash flows from operating, production, and
internal activities 47. The government regulatory agency that has
(c) Cash flows from financing, production, and the legal authority to prescribe financial
growth activities reporting requirements for corporations that
(d) Cash flows from operating, investing, and sell their securities in interstate commerce is
financing activities the .
(a)FASB (b)FTC
4l'. The amount of rent expense reported on the (O SEC (d)APB
' income statement is _.
(a) The amount of cash paid for rent in the 48. An examination of the financial statements of

. current period a business to ensure that they conform with

(b),,The amount of cash paid for rent in the generally accepted accounting principles is
current period less any unpaid rent at the called

end of the period (a) A certification An audit

(c) The amount'of rent used up (incurred) in (c) A verification A validation

the current period to help generate revenue

49. One of the disadvantages of a colporation

(d) An increase in net income when compared to a parhrership is that .

42. If you wanted to lmow what accounting rules (a) The stockholders have limited liability
a company follows related to its inventory, (b) The stockholders are treated as a separate
where would you look? legal entity from the corporation
(a) The balance sheet (c) The corporation and its stockholders are
(b) The income statemenr subject to double taxation
(c)

The notes to the financial statements (d) The corporation must account for the
(d) The headings to the financial statements business's transactions separate and apart
43. What financial statement would you look at from those of the owners

to determine the total expensies of a business?

50 Failure to make an adjusting entry to

(a) Income statement

(b) Statement of retained earnings recognize accrued income taxes payable
(c) Statement of cash flows would cause an.
(a) Understatement of expenses, liabilities and
(d) Balance sheet
stockholders' equity
(b) Overstatement of expenses an'd liabilities

[
 40

(c) Understatement of expenses and liabilities 57. Payment of a liability would

and an overstatement of stockholders'
equity
(d) Understatement of
assets and stockholders'
equity
51. Which of the following is not a liability?
(a) Accounts payable (h) Retained eamings
(c) Notes payable (d) Unearned revenue
52. Adjusting entries
(a) Are primarily used to change account
balances because of accounting errors that
have been made.
(b) Usually are recorded as of the last day of
the accounting period
(c) Always change at least one
income
statement account balance and one balance
sheet account balance.
(d) b and c are correct.
53. Which of the following direct effects on the
fundamental accounting model is not
possible as a result of,tranqaction analysis?
(a) Increase a liability and increase an asset
(b) Decrease stockholders' equity and increase
an asset
(c) Increase an asset and decrease an asset
(d) Decrease stockholders, equity and decrease
an asset
54. 'Ihe principle which holds that all of the
extrenses incurrrcd in earning revenue should
be identified with the revenue recognized and
reported for the sanre perfiod is the
(a) Revenue principle (b) Liability prirrcipte
(c) Timing principle (d) Matching principle
55. phen a company buys equipment for
$60,000 and pays for one third in cash and
the other two thirds is financed by a note
payable, the following are the effecL on the
equation.
(a) Equipment increases by $60,000
(b) Liabilities increase by $40,000
(c) Total assets increase by $40,000
(d) All of the above effects occur on
equation
56. The accounts payable account has a
beginning balance of $2,000 and we
purchased $5,000 of inventory on credit
during the month. The ending balance was
$11200. How much did we pay our creditors
duripg the lnonth?
(a)$5,800 (b)$3,800
(c)$800
(d) None of the above amounts is correct
(a) Decrease stockholders, equity
(b) Decrease assets (c) Not iff".t
,rr.t,
(d) Increase stockholders' equity
6
58. If X Company paid $500 for the telephone
bill, this would
(a) Decrease assers (b) Increase assets
(c) Decrease expenses (d) Increase liabilities
59 For each transaction recorded in an accounting
system, the two basic equalities that must be
maintained at all times are
6:
(a) Assets = Liabilities + Stockholders'Equity.
(2) Net Income = Revenues + Expenses
(b) Cash Increase = Cash Inflows _ Cash
Outflows. (2) Net income = Revenues +
Expenses
(c) Assets = Liabilities + Stockholders,Equity. 66
(2) Debits = Credits
(d) Net Income = Revenues + Expenses. (2)
Debits = Credits
60. On April lr2013, the premium on a one-year
insurance policy on equipment was paid
amounting to $1,800. At the end of 2013
iend
of the accounting period), the financial 67
statements for 2013, would report
(a) Insurance expense, $i,:So; p."pulA
insurance $450
(b) Insurance expense, $1,g00; prepaid
insurance g0
(c) lnsurance expense, $0; prepaid insurance 68.
$1,800
(d) Insurance expense, $450; prepaid insurance
$1,3s0
61. Which group of accounts contains only those
that normally have a debit balance?
(a) Accounts receivable; Accumulated
depreciation; Fees earned
!t) lona investment; Cash; Contributed capital
(c) Cash; Inventory; Cost of Goods Sold
(d) Notes receivable; Wages payable; 69
Operating expenses
the 62. Which Group of accounts contains only those
that normally have a debit balance?
(a) Cash; Inventory; Prepaid Insurance
(b) Bond investment; Cash; Conrributed Capital
(c) Accounts Receivable; Dividends; Sales
Revenue 70.
(d) Notes Receivable; Wages payable;
Operating Expense
63. The assumption that a business can continue to
remain in operation into the futurr is the
(a) Cost principle
 41

(b) Continuityassumption (c) The total amount of stockholders' equity

(c) Unit-of-measureassumption
(d) Separate-entity assumption '
64. Which of the following events will
retained earnings to decrease?
(a) Dividends declared by the board
Directors
for a corporation
(d) The amount that shareholders have invested
by purchasing a corporation's stock
cause
71. X Corporation incurred selling expenses
of totaling $35,fi)0 which they agreed to pay
next month. Which of the following is NOT a

(b) Net income reported for the period result of this transaction?

(c) Incurring an expense (a) Assets decreased

(d) Both A and C decrease retained eamings (b) Net income decreased
(c) Stockholders' equity decreased
65. Which of the following would not be (d) Liabilities increased

considered a current asset?

(a) Inventories (b) Prepaid Expenses 72. Depreciation in spirit is similar to
(c) Equipment (a) Depletion (b) Amonization
(d) Accounts receivable (c) Depression
73. Balance sheet is always prepared

66. The collection of an accormt receivable fmm (a) For the year ended
a customer would (b) As on a specified date
(a) Increase total assets (c) None of these
(b) Decrease total assets
(c) Not affect total assets (one asset went 74. In insurance, the following profit and loss
prepared_.

accounts are
up...one went down)
(d) Decrease stockholders' equity (a) Separate for fire, a marine and accidents etc
(b) Consolidated for fire, marine and accidents
67. An example of an investing activity would 75.
be In Pakistan, partners can today be fixed at
Purchasing equipment with cash
number.

(a)

Buying inventory from a suptr ier on credit (a) 10
(b)

(C) Selling stock to investors for cash (025

(d) Repaying the pnnciple on a bank loan 76. When g00ds are given away as charity or
free samples,the purchases account should
68. Financial accomting _.
(a) Provides information primarily for extemal be .
decision makers ( Debited (b)crcdited
(b) Is required for corporations but probably (c)Recordcd in balance shect
would not be done by other business 77. The disco ltis a

entities (a) Personal account Nominal account

(c) Provides information primarily for the use (c) Asset account Real account
of managers of the company
(d) Has been practiced in this country for 78. All the direct xpenss are charged to
approximately the last 15 years
(a) Balance sheet
(b) Profit and loss account
69. Which flmancial statement shows the (c) Trading account
financial position of a business as of a given
79. The paynlent side of tlle cash b00k is under
date?
(a) Statement of retained eamings cost by Rs.400.lVhen overdraft,as per bank
(b) Income statement statelnent,s the starting point
(c) Statement of cash flows (a)Rs 2CXl will be deducted
(d) Balance sheet (b)Rs 2KXl will be added
(c)Rs 41Xl will be added
70. Retained earnings refer to
(a) The amount reported as "the bottom line" (d)Rs 4 will dcducted

80. Which one of the

on the income statement following

(b) The accumulated amou.nt of past eamings the permanent part

considered
of a corporation that has not been accounting record _.
distributed to srockholders' as dividends (a) Joumal trial balance
(b) Balance sheet

(c) Final accounrs (d) Trial balance
81. A working paper which is prepared by the
accountant for his own convenience is
called_
(a) Work sheet
(b) Cash flows starement
(c) Balance sheet (d) Final accounrs
82. On a balance sheet, assets are listed in the
order of
--.
(a) Dollar amount (largest first)
(b) Date of acquisition (earliest first)
' (c) Ease ofconversion to cash
(d) Importance to the operation of the business
83. On the statement of cash flows, a company
would report the purchase of machinery as
cash used in _.
(a) Operating activities
(b) Financing activities
(c) Purchasing activities
(d) Investing activities
84. The categories of
stockholders' equity
-two
usually
found on the balance sheet of a
corporation are _.
(a) Contributed capital and long-term liabilities
(b) Contributed capital and property, plant, and
equipment
(c) Retained earnings and notes payable
(d) Contributed. capital and rerained earnings
85. Most businesses earn revenues
(a) When they collect accounts receivable
(b) Through sales of goods or services
customers
(c) By borrowing money from a bank
(d) By selling shares of stock to shareholders
86. What are the categories of cash flows that
appear on a statement of cash flows?
(a) Cash flows from investing, financing, and
service activities
(b) Cash flows from operating, production, and
internal activities
(c) Cash flows from financing, production, and
growth activities
(d) Cash flows from operating, investing, and
financing activities
E7. The amount of rent expeirse reported on the
income statement is _.
(a) The amount of cash paid for rent in the
current period
(b) The amount of cash paid for rent in the
current period less any unpaid rent at the
end of the period
42
(c) The amount of rent used up (incurred) in
the current period to help generate revenue
(d) An increase in net income
88. If you wanted to know what accounting rules
a company follows related to its inventory,
where would you look?
(a) The balance sheer
(b) The income statement
(c) The notes to the financial statements
(d) The headings to the financial statemenrs
89. What financial
statement would you look at
to determine the total expenses of a business?
(a) Income statement
(b) Statement of retained earnings
(c) Statement of cash flows
(d) Balance sheer
90. X Corporation reported the following
amounts at the end of the first year of
operations, December 31, 20032 contributed
capital $50,fi)0; sales revenue $200,0fi); total
assets 9150,000; 910,0ffi dividends; and total
liabilities S80,000. Retained earnings and
total expenses would be
(a)Rctaincd camings $20,0 and expenses
$170,000
(b)Rctained canings $30,000 and expenses
$160,000
)Retained eamings $70,000 and expenses
$120,000
(d)Rctaincd earnings $80,000
and expenses
$110,C 0
to
91. The govemment regulatory agency that has
the legal authority to prescribe financial
reporting requirements for corporations that
sell their securities in interstate commerce is
the_______.
(a)FASB (b)FTC
(c)SEC (d)APB
92. An examination of the financial statements of
a business to ensure that they conform with
generally accepted accounting principles is
called
(a) a certification (b) an audit
(c) a verification (d) a validation
93. One of the disadvantages of a corporation
when compared to a partnership is that_.
(a) The stockholders have limited liability
(b) The stockholders are treated as a separate
Iegal entity from the corporarion
(c) The corporation and its stockholders are
subject to double taxation
 43
)d)in (d) The corporation must account
nuc
for the (C)Total assets increase by$40,00o
business's transactions separate and
apart (d)A11 0f the abOve cffects occur on the

from those of the owners

cquatiOn

Failure to
make an adjusting entry to
Q Sw:
recognize accrued income tax-es pajable
would cause an
yal
a
purchased $5,000 0f inventory 6n credit
during the month.The ending balance was
$1,200.HOw much did we pay our creditOrs
i dur g the lnOnth?.

kat t P
i
(a)$5,800
0)$3,800
ess? 1 (C)$800
(1)Unlcrs m Of asse and sbckhdde (d)Nonc Ofthe abOve amOunts is cOrrcct
l equlty
101.Pattnent Of a hab ty wOuld____
(a)Decrease stockh lders'cquity
(b)Decrease assets

Ing (c)NOt affect asscts

Of (d)Increase stOckh01dersi cquity
lted (d)Uneamcd revcnuc
102.lifltillll:w paid $500 fOr the telephOne
l,aA ting entries____.

tal
)tal
tnd (a)Are p ly used tO change accOunt (a)Decreasc assets
i balances becausc Of accOunting crrOrs that (b)Increasc assets
l haVe becn lnade
SCs
1 0U y arc rec J ttC htt day Of H:: : ittS
ses l the aCCOuntingpc : l".For each trans
m
l (c)Always/chang at least one incOme
SCS
statcmcnt account balance and Onc balance
Systen the two basi`
:ittT

shect accOunt balancc
mlntained at alltimes are___.

;es (d)Only B and c are cOrrect

97. Which of the following direct
efTects : l
Cash lnf10ws _ cash
fundamental accounting moaei-- on the Ou ows.(2)Net incOme=Rcvcnucs+

is not

possible as a result of traniaction Expenses

analvsis?
(a) Increase a liability ,na in"rlu."

,rl..", (C)Assets=Liabilities+stockhOldersl Equity.

(b) Decrease stockh;lders, equity

andln"r"u." (2)Debits=crcdits
an asset C)Net lncOrne=Rcvenues+ExPcnsCS.(2)
(C) Incrcasc ah asset and decrease an asset Debits=credits
(d)Decrcasc stOckh01dersi equity and dccrcasc
an asset

98. The principle which h01ds that al1 0f the

expenses lncurred in earning revenue shOJd

be identirled with the revenue recOgnized
and reported fOr the same pe
d is the

I
e l:

113 1iIT :11 : e

(b),Surancc ex"nsc,$1,800; P
lnsurance$0 d
p

il
payable,the fo owing are the efFects On the
(C) lll: Ce eXpCnse, $o; Prcpaid insurancc

(d) CC exPCnse,$45Q P p
d hsumnce
equation :
(a)Equipmcntincreases by$60,ocxl
(b)Liabilitics incrcase by$40,Ooo
 44

105. Which group of accounts contains only those
that normally have a debit balance?
(a) Accounts receivable;
Accumulated
depreciation; Fees eamed
(b) Bond investment; Cash; Contributed capital
'(c) Cash;Inventory; Cost of Goods Sold
(d) Notes receivable; Wages payable;
Operating expenses
106. Which Group of accounts contains only those
that normally have a debit balance?
(a) Cash; Inventory; prepaid lnsurance
(b) Bond investment; Cash; Contributed
Capital
(c) Accounts Receivable; Dividends; Sales
111. An example of an investing activity would be
(a) Purchasing equipment with cash
(b) Buying inventory from a supplier on credir
(c) Selling stock to investors for cash
(d) Repaying the principle on a bank loan
112. Financial accounting
(a) Provides informa=tion primarily for extemal
decision makers
(b) Is required for corporarions but probably
would not be done by other business
entities
(c) Provides information primarily for the use
of managers of the company
(d) Has been practiced in this country for

Revenue approximately the last 15 years
(d) Notes Receivable;

Wages Payable;
Operating Expense
113. Which financial statement shows the
financial position of a business as of a given
107. The assumption that a business can continue date?
to remain in operation into the future is the (a) Statement of retained eamings
(a) Cost principle (b) Income statement
(b) Continuity assumption (c) Statement of cash flows
(c) Unit-of-measure assumption (d) Balance sheet
(d) Separate-entity assumption
114. Retained earnings refer to
108. Which of the following events will cause (a) The amount reported as ,'the bottom line"
retained earnings to decrease? on the income statement
(a) Dividends declared by the board of (b) The accumulated amount of past earnings
Directors of a corporation that has not been
(b) Net income reported for the period distributed to stockholders' as dividends
(c) Incurring an expense (c) The total amount of stockholders, equity
(d) Both A and C decrease retained earnings for a corporation
(d) The amount that shareholders have invested
109. Which of the following would not be by purchasing a corporationrs stock
considered a current asset?
(a) Inventories (b) Prepaid Expenses
(c) Equipment
(d) Accounts receivable
110. The collection of an account receivable from
a customer would
(a) Increase total assets
(b) Decrease total assets
(c) Not affect total assets (one asset went
up...one went down)
(d) Decrease stockholders' equiry
 4o

ANSWERS
1 a 2. b 3. d 4. a 5 C 6 d 7. C

8 a 9. a 10 C a 12. C 13. a 14.

1 15 a 16. b 17. b 18. C 19. a 20 d 21.
22. 23. a 24 a 25 a 26. d 27. b 28 a

29 b 30 31. C 32. d 33. a 34. d 35 d

36 b 37. b 38 b 39 b 40. d 41. C 42. C

43 a 44. a 45 a 46. a 47. C 48 b 49. C

50 a 51. b 52. d 53. b 54. d 55 d 56.

57. b 58. a 59. C 60 a 61. C 62. a 63. b
64. d 65 C 66. C 67. a 68. a 69 d 70. b
71. a 72. b 73. b 74. b 75 b 76. b 77. b
78. C 79 C 80. d 81. a 82. C 83. d 84. d
85 b 86. d 87. C 88. C 89. a 90 a 91.
92. b 93. C 94. C 95. b 96. d 97 b 98. d
99. d 100 101. b 102. a 103. C 104. a 105 C

106. a 107. b 108. d 109. C 110. C 111. a 112. a

113. d 114. b

 46

ManrETtNG
1. The process by which companies create value 7. The set of all actual and potential buyers of a
for customers and build strong customer product or service is called
relationships in order to capture value form (a) Market
customers in return is called (b) Market management
(a) Marketing (c) Production
(b) Management (d) Exchange
(c) Human resource management
(d) Research 8. The art and science of choosing target markets
and building profitable relationships with them
2. The form human needs take as shaped by is called
culture and individual personality is called (a) Marketingmanagement
(b) Market offering
(a) Psychology (b) Demands (c) Production concept
(c) Hunger (d) Wants (d) Selling concept
3. Human wants that are backed by buying 9. The idea that consumers will favor products
power is called that are arnilable and highly affordable and
(a) Hunger (b) Wants that the or q,anization should therefore focus
(c) Demands (d) Offer on improvirlg production and distribution
efliciency is r alled.
4. Some combination of products, services,
(a) Selling c:ncept
information, or experiences offered to a market
(b) Producti() I concept
to satisfy a need or want is called
(a) Market offering (c) Market c )ncept
(b) Market myopia (d) Service concept
(c) Exchange 10. The idea that consurfiers will favor products
(d) Market segmentation that offer the most quality, performance,
5, The mistake of paying more attention to the
and features and that the organization
specific products a company offers than to should therefore devote its energy to
the benefits and experiences pfoduced by making continuous product improvement is
called
these products is called
(a) Market offering (a) Selling boncept (b) Product concept
(b) Exchange (c) Market concept (d) Service concept
(c) Market myopia 11. The idea that consumers will not buy enough
(d) Product segmentation
of the firm's products unless it undertskes a
6. The act of obtaining a desired object from large scale selling and promotion effort is
someone by offering something in return is called
called _. (a) Selling concept (b) Product concept
(a) Exchange (b) Market (c) Market concept (d) Service concept
(c) Concept (d) Production
 47

that 18. Working closelY with Partners in
, The marketing managemetrt philosophy goals

company dePartrnents and outside
. t ota. that achieving organizational

i' O.p.nat on knowing the needs and wants of ccDmpanl to jointly brillg greater Value
customers is called
target market and delving t* aelire$ (a) Partner relationship management
s:hcttlls better than COmpeJ10rs dO (b) Joint venture
called _.-. (c) Alliance
(a) Research (b) Selling concept
(d) Customer sharing
(c) Marketing concept (d) Service concept
19. The value of the entire stream of purchases
The idea that a company's marketing that the customer would make over a lifetime
' decisions should consider consumers' wants' of patronage is called
;h" company's requirements, - consumers' (a) Lifetime Patronage
long intetet! and society's long run O) Share of customer
",rn
interests is called (c) Customer relationshiP
rs of a
, (a) Ethical marketing concept (d) Customer lifetime value
(b) Societal marketing concept
20. The portion of the customer's purchasing
(c) Customer relationship management that a company gets in its product categories
(d) Customer PercePtion is called
of building and (a) Share of Qustomer (b) Profit
tl. ttre overall prooess (c) Product (d) Customer equitY
arkets maintaining profrtabte customer relationships
. them by delivering superior customer value and 21. The total combined customer lifetime value of
satisfaction is called all of the company's customers is called
(a) Customer relationship management (a) Share of customer
(b) Customer PercePtion (b) customer equity
(c) Customersatisfaction (c) Profit

(d) Customer relationshiP

(d) ComPetition

The process of developing and maintaining a

15. The customer's evaluation of the difference strategic fit between the organization's- goals

tretween all the benefits and all the costs of a

and capabilities and its changing marketing
marketing offer relative to those of opportunities is called -- --=-.

comPeting offers is called

.
(a) Vision Strategic planning
(a) Customerevaluation (c) Mission Objective
(b) Customer-Perceived value
(c) ComPetition 23. A statement of the organization's purpose J
what it wants to accomplish in the larger
(d) Customer generated value , environment is called
(a) Vision (b) Mission statement
Iucts 16. The extent to which a product's perceived (d) Goal
lnce, performance matches a buyer's expectation (c) Objective
rtion
,tO is called 24. The collection of businesses and products
nt is
. (a) Customer satisfaction that make uP the company is called
(b) (a) Business portfolio (b) Program

Customer matching

(c) CustomercomPetition (c) Project (d) Joint venture

(d) Customerevaluation 25. The process by which management evaluates

the products and businesses that make up the

17. Marketing messages' ads, and oiher brand
exchanges created by consumers themselves-
company is called
(a) Portfolio descriPtion
both invited and uninvited is called
(b) Portfolio analYsis
(a) Branding (c) Program management
(b) Consumer generated marketing (d) Vision evaluation
(c) Customer relationship management
(d) Consumer value
 48

. 26, A portfolio-planning method that evaluates a 32. Reducing the business portfolio by
company's strategic business units (SBLD in
eliminating products of business units that
terms of its market growth rate and relative
are not profitable or that no longer fit the
market share. SBUs are classified as stars, company,s overall strategy is called
cash cows, question marks, or dogs. The (a) Firing
method is called
(bf Downsizing
(c) Diversification (d) Development
(a) Growth-share matrix
(b) Product grid (c) Market grid 33. The series of departments that carry out
(d) Customer growrh grid value-creating activities to design, produce,
market, deliver, and ...ppo"i a firm,s
n, A portfolio-planning tool for identifying products is caUed
company growth opportunities through (a) Value chain
market penetration, market developmeit, (b) Supply chain
(c) Supply segmentation
product development, or diversificaiion is (d) Downsizing
called
(a) Growth share matrix 34. The network made up of the company,
(b) Product/market expansion grid suppliers, distributors, and, ultimately,
(c) Customer gowth grid customers who partner with each other to
(d) Market segmentation improve the .performance of the entire
system is best described by
28. A strategy for company growth by increasing (a) Supply chain
_.
sales of current products to current market (b) Supply strategy
segments without changing the product is (c) Supply penetrarion
called (d) Value delivery network
(a) Market penetration
(b) Market development 35. The marketing logic by which the busine5s
(c) Market segmentation unit hopes to create customer value and
(d) Market grid achieve profitable customer relationships is
called
29'. A strategy for company growth by (a) Iv[arketing vision (b) Marketing
identifying and developing ,"rn market srraregy
(c) Marketing vision
segments for current company products is (d) Market segmentation
called
(a) Market penetration 36, Dividing a marke( into distinct groups of
(b) Market devekrpmenr buyers who have different- needs,
(c) Market segmentation characteristics, or behaviors, and who might
(d) Market grid require separate products or marketing
programs is called
30. A strategy for company growth by offering (a) Marketing vision (b) Market
modified or new products to current market behaviors
(c) Market segmentation
segments is called (d) Market product programs
(a) Market development
(b) Innovation 37. A group of consumers who respond in a
(c) Diversification similar way to a given set of marketing
(d) Product development efforts is called
(a) Positioning (b) Market segmenr
31. A stratery for company growth through (c) Differentiation (d) Diversity
starting up or acquiring businesses outside
the company's current products and markets 3E. The process of evaluating each market
is called segment,s attractiveness and selecting one or
(a) Diversification (b) Vertical integration more segments to enter is called
(c) Horizontal integration (a) positioning G, M;;k"t t--set*;
(d) Backward integration (c) Marketsegmentation
(d) Differentiation
 50

53. Natural resources that are needed u, irp..t"l SAP
by marketers or that are affected by
' marketing activities is called
Marketing intelligence
(a) External environment
(b) Internal environment
(c) Competitor environment
(d) Natural envir<lnments
54. Developing strategies and practices that
create a world economy that the planet can temtic cOIIec d Si
(a) Green house effect

:
h
the mrkemg

(b) Global warming
(c) Political environmenr
(d) Environmental sustainability
55. Forces that create_new technologies, creating 8TC
new product and market opportunities ii (d)Advcrtising
called

(a) Technological environment
' (b) Extemal envilonment F
(c) Intemal environment
(d) Political environment
`

56. Laws, government agencies, and pressure sIITg
groups that influence and limit various i
' organizations and individuals in a given 63. Marketing fpsearch to gather preliminary
society are called information lhat wiil help definl problems
(a) Extemal environment and suggest hypothesis is called
(b) Political environmenr (a) Exploratoryresearch
(c) lnternal environment (b) Causal research 7:
(d) Technological environment (c) Descriptiye research
(d) Secondary research
57. Institutions and other forces that alfect
society,s basic values, perceptions, 64. Marketing research to better describe
preferences, and behaviors are marketing problems, situations or markets,
(a) Extemal environment ".lt"a such_as the market potential for a product or
,

(b) Internal environment the demographics and attitudes of consumers

(c) Cultural environment is called
(d) Home environment (a) Secondary research
58. Fresh understandling of customers and the (b) Exploratory research
marketplace derived from marketing (c) Causal research
information that become that basis f* (d) Descriprire resJarch
i
creating customer value and relationships is 65 Marketing research to test hypothesis abouil
called cause and effect relationships
(a) Market insight (b) Frysh insight called_-_-
is

(c) Customer insight (d) Customer-rlatabase (a) Descriptive research

59t (b) Causal rqnearch
lloptu .and procedures for assessing
(c) Secondar.l'research
information needs, developing the needed
information and hetping decision makers to (d) Explorakrry research
use the information to generate and validate 66. Information that already exists somewhet
actionable r-rstomrers and market insights is having been coilected for another purpose
called ca ed
(a) Marketing Information Systern (MIS)

a
(b) Enterprise Resource planning (ERp)
8:31 F

67, Information collected for the specific purpose Personal interviewing that involves inviting
six to ten people to gather for a t'ew hours

at hand is called
(a) Secondary data (b) Tertiary data with.a trained interviewer to talk about a

(c) Collected data (d) Primary data productr, service, or organizations. T'he

intervie* focuses the group discussion on
Computerized collections of information

important issues is called
available from online commercial sources or
(a) Online marketing research

via the internet is best described by _. (b) Segmented research

for
(a) Paid data
(c) Focus group interviewing
(b) Ob"servational data

about (d) Ethnographic research
(c) False data

m
(d) Commercial online database 74. Collecting primary data online through

internet surveys, online focus groups, \ryeb
Gathering primary data by observing

based experiments or tracking consumers'
relevant people, actions and situations is best
described by
(h) Online marketing research
(a) Primary research (b) Secondary research (b) Sampling
alysis, (c) Survey research (c) Online research
recific (d) Observational research (d) Focus group
tion is
A form of observational research ttrat 75. Gathering a small group of people online
involves sending trained observers to watch with a trained moderator to chat about a
earch
and interact with consumer in their natural pnoduct, service, or organization and gain
habitat is best described by _. qualitative insights about consumer attitudes
(a) Segmented research and behavior is called
(b) Survey research (a) Online focus groups
(c) Ethnographic research (b) Sample
(d) Research by trainers (c) Social class
.
(d) Opinion leader
Gathering primary data by asking people
questions about their knowledge, attitudes, 76. A segment of the population selected for
preferences, and buying behavior is called marketing research to represent the
cribe (a) Segmented research (a) Sample (b) Population
'kets, (b) Experimental research (c) (d)
Data Statistic
rct or (c) Ethnographic research
mers (d) Survey research 77. Managing detailed information about
individurl customer and carefully managing
72. Gathering primary data by selecting customer touch points in order to maximize
matched groups of subjects giving them customer loyalty is called
different treatments, controlling related (a) Customer relationship management (CRM)
factors, and checking for difference in group (b) Managing Information System (MIS)
responses is called (c) SAP
(a) Segmented research (d) ERP
(b) Ethnographic research
(c) Experimentalresearch
(d) Focus group research
 ANSWERS
2. d 3. C 4. a 5. C 6. a 7.

8. a 9. b 10 b 11. a 12. C 13. b 14. a

15 b 1` a 17. b 18. a 19. d 20. a 21. b

22. b 23. b 24. a 25 b 26. a 27. b 28.

29. b 30. d 32. b 33. a 34 d 35 b
36. C 37. 38. b 39. 40 b 41. a 42 a

43. b 44. a 45 b 46 b 47. d 48. a 49. b

50. d 51. d 52. d 53. d 54. d 55 56 b
57. C 5& C 59. a 60 a 61. b 62. b 63. a

64. d 65 b 66. b 67. d 68. d 69. d 70 C

71. d 72. C 73. 74. a 75. a 76. a 77.

2.

SI

el

Ci

([

(1

(C

G
al
tII

(a
(Ci
 53

MaTaGEMENT
l. Someone who works with and through other 7. Completlng actlvitles so that organizatlonal
people by coordinating their work activities goals are attained: referred to as "doing the
in order to accomplish organizational goals is right things" is called
(a) Efficiency (b) Effectiveness

(a) First line officer lrader (c) Output (d) Productivity

(c) Manager Worker

Management functions that involves the
Managers at the
lowest level of the proces$ of defining goals, establishing
organization who manage the work of non strategies for achieving those goals, and
managerial employees who are involved with developing plans to integrate and coordinate
the production or creation of the activities is called
organization's products are called (a) Planning (b) Organizing
(a) First line managers (c) L.eading (d) Controlling
(b) trader
(c) Manager 9. Management function that involves the
.(d) Worker process of determining what tasks are to bd
done, who is to do them, how the tasks are to
Managers between the first line level and the be grouped, who reports to whom, and were
top level of the organization who manage the decision are to be made is called
work of the first-line managers are (a) Planning (b) Irading
(a) Middle managers (b) First line --.
manager (c) Controlling (d) Organizing
(c) Top manager (d) trader
10. Management functions that involves
4. Managers at or near the top level of the motivating subordinates, influencing
organization who are responsible for making individuals or teams as they work, selecting
organization wide decisions and establishing the most effective communication channels,
the goals and plans that affect the entiie or dealing in any way with the employer
organizations are called_.
behavior issue is calldd
. (a) Worker (b) Top managers (a) Planning (b) Controlling
(c) Middle manager (d) First line manager (c) Irading (d) Organizing
5. The process of coordinating work activities 11. Management frinction that involves
so that they are completed eflicienfly and monitoring actual performance, comparing
effectively with and through other people is actual to be standard, and taking action, if
necessary is called
(a) Business process reengineering

(a) Controlling Planning

(b) Management

(c) Organizing lrading

(c) Psychology (d) Principles
12. The set of ongoing decisions and work
6. Getting the most output from the least activities in which managers engages in the
amount of inputs: referred to as "doing plan, organization and lead and control is
things right" is called
called
(a) Efficiency (b) Effectiveness (a) Decision making (b) kading
(c) Productivity - (d) Totaloutput
 54

(c) Management procoss 22. Systems that dynamically interact with their
(d) Controlling environment is called
(a) Open system (b) Closed system
13. Specific categories of managerial behavior is
(c) Operation (d) Process
called
(a) Management roles (b) tradership 23. An approach that says that organizations are
(c) Controlling (d) Organizing different and face different situations and
14. Managerial roles that involve people and require different ways of managing is called
other duties that are ceremonial and (a) Anthropology
symbolic in nature are called
(a) Interpersonal roles (b) Contingency perspectives
(b) Management roles (c) System perspective
(c) Interpersonal skills (d) Systematic perspective
(d) Informational roles 24. A deliberate arrangement of people to
15, Managerial roles that involve receiving, accomplish sonle specific purposc is
collecting, and disseminating information is called-.
called (a) Organization (b) Leading
(a) Informational roles
(b) Irading roles (c) Controliing (d) Delegating
(c) Management roles (d) Interpersonal roles 25 The reality that management is needed in all 33
16 Managerial roles that revolve around types and sizes of organization, at all
making choices is called organizational levels, in all organizational
(a) Informational roles areas and in organization ih all countries
(b) Decisional roles around the slobe is called
(c) Management roles (a) Universality of management 34`
(d) Interpersonal roles (b) General rnanagement
17. Knowledge of and proficiency in a
(c) Total managemen[
specialized field is called
(d) System management
(a) Technical skills (b) Interpersonal skills 26. The breakdown of jobs into narrow and
(c) Conceptual skills (d) Contextual skills repetitive tasks is called
18. The ability to work well with other people (a) Work break down (b) Division of labor
individually and in a group is called (c) Scientific management
(a) Technical skills (d) General management
(b) Decision making skills 27. The revolution which involves the advent of
(c) Human skills machine power, mass production and
(d) Conceprualskills efficient transportation is called
19. The ability to think and to conceptualize (a) Scientific revolution
about abstract and complex situations is (b) Interdisciplinary revolution
called (c) Industrialrevolution 36t
(a) Technical skills (d) Entropy
(b) Conceptualskills
28. The use of the scientific method to determine
(c) Decision making skills
the "one best way" for a job to be done is
(d) Human skills
called
20 A set of
interrelated and interdependent (a) Scientific management
parts arranged in a manner that produce a (b) Division of labor
unified whole is called (c) Systematic management
(a) Open system (b) System (d) Work break down
(c) Process (d) Operation
29 Writers who developed general theories
21. Systems that are not influenced by or do what mangers do and what constitutes good
not interact with their environment is management practice are known as
called a _. (a) Principles of management
(a) Open system (b) Closed system (b) Administrative --.
(c) Process (d) Operation (c) General administrative theorists
(d) Iraders
heir 30. Fundamental rules of management that 38. An internal organizational communication,
could be taught in schools and applied in all system that uses internet technolory and is
accessible only by organizational employecs
(d) Principles of management

(b) Bureaucracy (a) Internet (b) Fluid organizations

(c) Administrations (d) Workforce diversity (c) Intranet (d) Industrial revolution

31. A form of organization characterized by 39. A philosophy of management that is driven

division of labor, a clearly defined hierarchy, by customer needs arnd expectations and
detailed rules and regulations and focuses on continual improvement in wo$<
impersonal relationships is called_. processes is called
(a) Bureaucracy (b) Nationalism (a) Total quality managemenr
(c) Privac.v (d) Hypocrlsy (b) Six sigma
(c) Knowled ge management
The use of quantitative techniques to (d) Project management
improve decision making is called
(a) Quantitative approach ' 40, An organization that has developed the
(b) Qualitative approach capacity to continuously learn, adapt, and
(c) Research (d) Hawthorne studies change is called.
(a) Irarning organization
lin The field of study concerned with the actions (b) Fluid organization
at (behavior) of people at work is called (c) Virtual organization
(a) Psychology (d) Joint venture
(b) Organizational behavior

(c) Research (d) Bureaucracy Cultivating learning culture in which

organizational members systematically
A series of studies during the 1920s and 1930s gather knowledge and share it with others in
that provided new insights in individual and the organizations to achieve better
group behavior is called perf,ormance is called
(a) Hawthorne studies (a) Knowledge management
r and Ib) Maslow hierarchy of needs (b) Irarning management
(c) Scientific management (c) Virtual management
bor (d) Industrial revolution (d) Organic organization
A worKorce that is more heterogeneous in 42. A recognition of an inrrer life that nourishes
terms of gender, race, ethnicity, age and and is nourished by meaningful work that
ent of other characteristics that reflect differences takes place in the context of community is
and is called called
(a) Workforce diversity (a) Workplace diversity
(b) Workfbrce unity (b) Human resource planning
(c) Workforce spirituality (c) Psychological contract
The process whereby an individual or a (d) Workplace spirituality

group of individuals uses organized efforts 43, The view that managers are directly

and means to pursue opportunities to create for an organization's

responsible success or

value and grow by fulfilling wants and needs failure is called

through innovation and uniqueness, ng (a) Workplace culture

matter what resources are currently (b) Omnipotent view of management

(c) lradership

controlled is called

(a) Entrepreneurship (b) Intra preneurship (d) Symbolic view of management

(c) Management (d) kadership 44. The view that managers have only a limited

37. A comprehensive term describing the way an effect on substantive organizational

organization does its work by using outcomes because of the large number of
electronics linkages with its key factors outside their control is called
constituencies in order to efliciently and (a) Symbolic view of management
effectively achieve its goals is called (b) Omnipotent view of management
(a) E-business (b) Intemet (c) Extemal management
(c) Intranet (d) Fluid business (d) Environmental management
 56

45. A system of shared meaning within an 53. Interacting in specific \ilays with various
organization that determines, in large external stakeholders to gather and disseminate
degree, how errnployees act is called
(a) Organizational culture (a) Boundary spanning
(b) Psychological contract (b) Call center
- (c) General environment (c) Intemet
(d) Specific environment (d) Intranet
46. Cultures in which the key values are intensely 54. A narrow view of the world; an inability to
held and widely shared are called recognize dffierences between people is
(a) Positive culture (b) Negative culture called_.
(c) Strong cultures (d) Weak culture (a) Parochialism
(b) Ethnocentric attitude
47. Outside institutions or forces that potentially (c) Psychological contract
affect an organization's performance is
(d) Boundary spanning
called_.
(a) Extemal environment 55 The parochialistic belief that the best work
(b) Intemal environment approaches and practices are those of the
(c) Specific environment home country is called
(d) General environment (a) Egocentric attitude
(b) Polycentric attitude
48. The part of th,e environment that is directly (c) Ethnocentric attitude
relevant to the achievement of an
(d) Geocentric attitude
organization's goals is called_.
(a) Internal environment 56. The view that the managers in the host country
(b) Specific environment know the best worh approaches arid practices
(c) General environment
(d) External environment (a) Geocentric attitude
(b) Parochialism
49 Broad external conditions that may affect the (c) Ethnocentric attitude
organization is called (d) Polycentric attitude
(a)'General environment
(b) Specific environment 57. A world oriented view that focuses on using
(c) Internal environment the best approaches and people from around
(d) External environment the globe is called_.
(a) Polycentric attitude
50 The degree of change and complexity in an (b) Ethnocentric attitude
organization's enyironment is called (c) Geocentric attitude
(a) External uncertainty
(d) Boundary spanning
(b) Environmental unceftainty
(c) Internal certainty 58. A company that maintains significant
(d) Environmental certainty operations in multiple countries but manages
them from a base in the home country
51. The number of components in an
called_.
organization's environment and the extent of (a) Multinational corporation (MNC)
an organization's knowledge about its (b) Transnational corporation (TNC)
environmental components are called (c) Borderless company
(a) Environmental simplicity
(d) Virtual company
(b) Parochialism
(c) Environmental complexity 59. A company that maintains significanl,
(d) Boundary spanning operations in more than one country
decentralized management to the local
52. Any constituency in the environment that is
country is called :

affected by an organization's decisions and (a) Multinational Corporation (MNC)

policies and that can influence the (b) Transnational corporation (TNC)
organization is called
(c) Borderless company
(a) Stakeholders (b) Consumers
(d) Virtual company
(c) Stockholders (d) Empkryees
 56

45. A system of shared meaning within an 53. Interacting in specific ways with various
organization that determines, in large external stakeholders to gather and disseminate
degree, how employees act is called important information is called
(a) Organizational culture (a) Boundary spanning
(b) Psychological contract (b) Call center
- (c) Generalenvironment (c) Internet
(d) Specific environment (d) Intranet
46. Cultures in which the key value.s are iniensely 54. A narrow view of the world; an inability to
held and widely shared are called recognize differences between people is
(a) Positive culture (b) Negative culture called-.
(c) Strong cultures (d) Weak culture (a) Parochialism
(b) Ethnocentric attitude
47. Outside institutions or forces that potentially (c) Psychological contracl
affect an organization's performance is
(d) Boundary spanning
called_.
(a) External environment 55 The parochialistic belief that the best work
(b) Internal environment approaches and practices are those of the
(c) Specific environment home country is called
(d) General environment (a) Egocentric attitude
(b) Polycentric attitude
48. The part of the environment that is directly (c) Ethnocentric attitude
relevant to the achievement of an (d) Geocentric attitude
organization's goals is called_.
(a) Internal environment 56. The view that the managers in the host country
(b) Specific environment know the best work approaches and practices
(c) Generalenvironment for running their business is called
(d) External environment (a) Geocentric attitude
(b) Parochialism
49 Broad external conditions that may affect the (c) Ethnocentric attitude
organization is called (d) Polycentric attitude
(a)'General environment
(b) Specific environment 57. A world oriented view that focuses on using
(c) Internal environment the best approaches and people from around
(d) Extemal environment the globe is called_.
(a) Polycentric attitude
50. The degree of change and complexity in an (b) Ethnocentric attitude
organization's environment is called (c) Geocentric attitude
(a) External uncertainty
(d) Boundary spanning
(b) Environmental uncertainty
(c) Intemal certainty 58 A company that maintains significant
(d) Environmental certainty operations in multiple countries but manages
them from a base in the home country

The number of components in an

called
organization's environment and the extent of (a) Multinational corporation (MNC)
an organization's knowledge about its (b) Transnational corporation (TNC)
environmental components are called (c) Borderless company
(a) Environmental simplicity
(d) Virtual company
(b) Parochialism
(c) Environmental complexity 59. A company that maintains significant
(d) Boundary spanning operations in more than one country
decentralized management to the
52. Any constituency in the environment that is
country is called_.
affected by an organization's decisions and (a) Multinational Corporation (MNC)
policies and that can influence the (b) Transnational corporation (TNC)
organization is called (c) Borderless company
(a) Stakeholders (b) Consumers
(d) Virtual company
(c) Stockholders (d) Empkryees
 57

Yarious A global type of organization in which 68. A cultural dimension that describes when
ieminate `0. artificial geographical barriers are people are supposed to look aftertheir own
eliminated is called-. interests and those of their immediate family
(a) Borderless organization is called_.
(b) Vinual company (a) Collectivism (b) Individualism
(c) MNC (c) National culture (d) Local culture
(d) TNC 69. A cultural dimension that describes when

bility to An approach to going global that involves people expect to others in their group to look
ople is
making products at home and selling them after them and to protect them when they
overseas is called are in trouble is called_.
(a) Importing (b) Exporting (a) Collectivism (b) Individualism
(c) Licensing (d) Franchising (c) Power distance
62. An approach to going global that involves (d) Uncertainty avoidance
selling products at home that are made 70. A cultural measure of the extent to which a
oYerseas is called
society accepts the unequal distribution of
st work Exporting (b) Importing
(a) power in institutions and organizations is
r of the Licensing (d) Franchising
(c)
called_.
63. An approach to going global by (a) Individualism
manufacturing organizations that involve (b) Power distance
giving other organizations the right to use (c) Collectivism
your brand name, technology, or product (d) Uncertainty avoidance
specifications is called 71. A cultural measure of the degree to which
country (a) Licensing (b) Franchising people tolerate risk and unconventional
lractices (c) Exporting (d) Importing behavior is called
64. An approach to going global by services (a) Collectivism
(b) Uncertainty avoidance
organizations the right to use your brand
name, technolory, or product specification is
(c) Power distance
called
(d) Individualisrn
(a) Importing (b) Exporting 72. A national culture attribute describing the
rn using (c) Franchising (d) Licensing extent to wltrich societal values are
around characterized by assertiveness and
65 An approach to going glbbal that involves
materialism is called
partnerships between an organization and a (a) Quality of life (b) Individualism
foreign company in which both share (c) Collectivism (d) Quantity of lif'e
resources and knowledge in developing new
products or building production facilities is 73. A national culture attribute that reflects the
called_. emphasis placed upon relationship and
nificant (a) Foreign subsidiary (b) Strategic alliance
nanages (c) Franchising (d) Joint venture (a) Qualityoflife (b) Individualism
lntry is
(c) Collectivism (d) Quantity of lifb
66. An approach to going global that involves a 74. The feelings of confusion, disorientation, and
direct investment in a foreign country by emotional upheaval caused by being
setting up a separate and independent immersed in a new culture is called_.
production facility or office is called (a) Psychological culture
(a) Foreign subsidiary (b) Franchising (b) Culture shock
(c) Strategic alliance (d) Joint venture (c) Socialization
nificant (d) Collectivism
try but
67. The values and attitudes shared by
e local individuals from a specific country that 75. The process thrat employees go through to
shape their behavior and beliefs about that is adapt to an organization's culture is called
important is called
(a) National culture (b) Collectivism (a) Mentorship
(c) Individualism (d) Localculture (b) Organizational socialization
(c) Decision making (d) Alliance
-t

 58

76. A cholce from two or more alternatlves Is (c) Joint venture

called (d) Wrong decision
(a) Option (b) Decision
(c) Alternative (d) Problem 85 A subconscious process of making decisions
on the basis of experience and accumulated
77. A set of eight steps including identifying a judgment is called_.
problem, selecting an alternative and (a) Programmed decision
evaluating the decisionns effectiveness is (b) Intuitive decision making
called (c) Un programmed decision
(a) Programmeddecision (d) Procedure
(b) Un programmed decision
(c) Decision making process 86. Straight forward, familiar, and easily defined
(d) kadership problems is called
(a) Un structured problems
78. A discrepancy between an existing and a (b) Well structured problems
desired state of affairs is called_. (c) Procedure (d) Satisfying
(a) Gap analysis (b) Problem
(c) Solution 87. A repetitive decision that can be handled by
(d) Mentorship
79 Criteria that define what's relevant in a
a routine approach is called_.
(a) Routine problem
decision is called_.
(a) Solution (b) Procedure
(b) Decision criteria (c) Programmed decision
(c) Programmed decision (d) Operation
(d) Un programmed decision 88. A series of interrelated sequential steps that
can be used to respond to a well structured
80 Conveying a decision to those affected and problem is called_.
getting their commitment to it is called (a) Process (b) Operation
(c) Procedure (d) Program
(a) Implementation (b) Feedback
(c) Rationality (d) Mentorship 89. An explicit statement that telts managers
what they can or cannot do is called
81. describes choices that are consistent (a) Policy (b) Routine
and value maximizing within specified (c) Program (d) Rule
constraints A guideline that establishes
90 parameters for
(a) Implementation (b) Efficiency
(c) Rational decision making
making decision is called_.
(a) Policy (b) Routine
(d) Productivity (c) Rule (d) Program

Behavior that is national within the Problems that are nevy or unusual and for
parameters of a simplified decision making which information is ambiguous or
process, which is limited or bounded by an incomplete is called
individual's ability to process information is (a) Poorly structured problems
called_. (b) Structured problems
(a) Satisficing (b) Bounded rationality (c) Ambiguous problems
(c) Soldiering (d) Efficiency (d) Incomplete problems
83. Acceptance of solution that are .,good 92. A unique decision that requires a
enough" is called_. made solution is called_.
(a) Acceptance (a) Programmed decision
(b) Satisficing (b) Non programmed decision
(c) Escalation of decision (c) Certain decision (d) Risk
(d) Psychological contract
93. A situation in which a nranager can
84. An increased commitment to a previous accurate decisions because all outcomes
decision despite evidence that it may have known is called_.
been wrong is called_. (a) Rule (b) Risk
(a) Escalation of commitment (c) Uncertainty (d) Cenainty
(b) Contract

--._.:-._---.,.,. __ , ,rwEir;r
 Those conditions in which the decision 97. A decision making style characterized by a
maker is able to estimate the likelihood of high tolerance for ambiguity and a rational
certain outcomes is called way of thinking is called-.

(a) Uncertainty (b) Certainty (a) Directive style (b) Analytic style

(c) Risk (d) Rule (c) Behaviciral style (d) Conceptual style

A situation in which a decision maker has 98. A decision making style characterized by a
neither certainty nor reasonable probability high tolerance for ambiguity and an intuitive
estimate available is called-. wav of thinkins is called
(a) Certainty (b) Risk (a) Directive style (b) Behavioral style
(c) Rule (d) Uncertainty (c) Analytic style (d) Conceptual style
efined
A decision making style characterized by low 99. A decision making style characterized by a
tolerance for ambiguity and a rational way of low tolerance for arnbiguity and an intuitive

thinking is called-.

wav of thinkins is called
(a) Analytic style (b) Behavioral style (a) Conceptual style (b) Behavioral style
(c) Directive style (d) Conceptual style (c) Analytic style (d) Directive style
ed by,

ANSWERS
C 2. a 3. a 4. b 5. b 6. a 7. b
r that

a 9. d, 10. C 11. a 12 C 13. a 14 a

tured
15. a 16. b 17. a 18. C 19. b 20. b 21. b
22. 23. b 24. a 25. a 26 b 27. C 28. a

29 30 a 31. a 32. 33. b 34. a 35

36. 37. a 38. C 39. a 40 a 41. a 42. d
agers
43. b 44. a 45 a 46. C 47. a 48. b 49. a

50. b 51. C 52. a 53. a 54. a 55 C 56. d

,57. C 58. a 59 b 60 a 61. b 62. b 63. a

64. 65 b 66. a 67. a 68. b 69 a 70 b

s for

b 72. d 73. a 74. b 75. b 76 b 77. C

78 b 79. b 80. a 81. C 82. b 83. b 84.

85 b 86. b 87. C 88. C 89. d 90. 91. a

92. b 93. d 94. C 95. d 96. C 97. b 98. d

I for 99. b
or

stom



 60

BustNEss MarnEMATrcs
1. Assume a firm has 240 hours of skilled labor 7 what is the cost, if the firm produces 150
available each week to produce two pnoducts. units?
Each unit of the first product x requires 3 (a)1620 (b)1720
hours of skilled labor. A unit of second (c) 1820 (d)1920
product y requires 4 hours. The firm,s labor 8. what is the cOst, if the rlrm prbduccs 15
constraint in terms of an equation can be units?

written as
(a)695 795
(a)3x+4y=240 (b)4x+3y=240

(c)895 995
(c)2x+16y=240 (d)3x+4y=24
9. What is the cost, if the firm produces no
FoR QUEST10NS 2-5 units?
2. For depreciation of a veiricle, a firm uses (a)460 (b) 560
y = 68000 - 80fi)x equation, where y is current (c)660 (d) 760
value of the vehicle and x is number of years.
10 VVhat rlxed cost, can be assumed from the
The value of vehicle after two years will equatiOn?
be
(a)460 (b) s60

(a)48000 44000 (c)660 (d) 760

(c)5400 54000
11. x/4-x/5=6,the value of x is_?
3. what is the initial value of the vehicle
(a)100 (b)110
(a)68000 (b)69000 (c) 120 (d) 130
(c)8000 (d) 8000
4. The value of vehicle after three years will
12. xl6 - 5 =xl9 + 1, the value of x is
(a)108 (b)109
be
(C) 110 (d)120

(a)4400 44000

(c)5400 54000 13. Consider the equation 56x + 7y = 91, what is

the slope in the given equation.
5. The salvage value after 8 years will be
(a)8 (b)-8
(a)1000 (b)2000
(c)7 (d)-7
(c)3000 (d)4000
FoR QllESTIoNS 6-1(D 14. The value of the intercept in the equation in
QueStion 13 is
A firm which has fixed cost of Rs. 650 and

(a) 13
marginal cost of Rs. 9, which is the expense

(c) 15
incurred for each additional unit of output x. The
total cost C, can be expressed by the equation 15 Consider the equation 16y = 176. The slope
C=9x+560. of the given equation is _
(a)11 (b)12
6 What is the cOst, if the rlrm produces 10o
(c) 13 (d)14
uni ?

(a)1460 1720
(c) 1820 1920

: i]
=
J
 61

16. Consider the equation 16y

= 176. The x 25. A vegetable orchard charges Rs. 25 to enter
intercept in the give;r equation is_ and Rs. 60 a kilo for whatever is picked. The
(a)0 o)I cost C as a function of the numbei of pounds
(c)2 (d) Does nor exist x of apples picked can be written as
17. For the equation x - y, the x and y intercepts (a)C(x)=0.60x+o25
are -- (b)C(x)=60x+25
(C)C(x)=6x+2.5


(a)NOnc (b)
(d)C(x)=60x_25

(C) 1,0 (d)

11: rm has a rlxed cost Of Rs.7000 and 26

variable cOst Of 6tXl fOr each unit

pllllCtoWhatisth tOtalcOstOfprOduct15 :: 1 1: in
,

output will be______.

s 150 (a)1400o (b)15000 (a)Y=2500+85X (b)Y=2500+85X
(o 160oo (d)17000 (c)Y=2500=85X
(d)Y=25000+85X
19. A fFlrm has a rlxed cost Of Rs. 7000 and
variable cOst Of Rs. 6oo fOr each u t 27.

cs 15 WhatisthetOta1lostOfproduct30 l: e: 11
i ICt accordingly,
(a)17500 (b)18500 Supply: Q=_50+6P
(C) 19500 (d)20500 Demand:Q=230_8P
S eequmbHut, ?
es no 20 A rlrm has a total cOst Of Rs. 7000 and
' variable cOst Of Rs. 6000 fOr each unit
(c)30 (d)40
producto What is the rlxed cost?
(a)1000 28. FOr Question 27, the equ ibrium supply
(b)8000
(C)9000 quantity will be
n the (d) 10000
(a)60 (b)70
21. If y=30000oO_450000x,fOr tax purpOse the
(c)80 (d)90
value y Of a cOmputer aFter x yearso What
wili be the value of the cOmputer after 3 29.
years? ::in]llllicF7' the.equilibrium demand
(a)1650000 (b)1750000 (a)60 (b)70
(c) 1850000 (d)1950000 (c)80 (d)90
22. 30. Prorlt=
bL
T m +cm
8 :: it O R

:
(c)85000o (d)95000o 31.

L
1:tu
rat is 23. Consider the profit function, p = 52 _ S + 7, nw
where S=units sold and p
= profit. What
profit the organization will get for 5 units of (a)Profit=50x (b)PrOfit=20
sales? (C)Profit 50-2000x(d)PrOfit=50x_2000
Dn in (a) 10 (b)11 32.
(C) 12 (d)13 111 i : :litl:::ltlill}n31 above,the
24. An Ofrlce machine WOrth Rs. 12000
depreciates in value by Rs. 1500 a year. (c) 50 (d)60
slope Using linear or straight line depreciatiOn,the 33. Consider Revenue, R(x) - -3x2 + 4gx and
Value V ofthe machines as a functiOn f years
C(x) = 6x + l2O, then the profit function will
t can be expressed as______.
be
(a)V(t)=1200-1500t(b)V(t).=12000_150t (a) Profit = -3x? + 42x + I2O
(C)V(t)=1200-150t (d)V(t)=12000_1500t (b) Profit = -3x2 + 54x + l2O
(c) Profit = -3x2 + 4Zx - t}o
(d) Profit = -3x2 + 54x - t2O
 62

34. For the equations in Question 33 above, the (d)Profit= 4x2_56x 180
breakeven level of output is _
44. For the equations in QuestiOn 43 above,the
(a)4o 10 (b)5 or10
breakeven level of output is'
(c)4 or ll (d)5o 11
(a)5,8 (b)5,9
35 Consider the supply function and demand (c) 5,10 (d)5,11
function respectively as follows and answer
accordingly, 45 Consider Revenue, R(x) = -5x2 + 750 and
Supply: P=3Q+10 C(x) - 100x + 20000, then the profit function
Demand:P=-ll2Q+80 will be
What is the equilibrium price?
(a) Profit = -5xr + 650x - 2000
(b) Profit = -5x2 + 650x + 20000
(a)60 (b)70 (c) Profit = -5x2 + 650x - 20000
(c)80 (d)90 (d) Profit = -5x2 + 650x - 2000
36. For Question 35, the equilibrium supply
quantity will be 46. For the equations in Question 33 above, the
breakeven level of output is _

(a) 10 20
(a)50,80

(c)30 40 (b)5 or 10
(c)4 orll (d)5 or ll
37. For Question 35, the equitibrium demand
quantity will be 47. In n hi zation problems, the constraint
equations are preferably written with the

(a) 10
____SIgp.

(c)30
(a) (b)
38: For QueStion 35, the equilibrium quantity
(C) (d)
will be
maxi jzatiOn prOblenls, the constraint

48 I
(a)20

_ (c)40 equations are prefel ably written with th

SIgn
39, Consider the supply function and demand (a) (b)

function respectively as follows and answer (9) (d)
accordingly,
Supply: P=r/aQ+200 49. In hnear prograrllming, the pr lt is

Demand:P=-ll2Q+S00 ma nzed at the intersection of twO
What is the equilibrium price? constralllts,caued the_pOints.
(a)200 (b)400 (a)Extremc Point (b)Lcast Point
(c)600 (d)790 (C)Break Even Point(d)Constraint Point

40 For QueStiOn 39, the equi brium supply 50. In linear programming, Pivoting is the
quantity will be process of solving n equation for

(a)710 variables.
(a) n

(c)830 (b)n+1
(c) n+2 (d)n+3
41. For Question 39, the equilibrium demand
quantity will be 51. Every minimization problem in linear
programming has a corresponding

(a)710
maximization problem and eyery

(c)930
maximization problem has a corresponding
42 For QueStion 39, the equilibrium quantity minimization problem.
will be (a) True (b)False

(a)800
52. In the context of Question 51, the original

(c)400
problem is called
43. For Revenue, R(x) = -4xz + 72, total cost, (a) The Dual (b)ThC PHmal
C(x) = 16x + 180, then the profit equation (c) Marginal Value (d)ShadOw PAcing
will be_
(a) Profit = 50x 53. In the context of Question 51, the
(b) Profit =-4x2 + 56x -180 corresponding problem is called
(c) Profit = -4x2 + 56x +180 (a)The Dual (b)Thc PHmal
(c) Marginal Value (d) Shadow Pricing
54. If lim ,lim24= 61, Relative minimum occurs, if
.r-+5
(a)f''(X)>0 (b)f''(X)<0
(a) 5 (b)6
(c) 23 (d)24 (C)f''(X)=0 (d)Do not Exist

55, If lim lim x2 =

62, Relative maximum occurs, if
,
:-r5
(a)f''(X)>0 (b)f''(X)<0


(a) 2r

(c) 23 (c) ' )=0 (d)Do not Exist

63. Taking the first derivative and setting it

56. If liIII(x2+5x)=
=
5 equal to zero and solving for the critical

(a)40 point(s) is known as

(a) First derivative test

(c)60
(b) Second derivative test
57. If lim,lim (x+2)(x 5)= (c) Inflection point
5
(d) None of the above

(a)0 (b)
64. Taking the second derivative and evaluating
(c)2 1 (d)
it at the critical point(s) and checking the
The derivative of the function signs, this process is known as
f(x)=x2 +2x+Sis- (a) First derivative test
(a)2x+2 (b)2x+24 (b) Second derivative test
(c)2x+5 (d)2x (c) Inflection point
59. The derivative of the function
(d) None of the above
f(x) = v3 + 3x +15 is
(a)3x (b)3x+3
(c)3x+15 (d)None
-
6011 , m -25)/(x 5)=
2

(a)5 10

(c)25 Do not exists

ANSWERS
1 a 2 a 3 a 4 b 5 d 6 7 C

8 9 b 10 b 11 C 12 a 13 b 14
15 a 16 d 17 b 18 19 a 20 21
22 b 23 C 24 d 25 b 26 d 27 b 28 b
29 b 30 a 31 C 32 b 33 34 a 35 b
36 b 37 b 38 39 b 40 b 41 b 42 a

43 b 44 b 45 C 46 a 47 48 b 49 a

50 a 51 a 52 b 53 a 54 d 55 d 56 b
57 58 a 59 b 60 b 61 a 62 b 63 a

64 b
 64

Buslrurss SrATrsncs
The sciences of collecting, describing and 9. A numerical value summarizing the sample
interpreting data is called
(a) Sample
data is called_.
(c) Probability
(b)Statistics (a) Research (b) Result
(d)Rescarch (c) Parameter (d) Statistic
2. A collection or set of individuals or objects or 10. A variable that describes or
everrts whose properties are to be anaiyzed is
categorizes an
called (a) Qualitative variable
(a) Probability (b)Sample (b) Atribute variable
(c) Population (d)Vanable (c) Categorical variable
3. A subset of population is called (d) All of rhe above
(a) Event (b)Sample L1. A variable that quantilies an
(c) Probability element of a
(d)Va able population is called
4. A characteristics of interest about each (a) Quantitative variable
individual element of a population or sample (b) Numerical variable
is called_. (c) All of the above
(a) Data (b) Random variable 12. A qualitative variable that
(c) Variable or response variable categorizes or
(d) Sample
describes, or names an element of a
population is called
5, The value of the variable associated with one (a) Random variable
element of a population or sample. The value (b) Nominal variable
may be a number, a word, or a symbol. Such (c) Numerical variable
value is called.-, (d) Qualitative variable
(a) Data (singular) (b) Variable 13. A qualitative a variable that incorporates an
(c) Sample (d) population ordered position or ranking is called_.
6. The set of values collected for the variable (a) Random variable (b) Ordinal variable
from each of the elements belonging to the (c) Nominal variable
sample is called (d) Qualitative variable
(a) Data (plural) ,, (b) Variable 14. A quantitative variable that can assume
(c) Sample (d) population countable number of values is called
a

7. A planned activity whose results yield a set of (a) Ordinal variable (b) Discrete ,o.irUt"
data is called (c) Random variable (d) Nominal variable
(a) Sample (b) Experiment 15. A quantitative variable that can assume an

t
(c)


Result (d) Research uncountable number of values is called
8.
(a) Continuous variable
(b) Discrete variable
(c) Parameter (d) Research
(c) Nominal vanable
(d) Random variable

16. A sampling method that produces values which 24. A sample obtained by stratifying the
systematically differ from the population being sampling frame and then selecting a number
sampled is called_. of items in proportion to the size of the strata
(a) Sample from each strata by means of a simple
(b) Random sampling method random sampling technique is called_.
(c) Biased sampling method (a) Stratified sample
(d) Un-biased sampling method (b) Ordered sample
(c) Proportional sample
17. A list of the elements belonging to the
(d) Stratified sample
population from which the sample will be
drawn is called_. 25 A sample obtained by sampling some of but
(a) Population (b) Sampling frame not all of, the possible subdivisions within a
(c) Judgment samples (d) Probability samples population is called_.
(a) Random sample (b) Cluster sample
18. Samples that are selected on the basis of (c) Stratified sample (d) Ordered sample
called_.
being typical is
(a) Sampleframes (b) Probability samples 26. A bar graphs with the bars arranged from
(c) Judgment samples (d) Biased sampling ttne most numerous category to the least
numerous category is called_.
19. Samples in which the elements to be selected
(a) Ordered diagram (b) Pareto diagram
are drawn on the basis of probability is
(c)
called_. Random diagram (d) Dotplot diagram
(a) Probability samples 27. The pattern of variability displayed by the
(b) Judgment sampling data of a variable. The distribution displays
(c) Sampling frames the frequency of each value of the variable is
(d) Biased sampling called
20 A sample selected in such a way that very (a) Pareto diagram (b) Distribution
element in the population has an equal
(c) Random diagram (d) Sample diagram
probability of being chosen is called 28 Displays the data of a sample by representing
(a) Judgment sample each piece of date with a dot positioned along
(b) Simple random sample a scale is called__-.
(c) Non random sample (a) Paretc diagram (b) Dotplot display
(d) Sampling frame (c) diagram (d) Clusrer diagram
Sample
21. Simple random samples are obtained either 29. The value of the data that occupies the
by sampling with replacement from a middle position when the data are ranked in
population or by sample without replacemenl order according to size is called_.
from a(n) population. (a) Mean (b) Median
(a) Finite, infinite (b) Infinite, finite (c) Mode (d) Standard deviation
22. A sample in which cvery krh item of the 30 The _ is tl,e value that occurs niost
sampling frame is selected, starting from a frequently in the data.
randomly selected first element is (a) Mean (b) Median
called_. (c) Mode (d) Variance
(a) Judgmental sampling
(b) Systematic sampling
31. The number exactly midway between a
lowest valued data and a highest valued data.
(c) Probabilitysampling The number calculated is called
(d) Random sampling (a) Mean (b) Midrange
23. A sample obtained by stratifying the (c) Variance (d) Mode
sampling frame and then selecting a fixed 32. The difference in value between the highest
number of times from each of the strata by value and the Iowest valued pieces of data is
means of a simple random sampling called_.

techniques is called (a) Mid range (b) Range

(a) Non stratified sample (c) Mean (d) Mode

(b) Random sample (c) Probability sample
(d) Stratified random sample
 33. The mean of the absolute values of the 44.The midrange of the data set 3,3,5,6,8i:
deviations from the mean is called
(a) Mid range
(a) 5 (b)5.5
(b) Mean absolute deviation
(c) Range (c)6 (d)6.5
45 The range ofthe data set 3,3,5,6,8 is
(d) Mode
(a)5 (b)6
34. Values of the variables that divide the (c)7 (d)8
ranked data into quarters is called
(a) Mid range 46.The range of the data set o,1,2,3,4,5,6 is
(b) Mean
(c) Quartiles (d) Percentiles
(a)4 (b)5
35. Values of the variable that divide a set of (c) 6 (d)7
ranked data into 100 equal subsets is called
47.
variables Of
-COnSiSt that
theare Obtained
values fromdifFerent
of twO the sanle
G) Rrrs" (b) Quaniles
(c) Percentiles pOpulation element.
(d) tnter quartile
(a)BivaHate data (b)Random data
36. The numerical value midway between the first (C)Biased data (d)Unbiascd data
quartile and the third quartile is called
(a) Inter quarriles (b) Mid quartile_ 48. p
(c) Percentile (d) Mid range
ttti

37. The difference between the first and third (") P*.;" diagram (b) Scatter diagram
quartiles is called (c) Cluster diagram (d) Random diagram
(a) Inter quartile range
(b) Quaniles 49. In case of linear correlation, if x increases
(c) Percentiles and there is no definite corresponding shift
(d)NIlid quartiles
in the value of y, it is said ihat th"ere is
38. The position a particular value of x has

correlation.

relative to the mean, measured in standard No (b)Positive

deviations is called_-. Negadve
(a) Standard score or z-score
(b) Standard deviarion 50 In case of linear correlation, if x increases
(c) Percentile (d) euartiles and there is a shift in the values of y, it is said
that there is .-.
39. The mean of the data set which consists of (a) Correlation (b) Regression
values 6, 8,3, 6,9 and 4 is--. (c) Pareto diagram (d) Cluster diagram
!tr3 lve
(a)4 (b)6
(c)8 (d) 10
51. The correlation is when y tends to
increase with the increase in the vaiue of x.
40. edat 6,5,4,3,2 (a) Positive
(F:medan of (b) Negative
(c)5 (d)6 (c) Neither positive nor negative
41. The mOde of the data set o,o,0,3,4,2,3,2,5 is (d) 0
52. The correlation is -__ when y tends to

(a)0 decrease with the increase in the vaiue of x.

(c)4 (a) Negative

42. The median of the data set of (b) Positive
61514131210 is (c) Neither positive nor negative
(d) 0
(a) 3.5 (b)3
(c)4 (d)4.5 53. linear correlation occurs when all the
eFer edatattTc l _. fall

43 rygi"tr exactly along a straight line.
(a) Negative
(c) Negative
(b) perfect
(d) Imperfect
(c)2 (d)None
 67

In a scatter diagram, if the data form a 63. Any process that yields a result or an
i straight horizontal or vertical line, it is said observation is called
316 (b)
that there is (a) Experiment Sample
(a) No correlation (b) Positive correlation (c) Population (d) Research
(c) Negative correlation 64. A particular result of an outcome is called
(d) Perfect correlation
r (a) Sample (b) Population
iS. fn" linear correlation coefficient always
(c) Outcome (d)'Regression
has value between and
(a)0 (b)-l and l 65. The set of all possible outcomes of an
(C)O and l (d)l and 2 experiment is called

- (a) Event Sample space
Value'of +1'for linear correlation coeflicient
(c) Population Regression
r sisnifies a

(a) Perfect negative correlation 66. Any subset of the sample space is called

(b) Perfect zero correlation (a) Event (b)POpulation

(c) No correlation (c) Sample (d)Strcngth
(d) Perfect positive correlation
67, Two coins are tossed simultaneously, the
Value of -1. for linear correlation coefficient r probability that at least one head will occur
is-

sisnifies a

(a) Perfect negative correlation (00

(b) No correlation (c)2/4
(c) Perfect zero correlation 68. Two coins are tossed simultaneously, the
(d) Perfect negative correlation probability that at most one head will occur

58. Linear correlation coefticient r measures the ,

is
pf a linear relationship. (a) (b)3/4

(a) Relationship (b) 0 and I (C) (d)1

(c) Probability (d) Strength 69. Two coins are tossed silnultaneously, the
59. does not tell us about the mathematical probability that two tails wi1l occur iS
relationship between the two variables.

-(a) Linear correlation coefficient (a)1/4 (b)0

(b) Linear regression (0 1 (d)3/4

tells us about the mathematical 70 A bucket contain S blue balls and 3 red
relationship between the two variables. baus, A ba is picked fronl the bucket at
(a) Linear correlation coefficient random.The probability that a red ball Will
(b) Linear regression be picked is_____
(a)0 (b)2/8

The relative frequency with which that event

(c) 3/8 (d)1
can be expected to occur is called
(a) Correlation (b)COefficicnt 71. A bucket contains 5 blue balls and 3 red
(c) Probability (d)Strength balts. A ball is picked from the bucket at
random. The probabitity that a blue ball will
62. If the number of times an experiment is
be picked is
repeated is increased, the ratio of the
number of successful occurrences to the
(a) 5/8 G) 6/8
number of trials will tend to approach the
(c) 7/8 (d) I

-"

theoretical'probability of the outcome of an 72. A bucket contains 5 blue balls and 3 red
individual trial. This law is known as balls. Red ball is picked from the bucket at

random without replacement. Then the

(a) Probability
(b) Law of large numbers second ball was picked. The probability
(c) Strength -. that red ball wilt be picked second time as
(d) Regression well is____.

(a)0 (b)

(c)2/7 (d)
 68

73. A bucket contains S blue balls and 3 red

balls. Red ball is picked from the bucket at
random without replacement. Then the
second ball was picked. The probability that
black ball will be picked second time as well
is _.
81. A single number designed to estimate a
quantitative parameter of a population'
usually the value of the corresponding
sample statistic is called
(a) Standard error of mean
(b) Point estimate for a parameter

(c) Unbiased sample

(d) kvel of confidence
74. Probability of an event a is has the range
82. A sample statistic whose sampling distribution
and --- has a rhean value equal to thc value of the
(a)O and l (b)O and l
(C) l and 2 population parameter being estimated. Such
(d)-l and o
as statistic is known as
75. The set of all sample points in the sample (a) Point estimate
place that do not belong to event a. Such an (b) L^evel of confidence
event is known as --. (c) Unbiased statistic
(a) Complement of an event (d) Standard error of mean
(b) Union of event
(c) Intersection of event 83. The proportion of all interval estimates that
(d) Subset of evenr include the parameter being estimated is
called
76. Sum of a[ the probabilities of each event in a (a) l-cr
sample space equais (b) Irvel of confidence
(a)-1 (b)0 (c) Both a and b
(c)2 (d)1 84. An interval estimate with a specified level of
77. Events defined in such a way the occurrence confidence is called
of one event excludes the occurrence of any (a) Irvel of confidence
of the other events are called (b) Point estimate
(a) Union evenrs (c) Confidence interval
(b) Intersection events (d) Standard error of mean
(c) Mutually exclusive events
(d) Superset events 85 The conditions that need to exist in order to
correctly apply a statistical procedure is
78: Two events x and y are _ events if and called
only if the occurrence or non occurrences of (a) Population (b) Sample
one does not affect the probability assigned (c) Events (d) Assumptions
to the occurrences of the other
(a) Dependent events 86. A statement that something is true is called
(b) Independenr events
(c) Both a and b (a) Assumptions (b) Hypothesis
(c) Null hypothesis (d) Confidence
79 A sample obtained in such a way that each
possible sample of fixed size n has an equal 87. A process by which a decision is made
probability of being selected is between two opposing hypothesis is
called--. called
(a) Random sample (b) Ordered sample (a) Null process
(c) Bivariate sample (d) Union sampli (b) Standard error of mean
(c) Statistical hypothesis test
80 The standard deviation of the sampling (d) kvel of confidence
(a) Point estimate fbr a parameter 88. The hypothesis that is to test is known as _.
(b) Unbiased statistic (a) Positive hypothesis
(c) Standard error of mean (b) Negative hypothesis (

(d) Bivariable sample (c) Null hypothesis

(d) Altemative hypothesis
 69

,statement about the same population 98. A parameter that identifies each different
r that is used in the null hypothesis distribution of the student,s t-distribution is
is known as_. called
(a) Nullhypothesis (a) Irvel of confidence
(b) Altemative hypothesis (b) Standard deviarion
(c) Negative hypothesis (c) Variance
Positrve hypothesis (d) Degree of freedom (df)
:The,probability of committing the Type I 99. Mrs. Smith is writing her daily observations
iS called . of a student and writes, without

Assumptions interpretation, that the student is not

Irvel of significance (o) completing the class work and is constantly
Events speaking out of turn. Which of the following
Distribution objectives does she appear to be using?
random variable whose value is calculated (a) Prediction (b) Description
the sample data and is used in making
(c) Explanation (d) Exploration
decision of'fail to reject,' or reject the 100. Which of the following is a form of research
'a)
is known as _. typically conducted by teachers, counselors,
im11. Parameter and other professionals to answer questions
Test statistic they have and to specifically help them solve
kvel of confidence local problems?
d) Assumptions (a) Action research
The probability that the test statistic could be (b) Basic research
'd level of value it is or a more extreme value (in the
(c) Predictive research
of the alternative hypothesis) when
(d) Orientational research,
'nirll hypothesis is true is called_. 101. How much confidence should you place in a
) Statistic value single research study?
(b) Probability-,value or p-val ue (a) You should completely trust a single
(C) Assumptions research study.
(d) Hypothesis (b) You should trust research findings after
edu, : If the p-valueis less than or equal to the level different researchers have found the same
findings
of significance, the decision must be ho _ (c) Neither a nor b
(a)Re cct (b) Accept (d)Both a and b

(O Rectify (d) Fail to reject 102. The development of a solid foundation of

'If

the p-value is greater than the level of reliable knowledge typically is built from
significance, the decision must be which type of research?
h0
Fail to reject (b) Accept (a) Basic research (b) Action research
(c) Rectify (d) tmprove (c) Evaluation research
(d) Orientational research

The set of values for the test statistic that will

Which form of reasoning is the process of

103.
iCauS,ustO r ect the nu hypothesis is called
drawing a specific conclusion from a set of
K ILV 1 0f cOnidence

10). Ceptance reg10n
premises?
(a) Rationalism
)91tiCalregi9n (d)RttectiOn region
(b) Deductive reasoning
lf the test statistic faus within the critical (c) Inductive reasoning
then the decision must
region, be h" (d) Probabilistic
(a) Accept tb) to.".i".t
n'ail
(c) Reject f&,gssume 104. The idea that when selecting between two
different theories with equal explanatory
97. If the test statistic is not in the critical region, value, one should select the theory that is the
then the decision must be _ lrn most simple, concise, and succinct is known
(a) Fail to accept (b) Accept
(c) Fail to reject (d) Assume
as _.
(a) Criterion of falsifiability
(b) Critical theory
 70

(c) Guide of simplicity (b) It is possible to distinguish between

(d) Rule of parsimony more
and less plausible claims
105. Research that is done to examine the findings (c) Researchers should follow certain agreed
of someone else using the "sarne variables upon norns and practices
but different people" is which of (d) Science is best at solving value conflicts,
the
following? such as whether abortion is immoral
(a) Exploration (b) Hypothesis 112. What general type
(c) of research is focused on
Replication (d) Empiricism collecting information to help a researcher
106. _ is the idea that knowledge comes from advance an ideological or political position?
experience. (a) Evaluation research
(a) Rationalism (b) Basic research
(b) Deductive reasoning (c) Action research
(c) Logic (d) Orientational research
(d) Empiricism
113. Which "scientific method,' follows these
107. A-ccording to your text, what are the five
key
steps: (1) observation/data, (2) patterns,
objectives of science? (3) theory?
(a) Prediption, sumnury, conclusion, (a) Inductive (b) Deductive
explanation, description (c) Inductive (d) Top down
(b) Influence, prediction, questions, 114. Rene Descartes is associated with which of
exploration, answers
(c) the following approached to knowledge
Exploration, descnption, explanation, generation?
prediction, influence (a) Empiricism (b) Rarionalism
(d) Questions, answers, prediction, (c) Expert opinion (d) None of the abovb
explanation, summary
115. Which scientific method is a top-down or
108. A researcher designs an experiment to test
confirmatory approach?
how variables interact to influence how well (a) Deductive method
children learn spelling words. In this case, (b) Inductive method
the main purpose of the study was: (c) Hypothesis merhod
(a) Explanation (b) Description (d) Pattem method
(c) Influence (d) Prediction 116. Which scientific method is a bottom-up or
109. There is a set of churches in the U.S. where generative approach to research?
part of the service involves snake handling. (a) Deductive method
The researcher wants to find out why the (b) Inductive method
people attending these churches do this and (c) Hyporhesis method
how they feel and think about it. In this case, (d) Pattern merhod
the primary purpose of the study is:
(a) Exploration (b) Description 117. Which scientific method focuses on testing
(c) Influence hypotheses developed from theories?
(d) prediciion (a) Deductive merhod
110. Which of the following is not a characteristic (b) Inductive method
of a good theory or explanation? (c) Hypothesis method
(a) It is parsimonious (d) Partern merhod
(b) It is tesrable
(c) It is general enough to apply to more than 118. Which scientffic method often focuses on
generating new hypotheses and theories?
one place, situation, or person
(a) Deductive merhod
(d) All of the above are characteristics of good
(b) Inductive method
theories
(c) Hypothesis method
111. Which of the following is not a basic (d) Pattern merhod
assumption of science?
119. Which of the following statements is true of a
(a) Science cannot provide answers to all theory?
questions
(a) It most simply means "explanation"
(b) It answers the "how" and "why" questions
 71

. (c) It can be a well developed explanatory
(d) All of the above are correct
l 120. Which research paradigm is based on the
- pragmatic view of reality?
. (a) Quantitative research
(b) Qualitative research
(c) Mixed research (d) None of the above
l
system 127. Which type of research provides the
strongest evidence about the existence of
cause
(a) And-effecr relationships?
(b) Nonexperimental Research
(c) Experimental Research
128. What is the key defining characteristic o[

121. Which research paradigm is lcast concerned experimental research?

(a) Extraneous variables are never present
about generalizing its findings?
(a) Quantitative research (b) A positive correlation usually exists
(b) Qualitative research (c) A negative correlation usually exists
(c) Mixed research (d) (d) Manipulation of the independent variable
None of the above
122. Which of the following best describes
l29.ln _, random assignment to groups is
quantitative research? never possible and the researcher
(a) The collection of nonnumerical (a) Manipulate the independent variable
data
(b) An attempt to confirm the (b) Basic research
researcher's
hypotheses
(c) Quantitative research
(c) Research that is exploratory
(d) Causal-comparative and correlational
(d) research
Research that attempts to generate a new
theory 130. What is the defining characteristic of
123. A condition or characteristic that can take on experimental research?
different values or categories is called (a) Resistance to manipulation
' (a) A constant (b) A variabte (b) Manipulation of the independenr variable
(c) A cause-and-effect relationship (c) The use ofopen-ended questions
(d) A descriptive relationship (d) Focuses only on local problems
lU. A variable that is presumed to cause a 131. A positive correlation is present when
change in another variable is called a(n): (a) Two variables move in opposite directions
(a) Categorical variable (b) Two variables move in the same direction
' (b) Dependent variable (c) One variable goes up and one goes down
(c) IndependentVariable (d) Several variables never change
(d) Intervening variable
132. Research in which the researcher uses the
125. AU of the following are common characteristics qualitative paradigm for one phase and the
of experimental research except: quantitative paradigm for another phase is
(a) It relies primarily on the collection of known as _.
numerical data (a) Action research (b) Basic research
(b) It can produce important knowledge about (c) Quantitative research
cause and effect
(d) Mixed merhod research
(c) It uses the deductive scientific method
(d) (e) Mixed model research
It rarely is conducted in a controlled setting
or environment 133. Research in which the researcher uses both
qualitative and quantitative research within
126. Qualitative research is often exploratory and
has all of the following characteristics a stage or across two of the stages in the
research process is known as _.
. except:
(a) Basic research
(a) It is typically used when a grear deal is (b) Quantitative research
already known about the topic of interest
(b) It relies on the collection of nonnumerical (c) Mixed method research
(d) Mixed model research
data such as words and pictures
(c) It is used to generaie hypotheses and 134. Research that is done to understand an ev6nt
a develop theory about phenomena in the from the past is known as _?
world (a) Experimental research
(d) It uses the inductive scientific method (b) Historical research
 (c) Replication impact on children by increasing their
(d) Archival research
motivation to do school work. Thus, in her
135. research occurs when the researcher model, greater parent involvernent leads to
manipulates the independent variable. higher student motivation, which in turn
(a)
- Causal-comparative research creates higher student achievement. Student
(b) Experimental research motivation is what kind of variable in this
(c) Ethnography study?
(d) Correlational research (a) Manipulated variable
(b) Extraneous variable
136. Which of the following includes examples of (c) Confounding variable
quantitative variables? (d) Mediating or intervening
(a) Age, temperature, income, height variable
(b) Grade point average, anxiety level, reading 143. The strongest evidence.for causality comes
performance from which of the following iesearch
(c) Gender, religion, ethnic group methods?
. (d) Both a and b (a) Experimental (b) Causal-comparative
(c) Conelational (d) Ethnography
137. What is the opposite of a variable?
(a) A constant 144. Which correlation is the strongest?
(b) An extraneous variable (a) +.10 (b) -.et
(c) A dependent variable (C)+.90 (d)-1.00
(d) A data set 145. The correlation between intelligence test
138. Which of the following is the type of scores and grades is:
nonexperimental research in which the (a) Positive (b) Negative
primary independent variable of interest (c) Perfect
is
categorical? (d) They are not correlated
(a) Causal-comparative research 146. A good qualitative problem statement:

(b) Experimental research (a) Defines the independent and dependent

(c) Qualitative research variables

(d) Mixed research (b) Conveys a sense of emerging design

139. Which of the following can best be described (c) Specifies a research hypotheiis to-be resred
as a categorical variable?
(d) Specifies the relationship between variables
(a) Age (b) Annual income
that the researcher expects to find
(c) Grade point average 147 . The'tool,, function pf theory is to:
(d) Religion (a) Summarize existirig knowledge
(b) Summarize existing hypotheses
In research, something that does not "yary"

140.
(c) Suggest new relationships and make new
is called a

predictions
(a) Variable (b) Method
(c) Constant (d) Suggest new theories

(d) Control group
148. The statement of purpose in a research study

141. When interpreting a correlation coeflicient
expressing the relationship between two
variables, it is very important to avoid
(a) Checking rhe strengrh of relationship
(b) Jumping to the conclusion of causality
should:
(a) Identify the design of the study
(b) Identify rhe inrent or objective of the study
(c) Specify the type of peopte to be used in the
study

(c) Checking the direction of the relationship (d) Describe the study

(d) Expressing a relationship with a correlation

149. Why is the statement ..What are the effects
coefficient
of extracurricular activities on cognitive
142. A researcher studies achieyement by development of school age children', not a
children in poorly funded elementary good statement of a quantitative research
schools. She develops a model that posits question?
parent involvement as an important variabte. (a) Because there is no connection berween
She believes that parent involvement has an extracurricular activities and cognitive
development
 73

r (b) Because there are not enough school age
r children engaged in extracurricular
) activities to conduct the study
1 (c) Because the study would be too difficult to
t do given all the different extracurricular
S activities
(d) Because the statement was not specific
enough to provide an understanding of the
variables being investigated
150. A qualitative research question:
. (a) Asks a question about some process, or
phenomenon to be explored
(b) Is generally an open-ended question
(c) both a andb are correct
(d) None of the above
151. According to the text, which of the following
orders is the recommended in the flowchart
of the development of a research idea?
(a) Research topic, research problem, research
purpose, research question, hypothesis
(b) Research topic, research purpose, research
problem, research question, hypothesis
(c) Research topic, researph problem, research
purpose, research question, hypothesis
(d) Research topic, hypothesis, research
problem, research question, research purpose
l,52.lt is essential that you evaluate the quality of
internet resources because information
obtained via the internet ranges from very
poOr tO very g00d.
(a)Truc (b)Falsc
153. One step that is not included in planning a
research study is:
(a) Identifying a researchable problem
(b) A review ofcurrent research
(c) Statement of the research question
(d) Conducting a meta-analysis of the research

ANSWttRS
b 2. C 3. b 4. C a
5 6 7. b
8. C 9. d 10 d C 12. b 13. b 14. b
15 a 16. C 17. b 18. C 19. a 20 b 21.
22. b 23. d 24 C b 26. b
25 27. b 28 b
29 b 30 C 31. b 32. b 33. b 34. C 35 C
36. b 37. a 38. a 39 b 40. b 41. a 42. a
43. d 44. b 45 a 46. 47.
C a 48. b 49 a
50 a 51. 52. 53. b 54. a 55. b 5`. d
57. d 58. d 59. a b 61.
60 C 62. b 63.
64. 65 b 66. a 67. b 68 b 69 70 C
71. 72. C 73. b 74. 75.
a a 76 d 77.
78 b 79. a 80. C 81. b 82. C 83 C 84
d 86. b

85 87. C 88 C 89. b 90 b b
92. b 93. a 94. 95 C 96. C 97. 98 d
99. b 100. a 101. b 102. a 103. b 104. d 105 C
106. d 107. 108. 109.
C a a 110. d 111. d 112. d
113. 114 b 115 a 116 b 117. a 118. b 119. d
120. C 121. b 122. b 123. d 124. C 125. d 126 a
127. C 128. d 129 d 130. b 131. b 132. d 133. d
134. d 135 b 136. d 137. 138.
a a 139 d 140 C
141. b 142. d 143. a 144. d 145 a 146 b 147. C
148. b 149 d 150. C 151. 152.
a a 153. d
 74

HRM
The design of formal sys{ems in an 7. Compensation package that equalizes cost
organization to ensure effective and efficient differences between international
use of human talent to accomplish assignments and those in the home country is
organizational goals is called called
(a) Formal System (b) Talent Hunt (a) Balance Approach
(c) HRD (d) HRM (b) Balance Assignment
(c) Balance sheet approach
An employee, working in an operation who is
not a citizen of the country is which the (d) Compensation Approach
operation is located but is a citizen of the A practice whereby union or worker
country of the headquarters organization is representatives are given positions on a
called_. company's board of directors is called
(a) Emigrant (b) Deportee
(c) Expatriate (d) Refugee (a) Determination (b) Co-determination
An employee working for a firm in an (c) Performance (d) None of the above
operation who is a citizen of the country 9. A person with responsibility for performing
where the operation is located, but where the a verity of HR activities is called
headquarters of the firm are in another (a) HR Manager (b) HR Director
country is called_. (c) HR In charge (d) HR generalist
(a) Host Country National
(b) Resident (c) Citizen - 10. A person with indepth knowledge and
(d) Temporary Employee expertise in a limited area of HR is called
(a) HR specialist (b) Recruiter

A citizen of a country working in a second (c) Manager (d) Proprietor

country, and employed by an organization

headquartered in a third country is 11. Organizational use of employees to gain or
caIIed_. keep a competitive advantage against
(a) Host Country Resident competitors is called
(b) Citizen (a) Organizational HRM
(c) Third country national (b) Strategic HRM
(d) Resident (c) Competition Gain Strategy
(d) Strategic Organization
Preparing and sending global employees to
their foreign assignments is called
12. A unique capability that creates high value
(a) HR Export (b) Expatriation and that differentiates the organizations
(c) Repatriation (d) Gkrbal sending
from its competition is called_.
(a) Major Competency
Planning, training, and reassignment of (b) Unique Competency
global employees to their home countries is (c) Required Competency
called (d) Core Competency
(a) Repartriation (b) Expatriation
(c) Global Training (d) Global Assignment
 75

13. The shared values and beliefs of a workforce

21. The ratios which can be used to estimate
indirect labor is called
is called
(a) (a) I-abor Ratio (b) Staffing ratios
Organizational Beliefs
(b) Organizational Culture
(c) Estimate Ratio (d) Employee Ratio
(c) Workplace Culture 22. Extra payment for employees whose jobs are
(d) None of the above being eliminated, thereby motivating them to
14. A measure of the quantity and quality of remain with the organization for a period of
work done, consiricring the cost of the time is called
resources used is called (a) Extra Payment
(a) Productivity (b) Transition stay bonus
(b) Quantity and Quality Survey (c) Motivating Bonus
(c) Cost benefit analysis (d) Transactional Bonus
(d) Resource Analysis 23. A formal research effort that evaluates the
cost 15. is computed by dividing the average current state of HR management in an
.ional cost of workers by their average levels of organization is called
try is output. (a) HR audit (b) FormalAudit
(a) Wages (b) Salary
(c) Research Audit (d) Evaluative Audit
(c) Unit Labor Cost (d) Average Unit Cost 24. The analysis of data from HR records-to
16 Process of analyzing and identifying the need determine the effectiveness of past and
for and availability of human resources so present HR practices is called
that the organization can meet its objectives (a) Research methodology
rrker is called
(b) HR audit (c) Transactional audit
)na (a) Human Resource Planni.ng (d) HR research
:alled (b) Need Based Planning 25 Comparing specific measures of performance
(c) Need Based Analysis against data on those measures in other "best
ion (d) Human Resource Analysis practice" organizations is called
ove
17. Means .used to anticipate and manage the
(a) Auditing
ming supply of and demand for human resources (b) Gap Analysis
is called
(c) Benchmarking
(a) HR Planning (b) HR Resources (d) Return on Investment
(c) Resource Planning (d) HR Strategies. 26. Calculatiqn showing the value of expenditures
and 18. Process of studying the environment of the for HR activities is called
organization to pinpoint opportunities and (a) HR audit
threats is called (b) Return on Investment
(a) Environmental Studies (c) Capital Investment
(b) SWOT Studies (d) Profit or Loss
in or (c) Environmental Scanning
ainst 27. A firm's net operating profit after the cost of
(d) Pinpoint Opportunities capital is deducted is called
19. Use of information from the past and present
(a) Economic value added
of identity expected future conditions is (b) Utility Analysis
called_. (c) Profit
(a) Futuristic (b) (d) Return
Forecasting
value
(c) Predicting (d) Fore sensing 28. Analysis in which economic or other
statistical models are built to identify the
tions 20. The Ratios that calculate the average
costs and benefits associated with specific
number of units production per employee is
HR activities is called_.
called_. (a) Utility analysis
(a) Productivity ratios (b) Economic Analysis
(b) Employee Unit Ratio (c) Statistical Analysis
(c) Average Ratio (d) Cost and Benefit Analysis
(d) None of the above
 76

29. An integrated system designed for- providing 36. In the context of Herzberg,s Motivation/
information used in HR decision making is Hygiene Theory, motivators
called
(a) Integrated HR System
A. Accounts for high levels of job
satisfaction and motivation
(b) Human Resource Information System
(c) Mrs B. Conducive Working Environment
(d) HR Decision Making System
C. Can cause dissatisfaction with work
D. Motivators and Hygiene factors
30. An organizational network that operates (a)A and B (b) B and C
over the internet is called_. (c)A and C (d) All of rhe above
(a) Organizational Web (e) None of the above
(b) Custom Made Web
(c) Web Network Connecrion 37. In the context of Herzberg,s Motivation/
Hygiene Theory, hygiene factors
(d) Intranet
A.Accounts for high levels of job
31. An internet-linked network that allows satisfaction and motivation
employees access to information provided by B. Can cause dissatisfaction with work
external entities is called_. C. Motivators and Hygiene factors
' (a) Intranet D. Can cause dissatisfaction with work
(b) Extemal Linked Internet (a) A and B (b) B and C
(c) Extranet (c) CandO (d) AandD
(d) Employees Access System (e) None of the above
32. Individual performance factors are 38. The perceived fairness of what the person
(a) Ability, efTort, Supporr does compared with what the person receives
(b) Effort, Support, Ability iscalled_.
(c) Support, Ability, Effort (a) Equity (b) Equality
(d) None of rhe above (c) Justice '(d) Fairness
33. The desire within a person causing that
39. Following theory that states that individuals
person to act is called_. base decisions about their behaviors on their
A. Internal Motivation expectations that one or another alternate
B. Motivation behavior is more tikely to lead to needed or
C. SelfMotivation desired outcomes is called
D. IntrinsicMotivation (a) Expectancy theory
41
E. All of the Above (b) Maslow Theory of Hierarchy of Needs
(c) Herzberg Theory (d) Equity Theory
(a)A and B (b)B and c
(C)C and D (d)Only E 40. Expectations which refer to employees,
34. beliefs that working harder will lead to
Maslow's Hierarchy of needs are_. performance are
A. Physiological needs (a) Effort-performance expectations
B. Safety and security needs (b) Expectancy linkage
. C. Belonging and love needs (c) Performance-Reward linkage
D. Esteem needs
(d) None of the above
E. Self-actualization needs
4

F. All of the above 41. _considers individuals, expectations that

(a)A and B
high performance actually will lead to
(b)C and D rewards
(c)D and E (d)only F (a) Performance-Reward linkage
35 Herzberg_'s Motivation / Hygiene Theory (b) Effort-perfbrmance expectarions
assumes following group of factors (c) Expectancy linkage
(a) Motivators and Hygiene factors (d) Psychological Contract
(b) Motivator and High Salary
(c) High Salary and Conducive Working
42. _refers to how valuable the rewards are
4S
to the employee
Environment (a) Output of the organization
(d) AII of rhe above
(b) Psychological Satisfaction
(c) Value of Rewards


 77

(d) (c) "No fault" &

Performance of the Employee absenteeism Paid Time-off

programs
The unwritten expectations employees and (d) All of the above
employers have about the nature of their
work relationships is called_. 50. Process in which employees leave the
(a) Psychological contract organization and have to be replaced is
(b) Prof'essional Relation called
(c) Expected Relation (a) Firing (b) Turrrover
(d) Workplace Relation (c) Absenteeism (d) Franchise

44. A positive emotional state resulting from 51. Following are type of turnover
evaluating one's job experience is called
(a) Involuntary tumover
(a) Psychological Contract (b) Voluntary tumover
(b) Professional Relation (c) All of the above
(c) Job Satisfaction 52. Terminations for poor performance or work
(d) Workplace Relation rule violations are called
(a) Voluntary turnover (b) Absenteeism
45. The degree to which employees believe in (c) InvoluntaryTurnover
and accept organizational goals and desire to (d) Uncontrollable turnover
remain with the organization is called-.
(a) Organizational loyalty 53. If Employee leaves by choice is called
(b) Organizational Commitment (a) Voluntary turnover
(c) Organizational behaviour (b) Involuntary turnover
(d) Organizational work ethics (c) Uncontrollable turnover
(d) Absenteeism
46. Following are different types of absenteeism.
A. Voluntary Absenteeism 54. If lower performing or disruptive employees
B. Unexpected Absenteeism Ieave, it is best described by _.
C. Involuntary Absenteeism (a) Dysfunctional turnover
D. Expected Absenteeism (b) Voluntary tumover
(a) A and B (b) B andC (c) Functionaltumover
(c) C andD (d) A and C (d) Involuntary tumover
(e) B andD 55 If key individuals and high performers leave
47. called_.
Avoidable absenteeism is at critical times, it is best described by _.
A. Voluntary Absenteeism (a) Functional turnover
B. UnexpectedAbsenteeism (b) Voluntary turnover
C. Involuntary Absenteeism (c) Involuntary turnover
D. Expected Absenteeism (d) Dysfunctional tumover
(a) AandB (b) BandC 56. Turnover which occurs for reasons outside
(c) C and D (d) A and C the impact of the employer is best described
(e) B andD by
(a) Uncontrollable turnover
48. Unavoidable absenteeism is called (b)-.Controllable tumover
A. Voluntary Absenteeism (c) Functional turnover
B. Unexpected Absenteeism (d) Dysfunctional turnover
C. Involuntary Absenteeism
D. Expected Absenteeism 57. Turnover which occurs due to factors that
(a) A and B (b) B and C could be influenced by the employer is
(c) CandD (d) A andC
called_.
(a) Controllable turnover
(e) B andD (b) Uncontrollable tumover
49. Which of the following approaches are used (c) Functional tumover
as controlling absenteeism approaches (d) Voluntary tumover
(a) Disciplinary approach
(b) Pgsitive reinforcement & Combination
approach
 78

58. A survey that focuses on employees, feelings 66. An analysis that identified the number of 75.
and beliefs about their jobs and the protected-class members available to work in
organization is called_. the appropriate labor markets in given jobs
(a) Exit interview (b) Research is best described by_.
(c) Attitude survey (d) Feedback (a) Availability analysis
59. An interview in which individuals are asked (b) Recruitment
(c) Hiring 76.
to identify reasons for leaving the (d) Utilization analysis
organization is best described by _.
(a) Exit interview (b) Interview 67. An analysis that identifies the number of
(c) Research (d)Fecdback protected-class members employed and the
types of jobs they hold in an organization is
60. An interview in which the interviewer has
called
certain views about particular demographics
(a) Availability analyses 77.
of people is called
(b) Utilization analysis
(a) Feedback (b) Stereotyping (c) Employment test (d) Employee validity
(c) Hallo Effect (d) Attitude Problem
68. An employment procedure used as the basis
61. The differences among people is called_ for making an employment-related decision
(a)Similanty (b) Humane is called
78.
(C) Indifference (d) Diversity (a) Utilization analysis (b) Candidare analysis
(c) Employment "tesr"
62. The phenomena that individuals should have (d) Employment validity
equal treatment in all employment-related
actions is best described by_. 69 is measured when an employer tests
79.
(a) Work force diversity current employees and correlated the scores
(b) Employer erhics with their performance ratings is called . .
(c) Indifference employer (a) Equity (b) Concurrent validity
(d) Equal employmenr opportunities (c) Justice (d) Employee test
63, Individuals within a group identified for
70. is measured when test results of
applicants are compared with subsequent job 80.
protection under equal employment laws and
performance
regulations are included in class, best
(a) Concurrent validity(b) Predictive validity
described by_. (c) Construct validity (d) Employee validity
(a) Glass ceiling

(b) Ethics Validity showing a relationship between an

(c) Work force diversity abstract characteristics and job performance
(d) Protected class is called 81.

(a) Construct validity Concurrent validity

64. Process in which employers identify problem

(c) Predictivevalidity Employee validity

areas, set goals, and take positive actions to
enhance opportunities for protected-class 72. Which among the following are dimensions
members is called of diversity 82.
(a) Glass ceiling (a) Age & Race/ethnicity
(b) Ethics (b) Gender & Sexual orientation
(c) Work force diversity (c) Disabilities & Marital and family srarus
(d) Affirmarive actions (d) All of the above
73. Practice of allowing relatives to work for the
65. When a person is denied an opportunity 83.
- because of preferences given to protected- same employer is called
(a) Nepotism (b) Quid pro quo
. class individuals who may be less qualified is
(c) Glass ceiling (d) Ethnicity
best described by--.
(a) Discrimination 74. Discriminatory practices that have prevented
. (b) Reverse discrimination women and other protected-class members
(c) Forward discrimination from advancing to executive-level jobs is
84.
(d) Unethical called
(a)Ncpotism (b) Quid pro quo
(c)Ethnicity (d) Glass ceiling
 79

number o75. Sexual harassment in which employment 85 The extent of individual freedom and
e to work ii outcomes are linked to the individual discretions the work and its scheduling is
t given jobJ granting sexual favors is called called_.
(a) Autonomy (b) Management
18
(b)Glass celling
(d)HOStile (c) Iradership (d) Task variety
I__ _ _ _

86. The amount of information received about

how well or how poorly one has performed is
called
number (a) Feedback (b) Job analysis
:d and (c) Qualityimprovement
nization (d) Task signrticance
(c) Glass ceiling (d) Nepotism
87. Organizational team formed to address
77. Approach in which employees reduce their
specific problems, improve work processes,
workloads and pay is called
Validity (a) and enhance product and service is best
Phased retirement
the (b) Succession planning
described by_.
(a) Special-purpose team
I decision (c) Glass ceiling (d) Job design (b) Focus group
78. Organizing tasks, duties, and responsibilities (c) Quality circle (d) Shamrock team
analysis
into a productive unit of work is called
88. Small group of employees who monitor
(a) (b) Job design
Job design productivity and quality and suggest
(c) -.
(d) Job enrichment
Job enlargement
ryer tests solutions problems is called_.
le scores 79. Broadening the scope of a job by expanding (a) Quality circle (b) Focus group
led
the number .of different tasks to be (c) Special purpose team
-----. performed is called (d) Shamrock team
validity
(a) Job enlargement (b) Job rotation
esI 89. Groupings of workers who produce entire
(c) Job description (d) Job enrichment
products or components is best described by
5ults Of
entjOb 80. Increasing the depth of a job by adding the (a) Circle (b) Production cells
responsibility for planning, organizing, (c) Focus group
alidity ' controlling, and evaluating the job is called (d) Special purpose team
alidity
(a) (b) Job rotation 90. One composed of individuals assigned a
'een an Job enrichment
cluster of tasks, duties, and responsibilities to
,Inance
(c) Job description (d) Job enlargement
be accomplished is called_.
81. The process of shifting a person from job to (a) Focus group (b) Matrix team
alidity job is called (c) Self-directed work team
lidity (a) Job rotation (b) Job variety (d) Shamrock team
Jons l (c)
description (d) Job enlargement
Job
of a core of
91. One composed members,
82. The extent to which the work tequires resource experts who join the team as
several different activities for successful appropriate, and part-time / temporary
completion is called members as needed are is called
us (a) Skill variety (b) Job diversity (a) Focus group (b) Shamrock team
(c) Task variety (d) Job significance (c) Matrix team (d) Self directed team
)r the
83. The extent to which the job includes d 92. Scheduling arrangement in which employees
'tvhole" identifiable unit of work that is work a set number of hours per day but vary
carried out form start to finish and that starting and ending times is called-.
results in a visible outcome is called (a) Telecommuting (b) Flextime
(a) Task identity (b) Job description (c) Compressedtime (d) Off time
(c) Job variety (d) Task significance 93. One is which a frrll week's work is accomplished
84. The impact the job has on other people is in fewer than flrve days is called
called_. (a) Flextime (tr) Telecommuting
(a) Task significance (b) Job importance (c) Compressedworkweek
(c) Task variety (d) Job significance (d) Shamrock
 80

94. Process of going to worr via electronic 98. Obligations to perform certain tasks and
computing and telecommunications equipment
is called
duties is best described by_.
(a) Responsibilities
(a) Virtualcommuting (b) Job srandard
(b) Fluid commuting (c) Performance standards
(c) Telephone conunuting (d) Job description
(d) Telecommuting
99. Raising the importance and significance of
95 Systematic way to gather and analyze jobs is called
information about the content, context, and (a) Job standard
the human requirements of job is called (b) Performance standards
(c) Responsibilities
(a) Job analysis (b) Job description (d) Job inflation
(c) Process analysis (d) Process description
96. A distinct, identifiable work
100. Identification of the tasks, duties, and
activity responsibilities of a job is called
composed of motions is best described by (a) Job description
(b) Performance standards
(a) Tasks (b)Sub tasks (c) Job inflation
(c) Responsibility (d)Duty (d) Job standard
97. A larger work scgment conrposed of several
tasks that are performed by an individual is
called
(a) Tasks (b)Job
(c) I{osponsibility (d)Duty

ANSWERS
d 2. C 3. a 4. C b
5 6. a 7.
8. b 9. d 10 a b 12. d
11. 13. b 14.
15 C 16. a 17. d 18. C 19. b 20 a 21. b
22. b 23. a 24 d 25. C 26. b 27. a 28
29. b 30. d 31. C 32. 33 d
a 34. d 35. a
36. C 37. d 38. 39. a 40. a 41. a 42 C
43. a 44. C b 46. d
45 47. d 48 d 49. d
50. b 51. C 52. C 53. a 54. C 55 d 56. a
57 a 58. C 59. b d
60 61. 62. d 63. d
64. d 65 b 66 67. b 69
68. C b 70. b
71. a 72. d 73 a 74. d 75 C 76. a 77. a
78. a 79. a
80. a 81. 82. 83 a 84. a
85 a 86. 87. a 88. a 89. b 90: 91. b
92. b 93. 94. d 96.
95 a a 97. d 98.
99. d 100.
 81

and

0 0f

Busr N ESs Cowr M uN rcATroN

and
Awo Rrponr WnrnNG
Organizations cannot function without open 9. Feedback can be an oral or a written
and effective _ message, an action or simply
(a) Communication (b) Time (a) Message (b)Silcncc
(c) Office (d) Fumiture (c) Email (d)SMS
2. Communication to the people outside the 10. Miscommunication occurs when the sender
organization is known as _. and receiver have meanings for the
(a) Intemal communication symbols used.
(b) External communication (a) Different (b) Same
(c) Gender difference
3. Communication to the people inside the
organization is known as _. are signs for things that exist.
(a) External communication (a) Synonyms (b) Antonyms
(b) Internal communication (c) Abbreviations (d) Symbols

4. is a major factor in overall 12. A _ is usually the dictionary definition
communication costs. of a word
(a) Receiver (b) Sender (a) Quotation (b) Anonyms
(c) Time (d) Space (c) Denotation (d) Connotation
5. Poor communication can cost an 13. A _ is an implication of a word or a
suggestion separate from the usual
(a) Money (b) Time definition.
(c) Botha&b (a) Denotation (b) Connotation
6. Following are the components of (c) Definition (d) Quotarion
communication along with context, sender- 14. When one selects some facts and omit others,
encoder, message. one ls .
(a)Medium (b) Receiver-decoder (a)Hiding facts (tr) Abstracting
(c)Feedback (d) All of above (C)BHeflng
(d) Writing his own views
7. As _ one uses symbols that expresses his
message and create the desired response. L5. are conclusions drawn from evidence.
(a) Sender (b) Sender-encoder (a) Research (b) Reference
(c) Receiver-decoder (d) Receiver (c) Inferences (d) Opinion
8. The _ is influenced by context and by his 16. A receiver's toward a message can
or her mental filter. determine whether it is accepted, rejected,

(a) Sender Receiver-decoder distorted or avoided.

(c) Receiver Sender receiver (a) Opinion (b)Attitudc

(c) Values (d)A&b
 82

17. Credibility in the sender is important in 30. Communicating means being specific, 41.
a
getting response. definite and vivid rather than vague and
(a) Negative (b) Favorable general.
(a) Concretely - (b)COrrectly
18. message often contradicts the verbal.
(a) Negative (c) Concisely (d)CIcarly
(b)NOnverbal
(c) Positive 31. Getting the meaning from ones head into the
19. The format, neatness, and language of a head of the reader/listener accurately is the 42.
written message sends a purpose of
message to the
reader.
(a) Clarity (b) Concretely
(a) Verbal (b) Nonverbal (c) Concisely (d) Correctly 43.

(c) Negative 32. involves being aware not only of the

perspective of others, but also their feelings.
20 of eye contact are specilic to each
culture.
(d) Clarity (b) Courtesy
(a) Culture
-(c) Conectly (d) Concisely
(b) Message
(c) Conventions 33. E-mail messages are short and often
21. can hinder ones verbal message. (a) Inforlnal (b)Formal
(a) Culture and message 34. At the core of is proper grammar,
l

(b) Eye contact and facial expression punctuation, and spelling.

(

(c) Conventions and eye contact (a) Correctness (b) Concreteness 46. 5
(d) Time and space (c) Clearness (d) Conciseness I

22. Concepts of _ are culture specific. 35. As an author, when one thinks that the
(a) Eye contact and facial expression reader will consider the message favorable or
(

(b) 7Cs and 5Ws neutral information, one can use the
(

(c) Time and space approach.

(d) None of the above (a) Direct (b)Indircct

23. The 7 Cs are correctness, conciseness, clarity, 36. As an author, when one thinks that the
completeness, concreteness, consideration reader will probability reach unfavorably to

and courtesy. the request or information, one can use the
(a) True

(b)Falsc approach.

U. All seven C's can appty to both oral and (a) Direct (b)Indirect

written communication. 37. As an author, when one thinks that the

(a)Truc (b)Falsc reader will probability reach unfavorably

25. One way to complete the rrlessage is to to the request or information, one should
answer . not' spring he main idea in the first
(a)7 Cs paragraph.
(b)5 Ws
(a)True (b) False
26. 5 Ws are who, what, when, where, and why.
(a)Trlle
38. The _ news message is one of the most
(b)False
difficult to write.
27. Conciseness is saying what one has to say in (a) Good (b) Bad
the fewest possible words without sacrificing
39. The most important positions in any business
the other
(a) C qualities (b) W qualities message are the paragraphs.
(a) Writing
28, A _ message is complete without being (b) Opening
wordy. (c) Closing
(a) Concise (b) Concrete (d) Opening and closing
(c) Clear (d) Correct
40 Often the determines whether the
29. means preparing every message with reader continues reading, puts the message
the message receivers in mind. aside for later study or discard.
(a) Concise (b)ConsidcratiOn (a) Opening (b) Closing
(c) Concrete (d)Corrcct
 83

41. Often the opening determines whether the 47. Most business letters have seven standard
reader
(a) parts which are heading, insidc adclress,
Continues reading
salutation, body, comfifimentary close,
the message aside fbr later study
!b.lllo
(c) Discard signature area, reference section.
(d) All of the above (a) Tnre (b)Falsc
48. Telegrams can send a message within a
42. a(n)
lyoia -..--_* opening sentence. (a) Province (b) Country --.
(a) Irritating (b) pleasant (c) Continent
43. The sentence is more likely to 49. Cablegrams and radiograms can send a
motivate the reader to act as requested.
(a) Opening (b) Closing
message within a _.
(a) Province (b) Country
44. The formal word for the word expect is (c) Oversees
(a) Anticipate (b) Ascertain
_.
(c) Contlagration (d) Deem 50 Telegrams, cablegrams and radiograms
save_-.
45 One agrees /o a plan and agrees with (a) Money (b) Time
a
person. (c) a&b
(a) True &) False
46. The medium used most often for written
messagesto persons outside the firm is the

(a) Business letter (b)Email

(c) Pager (d)SMS

ANSWERS

a 2. b 3. h 4. C 5. C 6. d
8. b 9. b
7. b
10 a d

12. 13. b
15 C b 14. b
16 17. b b

18 19. b 20 C b
22.

C 23. a 24. 25. 26. a 27.

29. b 30. 28 a
a 31. 32. 33. 34.

36. b 37. 38
35 a
a b 39 d 40. 41. d 42.
43. b 44. 45 46 47.
50
a 48. b 49.

 84

MiCRO EcoNOMICS
1. The function expresses the relationship 8. The changes in the price and the quantity
between the total quantity demanded and the supplied result in a movement the

price of the product. supply function.

(a) -
SLrpply (b) Utility (a)Along (b) Below -
(c) Demand (d) Market Basket (c)Abovc
2. A movement along u function always 9. When the slope is positive, producers
increase the quantity supplied from Q1 to Q2
involves a change in the price of the product
only if the price they receive P1 to P2.
- in the total quantity
in question and a change
(a) Increases (b) Decreases
demanded of that product.
. (a) Supply (b)Utility 10 The supply function shifts when following
(c) Demand (d)Markct Baskct factor(s) changes.
(a) Price of a factor of product clranges
3. The law of describes the inverse (b) The state oftechnology changes
relationship b,etwcen the quantity demanded (.-) Botha&b
and the price of the product.
(a) Supply (b) Complements 11. A exists when the quantity demanded
(c) Market (d) Demand equals the quantitY suPPlied.
(a)- Market imbalance (b) Market equilibrium
4. The_____function can shift if the price of
12. The difference between the quantity supplied
another good increases and consumer
f theother,
and the quantity demanded is known as
considcr one good a substitt:Lt
(a) Equilibrium supply (b) Demand function
(a) Supply (b)COmplcments
(c) Market (c) Supply function (d) Excess supply-.
(d)Dcmand
13. If demand means need and supply means
5 When the price of a product changes and the production capacity, a shortage or a surplus
demand function of a related product shifts is inevitable because plays no role in
in the opposite direction, the two goods are the analysis.
called_. (a)Markct demand (b) Market supply
(a) Demanded (b) Supplied
(C)P Ce
(c) Complements
14. A shift in the demand function
6. The demand f'unctions shifts to thc right and increases the equilibrium price and
the consumer prefer the product than equilibrium quantity when the supply
before -- function'has a Positive sloPe.
(a) More (b) Less (a)LftWard (b)Rightward
7. The function expresses the relationship (C)Up (d)Down
between the total quantity supplicd and the 15 Fixed and slowly adjusting prices do not
price-received by suppliers. provide a complete exPlanation of
(a) Complement (b) Demand and
(c) Supply (a) Shortage, Surpluses
(b) Demand, Supply
 85

(c) Equilibrium and Non Equilibrium 26. If the value of price elasticity is equat to -1,
16. The price elasticity of _ measure the the demand has unitary elasticity and a price
responsiveness of the quantity demanded to a change does not change.
price change. (a) Demand (b) Supply
(a) Supply (b) Demand (c) Total revenue
(c) Shortage (d) Excess
n. If the value of price elasticity is between -1
17. The price elasticity of _ compares the and 0, the demand is
average per:centage change in quantity to the (a) Price elastic (b) Unitary elasric
average percentage change.in price. (c) Price inelasric
(a) Supply (b) Demand
28. If the value of price elasticity is between -l
(c) Shortage (d) Excess'
. and 0, the demand is price inelastic and total
18. If the total revenue changes in the direction revenue changes in the direction as the
opposite the price change, the demand is price clange.
mtity (a) Price elastic (b) Unitary elastic (a) Opposire (b)Samc
the (c) Price inelastic
29. The price elasticity of smpply measures the
19. If the total revenue does not change when the responsiveness of the quantity supplied to a
prices changes, the demand has_. _ change.
(a) Price elastic (b) Unitary elastic (a) Price (b) Supply
ucers (c) Price inelastic (c) Demand
tO Q2
20. If the total revenue change in the sanne 30. A specifies the quantities of different
'O P2 direction that the price changes, the demand goods.
is (a)- Market basket (b) Supply funcrion
DWing (a) Price elastic (b) Unitary elastic (c) Demand function
(c) Price inelasric
-. 31. A represents a set of market baskets
21. The elasticity is the ratio of two where the well being of the consumer is the
magnitudes that resemble but are not exactly same.-
anded
equal to percentage changes. (a) Supply curve (b) Demand curve
(a) Arc price (b) Price elasticity (c) Indifference curve
(c) Unitary
brium 32. The is the slope of the indifference
pplied
22. The _ is the average percentage change curve at any point on the indifference map.
in the quantity demanded divided by t[e (a) Marginal
- rate of substitution
tion
average percentage change in price. (b) Price elasticiry
(a) Arc price (b) price elasticity (c) Unitary elasticiry
(c) Unitary
means 33. The is negative and measure the
urplus
23. If the value of price elasticity is less than -1, tradeoff between two goods that keeps the
:ole in the demand is_.--. utility-of the consurner constant.
(a) Price elasric (b) Unitary elastic (a) Marginal rate of subsriturion
(c) Price inelastic o (b) Price elasticiry (c) Unirary elasticity
v
24. If the value of price elasticity is less than -1, 34. Utility is heasured in suttect e units
rnction the demand is price elastic and the total called_.
and revenue changes in the direction ..- the (a)Bills (b)Utils
supply price change. (c) Indifference
(a) Opposite (b) paraltel
(c) Perpendicular 35 The slope of an indifference curve must be

25. If the value of price elasticity is equal to -1, (a)Negat e

' (b)Positivc
do not the demand has (C)Ilat
(a) Price elastic (b) Unitary elastic
(c) Price inelastic 36. Indifference curves rnust
(a)Not T6uch (b)Totich
 86

37. Consumers can afford only a subject of all

possible market baskets because each once 46. The _ measurcs the average percentage
faces a change in the quantity of one good relative to
(a) BLrdget constraints the average percentage change in the price of
(b) Indi l'f'erence curve another.
(c) Marginal rare ol'substitution . (a) Arc elasticity
(b) Cross arc clasticity of demand
38. The ----.-.^- shows which market baskets the
consunler can afford. 47. The change in quantity denranded of a
(a) Budget constraints commodity due to the change in money
(b) Indittbrence curve income is called the _ effect.
(c) Marginal rate of substitution (a) Indifference (b) Income
(c) Budget
39. The goal of the consumer is to maximize
utility while satisfying the 48. A _ curve shows the relationship between
. (a) Budget constraints the quantity demanded of X and the income
(b) Indiiference curve of the consumer with prices held constant.
(c) Marginal rate o1'substitution (a) Indifference (b) Engel curve
(c) Budget
40. When nraximizing utility by purchasing both
goods, the consunrcr makcs the marginal rate 49. When the quantity demAnded of a good 51

change in the same direction as the changc in

of substitution equal to the slopc of the
(a) Budget constraints
_. income, we call the good as _ good.
(b) Indiff'erence curve (a) Normal (b) Inl'erior
(c) Marginal rare ol'substitution 50. When the quantity demanded o[ a good
41. A popular measurc ol brarrd loyalty is
change in the opposite direction as the
change in income, we call the good as 6(
(a) Budget constraint
(b) Indifference curve good.
(c) Marker baskets (a) Normal (b) Inl'crior
(d) Relative frequency ofpurchase 51. The _ demand nleasures the avcrage
42. The _ is a horizontal summation of all percentage change in the quantity denranded
relative to the ayerage percentage change in 61
individual consurner demand functions.
(a) Budget constraints income.
(b) Inditference curve (a) Indifference curve of
(c) Marginalrate of substitution (b) Budget
(d) Market demand l'uncriorr (c) Arc income elasticity of 62,

43: A is the lowest price at which the 52. The _ effect measure the change in the
--
consumer's quantity demanded is zero. quantity demanded of X due to a change in
(a) Reservation pnce (b) Demand price
the relative price of X with utility heldr
(c) Supply price constant.
(a) Substitution effect (b) EngelC'urve 63.
U. A reservation price is the lowest price at which
the consumer's quantity demanded is __. 53. Change in quantity demandcd = change in
(a) Maximum (b) Mininrum quantity demanded due to substitution cffect,
(c) Zero + change in quantity demandcd duc to _'
effect. :
45. When the price of Y changes and the (a) Income (b) Buclget j
64.
quantity demanded of X changcs in the same (c) .Supply (d) Denrand
direction, with the price of X held constant,
X and Y are called 54. A consumer demands units at a lowerj
(a) Substitutes
price if the good is a normal good. ,
(a) More (b) Irss

(b) Gross substitutes

(c) Part of market baskets 55. Demand function of the consumer has a
slope.
(a) Negative (b) Positive
(c) Flat
-
tage
,e to 56. lf a good is a(n) good, the consumer 66. The function dcscribes thc inaxinlunl
:e of ., may dcmand more or fewer units when the quantity that can be produced rvith cach
price decrcases. combination of factors of production given a
(a) Inferior (b) Normal certain state of technology.
(a) Production (b) Utility
57. The slope of the consumer demand function
(c) Budget (d) SLrpply
fa of inferior good can be
ney (a) Positive 67. The law of describes the evcntunl
(b) Negative decline in the marginal product of thc
(c) Positive or negative variable factors as the variablc l'actor
incrcases with other factors hcld constiurt.
58 The _ simply says that the slope of the
(a) Diminishing retum (b) Production
demand function equal the sum of the (c) Demand (d) Buclgct
contributions bf the substitutions and income
effects. 68 shows the differcnt combinations ol'
(a) Slutsky equation (b) Engol Curve factors of production that can producc a
(c) Indiflerence curve given quantity of output.
(a) Budget (b) Isoquant
rod is the difference between the (c) Marginal rate of technical substiruritx
rin maximum amount the purchases would pay
(d) Isocost
to consumer a given quantity and the actual
69. The _ shows how a firm can substitute
amount paid.
(a) Consumer surplus (b) Demand surplus capital and labor for one another so that the

output is constant.

(c) Supply surplus

(a) Budget

60 The marginal willingness to pay for the first (b) Isoquant

unit is the amount that keeps the ionsumer (c) Marginal rate of technical subsrirurion
on the same _. (d) Utility
(a) Indiff'erence curve (b) Supply curve 70 A firm the total cost of producing a

(c) Demand curve given quantity by selecting a combination of

factors where the slope of the isoquant cqual

61. A marginal willingness to pay function shows

the slope of the isocost line.
the maximum amount the consumer is (a) Minimizes (b) Maxrrniz-cs
willing to pay for _ units of good.
(a) Additional (b) trsser 71. The_ total cost of producing a gii'cn
function is thc same as the
quantity occurs when the ratio of the
62. The _ marginal product to the last dollar spcnt on
marginal willingness to pay function when

there are no inconre effects.

the factor is equal for all lactors of

(a) Suppty (b) production.

Demand
(c) Indil'ference (a) Lowest (b) Highest

63. A_ represents the decrease in consumer

72. The long run total cost function shows tlrc
surplus that is not transferred to some other lowest total cost of producing each quantity

group. when all factors of production are

(a) (b) Slutsky equation (a) Constant (b) Variablc
Consume surplus
(c) Dead weight loss 73. The short run total cost function shows the
64. is a probability weighted average of total cost of producing each quantity
income over all outcomcs. when one factor is fixed.
(a) Expected income (b) Budger (a) Highest (b) Lowest
(c) Dead weight loss (d) Expected utility 74. costs are payments tbr factors of
65. is a probability weighted average of production, such as wages and rents alrd
purchases of goods and services.
the utilities of the consumer over all
(a) Demanded
outcomes. (b) Explicit
(a) Expected income (b) Expcuert utility (c) Opportunity
(c) Budget (d) Dead rvcight loss

L
 88

75. costs represent the forgone earnings 80. The long run average cost function shows the
or income when a firm employs a resource average cost of producing each
for a specific use. quantity.
(a) Demanded (b) Explicit (a) Lowest (b) Highest
(c) Opportunity
81. A --- exists when a single firm can
76 In the run at least one factor of product a givenquantity at lowest total cost .

-__
production is fixed. (a) Natural monopoly (b) Natural competirion
(a) Short (b) t ong 82. A competitive firm acts as if the market price
(c) Fixed (d) Variable
is of all the number of units sold by
77. A cost is a past expenditure or a the firm.
contracted expenditure that a firm cannot (a) Dependent (b) Independent
avoid. -
(a) Sunk (b) Opportunity
83 The price elasticity of demand for a
(c) Explicit (d) Variable
competitive firm is elastic.
(a) Finitely (b) Infinitety
78. The short run total cost function shows the
lowest total cost of producing each quantity
84. A competitive firm determines the quantity
produced where price equals short run_.
when at least one factor is
(a) Fixed (a) Marginal cost (b) Variable cost
(b) Variable (c) Utility function (d) Isocost tunction
(c) Irss (d) More
79. Minimunr total cost occurs when marginal
costs are at all plants.
(a) Equal (b) Different

ANSl ERS
1. C 2. C 3. d 4. d 5 L 6. a 7. c
8. 9. 10. C 11 b 12. d 13. c 14. b
15 16. b 17. b 18. a 19. b 20 c 21. a
22. 23. 24. 25 b 26 c 27. C 28 b
29. 30 a 31. c 32. a 33. d 34. b 35. a
36. 37. 38 a 39. a 40 41. d 42. d
43. a 44 C 45 b 46. b 47. b 48. b 49. a
50. b 51. C 52. a 53. a 54. a 55 a 56. a
57 C 58. 59. a 60. a 61. 62.
a b 63. c
64. a 65 b 66 a 67. a 68. b 69 C 70. a

72. b 73. b 74. b 75. c 76. a 77. a

78. 79 a 82.
80 b 83. b 84. a
 89

MACRO EcoNOMiCS
The property r ources are_ 9. For two substitute goods an increase in the
(a)Land .(b)Raw NIlate al price of one will
(C)Capital (d)All of the above (a) Decrease the demand for other
(b) Do nothing
2. The human resources are
(c) Remain stable
(a)Land (d) Increase the demand for the other
(b)Labor and Ability
(c)Entrepreneu al Activity 10. There are fundarnental questions
(d)BOth b&C which must be answered by every economic
system
10ney is a resource and is classirled as
(a) Two (b)Threc
(a)Land (b)Raw MatcHJ (c) Four
(C)Capital (d)BOth b&C (d)Five

4. OnIy _ is necessary for full production.

11. The economics virtues of the system are _
(a) Allocation of Resources (a) Efficiency use of resources. the incentives
(b) Efficiency for productive economic activity
(c) Allocative Efficiency (a) Freedom allowed by the market system, the
incentives for productive economic activity
(d) 'Resources
(c) Efficiency use of resources, Freedom
The marginal cost curve for a product rises allowed by the market system
because of _ satisfaction from the
consumption.
12. A non economic virtue is the personal
allowed by the market system
(a) Increasing (b) Decreasing
(a) Use of resources (b) Use of capital
(c) Stable (d) Continuous
(c) Confidence (d) Freedom
6. In the context of circular flow model, the 13. Specialization and trade among econorllucs
household frnctions on the side of the
units are based on the principle of
resources and the product markets.
(a) (a) Comparative advantage
Demand (b)Supply (b)
(c) Competitive advantage
Breakeven
(c) Production advantage
An economy is said to be efficient when it has (d) Efficiency advantage
achieved and _
14. If the exchange rate of Rupees (Rs.) increases
(a) Full Employment, Full Consumption
(b) against Dollar ($), it is known as _ in the
Full Employment, Full Production
(c) value of Dollar ($)
Full Consumption, Full Production
(d) (a) Appreciation (b) Depreciation
Full Capital, Full Production
8. For two complementary goods, an increase in 15. If the exchange rate of Rupees (Rs.) increases
against Dollar ($), it is known as _ in the
the price of one will cause the _ in the
value of Rupees (Rs.)
demand of other.
(a) (b) (a) Appreciation (b) Depreciation
Increase Decrease
 90

16.
T the exchange rate of Rupees (Rs.)
decreases 26. Unemployment always has a _
against Dollar ($), it is known as
in tlre value of R.upees (Rs.) (a) Economic cost (b) Econom[ profit
(a)Appreciation (b) Depreciation (c) Economic stability
(d) Economic advantage
17. I-f tlre exchange rate 'of Rupees (Rs.)
decreases against Dollar ($), it is known as 27. Increase in the general level of prices in the
in the value of Dollar (Rs.) economy is called as =-
(a) Appreciation (b) Depreciation (a) Inflation (b) deflation
18 For Double counting problenr, GDp includes 28. Decrease in the general level of prices in the
goods and services economy is called as _
(a) Final (b) Raw Material (a) Inflation (b) deflation
(c) Spmi Finished (d) tnventory. 29. is the result of exccss aggregate
19. GDP stands for _ demand in the cconomy
(a) Great Do-"rti"F.i* (a) Demand Pull Inflation
(b) Gross Dominant price (b) Demand Pull Deflarion
(c) Gross Domestic product (c) Demand Push Inflation
(d) Gross Domesric price (d) Demand Push Deflation
20 GNP stands for 30. Cost push is also known as
(a) Great National Production (a) Supply side inflation
(b) Gross National Product (b) Supply side deflarion
(c) Gross National price (c) Demand side inflation
(d) Great National Price (d) Demand side deflation
21. means alternatfurg periods of 31. Cost push is mosfly the result of factors that
prosperity and depression. per unit production costs.
(a) Business Cycle (b) Busihess Loop (a) Increase (b) Decrease
(c) Product Life Cycle (d) product Life Loop (c) Keep stable

22. Typical busincss cycle has the following 32. Fu-ndamental objective of any monetary
pattern. policy is
(a)
-.-
(a) Employment with inflation
Recession, trough; peak, recovery
(b) Peak, recession, trough, r""ou".y (b) Employmenr without inf'lation
(c-) Trough, peak, rcession, r".ou"iy (c) Employment with deflation
(d) Recovery, trough, recession, peak (d) Employment without deflation
23. is the result of insufficient aggregate 33. Money can best be defined as
demand in the economy. (a) Store of value
(a) Frictional unemployment (b) Unit of accounr
(b) Structural unemployment (c) Medium of exchange
(c) Cyclical unemployment (d) All of the above
24. is the result of changes in technology. 34.
(a) Frictional unemployment of other real variables.
(b) Structural unemployment (a) Steady state value, utility
(c) Cyclical unemployment (b) Utility, steady state value
25 full-employment unemployment rate is also 35 revenue collected because of issue of money
called as by government is known as
(a) Natural rate of unemployment (a) Causeof inflation (b) Hyp".influti,,,
(b) Natural rate of employment (c) Seingniorage
(c) Natural rate of cyclical unemployment
(d) Natural rate o[ structural ,ln"rlpioy,r,"nt
 ANSWERS
1. d 2. d 3 4. 5 6 7. C

8 b 9 d 10 d a 12. d 13. 14. b

b 17. 18. 19. 20. b

15. 16. a

22. b 23. C 24. b 25 a 2`. 27. 28. b

d
29. 30 a 32. b 33. 34. a 35. C
 92

SaUPLE Tesrs

SnUPLE Trsr - I

A quantitative variable that can assume a 7. Some combination of products, services,

countable number of values is called information, or experiences offered to a
(a) Ordinal variable (b) Discrete variable marketto satisfy a need or want is
(c) Random vanable (d) Nominal variable called_.
2. The form human needs take as shaped by (a) Market off'ering
culture and individual personality (b) Market myopia
is
called--. (c) Exchange
(a) Psychology (b) Demands (d) Market segmentation
(c) Hunger (d) Wants 8 The marketing management philosophy that
holds that achieving organizational goals
3. A quantitative variable that can assume an depends on knowing the needs and wants of
uncountable number of values is target market and delving the desired
called_. satisfactions better than competitors do is
(a) Continuous variable
(b) Discrete variable
called_.
(a) Research (b) Selling conccpr
(c) Nominal variable (c) Marketing concept (d) Service concepr
(d) Random variable
9 The idea that a company's marketing
4: The mistake of paying more attention to the decisions should consider consumers' wants,
specific products a company offers than to the company's requirements, consumers, )
the benefits and experiences produced by long run interest, and society's long run (
these products is called interests is called
(a) Market offering (a) Ethical marketing concept 1

(b) Exchange (b) Societal marketing concepr

(c) Market myopia
(d) Product segmentation
5. A sampling method that produces values
which systematically differ from
population being sarnpled is called
(a) Sample
(b) Random sampling meth<ld
(c) Biased sampling method
(d) Un-biased sampling method
6. Human wants that are backed by buying
power is called
(c) Customer relationship management
(d) Customer perception
10. The overall process of building and
the maintaining profitable customer relationships
by delivering superior customer valuc and
satisfaction is called
(a) Customer relationship management
(b) Customer perception
(c) Customer satisfaction
(d) Competition
11. The customer's evaluation of the difference

(a) Hunger Wants between all the benefits and all the costs of a
marketing offer relative to those of

(c) Demands Off'er

competing offers is called
(a) Customerevaluation
(b) Customer-perceived value
 93

(c) Competition 20 Working closely with partners in other

(d) Customer generated value company departments and outside the
12. The act of obtaining a desired object from company to jointly bring greater valuc to
someone by offering something in return is customers is called
called _ (a) Partner relationship management
(a) Exchange (b) Market (b) Joint venture
(c) Concept (d) Production (c) Alliance (d) Customer sharing

13. The idea that consumers will favor products 21. The set of aII actual and potential buyers of a
that offer the most quality, performance, and product or service is called.
features and that the organization should (a) Market
therefore devote its energy to making (b) Market management
continuous product improvement is called (c) Production (d) Exchange

22. xl6 - 5 =xl9 + 1, the value of x is

(a) Selling concept (b) Product concept (a)108
lces,
(b)109
D a (c) Market concept (d) Service concept (C) 110 (d)120
lS
14. The idea that consumers will not buy enough 23. Consider the equation 56x + 7y = 91, the
of the firm's products unless it undertakes a slope in the given equation is _..
large scale selling and promotion effort is (a)8 (b)-8
called_. (c)7 (d)-7
(a) Selling concept (b) Product concept
(c) Market concept (d) Service concept 24. The value of the intercept in the equation in
that
15. The extent to which a product's perceived
Question 23 is _.
DalS (a)91/56 (b)56/91
S Of
performance matches a buyer's expectation (c)91/7 (d)8
red is called_.
(a) Customer satisfaction 25 Consider the equation l6Y = 176. The sloPe
)is of the given equation is
(b) Customer matching
(c) Customer competition (a)11 (b)12
(d) Customer evaluation (c) 13 (d)14

Fon QursrroNs L6- 18 26. The art and science of choosing target

For depreciation of a vehicle, a firm uses

markets and building profitable
relationships with them is called_.
y = 68000 - 8000x equation, where y is current value'
(a) Marketing management
of the vehicle and x is number of years. (b) Market offering
16. What is the initial value of the vehicle (c) Production concept
is-. (d) Selling concept
(a)68000 The idea that consumers will favor products
(c)8000 (d} 27.
that are available and highly affordable and

17. The value of vehicle after three years will that the organization should therefore focus

be on improving produition and distribution

(a)4400 (b)44000 efficiency is called_.
(c)5400 (d)54000 (a) Selling concept (b) Production concept
(c) Market concept (d) Service concept
18. The salvage value after 8 years will be
(a) 1000 (b)2000 28 x/4-x/5=6,the value of x is ,

(c)3000 (d)4000 (a)100 (b)110

19. Marketing messages, ads, and other brand (c) 120 (d)130

exchanges created by consumers themselves- 29. Planning, training, reassignment of

both invited and uninvitetl is called global employees to

home countries is
(a) Branding called
(b) Consumer generated marketing (a)RepartHation (b) Expatrration
(c) Customer relationship management (c)Global Training (d) GlobalAssignment
(d) Consumer value
 94

l'on QursrroNs J0 48.

36. is a major factor in
A firm which has-33
fixed cost of Rs. 650 and communication costs.
overall
marginal cost of Rs. 9, which is the expense
incurred (a) Receiver (b)Sender
fbr each additional unil of output x. th^t: total
cost C,
(c) Time (d)Space 49.
can be expressed by the equatiirn C 9x +
= 560. 39. Poor communication can cost an
30 what is the cOst, if thc rlrm produce 150 organization and
unl ? (a) Money -- (b)Tilnc
(a)1620 (b)1720 (c) Botha&b
(C) 1820 (d)1920 40. Following are the components of
31 what is the cOst, if the rlrnl produces 15 communication along with contcxt, sender_
units? encoder, message_.
(a)695 (a)NIledium (b) Recciver-decoder
(b)795
(c)895 (c)Feedback (d) ettof
(d)995 above

: r mettrm FOd
e 41. As =- one uses symbols that cxpresses
z
" his message and creatc tlre dcsircd
(a)460 (b)560 response---.
(a) Sender
(c)660 (d)760 G) Sencler-cncoder
(c) ll.eceiver-decoder (d) Recciver 52.
33. What fixccl cost, can be assumed from the
equation? 42. The-- is influenced by context ancl by his

(a)460 560 or her mental filter

-_ -
(a) Sender

(c)660 760 (b) Receiver-decoder

(c) Receiver (d) Sencler receirer-
34. Compensation package that equalizes cost
differences between irnternational assignments 43. Fecdback can be an ora1 0r a writton
53.
and those in the home country is message,an actiOn Or simply_______
(a) Balance Approach
called_. (a)NIessagc (b)silcllce
(b) Balance Assignment (c)Email (d)SMS 54.
(c) Balance sheet approach 44. IiscOllununicatiOn Occurs when the sender
(d) Compensation Approach and recelver have nleanings fOr the

35. A measure of the quantity and quality of synll 01s used.
55.
work done, considering ihe .ori of the (a)Differcnt (b)Sanlc
(C)Gendcr dif rencc
(a) Productivity 45. organizatiOnal use of elnp10yces tO gain Or
(b) Quantity and euality Survey keep a colnpetitive advantage against
(c) Cost benefit analysis 56.
colnpetitOrs is called_
(d) Resource Analysis
(a)Organiza10nal HRM
36. Computed by dividing the average cost of (b)Strategic HRNI
workers by their ayerage lcvek ofoutput (C)CompetitiOn Gain Stratcgy
is
called_--. (d)Strategi organizatiOn
(a) Wages (b) Salary 46. A unique capability that croates high vallle ' 57.
(c) Unit Labor Cost (d) Average and that differentiates the OrganizatiOns
Unit Cost
37; from its cOmpetitiOn is called_
Process- of analyzing andidentifying the need
for and availability of -..r]or."". (a)Maor competency
human ,o
that the organization can meet its ob.iectives (b)Uniquc conlpetcncy
is called
(a) Human Resource planning 113 8: [ : 1:Fncy .
58.
(b) Need Based planning 47. A practice whereby uniOn Or wOrker l
(c) Need Based Analysii representatives are given positiOns On a l
(d) Human Resource Analysis company's board Of directors is I
caned_.

:; F l] :l:
n {:

: [i :ni :[ 11
 95

When the slope is positive, . producers

A person rvith responsibility for performing

59.
a verity of IIR rtctivities is called increase the quantity supplied fronr Q1 to Q1
(a) HR Manager (b)HR Director only if the price they reccivc P1 to P2.
(c) HR In charge (d) HR generalist (a) Increases (b) Decreases
49. A percon with in-depth knowledge and
(c) Remain constant

in
expertise in a linrited area of IIR is called 60. The supply function shifLs rvhcn fbllowing
(a) HR specialist (b) Recruiter factor(s) changes.
(c) Manager (d) Proprietor (a) Price of a factor of product changcs
50. If the total reYenuc change in the same (b) The state of technology clranges
direction that thc price changes, the demand (c) Botha&b
is 61. The price elasticity of _ measure the
(a) Price elastic (b) Unitary clastic responsiveness of the quantity demanded to a
(c) Price inelastic price change
51. The changes in the price and the quantity (a) Supply (b) Demand
. supplied result in a rnoYemcnt _ the (c) Shortage (d) Exccss
supply function
(a) Akrng (b) Below 62. A _ is usually the dictionary delinition
of a word.
(c) Above
(a)Quotation (b) Anonynrs
52. The shared values and beliefs of a workforce (c)Denotation (d) Connotation
is called
(a) Organizational Beliefs
63. A ._ is an implication ol' a word or a
(b) Organizational Culture suggestion separate fronr thc usual
(c) Workplace Culture definition.
(d) None ol the above
(a) Denotation (b) Conntttation
(c) Definition (d) Quotation
53. _ are signs for things that exist.
(a) Synonyms (b) Antonynrs 64. When one selects some facts and omit othcrs,
(c) Abbreviations (d) Syrnbols one is _
-A (a) I{iding facts
_ exists when the quantity demanded
(b) Abstracting
gquals the quantity supplied.
(c) Briefing
(a) Market imbalance (b) Market equilibrium (d) Writing his own views
The difference between the quantity supplied
and the quantity demanded is known as _.
65 The _ elasticity is thc ratio of two
(a) Equilibrium supply (b) Demand function magnitudes that resemble but are not exactly
(c) Supply function (d) Excess supply equal to perccntage changes
(a) Arc price (b) Price elasticity
If demand means need and supply means (c) Unitary
production capacity, a shortage or a surplus
is inevitable because plays no role in 66. The _ is the average percentage change
the analysis. in the quantity demanded divided by the
(a) Market demand (b) Market supply average percentage change in price.
(c) Price (a) Arc price (b) Price elasiicity
(c) Unitary
A shift in the demand f'unction
increases the cquilibrium price and 67. If the value of price elasticity is lcss than -1,
equilibrium quantity when the supply the demand is
function has a positive slope.' (a) Price elastic (b) Unitary elastic
(a) lrftward (b) Rightward (c) Price inelastic
(c) Up (d) Down
68. The price elasticity of _ comparcs the
Fixed and slowly adjusting prices do not provide average percentage change in quantity to the
a complete explanation of and average percentage change in price.
(a) Shortage, Surpluses (a) Supply (b) Denrand
(b) Demand, Supply - (c) Shortage (d) Exccss
(c) Equilibrium and Non Equilibrium

1.
 96

69 If the total revenue changes in the direction 70, If the total revenuedoes not change when the
opposite the price change, the demand is prices changes, the demand has
(a) Price elasric (b) Unitary elasric
(a) Price elastic (b) Unitary clastic (c) Price inelastic
(c) Price inelast.ic

ANSWERS
I b 2. d 3. 4. C 5 C 6. C 7.
8. C 9. b 10 b 12. a 13. b 14.
15. 16. 17. b 18. d 19. b 20. 21.
22. 23. b 24 26.
25 a 27. b 28.
29. a C 31. 32 b
30 33. b 34. 35.
36. C 37 a 38. 39, 40. d 41. b 42. b
43. b 44. a 45 b 46. d b
47. 48. d 49
50 L 51. a 52. b 53. d 54. b d
55 56. C
57. b 58. a 59. 60 61. b 2.
C 62. C 63. b
64. b 65. 66. 67. a 68. b 69 70 b

3.

4
 97

lge When

clastic

SnuPLE Trsr - ll
The system by which corporations are 7. A samPle statistic whose samPling
it encompasses the distritrution has a rnean value equal to the
munug"d'and controlled,
ielationshiPs among a comPanY's value of the population parameter being
estimated. Such as statistic is known as
ihareholders, board of directors and senior
(a) Point estimate (b) Irvel of confidence
management is best described bY
(c) Unbiased statistic
(a) Rules and Regulations

(b)' CorPorate govsmance 8. A business form legally separate from its

(c) Standard Operating Procedures owners. It s distinguishing features include
(a) goara of Governance limited liability, easy transfer of ownership,
unlimited life, and an ability to raise large

2, Member of a partnershiP with unlimited called-.

sums of capital is

liability for the debts of the PartnershiP is (a) Corporation (b) Limited company
r, called- (c) Public Company (d) Partnership
."' (a) General PartnershiP
i (b) Corporation 9. Taxation of the same income twice' A classic
(c) Sole Proprietorship example is taxation of income at the corporate
(d) Public unlisted level and again as dividend income when
if and received by the shareholder is called
3. Two events x and y are
or non occurrences of (a) Depreciation
only if the occurrence
(b) Accounting
on. does not affect the probability assigned
-events (c) Double Declining Method
to the occurrences of the other'
(d) Double taxation
(a) DePendent events
(b) Independent events 10. A business form that providcs it owners
(c) Both a and b (called members) with corporate style limited
, personal liability and the fcderal tax
4, A sample obtained in such a way that each
possible sample of fixed size n has an equal
treatment of a partnership is called
probability of being selected is called-' (a) PartnershiP
^(a) (b) Sole proprietorship
Random sample (b) Ordered sample
(c) Bivariate sample (d) Union sample (c) Limited liabilitv company (LLC)
(d) Public Unlisted ComPanY
5. The standard deviation of the sampling
distribution of sample means is called 11. The systematic allocation of the cost of a
(a) Point estimate for a Parameter capital asset over a period of time for
(b) Unbiased statistic financial reporting purposed, tax purposcs,
(c) Standard error ofmean or both is called-.
(d) Bivariable samPle (a) Salvage Value (b) Interest
to cstimate a (c) Earnings after tax (d) Depreciation
6. A single numtrer designed
quantitative parameter of a population' 12. A method depreciation that allocatcs
of
usually the value of the corresponding expenses evenly over the depreciable lifc of
sample statistic is called.-' the asset is called-.
(a) Standard error of mean (a) Double Taxation Method
(b) Point estimate for a Parameter (b) Straight line dePreciation
(c) Unbiased samPle (c) Accelerated dePreciation
(d) kvel of confidence (d) Declining balance deprrciation



 98

13. A firm the total cost of producing a 23. A competitive firm acts as if the nrarket prlce
given quantity by selecting a combination of is of all the number of units sold by
factors where the slope of the isoquant equal the firm.
the slope of the isocost line. (a) Dependent (b) Indcpendent
(a)Minimizes (b)Maximttes
-
24. The price elasticity of demand for L
14. Thc _ total cost of producing a given competitive firm is elastic.
quantity occurs when the ratio the of (a) Finitely (b) Infinitety
marginal product to the last dollar spent on 25 The long run total cost function shows the
the factor is equal for all factors of lowest total cost of producing each quantity
production. when all factors of production are _
(a) Lowest (b) Highest (a) Constant (b)Va able
15. A business form fbr which there is one 26. The short run total cost function shows the
owner. This single .owner has unlimited _ total cost of producing each quantity
liability for all debts of the firm. Such type of when one factor is fixed.
business is called (a) Highest (b) Lowesr
(a) Sole proprierorship
(b) Partnership 27. costs are payments for factors o[
(c) Privatc Limited production, such as wages and rents and
(d) Public Untisted purchases of goods and seryices.
(a) Demanded (b) Explicir
16. In a partnership'all partners have (c) Opportunity
unlimited liability for the debts of the firm.
(a) General
-_ Partnership(b) Limited partner 28. costs represent the forgone earnings or
(c) Public Listed (d) partnership income when a firm employs a resourcc for a
specific use.
17. Member of a limited partne rship not
personally liable for the debts of the (a) Demanded (b) Explicit
partnership is called (c) Opportunity
(a) Limited parrner (b) partnership 29. In the run at least one factor of
(c) Sole proprierorship (d) public Iisted production is fixed
18. A cost is a past expenditure or a (a)Short (b)Lon3
contracted expenditure that a firm cannot (c)Fixed (d)Vanablc
avoid. 30.
(a)-Sunk (b) Oppor.tunity fh"-----
in
is the average percentage change
the quantity demanded divided by the
(c) Explicit (d) Variable average percentage change in price.
19 The short run total cost function shows the (a) Arc price (b) Price elasticity
lowest total cost of producing each quantity (c) Unitary
when at least one factor is
31. If the value of price elasticity is less than ,1,
(a)Fixcd (b)VaHablc
(c)Lcss (d)Mo
the demand is _.
(a) Price elastic (b) Unitary elastic
20 Minimum total cost occurs when marginal (c) Price inelasric
costs are at all plants.
(a) Equal 32. If the value of price elasticity is lcss than -1,
(b)Dlltrcnt
the demand is price elastic and the total
21. The long run averagc cost function shows the revenue changes in the direction the
average cost of producing each price change
quantity. (a) Opposite (b)Parilllel
(a) Lowest (b) Highest (c) Perpendicular
22. A exists when a single firm can 33. If the value of price etasticity is cqual to
--- a given quantity at lowest total cost.
product the demand has
(a) Naturul monopoly (b) Natural compbtition (a) I'>rice elastic (b) Unirary elusric
(c) Price inelastic--
 99

34. If the value of price elasticity is equal to -1, 44 If the total revenue change in the same
the demand has unitary elasticity and a price direction that the price changes, the demand
change does not change_. is-
(a) Demand (b)Supply (a) Price elastic (b) Unitary elastic
(c) Total revenue (c) Price inelastic

35. If the value of price elasticity is between -1 45 The _ elasticity is the ratio of two
and 0, the demand is magnitudes that resemble but are not exactly
(a) Price elastic (b) Unitary elastic
equal to percentage changes.
(a) Arc price (b) Price elasticity
(c) Price inelastic -_. (c) Unitary
36. If y = 3000000 - 45fi)00x , for tax purpose 46. An vegetable orchard charges Rs.25 to enter
the value y of a computer after x years. What
and Rs. 60 a kilo for whatever is picked. The
will be the value of the computer after 3 cost C as a function of the number of pounds
years?
x of apples picked can be written as
(a)1650000 (b)1750000 (a) C(x) = 0.60x + 0.25
(c) 1850000 (d)1950000 (b) C(x) = 60x + 25
37, For the equation in Question 36 above, what (c) C(x) = 6x + 2.5 (d) C(x) = 60x - 25
is the salvage value after 5 years. 47. A set of eight steps including identifying a
(a)650000 (b)750000 problem, selecting an alternative and
(c)850000 (d)950000 evaluating the decision's effectiveness is
38 Consider the profit function, P = 52 - S + 7, called_.
where S = units sold and P = profit. What (a) Programmed decision
profit the organization will get for 5 units of (b) Un programmed decision
sales?
(c) Decision making process
(d) kadership

(a) 10

(c) 12 48 A discrepancy between an existing and a

39. An oflice machine worth Rs. 12000 desired state of affairs is called_.
depreciates in value by Rs. 1500 a year.
(a) Gap analysis (b) Problem
(C)S01utiOn (d) Mentorship
Using linear or straight line depreciation, the
value V of the machines as a function f years 49. Criteria that define what's relevant in a
t can be expressed as _. decision is called_.
(a) V(t) = 1200-1500t (b) V(t) = 12000-150t (a)S01utiOn (b) Decision criteria
(c) V(0 = 1200-150t (d) V(0 = 12000-1500t (c) Programmed decision
(d) Un programmed decision
40. A competitive firm determines the quantity
produced where price equsls short run_. 50 Conveying a decision to those affected and
(a) Marginal cost (b) Variable cost getting their commitment to it is called
(c) Utility function (d) Isocost function

(a) Implementation Feedback

The price elasticity of _ compares the (c) Rationality Mentorship

average percentage change in quantity to the
average percentage change in price. 51. describes choices that are consistent
(a) Supply (b) Demand
and value maximizing within specified
(c) Shortage (d) Excess
constraints
(a) Implementation (b) Efficiency
42. Ifthe total revenue changes in the direction (c) Rational decision making
opposite the price change, the demand is _. (d) Productivity
(a) Price elastic (b) Unitary elastic
(c) Price inelastic
52. Behavior that is rational within the
parameters of a simplified decision making
43. If the total revenue does not change when the process, which is limited or bounded by an
'prices changes, the demand has_. individual's ability to process information is
(a) Price elastic (b) Unitary elastic called
(c) Price inelastic (a)Satisicing (b) Bounded rationality
(C)Soldiering (d) Efficiency
 100

53. A bucket

contains 5 blue balls and 3 red balls. A national culture attribute that reflects the
Red ball is picked from the bucket at randorrl emphasis placed upon relationship and
without replacement. Then the second ball concern for others is called
was picked. The probability that red ball will (a) Quality of life (b) Individualism
be picked second time as well ls (c) Collectivism (d) Quantity of lile
(a)0 (b) 1/7
(c) 2/7 (d)3/7 The feelings of confusion, disorientation, and
`2. emotional upheaval cased by being immersed
54. A bucket cOntains 5 blue baus and 3 red in a new culture is called__.
baliso Red ball is plcked froln the bucket at (a) Psychological culture
randOm withOut replacemento Then the (b) Culture shock
ltr ll:Ittll (c) Socialization (d)Collect ism
lS________. 63. The process that employees go through to
(a)0 (b)5/7 adapt to an organization,s culture is
(c)6/7 (d)1 called_.
(a) Mentorship
55 A rlrm has a rlxed cost Of Rs. 25000 and (b) Organizational socializarion
variable cOsts per item manuFactured is Rs (c) Decision making
85 rhe rlrnl,s total ccDSt aS a functiOn of
(d) Alliance
output will bc__ _.
(a)Y=2500+85X 64. A choice from two or more alternatives is
(b)Y=25CICl+85X called
(c)Y=2500_85X (a) Option (b) Decision
(d)Y=25000+85X (c) Alternative (d) Probtem
yal Probability of an event a is has the rdnge
r
65

accOrdingly,
:ls
(a)O and l
and _
(b)O and l
Supply: Q=_50+6P (C) l and 2 (d) l and o
Domand:Q=230_8P 66. The set of all sample points in the sample
place that do not belong to event a. Such an
TStteequ ; b ?
event is known as _.
(c)30 (a) Complement of an event
(d)40
(b) Union of event
57. For Question 56, the equi brium supply (c) Intersection ofevent(d) Subset of event
quantity will be

(a)60 67. Sum of all the probabilities of each event in a

(c)80 sample space equals _

58. For Question 56, the equilibrium (a) 1 (b)0

demand (c) 2 (d)1
quantity will be

(a)60 (b) 68. Events defined in such a way the occurrence

(c)80 (d) of one event excludes the occurrence of any

of the other events are called
59 Prorlt= (a) Union events (b) Intersection evenrs
(a) Revenue - Cost (b) Revenue + Cost (c) Mutually exclusive events
(c) Break even point (d) Superset events
60. A nationql culture attribute describing the 69 In _ the owner is personally liable for
extent to which societal values are the debts of the business.
characterized by assertiveness and (a) Sole proprietorship
materialism is called (b) Public unlisted company
(a) Quality of life (b) tndividualism (c) Financial statemenrs
(c) Collectivism (d) euantity of life (d) Private limited company
 101

70. A is an unincoiporated business

organization with a single owner.
(a) Sole proprietorship
(b) -Public unlisted company
(c) Financial statements

(d) Private limited company

ANSWERS
1 b 2 3 b 4 a 5 C 6 b 7 C
8 a 9 d 10 C 11 d 12 b 13 a 14 a

15 16 17 18 19 20

a a a a a a 21 a
22 a 23 b 24 b 25 b 26 b 27 b 28 C
29 a 30 a 31 32 33 b 34 C 35 C
36 a 37 b 38 C 39 d 40 a 41 b 42 a
43 b 44 C 45 a 46 b 47 C 48 b 49 b
50 a 51 C 52 b 53 C 54 b 55 d 56 b
57 b 58 b 59 60 d 61 a 62 b 63 b
64 b 65 a 66 67 d 68 C 69 a 70

)le
lln

102

Sauple Tesr - ill

1. Samples that are selected on the basis of Probability sampling
being typical is called Random sampling
(a) Sample frames
H:: :
(c) Judgment samples
LS 9. A sample obtained by stratifying the
sampling frame and then sclecting a fixed
2. The variation in thc market price of
security number of times from each of the
-"strata by
caused by changed in inicrcst rates
is
means of a simple random sampling
called_.--. techniques is called
(a) Inrerest rate (b) yield (a) Non stratilied sample
(c) Rist (d) All ot,rhe Above (b) Random sample
3. (c) Probability sample
Income on an investment plus any change
in (d) Stratified random sample
market price, usually - expressed as a
percentage of the beginning market
price of A firm which has fixed cost of Rs. 650 and
the investment is cdled_-_. marginal cost of k. 9, which is the expense
(a) Interest rare (b) yield incurred for each additional unit of ,"tp;;. 2(
(c) Risk (d) Return Thetotal cost C, can be expressed by the equation
4. C=9x+560.
The variability of returns from those
that are
expected is called_ 10 what is the cOst, if the rlrnl prOduces 150
(a) Risk units?
(b) probability (a) 1620 (b)1720
(c) Rerurn (c) 1820 (d)1920
' (d) Coefficienr of variarion
11. What is the cost, if the rlrnl prOduces 15
5. Samplcs in which the elements to be selected units?

are drawn on the basis of probability is (a)695 795
called--. (c) 895 995
(a) Probability samples
(b) Judgment sampling 12. What is the cost, if the firnr produces no
(c) Sampling flrames units are produced units? 23
(d) Biased sampling (a)460 (b)560
(c)660 (d)760
6.. --:.- of eye contact are specific to each 13. what rlxed cost, can be assunled frOm the
culture.
equatiOn?
(a) Culture (b) Messagc
(c) Conventions
(a)460 (b)560
(c)660 (d)760
7. Simple random samples are obtained either
A
by sampling with replacement from a
14. in such a way that very
sample selected
population or by sample without replacement in _the population has an equal 24
"l"T"T1-.
probability of being chosen is called
form a(n) population.
(a) Finite, infinite (b) tnfinite, finite
(b) Simple random sample
8. A sample in which every kth item of the (c) Non random sample
sampling frame is selected, starting from a (d) Sampling frame
randomly selected first eterient is 15 A combination'of two or more securities or
. called_.
(a) Judgmental sampling assets is best described by._.-.
(b) Systematic sampling
(a) Parameter (b) program
(c) Portfolio (d) Beta
 103

1`. Consider the equation l6y = 176. The slope 26. Working closely with partners in other
of the given equation is company departments and orrtside the
(a)11 (b)12 company to jointly bring greater value to
(c) 13 (d)14 customers is called
(a) Partner relationship management
17. The expected rate of return on a bond if
(b) Joint venture
bought at its current market price and held
(c) Alliance
to maturity is called_.
(a) Bond discount (b) Yield to rnaturity (d) Customer sharing
(c) Annuity (d) Extrapolation 27. xl6 - 5 = xl9 + l, the value of x is

18 x/4-x/_5=6,the valuc of x i _______? (a)108 (b)109

(a) 100 (b)110
(C) 110 (d)120
(c) 120 (d)130 28. Consider the equation 56x + 7y = 91, wlrat is

the slope in the given equation.

19. The ratio of the standard deviation of a
distribution to the -""n oi that distribution (a)8 (b)-8
is called (c)7 (d) 7
(a) Parameter 29. The value of the entire stream of purchascs
(b) Coefflcient'of variation that the customer would make over a lifetinre
(c) Interest rate of patronage is called

(d) Probability (a) Lifetime patronage

(b) Share of customer
20 A measure of rclative risk is

(a) Coefficient of Variation (c) Customer relationship

(d) Customer lifetime value
(b) Interest rate (c) Probability
(d) Standard Error mean 30. The portion of the customer's purchasing
that a company gets in f,ts product categories

The value of the intercept in the equation in

is called_.
Question 10 is (a) Share of customer
(a) 560 (b) 140 (b) Profit
(c) 150 (d) 160
(c) Product
22. The amount by which the current price of a (d) Customer equity
bond exceeds its face value is called_.
31. The idea that consumers will not buy enough
(a) Bond premium (b) Intrinsic Value
of the firm's products unless it undertakes a
(c) Extrinsic Value (d) yieta large scale sclling and promotion effort is
10
23. The customer's evaluation of the difference called_________.
between all the benefits and all the costs of a (a)Selling concept (b) Product concept
marketing offer relative to those of (C)Market cOnccpt (d) Service concepr
competing offers is called 32. Extra payment for empnoyees whose jobs are
(a) Customer evaluatiorr being eliminated, thereby motivating them to
(b) Customer-perceived value remain with the organization for a period of
(c) Competition time is called_.
(d) Customer generated value (a) Extra Payment

24. Estimating an unknown number that lies

(b) Transition stay bonus
somewhere between two known numbers is (c) Motivating Bonus
called (d) Transactional Bonus
(a) Extrapolate ' (b) Interpolate 33. A formal research effort that evaluates the
(c) Curve Making (d) Simulation current state of HR management in an
25 The amount by which the face value of a organization is called

bond exceeds its current price is called (a) HR audit Formal Audit

(c) Research Audit Evaluative Audit

(a) Intrinsic Value Bond discount

(c) Extrinsic Value Yield

 104

34. The analysis of data from IIR records to 41, Analysis in which economic or other 45
determine the effectiveness of past and statistical models are built to identify the
present HR practices is called_. costs and benefits associated with specific
(a) Research methodology HR activities is called
(b) HR audit (a) Utility analysis
(c) Transactionalaudit (b) Economic Analysis 50
(d) HR research (c) Statistical Analysis
35 The idea that a company's marketing (d) Cost and Benefit Analysis
decisions should consider consumers' wants, 42. An integrated system designed for- providing
the company's requirements, consumers' information used in HR decision making is
long run interest, and society's long run called
interests is called (a) Integrated HR System
(a) Ethical marketing concept (b) Human Resource Information System
(b) Societal marketing concept 51
(c) MIS
(c) Customer relationship management (d) HR Decision Making Sysrem
(d) Customer perception
43. The total combined customer lifetime value
3` The overall process of building and of all of the company's customers is called
maintaining profitable customer relationships
by delivering super.ior customer value and (a) Share ofcustomer (b) Customerequity 52
satisfaction is called (c) Profit
(a) Customer relationship management (d) Customer relationship
(b) Customer perception
(c) Customer satisfaction 44. Process of studying the environment of the
(d) Competition organization to pinpoint opportunities apd 53
threats is called
37. A firm's net operating profit after the cost of (a) Environmental Studies
capital is deducted is called
(a) Economic value added (b) SWOT Studies
(b) Utility Analysis (c) Environmental Scanning
54.
(c) Profit (d) Pinpoint Opportunities
(d) Return 45. Use of information from the past and present
38. The marketing management philosophy that of identity expected future conditions is 55.
holds that achieving organizational goals called_.
depends on knowing the needs and wants of (a) Futuristic (b) Forecasting
target market and delving the desired (c) Predicting (d) Fore sensing
satisfactions better than competitors do is 56.
46. Comparing specific measures of performance
called_. against data on those measures in other .,best
(a) Research (b) Selling concept practice" organizations is called_.
(c) Marketing concept (d) Service concept (a) Auditing (b) Gap Analysis
39. The extent to which a product's perceived (c) Benchmarking
performance matches a buyer's expectation (d) Retum on Investment
is called_. 47.
57.
(a) Customer satisfaction Calculation showing the value of expenditures
(b) Customer matching for [tR activities is called
(c) Customer competition (a) HR audit
(d) Customer evaluation (b) Return on Investment
(c) Capitallnvestment
40. Marketing messeges, ads, and other brand (d) Profit or Loss 58.
exchanges created by consumers themselves - 48. can hinder ones verbal message_.
both invited and unimvited is called
(a) Branding (a) Culture and message
(b) Consumer generated marketing (b) Eye contact and facial expression
(c) Customer relationship management (c) Conventions and eye contact
(d) Consumer value (d) Time and space
 105

49i _ 59. The ratios which can be used to

Concepts of are culture specific.

estimate
(a)

Eye contact and facial expression indirect labor is called

(b) 7Cs and 5Ws (a) Labor Ratio (b) Staffing ratios
(c) Time and space (c) Estimate Ratio (d) Employee Ratio
(d) None of the above 60 The two categories of stockholders' equity
50 The purchase of any asset on credit will usuatly found on the balance sheet of a
cause a(n) in the asset and an corporation are.
in a liability. (a) Contributed capital and long-rerm liabilities
(a) (b) Contributed capital and property, plant, and

Increase, increase

(b) Increase, decrease equipment

(c) Decrease, incrcase (c) Retained eamings and notes payable
(d) Decrease, decrease (d) Contributed capital and retained earnings
:

51. The cast payment of an account payable or" 61 A qualitative a variable that incorporates an
note payable will cause a _ in the asset ordered position or ranking is
cash and a _ in the liability paid. called_.
(a) Random variable (b) Ordinal variable

(a) Increase, increase (b) Increase, decrease

(c) Decrease, increase (d) Decrease, decrease (c) Nominal variable (d) Qualitative variable
52. The collection of an account receivable will 62. A quantitative variable that can assume a
cause a(n) in cash and a in countable number of values is called
account receivable. (a) Ordinal variable (b) Discrete variable
(a) Increase, increase (b) Increase, decrease (c) Random variable (d) Nominal variable
the (c) Decrease, increase (d) Decrease, decrease 63. A quantitative variable that can assume an
lnd 53. is the most liquid of all assets. uncountable number of values is
(a)CaSh (b) Human resource called_.
(c) Transport department (a) Continuous variable
(d) Machines (b) Discrete variable
(c) Nominal variable
54. Accounts is a liability that.requires (d) Random variable
payment.
A

Receivable (b) Payable

(a) 64. sampling method that produces values

which systematicalllr differ from

the
55. Account are assets that wiII shortly population being sampled is called_.
convert into cash. (a) Sample
(a) Receivable (b) Payable (b) Random sampling merhod
56. On a balance sheet, assets are listed in the (c) Biased sampling merhod
order of _. (d) Un-biased sampling merhod
(a) Dollar amount (largest first) A is an implication of a word or a
(b) Date of acquisition (earliest first) `5 suggestion separate from the usual
(c) Ease of conversion to cash definition.
(d) Imponance to the operation of the business (a)- Denotation (b) Connotation
57. Following are basic part(s) of an (c) Definition (d) Quotation
account . 66. When one selects some facts and omits
(a) Title and left side (debit side)
(b) Title and right side (credit side)
others, one is _.
(a) Hiding facts
(c) Right side (credit side) (b) Abstracting
A&c
(d) (c) Briefing
58 The Ratios that calculate the average (d) Writing his own views
number of units production per employee is 67. are conclusions drawn from evidence.
called_. (a) Research (b)Rcfercncc
(a) Productivity rati<ls (c) Inferences
(b) Employee Unit Ratio (d)OpiniOn
(c) Average Ratio (d) None of the aboql
 106

68. A receiver's toward a message can 70. A tist of the elemenLs belonging to the
determine whether it is accepted, rejected, population from which the sample will be
-
distorted or avoided. drawn is called
(a) Opinion (b) Attitude (a) Population (b) Sampling fiame
(c) Values (d) a&b (c) Judgment samples (d) Probability samples
69. Credibility in the sender is important in
getting a response.
(a) Negative (b) Favorable

-
ANSWERS
c 2 d 3 d 4 5 6 c 7
8 b 9 d '10 C 11 a 12 b 13 b 14 b

15 c 16 17 b 18 C 19 b 20
22 23 b 24 b 25 b 26 a 27 a 28 b
29 d 30 a 31 a 32 b 33 a 34 d 35 b

36 a 37 a 38 c 39 a 40 b 41 a 42 b

43 b 44 C 45 b 46 c 47 b 48 b 49 c

50 51 d 52 b 53 a 54 b 55 56
57 d 58 59 b 60 d 61 b 62 b 63
64 65 b 66 b 67 C 68 b 69 b 70 b
 L07

SnrvlPLE Trsr - lV
A represents a set of market baskets 10. A

deliberate arrangement of people

where the well being of the consumer is the accomplish some specific purpose
-
same. called--.
(a) Supply curve (b) Demand curve (a) Organization (b) kacling
(c) Inditference curve (c) Controlling (d) Delegaiing
The is the slope of the in-difference 11. The reality that management is needed in all
curve at any point on the indifference map. types .and sizes of organization, at all
(a) Marginal rate of substitution organizational levels, in all organizational
- elasticity
(b) Price areas and in organization in all countries
(c) Unitary elasticrty around the globe is called_.
The slope of an indifference curve must be (a) Universality of management
(b) General management
(a) Negative (b) positive (c) Total management
(c) Flat (d) System management
4. Indifference curves must _ 12. The breakdown o[ jobs into narrow and
(a) Not Touch (b) Touch repetitive tasks is called
(a) Work break down
5. Consumers can afford only a subject of all (b) Division of labor
possible market baskets because each once (c) Scientific management
faces a (d) General management
(a) Budget constraints
(b) Indifference curve 13. The revolution which involves the advent of
(c) Marginal rate ol'substitution machine power, mass production and
efficient transportation is called
The shows which market baskets (a) Scientificrevolurion
the consumer can afford (b) Interdisciplinary revolurion
(a) Budget constraints (c) Industrial revolution
(b) Indifference
- curve (d) Entropy
(c) Marginal rate of substitution
14. The use of the scientific method to determine
7. The goal of the consumer is to maximize the 'bne best way,, for a job to be done is
utility while satisfying the called
(a) Budget constraints (b) Indifference curye (a) Scientific managemenr
(c) Marginal rate of substitution (b) Division of labor
8. The .-is the slope of the in-difference (c) Systematic management
curve at any point on the indifference map. (d) Work break down
(a) Marginal rate of substiturion 15. The use of quantitative techniqucs
(b) Price elasticity to
(c) Unitary elasticity (a) Quantitative approach
A popular measure of brand loyalty is (b) Qualitative approach
(a) Budget constraint (c) Research (d) Hawthorne studics
(b) Indifference curve

16 The field of study concerned with the actions

(c) Market baskets
(d) Relative frequency of purchase
(behavior) of people at work is called

(a) Psychology
(b) Organizarional behavior
 108

(c) Research (c) Probability sample

(d) Bureaucracy 35
(d) Stratified random sample
17. A series ofstudies during thc 1920s and 1930s
that provided new insights in individual and
25 A bar graphs with the bars arranged from
group behavior is called---_.
the rnost numerous category to ihe least 36
(a) Hawthorne srudies numerous category is called_.
(b) Maslow hierarchy of needs (a) Ordered diagram (b) pareto diagrarn
(c) Scientific management (c) Random diagram (d) Dotplot diagram
(d) Industrial revolution 26 The pattern of variability displayed by the
data of a variable. The distribution displays
18. A list of the elements belonging to the the frequency of each yalue of the varialle
population from which thc sample will be is
called
drawn is called
(a) Population (a) Pareto diagram (b) Distribution
(b) Sampling frame (c) Random diagram
(c) Judgment samples (d) Probability samples (d) Sample diagram
3
27. Financial statements are all based on the
19. Samples that are selectetl on the basis of
being typical is called
underlying transaction.
.
(a) Sample frames (b) probability samples (a)Samc (b)Dif rent
(c) Judgment samples (d) Biased samplin! 28 The term refers to enhancing the 3,
appearance of the enterprise,s financial
20 Samples in which thre slsm.r,s to be selected
statements by taking certain steps near the
are drawn on the basis of probability is end of the financial reporting p".ira.
called
(a) Window dressing (b) Dieising
1";'e.obubility samples (c)
(b) Judgmenr sampling Window appearance(d) False drissing
(c) Sampling frames (d) 29.
Biased sampling fhu relationship among balance shedt,
income statement and statement of cash
21: A sample selected in such a way that very flows is known as articulation.
element in the population has an equal
probability of being chosen is called (a)True (b)Falsc
(a) Judgment sample 30 The investment of cash in the business by the
(b) Simple random sarrple owners will cause a(n)
(c) Non random sample
.

in a(n) -.- in an assei and

in owners, equity.
(d) Sampling frame (a) Increase, increase (b) Inciease, decrease
22.
(c) Decrease, increase (d) Decrease. decrease
Simple random samples are obtained either
by sampling with replacement from a 31. The purchase of any asset on credit will
population or by sample ,nitfrout cause a(n) in the asset and an
replacement form an population. in a liability.
(a) Finite, infinire -.-
(b) tnfiniie, finite (a) Increase, increase (b) Increase, decrease
(c) Decrease, increase (d) Decrease, decrease
23. A sample in which every kth item of the
sampling frame is selected, starting from a 32. The cast payment of an account payable or
randomly selected flrrst element is called note payable wiII cause a ,- in ihe asset
(a) Judgmental sampling cash and a _ in the Iiability paid.
(b) Systemaric sampling (a) Increase, increase (b) Increase, decrease
(c) Probability sampling (c) Decrease, increase (d) Decrease, decrease
(d) Random sampling
33. The collection of an account receivable will
24. A sample obtained by stratifying the cause a(n) in cash and a in
sampling frame and then selecting a nxea account receivable.
number of times from each of the itrata by (a) Increase, increase (b) Increase, decrease
I".u": of. a simple random ,u*fii"g
tcchniques is called
(c) Decrease, increase (d) Decrease, decrease
34. is the most liquid of all assets.
(a) Non stratified sample --:-Cash
(a)
(b) (b) Human resource
Random sample (c) Transport department
(d) Machines
 109

35 Accounts is a liability that requires 47. Analysis in which economic or othcr

payment. statistical modetrs are built to identify the

Receivable (b) Payable

(a) costs and benefits associated with specilic

HR activities is called_.
36. Account are assets that will shortly (a) Utility analysis
convert into cash.
(a) Receivable (b) Payable (b) Economic Analysis
n
(c) StatisticalAnalysis
37. On a balance sheet, assets are listed in the (d) Cost and Benefit Analysis
, the order of
llays (a) Dollar amount (largest first) 48. An integrated system designed for- providing
rle is (b) Date of acquisition (earliest first) information used in HR decision making is
(c) Ease -.
of conversion to cash called_.
(d) Importance to the operation of the business (a) Integrated HR System
n
38.
(b) Human Resource Information Systerr
the culture. (c) MIS
(a) Culture (b) Message (d) HR Decision Making System
(c) Conventions
49. An organizational network that operates

39. can hinder ones verbal message. over the internct is called

(a) Culture and message (a) Organizational Web (b) Custr\m Made Web

(b) Eye contact and facial expression (c) Web Network Connection
(c) Conventions and eye contact (d) Intranet
(d) Time and space
50. An internet-linked network that allows
40. Concepts of : are culture specific. employees access to information provided by

called_.

(a) Eye contact and facial expression external entities is

(b) 7Cs and 5Ws (c) Time and space (a) Intranet
(d) None of the above (b) External Linked Intemet
(c) Extranet
41. The 7 Cs are correctness, conciseness, clarity,
(d) Employees Access System
'the completeness, concreteness, consideration
and and courtesy. 51, Individual performance factors hre
(a) True (b) False (a)Ability,effolt,Support
SC (b)Effort,Support,Ability
asc
42. AII seven C's can apply to both oral and
(C)Support,Ability,Effolt
written communication.
(a) True (b) (d)Nonc ofthe above
will . False

43. One way to complete the message is to

52. The desire within a prson causing that

answer
person to act is called_.
A. Motivation

( 7 Cs (b)5 Ws B. SelfMotivation
44. 5 Ws are who, what, when, where, and why. C. IntrinsicMotivation

(a) True (b)Falsc D. Alt of the above

Calculation showing the value of (a)A and B (b)B and c

45
(C)C and d (d)Only E

expenditures for IIR activities is called_.

(a) HR audit 53. Maslow's Hierarchy of needs are

(b) Return on Investment A. Physiological Needs

(c) Capitallnvestment B. Safety and security needs
(d) Profit or Loss C. Belonging and love needs
Se 46. A firm's net operating profit.after the cost of
D. Esteem needs
iSe capital is deducted is called
E. All of the above
(a) Economic value added (a)A and B (b)C and D
(c)D and E (d)Only E
(b)UtiHty Analysis
(C)Proflt (d) Return
 110

54. Herzberg's Motivation/ Hygiene Theory 63. For the equations in euestion 3l above, the
assumes following group of factors
(a) Motivators and Hygiene faclors
breakeven level of output is
(a) 30
_-
(b) 40
(b) Motivator and High Sakiry (c) 50 (d) 60
(c) High Salary and Conducivc Working 64. Consider Revenue, R(x) = -3x2 + 4gx and
Environment C(x) = 6x + l?,0t"then the profit function will be
(d) All of the above (a) profit = -3x, + 42x + I2O
(b) profit = -3xz + 54x + l2O
55. In the contcxt of llerzberg's Motivation/
Hygiene Theory, motivators
(c) profit = -3x2 + 42x _ I2O
(a) Accounts for high levels of job satisfaction (d) Profit = -3x7 + 54x - IZ0
and motivation 65. Taxation of the same income twice. A classic
(b) Conducive Working Environment example is taxation of income at the corporate
(c) Can cause dissatisfaction with work Ievel and again as dividend income when
(d) Motivators and Hygiene factors re+eived by the shareholder is called
(a) Depreciation (b) Accounti.g
56. An vegetable orchard charges Rs.25 to enter (c) Double Declining Method
and Rs. 60 a kilo for whatever is picked. The (d) Double taxarion
cost C as a function of the number of pounds 66. A business form that provides it owners
x of apples picked can be written as (called members) with coiporate style
(a) C(x) = 0.60x + O.2S limited
personal liability and the federal tax
(b) C(x) = 60x + 25 treatment of a partnership is called
(c) C(x) = 6x + 2.5 (d) C(x) 6Ox - 25 (a) Partnership (b) Sole propiietgrship
=
57. A firm has a fixed cost of Rs. 25000 (c) Limited liability company tr_i_Cj
and
variable costs per item manufactured is Rs. (d) Public Unlisred Company
85. The firm,s totsl cost. as a function of 67. The systematic allocation of the cost of a
output will bc capital asset over a period of time for
(a) Y=2500+85X (b) y=2500+85X
financial reportlng purposed, tax purposes,
(c) Y=2500-85X (d) y=25000+85X or both is called_
58. Consider the supply function and demand (a) Salvage Value (b) Interest
function respectively as follows and answer (c) tax (d) Depreciation
Earnings after
accordingly,
Supply: Q=-50+6p
68. A method of depreciation that allocates
expenses evenly over the depreciable life ot
Demand:Q=230-8p the asset is called
What is the equilibrium price (a) Double Taxation Method
(a) lo Gt 20 (b) Straight line depreciation
(c) 3o (d) 40 (c) Accelerated depreciation
59. For Question 5E, the equilibrium supply (d) Declining balance depreciation
quantity will be 69. Methods of depreciation that write off the
(a) 60 (b) 70 cost of a capital asset faster than under
(c) 8o (d) e0 straight line depreciation is called
60 For Question 58, the equilibrium demand (a) Accelerated depreciation
quantity will be (b) Double declining merhod
(a) 60 G) zo (c) Straight line depreciation
(c) 8o (d) 90 (d) Linear depreciation method

Profit = -.- 70. Thc_ marketing management philosophy that

(a) Revenue - Cost (b) Revenue + Cost holds that achieving organizational -goals
(c) Break even point depends on knowing the needs and wants of
target market and delving the desired
62. For Revenue, R(x) = 80x, total cost, satisfactions better than conrpetitors do is
C!1)-= 30x + 2000, then thc profit equation called--.
will be (a) Research
(a) Profit = 50x (b) Selling conccpr
(b) profir 2000 (c)
(c) Proflt = 50-2000x (d) profir = 50x _ 2000 Marketing concept (d) Service concepl
=
 ANSWERS
1 C 2 a 3 a 4 a 5 a 6 7
8 a 9 d 10 a 11 a 12 b 13 14

15 a 16 b 17 a 18 b 19 C 20 b
22 23 b 24 d 25 b 26 b 28
29 a 30 31 a 32 d 33 b 34 35 b
36 a 37 C 38 C 39 b 40 C 41 42
43 b 44 a 45 b 46 a 47 a 48 b 49 d
50 C 51 a 52 d 53 d 54 a 55 a 56 b
57 d 58 b 59 b 60 b 61 a 62 C 63 b
64 C 65 d 66 C 67 d 68 b 69 a 70

 15.

SnruPLE Trsr - V
The is a horizontal summation of all 9. Cultivating learning culture in which
individual consumer demand functions. organizational members systematically
(a) Budget constraints gather knowledge and share it with others in
-
(b) tndilference 16
curve
(c) Marginal rate of substitution
the organizations to achieve better
performance is called
(d) Market demand function (a) Knowledge management
2. A is the lowest price at which the (b) kaming management
consumer's quantity demanded is zero. (c) Virtual management
(d) Organic organization 17.
(a) Reservation price (b) Demand price
(c)-Supply price 10. A recognition of an inner life that nourishes
3 A reservation price is the lowest price at which and is nourished by meaningful work that
the consumer's quantity demanded is _. takes place in the context of community is
(a) Maximum (b)Mi mum called_.
(a) Workplace diversiry 18.
(c) Zero
(b) Human resource planning
4. When the price of Y changes and the (c) Psychological contract
quantity demanded of X changcs in the same (d) Workplace spirituality
direction, with the price of X hetd constant,
19.
X and Y are called 11. Cultures in which the key values are
(a) Substitutes intensely held and widely shared are
(b) Gross substitutes called--.
(c) Part of marker baskets (a) Positive culture (b) Negative culture
(c) Strong cultures (d) Weak culrure
5. The measures the average 20.
percentage change in the quantity of one 12. Outside institutions or forces that potentially
good relative to the average percentage affect an organizationrs performance is
change in the price of another. called
(a) Arc elasticity (a) External enyironmenr
(b) Cross arc elasticity of demand (b) Intemal environment
(c) Specific environment 21`
6 The change in quantity demanded of a (d) General environment
commodity due to the change in money
income is called the _ effect.
13. Broad external conditions that may affect the
(a)Indiffcrcncc organization is called
(b)InCome
(c) Budget (a) General environment
(b) Specific environmenr
7. The demand measures the average (c) Intemal environment
percentage change in the quantity demanded (d) Extemal environment
relative to the average percentage change in
-
income. 14. The degree of change and complexity in an
(a) Indifference curve of organization,s environment is called_.
(b) Budget (a) Extemal uncertainty 23
(c) Arc income elasticity of (b) Environmental uncertainty
(c) Internal certainty
8. The _ effect measure the change in the (d) Environmental certainty
quantity demanded of X due to a change in
the relative price of X with utility held
constant.
(a) Substitution effect (b) EngelCurve
 113

24. On the statement of cash flows, a company

15 The number of components in an
would report the purchase of machinery as
organization's environment and the extent of
cash used in
an organization's knowledge about its (a) Operating activities
environmental components is called (b) Financing activities
(a) Environmental simplicity (c) Purchasing activities
(b) Parochialism (d) Investing activities
(c) Environmental complexity

(d) Boundary spanning 25. Operating profitably causc a in

owners'equity.

1`. Displays the data of a sample by representing (a) Decrease (b) Incrcasc

each piece of date with a dot positioned along

called_.
a scale is
26. represents the price of goods sold and
(a) Pareto diagram (b) Dotplot display of services rendered to customers during the
(c) Sample diagram (d) Cluster diagram period
(a) Profit (b) Revenue
17. The value of the data that occupies the (c) Expenses (d) Net income
middle position when the data are ranked in
order according to size is called_. 27. The term mans the cost of the goods

and services used yup or consume dint he

(a) Mean

(b) Median

(c) Mode (d) Standard deviation process of obtaining revenues.

(a) Profit (b) Expenses

18. The _ is the value that occurs rnost (c) Net income (d) Debit
frequently in the data.
(a) Mean (b) Median 28. What are the categories of cash flows that
(c) Mode (d) Variance appear on a statement of cash flows?
(a) Cash flows from investing, tinancing, and
19. The number exactly midway between a service activities
lowest valued data and a highest valued data. (b) Cash flows from operating. production, and
The number calculated is called
internal activities
(a) Mean (b) Midrange
(d) Mode (c) Cash flows from financing. production, and
(c) Variance
growth activities
20. The difference in value between the highest (d) Cash flows from operating. investing,

and

value and the lowest valued pieces of data is linancing activities

called_. 29. The amount of rent expense reported on the

(a) Mid range (b) Range
(c) Mean (d) Mode income statement is_.
(a) The amount of cash paid fbr rent in rhe
21. The difference between the rlrst and third current period
quartiles is called (b) The amount of cash paid for rent in rhe
(a) Inter quartile range current period less any unpaid rent at the
(b) Quartiles end of the period
(c) Percentile (d) Mid quartiles (c) The amount of rent used up (incurrecl) in
22. Following are basic part(s) of an account_. the current period to help generate revenue
(a) Title and left side (debit side) (d) An increase in net income ,

(b) Title and right side (credit side)

30. As an author, when one thinks that the reader
(c) Right side (credit side)
will consider themessage favorable or neutral
(d) A&c
information, one can use the approach.
23. The _ system requires that equal dollar (a) Direct (b) Indirect
amounts of debit and credit entries be made 31. As an author, when one thinks that the
for every business transaction. reader will probability reach unfavorably to
(a) Double (b) Credit balance
the request or inl'ormation, one can use the
(c) Credit cash approach.
(a) Direct (b) Indirect
 114

32. As an author, when onc thinks that the 41. Avoidable absenteeism is called
reader will probability reach unfavorably to A. Voluntary Absenteeism
the request or information, one should not B. Unexpected Absenteeism
spring he main idea in the first paragraph. C. Involuntary Absenteeism
(a) True (b) Falsc (d) Expected Absenteeism
33. The news message is one of the most (a)A and B (b)B and c
difficult to write. (C)C and D (d)A and C
(a) Good (b)Bad (e)B and D
- important
34. The most positions in any business 42. Unavoidable absenteeism is called
message are the paragraphs. A. Voluntary Absenteeism
(a) Writing (b) Opening B. Unexpected Absenteeism
(c) Closing C. InvoluntaryAbsenteeism
(d) Opening and ckrsing D. ExpectedAbsenteeism
(a)A and B (b)B and c
35 One agrees fo a plan and agrces with a
person. (C)C and D (d)A and C
(a) True (e) B andD
(b) Falsc
43. Consider the equation 56x + 7y 91, what is
36. The pcrceived fairrress of what the person =
does compared with what the person receives the slope in the given equation.
iscalled_. (a)8 (b)-8
(a) Equity (b) Equality (c)7 (d) 7
(c) Justicc (d) Faimess 44. The value of the intercept in the equation in
37. Following theory that states that individuals Question 13 is .-

base decisions about their behaviors on their (a) 13

expectations that one or another alternate (c) 15
behavior is nrore likely to lead to needed or 45. Consider the equation l6y.
desired outcomes of the given equation is _
= 176. The slope

(a) Expectancy theory (a)11 (b)12

(b) Maslow Theory of Hierarchy of Needs (c) 13 (d) 14
(c) Herzberg Theory (d) Equity Theory
46.
38. Expectations which refer to employees,
::lillie ::Itl;littn s176. The x
:
beliefs that working harder will lead to
' performance are (c)2 (d) Does nor exisr
(a) Effort-performance expectations
(b) Expectancy linkage 47. For the equation a = y, the x and y intercepts

(c) Performance-Reward linkage

(d) None of the above None (b)0,0 56.
1,0 (d)0,1
39. considers individuals' experctations that
high performance actually will tcad to rewards
48. A firm has a rlxed cost Of Rs _7000 and
(a) Performance-Reward linkage variable cOst Of Rs. 600 Or each unit
(b) EfTort-performance expecrations pllilCtoWhatisthetotalcOstOfproduct15
57.
(c) Expectancy linkage
(d) Psychological Contract (a)14000 (b)15000
(c) 16000 (d)17000
40, Following are different types of absenteeism
A. Voluntary Absenteeism 49. A rm has a fixed cOst Of Rs. 7000 and
B. Unexpected Absenteeisnr variable cOst Of R. 600 10r each unit
do What the btt cO"Of produd 30
:
C. Involuntary Absenteeism 58
D. Expected Absenteeism
(a) AandB (a)17500 (b)18500
(b)B and c (c) 19500 (d)20500
(c) C andD (d)A and C
(e) B and D
 115

50 A lirm has a fixed .cost of Rs. ?000 and 59. A series of equal payments or rcceipts
variable cost of Rs. 600 for each unit occurring oyer a specified number of
product. What is the fixed cost? periods. In an ordinary annuity, payments or
(a)7000 (b)8000 receipts occur at that end of cach period; in
(C)9000 (d) 10000 an annuity due, payments or ,receipts occur
51. If y -
3000000 - 450000x , for tax purpose at the beginning of each pcriod is
the value y of a computer after x years. What called_.
will be the value of the conrputer after 3
(a) Present Value ([) Future Value
years? (c) Interest (d) AnnLrity
(a)1650000 (b) 1750000 60 An ordinary annuity whosc paymcnts or
(c) 1850000 (d) 1950000 receipts continue forever is called
52 For the equation in Question 2l above, what (a) Perpetuity (b) Annuity
is the salvage value after 5 years. (c) Present Value ('d) FutLrr.e Valuc
(a)650000 (b)750000 61. A rate of intercst quoted for a year that has
(c)850000 (d)950000 not been adjusted for frequency of
53. Consider thc. profit function, p = 52 - S + Z, compounding. If interest is compoundcd
where S=units sold and p - profit. What more than once a year, the effective interest
at is profit the organization will get for 5 units of rate will be higher than nominal rate. Such a
sales? rate is called_.
(a) 10
(a) Compound Interest
(b)11
(c) 12
(b) Effective annual interest
(d) 13
ln in (c) Amonization
54. An olTice machine worth Rs. 12000 (d) Nominal (stited) intercsr rare
depreciates in value by .Rs. 1500 a year.
Using linear or straight line depreciation, the 62. The rate of interest earned or paid after
valu.e V of the machines as a funciion f years adjusting the nominal rate for factors such as
lope t can be expressed as _. the number of compounding ;reriods per
(a) V(t) = 1200-1500t (b) V(r) = 12000-150t year is called_
(c) V(t) = 1200-150t (d) V(r) = 12000-1500t (a) Effective annual intercst rarc
(b) Compound Interest
5 The value at some futurc tirne of a present
(c) Amcrtization (d) Simple Inrercsr
amount of money, or a series of payments,
evaluated at a given interest rate is 63. A table showing the repaymcnt schedule of
called_. interest and principal nccessary to pay olT a
(a) Annuity (b) Present Value Ioan by maturity is called__.
(c) Future value or terminal value (a) Amortization sclredule
epts (d) Growth value (b) Liquidation Schedule
(c) Rate of Retum

The current value of a future amount of

money, or a series of payments, evaluated at (d) Interest Return
a given interest rate is called 64. The amount of money that could be realizcd
and (a) Annuity (b) Present value if an asset or a group of assets is sold
rnit (c) Future Value (d) Interest separately from its operating organization is
r15 57. Interest earned or paid on any previous called_.
interest earned, as well as on the principal (a) Amortization
borrowed or lent is called (b) Liquidation value
(a) Compound interest (c) Annual Interest Value
(b) Simple Interest (d) Compounded Value
nnd
rnit (c) Annuity (d) Present Value 65 The amount a firrn could be sold for as a
:30 58. Interest rate used to convert future values to continuing operating business is called_.
present value is ralled (a) Market Value
(a) Discount rate or capitalization rlte (b) Going concern value

(b) Interest (c) Intrinsic Value

(c) Inf'lation (d) Perpetuity (d) Face Value
 118

24. The _ news message is one of the

15. All constituencies with a stake in the fortunes
of the company. They include shareholders' most difficult to write
creditors, customers, employees, suppliers (a) Good (b) Bad
and Iocal and international communities in 25 If the value of price elasticity is equal to -1.,
'which
the firm operates is called the demand has unitary elasticity and a price
(a) Stakeholders change does not change
(b) Owners (a) Demand (b) Supply
(c) Consumers (c) Total revenue
(d) Government Agencies
26. If the value of price elasticity is between -1
16. Meeting the needs of the present without and 0, the demand is
compromising the ability of future (a) Price elastrc (b) Unitary elastic
generations to meet their own needs is called (c) Price inelastic
(a) Soldiering
(b) Satisfying 27. If the value of price elasticity is between -1
and 0, the demand is price inelastic and total
(c) Sustainability
revenue changes in the direction as
(d) Governance
the price change.
17. E-mail messages are short and often (a) Opposite (b) Same
(a) Informal (b) Formal 28. The purchase of any asset on credit will
18. At the core of is proper grammar, cause a(n) in the asset and an
punctuation, and spelling in a liability
(a) Correctness (b) Concreteness (a) Increase, increase
(c) Clearness (d) Conciseness (b) Increase, decrease
(c) Decrease, increase
19. As an author, when 6ne thinhs that the (d) Decrease, decrease
reader will consider the message favorable or
neutral information, one can use the 29, The cast payment of an account payable or
approach note payable will cause a _ in the asset
(a) Direct (b) Indirect cash and a _ in the Iiability paid.
(a) Increase, increase
20. unemployment always has a
(a) economic cost (b) Increase, decrease
(b) economic profit (c) Decrease, increase
(c) economic stability (d) Decrease, decrease
(d) economic advantage 30. The collection of an account receivable will
21. full-employment unemployment rate is also
cause a(n) in cash and a _ in
account receivable
called as _
(a) Increase, increase
(a) natural rate of unemployment
(b) Increase, decrease
(b) natural rate of employment
(c) Decrease, increase
(c) natural rate of cyclical unemployment
(d) Decrease, decrease
(d) natural rate of structural unemployment
31. is the most liquid of all assets
22. As an author, when bne thinks that the
reader will probability reach unfavorably to
(a) Cash
the request or information, one can use the (b) Human resource
annroach (c) Transportdepaftment
(a) Direct (b) Indirect (d) Machines
23. As an author, when one thinks that 32. The process of measuring and evaluating the
the
reader will probability reach unfavorably to results of marketing strategies and plans and
the request or information, one should not taking corrective action to ensure that
spring he main idea in the first paragraph. objectives are achieved is called
(a) True (b) False
(a) Marketing rerum
(b) Marketing control
 119

(c) Market evaluation 40 Methods of depieciation that write off the

(d) Market correction cost of a capital asset, faster than under
33. A set of interrelated and interdependent straight line depreciation is called

parts arranged in a manner that produce a (a) Accelerated depreciittion

unified whole is called (b) Double declining method
.(a) Open system (b) System (c) Straight line depreciation
(c) Process (d) Operation (d) Linear depreciation method
34. Systems are not influenced by or d o not
that 41. Methods of depreciation calling for an annual
interact with their environment is called a charge based on a fixed percentage of the
(a) Open system (b) Closed system assets depreciated book value at the beginning
(c) Process (d) OPeration of the year of which the depneciation charge
applies is called
35. Systems that dynamically interact with their (a) Declining balance depreciation
environment is called (b) Double declining method
1 (a) Open system (b) Closed system
(c) Straight line depreciation
al (c) Operation ' (d) Linear depreciation method
lS (d) Process
42. Cash distribution of earnings to stockholders,
36. An approach that says that organizations are usually on a quarterly basis is called
different and face different situations and (a) Cash dividend (b) Cash gain

require different ways of managing is called (c) tax (d) Bonus

Earnings after
(a) AnthropologY

(b) Contingency PersPectives 43. The amount by which the proceeds form the
(c) System persPective sale of a capital asset exceeds ( is less than )
(d) Systematic persPective the asset's original cost is called
(a) Capitalgain (loss) (b) Bonus
37. A business form that provides it owners (c) Earning After Tax
(called members) with corporate style limited (d) Cash gain
3r personal liability and the federal tax
et treatment of a partnership is called 44. All institutions and procedure for bringing
(a) PartnershiP buyers and sellers of financial instruments
(b) SoleproPrietorshiP together is called
(c) Limited liability company (LLC)
(a) Money Market (b) Prirnary Mtirket
(d) Public Unlisted ComPanY
(c) Financial markets (d) Secondary Market
45 The market for short term (less than one year
38. The systematic allocation of the cost of a original maturity) government and corporate
ill
capital asset over a period of time for debt securities, it also includes government
in financial reporting pur1rcsed, tax purposes, securities originally issued with maturities of
. or both is called more than one year but that now have a year
(a) Salvage Value or less until maturitY is called
(b) Interest (a) Primary Market (b) Money market
(c) Earnings after tax (c) Secondary market (d) FinancialMarket
(d) DePreciation Run:
46. Shout: WhisPer:: ?

39. A method of depreciation that allocates (a) Stay (b) Stand

expenses evenly over the depreciable
life of (c) Hop (d) Walk
the asset is called 47. Which one of the five mahes the best
(a) Double Taxation Method comparison? Son is to mother as nephew
is
(b) Straight line dePreciation to:

the
(c) AccelerateddePreciation (a)MOthCr (b)Aunt
and tal Declining balance depreciation (c)Daughter (d)Ncphcw
that
 120

48 trf you rearrange the letters "ANICH" you 59, Often the opening determines whether the
would have the name of a/an: reader
(a) Country (b)Ocean (a) Continues reading
(c) State (d)City (b) Puts the rnessage aside for later study
69

49. WoLF is10 FLOW as 8526istO: (c) Discard

(a)2856 (d) All of rhe above
(1))6258
(c)5862 (d)5682 60. Avoid a(n) --.- opening sentence"
50. The synonym of Naive is: (a)LTitating (b) Pleasant
(a) Strong (b) hnpressive "

70
(c) Arnusingly simple (d) private e.er attTi:t l
(e) Insinceri: (a) Opening (b) Closing
51. 'fhe synonym of knotty is: 62. The formal word for the word expect is
(a) Crossed (b)Twisted (a) Anticipate
(c)
(b) Ascertain --
Sensitive (d)Puzzling (c) Conflagration (rI) Deem
(e) Rope
63. One agrees /o a plan and agrees :`L a
52. The antonyrn of ,Vogue, is: person.
(a) Curent fashion (b) Inflammation (a) True (b)False
(c) Ola fashion (d) Dress
(e) Fashion
64. The medium used most often for written
messagesto persons outside the firm is the 72,
53 The Synonym of Vogue is
(a) Curent fashion (b) Inflammation (a) Business letter (b)Email
(c) Dress (d) Fashion (c) Pager (d)Sms
(e) Old Fashion
65. The perceived fairness of what the person 73`
54. Nestle means: does compared with what the person receives
(a) Cold and hot is called
(b) Settle comfortably and warmly (a) Equity (b) Equality
(c) Utiliry producrs (c) Jusrice (d) Fairness 74
(d) Large quantity 66. Following theory that states that individuals
(e) Feeling ofjoy base decisions about their behaviors on their
55. i\{oney can best be defined as expectations that one or another alternate
(a) Store of value behavior is more likely to Iead to needed or
75
(b) Unit of account desired outcomeb
(c) Medium of exchange (a) Expectancy theory
(d) All of the above (b) N{aslow Theory of Hierarchy of Needs
(c) Herzberg Theory
56. Money affects but does not affect (d) Equiry Theory
of other real variables.
67. Expectations which refer to employees,


(a) Steady state value, utility
(b) Utility, steady srate vhlue beliefs that working harder will iead to
performance are
57. reyenue collected because of issue (a) Effort-performance expectations
of money
by governnrent is known as (b) Expectancy linkage
(a)

Cause of inflarion (U) Hyp*r,flatlon (c) Performance-Reward linkage

(c) Seingniorage (d) None of the above
58. Often the determines whether the 68. _considers individuals, expectations that
reader continues reading, puts the message high performance actually will lead to 7
aside for later study or discard
rewards
(a) Opening (b) Closing (a) Performance-Reward linkage
(b) Effort-performance
"^p..tuiiom
 121

Expectahcy linkage 79. An vegetable orchard charges Rs. 25 to enler

Psychological Contract and Rs. 60 a kilo for whatever is picked. The
cost C as a function of the number of pounds
69. refers to how valuable the rervards are x of apples picked can be writtcn as
to the employee (a) C(x) = 0.60x + 0.25
(a) Output of the organization (b) C(x) = 60x + 25
(b) Psychological Satisfaction (c) C(x) = 6x + 2.5 (d) C(x) = 60x - 25
(c) Value of Rewards
(d) Performance of the Employee 80. A firm has a fixed cost of Rs. 25000 and
variable costs per item manufactured is Rs.
70 The unwritten expectations employees and 85. The firm's total cost as a function of
employers have about the nature of their output will be
work relationships is called (a) Y=2500+85X (b) Y=2500+85X
(a) Psychological contract (c) Y=2500-85X (d) Y=25000+85X
(b) Professional Relation
(c) Expected Relation (d) Workplace Relation 81. Consider the supply function and demand
function respectively as follows and ansrver
71. Values of the variables that divide he ranked accordingly,
data into quarters is called Supply: Q=-50+6P
(a)Iid rangc (b) Mean Demand:Q=230-8P
(c)Qualtilcs (d) Percentiles What is the equilibriurn price

(a) 10 (b)20
72. Values of the variable that divide a set of
ranked data into 100 equal subsets is called (c)30 (d)40
(a) Range (b) Quartiles 82. For QueStiOn 81, the equilibriunl supply
(c) Percentiles (d) Inter quartile quantity will be

(a)60
73. The numerical value midway between the

1011
first quartile and the third quartile is called (c)80
yes
(a) Inter quartiles (b) Mid quartile 83. For Question 81, the equilibrium demand
(c) Percentile (d) Mid range quantity will be

(a)60
The difference between the first and third

74.
quartiles is called (c)80
als
(a) Inter quartile range (b) Quartiles Profit =_
elr
(c) Percentiles (d) Mid quartiles (a) Revenue - Cost (b) Revenue + Cost
lte
(c) Break even point
Or 75 The position a particular value of x has
relative to the mean, measured in standard 85 The process whereby an individual or a
deviations is called group of individuals uses organized efforts
(a) Standard scorg or z-score and means to pursue opportunities to creatc
(b) Standard deviation value and grow by fulfilling wants and needs
(c) Percentile (d) Quartiles through innovation and uniqueness, no
matter what .resources are currently
)S' The mean of the data set which consists of controlled is called
to the five values 6,,813161 9 and 4 is (a) EntrepreneurshiP
(a)4 (b)6 (b) Intra preneurshiP
(c)8 (d)10 (c) Management
77. The rnedian ofthe data Set 6,5,4,3,2 is (d) kadership
(a)3 (b)4 86. A comprehensive term describing the way an
(c)5 (d)6 organization does 'its work by using

eleitronics linkages with its key constituencies

The mOde ofthe data set O,0,0,3,4,2,3,2,5 is

78

in order to efficiently and effectively achieve

(a)0 (b)2 its goals is called
(c)4 (d)5 (a) E-business (b)Intel nct
(c) Intranet (d)FILlid business
 122

87. An internal organizational comrnunication 93. David ranks seventh lrorn the top and
system that uses internet technolory and is from the bottom in a class. How
accessible only by organizational employees students are there in the class?
(a) Internet (a)36
(b) Fluid organizations (b)35
(c) Intranet (c)34
(d) Industrial revolution (d)CannOt be dctermincd
88 A philosophy of management that is driven (e)Nonc ofthe abOve
by customer needs and expectations and 94. Select the following rvhich is dift'ered fromr
focuses on continual improvement in work other with respect to alphtrhets
processes is called
(a)E8g (b)Acne
(a) Total quality managemenr
(C)Mothcr (d)Giddy
(b) Six sigma
(c) Knowledge management 95. Select from the following, which is different
(d) Project management from the others
(a) Great (b) Tleat
89. An organization that has developed the (c) Tear:s (d) Table
capacity to continuously learn, adapt, and (e) Later
change is called
(a) karning organization 96. Select from the following, which is different
(b) Fluid organization from the others
(c) Virtual organization (a) Reap (b)Rare
(d) Joint venture (c) Tore (d)Teal
(e) Pear
90 Cultivating learning culture in which
organizational members systematically gather 97. is also known as modifier.
knowledge and share it with others in the (a)Attcct e (b) Noun
organizations to achieve better performance is (C)V (d) Conjunction
called
98 A_____ haS three degrees fOr comparisOn.
(a) Knowledge management
(a) Adjective (b) Noun
(b) I-earning management
(c) Verb (d) Conjunction
(c) Virtual management
(d) Organic organization 99. Mr. Nusrat Fateh Ali Khan is more famous
many others.

A recognition of an inner life that nourishes

(a)Than (b)Thcn
and is nourished by meaningful work that
(c)Farthcr (d)Furthcr
takes place in the context o[ community is
called 100.IIis car his bettcr_____
many other cars
(a) Workplace diversiry in town.
(b) Human resource planning (a) Then (b)Than
(c) Psychologicalcontract (c) Best (d)Chcap
(d) Wortplace spirituality
92. represents the price of goods sold and
of services rendered to customers during the
period
(a) Profit (b) Revenue
(c) Expenses (d) Net income
28th
lany
ANSWERS
1. 2. C 3. b 4. 5. b 6. d 7.

8. C 9 b 10. a 11. a 12. 13. a 14. C

15 16. C 17. 18. a 19. 20. a 21.

22. b 23. a 24. b 25. C 26 27. b 28. tl

29. d 30. b 31 a 32 b 33. b 34 b 35. a

36 b 37. C 38. d 39. b 40 a 42. a

43. 44. C 45 b 46 d 47. b 48. a 49. b

50 b 52. C 53. 54 b 55 d 56.

57. 58. 59 d 60 a b 62. l 63.

64. a 66. 67. 68. a 69. C 70.

71 C `5.
72. C 73 b 74. 75 b 76. b 77. b
78. 79. b 80 d 81. b ,82. b 83. b 84. a

85 a 86 a 87. C 88. a 89 90. d

92. b 93. C 94. d 95 d 96 C 97 98. a

99. 100. b

 124

15

SnUPLE Tesr - Vll

1. The system by rvhich corporations are managed 7. Increase in the general level of prices in flre
and controlled, it encompasses the relationships economy is called as
among a companyrs shareholders, board of (a) Inflation (b)Deflation
directors and senior management is bcst 16.
dcscribed by 8. Decrease in the general level of prices in the
(a) Rules and Regulations economy is called as
(b) Corporate governance (a) Inflation (b)Dcnation
(c) Standard Operating procedures
(d) Board of Governance
9. is the result of excess aggregate
demand in the economy
2. A business form for which there is one (a) Deniand Pull Inflation
owner. This single owner has unlimited (b) Demand Pull Deflation 17.
liability for all debts of the firm. Such type of (c) Demand Push Inflation
business is called (d) Demand Push Deflation
(a) Sole proprietorship (b) partnership 10. The price elasticity of supply
(c) Private Lirnited measures the
(d) public Uniisted responsiveness of the quantity supplied to a
3. Business form in which two or rnore Change
individuals act as owners. In a general )PHce (b) Supply
partnership all partners have unlimitecl (c)Demand 18.
liability for the debts of the firm; in a limited
partnership one or more partners may have
ll. A _____
- 1
specifies the quantities of
different goods
limited liability is called (a) Market basket
(a) Partnership (b) Limited parrner (b) Supply funcrion
(c) Public Lisred (d) General partnership (c) Demand function
4. An integrated system designed for- providing 12. Individual performance factors are
information used in HR decision making is (a) Ability, effort, Support
called i (b) Effort, Support, Ability 19.
(a) Integrated HR Sysrem (c) Support, Abiliry, Effoft
(b) Human Resource Information System (d) None of the above
(c) MIS
(d) HR Decision Making Sysrem 13. The desire within a person causing that
person to act is called
5. An organizational network that operates A. Internal Motivation
over thc internet is called
(a) OrganizationalWeb
B. Motivation 20

(b) Custom Made

C. SelfMotivation
(c) Web Network
Web D. IntrinsicMotivation
(d) Intranet
Connection E. All of the Above
(a)A and B (b)B alld C
6. An internet-linked network that allows (C)C and d (d)Only E
employees access to information provided by 14. Member of a limited partnership not
external entities is called personally liable for the debts of the
(a) Intranet
partnership is called
(b) External Linked Inrernet (a) Limitea parrner (b) partnership
(c) Extranet (c) Sole propnetorship (d) public listed
(d) Employees Access System
 15. The two categories of stockholders, equity (c) Supply penetration
usually found on the balance sheet of a (d) Value delivery network
corporation are
(a) Contributed capital and long-term 22. The marketing logic by which flre business
liabilities. unit hopes to create customer value and
(b) Contributed capital and property, plant, and achieve profitable customer relationships is
equipment. called
he (c) Retained eamings and notes payable. (a) Marketing vision (b) Markering straregy
(d) Contributed capital and retained earnings. (c) Marketing vision
(d) Market segmentarion
16. A strategy for company growth by identifying
he and developing new market segments for 23. Dividing a market into distinct groups of
current company products is called buyers who have different needs,
(a) Market penerrarion characteristics, or behaviors, and who might
(b) Market development require separate products or marketiug
(c) Market segmentation programs is called
(d) Market grid (a) Marketing vision (b) Market behaviors
(c) Market segmentation
17, A strategy for company growth by offering (d) Market product programs
modified or new products to current market
segments is called 24. A group of consumers who respond in a
(a) Market development ' similar way to a given set of marketing
he
(b) Innovation efforts is called
tA (a) Positioning (b) Marker segmenr
(c) Diversification
(d) Productdevelopment (c) Differentiation (d) Diversity
18. A strategy for company growth through 25 The process of evaluating each market
starting up or acquiring businesses outside segment's attractiveness and selecting one o r
Of more segments to enter is called
the company's current products and markets
si called
(a) Positioning (b) Market targeting
(a) Diversification (c) Market segmentation
' (b) Vertical inregrarion (d) Differentiation
(c) Horizontal integration 26. Arranging for a product to occupy a clear,
(d) Backward inregrarion distinctive, and desirable place relativc to
19. Reducing the business portfolio competing products in the minds of target
by
eliminating products of business units that consumers is called
are not profitable or that no Ionger fit the (a) Positioning (b) Differenriarion
company's overall strategy is called (c) Segmentation (d) Integration
lat (a) Firing (b) Downsizing 27. Actually differentiating the market offering t
(c) Diversification (d) Development create superior custonrer value is called
'20. The series of departments (a) Integration (b) Differentiation
that carry out (c) Positioning
value-creating activities to design, produce, (d) Market position
market, deliver, and support a firm,s 28 The set of controllable tactical marketing
products is called product, price, place, and pronrotion -
(a) Value chain
tools -
that the firm blends to product the response it
(b) Supply chain wants in the targct markets is called
(c) Supply segmenrarion (a) Marketing mix (b) Ma*et control

(d) Downsizing (c) Market implementation

,21. The network made up of the company, (d) Positioning

suppliers, distributors, a4d, ultimately, 29. The process that turns marketing strategies
customers who partner with each other to and plans into marketing actions in order to
iniprove the 'performance of the entire accomplish strategic marketing ob,iectives is
system is best described by called
(a) Supply chain (a) Market inrplemenl.ation
(b) Supply straregy (b) Market actions


Market strategy

Marketing objectives 39. The reality that managernent is needed in
types and sizcs of organization,

at
30. Member of a partnership with unlimited organizational levels, in all organi
liability for the debts of the partnership is areas and in organization in all

called around the globe is called
(a) Generalparrnership (a) Universality of management
(b) Corporation (b) General management
(c) Sole proprietorship (d) public unlisted (c) Total management T
(r

A business form legally separate from its (d) System management

(r
owners. It s distinguishing features include 40. The breakdown of jobs into narrow 0
limited liability, easy transfer of ownership, repetitive tasks is called (
unlimited life, and an ability to raise large (a) Work break down (r
sums of capital is called (b) Division of labor
(a) Corporation (b) Limited company (c) Scientific management 48.
(c) Public Company (d) partnership (d) General management 1

32. Accounts is a liability that requires 41. The revolution which involyes flre advent
1

(
payment machine power, mass production and effici
(a) Receivable (b) Payable transportation is called
(

33. Account ,are assets that will shortly (a) Scientific revolution {

convert into cash. (b) Interdisciplinary revolution

(c) Industrial revolution 49. (

(a) Receivable (b) payable

(d) Entropy
34. On a balance shect, assets are listed in the
order of 42. The use of the scientirlc nlethOd tO deternine
(a) Dollar amounr (largest first) the "one best way,, for a job to be done i
50
(b) Date of acquisition (earliest first) called
(c) Ease of conversion to cash (a) Scientific management
(d) Importance to the operation of the business (b) Division of labor
(c) Systematic management
35. Following are basic part(s) of an account_ (d) Work break down
(a) Title and left side (debit side)
(b) Title and right side (credit side) 43. Writers who developed general theories of
(c) Right side (credit side) what mangers do and what constitutes good
(d) A&c management practice are known as
(a) Principles of managemenr
3`. The
-- system requires that equal dollar
arnounts of debit and credit entries be made
(b) Administrative
(c) General administrative theorists
for every business transaction. (d) kaders
(a) Double (b) Credit balance
(c) Credit cash 44. Fundamental rules of management that 53.
could be taught in schools and applied in all
37. On the statement of cash flows, a company organizational situations is called
would report the purchase of machinery as (a) Principles of management
cash used in
(a) Opemting activities (b) Bureaucracy 54.
(b) Financing acriviries (c) Adminisrrations
(c) Purchasing activities (d) Workforce diversity
(d) Investing activities
-f9.-ofoflabor,
45. organization characterized by
{diyision
38. A deliberate arrangement of people to a clearly defined hierarchy,
accomplish some specific purpose is called detailed rules and regulations and
impersonal relationships is called 55
(a) Organization (b) Irading
(c) Controlling (a) Bureaucracy (b) Nationalism
(d) Delegating
(c) Pnvacy (d) Hypocrisy
 127

46 The use of quantitative techniques to 56. A firm has a fixed cost of Rs. 7000 and

improve decision making is called variable cost of Rs. 600. for each unit

(a) Quantitative approach product. What is the fixed cost?

(b) Qualitative approach (a)7000 (b)8000
(c) Research (C)9000 (d)10000
(d) Hawthome studies
57. If y= 3o00000-450000x ,for tax purpose
47. The field of study concerned with the actions the value y of a cornputer after x years.Vhat
(behavior) of people at work is called will be the value of the computer after 3
(a) Psychology years?
(b) Organizational behavior (a) 1650000 (b)1750000
(c) Research (c) 1850000 (d)1950000
(d) Bureaucracy 58. For the equation in Question 57 above, what
48. A series of
studies during the L920s and is the salvage value after 5 years.
1930s that provided new insights in (a)650000 (b)750000
individual and group behavior is called (c)850000 (d)950000
tof (a) Hawthorne studies 59 A sample obtained by sampling some of but
ient (b) Maslow hierarclty of needs not all of, the possible subdivisions within a
(c) Scientific management population is called
(d) Industrial revolution (a) Random sample (b) Cluster sample
49. Consider the equation 56x + 7y =91, what is (c) Stratified sample (d) Ordered sample
the slope in the given equation. 60 A bar graphs with the bars arranged from
(a)8 (b)-8 the most numerous category to the least
llne (c)7 (d) 7
numerous category is called
e ls
50. The value of the intercept in the equation in (a) Ordered diagram (b) Pareto diagram
QueStiOn 13 is
(c) Random diagram (d) Dotplot diagram
(a) 13 (b)14 61. The pattern of variability displayed by the
(c) 15 (d)16 data of a variable. The distribution displays

Consider the equation 16y = 1.76. The slope the frequcncy of cach value of the variable is
of the given equation is called
(a)11 (b)12 (a) Pareto diagram (b) Distribution
(c) 13 (d) 14 (c) Random diagram (d) Sample diagram
52. consider the equation 16y = 176' The x 62. Displays the data of a sample by representing
intercept in the given equation is- each piece of date with a dot positioned along
(a)0 (b)1 a scale is called
(c)2 (d)Does not cxist (a) Pareto diagram (b) Dotplot display
(c) Sample diagram (d) Cluster diagram
that 53. For the equation = the x and y intercepts
x y,
l all
are 63. The value of the data that occupies the
(a) None (b)0,0 middle position when the data are ranked in
(C) 1,0 (d)0,1 order according to size is called
54. A firm has a fixed cost of Rs. 7000 and (a) Mean (b)Median
variable cost of Rs. 600 for each unit (c) Mode (d)Standard deviation
product. What is the total cost of product 15 64. The is the value that occurs most
units? frequently in the data.
by (a)14000 (b)15000 (a) Mean (b) Median
chy, (c) 16000 (d)17000 -
(c) Mode (d) Variance
and
55. A firm has a'fixed cost of Rs. 7000 and 65 The number exactly midway between a
variable cost of Rs. 600 for each unit lowest valued data and a highest valued data.
product. What is the total cost of product 30 The number calculated is called
units? (a) Mean (b) 4idrangc

(a)17500 (b)18500 (d)MOdC

(c) Variance
(c) 19500 (d)20500

 128

66. The difference in value between the highest 79. Our wages tugh.
value aud the Iowest yalued pieces of data is
(a)Arc (b)IS
called --
(a) Mid range 80. The pOlice not corrupt.
(b)Range
(c) Mean (d)NIIode (a)Are (b)Is
67. The mean of the absolute values of the 81. She is_____ happy today. 93.
deviations from the mean is called (a)Very (b)Too
(a) Mid range 82.
(b) Mean absolure deviation
;l;Fes______avett,1 tliCkground. 94.
(c) Range (d)Mode (C)With
68. Values of the variables that divide he ranked 83. She is____thiS COn nlittee.
data into quarters is called (a)On (b)In 95.
(a) Mid range (b) Mean 84. Unprising is c10sest tO
(c) Quartiles (d) Percentiles
(a)Untruthflll (b)Chcap
69. A firm's net operating profit after the cost of (c)RebelliOn (d)Simplc 96.
capital is deducted is called 85.
(a) Economic value added
This is the _.-- building.
(a)Tallest (b)Taller
(b) Utility Analysis'
(C)Tall (d)Slllallcr
(c) Profit
(d) Return 86 She said that she was not happy.
(a) Farther (b) Further
70. Analysis l,.r which economic or other (c)Either (d)Neither
statistical modcls are built to identify the
costs and henefits associated with specific
87. Clorida is taller than Ivory. Ernily is taller
than Lovely. Lovely is taller than Enamol. To 97.
ItrR activities is called
(a) Utility analysis (b) Economic Analysis determine who among them is the tallest,
(c) Statistical Analysis lvhich of the following further information, if
(d) Cost and Benefit Analysis any, is required?
(a) Clorida is taller than Enarnol ancl Lovely
71. she said that she was not happy. (b) No further infbrmation is neecterl
(a) Farher (b) Further (c) Emily is raller Ivory
(c) Either (d) Neither (d) Clorida is taller than Lrlvely
72.
(e) Enamol is taller than Clorida
We have not gone there .- a long,time
(a) For (b) Since 88. Four of the. following five are similar in a
definite way and so form a group. Which one
73. She has becn here afternoon. of them does not belong to the group?
(a) For (b) Since (a) Umbrella (b) Gloves
74. He said he (C)Shirt (d)Sh()es
(a) Owns -- a house.
(b) Own (e)Cap
(c) Owned 89. There are 26 steps in a Churcho ln the tinle
75. Sandy cOmes dOwn twO steps,PlatO goes One
He is not criminal in the _- of the law.
step. If they start silnultaneOusly and keep
(a)Eyc (b)Eyes
(C)Book their speed uniform,then at which step from
(d)Books
bottOm will they nleet.
76. He will his exams. (a)9 (b)121h
(a)Givc (b) Give care (c) 13dl (d)8tll
(C)Takc (d) Take care (e)NOne Ofthc abovc
77. The synonym of ,,to vanquish,, is 90 ln certain cOde Language the wOrds
(a)To harm (b) To conquer ROUTINE is written as vpIRGFLI.HOw
(C)To vary (d) To be ungreatful wili the wOrd cRUELTY be written in that
78. All his code languagel
are of a bad quality.
(a)Chair (b) (a)VOCVZRL (b) /PCVZRL
Chairs
(C)VPCVZRL (d)vPVCZRL
(e)None ofthe abOve
 129

91. We have not gone there _ a long time (d) Stop your vehicle and say somy
(a) For (b) Since (e) None of the above
.92. She has been here afternoon. 98. Generally a patient of tuberculosis visits the
(a) For (b) Since hill stations because
(a) They are advised by the Physicians to do
He said he a house.
sc)
(a) Owns (b) Own
(c) (b) It is pleasure to enioy the environment
Owned
(c) Atmospheric pressure decreases with the
94. height from the sea level
(a)Eye (b) Eyes (d) Cold weather is favoiable for the patienrs
(c)Book , (d) Books of tuberculosis
(e) None of the above
95. He will his exams.
(a) Give (b) Give care 99. . Ice floats on water because
(c) Take (d) Take care (a) It is spongy
(b) It is trans parenr
96. You have been asked to appoint a personal
(c) It is an element which tnelts easily
secretary. Which of the following quality
(d) Its weight is less than'the weight of warer
would you consider as most important?
(a) She must have good experience of equal volume
(e) None of the above
(b) She rnust have an imposing personality
(c) She must be highly edr:cated 100. At midnight, you heard the voice of several
(d) She must be an efticient stenographer people shouting "hre". Which of the
(e) None of tlre above following you would do?
er (a) Ensure where the fire had taken place and
Io 97. While riding on a scooter, you find to what extent
st, someone has been hurt by your scooter. (b) Continue to sleep till yolr are callecl for
if Which of . the following will be your (c) Rush out of the room with buckets ol:water
responsibility? to extinguish the fire
(a) Pay compensation fbr the injury and try to (d) Rush to the fire brigade sration and inlorm
dispose the matter the otficials about tlre fire
(b) Try to run away fionr the spot immediately (c) None of the above
(c) Take him to the Doctor and arrange for the
medical aid

ANSWERS

I b 2 3 4 b 5 d 6 C 7
8 b 9 10 11 a 12 13 d 14
15 d 16 b 17 d 18 a 19 b 20 21 d
22 b 23 c 24 b 25 b 26 27 b 28

29 a 30 a a 32 b 33 34 C 35 d
36 a 37 d 38 a 39 a 40 b 41 42 a

43 44 45 46 47 b 48 49

a a q
b

50 a 52 d 53 b 54 55 a 56
57 a 58 b 59 b 60 b 61 b 62 b 63 b
64 c 65 b 66 b 67 b 68 69 a 70
71 b 72 73 b 74 C 75 b 76 77

ls 78 a 79 a 80 a a 82 a 83 a 84 C

N 85 86 b 87 88 a 89 a 90 C 1

rt 93 94 b 95 96 97 98
92 b a c c
99 d 100 a
 130

17.

SavIPLE TEsT - VIII 18.

l. The term means the cost of the goods (d) Speedy communicarion
and services used yup or consume dint he 8. A man jumped
process of obtaining reyenues
_ the river.
(a) In (b)Inside
(a) Profit (b)Expcnses
(c) Net income
(C) IntQ (d)On
(d)Debit
9, He took

smoking when he was quite

What are the categories of cash flows that

young
appear on a statement of cash flows?
(a) Cash flows from investing, financing, (a)Up (b)On
and 20.
service activities
(C)To (d)OVer
(b) Cash flows from operating. production, and 10
1la 9tput_Wth ndsy peOple.
internal activities (a)0 (b)On
(c) Cash f'lows from financing, production, and (C)Up (d)Out
growth activities
llo Current fashion
(d) Cash flows from operating, investing, and
(a)InflammatiOn (b)01d fashiOn
financing activities 21.
(C)Vogue (d)Dress
0
3. The amount of rent expense reported on the (e)Fashion
income statement is
(a) The amounr of cash paid for rent in 12. Typical business cycle has the following,
the pattern.
current period
(a) Recession, trough, peak, recovery
(b) The amount of cash paid for rent in the (b) Peak, recession, trough, recovery
current period less any unpaid rent at the 22.
(c) Trough, peak, recession, recovery
end of the period
(c) The amount of rent used up (incurred) in (d) Recovery, trough, recession, peak
the current period to help generate revenue 13. is the result of insufficient aggregate
(d) An increase in net income demand in the economy.
(a) Frictional unemployment
4. If you wanted to know what accounting rules 23.
a company follows related to its inventory, (b) Structural unemployment
where would you look? (c) Cyclical unemploymenr
(a) The balance sheet 14.
(b) The income statement (a) Frictional unemployment 24.
(c) The notes to the financial statements (b) Structural unemployment
(d) The headings to the financial statements (c) Cyclical unemployment
5. What finanbial statement would you look at 15 full-employment unemployment rate is also
to determine the total expenses of a business? called as
(a) Income statement (a) Natural
(b) Statement of retained eamings -- rate of unemployment 25

(b) Natural rate of employment

(c) Statement of cash flows (c) Natural rate of cyclical unemployment
(d) Balance sheet (d) Natural rate of structunrl unemployment
6. Not all cash payments.represent expense 16 unemployment always has a _
(a) True (b)False (a) Economic cost (b) Economic profit 26.

7. Foible is: (c) Economic stability

(a) A defect of characrer (d) Economic advantage
(b) Musical instrument 27.
(c) A review of constitution

17, Increase in the general level of prices in the 28. Telegrarns, cablegrams and radiograms
economy is called as save_
(a) Inflation (b) Deflation (a) Money (b) Time
(c) A&b
18. Decrease in the general level of prices in the
economy is called as
29. A positive emotional state resulting from
(a) Inflation (b) Deflation evaluating one's job experience is called
(a) Psychological Contract
19 GNP stands for (b) Professional Relation
(a) Great National Production (c) Job Satisfaction
(b) Gross National Product (d) Workplace Relation
(c) Gross National Price
(d) Great National 30. The degree to which employees believe in
Price
and accept organizational goals and desire to
20 means alternating periods of remain with the organization is called
prosperity and depression. (a) Organizational loyalty
(a) Business Cycle (b) Organizational Commitment
(b) Business Loop (c) Organizational behaviour
(c) Product Life Cycle (d) Organizational work ethics
(d) Product Life Loop 31. Following are different types of absenteeism
21. Typical business cycle has the following A. VoluntaryAbsenteeism
pattern. B. Unexpected Absenteeism
(a) Recession, trough, peak, recqvery C. Involuntary Absenteeism
(b) Peak, recession, trough, recovery D. ExpectedAbsenteeism
(c) Trough, peak, recession, recovery (a) AandB (b) B andC
(d) Recovery, trough, recession, peak (c) CandD (d) A and C
(e) B andD
22. is the result of lnsufficient aggregate
demand in the economy.
32. Avoidable absenteeism is called
(a) Frictional unemployment A. Voluntary Absenteeism
(b) Structural unemployment B. Unexpected Absenteeism
(c) Cyclical unemployment C. Involuntary Absenteeism
D. Expected Abscnteeism
23. is the result of changes in technologr. (a) AandB (b) B and C
(a) Frictional unemployment (c) CandD (d) AandC
(b) Structural unemployment (e) B andD
(c) Cyclicalunemployment
33. Unavoidable absenteeism is called
24. The medium used most often for written A. Voluntary Absenteeism
messages to persops outside the firm is the B. Unexpected Absenteeism
C. Involuntary Absenteeism
(a) Business letter (b) Email D. ExpectedAbsenteeism
(c) Pager (d) Sms (a) AandB (b) B and C
25. Most business letters have seven standard (c) CandD (d) A and C
parts which are heading, inside address, (e) B andD
salutation, body, complimentary close, 34. Which of the following approaches are used
signature area, reference section ascontrolling absenteeism approaches
(a) True (b) False (a) Disciplinary approach
26. Telegrams can send a message within a (b) Positive reinforcement & Combination
(a) Province (b) Country approach
(c) Continent (C) "No fault" absenteeism & Paid Time-off
prograrns
n. Cablegrams and radiograms can send a
messagewithin a (d) All of the above
(a) Province (b) Country
, (c) Oversees
35. The median of the data set of 6,5,4,3,2,0 is Consider the supply functiOn and demand
functiOn respectively as f01lows and answer
(a) 3.5 (b)3
accordingly,
(c)4 (d)4.5
Supply: P=3Q+10 56.
36. The mode of the data set 0,4,5,6,7,1.,3 is Demand:P-1/2Q+80
(a)0 (b)1 46. What is the equilibriunl price?
(c)2 (d)None
(a)60 (b)70
37. The midrange of the data set 3,3,5,6,8 is (c)80 (d)9o
(a)5 (b)5.5 57.
47. For QueStiOn 46, the equilibrium supply
(c)6 (d)6.5 quantity will be____.
38. The range ofthe data set 3,3,5,6,8 is (a)10 (b)20
(a)5 (b)6 (c)30 (d)40
(c)7 (d)8 48. Fo QueStiOn 46, the equilibrium demahol l

39 The range Ofthe data set O,1,2,3,4,5,6 is quantity wiu be F 1

(a)4 (b)5 (a)10 (b)20 1 (

(c)6 (d)7 (c)30 (d)40 1

40. consist of the values of two different 49. F
variable that are obtained from the same
population element.
:ueSti
n 46, the equilibrium quantil

(
(a) Bivariate dara (b) Random data l:}:: {:}:: 11
(c) Biased data ' (d) Unbiased data
50 The market for relatively long term ( greater
41. A plot of all the ordered pairs of bivariate than one year original maturity) financial

r data on a coordinate axis system is called instruments is called

(a) Paretodiagram (b) Scarterdiagram (a) Money Market (b) Capital market

(c) Cluster diagram (d) Random diagram (c) Secondary market (d) Financial Market

42. For Revenue, R(x) = 80x, total 51. Bonds and stocks are example of

cost,
C(x) - 30x + 2000, then the profit equation (a) Secondary market (b) Financial Market

will be (c) Money market (d) Capital marker
(a) Profit = 50x
(b) Profit = 2000 52. A market where new securities are Al
and sold for the first time is called
(c) Profit = 50 - 2000x (a) Secondary market (b) Financial Market a
(d) profit 50x - 2000
= (c) Money market (d) Primary market
43. For the equations in euestion 42 above, the
53. A market for existing (used) securities (a)
breakeven level of output is
(a) 30
_ than new issue is called (C)
G) 40 (a) Secondary market (b) Financial Market
(c) so (d) 60 (c) Money market (d) Secondary
44. Consider Revenue, R(x) - -3x2 + 4gx and 54. Financial institutions that accept
C(x) = 6x + 120, then the profit function
from savers and use those funds to
will be
loans and other financial investments in
(a) Profit =-3x2 + 42x+ 120
(b) profit =-3xz + 54x+ 120 own name are best come under the
(c) profit = -3 x2 + 4Zx _ l2O of
(a) Banks
(d) Profit =-3xz + 54x- IZO
(b) Financial intermediaries
45. For the equations in euestion 44 above, the (c) GovernmentOrganizations

breakeven level of output is _ (d) Investment Companies ,'

(a) 4 or 10 (b)5 or 10 55 A financial institution that

unde
(c)4 or ll (d)5 orll

(purchases at a fixed price on a fixed

(a) Investment banker

(b) Government Organizations
 133

lnd Investment Companies

er
(c) Understatement of expenses and liabilities
Mortgage Institute and an overstatement of stockholders'
56 The indicates that expenses should be equity
recognized in the period(s) that the (d) Understatement of assets and stockholders,
expenditure helps to produce revenue. equity
(a) Matching principle 62. The net return from a marketing investment
(b) Double entry sysrem divided by the costs of the marketing
57. Aafaaq Corporation reported the foltowing investment is best described by
ply (a) Return on marketing investmenr
amounts at the end of the first year of
operations, Decemtrer 31, 2010: contributed
(b) Profit
capital $50,000; sales revenue g200,000; total
(c) Loss
assets $150,000; 910,000 dividends; and totat
(d) Demand
liabilities $80,000. Retained earnings and 63. The actors and forces outside marheting hat
total expenses would be
(a) Retained earnings $20,000 and cxpenses 3ffgct marketing managements ability to
build and maintain successful relationships
$170,000 with target customers is best described by
tity (b) Rctaincd carnings s30,000 and expenses (a) External environment
$160,00o : (b) Marketing environment
(C) Rctaincd cahings,70,000 and expenses (c) Microenvironment
$120,00o (d) Macroenvironment

(d) Retaincd camings $80,000 and expenses 64. The actors close to the company that affect

$110,000 its ability to serve its customers - the

58 The government regulatory agency that has company, suppliers, marketing
the legal authority to prescribe financial intermediaries, customer markets,
reporting requirements for corporations that competitors, and publics is called
sell their securities
in interstate commerce is (a) Macro environment
the (b) Microenvironmenr
(a)FASB (b)FTC (c) External environment
(C)SEC (d) Internal environment
(d)APB
ght 59. An examination of the financial statements of 65 The larger societal forces that affect the
a business to ensure that they conform with microenvironment-demographic, economic,
generally accepted accounting principles is natural, technological, political, and cultural
called forces is called
her (a) A certification (b)An audit
(a) Micro environment
(c) A verification (b) Intemal environment

(d)A validatiOn l
(c) Extemal environment
One of the disadvantages of a corporation (d) Macro environment
when compared to a partnership is tliat
(a) The srockholders have limited liability 66. Firms that help the company to promote,

G) The stockholders are treated as a separate sell, and distribute its goods to finals buyers

legal entity from the corporation are called

(c) The corporation and its stockholders are (a) Marketing intermediaries
subject to double taxation (b) Distributors
(d) The corporation must account for the
(c) Whole sellers
business's transactions separate and apart (d) Public
from those of the owners 67. Any group that has an actual or potential
Failure to
make an adjusting entry to interest in or impact on an organizationrs
ites recognizb accrued income tax-es payable ability to achieye its objectives is called
ate) would cause an (a) Distributors
(a) Understatement of expenses, liabilities and (b) Public
stockholders' equity (c) Whole sellers
(b) Overstatement of expenses and Iiabilities (d) Extemal environment
 134

68. The study of human populatlon ln terms of (c) Internal environment 84. I
size, density, locationr Bgr gender, race, (d) Extemal environment (
occupation, and other statistics is called (
(a) Human measurement 76. The degree of change and complexity in an
,(
(b) Human resource organization's environment is called
(
(c) Diversity (a) External uncertainty
(d) Demography (b) Environmental uncertainty (

(c) Internal certainty 85.

69. The view 'that managers aredirectly (d) Environmental certainty
t
I
responsible for an organization,s success or
failure is called 77. is the result of excess aggregate
(

(a) Workplace culture demand in the economy

(b) Omnipotent view of management (a) Demand Pull Inflation :

(c) Iradership (b) Demand Pull Deflation

(d) Symbolic view of management (c) Demand Push Inflation
(d) Demand Push Deflation
70 The view that managers have only a timited
effect on substantive organizational outcomes 78. Cost push is also known as
becarse of the large number of factors outside (a) supply side inflation
their control is called (b) supply side deflation
(a) Symbolic view of management (c) demand side inflation
(b) Omnipotent view of management (d) demand side deflation
(c) Extemal management 79. Cost push is rnostly the result of factors that
(d) Environmental management
per unit production costs.

A system of shared meaning within an (a) Increase (b) Decrease ,

organization that determines, in large degree, (c) Keep stable

how employees act is called
(a) Organizational culture
80. Fundamental objective of any monetary
policy is _
(b) Psychological contract (a) Employment with inflation
(c) General environment (b) Employment without inflation
(d) Spesific environment (c) Employment with deflation
88
72. Cultures in which the key values are (d) Employment lvithout deflation
intensely held and widely shared are called 81. Money can best be defined as
(a) Positive culture (b) Negative culture (a) Store of value
(c) Strong cultures (d) Weak culture (b) Unit of account
73. Outside institutions or'forces that potentially (c) Medium of exchange
affect an organizationts performance is (d) All of the above
called The number of
(a) External environment
82. components in an
organization's environment and the extent of
(b) Internal environment an organization's knowledge about its
(c)' Specific environment
environmental components is called
(d) General environment (a) Environmental simplicity
74. The part of the environment that is directly (b) Parochialism
relevant' to the achievement of an
(c) Environmental complexity
organization's goals is called (d) Boundary spanning
(a) Intemalenvironment 83. Any constituency in the environment that is
(b) Specific environment affected by an organization's decisions and
90

(c) Generalenvironment policies and that can influence the

(d) External environment organization is called
75 Broad external conditions that may affect the (a) Stakeholders (b) Consumers
organization is called (c) Stockholders (d) Employees
(a) General environment
(b) Specific environment
 135

Interactlng ln speclfic ways with various 91. From 1940 to 1970, the amount of food
external stakeholders to gather and production per worker and per hour
mplexity disseminate important information is called increased two fold. From 1970 to 2000, food
In l
called
(a) Boundary spanning production per worker and per hour
(b) Call center increased one and a half times.
(c) Intemet (d) Intraner (a) Each of the following, if true, could help ro
account for this trend except (a) More
Arecognize
narrow view of the world; an inability to
differences between people is
workers were needed to produce the same
unit of output
called .' (b) The number of farm workers increased
(a) Parochialism (c) The number of hours worked per unit of
(b) Ethnocentric attitude output decreased
(c) Psychological contract (d) The use of chemical fertilizers decreased
(d) Boundary spanning (e) None of the above

The parochialistic belief that the best work
approaches and practices are those of the
home country is called
(a) Egocentric attitude
(b) Polycentric attitude
(c) Ethnocentric attitude
i factOrs (d) Geocentric attitude
S.
87. The view that the managers in the host
Se
, country know the best work approaches and
: practices for running their business is called
i (a) Geocentric attitude
i tUi Parochialism
(c) Ethnocenrric attitude
i, (d) Polycentric attitude
88. A world oriented view that focuses on using
r in the field. Dogs which also feed on mice are
,, ' he best approaches andI people from around
the globe is called
(a) Polycentric attitude
(b) Ethnocentric attitude
(c) Geocentric attitude
(d) Boundary spanning
111 ,
A company that maintains
e extent
operatiOns in lnultiple countries but rnanages
abOut l
l them from a base in the home country is
I
called
.(a)Multinational corporation(NINC)
(b)Transnational corpOration(TNC)
(C)Bordcrlcss company
l(d)Virtual cOmpany
92. in 1985, all drivers had to wear
Starting
if they have to drive a two wheeler.
helmets
From which of the following can this
statement be properly inferred?
(a) Some drivers may have worn helmets
before 1985, but all two wheeler drivers
were required to wear them beginning in
1985
(b) NO drivers had to wear helmets before 1985
(c) Two wheelers drivers were the first to be
required to wear helmets
(d) Two wheelers drivers had to wear helmets
prior to 1985
(e) None of the above
93. Snakes and hawks are the predators of mice
bought on the scene. What will be the
immediate result?
(a) Increase in the number of snakes
(b) Decrease in the number of snakes' and
hawks
(c) Decrease in the number of mice
(d) Decrease in the number of dogs
sig cant (e) None of the above
94 Average family income in the cities has
increased today as compared to the last few
years, as in most families these dayr'
husbands and wives are working. Thls
sentences implles all the following except
(a) Family inconp level was lowgr few years
8go

:A cOmpany that IIlalntainS sig cant G) Wives eam more than husbands today
(c) It was more prevalent for one spouse to
l 1 nini ' work earlier than today
lo61ntry is called . (d) More husbands and wives are working
(a)Muldna ond Corporadon(NINC) today as compared to last few years
:.(b)Transnational corporadon(TNC) (e) None of the above
(c) Borderless company
(d) Virtual company
 136

95. Team sports like cricket, display socialist 97. ln l970,the average child visited the dentist
tendencies in their requirements of once a year. By 1990 the number
of visits
individual suborclination to ihe authority increased to two. Today, the average
of child
coaches and managers. visits the dentist three times a year.
Each of
the following, if true, could explain this
Which of the following conclusion may not trend
except.
be inferred from the above information?
(a) All team sports have socialist tendencies (a) Better home care of teeth has reduced
the.
(b) All team sports are authoritarian number of cavities
(c) Without employee subordination (b) Dentist fee have declined over the period
ro (c) Parents are more aware of the importance
managerial authority, production for profit
of dental care
would not be possible
(d) All team players are (d) Dental care has become less painful
subordinate to their (e) None of the above
conches

96. in
98. A -_- has three degrees for comparison.
l.f ,,,r. .ollegl hostel mess, you find that (a) Adjective (b) Noun
the vcgetable curry being serveh for the
last (C)Verb (d) Conjunction
ten da1's is having a lot oi stones and you
are
t'ed up u ith it. What will you do? 99, Mr. Nusrat Fateh Ali Khan is more famous
(a) Btrr \our own veget;bles
and cook it in many others.
yOUl" t,r()m (a) Than

G) Then
kave consuming the vegetables (c) Farther

(d) Further

altogether
Speak wilh cook to change the vegetible
100. His car his better
Bring the matter to the notice of tf,e mess
in in town.
------:- many other cars
and. if nothing is done by him, then
9h3r8e (a) Then (b) Than
rntorm the hostel administration
(c) Best (d) Cheap
(e) None of the above

ANSWERS
I b 2. d 3. c 4.
8.
5 a 6 7

C 9, a 10 b C 12 b 3. 14
15.
22.
I 16. a 17 a 18. b 19. q 20 a
C

21
b
b
C 23. 24. a 25
.E 26 b 27. 28

29. c
C 30. b 31 d 32. d 33. d 34. d
36 d 37.
35
b 38. a 39 40. a 41. b 42
43 C

b 44. 45.

a 46. b 47. b
50. b b 49 a
52. d

-51 53 d _54 b
57. a 56 a
58.
!

C 59. 60 c 61 a 62. a
64. b 65 d b

66. a 67. b 68. d

7L. 69` b
a 72.

C 73. a 74. b 75. a 76. b

78. a 79. 80 b 81. d 82. 83. a
85. a 86. 84 a
c 87. 88.
92. a 93. c 94.
4
b 95.
c
C
89

96
a

d
90.
97.
b
c
9t
98
!
99. a 100. b a
 137

- lX

Snnnplr Trsr
The ability to sell a significant volume of 8. The value at some future time of a present
securities in a short period of time in the amount of money, or a series of payments,
secondary market without significant price evaluated at a given interest rate is called
concession is called (a) Annuity
(a) Marketability or liquidity (b) Present Value
(b) Maturity (c) Future value or terminal value
(c) Yield Curve (d) Growth value
(d) Successful
9. The current value of a future amount of
2. The life of security the amount of time before money, or a series of payments, evaluated at
the principal amount of secuiity becomes a given interest rate is called
due is called (a) Annuity (b) Present value
(a) Maturity (c) Future Value (d) Interest
(b) Due date
(c) Interest Time 10 Interest earned or paid on any previous
(d) Contract Termination Time interest earned, as well as on the principal
borrowed or lent is called
3. The relationship between yield and maturity (a) Compound interest
for securities dilfering only in the light of (b) Simple Interest
time or term to maturity is called (c) Annuity
(a) Term structure of interest rates (d) Present Value
(b) Indifference Curve
(c) Yield Curve 11. Interest rate used to convert future values to
(d) Utility present value is called

(a) Discount rate or capitalization rate

A graph of the relationship between yields (b) Interest
and term to maturity for particular (c) Inflation
securities is called (d) . Perpetuity
(a) Yield curve
(b) Indifference Curve 12. A series of equal payments or receipts
(c) Utility (d) Utility Curve occurring over a specified number of
.periods. In air ordinary annuity, payments or
A rise in the average Ievel of prices of goods receipts occur at that end of each period; in
and servicos is called an annuity due, payments or receipts occur
(a) Inflation (b) Interest at the beginning of each period is called
(c) Deflation (d) Compounding (a) Present Value (b) Future Value
(c) Interest (d) Annuity
6. Money paid (earned) for the use of money is
called 13. An ordinary annuity whose payments or
(a) Interest (b) Inflation receipts continue forever is called
(c) Deflation (d) None of the Above (a) Perpetuity (b) Annuity
7, Interest paid or earned on only the original
(c) Present Value (d) Future Value
amount or principal borrowed or lent is 14. A rate of interest quoted for a year that has
called not been adjusted for frequency of
(a) Compound Interest compounding. If interest is compounded more
(b) Inflation than once a year, the effective interest rate
(c) Future Value will be higher than nominal rate. Such a rate
(d) Simple interest is called
(a) Compound Interest
 138

(b) Effective annual interest

(c) Amortization 2r.. Forces that create new technologles,
creating
(d) Nominal (stated) inrerest rare new product and market opportunities
is
caIIed
15. The rate of interest earned or.paid (a) Technological environment
after
adjusting the nominal rate for factors
such as (b) External environment
the number of compounding periods per (c) Internal environment
year is called (d) political environment
(a) Effective annual interest rate
22., Laws, government agencies,
(b) Compound lnterest and pressure
groups that inlluence and Iimit
(c) Amortization various
organizations and individuals in
(d) Simple Interest society are called
a given
16. A tabte showing the repayment (a) Extefnal environment
interest and principal necessary
schedule of (b) Political environment
io p"y otT u (c) Internal environment
loan by maturity islalled
(a) Amortization schedule (d) Technological environment
(b) Liquidation Schedule ?3. Institutions and other forces that
(c) Rate of Return affect
society,s b*j:
(d) Interest Rerum - values,
preferences, and behaviors
perceptions,
is called
(a) Extemal environment
17. Factors that alfect consumer buying
power (b) Internal environment
and spending patterns is called
(c) Culturalenvironment
(a) Budget
(d) Home environment
(b) Economies of scale
(c) Utility analysis 24. Fresh understanding of customers and
the
(d) Economic environment marketplace derived from marketing
information that become that basis
18. Differences noted over a century for
ago by Ernst creating customer value and relationships
in how peopte shift theirui*;?ing is
across called
-nnryt
food, housing, transportatiixr, h;;th
care, and (a) Market insight (b) Fresh insieht
other goods and.services categories (c) Customer insight (d) Customer?atabase
' as family
income rises is called
25. 'People and p_rocedures
(a) Iaw of difference for assessing
information needs, developing the
(b) ,Time value of money needed
information and helping aecisfn
(c) Rise in income effecr makers to
sue the information to generate
(d) Engel's laws u"a
actionable customers ana mart<et "ufiJui"
insights is
19. Natural resources that are needed called
as inputs
by marketers or that u"" lff."t.O by
(a) Marketing information system (MIS)
marketing activities is called (b) Enterprise resource ptanning (ERpt
(a) Extem4l environment (c) saP
(b) Internal environment (d) Marketing intelligence
(c) Competitor environment 26. Electronic collections of consumer
(d) Natural environments and
market information obtained from du;;
sources within the company
20. Developing strategies and practices network is called
that (a) Internal databases
create a world economy that
ihe pfanet ci," (b) Extemal database
support indefinitely is called
(c) eRP
(a) Green house effect
(d) saP
(b) Global warming
31
(c) political environmenr 27. Which of the following is not a liabilitv?
(d) Environmental sustainability (a) Accounts payable
1u) n",ri*a-"-rtirg,
(c) Notes payable (d) Uneamed
r"u"ru"
 139

ting 34. If X Company paid $500 for the telephone

28 Adjusting entries bill, this would
sis (a) Are primarily used to change account (a) Decrease assets
balances because of accounting errors that (b) Increase assets
have been made (c) Decrease expenses
(b) Usually are recorded as of the last day of (d) Increase liabilities
the accounting Period
(c) Always change at least one income A global type of organization in which

35

statement account balance and one balance artificial geographical barriers are

eliminated is called

sheet account balance

(d) B and C are correct (a) Borderless organization
(b) Virtual company
29. Which of the following direct effects on the
fundamental accounting model is not (c) MNC (d) rNC
possible as a result of transattion analysis? 36. An approach to going global that involves
(a) Increase a liability and increase an asset t making products at home and selling them
(b) Decrease, stockholders' equity and increase

overseas is called
an asset (a) Importing (b) Exporting
(c) Increase an asset dnd decrease an asset (c) Licensinc (d) Franchising
(d) Decrease stockholders' equity and decrease
an asset 37. An approach to going global that involves
selling products at home that are. made
30. The principle which holds that all of the overseas is called
expenses incurred in earning revenue should
Exporting (b) Importing
(a)

with the revenue recognized

be identified

period is the
Licensing (d) Franchising
(c)
and reported for the'same
(a) Revenue principle (b) Liability principle 38. An approach to going global bY
(c) Timing principle (d) Matching principle manufacturing organizations that involve

giving other organizations the right to use

31. When a company buys equipment for your brand name, technology, or product
$60,000 and pays for one third in cash and
specifications is called

, the other two thirds is financed by a note

(a) Licensing (b) Franchising

payable, the following are the effects on the

(c) Exporting (d) Importing

equation
(a) Equipment increases bY $60,000 39. An approach to going global by services

(b) Liabilities increase by $40,000 organizations the right to sue your brand

(c) Total assets increase by $40,000 name, technolory, or product specification is

(d) All of the above effects occur on the called
equation (a) Importing (b) Exporting
(c) Franchising (d) Licensing
32, The accounts payable account has a
beginning balance of $2,000 and we 40. An approach to going global that involves
purchased $5,000 of inventory on credit partnerships between an organization and a
during the month. The ending balance was foreig4 company in which both share

$1,200. How much did we pay our creditors resources and knowledge in developing new
during the month? products or building production facilities is

. (a) $5,800 called

(b) $3,800 (a) Foreign subsidiary (b) Strategic alliance
(c) $8oo (c) Franchising (d) Joint venture
(d) None of the above amounts is correct
41. An approach to going global that involves a
33. Payment of a liabititY would direct investment in a foreign country by
(a) Decrease stockholders' equity setting up a separate and independent
(b) Decrease assets production facility or office is called
(c) Not affect assets (a) Foreign subsidiary (b) Franchising
(d) Increase stockholders' equity (c) Strategic alliance (d) Joint venture

I
 140

Consider the supply function and demand slt. In case ,of linear correlation, if x increases
function respectively as follows and answer and therre is a shift in the values of y, it is said
accordingly, that ther,e is
Supply: P=7/aQ+200 (a) Correrlation (b) Regression
Demand:P=-ll2Q+800 (c) Parettt diagram (d) Cluster diagram
42. What is the equilibrium price 52. The corrrelation is when y tends to
(a) 200 (b) 400 increase vvith the increase in the value of x.
(c) 600 (d) 790 (a) Positirze (b) Negative
(c) Neither positive nor negative
43. For Question 42, the equitibrium supply (d) 0
quantity will be
(a)710 (b)800 53. The coruellation is_ when y tends to
(c)830 (a)840 decrease wiith the increase in the value of x.
t1a) Negativ e
44. For QueStiOn 42, the equilibrium delnand (,b) Positive
quantity will be
(r:) Neither ,positive nor negative

(a) 710 (d) o

(c)930
54. linea r correlation occurs when all the
45. For QueStion 42, the equilibrium quantity poi.nts fall ex actly along a straight line
will be (a) Negative (b)Perfect
(a)800 (b)300 (c) Negative (d)Imperfect
(c)400 (d)500
55 In ar scatter diagram, if the data form a
46. For Revenue, R(x) = -4xz + 72, total cost, strailght horiz,ontal or vertical line , we sdy
C(x) = 16x + 180, then the profit equation thatt lthere is
will be (a) Irlo correlatiion
(a) Profit = 50x (b) Positive cor relation
(b) Profit =-4xz +56x-lg0 (c) Negative corrrelation
(c) Profit =-4x2 + 56x +180 (d) lPerfect corre:lation
(d) Profit = -4x2 - 56x -1g0
47. For the equatiops in Question 46 above, the
56. The linear correlation coefficient r always
breakeven level of output is
has v, alue betwee n and _
(a)0 (b)-l and l
(a)5,8 (b)5,9
(C)Otand l (d)l and 2
(c) 5, 10 (d)5,H -
57. Value of +1 for lirrear correlation coefficient
48. COnsider Revenue, R(x)= 5x2 + 750 and
C(X)=100X+20000,then the prolt function rsignifi,esa--
will be (a) Perrfe:ct negative, correlation
(a)PrOfit=-5x2+650x-2000 (b) Perfect zero corn:lation
(b)PrOfit=-5x2+650x+20000
(c) No co,rrelation
(C)PrOfit=-5x2+650x-20000 (d) Perfect positive correlation
(d)PrOit=-5x2+650x-2000 58. Value clf -I for linear ,correlation coefficient r
49. For the equations in QuestiOn 48 above,the signifies a -
breakeven level of output is_______ (a) Per fect rnegative cor.relation
(a)50,80 (b)5 or 10 (b) No correlation
(c)4 orll (d)5 or ll (c) Perfect zero correlati(on
(d) Per fect negative corre,lation
50. In case of linear correlation, if x increases
and there is no definite corresponding shift 59. Linear correlation coeffi,cient r measure the
in the value of y, it is said that there is __of a linear relatiornship
COrrelation (a) Reliati,onship (b) 0 and I
(a)No
(b)POsitivc (c) ProbaLrility (d) lStrength
(c)Negativc
 141

does not tell us about the mathematlcal 69. Gettlng the meanlng ftom ones head into the
relationship between the two variables head of the readerflistener accurately is the
(a) Linear correlation coefficient purpose of

(b) Linear regression (a) Clarity Concretely

(c) Concisely

lells us about the mathematical Correctly

relationship between the two variables 70. involves being aware not only of the
(a) Linear correlation coefficient perspective for others, but also their feelings
(b) Linear regression (a) Clarity (b) Courtesy
62. Process in which employees leave the (c) Correctly (d) Concisely
organization and have to be replaced is 71. E-mail messages are short and often
called (a) Informal (b) Formal
(a) Firing
(b) Turnover '
72. At the core of is proper grammar,
(c) Absenteeism (d) Franchise punctuation, and spelling
(a) Correctness (b) Concreteness
63. Following are type of turnover (c) Clearness (d) Conciseness
(a) Involuntary turnover
(b) Voluntary turnover 73. As an author, when one thinks that the
(c) All of the above reader will consider the message favorable or
neutral information, one can use the
Terminations for poor performance or work anoroach
`4. rule violations are called (a) Direct (b) Indirect
(a) Voluntary turnover
(b) Absenteeism 74. As an author, 'when one thinks that the
(c) Involuntary Turnover reader will probability reach unfavorably to
the request or information, one can use the
(d) Uncontrollable turnover
approach
65 If Employee leaves by choice is called (a) Direct (b) Indirect
(a) Voluntary turnover
75 As an author, when one thinks that the
(b) Involuntary turnover reader will probability reach unfavorably to
(c) Uncontrollabletumover the request or information, one should not
(d) Absenteeism spring he main idea in the first paragraph.
66. Ii lower performing or disruptive employees
(a) True (b) False
leave, it is best described by 76. The _ news message is one fo the most
(a) Dysfunctional turnover difficult to write
(b) Voluntary turnover (a) Good (b) Bad
(c) Functional tumover
77. The most important positions in any business
(d) Involuntary turnover message are the paragraphs
If key individuals and high performers leave (a) Writing (b) Opening
`7. at critical times, it is best described by (c) Closing
(a) Functional tumover (d) Opening and closing
(b) Voluntary turnover
(c) Involuntaryturnover
78. Often the _ determines whether the
reader continues reading, puts the message
(d) Dysfunctional turnover
aside forlater study or diicard
68. Communicatiqg means being specific, (q) Opening (b) Closing
definite and vivid rather than vague and 79. Speclallzation and trade among econollucs
general.
- units are based on the principle of

(a) Concretely Correctly (a) Comparative advantage

(c) Concisely Clearly (b) Competitive advantage

(c) Production advantage
(d) Efficiency advantage
80. Ifthe exchange rate of Rupees (Rs.) increases
against Dollar ($), it is known as _ 90 Nestle means:
in (a) Cold and hot
the value of Dollar ($)
(a) Appreciation '\\ (b) Settle comfortably and warmly
(b) Depreciation (c) Utility products
(d) Large quantity
81. trf the exchangerate of Rupees (Rs.) increases (e) Feeling of joy
against Dollar ($), it is known as _ in
91. Choose the correctly spelled word
the value of Rupees (Rs.)
(a) Appreciation (a) Etiquete (b)Etiquctte
(b) Depreciation (c) Atiquette (d)Etiqucte

82. If the exchange rate of Rupees {Rs.)

92. The act of a person that is opposite
decreases against Dollar ($), it is knowir as affection and care is an act of:
(a) Love (b)Inhumanity
in the value of Rupees (Rs.)

Appreciation
(c) Squeak act (d)Ainity
Depreciation 93. Unprising is closest to

83. If the exchange rate of Rupees (Rs.)
(a) Untruthful Cheap

decreases against Dollar ($), it is known as
(c) Rebellion Silnple
in the value of Dollar (Rs.) 94. Th is the bdding.
(a) Appreciation (b) Depreciation (a)Tallcst ' (b)TallCr
84. For Double counting problem, GDP includes (C)Tall (d)SInaller
goods and services 95 She said_thatShe was not happy.
(a)Final (b) Raw Material (a) Farther (b)Further
(C)Sctt Finished (d) Inventory. (c) Either (d)Ncithcr
85 GDP stands fOr 96. David ranks seventh from the top and
(a) Great Domestic Price 28fr from the bottom in a class. Itrorv many
(b) Gross Dominant Price stidents are there in the class?
(c) Gross Domestic Product (a)36 (b)35
(d) Gross Domestic Price (c)34
86. GNP stands for
(d) Cannot be determined
(a) Great National
(e) None of the above
Production
(b) Gross National Product 97. Select the following which is differed from
(c) Gross National Pnce other with respect to alphabets
(d) Great National Price ( Egg (b)Acne
87. The synonym of knotty is: (C)Mother (d)Giddy
(a) crossed (b) twisted 98. Select from the following, which is differenl
(c) sensitive (d) puzzling from the others
(e) rope (a) Great (b)TrCat
t8. (c) Tears (d)Tablc
The antonym of .Voguer ls:
(o) Cunent fashion (b) tnflammation (e) Later
(c)0:l fashlon (d) Dress 99 Selrt rrom the fo owing,whic d erent
(e) Foshion froin the others
89 The Synonyrn of fogue k (q) Reap (b)Rare
(a) Cunent fashion (b) Inflammation (c) Tore (d)Tear
(c) Dress (d) (e) Pear
Fashion
(e) Old Fashion 100. A has three degrees for comparison.
(a) Adjective (b) Noun
(C)Verb (d) Conjunction
 ANSWERS
1. a 2. a 3 a 4. a 5 a 6. a 7. d
8, C 9. b 10 a 11. a 12. d 13 a 14. d
15 a 16. a 17. d 18. d 19. d 20 d 21. a

22. b 23. C 24. C 25. a 26 a 27. b 28. d

29. b 30. d 31. d 32. a 33. b 34. a 35 a

36. b 37. b 38. a 39, C 40 b 41. a 42. b

43. b 44. b 45 a 46. b 47. b 418. C 49 a

50 a 51. a 52. a 53. a 54. b 55. a 56 b

571 d 58 d 59. d 60 a 61. b 62. b 63. C

64. C 65 a 66 C 67. d 68 69 a 70
71. a 72. a 73. a 74. b 75 a 76. b 77. d
78. a 79. a 80. b 81. a 82. b 83. a 84. a

85 C 86. b 87 b 88 C 89. a 90. b 91 b

92. b 93. C 94. 95 b 96 97. d 98 d
99. C 100. a
 144

SeupLE Trsr -X 16

The amount of money that could be reallzed lf 9. The systematic design, collection, analysis,
an asset or a group of assets is sotd separately
and reporting of data relevant to a specific
from its operating organization is called-
marketing situation facing an organization is
(a) Amortization
called
(b) Liquidation value (a) Advertising (b) Marketing
(c) Annual Interest Value research
(c) Managing information sysrems
(d) Compounded Value (d) Causal research
2. The amount a firm could be sold for as a 10. Marketing research to gather preliminary
continuing operating business is called
information that will help define problems
(a) Market Value
and suggest hypothesis is called
(b) Going concern value
(a) Exploratory research
(c) Intrinsic Value
(b) Causal research
(d) Face Value
(c) Descriptive research
3. The marhet price at which an asset trades is (d) Secondary research
called
(a) Going Concern Value
11. Marketing research to better describe
(b) Market value marketing problems, situations or markets,
such as the market potential for a product or,
(c) Intrinsic Value
the demographics and attitudes of ^consumers
(d) Face Value
is called
4. The price a security ,,ought to have,' based (a) Secondary research
on all factors bearing on valuation is called (b) Exploratory research
(a) Market value (b) Face Value (c) Causal research
(c) Intrinsic value (d) Bond (d) Descriptive research
5 A long,term debt instrument issued by 12. Marketing research to test hypothesis about
a
corporation or goyernment is called cause and effect relationships is called
(a) Descriptive research
(a)Bond (b) Stocks (b) Causal rescarch (c) Secondary research
(c)Debenturc (d) Contract (d) Exploratory research
6, The stated value of an asset is called
13. Informatlon that already exists somewhere,
(a) Face value (b)Market value having been collected for another purpose
(c) Intrinsic Value (d) True Value ls
called
7. The stated rate of interest on a bond is best (b) Secondary data
described by :1 :: (d) Online data
(a) Interest Rare (b) Coupon rate 14. Informatlon collected from the speclflc
(c) Annuity (d) Simpte Inrerest pUrpose a[ hand ls called
8, The systematic collectlon and analysis for (a) Secondary data (b) Tertiary data
publlcity avallabls lnformatlon about (c) Collected data (d) primary data
consumers, competitors, and developments 15 For each tranmction recorded in an
in the marketing envlronment ls called accounting system, the two basic equalities
(a) Marketing research that must be maintained at all times a-re
(b) Marketing inrelligence (a) Assers = Liabilities + Stockholders,Equiry.
(c) Exploratory-research (2) Net Income Revenues + Expensei
=
(d) Advertising (b) Cash Increase = Cash Inflows _ Cash
Outflows. (2) Net income Revenues +
=
Expenses
 (c) Assets = Liabilities + Stocl<holders'Equity. 22. A culture dlmension that descrlbes when
(2) Debits = Credits people are supposed to look after their own
(d) Net Income = Revenues -r Expenses. (2) interests and those of their immediate family
Debits = Credits is called
(a) Collectivism
16. On April 1,2013, the premium on a one-year (b) Individualism
insurance policy on equipment was paid (c) National culture (d) Local culture
amounting to $1,800. At the end of 2013 (end
of the accounting period), the financial 23. A cultural dimensions that describes when
statements for 201.3, would report people expect to others in their group to look
(a) Insurance expense, $1,350; Prepaid after them and to protect them when they
insurance $450 are in trouble is called
(b)InSurance cxpense, $1,800; Prepaid (a) Collectivism
lnsurance$0 (b) Individualism
(C)InSurancc cxpcnsd, $0: Prepaid insurance (c) Power distance
$1,800 (d) Uncertainty avoidance
(d) Insurance expense, $450; Prepaid insurance
24. A cultural measure of the extent to which a
$1,3s0 society accepts the unequal distribution of
17. Which group of accoirnts contains only those power in institutions and organizations is
that normally have a debit balance? called
(a) Accounts receivable; Accumulated (a) Individualism
depreciation; Fees earned (b) Power distance
(b) Bond investment; Cash; Contributed capital (c) Collectivism
(c) Cash; Inventory; Cost of Goods Sold (d) Uncertainty avoidance
(d) Notes receivable; Wages payable;
Operating expenses 25 A cultural measure of the degree to which
people tolerate risk and unconventional
18. Which Group of accounts contains-only those behavior is called
that normally have a debit balauce?
(a) Cash; Inventory; Prepaid Insurance (a) Collectivism
(b) Bond investment; Cash; Contributed (b) Uncertainty avoidance
Capital (c) Power distance (d) Individualism
(c) Accounts Receivable; Dividends; Sales
26. A national culture attribute describing the
Revenue
(d) Notes Receivable; Wages Payable;
extent to which societal values are
Operating Expense
characterized by assertiveness and
materialism is called
19. The assumption that a business can continue (a) Quality of life (b) Individualism
to remain in operation into the future is the (c) Collectivism (d) Quantity of life
(a) Cost principle
(b) Continuity assumption 27. A national culture attribute that reflects the
(c) Unirof-measure assumption emphasis placed upon relationship and
(d) Separate-entity assumption concern for others is called
20 Which of the following events will cause (a) Quality of life (b) Individualism
retained earnings to decrease? (c) Collectivism (d) Quantity of life
(a) Dividends declared by the board of 28. In minimization problems, the constraint
Directors
equations are preferably written with the
(b) Net income reported for the period
(c) Incurring an expense _ sign.
(d) Both A and C decrease retained earnings (a) (b)
(C) (d)
21. The values and attitudes shared by
individuals from a specific country that 29. In maxinization problelllls, the Constraint
shape their behavior and beliefs about that is equations are preferably written with the
important is called Sign.
(a) National culture (b) Collectivism (a) (b)
(c) Individualism (d) Local culture (C) (d)
 146

30. In linear programming, the profit is

maximized at the intersection of two 40. Any subset of the sample space is called
constraints, called the _ points.
(a) Event (b) Population
(a) Extreme Point (b) Irast point (c) Sample (d) Strength 50

(c) BreakEven Point (d) Constrainr'point 41. Two coins are tossed simultaneously, the
probability that atleast one head wiII occur is 51.
31. In linear prograrnming, Pivoting is the
process of solving n equation for _
variables. (r) 0 (b) 3/t
(a) n (b)n+1
(c) 2/a (d) 1 52.
(c) n+2 (d)n+3 42. Turnover which occurs for reasons outside
32. Every minimization problem the impact of the employer is best described
in linear
by
programming has acorresponding
(a) Uncontrollable tumover
maximization problem and every nraxirnization
problem has a (b) Controllable turnover
corresponding minimization
problern (c) Functionalturnover
(a) True (d) Dysfunctional turnover
(b)Falsc 54.
33. In the context of Question 5I, the original 43 Turnover which occurs due to factors that
problem is called could be influenced by the employer is called
(a) The Dual (a) Controllable turnover
(b)Thc P Inal
(c) Marginal V:rl,,e (b) Uncontrollable turnover
(d)ShadOw PHcing
(c) Functional turnover
34. In the cOni Of QutStion 51, the (d) Voluntary tumover 55
corresponding pr! Jtrenn is called
The Dual 44. A survey that focuses on employees, feelings
ra
(b)The P Inal
, rvlarginal Value (d) Shadow pricing and beliefs about their jobs and the'
organization is called
35. The relative frequency with which that event (a) Exit interview (b) Research
can be expected to occur is called (c) Attitude survey (d) Feedback 56.
(a)Correlation (b)Coefficient
(C)Probability
45 An interview in which individuals are asked
(d)Strength
to identify reasons for leaving the
36. Ifthe number of tirnes an experiment is organization is best described by
repeated is increased, the ratio of the (a) Exit interview (b) Interview 57.
number of successful occurrences to the (c) Research (d)Fccdback
number of trials will tend to approach the
theoretical probability of the outcome of ran 46. An interview in which the interviewer has
individual trial. This law is known as certain views about particular demographics
(a) Probability of people is called_ 58

(b) Law of large numbers (a)Fcedback (b) Stereotyping

(c) Strength (O Ha1lo Effect (d) Amitude Problem
(d) Regression 47, The differences among people is called
37. Any process that yields a result or (a)Sirdla ty (b)Hulnanc 59.
an
observation is called (C)Indifferencc (d)D crsity
(a) Experiment (D Sample 48. The phenomena that individuals should have
(c) Population (d) Research equal treatment in all employment-related
38. A particular result of an outcome is called actions is best described by 60,
(a) Sample (b) Population (a) Work force diversity
(c) Outcome (d) Regression (b) Employer ethics
(c) Indifference employer
39. The set of aU possible outcomes of an (d) Equal employment opportunities
experiment is called
(a) Event (b) Sample space
49. Often the opening determines whether the
(c) Population (d) reader
Regression
(a) Continues reading
(b) Puts the message aside for later study
 147

(c) Discard
61. is the result of insufficient aggregate
(d) All of the above ,
demand in the economy.
50 Avoid a(n) opening sentence. (a) Frictional unemployment
(a) Irritating (b) Pleasant (b) Structural unemployment
(c) Cyclical unemployment
51. The - sentence is more likely
motivate the reader to act as requested. 62. is the result of changes in technology.
(a) Opening (b) Closing (a) Fnctional unemployment
(b)- Structural unemployment
52. The formal word for the word expect is
(c) Cyclicalunemployment
(a) Anticipate (b) Ascertain 63. full-employment unemployment rate is also
(c) Conflagration (d) Deem called as
53. One agrees /o a plan and agrees with a (a) natural rate of unemployment
person. (b) natural rate of employment
(a) True (b) False
(c) natural- rate of cyclical unemployment
(d) natural rate of structural unemployment
54. The medium used most often for written
messages to persons outside the firm is the 64 unemployment always has a
(a) economic cost
61 Burir.rs letter (b) Email (b) ecooomic profit
-
(c) Pager (d) SMS (c) economic stability
(d) economic advantage
55 Most business letters have seven standard
parts which are heading, inside address, 65 Increase in the general level of prices in the
salutation, body, complimentary close, economv is called as
signature area, reference section (a) inflation (b)denatiOn
(a) True (b) False
66. Decrease in the general level of prices in the
56. Telegrams can send a message within a economv is called as
(a) inflation (b) deflation
(a) Province (b) Country
(c) Continent 67. is the result of excess aggregate
demand in the economy
57. Cablegrams and radiograms can send a (a) Demand Pull Inflation
messagewithin a. (b) Demand Pull Deflation
(a) Province (b) Country (c) Demand Push Inflation
(c) Oversees (d) Demand Push Deflation
58. Telegrams, cablegrams and radiograms 68. Foible is:
save_ (a) A defect ofcharacter
(a)NIIOney (b)Time (b) Musical instrument
(c)A&b (c) A review of constitution
59. means alternating periods of (d) Speedy communication
prosperity and depression. 69. A man jumped the river.
(a) Business Cycle (b) Business Loop (a) In (b)InSide
(c) Product Life Cycle (d) Product Life Loop (c) Into (d)On
60. Typical business cycle has the following 70. He took
-
SmOking when he was quite
pattern. young.
(a) Recession, trough, peak, recovery (a) up (b) On
(b) Peak, recession, trough, recovery (c) To (d) Over
(c) Trough, peak, recession, recovery
(d) Recovery, trough, recession, peak 71. I can ot put______ with noisy people.
(a)Off (b) on
(C)Up " 1d1 out
 148

72. Current fashion 84 A moyement along a function

(a) Inflammation (b) Old fashiOi F
always involves a change in the price of the
(c) Vogue product in question and a change in the total
Dress
quantity demanded for that--product
(d)
(e) Fashion
(a) Suppty G) Uiitity
73. Could you please give me (c) Demand (d) Market
CfFee. Basket
(a)The (b) A 85
The law of _ describes the inverse
(C)SoIIne (d) ny relationship between the quantity demanded
74. lt costs about sixty dollars to have a both and the price of the product
(a) Supply (b) Complements

(a)To fill Fill
(c) Market (d) Demand

(C)Separate To scparatc 86. The function can shift if the price of
75 Adhere means another good increases and
(a)Adopt consider one good a substitute of the"orrs,rm""
other.
(b)Stick
(c)Appreciate (d)Avoid
-
(a) Supply (b) Complements
(c) Market (d) Demand
76. Accumulate means
(a) Companion 87. When the price of a product changes and the
(b) To gather
(c) To pile demand function of a related product shifts
(d) To collect in the opposite direction, the two goods are
77. The antOnyn1 0f adnfre is called
(a) Disapprove (b)ExtOrt (a) Demanded (b) Supplied
(c) Approve (c) Complements
(d)Applaud
78 Cost push is mostly the result of factors that 88. The demand functions shifts to the right and
per unit production costs. the consumer prefer the product than
(a) Increase (b) Decrease
before
(c) Keep stable More
(a) (b) Irss
79 Fu.ndamental objective of 'any monetary 89 The function expresses the
policy is .=- relationship between the total quantity
(a) Employment with inflation supplied and the price received by suppliers
(b) Employment without inflation (a) Complement (b) Demand
(c) Employment with deflation (c) Supply
(d) Employmenr wirhour deflation 90. Mr. Nusrat Fateh Ali Khan is more famous
80. Money can best be defined as many others.
(a) Store of value (a) Than (b) Then
(b) Unit of account (c) Farther (d) Further
(c) Medium of exchange 91. His car his better many other cars in
(d) All of the above town.
(a) Then

Money affects (b) Than

but does not affect (c) Best (d)
of other real variables. Cheap
(a) Steady state value, utility 92
_
Unprising is closest to
(b) Utility, steady srare value (a) Untruthful (b) Cheap
82. revenue collected because of issue
(c) Rebellion (d) Simple
of money
by government is known as 93. This is the _ buildins.
(a) Cause of inflation 1U; Hyp".innution (a)Tallest (b)Taller
(c) Seingniorage (C)Tall (d)Smaller
83. The function expresses the 94. She said that she was not happy.
relationship between the total
quantity (a) Farther (b) Further
demanded and the price of the product. (c) Either (d) Neither
(a) Supply (b) Utiliry
. (c) Demand (d)NIlarket Basket
 749

95 You hive been asked to appoint a personal (c) It is an element which melts easily

secretary. Which of the following quality (d) Its weight is less than the weight of water

would you consider as most important? of equal volume

(a) She mgst have good experience (e) None of the above
(b) She must have an imposing personality gg. At midnight, you heard the voice of several
(c) She must be highly educated people shouting' 'tire". Which of the
(d) She must be an efficient stenographer following you would do?
(e) None of the above (a) Ensure where the fire had taken place and
96 White riding on a scooter, you find someone to rilhat extent
has been hurt by your scooter. Which of the (b) Continue to sleep till you are called for
followlng will be your responsibility? (c) Rush out of the room with buckets of water
to extinguish the fire

(a) Pay compensation for the injury and try to

dispose the matter (d) Rush to the fire brigade statiort and inform
(b) Try to.run away from the spot immediately the officials about the fire
(c) Take him to the Doctor and arrange for the (e) None of the above
medical aid 100. From 1940 to 1970, the amount of food
(d) Stop your vehicle and say sorry production per worker and per hour increased
e
(e) None of the above two fold. From 190 to 2000, food production
S
e 97. Generally a patient of tuberculosis visits the per worker and per hour increased one and a
hill stations because half times.
(a) Each of the following, if true, could help to
(a) They are advibedby the Physicians to do so
account for this trend except (a) More
(b) It is pleasure to enjoy the environment
(c) Atmospheric pressure decreases with the workers were needed to produce the same
unit of output
height from the sea level
(b) The number of farm workers increased
(d) Cold weather is favorable for the patients of
(c) The number of hours worked per unit of
tuberculosis
output decreased
(e) None of the above
(d) The use of chemical fertilizers decreased
98. Ice floats on water because (e) None of the above
(a) It is spongy
(b) It is transparent
ANSWERS
b 2. b 3. b 4. C 5 a a 7. b

8. b 9. b 10. a d 12. b `.
13. b 14. d
15 C 16. a 17. C 18. a 19. b 20. d 21. a

22. b 23. a 24. b 25. b 26. d 27. a 28. a

29 b 30. a 31. a 32. a 33. b 34. a 35. C

36. b 37. a 38. C 39 b 401 a 41. b 42. a

43. a 44. C 45. a 46 b 47. d 48. d 49 d

50. a 51. b 52. a 53. a 54. a 55 a 56. b
57. C 58 C 59. a 60. b 61. C 62. b 63. a

64. a 65 a 66. b 67. a 68 a 69. C 70 a

71. b 72. C 73. C 74. C 75 a 76. C 77. a

78 a 79. b 80 d 81. a 82. C 83. C 84. C

85 d 86. d 87 C 88 a 89. C 90. a 91. b

92. C 93. a 94. b 95 a 96. C 97. C 98. d
99 a 100 C
 150

SELF AssESSMENT SHEET

Test No. Correct Answers Wrong Answers %in Test
SAMPLE TnsT- I
Saupm TBsr-II

SAMPLE TEST III

Saupln TEST-IV

Sauplrc Tnsr-V
SAMPLE TEST_VI
SAMPLE TEST- VII
Saupln Tnsr - VIII

SAMPLE TnsT- IX
SAMPLE Tnsr-X

F'onn,TuIa FoR THE PERCENTAGE

,

Correct answers I Totalquestions x I 00

rr your 5u answers are correct out of total
70 questions you will follow the following:
50
_x100
70
 151
GlossARY
A/P is the monies the company owes for goods or
services received, but not yet paid for.
AIR is the monies due to the company for goods sold
or services rendered for which payment has not
yet been received.
Absenteeism Policy: A policy about attendance
requirements, scheduled and unscheduled time
ofi and measures for dealing with workplace
absenteeism. Repeated absenteeism can lead to
termination.
Absolute advantage: This is the simplest yardstick
of economic performance. If one ierson, firm or
country can produce more of something with the
same amount of effort and resources, they have
an absolute advantage over other producers.
. Being the best at something does not mean that
doing that thing is the best way to use your
. scarce economic resources. The question of what
to specialize in--and how to maximize the
benefits from international trade--is best decided
according to comparative advantage. Both
' absolute and comparative advantage rnay change
si gnificantly over time.
Access: Access to library materials and services, on
one dimension, is represented in the location of
physical facilities. Becduse libraries are traveled-
to outlets, marketing location theories can be
applied successfully to library sitting. (Wood
and Koontz)
Accountability: Libraries like private sector
businesses are increasingly called upon to make
all units accountable for results. Growing funds
are needed for technology as opposed to only
books. Funders often cut the library budget first,
in favor of other agencies such as police and fire
or other seemingly, more necessary agencies.
Libraries are developing better perfornance
measures within the present day control systems
to offer better accountability. (Wood and
Koontz)
Accountability: (in management science) The
responsibility of an organization to prbvide
evidence that its policies, prograrns, and projects
satisfy its interest groups.
Accounts Payable: (A/P) is the monies the company
owed for goods or services received, but not yet
paid for.
Accounts Receivable: (A/R) is the monies due to
the company for goods sold or services rendered
for which payment has not yet been received.
Acculturation: The process by which people in one
culture or subculture leam to understand and
adapt to the norms, values, life styles and
behaviors of people in another culture or
subcultures, Fcir example, acculturation is the
process by which a recent immigrant learns the
way of life of the new country. Library services
and materials facilitate this process.
Acquisition value; The users' perception of the
refative worth of a product or service to them.
Formally defined as the subjectively weighted
difference between the most a buyer would be
willing to pay for the product or service, less the
actual price of the item. Time user must spend to
'acquire' is often used as a surrogate for .relative
worth or price paid,' in library research. For
example, a user might be willing to expend drive
time and a brief time in the library to check out a
best seller, but not wait two weeks for a copy to
be returned.
Abtion team: (in planning) A group of people who
are responsible for implementing a specific
improvement goal.
Activities, Interests, and Opinions (AIO): A
measurable series of psychographic (as opposed
to demographic) variables involving thg interesrs
't
 ls2
and beliefs of users. Note, because
psychographics are usually expensive to gather,
yet offer a more precise profile of users,
demographic variables are usually relied upon.
Activity-based costing (ABC) aims to provide a
dynamic and realistic means of calculating the
true cost of doing business. It precisely allocates
direct and indiiect costs to particular products or
customer segments.
Activity-Based Costing (ABC): aims to provide a
dynamic and realistic means of calculating'the
true cost of doing business. It precisely allocates
direct and indirect costs to particular products or
customer segments.
Adaptive expectations: A theory of how people
form their views about the future that assumes
they do so using past trends and the errors in
their own earlier predictions. Contrast with
rational expectations.
Administrative culture: The prevailing attitudes,
values, beliefs, and rules for acting within an
organization.
Administrative Services OnIy (ASO): The hiring of
a firm (usually a health care vendor) to handle
certain administrative tasks. The firm does not
assume any risk but merely carries out the
specialized functions that the employer cannot or
does not want to do. For example, an employer
funds its own dental insurance claim payments
but pays the ASO firm to process the claims.
Aflirmative action: Proactive policies aimed at
increasing the employment opportunities of
certain groups (typically, minority men and"/or
women of all racial groups). Title 5, Section 503
of the Rehabilitation Act requires that
affirmative action be taken in employment of
persons with disabilities by Federal contractors.
Affirmative action was designed to rectify past
discrimination but has been controversial since
its inception.
Agent (Insurance): An employee who sells the
products owned by the company, in contrast to a
broker, who sells the insurance products of
several companies. See Broker.
Alternate Dispute Resolution (ADR): An informal
process to resolve disputes. Involved parties
meet with a trained third party who assists in
resolving the problem by arbitration, mediation,
judicial settlement conferences, conciliation or
o.*"r methods. Though usually voluntary, ADR
is sometimes mandated by a judge as a first step
before going to court.
Americans with Disabilities Act (ADA): Title I of
the Americans with Disabilities Act of 1990 is
part of a federal law that prohibits discnmination
against someone with a disability, defined as ,.a
physical or mental impairment that substantially
limits a major life activity." Disability is decided
on a case-by-case basis and does not include
conditions such as substance abuse. This law
applies to the whole employment cycle, from
application through advancement and
termination.
Application Service Provider (ASP): Other
common terms are SAAS (software as a
service), on-demand or Web-based services. A
business that provides computer-based services
to customers over a network, as opposed to
installing the software on a company servel
(hosted). This is a cost-effective solution for
small and medium-sized businesses, who may
find it hard to keep up with the increasing costs
of specialized software, distribdtion and
upgrades. Smaller, periodic payments ieplace
one-time lump sum pricing. The ASP can be
accessed from any location via the Internet.
Hrmarketer.cbm is an example.
Applicant Tnacking System (ATS): A software
application that,began as a way to electronically
handle recruitment needs but has since expanded
to the entire employment life cycle. On
boarding, training and .succession planning
capabilities now exist, for example. An ATS can
be implemented on an enterprise level or small
business level, depending on the size and needs
' of the company. Applicant Tracking Systems
may also be referred to as Talent Management
Systems. An ATS saves time and increases
efficiency and compliance for those tasked with
managing human capital.
Attrition: A gradual voluntary reduction of
employees (through resignation and retirement)
who are not then replaced, decreasing the size of
the workforce.
Adopter categories: Persons or agencies that adopt
an innovation are often classified into five
groups according to the sequence of their
adoption of it. (To illi.rstrate' this think of
individual use of the Internet within the library,
and for an agency, libraries that offer Intemet
access to the general public. 1) Innovators (first
 153

tep 2-5Vo); 2) Early adoprers (tO-ll7o)' 3) Early
majority (next 35Vo); 4) Late majority (next
35Vo); 5) Laggards (final 5-10%o). This is
of important when considering how long it may
)is
take for the general public to 'adopt' a product
ion or service.
t'a
Adverse selection: When you do business with
.lly
people you would be better off avoiding. This is
led
one of two main sorts of market failure often
rde
associated with insurance. The other is moral
Law
hazard. Adverse selection can be a problem
'om
when there is asymmetric information between
and the seller of insurance and the buyer; in
particular, insurance will often not be profitable
when buyers have better information about their
ther
risk of claiming than does the seller. Ideally,
la
insurance premiums should be set according to
.A the risk of a randomly' selected person in the
ices
insured slice of the popglation (55-year-old male
to
smokers, say).
:ver
for Adventlsing: Many firms advertise their goods or
nay services, but are they wasting economic
lsts resources? Some economists reckon that
and advertising merely rnanipulates consumer tastes
ace and creates desires that would not otherwise
be exist. By increasing product differentiation and
net. encouraging brand loyalty advertising may make
consumers less price gensitive, moving the
tale market further from perfect competition towards
illv ' imperfect competition and increasing the ability
ded
of firms to charge more than marginal cost.
Heavy spending on advertising may also create a
On
ing barrier to entry, as a firm entering the market
would have to spend a lot on advertising too.
can
nall Advertising: The placement and purchase of
eds announcements and persuasive messages in time
)ms or space in any of the mass media by business
lent firms, nonprofit organizations. This has not been
ISES a traditional method for libraries of informing
vith the public, but rather public service
announcements, which are placed at no cost, are
the norm.
of
:nt) Agency costs: These can arise when somebody (the
,o1 principal) hires somebody else (the agent) to
carry out a task and the interests of the agent
conflict with the interests of the principal. An
opt
ive example of such principal-agent problems comes
reir from the relationship between the shareholders
who own a public company and the managers
of
lry' who run it. The owners would like managers to
run the firm in ways that maximize the value of
xet
irst their shares, whereas the managers'priority may
be, say, to build a business empire through rapid
expansion and mergers and acquisitions, which
rnay not increase their firm's share price.
Aggregation: A concept of market segmentation thar
''assumes
that most consumers are alike.
Aglng: The length of.time merchandise has been in
stock. For
All-you-can-afford budgeting: An approach to the
advertising budget that establishes the amount to
be spent on advertising as the funds remaining
after all other necessary expenditures and
investments are covered. Libraries often relegate
all promotion related materials and services into
this category.-
Altruism: It is
often alleged that altruism is
inconsistent with economic rationality, which
assumes that people behave selfishly. Certainly,
much economic analysis is concerned with how
individuals behave, and homo economicus
(economic man) is usually assumed to act in his
or her self-interest. However, self-interest does
not necessarily mean selfish. Some economic
models in the field of behavioral economics
assume that self-interested individuals behave
altruistically because they get some benefit, or
utility, from doing so. For instance, it may make
them feel better about themselves, or be a useful
insurance policy against social unrest, say. Some
economic models go further. and relax the
traditional assumption of fully rarional behavior
by simply assuming that people sometimes
behave altruistically, even if this may be against
their self-interest. Either way, there is much
economic literature about charity, international
aid, public spending and redistributive taxation.
Ambiance: An overall feeling or mood projected by
a storo through its aesthetic appeal to human
senses. A brightly colored children's room is
more appealing.to juveniles than an
area
sectioned off within the adult room which blends
in.
Amortization: The running down or payment of a
loan by installments. An example is a repayment
mortgage on a house, which is amortized b3r
making monthly payments that over a pre-agreed
period of time cover the value of the loan plus
interest. With loans that are not amortized, the
borrower pays only interest during the period of
the loan and then repays the sum borrowed in
full.

Analysis: In marketing and other social science
disciplines, a variety of statistical and non
statistical methods are used to analyze data,
instead of sheer intuition, or simple descriptive
statistics-- which have been the norm in the
library filed. (Wood and Koontz)
Animal spirits: The colorful name that Keynes gave
to one of the essentiai ingredients of economic
prosperity: confidence. According to Keynes,
animal spirits are a particular sort of confidence,
"naive optimism". He meant this in the sense
that, for entrepreneurs in particular, "the thought
of ultimate loss which often overtakes pioneers,
as experience undoubtedly tells us and them, is
put aside as a healthy man puts aside the
expectation of death". Where these animal spirits
come from is something of a mystery. Certainly,
attempts by politicians and others to talk up
confidence by making optimistic noises about
economic prospects have rarely done much
good.
Antitrust: government policy for dealing with
monopoly. Antitrust laws aim to stop abuses of
market power by big companies and, sometimes,
to prevent corporate mergers and acquisitions
that would create or strengthen a monopolist.
There have been big differences in antitrust
policies both among countries and within the
same country over time. This has reflected
different ideas about what constitutes a
monopoly and, where there is one, what sorts of
behavior are abusive.
Appreciation: A rise in the value of an asset and the
opposite of depreciation. When the value of a
currency rises relative to another, it appreciates.
Arbitrage pricing theory: This is one of two
influential economic theories of how assets are
priced in the financial markets. The other is the
capital asset pricing model. The arbitrage pricing
theory says that the price of a financial asset
reflects a few key risk factors, such as the
expected rate of interest, and how the price of
the asset changes relative to.the price of a
portfolio of assets. If the price of an asset
happens to diverge from what the theory says it
- should be, arbitrage by investors should bring it
back into line.
Arbitrage: Buying an asset in one market and
simultaneously selling an identical asset in
another market at a higher price. Sometimes
these will be identical assets in different
154
markets, for instance, shares in a company Iisted
on both the London Stock Exchange and New
York Stock Exchange. Often the issets being
arbitraged will be identical in a more
complicated way, for example, they will be
different sorts of financial securities that are
each exposed to identical risks.
Assets are all of a company's physical or intellectual
property that has financial value.
Assets: Things that have eaming power or some
other value to their owner.
Asymmetric information: When somebody knows
more than somebody else. Such asyrnmetric
information can make it difficult for the two
people to do business together, which is why
economists, especially those practicing game
theory, are interested in it. Transactions
involving asymmetric (or private) information
are everywhere. A government selling
broadcasting licenses does not know what
buyers are prepared to pay for them; a lender
does not know how likely a borrower is to repay;
a used-car seller knows.more about the quatiiy
of the car being sold than do potential buyers.
This kind of asymmetry can distort people's
incentives and result in significant inefficlencies.
Asymmetric shock: When something unexpected
happens that affects one economy (or part of an
economy) more than the rest. This can create big
problems for policymakers if they are trying to
set a macroeconomic policy that works for both
the area affected by the shock and the unaffected
area. For instance, some economic areas may be
oil exporters and tthus highly dependent on the
price of oil, but other areas are not. If the oil
price plunges, the oil-dependent area would
benefit from policies designed to boost demand
that might be unsuited to the needs of the rest of
the economy. This may be a constant problem
for those responsible for setting the interest rate
for the euro given the big differences--and
different potential exposures to shocks--among
the economies within the euro zone.
Atmospherics: The physical characteristics of the
library such as architecture, layout, signs. and
displays, color, lighting, temperature, access,
noise, assortment, prices, special events, etc,,
that serve as stimuli and attention attractors of
users to the library or information agency.
Attitudes: Enduring systems of positive or negarive
evaluations, emotional feelings, and action
 155

tendencies with respect to an object. Consumer's
isted
New overall liking or preference for an object'
reing Auctions: Going, going, gone. Holding an auction
nore can be an extremely efficient way for a seller to
lbe set the price of its products, especially if it does
are not have much information about how much
people may be willing to pay for thpm. Auctions
:tual fascinate econothists, especially those who
specialize in game theory. They have long been
a feature of the sale of art and antiques in the
ome rooms of firms such as Sotheby's and Christie's.
But in recent years they have played a growing
role in other parts of the economy, ranging from
ows
:tric 'the allocation of govemment-controlled
the functions required by the job. The screening
can involve criminal background checks,
verification of Social Security numbers, past
addresses,' age or year of
birth, corporate
affiliations, bankruptcies, liens, drug screening,
skills assessment and behavioral assessments. If
an employer outsources pre-employment
screening, the federal Fair Credit Reporting Act
requires that there must be a consent and
disclosure form separate from an employment
application.
Base Wage Rate (or base rate): The monthly salary
or hourly wage paid for a job, irrespective of
benefits, bonuses or overtime.

two broadcasting bandwidth to the awarding of work Balanced Scorecard: A strategic planning and
why . to subcontractors by governments and big firms management system that is used to tie business
ame using competitive tendering, and even more activities to the vision and strategy of the
ions recently the sale of goods over the Intemet. organization, improve internal and extemal
.tion Audience: The number and/or characteristics of the communications, and monitor perFormance
ling persons or households who are exposed to a against goals. Developed in the early 1990's by
vhat particular type of advertising media or media Drs. Robert Kaplan and David Norton, the
rder vehicle. In a library this could be a certain balanced scorecard measure four areas of
pay; number of people that,attend a library program. business: internal business processes, financial
rlity performance, customer knowledge, and learning
,ers. Audit: The process of reviewing the library's and growth.
rle's strengths and weaknesses (internally), and
opportunities and threats (externally) to shed Benchmark Job: A job commonly found in the
ies.
light on the agency's performance' workforce for which pay and other relevant data
:ted are readily available. Benchmark jobs are used to
be self-
Ian ,Autarky: The idea that a country should make pay comparisons and job evaluations.
big . sufficient and not take part in international trade.
The experience of countries that have pursued
Benchmarking: A technique using specific
Ito standards to make comparisons between
roth this Utopian ideal by substituting domestic different organizations or different segments of
:ted production for imports is an unhappy one. No
,be the organizations, with the intent of improving a
country has been able to produce the full range product or seryice.
the of goods demanded by its population at -

oil competitive prices. Indeed, those that have tried Benefits Administration: Software that helps
,uld
to do so have condemned themselves to companies manage and track employee
and
inefficiency and comparative poverty, compared participation in benefits programs such as
tof healthcare, flexible spending accounts, pension
with countries that engage in international trade.
Iem
plans, etc. This software helps automate and
:ate Average: A number that is calculated to summaries streamline the complex and otherwise time-
lnd a grcup of numbers. The most commonly used
consuming tasks of benefits administration.
)ng average is the mean, the sum of the numbers
. divided by however many numbers there are in Behavioral-based interview: An interview

the group. The median is the middle value in a technique used to determine whether a candidate

group of numbers ranked in order of size. The is qualified for a position based on their past
mode is the number that occurs most often in a behavior. The interviewer asks the candidate for
group of numbers' Take the following group of specific examples from past work experience

numbers: l, 2, 2, 9, 12, 13, l7 when certain behaviors were exhibited'

Background Screening / Pre-employment Behavioral competency: The behavior qualities and

Screening: Testing to ensure that employers are character traits of a person' These act as markers
lVe
hiring qualified and honest employees and that a
that can predict how successful a person will be
ion
prospective employee is capable of performing
 156

tlttint
1:lT :t

1lsis tt nRIttt :an:

possesses thenll

BI

LttT H

currcnt accOunt and the capital accOunt. The

current account includes:

BJ
1 1:[ l

P%s
a:
BJl
l: :LII e
gns profitability of traditional bank lending and has
lng led many banks to enter new areas of business,
to such as selling insurance policies and mutual
lct. funds. Increasingly, too, traditional banks are
lZZ selling off parcels of their loans in the financial
markets by. a process called securitization.
Bankruptcy: When a court judges that a debtor is
unable to make the payments owed to a creditor.
Horv bankrupts are treated can affect economic
gowth. If bankrupts are punished too severely,
would-be entrepreneurs may be discouraged
from taking the financial risks needed to make
the most of their ideas. However, letting off
defaulting debtors too readily may discourage
potential creditors because of moral hazard.
Barcode: An information technology application
that uniquely identifies various aspects of
product characteristics, increasing speed,
accuracy, and productivity of distribution
process. Most library materials are bar coded for
security.
Barriers to entry (or exit): How firms keep out
competition--an important source of incumbent
advantage. There are four main sorts of barriers.
)r Barriers to Entry: Barriers to entry are those things
g that make it difficult for a new company to
)r compete against companies already established
in the field. Examples include such things as
lt . patents, trademarks, copyrighted technology, and
d ' a dominant brand.
y
Barter: Paying for goods or services with other
r
goods or services, instead of with money. It is
often popular when the quality of money is low
S
or uncertain, perhaps because of high inflation or
t counterfeiting, or when people are asset-rich but
cash-poor, or when taxation or extortion by
l criminals is high. Little wonder, then, that barter
l
became popular in Russia during the late 1990s.
t
Basis point: One one-hundredth of a percentage
point. Small movements in the interest rate, the
exchange rate and bond yields are often
described in terms of basis points. If a bond
yield moves from 5.25Vo to 5.45Vo, it has risen
by 20 basis points.
Bear: An investor who thinks that the price of a
particular security or class of securities(shares,
say) is going to fall; the opposite of a buli.
Behavioral Economics: A branch of economics that
concentrates on explaining the economic
' decisions people make in practice, especially
when these conflict with what conventional
economic theory predicts they will do.
Behaviorists try to augment or replace traditional
ideas of economic rationality (homo
economicr+s) with decision-making models
borrowed from psychology. According ro
psychologists,, people are disproportionately
influenced by a fear of feeling regret and will
often forgo benefits even to avoid only a small
risk of feeling they have failed. They are also
prone to cognitive dissonance, often holding on
to a belief plainly at odds with new evidence,
usually because the belief has been held and
cherished for a long time. Then there is
4nchoring: people are often overly influenced by
outside suggestion. People apparently also suffer
from status quo bias: they are willing to take
bigger gambles to maintain the status quo than
they would be to acquire it in the first place.
Benchmarking: Benchmarking is the process of
gathering information, about other companies in
our industry to compare your performance
against and to use to set goals.
Benefit segmentation: The process of grouprng
users into market segments on the basis of the
desirable consequences sought from the product.
For example, the library market for children's
books, may include children and parents who are
benefiting by developing the library and reading
habit, and or recent immigrants who benefit
from learning the language of the new country.
Each is receiving a benefit from the product or
service.
Benefit-cost analysis: Relationship of projected
outcomes to projected costs, with both outcomes
and costs expressed in monetary terms.
Black economy: If you pay your cleaner or builder in
cash, or for some reason neglect to tell the
taxman that you were paid for a service
rendered, you participate in the black
or
underground economy. Such transactions do not
normally show up in the figures for GDP, so the
black economy may mean that a country is much
richer than the official data suggest. In the
United States and the UK, the black economy
adds an estimated 5-l0%o to GDP; in Italy, it
may add 3OVo. As for Russia, in the late 1990s
estimates of the black economy ranged as high
as 50Vo of GDP.
Black-Scholes Equation: The Black-Scholes
equation is used to determine the value or price
 158
of a stock option. It is a comparatively simple
formula, with only a few common variables,
developed by Fisher Black and Myron Scholes
in 1973.It makes some simplifying assumptions
about free-market economics, but it has become
an industry standard.
Block group: (census) A subunit of a census tract or
block numbering area, typically having 1,000
residents.
Block numbering area: (census) Similar to.a census
tract; a term used by the Bureau of the census
for areas lacking census tracts.
Block: (census) These are the smallest of the census
geographic designations. They are roughly
equivalent to a city block and provided for areas
lacking census tracts.
Body language: The nonverbal signals
communicated in interactions through facial
expressions, arms, legs and hands--or nonverbal
communication. This can be positive ( a smile)
or negative Books on reserve.
Bottom Line: Bottom Line refers to the bottom line
of an Income Statement. The bottom line shows
the Net Income Available To Shareholders.
When a company talks about increasing the
bottom line, they moan doing things to either
increase the revenue or decrease expenses so the
company's income increases.
Bottom-up process (in planning): To transmit ideas
and recommeqdations from the bottom of an
organization to its higher levels
Bounded rationality: A theory of human decision
making that assumes that people behave
rationally, but only within the limits of the
information available to them. Because their
information may be inadequate (bounded) they
make take decisions that appear to be irrational
according to traditional theories about homo
economicus (economic man).
Brainstorming: A structured method to address
problems by asking people to rapidly propose
ideas, while the group temporarily withholds its
comments and criticisms.
Brand: A name, term, design, symbol, or any other
feature that identifies one seller's good or
service as distinct from those of other sellers.
The legal term for brand is trademark. A brand
may identify one item, a family of items, or all
items of that seller. If used for the firm as a
whole, the preferred term is trade name. Ubrary
could be considered a trade name. C:
Break-Eyen Point: The break-even point is the
point at which income matches expenditures. CI
Typically, initial expenditures are high. It takes
time for the income to reach the same level. The
break-even point can apply to a product, an
investment, or the entire company's operations.
Broadcast television: A method of distributing
television signals by means of stations that
broadcast signals over channels assigned to
specific geographic areas.
Budget: The detailed financial component of the
strategic plan that guides the allocation of
resources and provides a mechanism for
identifying deviations of actual from desired
performance so corrective action can be taken. A
budget assigns a dollar figure to each revenue
and expense related activity. A budget is usually
prepared for a period of one year by each
component of an organization.. A budget
provides both a guide for action and a means of
assessing performance. A budget is a library's
post control system.
Bureaucratic organization: Official decision
making is circumscribed by laws, rules, and
regulations which often result in inflexibility,
"red tape" and slowness to act. A hierarchical
business structure, unlike business that operates
in a competitive environment that does not
reward slow decision making if it results in poor
sales or customer service. Library's are often
Burnout: Bumout is the term given to the physical
or psychological condition induced in workers
by overwork or overexposure to stress in the
workplace.
Cafeteria Plan: A plan in which an employer offers
employees a variety of different benefits. The
employee is able to choose which benefits would
fit their individual needs. Examples of benefits
offered in the cafeteria include group+erm life
insurance, dental insurance, disability and
accident insurance, and reimbursement of
healthcare expenses.
Balanced Scorecard: The balanced scorecard is a
strategic management and measurement system
that links strategic objectives to a comprehensive
range of key performance indicators, to provide a
balanced view.

ily
Can best compete in the markets it elects to serve.
The strategic plan is based upon the totality of
he
Cannibalize: Eating people is wrong. Eating your
:CS own business may not be. Firm:s used to be
he reluctant to launch new products and services
that competed with what they were already
an
' doing, as the new thing would eat into
(cannibalize) their existing business. In today's
ng
innovative, technology-intensive economy,
rat
however, a willingness to cannibalize is more
to
often seen as a good thing. This is because
innovation often takes the form of what
economists call creative destruction, in which a
superior new product destroys the market for
existing products. In this environment, the best
course of action for successful firms that want to
avoid losing their market to a rival with an
innovation may be to carry out the creative
destruction themselves.
CAN-SPAM Act (Controtling the Assault of Non-
Solicited Pornography and Marketing Act):
that regulates
Congressional legislation
commercial emails (i.e. Commercial
or promotion) and sets clearly
advertisement
n
d defined opt-out standards. Any billing,
warranties, product updates or customer service
I
information is not included in this act. E-mail
S
, newsletters that are not considered
.advertisements are also exempt.
t appraisal. Compensation is effectively managed
r Capitated Pricing: Vendors deliver contracted
services for a set amount of money per employee
I
per month. . This can be a risky strategy for.
vendors whose profitability is directly tied to
: how much the services are or are not used (e.g.,
eaps).
Carrier: A vendor in the employee benefits space.
More commonly used in reference.to health care.
Carriers (e.g., Met Life, Blue Cross, Aetna, etc.)
Sell their products through Brokers &
Consultants, but may also sell .to an employer
directly.
Carve-Out: The elimination of coverage of
specific category of benefit services (e.g. Vision
care, mental health/psychological services, or
prescription drugs). The employer opts out of
certain services with one vendor and contracts
another to deliver them.
Change management: A deliberate approach for
transitioning individuals or organizations from
one state to another in order to manage and
159
monitor the change. Change management can be
conducted on a continuous basis, on a regular
schedule (such as an annual review), or when
deemed necessary on a program-by-program
basis.
Coaching: A method of training an individual or
group in order to develop skills or overcome a
performance problem. Coaching can be between
a manager and a subordinate or an outside
professional coach and one or more individuals.
There are many coaching methods and models,
but close observation, accountability and
feedback on progress and performance are
usually included.
COBRA: Consolidated Oumibus Budget
Reconciliation Act. 1985 Federal law that
requires employers to offer continued lrealth
insurance coverage to terminated employees and
their beneficiaries. The coverage may continue
for the following cases: termination of
employment, change in working hours, change
in dependent status or age limitation, separation,
divorce, or death.
Collective Bargaining: One or more unions meeting
with representatives from an organization to
negotiate labor contracts.
Compensation: Pay structures within an
organization. It can be linked to employee
if performance is measured adequately.
Competency-based pay: Competency-based pay,
alternately known as skill-based and knowledge-
based pay, determines compensation by the type,
breadth and depth of skills that employees gain
and use in their positions.
Competency Modeling: A set of descriptions that
identify the skills, knowledge, and behaviors
. needed to effectively perform in an organization.
Competency models assist in clarifying job and
work expectations, maximizing productivity, and
aligning behavior with organizational strategy.
a
Competitive advantage: In the context of Human
Resources, competitive advantage refers to the
quality of the employees, as a competing
organization's systems and processes can be
copied but not its people. All other things being
equal among competing companies, it is the
company with better employees that has the
competitive advantage.
 160

cOnrldentiality agreelllent:An agrcement bctwecn

an cmp10yer and cmp10yce in which thc
should possess these qualities in order to

Cdav
advance business goals.

ila
p
F Cost-Benefit Analysis: The ability to measure the
costs associated with a specific program, project,
Constructive disn ssal: An cmployer's behavior
or benefit. The cost is then compared to the total

rn:::1 in
t :
benefit or value derived.

r:cttittTttc ttLcfI: Cost-Per-Hire: The costs linked to recruiting talent.

These costs can include advertising, agency fees,
glVelenthioniF: C the ght tO scek relocation costs, and training costs.

Capacity building: (in relation to development

s
planning) The process of improving organizations,
human resources, and legal and regulatory
frameworks.

iil. Capacity: The amount a company or an economy

can produce using its current equipmeni,
workers, capital and other resources at full tilt.
Cap
Judging how close an economy is to operating at
full capacity is an important

iI
ingredient of

monetary policy, for if there is not enough spare

capacity to absorb an increase in demand, prices
are likely to rise instead. Measuring an
Contingent staff:Tcmporary staff that supplclncnts economy's output gap - how far current output is.
above or below what it would be at full capacity_'
a
ii : : g

havc nuctuating seasonal staff dcmands or are in
is difficult, if not impossible, which is why even
the best-intentioned central bank can struggle to

: :
p
V
:
ltr
Contract fOr ser ces: An agrcclnent with a self
emp10yed person fOr a specificjob.
Contract 9f Service: Another te.11l fOr employlnent
agreement.
Conversion Rat : A cOnversiOn ratc is dcfined as
the`relationship between visitOrs tO a wcb sitc
and actiOns cOnsidered tO be a`cOnversiOn',such
as a sale or requcst tO receivc lnore infollllation.
A 2006 study by web sidc stOry shOwed the
fo1lowing convOrsiOh stats for these mttOr scarch
c gines:AOL Laffic 6.17%,MSN traffic 6.03%,
Yahoo traffic 4.o7%and Googie traffic 3.83%.
keep down inflation. When there is too much
spare capacity, however, the result can be
deflation, as firms and employees cut their prices
and wage demands to compete for whatever
demand there may be.
Capital adequacy ratio: The ratio of a banks CaI
capital's to its total assets required by regulators
to be above a minimum (,.adequate',) level so
that there is little RISK of the bank going bust.
How high this minimum level is -may vary Cal
according to how risky a bank's activities are.
Capital asset pricing model: A method of valuing
assets and calculating the cost of capital (for an
alternative. The capital asset pricing model
(CAPIO has come to dominate modern finance.

[
: F Capital controls: govemment-imposed restrictions
on the ability of capital to move in or out of a
t

L 1: country. Examples include limits on foreign
investment in a country's financial markets, on
r CVen hghe
Mal: l.mnge direct investment by foreigners in businesses or
property, and on domestic residents' investments
Ca

Core competencies:The particular set of strcngths, abroad. Until the 20th century capital controls
cxpeHencc, knowledge and abilities that were unco[unon, but many countries then
differentiate a cOmpany from its cOmpctitOrs and imposed them. Following the end of the second
provide cOmpetitive advantage. EInploye s world war only Switzerland, Canada and the
United States adopted open capital regimes.
 161
C)ther Hch countries rrnintained strict controls
and many made theln tougher du ,g thC 1960s
and 1970s.This chang d in the 1980s and early
1990s,whcn most developco count es scrapped
their capital co,trols..
Capitalight:V en capital flows rapidly out of a
country, usually beca,Se solnething happens
which causes investors suddenly to lose
confidencc in its cconomy.(Strictly speaking,
the probleln is not so much the rnoney lcaving,
but rathcr that investorS in general suddenly
lowcr their valuation of all the assets of thc
country.)ThiS iS particularly worying whcn the
flight capital bclongsl to thC COuntry's own
citizcns.This is often ass iated with a sharp fall
ln the exchange rates of the abandoncd country's
currency.
Capital gains:The proit from the salc of a capital
asset,such as a share or a property.Capital gains
are suttcct tO taxation in most COuntrics.Somc
econorllllsts argue that lcapital g,ins ShOuld be
taxed lightly(if at all)comparcd with othcr
sources ofincolne.They argue thatthe less tax is
levied on capit1l gains, lhe greater is thc
incendve to put capital to productive use. Put
another way,capital gains tax is effcctively a tax
on capitalisln. However, if capital gains are
iVen t00 fricndly a treatmcnt by the tax
autho dcs,accountants will no doubt invent an
s6rts of creative ways to disguisc othcr incolne
as capital gains.
Capital intensive: A production process that
involves comparatively large amounts of capital;
the oppositc of labor intensive.
Capital llllarkets:Markcts in secu des such as
bonds and shares. Govcmlnents and companles
use them to raisc longcr tcll l capital from
investors, although few of e lLons of
capital Inarket transactions every day inv01ve the
issucr of the secu ty. NIIost tradcs are in the
secondary IIlarkets,between investors who have
bought the secu ties and other invcstors who
wantto buy them.Contrast with money nlarkets,
where short tellll capital is raised.
Capital strllcture:The COmposition of a company's
IIllXture Of debt and equity inancing. A fillll'3
debt cquity ratio is oftcn rcferred to as its
gea ng. Taking on more debt is known as
gca ng up,or increasing lever age.In the 1960s,
Franco Modigliani and Merton Mllcr(1923-
2000)publiShed a seHes of articlcs arguing that
it did not matter whether a company financed its
activities by issuing debt, or equity, or a mixture
of the two. But, they said, this rule does nor
apply if one source of financing is treated more
favorably by the taxman than another. In the
United States, debt has long had tax advantages
over equity, so their theory implies rhat
American firms should finance themselves with
debt. Companies also finance themselves by
using the profit they retain after paying
dividends.
Capital: Money or assets put to economic use, the
life-blood of capitalism. Economists describe
capital as one of the four essential ingredients of
economic activity, the factors of production,
along with land, labor, and enterprise.
Production processes that use a lot of capital
relative to labour are capital intensive; those that
use comparatively little capital are labour
intensive. Capital takes different forms. A firm's
assets are known ag its capital, which may
include fixed capital (machinery, buildings, and
so on) and working capital (stocks of raw
materials and part-finished products, as well as
money, that are used up quickly in the
production process). Financial capital includes
money, bonds and shares. Human capital is the
economic wealth or potential contained in a
person, some of it endowed at birth, the rest the
product of training and education, if only in the
university of life. The invisible glue of
relationships and institutions that holds an
economy together is its social capital.
Capitalism: The winner, at least for now, of the
battle of economic 'isms'. Capitalism is a free-
market system built on private ownership, in
particular, the idea that owners of capital have
property rights that entitle them to eam a profit
as a reward for putting their capital at risk in
some form of economic activity. Opinion (arld
practice) differs considerably among capitalist
countries about what role the state should play in
the economy. But everyone agrees that, at the
very least, for capitalism to work the state must
be strong enough to guarantee property rights.
According to Karl marx, capitalism contains the
seeds of its own destruction, but so far this has
proved a more accurate description of Marx's
progeny, communism.
Cartel: An agreement among two or more firms in
the same industry to , co-operate in fixing
PRICES and"/or carving up the market and
restricting the amount of output they produce. It

is particularly corlmon when there is an
oligofly. Ihe aim of such collusion is to increase
profit by reducing competition. Identifying and
breaking up cartels is an important part of the
competition policy overseen by antitrust
watchdogs in most countries, although proving
the existence of a cartel is rarely easy, as firms
are usually not so careless as to put agreements
to collude on paper. The desire to form cartels is
strong. As Adam smith put it, 'People of the
same trade seldom meet together, even for
merriment and diversion, but the conversation
ends in a conspiracy against the public or in
some contrivance to raise prices.'
Catch-up effect: In any period, the economies of
, countries that start off poor generally grow faster
than the economies of countries that start off
rich. As a result, the national income of poor
countries usually catches up with the national
income of rich countries. New technology may
even allow developing countries to leap-frog
over industrialized countries with older
technology. This, at least, is the traditional
economic theory. In recent years, there has been
considerable debate about the extent and speed
of convergence in reality.
Cause-and-effect analysis: (in planning) A method
to help a group examine underlying explanations
(causes) for what they observe (effects).
Census: A complete canvass of a population.
Central bank A guardian of the monetary system.
A central bank sets short-term interest rates and
oversees the health of the financial system,
including by acting as lender of last resort to
commercial banks that get into financial
difficulties. The Federal Reserve, the central
bank of the United States, was founded in 1913.
The Bank of England, known affectionately as
the 'OId Lady of Thread needle Street', was
established in 1694,26 years after the creation of
the world's first central bank in Sweden. With
the birth of the EURO in 1999, the monetary
policy powers of the central banks of 11
European countries were transferred to a new
European central bank, based in Frankfurt.
Closed economy: An economy that does not take
part in intemational trade; the opposite of an
open economy. at the turn of the century about
the only notable example left of a closed
economy is North Korea.
162
Clustering: A statistical method of forming natural
groupings in which a number of important
characteristics of a large diverse group are
identified in order to define target markeh. For a
Iibrary such a cluster might include higher
education levels, and income. (Wood and
Koontz)
Community analysis: For a public library this is a
market research exercise reviewing library
statistics, population served characteristics, users
and other stakeholders in the library
'characteristics to better profile the library's
market area. (Wood and Koontz)
Collateral: An ASSET pledged by a borrower thar
may be seized by a lender to recover the value of
a loan if the borrower fails to meet the required
interest charges or repayments.
Collections are not, the library is differentiating the
video collection from the video store.
Command economy: When a government controls
all aspects of economic activity.
Commoditization: The process of becoming a
commodity. Microchips, for example, started out
as a specialized technical innovation, costing a
lot and eaming their makers a high profit on
each chip. Now chips are largely homogeneous:
the same chip can be used for many things. and
any manufacturer willing to invest in some fairly
standardized equipment can make them. As a
result, competition is fierce and prices and profit
margins are low. Some economists argue that in
today's economy the faster pace of innovation
will make the process of commoditization
increasingly corrrmon.
Communism: The enemy of capitalism and now
nearly extinct. Invented by Karl Marx, who
predicted that feudalism and capitalism would be
succeeded by the 'dictatorship of the proletariat',
during which the state would 'wither away' and
economic life would be organized to achieve
'from each according to his abilities, to each
according to his needs'. The Soviet Union was the
most prominent attempt to put communism into
practice and the result was conspicuous failure,
although some modern followers of Marx reckon
' that the Soviets rnissed the point.
- Community relations: The library's interactions
with the locality in which it operates, with
emphasis on disseminating library-related
irrformation to foster trust in the library or
information organization's activities.
 163
ral
Competition: The rivalry among sellers trying to
ant
achieve such goals as increasing profits, market
lre
share and sales volume by varying the elements
ra
of the marketing mix: price, product, distribution
lCr
and promotion. The agency changes to better
nd
meet.consumer wants and needs. For a library
competition may be bookstores, community
events, video stores or even other libraries, oi
other agencies vying for pubtic funds.
Complementary goods: When you buy a computer,
you will also need to buy software. Computer
hardware and software are therefore
complementary goods: two products, for which
rlat an increase (orfall) in demand for one leads to
Of an increase (fall) in demand for the other.
rcd Complements are the opposite of substitute
goods. For instance, Microsoft Windows_based
personal computers and Apple Macs are
the
substitutes.
Consensus: A feeling within a group that its
ols
conclusion representsl a fair summary of the
conclusions reached by the individual members
of the group. Each individual accepts the group's
conclusion on the basis of logic and feasibility.
Consumer behavior: The behavior of the consumer
or decision maker in the market place of
products and services. Library user behavior is
in library htlrature under
often captured use
, studies.
Coniumer characteristics: The demographic,
lifestyle and personality characteristics of the
.
consumer. For a library this would be the user.
Consumer conlidence: How good consumers feel
about their economic prospects. Measures of
average consumer confidence can be a useful,
though not infallible, indicators of how much
consumers are likely to spend. Combined with
measures such as business confidence, it can
shed light on overall levels of economic activity.
Consumer prices: What people are usually thinking
of when they worry about inflation. The pricei
paid by whoever finally consumes goods or
services, as opposed to prices paid by firms at
various stages of the production process.
Consumer satisfaction: The degree to which a
consumer's expectations are fulfilled or
surpassed by a product. User satisfaction with
library services and materials is often difficult to
determine because: 1) there is no clear ring of
the cash register at rhe end of the day; 2) privacy
ibsues concerning use of library materials and
services usually deter marketingtype exit
interviews; 3) and little'research is conducted in
this area due to lack of expertise.
Consumer surplus: The difference between what a
consumer would be willing to pay for a good or
service and what that consumer actually has to
pay. Added to produces surplus, it provides a
measure of the total economic benefit of a sale.
Consumer: The ultimate user of goods, ideas or
services. Also the buyer or decision maker, for
Contihgency planning: Developing plans to provide
altemative plans to the main plan.
Continuous improvement: To raise the
performance of an organization through a never-
ending process of choosing and adjusting
missions, goals, objectives, and action strategies.
Convenience product: Aconsumer good and/or
service (such as soap, candy bar, and shoe shine)
that is bought frequently, often on impulse, with
little time effort spent on the buying process. A
convenience product usually is low-priced and is
widely available. For.a public library this type of
material might be newspapers or magazines, or
perhaps a quick selection of other materials with
little browsing or research. These materials or
services are usually located within facility for
easy and quick access.
Convenience sample: A non probability sample of
. individuals who just happen to be where the
study is being conducted when it is being
conducted. For example, a library. could
interview people exiting the library asking,
'Were you satisfied with the materials and
services, if not why?'
Copyright: A copyright offers the owner of original
work that can be printed, recorded or ',fixed" in
any manner the sole right to reproduce and
distribute the work, to display or perform it and
to authorize other to do so., during the author's
lifetime and for fifty years thereafter.
Core product: The central benefit or purpose for
which a consumer buys a product or service. The
core product varies from purchaser to purchaser.
For a library user the core benefit of checking
out a book, may be for one user that there is no
charge, and to another the availability of a work
which can no longer be purchased.
Correlation analysis: A statistical technique used to
measure the closeness of the linear relationship
between two or more interval scaled variables. For
 164

example public library use has a close linear CreditOr: A lender, whcther by making a loan, .Datab
relationship with people
of higher education and buying a bond or a110wing money Owed nOw tO an
income. be paid in the futurc. de
Cost of capital: The amount a firm must pay the an
CHtical path methOd: (in planning and
owners of capital for the privilege of using it. lib
prograIImng)A method ofscheduling to shOw a
This includes interest payments on corporate ca.
logical and efficient Order of activities and
debt, as well as the dividends generated for sol
events,
shareholders. In'deciding whether to proceed mi
with a project, FIRMS should calculate whether Crony capitalism:An aplrOach to business based
Deadv
the project is likely to generate sufficient on looking after yourself by looking Out for y9ur
OD,
revenue to cover all the costs incurred, including own.At least until the c sis Of thc late 1990s,
re(
the cost of capital. Calculating the cost of equity some Asian companies, and evcn govemments,
inc
capital can be tricky. were notable for aWarding contracts only to
pa
family and fdends.This was often a folll1 0f
Cost-benefit analysis: A method of reaching comption,resulting in econoIIllc inefficiency.
WC

be
economic decisions by comparing the costs of
Cross Training:CrOss training is training someOnc sul
doing something with its benefits. It sounds
in anothcr activity that is related tO thcir curent ins
simple and common-sensical, but, in practice, it
work. The nalne comes fronl the fact that yOu pe(
can easily become complicated and is much are tralning thcm acrOss a broadcr spcctrum of an.
abused. With careful selection of the the organizatiOnts wOrk.
assumptions used in cost-benefit analysis it can Decenr
be made to support, or oppose, almost anything. Crowding out:when the state docs s6mething it of
may discOurage, Or crowd out, p vatc sector ne)
This is particularly so when the decision being
attcmpts tO dO thc salnc thing.At limQs, 19!
con templated involves some cost or benefit for
cxcessive gOvemment borrowiig has been wh
whieh there is no market pRICE or which, blamed fOr low pnvate sector bOrrowing and, des
because of an externality, is not fully reflected in consequently,10w investttnt and oeCausc the cer
the market price. Typical examples would be a cconorrllc rctums On public borrowing are libr
project to build a hydroelectric dam in an area of typically 10wer than thosc on p vat dcbt,
Decent
outstanding natural beauty or a law to require especillly COrporate debt)s10Wer ecOnoIIllc
ma
factories to limit emissions of gases that may growth: This has becolne less of a concern in
go'
cause ill-health. rccent ycars as gOvemment indcbtedness has
go'
declined and, bccause of globalizatiOn, 1 11ls
Credit: A loan extended or (sometimes) taken by,
have becolne morc able to raisc CAPrrAL Decisio
for example, delayed payment of an invoice.
outside their holne 9oun,y.9rOWding Out may SYS

Credit creation: Making loans. Often the amount of also colne from state spending on things that col
credit creation is subject to regulation. Icnders mght be providedl lnorc cfficLntly by thc sof
may have limits on the amount of loans they can p vate se tor, such as he,lth care, or even gat
make relative to the assets they have, so that through cha ty,redistribution: bus
they run little risk of bankruptcy. A central bank bas
Culture: The set of l amed valucs, norlns, and
tries to keep the amount of credit creation below difl
behaviors that are sharcd by a socicty and arc
the level at which it would increase the money
designed tO increaS the prObability of the
int
supply so much that inflation accelerates. This anc
socicty's survival. Thesc include shared
was never easy to get right even when most
superstitions, mythl, folkways, InOres `and ull
Iending was by BANKS, but it has become much
behavior pattems that arC rewarded or punishea. a8r
harder with the recent growth of non-bank
lending, such as by credit-card companies and
For libranes, the understanding pf differcit l 'ifl
culturcs,as new iIIlmgrant groups FnOVe intO the l pay
retailers. Missing text
markct arca is extreFnely impo ant tO takc into l the
Credit crunch: When banks suddenly stop lending, considcration,in 6rdcr tO pro dc the needcd l def
or bond market liquidity evaporates, usually mate als and services. rat

because creditors have becomJ extrcmely risi< loar

[
averse. SOn
oft
 165
A compendium of information on current
Database
and prospective users that usually includes
demographic data as well as use data, volume
and content. This is a privacy issue in American
libraries. The address data of library users Chn be
called "point-of-sale (use) data and is a rich
source of marketing data for library
management.
,d
Deadweight cosUloss: The extent to which the value
r and impact of a tax, tax relief or SUBSIDY is
s, reduced because of its side-effects. For instance,
S,
increasing the amount of tax levied on workers'
:o pay will lead some workers to stop working or
rf work less, so reducing the amount of extra tax to
be collected. However, cieating a tax relief or
to to buy life
subsidy encourage people
insurance would have a deadweight cost because
. people who would have bought insurance
) anyway would benefit. ,
Decennial census kr the U.S. this is a complete count
of the population every ten years. For example the
next count is the year 2000, and previous years
1990, 1908, etc. There is also a sample census
which is taken for hundreds of other population
descriptive characteristics. For ttre library field
census data are identified that srongly indicate
library use through research.
Decentralization: The distribution of decision
rdaking and operations to lower levels of
, government (and sometimes to non-
I governmentalorganizations).
Decision support'system (DSS) A decision support
system (marketing definition) is a systematic
collection of data, techniques and supporting
software and hardware by which an organization
gathers and interprets relevant information from
, business and the environment and turns it into a
, basis for making management decisions. A DSS
differs from a management information system
in that it is designed to answer precise questions
and what/if questions.
befault:Failure to fulill thc terlns of a loan
. agreement. For example, a borrower is in default
if he or she does not make scheduled interest
payments on a loan or fails to pay off the loan at
the agreed time. Judging the likelihood of
default is a crucial part of pricing a loan. Interest
rates are set so that, on average , a portfolio of
loans will be profitable to the creditor , even if
some individual loans are loss-making as a result
of borrowers defaulting.
Deficit: In the red - wheh more rnoney goes out than
comes in. A budget deficit occurs when public
spending exceeds. government revenue. A
current account deficit occurs when exports and
inflows from private and official tranSfer are
worth less than imports and transfer'outflows.
Defined Benefit Plap: A retircment plan that
participants a liimp-sum arhriunt that has
calculated using formulas that can include
earnings and length of service.
Defined Contribution: A pension plan that clearly
defines the amount of contributions, which is
usually a percentage of an employee's salary'
The benefits payable at retirement depend on
several factors including future investment
return and annuity rate at retirement.
Deregulation: The removal or revision of laws that
regulate the supply of goods and services.
Direct Marketing: Direct marketing is a sales
method by which advertisers approach buyers
directly with products or services. The most
cortmon forms of direct marketing are telephone
sales, emails and print (e.g., catalogs,
brochures). Successful direct marketing also
involves renting or compiling / maintaining a
database of qualified buyers. According to the
Direct Marketing Association, average response
rates for print direct mail (flat mail) are 2.73Vo),
catalogs are 2.45Vo and E-mail is l.l27o'
Hrmarketer.com research shows emails that offer
a compelling "of[er" in the form of a free
downloadable white paper or research report (on
a topic that resonates with your buyer) are
significantly more likely to generate a response
than promotional offers' In allindustnes,
marketers are shifting their spending from brand
building tactics like print advertising to direct
response-oriented promotional channels such as
direct marketing and interactive marketing
(online advertising). The hrmarketer.com
research report Trends in I{R Marketing
(http //www.hrmarketer.com/tr ome/whitepaper-m
:
ain2.htm) verifies this trend in the HR
marketplace
Disability: The inability to perform all or part of
one's occupational duties because of an accident
or illness. This can be due to a sickness, injury
or mental condition and does not necessarily
have to have been caused by the joti itself.
Disability Income Insurance: Health insurance that
is paid to a policyholder who experiences a loss
of income due to an injury or an illness'
 166
Disability insurance plans pay a portion of the
salary of a disabled worker until his/her
retirement age.
Disciplinary procedure: A standardized process
that an organization commits to when dealing
with an employee who has breached the terms of
employment in some way. If this procedure is
not standardized and fair, the organization may
face discrimination or other legal charges.
Discrimination: The favoring of one'group of
people, resulting in unfair treatment of other
groups.
Disease Management: An information-based
process involving the continuous improvement of
care (prevention, treatment and management)
throughout the delivery of health care. Effective
disease management can mean decreased health
care costs.
Distance Learning: Educational programs using
instruction via video or audio tapes, computers
etc. Instead of attending a class in one
centralized location.
Distributive bargaining: Anegotiation between.
competing parties that involves the distribution
of resources. One party prevails, to the detriment
of the other.
Dual Labor Markets: a situation in an organization
where a smaller Core Labor Force and a insurance fund. If a bank defaults, this
Peripheral Labor Force co-exist.
Due diligence: In mergers and acquisitions, the
process of carefully investigating the details of
an investment or purchase to assess risk and
potential value and reward.
Delegation: The transfer of planning and
management functions to organizations which
are funded by a central government, but which
do not come under its operational control.
Delivery system: (in management science)
Organizational arrangements to provide program
services to the interest groups (activities,
information, materials, physical outputs, etc.).
Delphi technique - A frequently used method in
futures research to gain consensus opinion
'among experts about likely future events,
through a series of questionnaires.
Delphi: (in forecasting the future) A method of
obtaining forecasts from a panel of experts.
A graph showing the relati
Demand curve:
between the price of a good and the amount
demand for it at different prices.
Demand The number of units of a product sold
market over a period of time.
Demarketing The process of reducing the
for a product--or decreasing consumption.
Deming Cycle The Deming Cycle is a set
activities (Plan, Do, Check, Act) designed
drive continuous improvement. Initi
implemented in manufacturing, it has
applicability in business. First developed
Walter Shewhart, it is more commonly called
Deming cycle in Japan where it was populari
by Edwards Deming.
fro
Demographics Objective characteristics a
consumers such as age, income, education, pol
or occupation (Assael.) For public libraries re8
the US, most relevant demographics for
education and age. be
Deposit insurance: Protection for your savings, Ec
case your bank goes Bust. Arrangements rhi
around the world, but in most countries ris
co
insurance is required by the government
paid for by banks (and, ultimately, let
customers), which contribute a small slice ha
their assets to a central, usually government- wi
un
guarantees its customers' deposits, at least up
a By
certain amount. reassuring ba
customers that their cash is protected,
insurance aims to prevent them fiom panicki
and causing a bank run, and thereby red
systematic risk. The United States i
in 1933, after a massive bank panic led
widespread 'bankruptcy, deepening
depression.
Depreciation: A fall in the value of an asset ot
currency; the opposite of appreciation.
Depression: A bad, depressingly
recession in economic activity. The te
definition of a recession is two
quarters of declining output. A slump is
output falls by at least lOVo; a depression is
even deeper and more prolonged slump.
Deregulation: Cutting red tape. The process
removing legal or quasi-legal restrictions on
amount of competition, the sorts of
done, or the prices charged within a part
industry. During the'last two decades of the
 165
Database A compendium of information on current
t,
and prospective users that usually includes
.o
' demographic data as well as use data, volume
and content. This is a privacy issue in American
d
' libraries. The address data of library users cbn be
a called "point-of-sale (use) data and is a rich
rd source of marketing data for library
management.
Deadweight cost/loss: The extent to which the value
and impact of a tax, tax relief or SUBSIDY is
reduced because of its side-effects. For instance,
increasing the amount of tax levied on workers'
pay will lead some workers to stop working or
work less, so reducing the amount of extra tax to
be collected. However, cr'eating a tax relief or
to buy life
subsidy to encourage people
insurance would have a deadweight cost because
,. people who would have bought insurance
r anyway would benefit.
Decennial census kr the U.S. this is a complete count
ir of the population every ten years. For example the
or next count is the year 2000, and previous years
)s, 1990, 1908, etc. There is also a sample census
en which is taken for hundreds of other population
rd, descriptive characteristics. For ttre library field
he census data are identified that srongly indicate
rre library use through research.
bt, Decentralization: The distribution of decision
uc ' ntaking and operations to lower levels of
in goveinment (and sometimes to non-
ras
TIS
governmental organizations).
\L Decision support'system (DSS) A decision support
.ay system (marketing definition) is a systematic
rat collection of data, techniques and supporting
.he software and hardware by which an organization
'en gathers and interprets relevant information from
business and the environment and tums it into a
basis for making management decisions. A DSS
differs from a management information system
in that it is designed'to answer precise questions
and what/if questions.
: Failure to fulfill the terms of a loan
agreement. For example, a borrower is in default
if he or she does not make scheduled interest
payments on a loan or fails to pay off the loan at
the agreed time. Judging the likelihood of
' default is a crucial part of pricing a loan. Interest
rates are set so that, on average , a portfolio of
loans will be profitable to the creditor , even if
some individual loans are loss-making as a result
of borrowers defaulting.
Deficit: In the red - wheh rnore rnoney goes out than
comes in. A budget deficit occurs when public
spending exceeds. government revenue. A
current account deficit occurs when exports and
inflows from private and official transfer are
worth less than imports .and transfer'outfl ows'
Defined Benefit. Plap: A retirement plan that pays
participants a liimp-sum arhount that has been
ialculated using formulas that can include age,
earnings and length of service.
Defined Contribution: A pension plan that clearly
defines the amount of contributions, which is
usually a percentage of an employee's salary'
The benefits payable at retirement depend on
several factors including future investment
retum and annuity rate at retirement.
Deregulation: The removal or revision of laws that
regulate the supply of goods and services.
Direct Marketing: Direct marketing is a sales
method by which advertisers approach buyers
directly with products or services' The most
corlmon forms of direct marketing are telephone
sales, emails and print (e.g., catalogs,
brochures). Successful direct marketing also
involves renting or compiling / maintaining a
database of qualified buyers. According to the
Direct Marketing Association, average response
rates for print direct mail (flat mail) ate 2.73Vo),
catalogs are 2.45Vo and E-mail is l.l27o'
Hrmarketer.com research shows emails that offer
a compelling "offer" in the form of a free
downloadable white paper or research report (on
a topic that resonates with your buyer) are
significantly more likely to generate a response
than promotional offers. In allindustries,
marketers are shifting their spending from brand
building tactics like print advertising to direct
response-oriented promotional channels such as
direct marketing and interactive marketing
(online advertising). The hrmarketer.com
in IIR
research report Trends Marketing
(http ://www.hrmarketer.com/home/wh itepaper-m
ain2.htm) verifies this trend in the HR
marketplace
Disability: The inability to perform all or part of
one's occupational duties because of an accident
or illness. This can be due to a sickness, injury
or mental condition and does not necessarily
have to have been caused by the jo6 itself.
Disability Income Insurance: Health insurance that
is paid to a policyholder who experiences a loss
of income due to an injury or an illness.

Disability insurance plans pay a portion of the
salary of a disabled worker until hisftrer
retirement age.
Disciplinary procedure: A standardized process
that an organization commits to when dealing
with an employee who has breached the terms of
employment in some way. If this procedure is
not standardized and fair, the organization may
face discrimination or other legal charges.
Discrimination: The favoring of one'group of
people, resulting in unfair treatment of other
groups.
An
Disease Management: information-based
process involving the continuous improvement of
care (prevention, treatment and management)
throughout the delivery of health care. Effective
disease management can mean decreased health
care costs.
Distance Learning: Educational programs using
instruction via video or audio tapes, computers
etc. Instead of attending a class in one
centralized location.
Distributive bargaining: A negotiation between.
competing pafties that involves the distribution
of resources. One party prevails, to the detriment
of the other.
Dual Labor Markets: a situation in an organization
where a smaller Core Labor Force and
Peripheral Labor Force co-exist.
Due diligence: In mergers and acquisitions, the
process of carefully investigating the details of
an investment or purchase to assess risk and
potential value and reward.
Delegation: The transfer of planning and
management functions to organizations which
are funded by a central government, but which
.
do not come under its operational control.
Delivery system: (in management science)
Organizational arrangements to provide program
services to the interest groups (activities,
information, materials, physical outputs, etc.).
Delphi technique - A frequently used method in
futures research to gain consensus opinion
'among experts about likely future events,
through a series of questionnaires.
Delphi: (in forecasting the future) A method of
obtaining forecasts from a panel of experts.
166
Demand curve: A graph showing the
between the price of a good and the amount
demand for it at different prices.
Demand The number of units of a product sold i
market over a period of time.
Demarketing The process of reducing the de
for a product--or decreasing consumption.
Deming Cycle The Deming Cycle is a set
activities (Plan, Do, Check, Act) designed
drive continuous improvement. Initi
implemented in manufacturing, it has
applicability in business. First developed
Walter Shewhart, it is more commonly called
Derrung cycle in Japan where it was populari
by Edwards Deming.
fro
Demographics Objective characteristics a
consumers such as age, income, education, pol
or occupation (Assael.) For public libraries re8
the US, most relevant demographics for
education and age. be
Deposit insurance: Protection for your savings, Ec
case your bank goes Bust. Arrangements rhi
around the world, but in most countries ris
insurance is required by the government co
paid for by banks (and, ultimately, let
customers), which contribute a small slice ha
their assets to a central, usually government wi
a insurance fund. If a bank defaults, this un
guarantees its customers' deposits, at least up
a certain amount. By reassuring
customers that their cash is protected,
insurance aims to prevent them from panicki
and causing a bank run, and thereby
systematic risk. The United States introd
in 1933, after a massive bank panic led
widespread bankruptcy, deepening
depression.
Depreciation: A fall in the value of an asset ot
currency; the opposite of appreciation.
A bad, depressingly
Depression: Pro
ineconomic activity. The
recession
definition of a recession is two
quarters of declining output. A slump is
output falls by at least IOVo; a depression is
even deeper and more prolonged slump.
Deregulation: Cutting 'red tape. The process
removing legal or quasi-legal restrictions on
amount of competition, the sorts of busi
done, or the prices charged within a
industry. During the'last two decades of the
 167

.ry, many govemments committed to the
market pursued policies of liberalization
of dercgulation
6i sttsttttial lmOunt
L-hand with the privatization of industries
by the state. The aim was to decrease, the
in the economy and to
o{ government
me conrpetition. Even so, red tape is
alive
wgll.In the United StatoS,With solne 60
ral agencies issuing more than 1,800 rules a
, in lgq8 the Code of Federal Regulations
more than 130,000 pages thick' However'
all regulation is necessarily bad' Ac-cording^
bstirnites by the American Office of
an Budget,the annud cost O:
hies was$289 LilliOn,but the lnnual
wcrc$298 billion.
Financial assets that, 'derive' their value
other assets. For example, an option to buy
T arc tt de Ved from tte share.SOT?
icians and others responsible for financial
Developing countries: A euphemism for the world's
poor countries, also. known, often optimistically,
as emerging economies' Some four-fifths of the
world's 6 billion people already live in
' developing countries, many of them in abject
poverty. Developing countries account for less
than one-fifth of total world GDP.
Developing country Characteristics: 1) more than
33Vo of the population is engaged in agriculture,
less than 3O7o of population is urbanl 2) at least
5OVo of population is literate; and 3) highly
developed industrial sectors and consumer
markets of significant per capita size'
Development economics: Spawned'by the end of
the colonial era in the 1950s and 1960s, a whole
branch of economic theory grew up around the
question of how to promote economic
development in poor countries' The proposition
on which development economics was built was
that poor countries were intrinsically different

sI
Fttl F
from rich ones and so needed their own set of
economic models. Some development

sf 1 g
economists argued, for instance, that the self-
Vln
vttvtta interested, rational individual did not exist in
nts
allowing
,thing, more precise pricin-g of financial traditional tribal societies.'They claimed that
S
,risk-and bettei risk management' However' they because many poor countries had large
nent ,''concede that when derivatives are misused
the
agricultlrral populations and were often
them can
ly, 'leverage that is often an integral part of dipendent on a few commodity exports for
'have devastating consequences' So they come foieign exchange earnings, economic policies
Sl
nent with an economists'health warning: if you don't
that iuited rich countries would not work for
his uriderstand it, don't use it' them. With hindsight, much of this was
ast ve research A research design in which the
misguided, and policies based on it had
major emphasis is on determining the frequency
disastrous effects. Development economists
believed that the state had to play a big role in
wiitr wtrictr something occurs. For example, how
fostering modernization. Instead, the result was
often users access the Internet in a given month'
huge, inefficient bureaucracies riddled with
merchandise A tYPe of merchandise comrption, massive budget deficits and rampant
that motivates or triggers a trip to a specific inflation. During the 1990s, most governments
store. A library's.special collection on African of developing countries started to reverse these
history is an example. This is also a 'specialty policies and undo the damage they had done by
good. introducing policies based on similar economic
models to those that had worked in rich
A sudden fall in the value of a
countries. However, the sequencing of these new
currency against other currencies' Strictly, policies seemed to make a big difference to how
tex deduaiion refers only to sharp falls in a well they worked. Doing the right things in the
rsecuti currency within a fixed exchange rate system' right order is crucial'
iS
Also ii usually refers to a deliberate act of
on ls govemment policy, although in recent years Diffusion model A model representing the contagion
ieluctant devaluers have blamed financial or spread of something through a population'

speculation. Most studies of devaluation suggest (Examples: spread of air conditioning in Florida

that its beneficial effects on competitiveness are and subsequent population growth, and spread of

only temporary; over time they are eroded by Library of Congress pre-printed cards to
higher PRICES (see J-CURVE). American libraries.) Mathematical formulations
are available to predict spread/growth'
thc
 168
Diffusion of innovation The spread of innovation
with a market group in stages--innovators (2-
57o), early adopters (I}-lSVo), early majority
(next 35Vo), late majority(next 35Vo), and
laggards (final S-lOVo,) Fair amount , of
disagreement about the percentages.
Diminishing returns: The more you have, the
smaller is the extra benefit you get from having
even more; also known as diseconomies of scale.
For instance, when workers have a lot of capital
giving them a little more may not increase their
productivity anywhere near as much as would
giving the same amount to workers who
currently have little or no capital. This underpins
the catch up effect, whereby there is
(supposedly) convergence between the rates of
growth of developing countries and developed
ones. In the new economy, some economists
argue, capital may not suffer from diminishing
returns, or at least the amount of diminishing
will be much smaller. There may even be ever
increasing returns.
Direct marketing: Malketing efforts, in total
directed toward a specific targeted group-direct
selling direct mail, catalog or cable-for
soliciting a response from customer. A library
may mail a library registration card to every new
mother in the hospital.
Direct taxation: Taxes levied on the income or
wealth of an individual or company. Contrast
within direct TAXATION. In much of the world,
direct tax rates fell during the 1980s and 1990s,
partly because some economists argued that high
rates of tax on income discouraged people from
working, and.that high rates of tax on profit
encouraged companies to move to countries with
lower rates. Furthermore, high rates of income
tax were viewed as politically unpopular. Even
so, although rates were cut, because both
personal income and corporate profits grew
steadily throughout this period the total amount
collected via direct taxation continued to rise.
Fronomists often disagree about which of direct
taxes or indirect taxes are the least inefficient
method of taxation.
Directional and departmental signage A signage
system that helps guide the library user through
the library and locate specific 'departments of
interest.
Discount rate: The rate of interest charged by a
central bank when lending to other financial
institutions. It also refers to a rate of in
used when calculating discounted cash flow.
Discounted Cash Flow Discounted cash flow is
sophisticated technique used by
financi
analysts. Despite its complexity, discounted
flow analysis is based on a simple idea -
cash today is worth more than cash promised
the future.
Discounted cash flow: How much less is a sum
money due in the future worth today?
answer is found by discounting the future
flow, using an interest rate that reflects the
that money in future is worth less than
now, because money now could be invested
eam interest, whereas future money
Firms use discounted cash flow to judge
an investment project is worthwhile. The in
rate is a means of reflecting the opportunity
of tying up money in the investment project. Ti
test whether an investment makes
sense the income must be discounted so that
can be measured against the costs. If the
value of the benefits exceeds the'costs,
investment is a good one.
Disequilibriirm: When supply and demand in
market dre -not in balance. Contrast wi
equilibrium.
Disinflation: A fan in thc ratc of inflation.
means a slower increase in prices but not a
in prices, which is known as deflation.
Disintermediation: Cutting out the middle
Disintermediation has become a buzz word
financial services in particular, as
and technological changes have done away wi
the need for established intermediaries. Ba
have seen much of their business slip away,
as lending to companies that now tap capi
market direct. New economy theorists a
that many retailers would be dis-intermedi
as the intemet enabled customers to tra
directly with producers without needing to visit
shop. But this has happened more slowly
they predicted.
Display A special exhibit of a product or service
the point of sale, generally over and
standard shelf stocking. Simply books place
display over specific subject areas.
Distribution The marketing and carrying of I
to customers (bookmobiles, facilities,
loan.)
 167

Developing countries: A euphemism for the world's

ury, many governments committed to the
poor countries, also..known, often optimistically,

market pursued policies of liberalization

as emerging economies' Some four-fifths of the

I su6stantial lmounts Of dereguladon

.hand with the privatization of industries
the
d by the state. The aim was to decrease,
in the economy
of government 3nd..to
,ase Jonrpetition. Even so, red tape is alive
well. In-the United States, with some 60
,ral agencies issuing more than 1,800 rules a
-1998
', in the Code of Federal Regulations
more than 130,000 pages thick' However'
all regulation is necessarily bad' According
estimites by the American Office of
ana Budget,the annual cost Of
rules was $289 billion, but the annual
its werc S298 billion.
Financial asSetS that lde Vei their valuc
hm other assets' For example, an option to buy
world's 6 billion people already live in
' developing countries, many of them in abject
poverty. Developing countries account for less
than one-fifth of total world GDP'
Developing country Characteristics: 1) more than
33% of the population is engaged in agriculture,
less than 3O7o of population is urbanl 2) at least
5O7o of population is literate; and 3) highly
developed industrial sectors and consumer
markets of significant per capita size'
Development economics: Spawned'by the end of
the colonial era in the 1950s and 1960s, a whole
branch of economic theory $ew up around the
' question of how to promote economic
development in poor countries. The proposition

niCtts cStthn
of
igulation blame the growing use derivatives
on which development economics w-as built was
that poor countries were intrinsically different
from rich ones and so needed their own set of
il increasirg volatility in asset prices, and for economic models. Some development

Vl L sf 1 g
v::1:aT
economists argued, for instance, that the self-
interested, rational individual did not exist in
nts

S l tttf
l traditional tribal societies.'They claimed that
because many poor countries had large
ncnt 'concede that when derivatives are misused
the
agricultural populations and were often
can
ly, leverage that is often an integral Plrt of them
dipendent on a few commodity exports for
Sh have levastating consequences' So they come foreign exchange earnings, economic policies
hent with an economists' health warning: if you don't that suited rich countries would not work for
his understand it, don't use it. them. With hindsight' much of this was
ast ve research A research design in which the
misguided, and policies based on it had
disastrous effects. Development economists
major emphasis is on detprmining the frequency
believed that the state had to play a big role in
' VV17 wiifr wnlctr something occurs. For example, how
fostering modernization. Instead, the result was
)anlcki
often users access the Intemet in a given month'
huge, inefficient bureaucracies riddled with
rduced merchandise A tYPe of merchandise comrption, massive budget deficits and rampant
: led that motivates or triggers a trip to a specific inflation. During the 1990s, most governments
rg store. A library's special collection on African of developing countries started to reverse these
history is an example. This is also a 'specialty policies and undo the damage they had done by
good. introducing policies based on similar economic
sset Or
models to those that had worked in rich
:A sudden fall in the value of a
countries. However, the sequencing of these new
currency against other currencies' Strictly' policies seemed to make a big difference to how
devqluation refers only to sharp falls in a well they worked. Doing the right things in the
currency within a fixed exchange rate system' right order is crucial'
Also ii usually refers to a deliberate act of
governinent policy, although in recent years Diffusion model A model representing the contagion
ieluctant devaluers have blamed financial or spread of something through a population'
speculation. Most studies of devaluation suggest (Examples: spread of air conditioning in Florida
)cess that its beneficial effects on competitiveness are and subsequent population growth, and spread of
iS On only temporary; over time they are eroded by Library of Congress pre-printed cards to
bu higher PRICES (see J-CURVE). American libraries.) Mathematical formulations
artl are available to predict spread/growth'
the
 168
Diffusion of innovation The spread of innovation
with a market group in stages--innovators (2-
5Vo), early adopters (lo-l1%o), early majority
(next 35Vo), late majority(next 35Vo), and
laggards (final S-lOVo.) Fair amount, of
disagreement about the percentages.
Diminishing returns: The more you have, the
smaller is the extra benefit you get from having
even more; also known as diseconomies of scale.
For instance, when workers have a lot of capital
giving them a little more may not increase their
productivity anywhere near as much as would
giving the same amount to workers who
currently have little or no capital. This underpins
the catch up effect, whereby there is
(supposedly) convergence between the rates of
growth of developing countries and developed
ones. In the new economy, some economists
argue, capital may not suffer from diminishing
retums, or at least the amount of diminishing
will be much smaller. There may even be ever
increasing retums.
Direct marketing: Marketing efforts, in total
directed toward a specific targeted group-direct
selling direct mail, catalog or cable*for
soliciting a response from customer. A library
may mail a library registration card to every new
mother in the hospital.
Direct taxation: Taxes levied on the income or
wealth of an individual or company. Contrast
within direct TAXATION. In much of the world,
direct tax rates fell during the 1980s and 1990s,
partly because some economists argued that high
rates of tax on income discouraged people from
working, and that high rates of tax on profit
encouraged companies to move to countries with
lower rates. Furthermore, high rates of income
tax were viewed as politically unpopular. Even
so, although rates were cut, because both
personal income and corporate profits grew
steadily throughout this period the total amount
collected via direct taxation continued to rise.
Economists often disagree about which of direct
taxes or indirect taxes are the least inefficient
method of taxation.
Directional and departmental signage A signage
system that helps guide the library user through
the library and locate specific .departments of
interest.
Discount rate: The rate of interest charged by a
central bank when lending to other financial
institutions. It also refers to a rate of
used when calculating discounted cash flow.
Discounted Cash Flow Discounted cash flow is
sophisticated technique used by fi
analysts. Despite its complexity, discounted
flow analysis is based on a simple idea -
cash today is worth more than cash promised
the future.
Discounted cash flow: How much less is a sum
money due in the future worth today?
answer is found by discounting the future
flow, using an interest rate that reflects the
that money in future is worth less than
now, because money now could be invested
earn interest, whereas future money can
Firms use discounted cash flow to judge whe
an investment project is worthwhile. The i
rate is a means of reflecting the opportunity
of tying up money in the investment project. T
test whether an investment makes
sense the income must be discounted so that
'ian If
be measured against the costs. the prese
value of the benefits exceeds the costs,
investment is a good one.
Diseqrtili[pium: When supply and demand in
market are .not in balance. Contrast w
equilibrium.
Disinflation: A fan in thc ratc of inflation.
means a slower increase in prices but not a
in prices, which is known as deflation.
Disintermediation: Cutting out the midd
Disintermediation has become a btzz word it
financial services in particular, as competiti
and technological changes have done away wi
the need for established intermediaries.
have seen much of their business slip away,
as lending to companies that now tap capi
market direct. New economy theorists a
that many retailers would be dis-intermedi
as the intemet enabled customers to
directly with producers without needing to visit
shop. But tl'tis has happened more slowly
they predicted.
Display A special exhibit of a product or service
the point of sale, generally over and abo
standard sheif stocking. Simply books place ,
display over specific subject areas.
Distribution The marketing and carrying of
to customers (bookmobiles, facilities, li
loan.)
 169

effects: The ways in which Your Dominant firm: A firm with the ability to set

}
s ifttd Dummy: PRICES in its market
Preliminary layout for an ad, or other print
population. material.
in Diversification (Wood) - Extends skills or experience Dumping: Selling something for less than the cost of
jl from current product or market activities rather producing it. This may be used by a dominant to
a
;r .than covering totally unfamiliar territory. a strategy known to antitrust
attack rivals,
Customized' online searches by reference
librarians would extend their current research in
authorities as predatory. Participants in
print skills. intemational trade are often accused of dumping
t by domestic firms charging more than rival
ly? Diversification: Not putting all your eggs in one imports. Countries can slap duties on. cheap
tlre
i
basket. Investors are encouraged to do this by imports that they judge are being dumped in
the I modem pOrtfollo thebry, as holding sevcral their markets. Often this amounts to thinly
.' diff"r"nt ihares and othei assets helps to reduce
f
disguised protectionism against more efficient

S
[. InergCrs have found ttat these oien hurt the
foreign firms.
Dwell time The amount of time a customer/user
spends in time waiting in line. For a library user
rlty l sharcholders of the acluiring 11..;by contra,t, this is a price expended.
l diversificd firrns that.have sold off non core
eCt
Dwelting unit A single home or other unit in which
l bus csses havc typicany mad, e
a cohesive set of individuals reside, and typically
: that sharcholders much bettcr off.
many good s are purchased in common.

: 1 T[rld EAP:orAnpartEAPof isthe cost

employee benefit that covers all
for employees to receive
an

:: t1: counseling, referrals, and advice in dealing with

y
stressful in their lives. These may include issues

cili
a T a :I: bereavement, marital problems,
: substance abuse,

I
weight or general wellness issues, issues.
n. Thi : t Earnings Statement: An Earnings Statement is a
)t a fii eldblttWtR standard financial document that summarizes a
l ::LtiFtClctt company's revenue and expenses for a specific
ytt h a
lleman.
vord llll1:L period of time, usually one quarter of a fiscal
year and the entire fiscal year.
petiti
E)ivision of libor:Pcopl are bctter off spccializing EAP:
'An
employer-sponsored program that is
ay w than trying to be jacks of all trades and ending designed to assist employees whose job
Banks up masters of none.The logic of oividing the performance is being adversely affected by such
y,
workforce into differcnt crafts and prOfcssions is personal stresses as substance abuse, addictions,
capl
the same as that und rpinning the casO for frec marital problems, family troubles, and domestic
tradei cverybody bcncits fronl doing those violence. For every dollar invested in an EAP,
edi
things in which they have a comparative employers save approximately $5 to $16. The
advantagc and using incolne from doing so to average annual cost for an EAP ranges from $12
r visit a
rneet their other needs. to $20 per employee. Source: US Department of
[y than
DouarizatiOn: When a country's own moncy is Labor.
replaced as its citizen prefered currency by the E-Recruitment: Web-based software that handles
'vlce at
US dollar.This can be a dcliberatc govcmmcnt the various processes included in recruiting and
above policy or the rcsult of IIlany p vatc choices by on boarding job candidates. These may include
ace on buycrs and sellers(for instance,at the first sign

workforce. planning, requisitioning, candidate

of trouble, investors across Latin Arnc ca

acquisition, applicant tracking and reporting

generally flec intO d01lars). hen it is (regulatory or company analytics).
govcrnlnent policy,dolla zation is,in essence,a
bccfed up currcncy board.
 170
E-Learning: E-learning is a method of education via
the Intemet or other computer related resources.
It presents just-in+ime information in a flexible
learning plan. E-learning can be combined with
' face-to-face courses for a blended learning
'approach.
Emotional Intelligence: Based on the book of the
same name by Daniel Goleman, Emotional
Intelligence is the ability to recognize, assess
and manage their own and others' emotions.
Employee -Assessments: Tests used to help
employers in pre-hire situations to select
candidates best suited for open positions. These
tests can sometimes be taken via the Intemet and
can provide employees with effective training,
assist managers in becoming more effective, and
promote people into appropriate positions. Types
of assessments include those todetermine
personality, aptitude and skills.
Employee Relations: Developing, maintaining, and
improving the relationship between employer
and employee by effectively and proactively
communicating with employees, processing
grievances/disputes, etc.
Employee retention: Practices and policies designed
to create a work environment that makes
employees want to stay with the organization,
thus reducing tumover.
Employee Self-Service: A program that allows
employees to handle many job-related tasks
normally conducted by HR departments
including benefits enrollment, and updating
personal information. Employees can access the
information through the company's intranet,
kiosks, or other Web-based applications.
Employment Branding: A strategy designed to
make an organization appealing as a good place
to work. This targeted marketing effort utilizes
both print and Internet tactics and attempts to
shape the perceptions of potential employees,
current employees and the public / investment
community.
Empowerment: Giving employees the resources,
skills and authority necessary to share power
with management and make decisions.
Employees are then held accountable for their
decisions and rewarded if appropriate.
Enterprise Compensation Management (ECM):
The automation of the compensation process to
assist organizations in the acquisition,
management and optimization of its workforce.
ERISA '(Employment Retirement Income
Security Act): A federal law that governs
pension and welfare employee benefit plans.
ERISA requires plans ro provide participanrs
with plan information including plan featurcs
and funding. It also requires that plans provide
fiduciary responsibilities for those who manage
and control assets. It gives participants the right
to sue for benefits and breaches of fiduciary
duty.
ERP: Short for enterprise resource planning, a
business management system that integrates all EI
facets of the business, including manufacturing,
sales, marketing, finance and human resources.
This isslightly different than best-of-breed
HRIS applications and the industry continues to
debate the merits of one versus the other. With
the growing popularity of web-based
applications (ease of use, lower costs) ERp
seems to be losing out, especially in the mid-
market.
E`
Equity theory: The idea that people desire to be
treated fairly and thus compare their own
contributions to the workplace-and resulting
rewards-against those of their coworkers, to
determine if they are being treated fairly.
Executive Coaching: Executive coaching is a
professional relationship between a Coach and
an Executive, or an Executive Team. Th6 goal is
to assist executives with positive leadirship
development. It can be provided in one-on-one
. sessions or via the Intemet.
Executive Search: An agency or organization used
by employers to assist them with the selection
and placement of :candidates for senior-level
managerial or professional positions.
Exempt Versus Non-Exempt Employees: The
difference between exempt and nonexempt
employees is who gets paid overtime and who
doesn't. The U.S. Department of Labor
specifically designates certain classes of workers
as exempt, including executives, administrative
personnel, outside salespeople, highly skilled
computer-related employees, doctors, lawyers,
engineers, etc. Managers who hire and fire
employees and who spend less than half their
time performing the same duties as their
employees are typically also exempt employees.
In general, the more responsibility and
independence or discretion an employee has, the
more likely the employee is to be considered
exempt. Generally, any worker performing

effects: The ways in which Your
policies, prograrns, and projects redistribute
low i"rootc". (and benefits and costs) in the general
l
population.
fl (Wood) - Extends skills or experience
rted from current product or market activities rather
,than covering totally unfamiliar territory.
a
Customized' online searches by reference
librarians would extend their current research in
print skills.
ly? Not putting all Your eggs in one
to do this by
basket. Investors. are encouraged
Llre
modern portfolio thebry, as holding several
the
different shares and othei assets helps to reduce
1
sted risk. At the sharp end of business, however,
diversification is somewhat out of' fashion.
Economic studies of diversifying corporate
mergers have found that these often hurt the
shareholders of the acquiring firm; by contrast,
diversified firms that have sold off non-core
businesses have typically made their
shareholders much better off.
Dividend: The part ofa company's profit distributed
to shareholders. Unlike interest on debt, the
payment of a dividend is not automatic. It is
decided by the company's Inanagers' subject to
the approval of the company's owners
(shareholders). However, when a company cuts
its dividend, this usually triggers a sharp fall in
' its share price more than would be appear to be
justified by the reduced dividend. Economists
theorize that this is because a dividend cut
11 signals to shareholders that the company is in a
vord bad way, with more bad news to follow.
petiti Division of labor: People are better off specializing
ay wl
Ban
than trying to be jacks of all trades and ending
up masters of none. The logic of dividing the
y,s
workforce into different crafts and professions is
the same as that underpinning the case for free
argued
trade: everybody benefits from doing those
ediated
things in which they have a
comparative
advantage and using income from doing so to
)VlSlt
meet their other needs.
ly th
Dollarization: When a country's own money is
replaced as its citizens'preferred currency by the
'vlce at
US dollar. This can be a deliberate govemment
above policy or the result of many private choices by
ace on buyers and sellers (for instance, at the first sign
of trouble, investors across l,atin America
'oducts generally flee into dollars). When it is
library govemment policy, dollarization is, in essence,
beefed up culrency board.
169
Dominant firm: A firm with the ability to set
PRICES in its market
Dummy: Preliminary layout for an ad, or other print
material.
Dumping: Selling something for less than the cost of
producing it. This may be used by a dominant to
astrategy known to antitrust
attack rivals,
authorities as predatory. Participants in
international trade are often accused of dumping
by domestic firms charging more than rival
imports. Countries can slap duties on. cheap
imports that they judge are being dumped in
their markets. Often this amounts to thinly
disguised protectionism against more efficient
foreign firms.
Dwell time The amount of time a customer/user
spends in time waiting in line. For a library user
this is a price expended.
Dwelling unit A single home or other unit in which
a cohesive set of individuals reside, and typically
many good s are purchased in common.
EAP: An EAP is an employee benefit that covers all
or part of the cost for employees to receive
counseling, referrals, and advice in dealing with
stressful issues in their lives. These may include
substance abuse, bereavement, marital problems,
weight issues, or general wellness issues.
Earnings Statement: An Earnings Statement is a
standard financial document that summarizes a
company's revenue and expenses for a specific
period of time, usually one quarter of a fiscal
year and the entire fiscal year.
EAP:
'An employer-sponsored program that is
designed to assist employees whose job
performance is being adversely affected by such
personal stresses as substance abuse, addictions,
marital problems, family troubles, and domestic
violence. For every dollar invested in an EAP,
employers save approximately $5 to $16. The
average annual cost for an EAP ranges from $12
to $20 per employee. Source: US Department of
Labor.
E-Recruitment: Web-based software that handles
the various processes included in recruiting and
on boarding job candidates. These may include
workforce. planning, requisitioning, candidate
acquisition, applicant tracking and reporting
(regulatory or company analytics).
a
 770
E-Learning: EJearning is a method of education via
the Intemet or other computer related resources.
It presents just-in-time information in a flexible
learning plan. E-learning can be combined with
' face-to-face courses for a blended learning
approach.
Emotional Intelligence: Based on the book of the
same name by Daniel Goleman, Emotional
Intelligence is the ability to recognize, assess
and manage their own and others' emotions.
Employee Assessments: Tests used to help
employers in pre-hire situations to select
candidates best suited for open positions. These
tests can sometimes be taken via the Internet and
can provide employees with effective training,
assist managers in becoming more effective, and
promote people into appropriate positions. Types
of assessments include those to determine
personality, aptitude and skills.
Employee Relations: Developing, maintaining, and
improving the relationship between employer
and employee by effectively and proactively
communicating With employees, processing
grievances/disputes, etc.
Employee retention: Practices and policies designed
to create a work environment that makes
employees want to stay with the organization,
thus reducing tumover.
Employee Self-Service: A program that allows
employees to handle many job-related tasks
normally conducted by HR departments
including benefits enrollment, and updating
personal information. Employees can access the
information through the company's intranet,
kiosks, or other Web-based applications.
Employment Branding: A strategy designed to
make an organization appealing as a good place
to work. This targeted marketing effort utilizes
both print and Internet tactics and attempts to
shape the perceptions of potential employees,
current employees and the public / investment
community.
Empowerment: Giving employees the resources,
skills and authority necessary to share power
with management and make decisions.
Employees are then held accountable for their
decisions and rewarded if appropriate.
Enterprise Compensation Management (ECM):
The automation of the compensation process to
assist organizations in the acquisition,
management and optimization of its workforce.
ERISA '(Employment Retirement Income
Security Act): A federal law that governs
pension and welfare employee benefit plans.
Ex
ERISA requires plans to provide participants
with plan information including plan features.
and funding. It also requires that plans provide
fiduciary responsibilities for those who manage
and control assets. It gives participants the right
to sue for benefits and breaches of fiduciary
duty. E
ERP: Short for enterprise resource planning, a
business management system that integrates all
E
facets of the business, including manufacturing,
sales, marketing, finance and human resources.
This is slightly different than best-of-breed
HRIS applications and the industry continues to
debate the merits of one versus the other. With
the growing popularity of web-based
applications (ease of use, lower costs) ERp
seems to be Iosing out, especially in the mid-
market.
E(
Equity theory: The idea that people desire to be
treated fairly and thus compare their own
contributions to the workplace-and resulting
rewards-against those of their coworkers, to
determine if they are being treated fairly. El
Executive Coaching: Executive coaching is a
professional relationship between a Coach and
an Executive, or an Executive Team. Thb goal is
to assist executives with positive leadership E:
development. It can be provided in one-on-one
' sessions or.via the Internet.
Executive Search: An agency or organization used
by employers to assist them with the selection
and placement of candidates for seniorJevel
managerial or professional positions.
E
Exempt Versus Non-Exempt Employees: The
difference between exempt and nonexempt
employees is who gets paid overtime and who
doesn't. The U.S. Department of Labor
specifically designates certain classes of workers
as exempt, including executives. administrative
E
personnel, outside,salespeople, highly skilled
computer-related employees, doctors, lawyers,
engineers, etc. Managers who hire and fire
employees and who spend less than half their
time performing the same duties as their
employees are typically also exempt employees.
In general, the more responsibility and
independence or discretion an employee has, the
more likely the employee is to be considered
exempt. Generally, any worker performing

itivb tasks is most likely nonexempt and
be paid overtime.
: The final meeting between
, usually someone in the HR
iiartment, and an employee leaving the
age
. Information on why the employee is
Environment, external
ght
ary
l Wb 11 and social stimuli in the external world of
: An employee who is transferred to work
on a long-term job assignment.
, a
all : EBITDA is an abbreviation for Earnings
ng, before Interest, Tax, Depreciation and
es. l.!.lAmortization. It
reports what the company
ced would have earned during the period if it did not
to irhave to pay interest on its debt; didn't have to
/ith i pay taxes; and had depreciated the full value of
sed ,;,all assets at their acquisition. It is roughly
RP equivalent to the Operating Income line in the
dd Income Statements.
environment Part of the macro
environrnent encompassing wealth, income,
productivity, inflation, credit, employment, etc.
Which affect the agencyAibrary's markets and
opportunities.
evaluations: (in management science)
Analyses of the costs (inputs) of programs in
relation to their benefits or effectiveness
(outputs).
j implementation of a policy, program, or project:
EI: Emotional intelligence (Et) is one of the most
l, i*portunt ideas to hit the business world in
, recent years. It is based on the.notion that the
ability of managers to understand their own
emotions, and those of the people they work
with, is the key to better business performance.
Eighty-twenty principle The situation in which a
disproportionately small number (e.g., 20Vo) of
staff, products or users generate a
disproportionately large amount (e.g., 807o) of
firm's use/profits. A use analysis should be
conducted to determine what the cause is.
Elasticity The degree that an economic variable
changes in response to a change in another
economic variable. For example, how much
library use changes according to how far an
individual must travel for library services.
Emotional Intelligence: Emotional intelligence @I)
is one of the most important ideas to hit the
business world in recent years. It is based on the
notion that the ability of managers to understand
their own emotions, and those of the people they
171
work with,' is the key to better business
performance.
Empowerment: To transfer authority and resources
to enable a person or organization to obtain a
greater amount of autonomy and control.
of The complex set physical
consumers.
Environmental analysis Gathering data regarding
political, cultural, social, demographic,
economic, legal, international and ecological
forces, identifying trends affecting agency.
Environmental impact assessment: Analysis of
how a particular policy, program, or project may
affect wat'er, soils, flora, fauna; and human
health and well-being.
Environmental monitoring Keeping track of. a
changes in the environment.
Erratic demand A pattern of demand for a product
that is varied and. unpredictable, e.g., some best
sellers, or specific online databases randomly
assigned in curriculum by teachers.
Evoked set A set of alternatives that are activated
directly from memory--certain brands
considered during the buying process.
Ex ante analysis: (e.g., in impact assessment) An
examination of likely or probable effects prior to
Ex post analysis: (e.g., in impact assessment) An
examination that looks back in time to see what
happened. While ex anteanalysis is anticipatory,
ex post analysis is historical.
Example, the parent selecting children's
books is the consumer.
Exchange All activities associated with receiving
something frofn someone by giving something
a voluntarily in return. This is the heart of the
,. marketing process. A library user gives time
instead of money to borrow materials, but it is
still an exchange.
Exhibit The gathering and displaying of products,
people, or information at a central location for
viewing by a diverse audience. Most libraries
have exhibits created by staff, community or
other stakeholders.
Expenses: Expenses are the costs of doing business
that result from generating revenue. They
include parts, salaries, utilities, etc.
 170
E-Learning: E-learning is a method of education via
the Internet or other computer related resources.
It presents just-in-time information in a flexible
learning plan. E-learning can be combined with
face-to-face courses for a blended learning
'approach.
Emotional Intelligence: Based on the book of the
same name by Daniel Goleman, Emotional
Intelligence is the ability to recognize, assess
and manage their own and others' emotions.
Employee .Assessments: Tests to help
used
employers in pre-hire situations to select
candidates best suited for open positions. These
tests can sometimes be taken via the Intemet and
can provide employees with effective training,
assist managers in becoming more effective, and
promote people into appropriate positions. Types
of assessments include those to determine
personality, aptitude and skills.
Employee Relations: Developing, maintaining, and
improving the relationship between employer
and employee by effectively and proactively
communicating with employees, processing
grievances/disputes, etc.
Employee retention: Practices and policies designed
to create a work environment that makes
employees want to stay with the organization,
thus reducing turnover.
Employee Self-Service: A program that allows
employees to handle many job-related tasks
normally conducted by HR departments
including benefits enrollment, and updating
personal information. Employees can access the
information through the company's intranet,
kiosks, or other Web-based applications.
Employment Branding: A strategy designed to
make an organization appealing as a good place
to work. This targeted marketing effort utilizes
both print and Internet tactics and attempts to
shape the perceptions of potential employees,
current employees and the public / investment
community.
Empowerment: Giving employees the resources,
skills and authority necessary to share power
with management and make decisions.
Employees are then held accountable for their
decisions and rewarded if appropriate.
Enterprise Compensation Management (ECM):
The automation of the compensation process to
assist organizations in the acquisition,
management and optimization of its workforce.
ERISA '@mployment Retirement Income 1
Security Act): A federal law that governs, 1
pension and welfare employee benefit plans.
Exit
ERISA requires plans to provide participants
I
with plan information including plan featurcs.
and funding. It also requires that plans provide
(
fiduciary responsibilities for those who manage
1
and control assets. It gives participants the right
to sue for benefits and breaches of fiduciary
duty.
ERP: Short for enterprise resource planning, a
business management system that integrates all
facets of the business, including manufacturing,
sales, marketing, finance and human resourceb.
This isslightly different than besr-of-breed
HRIS applications and the industry continues to
debate the merits of one versus the other. With
the growing popularity of lveb-based
applications (ease of use, lower costs) ERP
seerns to be losing out, especially in the mid-
market.
Equity theory: The idea that people desire to be
treated fairly and thus compare their own
contributions to the workplace-and resulting
rewards-against those of their coworkers, to
determine if they are being treated fairly.
Executive Coaching: Executive coaching is a
professional relationship between a Coach and
an Executive, or an Executive Team. Thb goal is
to assist executives with positive leadership
development. It can !e provided in one-on-one
. sessions or.via the Internet.
Executive Search: An agency or organization used
by employers to assist them with the selection
and placement of candidates for senior-level
managerial or plofessional positions.
Eigh
Exempt Versus Non-Exempt Employees: The C
difference between exempt and nonexempt S
employees is who gets paid overtime and who (
doesn't. The U.S. Department of Labor I
specifically designates certain classes of workers (
as exempt, including executives, administrative
Elast
personnel, outside salespeople, highly skilled
(
computer-related employees, doctors, lawyers,
(
engineers, etc. Managers who hire and fire
employees and who spend less than half their
I
i
time performing the same duties as their
employees are typically also exempt employees. Emo
In general, the more responsibility and i
independence or discretion an employee has, the t
more likely the employee is to be considered I
exempt. Generally, any worker performing t
 171

IIne repetitive tasks is most likely nonexempt and work with,' is the key to better business
performance.
rns must be paid overtime.
ins.
Interview: The finat meeting between Empowerment: To transfer authority and resources
nts
b*it
; management, usually someone in the HR to enable a person or organization to obtain a
rcs greater amount of autonomy and control.
idc
l depatt*"rt, and an employee leaving theis
i company. Information on why the employee Environment, external The complex set of physical
lge : l"uuing is gathered to gain insight into work and social stimuli in the external world of
ght
conditions and possible changes or solutions' consumers.
ary
Environmental analysis Gathering data regarding
a
political, cultural, social, demographic,
economic, legal, international and ecological
aH
forces, identifying trends affecting agency'
ng,
CS. Environmental impact assessment: Analysis of
,ed how a particular policy, program, or project may

ilW
to affect watbr, soils, flora, fauna, and human
ith health and well-being.
ied
C Environmental monitoring Keeping track of a
RP ) l eq v ei b tte oporalng hCOrnc hne m changes in the environment.
id I InCOInc statelnents.
IEcononic envirollment IPart of the maCro Erratic demand A pattern of demand for a product
i en ronlnent encOmpasSing wcalth, incom : that is varied and. unpredictable, e.g., some best

1tW aTl :
bc
sellers, or specific online databases randomly
Vn
assigned in curriculum by teachers.
ng

l opportunities.
to Evoked set A set of altematives that are activated
directly from memory--certain brands

T 1
considered during the buying process'

Ex ante analysis: (e.g., in impact assessment) An

examination of likely or probable effects prior to

(Outputs).
implementation of a policy, program' or project:

I EI:Emotional intclligencc KED iS One Of thC rnost
Ex post analysis: (e.g., in impact assessment) An

WT ttT :
1: examination that looks back in time to see what
happened. While ex anteanalysis is anticipatory,
d
ability of lnanagers to understand thcir own
ex post analYsis is historical.
)n emotions, and thOsc of thc pcople they work
el with,is the key to better business pcrformancc. Example, the parent selecting children's
books is the consumer.
Dg
lC
u
lJ : Exchange All activities associated with receiving
something frotn someone by giving something

,,
Dt
voluntarily in return. This is the heart of the
O
)r
P l :i marketing process. A library user gives time
S conducted to detcrlmne Whatthc causc iS. instead of money to borrow materials, but it is
c still an exchange.
d

C

library use changcs according to hOw far an
Exhibit The gathering and displaying of

viewing by a diverse audience. Most libraries

products,
people, or information at a central location for

tr
individual rnust travcl for library serviccS. have exhibits created by staff, community or
tr
other stakeholders.
;. Emotional lnteuigence:Emotional intclligencc OEI)
d is one of thC moSt important idcas to hit thC Expenses: Expenses are the costs of doing business
C business world in rcccnt ycars.It is basel on thc that result from generating revenue' They
i notion that the ability of rnanagers to understand include parts, salaries, utilities, etc.
their own cmotions,and thosC ofthe pcoplc thcy


Experience survey A series of interviews with
people knowledgeable about the general subjfct
being investigated.
Exploratory research A research design in which
the major emphasis is on gaining ideas and
insights.
External data Data that originate outside the
organization for which research is being done.
Externalities: (in management science) Effects of a
policy, program, or project that impose costs on
(or give benefits to) people who are not in the
target population.
Facilitator: (in planning teams) A group member
whose role is to help the group function more
effectively.
Factor analysis A body of statistical techniques
concerned with study of interrelationships
among a certain set of variables--none of which
is given the special status of a criterion variable.
Family A group of at least two people in a
household based on marriage, cohabitation,
blook relationships or adoption.
Family decision making The processes,
interactions, and roles of family members
involved in making decisions as a group.
Family life cycle A sociological concept that
describes changes in families across time,
emphasizing effects of marriage, divorce, births
and deaths on families and changes in income.
FASB FASB is the abbieviation for the Financial
Accounting Standards Board. It was created in
1973, replacing the Accounting principles Board
and the Committee on Accounting procedure of
the American Institute of Certified public
Accountants before it.
The FASB is a private body whose mission.
is to "establish and improve standa,rds cji
financial accounting and reporting for the
guidance and education of the public, including
issuers, auditors and users of financial
information." The FASB publishes GAAP.
Feature story A type of publicity material that can
be used by the media at their convenience
bgcause it is not time-related. Library materials
and services available are good candidates for
this type of story.
Feature The use of advertising, displays, or other
activity, generally by a retailer, to call special
L72 i
attention to a product, generally for a limited
time.
Period of ,t.
Feedback: (in management science) Ther
information that returns to your organization.
about the consequences of your interventions.
The feedback is available for "learning', so that
behavior and decisions can be corrected to favor,
positive outcomes. See monitoring.
I'
Fill rate An inventory's availability goal used whenl
setting customer service objectives; for.example,
80 out of 100 reference questions were answeiedi
Financial Accounting Standards Board The
Financial Accounting Standards Board w&s:
created in 1973, replacing the Accountingr
Principles Board and the Committee on
Accounting Procedure of the American Institute,
of Certified Public Accouutants before it.
The FASB is a private body whose mission
, is to "establish and improve standards ofr,
financial accounting and reporting for the
guidance and education of the public, including
issuers, auditors and users of financial
information." The FASB publishes GAAP.
Fiscal Year A twelve-month accounting period that
usually, but not necessarily, starts on January l.
Fixed Assets Fixed Assets are the non-liquid assets
that are required for the company,s day-to-day
operations. They include facilities, equipment,
and real property.
Fixed Costs Fixed Costs are expenses that don't
change based on production or sales volumes,
They include salaries, rent, insurance, etc.
Fixed Term Employment: An employee agrees to
work for a fixed tefm-until a certain date, at the
completion of a project, etc.
Flexible Spending Accounts (FSA): FSA allows
employees to set aside a portion of their earnings
' on a pre-tax basis into separate spending
accounts to fund allowable health .care and/or
dependent day care expenses. The funds must be
segregated as per IRS regulations.
Flexible Work Arrangements: Schedules that allow
employees to structure their work hours around
their personal responsibilities. Examples include
job sharing, telecommuting and a
flextime,
compressed workweek. Home sourcing has
become a popular flexible work concept in
 t73

limited recent years. In this arrangement, employees the FASB, and used to standardize financial
work full-time from thei(homes. accounting of public companies.
The Forced Ranking: Also known as a vitality curve, Galley proof: A copy of the individual pages of an
ization this is a system of work perforrnance evaluation ad, brochure, poster or other printed material
ntions. in which employees are compared against each used for final proofreading of the text before
so that other instead of against fixed standards. Based final negatives are made for the printing process.
r favor on the "2Ol8O Rule" idea, that 20 percent of Game Theory: Game theory is based on the premise
employees do 80 percent of the meaningful, that no matter what the game, no matter what the
I when productive work, the top 20 percent of workers circumstances, there i.s a strategy that will enable
lample are rewarded and, oftentimes, the bottom 10 you to succeed.
;wered percent are fired.
Gatekeeper: Usually the individual who controls the
Freedom of association: The right of workers to flow of information from the mass media to the
The join a union andr to bargain collectively. This group or individual.
I was right is protected by the Universal Declaration of General Agents: General agents are middleman for
unting Human Rights and the Human Rights Act of carriers and brokers and usually focus on the 250
eon t993. employee market. Usually an individual
stitute
tr'unctional job analysis: Developed by the U.S. appointed by a life or health insurer to
Department of Labor, functional job analysis is a administer its business in a given territory. Gas
rission method of gathering specific and detailed job are important for companies who sell to small
Cs of information. This information can be used to employers or brokers e.9., benefits
r the write j ob descriptions. administration software providers.
tuding
ancial Flagship store In a local department store Goal Setting: Assigning specific, attainable goals to
organization/library system, the main or central a person, team or organization. Goal setting is a
store/library when it is large or dominant in motivational technique, as workers often rise to
d that relation to other comPany stores. the challenges given them.,
:y 7.
Focus group A method of gathering quantitative Good faith bargaining: A requirement of the
aSSe[S data on the preferences and beliefs of consumers Employment Relations Act of 2000 that all
o-day through group interaction and discussion usually parties to a contract conduct negotiations with a
ment, ' focused on a specific topic or product. willingness to reach an agreement on new
contract terms.
Force field analysis: A method , of identifying
don't favorable and hindenng factors relative to Grievance: a complaint by an employee due to an
achieving a particular goal. alleged violation of law or collective bargaining
Imes.
or dissatisfaction with work conditions.
Forecasting models In forecasting sales, or library
use, or other objectives, a variety of statistical Gross misconduct: An action so serious that it calls
)es to
at the models are used and available, offering insights
for the immediate dismissal of an employee.
Examples include fighting, 'drunkenness,
otherwise difficult to obtain.
harassment of others and theft.
Ilows Forecasting: (in planning) Views on what will
Group dynamics: The way that people interact
nings happen in an "unknown" future.
within a group that determines how it functions
tding Free, is competitive with local video stores and how effective the group is.
nd/or
that charge, if video collections are comparable. Generally Accepted Accounting Principles
.st be
If the Generally Accepted Accounting Principles refers
FY FY is the abbreviation for fiscal year, a twelve- to a set of widely accepted accounting standards,
rllow month accounting period that usually, but not set by the FASB, and used to standardize
ound necessarily, starts on January 1' financial accounting of public companies.
:lude
GAAP: GAAP is the abbreviation for Generally Geodemography The availability of demographic
rda consumer behavior and life style data by
has Accepted Accounting Principles. It refers to a set
rt arbitrary geographic boundaries that are
in of widely accepted accounting standards, set by
typically quite small. For example, a library-

designated service area of two census tracts
(us).
Goals: A broad and lofty big picture approach to
what the organization wants to achieve. Goals
are not always quantifiable. For example, the
library's goal is to improve reference services,
its objectives include increasing fill rate by ZOVo
in two months.
Goals: Goals are objective, measurable expectations
set to measuic pogress toward desired results.
Goals: (in plarning; iire particular results that an
organization strives to produce in carrying out its
mission.
Goods: A product that has tangible form in contrast
to services that are intangible. A book versus a
story read.
Gravity model: A theory about the structure of
market areas. The model states that the volume
of purchases by consumers/users the frequency
of trips to the outlets are a function of the size of
the stores/library and the distance between the
store and the origin of the shopping trip.
Gross Profit: Grosf'profit equals sales revenue
minus the cost of goods sold.
Gross Revenue: Gross Revenue is money generated
by all of a company's operations, before
deductions for expenses
Growth state of product life cycle: Second stage
during which sales/use are increasing. For
examples, the second year of the library's
talking books program for the visuaily
handicapped.
Habit: A learned response to a stirnulus that has
become automaticind routine, requiring little or
no cognitive effort. It is often said that the
reading and library habit if not learned as a
child, will not be letrrned as an adult.
Halo effect: A problem that arises in data collection
when there is carry over from one judgment to
another. For example, estimation of reference
questions inferred from the previous week,s
count.
Hawthorne Effect: The theory that organizations
can motivate their employees as much or more
by expressing concern for problems as by
actually improving their work conditions. This
personal interest results in increased
performance, according to the observations of
productivity researcher George Elton Mayo.
!74
Hierarchy of needs: A theory created by
psychologist Abraham Maslow that stares
humans constantiy strive to meet a series of
needs, going from physical (food and shelter) all
the way to spiritual (self-actualization).
HR Audit: A periodic measurement of human
resources effectiveness, conducted by intemal
staff or with the use of an HR audit system.
HR Generalist: An individual who is able to
perform more than one diversified human
resources function, rather then specializing in
one specific function.
Human Capital: The collective skills, knowledge
and competencies of an organization,s p"op1"
that enables them to create economic value.
Human Capital Management: The challenge of
recruiting and retaining qualified candidatei, and
helping new employees fit into an organization.
The goal is to keep employees contributing to
the organizations intellectual capital by offering
competitive salary, benefits and developmeni
opportunities.-The major functions of hu*an
capital management include Recruitment,
Compensation, Benefits and Training.
Human Resource Information System (HRJS):
Business software systems that assist in the
management of human resource data (e.g.
Payroll, job title, candidate contact information).
Some of the larger HRIS platforms include SAp
and People soft.
Human Reiource Outsourcing (IIRO): A
contractual agreement between an employer and
an external third-party provider whereby the
employer transfers responsibility and
management for certain HR, benefit or training_
related functions or services to the external
provider.
High income tountries: Countries whose income
per capita are high compared to the rest of the
world.
Image The sum of beliefs, ideas and impressions that
a person has of an object or agency. (Assael).
For example, the library holds an image of
' prestige for some cammunities.
Impact assessment: (in management science)
Evaluation of the extent to which a policy,
program, or project causes changes (e.g.,
economic, social, environmental) for a target
population.

Impact: The net effects of a policy, program, or
project. See impact assessment.
Incentive pay: Additional compensation used as a
motivational tool to exceed specified work goals.
Independent contractor: A self-employed person
who works for another person or organization on
a contract basis.
Individual employment agreement: A written
document that describes the legal relationship
between an employer and employee.
Industrial relations: A field of study that examines
the relationshi! between employer and
employees, particularly groups of workers in
unions.
Intangible rewards:;A subjective benefit that has no
monetary value, such as praise for excellent
performance.
ISO 9000: A set of intemationally-accepted
standhrds, created by the International
Organization for Standardization, for quality
management and quality assurance. These
standards apply uniformly across all industries
and company size. Companies can receive ISO
9000 certification for meeting these standards.
Job analysis: The process of gathering information
about the requirements and necessary skills of a
job in order to create ajob description.
Job Board: An online location that provides an up-
to-date listing of currentjob vacancies in various
industries. Applicants are able to apply for
employment through the job board itself. Many
job boards have a variety of additional services
to help job seekers manage their careers and
their ongoing job search processes.
Job Description: A written statement that explains
the responsibilities and qualifications of a given
job, based on a job analysis. The job description
usually includes specific required tasks as well
as an overyiew of the position and whom the
employee reports to.
Job evaluation: A comparison of one job with other
jobs in a company for the purpose of assessing
fair compensation.
Irrcome differential The difference in income levels
among people of various categories, such as
different jobs, geographic areas, age classes,
sexes, races and the like.
Income Statement An Income Statement is
standard financial document that summarizes
175
company's revenue and expenses for a specific
penod of time, usually one quarter of a fiscal
year and the entire fiscal year.
Industrialized country Characteristics: 1) degree of
urbanization increases; literacy levels are high,
exceeding 85Vo, population engaged in
agriculture drops substantially; 2) wage levels
rise sharply and ownership of durables; 3) need
for labor saving methods creates new industries.
Inputs (in planning): The information, budget,
personnel time, and other resources that go inro
and support a planning process.
Insider A company insider is someone who has
access to the important information about a
company that affects its stock price or might
infl uence investors decisions.
People who are not ernployees of the company may
be company insiders. Auditors, outside counsel,
brokers and analysts may fit the definition.
Insider Trading Illegal Insider Trading is the
trading in a security (buying or selling a stock)
based on material information that is nor
available to the general public. It is prohibited by
the US Secudties and Exchange Commission
(SEC) because it is unfair and would destroy the
securities markets by destroying investor
confidence.
Institutional development: To improve the laws,
regulations, and human resources affecting one
or more organizations.
Intellectual Property Intellectual Property (IP) is all
of a company's patents, trademarks, service
marks, trade names, trade secrets, and
copyrights. It is distinguished from capital
property.
Interest groups: (in relation to forests) Persons and
groups who claim rights and interests in the
ways that forests are protected and managed,
now and in the future
Intervention: (in management science) A planned
effort to produce favorable changes in a target
population.
IP Intellectual Property (IP) is all of a company's
patents, trademarks, service marks, trade names,
trade secrets, and copyrights. It is distinguished
from capital property.
Job Enlargement Job Enlargement is the honzontal
a expansion of a job. It involves the addition of
a tasks at the same level of skill and responsibility.
 176

It is done to keep workers from getting bored. It Labor force participation rate: The ratio berween II
is different than job enrichment.
the labor force (all those currently employed
or
Job Enrichment Job Enrichment is the addition to a
seeking work) and the nation,s total working_age
job of tasks that increase the amount of population.
employee control or responsibility. It is a
vertical expansion of the job as opjosed to the
Labor Market: A geographical region (local,
horizontal expansion of a job, whicir is called job
national or inrernation;l) in *1i"n hbor
transactions occur___employers find workers
enlargement. and
workers find work.
Kaizen (Quatity Circles) As much a social system
Leadership Development: Activities, whether
as an industrial process, kaizen is at the
heart of formal or informal, that enhances leadership
the quality philosophy, and involves the use\of
qualities
quality circles - or small teams of workers _ l:
to
analyze and make suggestions for improving LIF'O (Last In, First Out): A method of
their own work tasks. determining who should be laid off in which the
most recent hires are laid off first.
Key Performance Indicators (KpIs): Tasks that
are
central to the success of a business and show, Lump sum payment: A single large payment
given
when measured, .whether the business i; to an employee, usually instead of more and
advancing toward its strategic.goals. smaller pay increases.
KSAs: The Knowledge, Skills and Abilities an Leadership: Guidance of a group of people to
employee needs to meet the requirements accomplish one or more goals.
of a
job.
Legal-service area (library) The geographic
area for
Key Performance Indicators Key performance which a public library is eitat'ilsfred to
oifer
Indicators (KpI) are quantifiable measurements services and from which or on behalf
of wnictrj'
agreed to beforehand, that reflect the critical the library derives income, plus any
areas served
success factors (of the company, department, under contract for which the library is the
projecr). primary service provider.
Key result, areas: (in planning): The tasks and
Liabilities: Liabilities arb ail of a company,s
activities that are most important in determining financial obligations that have a negative
value. Pl
if an organization or individual will be Life style: The
successful (e.g., in achieving a goal). manner in which people conduct
their lives, incli,ctipg their activities, opinions,
Key success factors: The factors that are a necessary uld'interests (AIO). This is more difficult
to
condition for success in a given market. Foi obtain and more expensive. For libraries
example in a highly Hispanic market, a library important to undersiand the lifestyl"'of
it is
to users,
succeed would have Spanish language . ald how the library may iit
betrer
materials. into those
-ir^^grtf,"r"a
liiestyles. Sometimes tfril a"i"
Key Success Indicators: Key Success Indicators Uy
are community media, or large .o_p*i",
quantifiable measurements, agreed to in the
community.
beforehand, that reflect the critiJal success
M
factors (of the company, department, project). Literature search: A search of statistics,
trade
journal articles and other media for
Knowledge: Consumers, meanings or beliefs clata or
about insight into the problems ar hand. Special M
products, brands, storesi that is stored in
libraries often provide customized searches
memory. for a
fee.
ruI: {Pt are quantifiable measurements, agrebd to Long Term Assets: Long Term Assets are the
beforehand, that reflect the critical success
non_
liquid assets that are required for the company,s
factors (of the company, department, project).
day-to-day operations. They include facilities,
KSA: KSA is Human Resources (IIR) shorthand for equipment, and real property.
Knowledge, Skills and Abilities. These attributes M
Low income countries: Countries with the lowest
can be used to describe an individual, a position,
income per capita compared with.the rest
or both. of the
world. The bottom quartile is often considered
low income.
 I'
ii.
177

)Cn Macro environment: The conditions facing a Myers-Briggs Type Indicator (MBTI): A well-
Or i; company/library including demographic known personality type assessment designed to
lge ' economic, natural, technological, political, and measure people' s psychological preferences. The
' cultural forces. personality is divided into four diqhotomies,
with 16 personality types possible. The system is
al, Managed Care: A health care system in which the partly based on the theories of psychologist Carl
)Or provider manages the care of the individual for a Jung.
nd ',:: fixed fee. The opposite of this preventive
intervention (or, population-based) approach is Market - The set 'of actual or potential users/
':
: fee-for-service. Managed care emphasizes customers. (Kotler)
ter
wellness and prevention. Market area A geographical area containing the
ip
Marketing PR: Marketing PR is the combining of customers/users of a particular firm/library for
what are traditionally two separate departments, specific goods or services. This would be
Of
public relations and marketing, to one integrated determined by geo-coding library users'
lC addresses and determining the boundaries of the
' front whereby all marketing and PR activities
directly. Marketing PR primary geographic market.
focus on reaching buyers

incorporates both traditional narketing and PR Market demand The total volume of a product or

tactics with social media and other Intemet- service bought/used by a specific group of
initiatives
'that support the measurable
based customers/users in a specified market area
goals of online publicity, increased web site
,o
during a specified period. For example, the
traffic, search-optimization (SEO) and, lead
demand for best sellers during the fall.

)r PR and Marketing PR is the use of a press
)r release. Traditional PR writes and distributes a
press release for the sole purpose of securing
d media placements. Marketing PR does this as
C well but also uses the press release to enhance
website SEO, increase web site traffic and
generate qualified sales leads.
S
Matrix organization: Used primarily in
management of large projects, a horizontal
t
authority structure in which teams are created
from various departments and report to more
)
than one boss.
,Mediation Services: The use of a trained third party
to settle an employment dispute. The third party
has no legal authority and so must
persuasion to settle the disPute'
Market'development Expanding the total market
served by 1) entering new segments, 2)
converting nonusers, 3) increasing use by
present users.
Market positioning: Positioning refers to the user's
perceptions of the place a ptoduct or brand
occupies in a market segment. Or how the
the company/library' s offering is differentiated from
the competition's. For a library a competitor
may be another public agency competing for
public funds. What unique niche does the library
serve when competing against police for
same $$
Market profile A breakdown of a facility's market
use area according to income, demography, and life
style (often.)

Mentoring: An informal training process between a
more experienced person and a junior employee.
Minimum wage: The lowest amount an employer
can pay an hourly employee. This rate is set by
the federal government
Mission Statement: A description of
organization's purpose: what it does, what
markets it serves and what direction it is going
' geographic (branch-level); psychographics
in.
Motivational Theories: Psychological models that
attempt to explain what motivates people. These
theories can help employers design incentive
strategies.
Market research The systematic gathering,
recording and analyzing of data with respect to a
particular market, where market refers to a
specific user group in a specific geographic area.
Market segmentation The process of subdividing a
market into distinct subsets of users that behave
an
in the same way or have similar needs. Segments
for the library could be demographic (Asian);
(leisure-oriented); customer size (largest user
group area); benefits (have children in the home
learning to read.)
Market Share A company's market share is the
percentage of any of its markets that it holds.
 178
Companies will often discount their products in
order to saturate the marketplace with them and
thereby gain a bigger market share.
Market share A proportion of the total sales/use in a
market obtained by a given facility or chain.
Branch Ahas 35Vo of the system's cirqulation.
Marketing channel A set of institutions necessary to
transfer the title to goodb and to move goods
from the point of consumptiora. (Vendors,
publishers, library facilities.)
Marketing mix The mix of controllable variables
that the firm/library uses to reach desired
use/sales level in target market, including price,
product, place and promotion- 4 p's. For a
library this would be embodied in price of user,s
time to access goods, a product would be a book
or story time, place is a branch or bookmobile,
and promotion is publicity, displays etc.
Marketing opportunity - An attractive arena of
relevant marketing action in which a particular
organization is likely to enjoy a superior and
competitive advantage. The library is selected to
host the community heritage festival which is
funded by the city. (Kotlgr)
Marketing plan A document composed of an
analysis of the current marketing situation,
opportunities and threats, analysis, marketing
objectives, marketing strategy, action programs,
and projected income statement. This could be
very similar to a library's long range plan.
Maturity stage of product life cycle Initial
rapid growth is over and use/sales level off.
Marketing The process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, and services to
create exchanges that satisfy individual and
organizational goals.
Metrics: Metrics are a set of measurements that
quantify results. Performance metrics quantify
the units performance. Project metrics tell you
whether the project is meeting its goals.
Business metrics define the business'progress in
measurable terms.
Microenvironment The set of forceS close to an
organization that have direct impact on its ability
to serve its customers, including channel
member organizations, competitors, user
markets, publics and the capabilities of the
organization.
Milestone: (in planning) The completion of an
important event or activity in a longer sequence
of events and activities (i.e., a measure of
progress).
Mission statement An expression of a company,s/
library's history, managerial preferences,
environmental concerns, resources, and
competencies. It is used to guide the company's
decision making process, answering rvhat is our Nel
business, who do we serve, etc.
Mission: (in planning) The broad general purposes
for which an organization exists.
Model (in planning) A simplified physical,
conceptual, or mathematical abstraction of the Nel
real world to help understand relationships (such
as cause and effect).
Monitoring: Assessing the extent to which a policy,
program,-or project is implemented in ways that NG
are consistent with its intention.
Mores The cultural norrns that specify behavior of
vital importance to society and enrbody its basic
moral values
Motivation The positive or negative needs, goals,
desires and forces that impel an individual Nol
toward or away from certain actions, activities,
objects or conditions. The inner needs and wants
of an individual--what affects behavior.
Multiple purpose trip A key concept in central NoI
place theory that argues consumers prefer to visit
more than one store per trip, generating positive
externalities for neighboring stores. This view
has mixed reviews in the library field, yet is
NoF
usually the norm for rural areas.
NDA NDA is the abbreviation for non-disclosure
agreement. An NDA is a legal contract that
allows a company to share its IP with others, Nol
whose input it needs, without unduly
jeopardizing that information.
Needs assessment: Systematic appraisal of the type,
Nor
depth, and scope of a problem.
Negotiation: Bargaining between two or more
parties with the goal of reaching consensus or
resolving a problem.
Nepotism: Preferential hiring of relatives and
friends, even though others might be more
qualified for those positions.
"Non-lraditional" versus "Traditional"
Employee Benefits: Traditional benefits include
life, retirement, health, and disability benefits.
 l

179

In of Non-traditional benefits include various types of often have success/failure rather than
seque Iife management benefits such as eaps, child and quantifiable metrics.
asure of elder care counseling and referral, etc. (see life
management benefits). According to the US Objectives: The desired or needed result to be
Chamber of Commerce, health insurance is the achieved by a specific time. An objective is
mpany's/ more specific than a goal, and one objective can
most expensive single benefit cost, accounting
ferences,
for about 2OVo of total benefits, or abont $2,666 be broken down into a number of specific
s, and
per employee on average. (as per a 1999 study.) actions.
)mpany's
rat is our Objectives: (in planning) Details about goals in
Net lncOme is total revcnuc minus total expcnse, 'terms of what, how much, when, and by whom
111 whars left of the rnonies received after all debts
an action is to be accomplished.
purposes l haVe been paid,the bottom linc.If Netlncome is
l pOSit C it is also callcd Nct Profit.A ncgativO Observation A method of data collection in which
I Netlncomcis a Net Loss. the situation of interest is watched and the
physical, relevant facts, actions and behaviors are
n of the recorded. This is a important area of library use
:ps (such which is usually uncounted--what people are
actually doing in the library e.g., browsing, using
the computer, reading to a child, etc.
a policy,
zays that Observation interview: A method of assessing job
requirements and skills by observing the
avior of employee at work, followed by an interview
its basic with the employee for further assessment and
insight.

;, goals,, Off shoring: The act of moving work to an overseas

dividual al scalc A rneasu Incnt sc e
h whch location to take advantage of lower labor costs.
Off shoring usually involves manufacturing;
:tivities, l numbers are assigned to attributes of ottects Or
rd wants ' information technology and back-office services

11:lil: lcruy br ttc PuttoSe Of like call centers and bill processing. Companies
can build its own work center abroad, establish a
central lNOn:disdosure Agreement: a legal contract that foreign division, or create a subsidiary in remote
: to visit anows a company to sharc its intcllcctual locations.
positive l prOperty cP)With Others,whose input it necds,
is view Withbut undulyjeopardizing that infollllation. On boarding: The process of moving a new hire
, yet is from applicant to employee status ensuring that
N9m probabilil sample:A sample that relies on paperwork is done, benefits administration is
l perSOnal judgmcnt soFneWhere in thc clcmcnt underway, and orientation is completed.
;closure SeleCtiOn proccss.
lct that Organic Search Results: Search results returned by
Nonprorlt marketing: The nrkcting of a product search engines that are based purely on the
others,
unduly
or service in which the offer itsclf is notintended content of the pages and page popularity.
to make a monetary profit for the marketer. Organic search results are not categorized
Norms:The rulcs Of bchavior that are part of thc directory results, or pay-per-click advertising
re type, results. According to marketingsherpa.com, total
ideology of the group.NollllS tCnd to reflect the
values of thc group and specify thosc actions
money spent on search engine optimization
' more that are proper and thOsc that are inapprop at ,
represents only l2%o of what is spent on pay-for-
nsus or as wen as rewards for adhcrcnce and thc click advertising (PPC). What makes this
statistic so startling is that it is that organic

punishment fOr cOnforlmty, No 11lS are

search engine results (those that show up in

l ilnpOrtant for libraHans to undcrstand whcn

se ing culturally divcrse llnarkets.
natural "free" listings) are better noticed, read,
and clicked on than the paid listings.
eCt e:A business Oucct e is something the
10
Organizational Culture: The values, attitudes,
tional" l buShess is dming tOward or a stratc c pod On beliefs and behaviors that characterize an
include l itiS WOrking to attain.Usually it is a step in thc organization. It is the unwritten workplace ethos
:nefits. l Strategy.0 ectiVes are sin lar to goals,but that is picked up by new employees.
 180
Organizational Development: A planned
organization-wide effort to improve and increase
the organizations effectiveness, productivity,
return on investment and overall employee job
satisfaction through planned interventions in the
organization's processes.
Orientation: Introducing new hires to the
organization and its policies, benefits and
culture. Training and familiarization with each
department are sometimes included.
OSIIA: The Occupation Safety and Health
Administration, an agency of the U.S.
Department of Labor. The agency's goal is to
promote health and reduce accidents, injury and
death in the workplace.
Outplacement: A benefit offered by a downsizing
employer to assist former employees in re-
entering the job market. Assistance can include
job training, resume workshops, interview
practice and career counseling.
Outsourcing: Contracting out non-core functions,
such as payroll, benefits administration or
nlanufacturing, to save money and focus on what
the company does best.
OD Organization Development (OD) is an evolving
field of consulting practice that is dedicated to
understanding and positively impacting rhe
. processes of human systems (formal and
informal groups, tearns, organizations, and
individual leaders) in order to increase their
effectiveness, health and overall success. OD
practitioners leverage the best of a variety of
disciplines, including applied behavioral science.
OD focuses on achieving results through people.
Opinion A belief or emotionally neutral cognition
the individual holds about some aspect or object
in the environment.
Opportunities A company's opportunities are the
gains it has the potential to realize. It may have
the potential to gain market share, the ability to
raise cash by divesting of less-profitable units,
etc. Opportunities are also part of a SWOT
analysis, the abbreviation for strengths,
weaknesses, opportunities, and threats.
Oppprtunity cost: If you are following Plan A, then
you give up the opportunity of alternative Plans
B, C, etc. The value of what you give up (i.e.,
sacrifice or forego) is thebpportunity cost.
Ordinal scale A measurement in which numbers
assigned to attributes of objects of classes
objects to reflect the order. Pa5
Organization Development Organizat
Development (OD) is an evolving field
consulting practice that is dedicated
understanding and positively impacting the
processes of human systems (formal and
informal groups, teams, organizations, and, Pet
individual leaders) in order to increase their
effectiveness, health and overall success. OD
practitioners leverage the best of a variety of Pe
disciplines, including applied behavioral science.
OD focuses on achieving results through people.
Pel
Output evaluation An objective measure of use,
performance, such as circulation per capita of a
library population, reference transactions per,
capita, etc.
Outputs: (in planning) The products that emerge,
from a planning process in terms of information,
actions, and other results.
Outsourcing, involves an orga.nization pdssing the
provision of a service or the execution of a task
previously undertaken in-house to a third party
Pe
to perform on its behalf.
Ownership: (in planning) To agree with and accept
a plan, especially because of having contributed
to its formulation.
Paradigm A par4digm is a pattern or example. In
business it is a ffamework of behaviors or set of
rules action governing people's actions and
assumptions.
Pareto chart: A quality assurance tool that ranks
information, like reasons for certain problems, in
descending order. The goal is to identify the
. most serious problems so improvements can be
made.
Pay-Per-Click (PPC): Online advertising payment
model in which payment is based on qualifying Pr
click-through. A typical PPC agreement has the
. advertiser paying for clicks to the destination site
based on a prearranged per-click rate. Popular
PPC advdrtising options include search engines
(right sidebar on Google). Paying per click is
different than paying per impression which
generates lower-quality traffic/leads.
Pay-Per-Impression: Online advertising payment
mode in which payment is based on how often
the "publisher" (e.g., web site where you
purchase a banner ad) shows your banner ad on
 181

r their web site (e.g., an 'limpression"). Typically, factors (e.g., 80 percent of the results can be
prices are set per one thousand exposures. explained by 20 percent of the causes).

Payroll: Documentation created and maintained by Participatory planning: To invite people to express
the employer containing such information as their beliefs, preferences, and recommendations
ization hours worked, salaries, wages, commissions, during the course of a planning exercise,
:ld of bonuses, vacation/sick, pay, contributions to especially when the participation extends to
:d to qualified health and pension plans, net pay apd people outside the organization that does the
g the deductions. planning.
I and
Peer appraisal: A performance assessment given by Patronage motives The motives that dnve an
, and . individuaUuser toward selection of a particular
: their' an employee's peers lvho have observed the
s. OD i employee's job Performance' outlet, retailer, or supplier of services.
ety of Performance Appraisal: A periodic review and Patterns of behavior that differ from those of the
:ience,
' evaluation of an individual's job performance. overall culture. These subcultures are important
eople.
:Pcrformance Improvement: A plan to improve an PDCA is a cycle of activities (Plan, Do, Check, Act)
of use employee's performance in which the designed to drive continuous improvement.
taofa ' performance problem is identified, modified and Initially implemented in manufacturing, it has
rs per monitored. broad applicability in business. First developed
by Walter Shewhart, it was popularized by
Per{ormance Management: The process of Edwards Deming.
)merge. maintaining or improving employee job
nation, performance through the use of performance Penetrated market: Actual set of users actually
assessment tools, coaching and counseling. The consuming the product/service. (Kotler)
ng the ultimate goal is to better meet organizational
Per capita income: A nation's or other geographic
a task objectives.
market's total income divided by the number of
I party Performance Planning: An organization-wide plan persons in its population.
to manage employeos and their performance
wherein goals are set for employees, Perception is the cognitive impression that is formed
accept
departments and the organization as a whole.
of "reality" which in tum influences the
ibuted
individual's actions and behavior toward that
Plan,sponsor: An entity that has adopted and has object. 1

ple. In maintained an employee-benefit plan. The plan

'set of sponsor is often an employer, but may be a
Performance indicator: (in planning) The
union or a professional association. The Plan measurement or other type of evidence that
s and
shows whether or not a goal is being achieved.
Sponsor is responsible for determining employee
participation and the amount of benefits Personal income: The current income received by
ranks involved. persons from all sources less contributions for
lms, in
An social insurance--e. g., Social Security (US).
fy the Probationary Arrangement: agreement
:an be between an employer and employee that the Personal interview: A direct, face-to face
employee will work for a set amount of time on conversation between a representative of the
' a trial or probationary period. research organization (the interviewer) and a
ryment
respondent or interviewee.
lifying Professional Employer Organization (PEO): A
ras the staffing service that is contracted to assume the Personality: Consistent pattem of responses to the
on site employers responsibilities and risk for hisftter ' stimuli from both internal and extemal sources.
'opular worKorce. Employees are legally co-employed Physical inventory: An inventory determined by
,ngines by the PEO. The PEO is responsible for such actual count and evidenced by a listing of
lick is actions as the preparation of accurate payroll quantity, weight, or measure. Number of
which
checks, the remittance of payroll taxes to federal volumes, periodicals, vides a library owns.
and state jurisdictions and the preparation of
Place: In the channels of distribution, the physical
tyment various tax information.
z often
facilities point of location (bookmobiles,
Pareto principle: The concept that most of a given branches, etc.)
3 you
set of results are due to a small number of causal
ad on
 L82
PIan Do Check Act is a cycle of activities designed
to drive continuous improvement. Initially
implemented in manufacturing, it has broad
applicability in business. First developed by
Walter Shewhart, it was populaizedby Edwards
Deming.
Planning: The process of looking into the future'and
defining strategies (actions, interventions) to
achieve goals.
Point-of-purchase: Promotional materials placed at
the contact sales point designed to attract user
interest or call attention to a special offer, e.g.,
'Sigrt up for Summer Reading Program.'
Point-of-sale (POS): A data collection system that
electronically receives and stores bar code
information derived from a sales transaction.
This could the zip codes for library users,
facilitating the library in determining geographic
market are that users reside in.
Population at need: The elements of the population
who have or will develop a particular need,
want, or risk.
Population The totality of cases that conforms to
some designated specifications.
Potential market - Set of users who profess some
level of interest in a designed market offer.
Poverty level The poverty level is based solely on
money income and updated every year to reflect
changes in the consumer price index, used to
classify families as being above or below the
poverty level.
Pre industrialized country Characteristics: 1) low
literacy rates and high percentage of
employment in agriculture; 2) low population
density and low degree of urbanization; 3)
linguistic heterogeneity and a small percentage
of working age population; 4) industrial sectors
nonexistent and undeveloped; 5) heavy reliance
on foreign sources for all manufacturers and
principal engagement in agricultural endeavors.
Press conference A. convening of media by a person
or organization to explain, announce or expand
on a particular subject.
Price The formal ratio that indicates the quantities of
money. goods or services needed to acquire a
given quantity of goods or services. For a library
user price may come in the form of time the
library users must expend to obtain library
materials or services.
Private sector Activities outside the public sector
that are independent of government control,
usually, but not always carried on for a profit.
Product A bundle of attributes or features, functions,
benefits and uses capable of exchange, usually in
tangible or intangible forms. The library's
products include matenals to use, questions
answered, story hours, online searching, etc.
Product life cycle The four stages products go
through from birth to death: introductory,
growth, maturity, and decline.
Product mix The full set of products offered by an
organization e.g., books, videos, story hours, etc.
Product positioning: The way,users/consumers
view competitive brands or types of products.
This can be manipulated by the;
organization/library. The library's video'
collection, available for
Profit and Loss Statement is a standard financial
document that summarizes a company's revenue
and expenses for a specific period of time,
usually one quarter of a fiscal year and the ent
fiscal year.
Promotion mix The various communication'
techniques such as advertising, personal selling;
sales promotion, and public relations/ product'
publicity available to the marketer to achieve
specific goals. A library may use a combination,
of newspaper editorial, public service
announcements on radio and possible televisi
Q
if no budget is available for advertising.
Psychographic analysis A technique
investigates how people live, what
them, what theyl like--also called life
analysis or AIO because it relies on a number
statements about a person's activities,
and opinions.
Psychographic segmentation Dividing markets i
segments on the basis of consumer life styles.
Public opinion The consensus view of a popu
on a topic.
Public policy"A coulse of action pursued by
government pertaining to people as a whole
which laws rest.
Public relations The form of
management that seeks to make use of publici
and other nonpaid forms of promotion
information to influence feelings, opinions,
beliefs about the agency/library and its o
 :
183

lic r,ii,.l This is a traditional form of communication for Recruitment: The process of finding and hiring the
con
li,' library managernent, as paid advertising media is best-qualified candidate for a position.
rrofit. rarely used. Recruitment Process Outsourcing (RPO): The
Public sector Those marketing activi.ties that are a outsourcing of the recruiting process to a third
uncttons
carried out by govemment agencies for public party.
rsually in
service rather than for Profit. Redundancy: Eliminating jobs or job categories as
libraryi ..:
luest Public service announcement (PSA): An they become unnecessary to the functioning of
etc. ' advertisement or commercial that is carried by an organization.

lucts an advertising vehicle at no cost as a public Replacement charts: A tool in succession planning
service to its readers, viewers, or listeners. While in which current and future job vacancies, as
the no cost aspect is appealing, a library or other well as the number of employees in currently
agency utilizing this media quickly realizes there filled jobs, are visually summarized.
:d by is no control on the most effective time of
,urs, etc.
placement.
Request for proposal (RFP): It is a request sent by
a company to a vendor to submit a bid for a
nsumers Publics The groups of people that have an actual or product or service. The bid includes a timeline, a
,roducts.
possible interest in 9r impact on the company's ,description of the good or service, the type of
y the efforts to achieve its goals. contract, cost and other specifics.
video
.Quality control An ongoing analysis of operations, Restrictive covenant: Also known as a negative
to verify goods or service meet specified covenant; a provision in a contract excluding key
inancial standards, or to better answer customer/user employees from working for competitors in a
revenue complaints. Libraries have been criticized for not certain geographic area and for a certain length
,f time, employing more quality control standards on of time.
e entire library services.
Return on investment (ROI): The percentage of
Quality management: A system to make sure that a profit on an investment compared to the cost of
rication product or service meets standards of excellence, that investment also called the rate of return or
selling, and that the process by which the product or yield. .
rroduct service is created is efficient and effective as
rchievg well. The three key components of this system Right to manage: The "right" of management to
ination , are quality control, quality assurance and quality conduct business without having to answer to
service improvement. internal or extemal forces for their decisions.
:vision, Risk Management: The use of insurance and other
Quality of life Sometimes measured by income,
wealth, safety, recreation and education strategies to mininuze an organization's
rhat facilities, education health, aesthetics, leisure exposure to liability in the event of loss or
Iterests time and the like. injury.
style : Quantity discount: A reduction in price for volume RSS (ReaI Simple Syndication): A commonly used
rber of protocol for delivering web-based content such
purchases.
terests as blogs. RSS is an XMl-based format that
Questionnaire A
document that is used to guide allows webmasters to provide fresh web content
what questions are to be asked respondents and in a succinct manner. It is fast becoming an easy
ts into
in what order, sometimes lists the alternative and affordable way to spread content.
es.
responses that are acceptable. An excellent
rlation research instrument for libraries to assess Range The maximum distance a consumer is
customer satisfaction is exit interviews. ordinarily willing to travel for a good or service;
as such it determines the outer limit of a

R & D is the abbreviation for Research and store/library's market area. Research in the

Development. This refers to the line on an

library field indicate there is an average two mile
income statement showing the amount of money limit for a library user to travel to a branch,
a company has re-invested during the period to while for a central library with specialized good,
;ation find and develop new products.
rlicity it may widen to even 10 or 15 miles. This
Random Testing: Employer-administered drug and research does not allow for the travel limrtations
and
alcohol tests conducted at random intervals. imposed by culture, age, or physical handicap, or
ns or
topographicaI bamers.
rings,

Reach The number of people or households
to a particular advertising media
exposed
or media
schedule during a specified time.
Reference group A group that the individual tends
to use as the anc*ror point for evaluating hisArer
own beliefs and attitudes. Teenagers influence
their peers regarding library use.
Regression analysis: A statistical technique to
derive an equation that relates a iingle,
continuous criterion variable to one or more
continuous predictor variables.
Reilly's law A model used in trade area analysis to
define the relative ability of two cities to utt u"t
users from the area between them.
Relationship Marketing refers to the benefits
that
ongoing relationships with key customers can
bring to an organization.
Request for Proposal is a document issued when
an
organization wants to
buy something and
chooses to make-the specifiiations available
to
many other companies so they can submit
competitive bids.
Request for Quotation is a document issued when
an organization wants to buy something and
chooses to make the specifications available
to
many other companies so they can submit
competitive bids.
Research and Development refers to the line
on an
income statement showing the amount of money
a company has re-invested during the period to
find and develop new products.
Respondent A person who is asked for information
using either written or verbal questioning,
typically employing a questionnaire to guide thi
questioning.
Restricted Siock Units of stock with restrictions on
when they can be sold, usually issued as partial
compensation for employees and directqrs. The
restriction usually lifts in 3 to 5 years when the
stock vests.
Return on Assets (abbreviated ROA) is a measure
of 4 company's profitability. It is calculated as
earnings divided total average assets and is
expressed as a percentage.
Return on Investment (abbreviated ROf) is a
measure of a company,s ability to use its assets
to generate.additional value for shareholders. It
is calculated as Net profit divided by Net Worth,
and expressed as a percentage.
184
Revenue is money generated by a company,s
operations, before deductions for expenses.
RFP is the abbreviation for Requesi for proposal.
An
RFP is issued when an organization *unt, to buy
something and chooses to make th;
specifications available to many other companies
so they can submit competitive bids.
RFQ is the abbreviation for Requesf for
euotation.
An RFQ is issued when an organization wants
to
buy something and chooses to make the
specifications available to many other companies
so they can submit competitive bids.
ROA is the abbreviation for Retum on Assets. It
is a
measure of a company's profitability and
is
calculated as earnings divided totui ,u.rug.
assets. ROA is expressed as a percentage.
ROI is the abbreviation for Return on Investment.
It
is a measure of a company's ability to use its
assets to generate additional value for
shareholders. It is calculated as Net profit
divided by Net Worth, and expressed as a
percentage.
RoIe playing: Individuals (e.g., in a planning
team)
are assigned to act out opinions and behavior
in
a given situation. This builds understanding of
different perspectives, and helps the ,,play-ers,,
anticipate real-world interactioni.
Roles The behavior that is expected
of people in
standard situations.
Root cause: The underlying reason for a symptom,
problem, or result,
Rural population The, part of the total population
not classified as urban.
Salary Compensation paid periodically to a person
independent of performance (in salis or levels
of
use stimulated.)
Sales Revenue is money generated by a company,s
sales operations, before deductionJ for expenses.
Sample survey A cross sectional study in which the
'is
sample selected to be representative of the
target population and in which the emphasis is
on the generation of summary statistics such as
averages and percentages.
Sample The selection of a subset of elements from a
larger group of objects.
Scanner An electronic device that automatically
reads imprinted codes, as the product is pulled
across the scanner. The library field is
 185

any's successfully using these for circulation and other networking into the recruiting process as a

use counts. means to attract and evaluate candidates.

t. An Scenario Planning involves testing business Sourcing: The developing of lists of potential
, buy strategies against a series of alternative futures. candidates. Also relates to the task of
the requisitioning, or creating job descriptions,
rnies Scenarlo: An account or story about what may approval workflows and actual job postings.
happen (actions) in a particular set of
Most e-recruitment software providers include
'
circumstances (possible environment). modules for requisitioning.
tion.
ts to Secondary shopping district: A cluster of stores
Staffing: A method of finding, evaluating, and
the outside the central business district that serves a establishing a working relationship with future
nies large population within a section or part of a large employees. They may be current employees or
city. future employees.
isa Self service The type of operation in which the Strategic HRM: Aligning human resource
lis ' customer/user i, , exposed to merchandise management (HRM) with the strategic goals of
:age (browsing and self-selection) without assistance, an organization.
unless customer/user seeks assistance.
Strategic Planning: The process of considenng an
r. It Self-concept The ideas, attitudes, and perceptions organization's future, usually three to five years
people have about themselves'
, its . ahead, and then working backward to create
for Selling orientation (Wood): A company-centered strategic plans and allot resources to realize this
ofit rather than a client-centered approach to conduct desired future state. This includes a hiring
SA of business. This' orientation tends to ignore strategy.
what the customer/user really wants and needs' Succession Planning: The process of identifying
rm) Optimization): The process long-range needs and cultivating a supply of
rin - (Search Engine
SEO
internal talent to meet those future needs. Used
of optimizing a web site (e.g., identifying and
of placing targeted keywords on web pages) to to anticipate the future needs of the organization
)rS " ensure the site places well when queried on and assist in finding, assessing and developing
search engines. It is important for corporate web the human capital necessary to the strategy of
in sites to optimize their visibility on search the organization.
' engines. Summary dismissal: The immediate firing of an
Self-Funded (Self-Insured) Plan: A health care employee, usually due to an act of gross
rID,
insurance program in which employers (usually misconduct.
larger companies) pay the specified health care Suspension: An employee is sent home for a period
on costs of their employees rather than insuring of time, usually without pay, as a disciplinary
them. Self-funded plans may be self- measure.
on administered, or the employer may contract a
third party administrator (TPA) for Service(s) Products such as a bank loan or home
of
administrative services only (ASO). security or library loans, that are intangible or at
least substantially so.
y's Social Media: Internet sites and services that allows
users to generate and exchange content and
Shewhart Cycle Named for Walter Shewhart who
discussed the concept in his 1939 book,
)s.
interact with each other in a variety of ways.
he "Statistical Method From the Viewpoint of
Forums, podcasts, bookmarking, blogs and
he
social networking sites are types of social media. Quality Control", it is the continuous
is improvement cycle of Plan, Do, Check, Act.
These types of interaction can be used for
AS
collaboration, communicat'ion and entertainment. Shopping good Goods and products can be
HR professionals use social media to source classified as convenience, shopping or specialty.
a candidates and create peerrnotworks. A shopping good is one that more time is spent
selecting @rowsing) than a quick convenience
Social Networking: The building of online good. Example, a certain type of mystery book.
ly communities of people who have common
:d interests. Linkedin, Facebook -.and myspace Situation analysis (SWOT) An examination of the
is facilitate these interconnected systems. HR internal factors of a library to identify strengths
departments have" begun to,.incorporate social
 186
and weaknesses, and the
external environment
-^" to
identify opportunitie, Steering cornmitteq A
,rd til;;. provide information ana
group of advisors who
Slogan: The verbal or written portion of an Ievel.
aavice ail,
advertising message that "*".otir"
summa.riz"s th" *rin
idea ttl:iiil:::]n;r'.1::' * I avou t or th e s tore/ri brary
SME: Small and Medium_sized r
Enterprises or SMEs ro provide _#r#,""sa:::.,Jrri:1".
are companies whose headcount or turnover :"J;
falls attractive display. Retail
below certain Iimits. store f"y*r, is also
Strategic market
Strategic Inllection point
occurs when a company,s
pfun"l1s The planning process
that yields deiisions in
competitive position goes h*ow , U,i*ir"r, uni,
throujha lransition. lt
is the point at whichihe Strategy is.the plan you
*grri?"r""
the path it is on adapting must alter develop to help you achieve
your vision. It
itself to the new
situation _ or risk-_ organization,,,"In#il'o;i ;J;':ffi:
sdt
concerned with how com-panies
;r;;-o^""i,n". r, i,
and environmenrai f";;;;r, ^ :1,#:i
,"-.o'gnir" una
rvwvi especially
adapt to "paradigm changes';"'-u competitors, that can impact
you.
Social advertising The advertising Strategy: (in planning) A
educarion or motivare designed to broad course of action,
underrake socially desirable
;*;" r,iji"n"". ro
chosen from among atternativei
io* attempt to
ac.tiorJ-*" achieve a stated goai.
Social class A status hierarchy by which S,.""1^{h.
individuals are classifiei groups and
iliil ;;;iJif .rt"". {. c_omnany,s
' .does well. strengrhs are the things
It may have , d;;r;;; _i.t"t it
and prestige. or have a low iurnover rate, ,hr."
etc. Strengths are
Social impact assessment: atso part of a SWor
Analysis of how ,r;rr;i.,;""J#reviation
different elements of a populati",
for srengths, weaknerr;;i-;;;;uii,i"r,.
g.i, or lose ---"' vyyvrlurrll una
threats.
of a policy,
,o::lr:"assessment program, or projecr. Social
lmpact strike_ price. is the price
pays particular attention
to
at which the horder of a
the interests of the poor, stock option may purchase
ethnic minorities, and the stock.
women. Subculture The segmenti
within a culture that share
Social indicator The data distinguishing "
and information that meanings,r"r, ,rj'"
facilitate "uf
the evatuation of how *Lii?i'""i"ry.. subliminal perception A psychorogicar
institution is doing. suggests that attitudes - view that
urO U"f,-uuio.r' U"
Social indicator: Measurement changed by stimuli tf,at "un
of a particular a.e- nJt'lonr"lou.ty
indicator of social welfare perceived.
rn oiJ..iortrack rhe
course of a social issue Survey: Systematic collection
or proUt". ttrough time. of information about a
defined population j often
Sne!11-tf advertising The placement by ;;;;i;rerviews
messages on a wide variety
of advertising of a subsample of the popuirrionl"" "^ "
of items of interest
to the target markets .u"n SWOT is the abbreviatiorr
ur-*i"rlJs, coffee for strengths, weaknesses,
cups, pens, hats, note paper,
rshirts, etc. opportunities, and 'four
Th-ese
factors
Specialty good provide a framework_threats.
A specialty good is one that
which an o.guniJurion
use to conduct a structured
users/consumers w].tf .p"na analysis "un
rlor time iarching operations. of its
for, and rime travellirg .urJ pur'ird. for. A
specialty_good could be a Tactics arg th9 specific actions,
l,^UJiV certain online sequences of actions,
servrce or special collection of materials. and schedules you use to
fulfiil youisirategy. tr
Stakeholder One of a group of publics you have more th
strategy you wilr have
with which a differenr racrics r":Hf
company must be concemed.
Key stakeholders
for a. library could be ur..r, Talent Management: Also called
members, vendors or other
.rnitffir, uoura Human Capital
who have a Management, the process of recruiting,
relationship with the library. managing, assessing, aevetoping
and
maintaining employees.
 187

who rewards: Gifts in the form of The marketing process.

cutive . merchandise, gift certificates, etq. That can be The mean is 56/7=8,
physically held or touched.
The median is 9,
ibrary Administrator (TPA) : An organization
Store that is responsible for the adminisration of The mode is 2
I and r,'insurance for a self-insured group. It does not have
Theory X: Douglas Mcgreagor's Theory X states
) ''any ,erpoosibiliry for payng claims. The self- that some people have an inherent dislike for
insured group is financially responsible. (See self- work and will avoid it whenever. These people
OCESS
insured group) need to be controlled and coerced by their
Remuneration: An employee's complete managers to achieve production. See Theory Y
rieve
fannual pay package, including benefit and
for the opposite.
your
ernal
pension plans, bonuses, incentives, and Theory Y: Douglas Mcgreagor's Theory Y states
:ially paychecks. that some people see work as natural will be
and development: Providing information self-directing if they are committed to the
and instruction that equips employees to better objectives. The manager's role with these people
tion, achieve their potential'
perform specific tasks or affain a higher level of is to help them See
)t to Theory X for the oPPosite.
knowledge.

faining Needs Analysis: An assessment to These are widely given out to libr.arians at
;s it I, determine the training needs of a group of professional conferences from vendors' Libraries
lare
may use these items as well, but afe usually sold
are , employees, taking into account the employees'
j; prior education and skills and the desiied in library gift shops.
tion
and "..
outcorne once training is completed. Threats: A company's threats are the dangers it
nover: The number of employees lost and faces, either from within or from outside'
gained over a given time Period. Threats can be things like a new low-cost
'fa
market identification The process of using
. competitor, possible new government
regulations, etc. Threats are also part of a SWOT
are income, demographic, and life style analysis, the abbreviation for strengths,
characteristics of a market and 'census weaknesses, opportunitie's' and threats.
infonnation for small areas to identify the most

favorable locations. Thumbnail A rough sketch for a layout for a piece

of print advertising.
arget market The particular segment of a total
population on which the retailer focuses its To recognize in library communities that
merchandising expertise to satisfy that sub may serve a disproportionate number, whose
ta market in order to accomplish its profit information needs may be nontraditional and
VS objectives. Or for the library, a target market unique.
' might be within the market area served, children Top Line refers to the top line of an Income
)S, 5-8 years old, for surnmer reading programs, to line shows the Total Sales
Statement. The top
rS , increasejuvenile use and registration, Revenue. When a company goal is to increase
tn ,Target population: The persons, households, the top line, it means to coqcenfrate on
IS organizations, and communities to be reached increasing grgss sales.
-with your interventions (policies, programs, Top-down process: (in planning) To transmit

projects). decisions and controls from the high levels of an

,Ieam: A group of people working together
common purpose, e.g., a planning team.
,Technolory The purposeful application of scientific
1
knowledge; an environmental force that consists
of inventions and innovations from applied
1 ' scientific and engineering research, telephone
' interview A telephone conversation between a
representative of the research organization, the
interviewer, and a respondent or interviewee.
for a organization to its lower levels.
Transfer of functions: The handover of some
planning and management powers from
govemments to non-governmental organizations'
Transportation A marketing function thdt adds time
and place utility to the product by moving it
from where it is made to where it is purchased

and used. In includes all intermediate steps in the
process.
Underdeveloped country Characteristics: small
factories erected to supply batteries, tires,
footwear, clothing, building materials and
packaged foods; agricultural activity declines
and degree of urbanization increases; available
educational effort expands and literacy rises.
Underprivileged family A family in social class that
does not have enough money to purchase the
necessities, i.e., shelter, clothing
transportation, appropriate for its class status.
Underwriter: A person or organization that ensures
money will be available to pay for losses that are
insured. An insurance company can be
considered an underwriter
Union: Workers who organize a united group,
usually related to the kind of work they do, to
collectively bargain for better work conditions,
pay or benefit incregses, etc.
Unjustifiable dismissal: Firing an employee in a
way that the courts do not find justifiable (i.e.
Unfairly or in violation of the employment
contract).
Unit control The control of stock in terms of
i
merchandise units rather than terms of dollar
value. This is representative of a the number of
books, magazines, etc of a library collection.
Urban population Persons living in places of 2,500
or more inhabitants incorporated as cities,
villages, boroughs, or areas designated as such
by the US Census, with some exceptions.
Utility The state or quality of being useful. What is
the utility of marketing practices to the library
field?
VALS (values and lifestyles) An acronym standing
for values and life styles. VALS is a
psychographic segmentation approach developed
at Stanford Research Institute International. This
data is useful to public and private sectoi.
Unfortunately, the data is still largely expensive,
therefore, libraries and other non-profits still
widely rely on demographics.
Value: The power of any good to command other
goods in peaceful and voluntary exchange.
Values: The beliefs about the important life goals
that consumers are trying to achieve. The
important enduring ideals or beliefs that guide
188
behavior within a culture or for a spec
person.
Variable Costs are expenses that vary based
production volumes. They include
labor, production utilities, etc.
Variety: The number of different classifications
goods carried in a particular merchandising unifr
How many different children's authors
represented in the juvenile collection?
and
Vest / Vesting To give someone control over t
stock or stock options.
When employees are given stock options
restricted stock, they often do not gain
over the stock or options for a period of ti
This period is known as the vesting period and
usually 3 to 5 years. During the vesting
the employee cannot sell or transfer the stock
options.
Vicarious learning The changes in an indiv
behavior brought about by observing the acti
of others and the consequences of those acti
Research indicates that immigrani adglts
t
m
Viral Marketing: Any marketing technique
induces people (or web sites) to pass on
marketing message to other people or si
creating a growth in the message's visibility r
effect. A classic example of this concept
Hotmail whereby each email sent via Hot
included Hotmail's own advertisement in
footer. l
Virtual HR: The use of various types of technology
to provide employees with self-serve optionsi
Voice response systems, employee kipsks
common methods.
Voluntary Benefits: Benefits that are paid for by
employee through payroll deductions.
employer pays for administration. Examples
these benefits include life insurance,
vision, disability income, auto insurance, lon
term care coverage, medical supplement plandr
and homeowners insurance. l
Vision A guiding therm that articulatcs the,ature Of
the business/library and its intentions for
future, based upon how management believes
the environment will unfold. A vision is
informed, share, competitive and enabling. I
Vision Your organization Vidon is the over
pHnciple that guidcs the ottahiZation.It dein
 189

,i what you want the organization to be' The vision

Workroom A service department such as apparel
alterations, drapery manufacture, library
,.,, is often the dream of the founder or leader'
materials Processing.
iVage drift: The difference between basic
pay and
earnings, due to a variety ofpossible factors XML and HR')OVIL: Extensible Markup Language'
, io,ut ' A common system used for defining data'
,i *o"t as oiertime, bonuses, gender' age and
Unlike HTML, XML is not a fixed set of
,:,. performance.
elements. XML allows information creators to
ications
iising tll blower:An cmp10yce whO publiCly revealS apply descriptive markup (or "tags") around each

I
rthors aisciete element of data. The HR-XML
In 10 te Consortium strives to spare employers and
1 II6n by c ProtCtCd Disc10sures Act of vendors the risk and expense of having to
2000. negotiate and agree upon data interchange
mechanisms on an ad-hoc basis' By using XML'
ptlons the Consortium provides the means tbt' any
lln con company to transact with other companies
d of til
without having to establish, engineer, and
Hod and implement many separate interchange
greatrinlmem atW d at holne.
mechanisms.
ing pe :

e stock Z,IP code A geographical classification system

developed Uy tfre U.S. government for mail
ndi id distibution, a nested numeric range of 5 to 9
hc act numbers.
le actil

ults
it thi

lool.

lquc
ass on
or sl
bility a
cept was
Hotmail
rt in

Wan The w hC nceds,cra ngs,demandS Or

chnology desires of hulnan beings.
options:
osks are

or by the
ns. The
mples of
, dental, . OpportuniticS,and thrCats.
:e, long-
nt plans ealth The aggregate of an possessions of
econoIIllC g00d Owned by a persOn.
SerS m
:T l TrS

lature of W
for

1I
the
beiieves
sion is
o
b'

:r-riding
defines
 190

ErnrrocRAPIrY & RnnnRENCEs

www.nts.org.pk

http://www.cssforum'com.pk/off-topic-section/general-knowledge-quizzes-iq-tests/29535-analytical-
reasoning-iq-questions. html

www.bestsamplequestions.com/gre.../analytical-reasoning- 1 0.html

Effective Business communication by Herta A Murphy and charles E peck

Source: http://www.englisch-hi lfen.delen/words/synonyms.htm

S ource : http ://www.michigan-proficiency-exams.com/antonym-list.html

Accounting by Meigs Williams and Haka Bettner, 7th Edition.

Assael, Henry' Consumer Behavior and Marketing Action, Znd ed.Boston,

MA.: Kent publishing Co.,
t984.

Bennett, Peter D., ed. Dictionary of Marketing Terms,, 2nd ed. Pubtshed in conjunction with the
American Marketing Association. chicago, IL.: NTC Business Books, 1995.

Business Marh by Cheryl Cleaves and Margie Hobbs 4th Edition.

Effective business communication by Herta A Murphy, Herbert and Jane. SIE, 7th Edition.

Fundamentals of Financial Management by James c and John M, 13th Edition.

http ://catalystcon sultin gpartners. com./glos s ary. html

http://ww w.economist.com/economi cs-a-to-z

http://www.fao.org/docrep/w896 lelw896 1 e0B.htm

http ://ww w. geolib. org/pdf/marketingterms.pdf

http ://www.hrmarketer.com/honp/trcm-glossary.php

Koontz, Christine. Florida State University, Tallahassee, EL 32306. Developed select library
definitions from fifteen years of work and reading in the marketing field. Taught ntnprofit marketing
to graduate library and information studies students utilizing a nonprofit btrsinels text.

Kotler, Philip. Marketing for Non-Profit Organizations, 5th ed. Englewood Cliffs, NJ: prenrice- Hall,
Inc., 1996.

Managerial Economics, by H. Craig and W. Chris Irwis, 4th Edition.

Mathematical Methods for Business and Economics, Schaum Series by Edwared T. Dowling.

Wood, Elizabeth J. Strategic Marketing for Libraries: a Handbook. Westport, CT: Greenwood
Publishing, 1988
nalytical-

lishing Co.,

on with the

ing.

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