Beruflich Dokumente
Kultur Dokumente
The hypothesis that ‘consumption in one period would be a function of income in that period and the returns
on savings of the previous period’ is given by
(A) Irving Fisher
(B) Franco Modigliani
(C) Duesenberry
(D) Robert Hall
Answer: (B)
2. From the following identify one which is not a property of Indifference curve?
(A) Indifference curves are downward sloping.
(B) Indifference curves are concave to the origin.
(C) Indifference curves are convex to the origin.
(D) Indifference curves do not intersect each other.
Answer: (B)
4. Arrange the following in the proper order for decision under capital budgeting.
(i) Estimating the cost and benefits of proposals.
(ii) Deciding the investment objective.
(iii) Selecting the best investment proposal.
(iv) Applying the capital budgeting decision technique.
Codes:
(A) (ii) (iv) (i) (iii)
(B) (ii) (iv) (iii) (i)
(C) (ii) (i) (iv) (iii)
(D) (ii) (i) (iii) (iv)
Answer: (C)
5. Match the following items in List – A with the most appropriate options from List – B:
List-A List-B
a. A lender buys securities to protect him from a falling interest rate 1. Interest rate
collarwww.netugc.com
b. A borrower buys securities to protect himself from rising interest rate 2. Interest rate cap
c. A combination of interest rate cap and floor 3. Interest rate corridor
d. A combination of two or more interest rate caps 4. Interest rate floor
Codes:
abcd
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
Answer: (B)
6. The form of learning in which people acquire new behaviours by systematically observing the rewards and
punishments given to others is known as
(A) Operant conditioning
(B) Positive reinforcement
(C) Modelling
(D) Law of effect
Answer: (A)
12. Who among the following propounded the concept of collective bargaining?
(A) Beatrice and Gompers
(B) Beatrice and Emerson
(C) Gompers and Emerson
(D) Gautt and Gompers
Answer: (Wrong question)
16. Which ratio explains that how much portion of earning is distributed in the form of dividend?
(A) Dividend – Debt Ratio
(B) Equity – Debt Ratio
(C) Pay-out Ratio
(D) Earning – Yield Ratio
Answer: (C)
19. Which of the following is one of the critical assumptions of Walters’ Model?
(A) All financing is done through retained earnings; external sources of funds like debt or new equity capital are
not used.
(B) The retention ratio, once decided upon, is constant. Thus, the growth rate, (g = br) is also constant.
(C) The capital markets are perfect and the investors behave rationally.
(D) All of the above.
Answer: (A)
20. This consists of two lists of statements or terms and the candidate has to match an item in one list with an
item in the other:
List-I List-II
(Statement) (Terms)
a. Preventing hostile takeover 1. Management buyout
b. Leveraged buyout 2. Green mail
c. Accounting for merger 3. Pooling of interest
d. Financing for merger 4. Cash offer
Codes:
abcd
(A) 1 2 3 4
(B) 2 1 4 3
(C) 2 1 3 4
(D) 3 4 2 1
Answer: (C)
21. What kind of pricing strategy a firm should normally follow for marketing electronic goods?
(A) Penetration pricing strategy
(B) Skimming pricing strategy
(C) Cost plus pricing strategy
(D) All of the above
Answer: (Wrong question)
23. Which of the following function involved under marketing management’s function?
1. Collection of market information
2. Marketing coordination
3. Marketing controlling
4. All the above
Codes:
(A) 1 & 2
(B) 2 & 3
(C) 3 only
(D) 4 only
Answer: (D)
29. Statement – I: One of the major causes of the industry for larger capacity is the argument that large facilities
facilitate greater economies of scale. But the major concern for building big capacity is that funds will be tied up
or scarcity of funds.
Statement – II: A viable alternative to larger capacity production facilities is to develop subcontractor and
supplier networks.
(A) Both statements I & II are correct.
(B) Both statements I & II are false.
(C) Statement I is correct and II is false.
(D) Statement II is correct and I is false.
Answer: (A)
31. From the following, identify the test which can be used both as parametric and non-parametric?
(A) ‘t’ test
(B) ‘F’ test
(C) ‘Chi-square’ test
(D) ‘Wil-coxon’ test
Answer: (C)
32. Arrange the following in ascending order in the testing of hypothesis:
(i) Determining the level of significance
(ii) Deciding the Statistical Test and computation
(iii) Setting the hypothesis
(iv) Decision
Codes:
(A) (iii), (ii), (i) and (iv)
(B) (iii), (i), (ii) and (iv)
(C) (i), (iii), (ii) and (iv)
(D) (i), (iii), (iv) and (ii)
Answer: (B)
33. Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X = dependent variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X = independent variable
(C) Y = independent variable, a = dependent variable, b = Y intercept and X = slope of the line
(D) Y = dependent variable, a = Y intercept, b = slope of the line and X = independent variable
Answer: (D)
34. Select the most appropriate option from Column B against the items in Column A:
Column A Column B
a. Computer used to operate large corporate systems and databases 1.Components of information system
b. Data flow diagram 2. RAID
c. Equipment, procedures and end user 3. Structured design
Codes:
abc
(A) 3 2 1
(B) 2 3 1
(C) 1 2 3
(D) 2 1 3
Answer: (B)
35. According to Michael Porter, a strategy aims at producing products and services considered unique industry
wide and directed at consumers who are relatively price-insensitive is known as
(A) Cost Leadership – Best Value
(B) Differentiation
(C) Focus – Low Cost
(D) Focus – Best Value
Answer: (B)
36. In context of Industry Analysis which matrix allows strategists to summarise and evaluate economic, social,
cultural, demographic, environmental, political, governmental, legal, technological and competitive
information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix
(D) IFE Matrix
Answer: (A)
37. Which among the following best describes the process of gaining competitive advantage in a firm?
(A) Strengths → Weaknesses → Distinctive Competencies → Competitive Advantage
(B) Weaknesses → Strengths → Distinctive Advantages → Competitive Advantages
(C) Weaknesses → Strengths → Distinctive Competencies → Competitive Advantages
(D) Distinctive Competencies → Weaknesses → Strengths → Competitive Advantages
Answer: (A)
38. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of the
following five forces:
1. Rivalry among competing firms.
2. Potential entry of new competitors.
3. Potential development of substitute products.
4. Bargaining power of suppliers.
5. Bargaining power of consumers.
Identify the force which is central (most powerful) to remaining four:
(A) Potential development of substitute products.
(B) Potential entry of new competitors.
(C) Bargaining power of consumers.
(D) Rivalry among competing firms.
Answer: (D)
41. “An entrepreneur always searches for change, responds to it and exploits it as an opportunity.” Who said it?
(A) F.W. Taylor
(B) Peter F. Drucker
(C) J.R. Tulsian
(D) Max Weber
Answer: (B)
45. The customer joining the queue and leaving it afterwards is defined as
(A) Jockeying
(B) Balking
(C) Reneging
(D) None of the above
Answer: (C)
46. Which among the following is not correct with regards to Clause 49 of SEBI Act?
(A) It came into effect from 31stDecember 2005.
(B) Clause 49 is related to the Listing Agreement to the Indian Stock Exchange.
(C) It desires 50 percent in dependent Directors.
(D) None of the above
Answer: (D)
47. Which of the following powers of Directors cannot be exercised without the consent of shareholders in
General Meeting?
(A) Power to make calls on shareholders
(B) Power to make loans
(C) Power to buy back its shares
(D) Power to borrow monies exceeding the aggregate of the paid-up capital of the company and its free reserves.
Answer: (D)
48. The professional having high ranking and trained to uphold the highest standard and effective operations,
compliance and administration as corporate governance, is known aswww.netugc.com
(A) Directors of Company
(B) Chairman of Company
(C) Company Secretary
(D) Shareholders
Answer: (C)
49. Governance is the system of values, policies and institutions by which a society manages its economic,
political and social affairs through interactions within and among the state, civil society and private sector is
defined by
(A) World Bank
(B) UNDP
(C) European Commission
(D) None of the above
Answer: (B)
2. If a firm raises Rs. 1, 00,000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that
equates the present value of cash inflows with the present value of cash outflows is referred to as
(A) Explicit cost
(B) Implicit cost
(C) Specific cost
(D) Future cost
Answers: (A)
4. Statement I: Demand for a commodity refers to quantity of the commodity demanded at a certain price during
any particular period of time.
Statement II: Contraction of demand is the result of increase in the price of the goods concerned.
(A) Both I & II are correct.
(B) Both I and II are incorrect.
(C) I is correct and II is incorrect.
(D) II is correct and I is incorrect.
Answers: (A)
5. Match the items given in List-I with most suitable options given in List-II.
List – I List – II
(a) Rate of discount which equates the net present value to zero. (i) Payback period
(b) Ratio of present value of cash inflows to the cash outflow. (ii) Internal Rate of Return
(c) Percentage of annual net income earned on average fund invested in a project. (iii) Profitability Index
(d) Investment divided by annual net cash inflow. (iv) Average Rate of Return
Codes:
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(B) (iii) (ii) (i) (iv)
(C) (ii) (iii) (iv) (i)
(D) (ii) (iii) (i) (iv)
Answers: (C)
6. The process through which individuals attempt to determine the causes behind others’ behaviour is known as
(A) Perception
(B) Attitude
(C) Attribution
(D) Social identity theory
Answers: (C)
16. In which case, the acquirer puts pressure on the management of the target company by threatening to make
an open offer; the board capitulates straight away and agrees for settlement with the acquirer for change of
control.
(A) Poison Put
(B) Bear Hug
(C) Poison Pill
(D) None of the above
Answers: (B)
17. Which of the following method of incorporation of risk in the capital budgeting decision framework is
useful for situations in which decisions at one point of time also affect the decisions of the firm at some later
date?
(A) Certainty Equivalent Approach
(B) Probability Distribution Approach
(C) Risk-adjusted Discount Rate Approach
(D) Decision-tree Approach
Answers: (D)
18. In which of the approach, the market value of the firm depends upon the EBIT and the overall cost of capital
(A) Net Income Approach
(B) Net Operating Income Approach
(C) Modigliani-Miller Approach
(D) None of the above
Answers: (B)
19. Which is the assumption of Modigliani and Miller approach to cost of capital?
(A) The firms can be classified into homogeneous risk class.
(B) The capital markets are assumed to be perfect.
(C) All investors have the same expectations from a firm’s net operating income which is necessary to evaluate
the value of a firm.
(D) All of the above.
Answers: (D)www.netugc.com
20. Match the following:
List – I List – II
(Functions of Finance) (Significance)
a. Financial Statements 1. Check on Financial Activities
b. Administration of Tax 2. Reduction of Tax Liability
c. Internal Audit 3. Allocation of Fund
d. Budgeting 4. Income Statement
Codes:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 2 1 3
(D) 2 3 4 1
Answers: (C)
21. A deliberate and careful choice of organisation, product, price promotion, place strategies and policies best
define the concept of
(A) Marketing Mix
(B) Product Mix
(C) Market Penetration
(D) Market Segmentation
Answers: (A)
23. Which of the following combination, according to hierarchy of effects model is correct?
(A) Awareness – Liking – Knowledge – Conviction – Preference – Purchase.
(B) Awareness – Knowledge – Liking – Preference – Conviction – Purchase.
(C) Awareness – Liking – Knowledge – Conviction – Purchase – Preference.
(D) Awareness – Preference – Knowledge – Liking – Preference – Purchase.
Answers: (B)
24. This consists of two lists of statements or terms and the candidate has to match an item in one list with an
item in the other.
List – I List – II
(Statement) (Terms)
I. Brands which are evaluated for the purchase decision. 1. Consideration set
II. Brands which are considered by the buyer for evaluation. 2. Evoked set
III. Brands which are disliked and avoided. 3. Inept set
IV. Brands which the buyer is aware but is indifferent towards it. 4. Inert set
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 2 3 4
(C) 2 1 3 4
(D) 2 1 4 3
Answers: (B)
25. “Marketing concept is the recognition on the part of management that all business decisions at the firm must
be made in the light of customer needs and wants, hence that all marketing activities must be under one
supervision and that all activities of a firm must be coordinated at the top in the light of market requirements.”
Who said it?
(A) Lazo and Carton
(B) Schwartz G
(C) King RL
(D) C.P. Mc Namara
Answers: (Wrong question)
27. Statement I: Mean (–X) chart do not give the desired result about process variability.
Statement II: Range (R) chart monitors process variability.
(A) Statement I is correct, but Statement II is false.
(B) Statement II is correct, but Statement I is false.
(C) Both Statements I and II are correct.
(D) Both Statements I and II are false.
Answers: (C)
29. There are different phases in a Operations Research Project. They are
(i) Research phase
(ii) Action phase
(iii) Judgement phase
The correct sequence of these phases is
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
Answers: (B)www.netugc.com
31. A vendor can make a profit of Rs. 3,000 with a probability of 0.4 or make a loss of Rs. 1,000 with a
probability of 0.6. What is his expected profit?
(A) Rs. 600
(B) Rs. 800
(C) Rs. 1,000
(D) Rs. 500
Answers: (A)
32. If the sample size is less than 50, which non parametric test can be used to test the independence of
attributes?
(A) Chi-square test
(B) Fisher Irwin test
(C) Cochran Q test
(D) Kruskal Wallis test
Answers: (B)
33. Match the items given in List-I with most appropriate options given in List-II.
List – I List – II
(a) Centroid Method (i) Multiple Regression
(b) Hierarchical Method (ii) Factor Analysis
(c) Relationship between a single metric dependent and two or more independent variables
(iii) MANOVA
(d) The main and interactive effects of categorical variables on multiple dependent interval variables. (iv)
Cluster Analysis
Codes:
(a) (b) (c) (d)
(A) (iv) (ii) (i) (iii)
(B) (ii) (iv) (i) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iv) (iii) (i) (ii)
Answers: (B)
35. Match the items given in Column-A with the items given in Column-B.
Column – A
Column - B
(a) A process to upgrade the quality of the data before it is moved into a data warehouse.
(i) Pattern recognition
(b) A system that is used to run the business in real time and is based on current data.
(ii) Data Scrubbing
(c) A critical success factor in data mining of large data store.
(iii) Operational system
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)
Answers: (A)
36. In BCG Matrix which division represents the organisation’s best long-run opportunities for growth and
profitability?
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
Answers: (B)
37. In a comprehensive strategy formulation framework which matrix reveals the relative attractiveness of
alternative strategies and thus provides objective basis for selecting specific strategies.
(A) SPACE Matrix
(B) SWOT Matrix
(C) QSPM Matrix
(D) Competitive Profile Matrix (CPM)
Answers: (C)
41. An Entrepreneur who is dominated more by customs, religions, traditions and past practices and he is not
ready to take any risk is called as
(A) Drone Entrepreneur
(B) Adoptive Entrepreneur
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur
Answers: (C)
42. “Poverty is an artificial creation. It does not belong to human civilization and we can change that and can
make people come out of poverty through redesigning our institutions and policies.” This preamble refers to
(A) Women Entrepreneurship
(B) Corporate Entrepreneurship
(C) Social Entrepreneurship
(D) None of the above
Answers: (C)
44. _______ means identifying and imitating the best in the world at specific tasks and functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(D) Continuous Improvement
Answers: (C)
46. Which of the following duties is not a general duty of directors of a company?
(A) Duty of good faith
(B) Duty of care
(C) Duty to attend Board Meeting
(D) Duty not to delegate
Answers: (C)