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1. Match the following components of
Business Environment :
(a) Economic
Environment
(i) Exim Policy
(b) Social
Environment
(ii) Customs
(c) Political
Environment
(iii) Social
Values
(d) Legal
Environment
(iv) Business
Law
and
Banking
Act
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (iv) (ii) (i)
(C) (iii) (i) (ii) (iv)
(D) (i) (ii) (iv) (iii)
2. Planning is a ______ process.
(A) Goal oriented
(B) Flexible
(C) Time bound
(D) All of the above
3. Which among the following have not
been opened for private sector
participation ?
(A) Power Sector
(B) Telecommunication Sector
(C) Education Sector
(D) Railways
4. VAT is imposed
(A) Directly on consumers
(B) On final stage of production
(C) On all stages from production
to final sales
(D) None of the above
5. In which of the following countries
the Industrial Revolution took place
first ?
(A) France (B) Germany
(C) England (D) U.S.A.
6. Accounting Standards Board of India
was established in the year
(A) 1970 (B) 1972
(C) 1973 (D) 1977
7. X and Y are partners in a firm. They
withdrew @ ` 1,500 and ` 1,000
respectively on 15th day of every
months for all the twelve months
during 2009. Interest on drawings is
chargeable @ 10% per annum. What
would be the interest on drawings
respectively ?
(A) ` 1,800 and ` 1,200
(B) ` 900 and ` 600
(C) ` 18,000 and ` 12,000
(D) ` 150 and ` 100
8. If the purchase consideration is
calculated by adding the various
payments to be made, the method is
called
(A) Lump-sum method
(B) Net-worth method
(C) Net-payments method
(D) Value of shares method

9. The following relate to the shares of
a company. What is the correct
order ?
(A) Issue, Application, Call and
Forfeiture.
(B) Application, Call, Forfeiture
and Issue.
(C) Call, Issue, Application and
Forfeiture.
(D) Forfeiture, Application, Issue
and Call.
10. The final accounts of a
manufacturing company generally
include the following statements :
(i) Balance Sheet
(ii) Manufacturing Account
(iii) Profit and Loss Account
(iv) Trading Account
(v) Profit and Loss Appropriation
Account
The correct sequence in which the
statements are prepared is :
(A) (i), (ii), (iii), (iv), (v)
(B) (ii), (iv), (iii), (v), (i)
(C) (v), (ii), (iv), (iii), (i)
(D) (i), (iv), (iii), (ii), (v)
11. The theory of Revealed Preference
was propounded by
(A) A. Marshall
(B) P.F. Drucker
(C) Paul Samuelson
(D) J.R. Hicks
12. Which of the following concepts is
considered as a myth ?
(A) Oligopoly
(B) Perfect competition
(C) Monopoly
(D) Imperfect competition
13. A perfectly competitive market in
the short run will be in equilibrium
where
(A) MC = AC
(B) MC = MR
(C) MC = Zero
(D) None of the above
14. Match the following :
(a) Perfect
competition
(i) No control
(b) Monopolistic
competition
(ii) Some
Control
(c) Oligopoly (iii) Practically
Some Control
(d) Monopoly (iv) Usual control
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (iii) (ii) (iv) (i)
(D) (iv) (iii) (ii) (i)
15. Statement (A) : The demand for the
product of a firm under
Oligopoly is at prices higher
than the prevailing market
prices.
Reason (R) : The Oligopolistic
firm faces a kinked demand
curve.
(A) Both (A) and (R) are false.
(B) Both (A) and (R) are true, but
(R) is not the correct
explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

16. In a factory, there are 1000 workers
consisting of 400 A-Grade workers
and 600 B-Grade workers. In AGrade,
300 are male workers; and in
B-Grade, only 200 are male workers.
How many female workers are there
in the factory ?
(A) 300 (B) 400
(C) 500 (D) 600
17. When a population is heterogeneous,
it is divided into groups, so that there
is homogeneity within the group and
heterogeneity between the groups,
and some items are selected at
random from each group. It is a case
of
(A) Cluster Random Sampling
(B) Systematic Random Sampling
(C) Quota Sampling
(D) Stratified Random Sampling
18. Which one among the following is a
small sample ?
(A) 5
(B) 10
(C) 29
(D) All the above
19. Which one of the following
softwares is used for Research
Analysis ?
(A) SAP (B) ERP
(C) SPSS (D) TALLY
20. Which one of the following is a
DataBase Management System ?
(A) MS Access
(B) MS Excel
(C) MS Outlook
(D) None of the above
21. Match the following :
(a) Maslow (i) Hygiene Theory
(b) Herzberg (ii) X and Y Theory
(c) Ouchi (iii) Need Hierarchy
Theory
(d) McGregor (iv) Z Theory
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (i) (iv) (iii)
(C) (iv) (iii) (ii) (i)
(D) (iii) (i) (iv) (ii)
22. Consider the following steps in the
decision making process; and select
the correct sequence :
(i) Defining the problem
(ii) Considering alternatives
(iii) Considering limiting factors
(iv) Selection of the best
alternative and implementation
(A) (i), (ii), (iii), (iv)
(B) (iii), (i), (iv), (ii)
(C) (i), (iv), (iii), (ii)
(D) (i), (iii), (iv), (ii)
23. “Unity of Objectives” principle
states that there should be
(A) Only one objective
(B) Pre-determined objectives
(C) Coordination among objectives
(D) None of the above
24. The concept of M.B.O. originally
came from
(A) F.W. Taylor
(B) A. H. Maslow
(C) Henry Fayol
(D) Peter F. Drucker

25. Which one is the most important
principle of Business Ethics ?
(A) Principle of unity of direction.
(B) Principle of proportional
judgement.
(C) Principle of scalar chain.
(D) Principle of span of control.
26. Match the following statements with
their authors :
(a) “Marketing is
the delivery of
standard of
living.”
(i) Peter F.
Drucker
(b) “Marketing
comprises both
buying and
selling
activities.”
(ii) Philip
Kotler
(c) “Marketing is
human activity
directed at
satisfying
needs and
wants through
exchange
process.”
(iii) Paul
Mazur
(d) “Marketing is a
process which
converts a
resource,
distinct
knowledge into
a contribution
of economic
value in the
market place.”
(iv) Pyle
(a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (iv) (ii) (iii) (i)
(C) (iii) (iv) (ii) (i)
(D) (i) (ii) (iv) (iii)
27. Which one of the following is not
the mode of Direct Distribution
System ?
(A) Trading mediators
(B) Vending machines
(C) Own sales depot
(D) Franchise shops
28. Which one of the following is
matched correctly ?
(A) Consumer
Promotion
– Sales
Meetings
(B) Dealer
Promotion
– Display
Allowance
(C) Internal Sales
Promotion
– Free
Samples
(D) None of the above
29. Statement (A) : “The Electronic
Media has a strong impact on
consumers’ behaviour in
India.”
Reason (R) : “Most of the Indian
consumers take their decision
with the help of Electronic
Media.”
(A) Statement (A) is correct, but
Reason (R) is false.
(B) Reason (R) is correct, but
Statement (A) is false.
(C) Both Statement (A) and
Reason (R) are false.
(D) Both Statement (A) and
Reason (R) are correct.
30. Road blocking advertisement is
(A) Advertising a product by
blocking a road.
(B) Putting an advertisement on a
blocked road.
(C) A technique of gathering
potential customers on the
road.
(D) Advertising a product on all
similar TV/Radio channels at
the same time.

31. Read the following statements :
(i) “Working Capital is the
amount of funds necessary to
cover the cost of operating the
enterprise.”
(ii) “Circulating capital means
current assets of a company
that are changed in the
ordinary course of business
from one form to another.”
(A) (i) and (ii) both are correct.
(B) (i) and (ii) both are false.
(C) (i) is correct, but (ii) is false.
(D) (i) is false, but (ii) is correct.
32. Examine the following statements :
(i) Pay Back Period method
measures the true profitability
of a project.
(ii) Capital Rationing and Capital
Budgeting mean the same
thing.
(iii) Internal Rate of Return and
Time Adjusted Rate of Return
are the same thing.
(iv) Rate of Return Method takes
into account the time value of
money.
(A) (i), (ii) and (iii) are correct.
(B) (ii) and (iii) are correct.
(C) Only (iii) is correct.
(D) All (i), (ii), (iii) and (iv) are
false.
33. Which one of the following is
correct ?
(i) A ratio is an arithmetical
relationship of one number to
another number.
(ii) Liquid ratio is also known as
acid test ratio.
(iii) Rule of thumb for current ratio
is 2 : 1.
(iv) Debt equity ratio is the
relationship between outsiders’
fund and shareholders’ fund.
(A) All (i), (ii), (iii) and (iv) are
correct.
(B) Only (i), (ii) and (iii) are
correct.
(C) Only (ii), (iii) and (iv) are
correct.
(D) Only (ii) and (iii) are correct.
34. The basic objective of Financial
Management is
(A) Maximization of profits.
(B) Profit Planning of the
organization.
(C) Maximization of shareholders’
wealth.
(D) Ensuring financial discipline in
the organization.
35. Which of the following term is used
to represent the proportionate
relationship between debt and
equity ?
(A) Cost of Capital
(B) Capital Budgeting
(C) Assets Structure
(D) Capital Structure

36. HRM is amalgam of
(A) Job analysis, recruitment and
selection.
(B) Social behaviour and business
ethics.
(C) Organizational behaviour,
personnel management and
industrial relation.
(D) Employer and employees.
37. Recruitment is concerned with the
process of
(A) Selection of right candidate.
(B) Developing a pool of potential
employees.
(C) Inviting applications for jobs.
(D) None of the above.
38. The mechanism to identify
employees growth potentials is done
through
(A) Job enrichment
(B) Job evaluation
(C) Job assessment centre
(D) Position description
39. An interview conducted at the time
of an employee leaving the
organization is called
(A) Exit interview
(B) Feedback interview
(C) Convincing interview
(D) Directed interview
40. Statement (A) : A Manager delegates
authority.
Reason (R) : The Manager wants
to shirk his responsibility.
(A) Both Statement (A) and
Reason (R) are correct.
(B) Both Statement (A) and
Reason (R) are false.
(C) Statement (A) is correct, but
Reason (R) is false.
(D) Statement (A) is false, but
Reason (R) is correct.
41. Match the following :
(a) Unit Trust of India (i) 1921
(b) Banking
Regulation Act
(ii) 1949
(c) Imperial Bank of
India
(iii) 1964
(d) NABARD (iv) 1982
(a) (b) (c) (d)
(A) (i) (iii) (ii) (iv)
(B) (iv) (i) (ii) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iii) (ii) (i) (iv)
42. Capital Adequacy Norms declared in
the year, 1996, is applicable to
(A) Foreign Banks
(B) Co-operative Banks
(C) Private Sector Banks
(D) Nationalized Bank
43. Which one of the following is used
for International Money Transfer ?
(A) RTGS
(B) NEFT
(C) SWIFT
(D) None of the above

44. In order to control credit and
investment, the Central Bank of a
country should
(A) Sell securities in the open
market and hike the Cash
Reserve Ratio.
(B) Buy securities from the open
market and lower the Cash
Reserve Ratio.
(C) Buy securities from the open
market and hike the Cash
Reserve Ratio.
(D) Sell securities in the open
market and lower the Cash
Reserve Ratio.
45. India has been witnessing high rate
of inflation because
(A) Public expenditure and money
supply both are continuously
increasing.
(B) The agricultural and industrial
sectors have not performed
adequately.
(C) Both agricultural and
administered prices have been
hiked.
(D) All of the above.
46. In India ________ has a predominant
share in the debt market.
(A) Government Securities
(B) Corporate Deposits
(C) Corporate Equities
(D) Global Depository Receipts
47. Which type of elasticity plays a
crucial role in determining
international trade ?
(A) Elasticity of demand
(B) Price elasticity of demand
(C) Income elasticity of demand
(D) Cross elasticity of demand
48. DFEC stands for
(A) Direct Foreign Exchange
Control
(B) Direct Finance Exchange
Control
(C) Duty Free Export Credit
(D) Duty Free Exchange Credit
49. Suppose a Canadian firm imports
bananas of $ 1000 and sells them for
$ 2000. The effect on GDP would be
(A) The GDP will decrease by $
3000
(B) The GDP will increase by $
3000
(C) The GDP will increase by $
2000
(D) The GDP will increase by $
1000
50. In independent India, the first major
foreign exchange crisis occurred in
the year _______.
(A) 1955
(B) 1956
(C) 1969
(D) 1991

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