UGC NET Management June 2019 Question PaperPaper 1 & Paper 2 with Answer Key
The complete UGC NET June 2019 question paper for Management, covering Paper 1 (General Aptitude) and Paper 2 (Management). Every question below is shown with its options and the correct answer, and a detailed explanation you can unlock by signing in. All 150 questions are free to practise.
UGC NET June 2019 at a glance
Exam
UGC NET June 2019
Papers
Paper 1 (General Aptitude) and Paper 2 (Management)
50 questions with the answer key and explanations.
Question 1
When the learning outcomes of students are ensured with employment of less resources and effort on the part of a teacher and more initiative for self-learning is evident, which of the following expression will describe the teacher most appropriately?
ATeacher is successful
BTeacher is effective
CTeacher is intelligent
DTeacher is practical
Answer:(B) Teacher is effective
Explanation
Teacher effectiveness in pedagogy is measured by the extent to which desired learning outcomes are attained with optimal resource expenditure and high learner autonomy.
A. Teacher is successful — broad descriptor that does not specifically reflect pedagogical efficacy or resource economy.
B. Teacher is effective — correct. Captures the ability to foster independent self-learning while achieving high learning outcomes with minimized effort and resource expenditure.
C. Teacher is intelligent — refers to personal cognitive capacity rather than instructional capability.
D. Teacher is practical — denotes a pragmatic disposition rather than demonstrated instructional effectiveness.
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Question 2
A hypothesis should be conceptually:
Aconvoluted, complex and generic
Bcomplex, tough and general
Csimple, clear and specific
Dobscure, complicated and simple
Answer:(C) simple, clear and specific
Explanation
A research hypothesis must be conceptually clear, simple, and specific so that it can be tested empirically.
A. convoluted, complex and generic — incorrect because ambiguity and broad generalizations prevent precise empirical testing.
B. complex, tough and general — incorrect because conceptual vagueness hampers variable operationalization.
C. simple, clear and specific — correct. Scientific methodology requires a hypothesis to formulate a clear, focused, and testable relationship between defined variables.
D. obscure, complicated and simple — contradictory and conceptually flawed.
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Question 3
Peer group interaction in a classroom helps in:
AConcept understanding
BRealization of one's misunderstanding
CRapport Building
DQuestioning
Answer:(A) Concept understanding
Explanation
Peer group interaction facilitates collaborative knowledge construction, enabling learners to clarify doubts and deepen their conceptual understanding.
A. Concept understanding — correct. Peer discussions provide opportunities to explain concepts, evaluate alternative viewpoints, and consolidate cognitive structures.
B. Realization of one's misunderstanding — a beneficial intermediate diagnostic step during discussion rather than the primary instructional outcome.
C. Rapport Building — an affective social benefit rather than the core cognitive objective of classroom learning.
D. Questioning — an inquiry skill used during interaction rather than the ultimate learning goal.
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Question 4
Mailed questionnaire, observation, interview and collective questionnaire are instances of:
ASecondary sources
BPersonal sources
CPrimary sources
DTertiary sources
Answer:(C) Primary sources
Explanation
Primary sources involve the direct collection of first-hand empirical data from original subjects or field observations.
A. Secondary sources — involve second-hand data previously gathered, processed, and published by other researchers.
B. Personal sources — refers to personal documents like diaries or letters rather than systematic data collection techniques.
C. Primary sources — correct. Questionnaires, direct observations, and structured interviews gather fresh, original data directly from respondents.
D. Tertiary sources — compendia or indexes like encyclopedias and bibliographies that organize primary and secondary materials.
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Question 5
The study of 'why does stressful living result in heart attack'? can be classified as:
ADescriptive research
BExplanatory research
CCorrelational research
DFeasibility research
Answer:(B) Explanatory research
Explanation
Explanatory research specifically investigates causal mechanisms to answer 'why' and 'how' an observed phenomenon occurs.
A. Descriptive research — focuses on answering 'what is' by describing characteristics without explaining underlying causality.
B. Explanatory research — correct. A research question asking why stress leads to heart attacks seeks to identify the cause-and-effect biological and behavioural mechanisms.
C. Correlational research — measures the statistical relationship between two variables without establishing causal direction.
D. Feasibility research — evaluates whether a proposed project or trial is viable before major resources are committed.
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Question 6
Listening is important for a teacher to:
Aaddress the requirement of the learner.
Bgain knowledge.
Ckeep the learner in good humour.
Devaluate the learner for the progress made.
Answer:(A) address the requirement of the learner.
Explanation
Attentive listening allows a teacher to diagnose learner difficulties, understand emotional needs, and adapt pedagogical strategies to meet learner requirements.
A. address the requirement of the learner. — correct. Effective two-way classroom communication requires the teacher to actively listen and respond to student inquiries and learning gaps.
B. gain knowledge. — incidental personal benefit rather than the core pedagogical purpose of teacher listening in class.
C. keep the learner in good humour. — entertainment or mood management rather than instructional communication.
D. evaluate the learner for the progress made. — evaluation uses systematic assessment tools rather than everyday listening.
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Question 7
Inclusive education implies:
AEnsuring learning outcome of every child to be the same.
BIncluding the disabled in the main stream
CProvides compulsory education for children below 14 years
DEnsuring that no child is left behind in education
Answer:(D) Ensuring that no child is left behind in education
Explanation
Inclusive education ensures that all children, regardless of physical, intellectual, social, linguistic, or cultural backgrounds, receive equitable access and support in a common learning system.
A. Ensuring learning outcome of every child to be the same. — incorrect because inclusion respects diverse abilities and individual learning paces rather than enforcing identical outcomes.
B. Including the disabled in the main stream — represents integration, which is only one specific component of the broader inclusive philosophy.
C. Provides compulsory education for children below 14 years — describes the legal mandate of the Right to Education Act rather than the pedagogical definition of inclusion.
D. Ensuring that no child is left behind in education — correct. Captures the universal tenet of inclusive education, which guarantees that every learner is retained and supported without marginalization.
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Question 8
During research, while recording observation if an observer rates an individual based on the rating given in another aspect of the interaction, this is termed as the:
AEvaluation effect
BError of central tendency
CHalo effect
DCategorical effect
Answer:(C) Halo effect
Explanation
The halo effect occurs when an observer's overall impression or rating on one dimension biases ratings across other unrelated characteristics.
A. Evaluation effect — generic phrase that does not denote a formal psychological rating bias.
B. Error of central tendency — tendency of raters to avoid extreme scale ends and cluster all scores around the midpoint.
C. Halo effect — correct. Occurs when a favorable or unfavorable evaluation in one aspect spills over to influence evaluations in other distinct areas.
D. Categorical effect — sorting data into groups rather than an observational rating distortion.
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Question 9
The formulation of a research problem can be compared to:
ALaying the foundation of a building.
BBuilding the walls of a home.
CPolishing the doors of a building.
DConstructing the ceiling of a house.
Answer:(A) Laying the foundation of a building.
Explanation
Formulating a research problem establishes the baseline rationale, scope, and direction upon which the entire research structure depends.
A. Laying the foundation of a building. — correct. A sound problem formulation provides the essential bedrock for developing methodology, collecting data, and deriving valid conclusions.
B. Building the walls of a home. — analogous to executing the literature review and data collection framework rather than initial problem formulation.
C. Polishing the doors of a building. — analogous to final report formatting and editing.
D. Constructing the ceiling of a house. — analogous to formulating final research conclusions.
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Question 10
Reflective Practice implies use of one's:
ACognition
BMetacognition
CMetacognition on cognition
DReinforcement of learning
Answer:(B) Metacognition
Explanation
Reflective practice in teaching requires self-monitoring and critical appraisal of one's own thought processes and pedagogical actions, which is the definition of metacognition.
A. Cognition — refers to direct mental processes like knowing, perceiving, and remembering rather than higher-order reflection on those processes.
B. Metacognition — correct. Defined as thinking about one's own thinking, which underpins the self-awareness central to reflective practice.
C. Metacognition on cognition — redundant formulation that is not the standard psychological term used in teacher education.
D. Reinforcement of learning — behavioural conditioning principle rather than introspective professional reflection.
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Question 11
The resource requirements of a business need careful handling at which stage?
A business will usually go through a clear set of stages that will make up its organisational life cycle. These stages include introduction, early growth, continuous growth, maturity and decline. The first stage, the introduction state, is the start-up phase where a business decides what its core strengths and capabilities are and starts selling its product or service. At this early stage, the founder or founders will be a part of every aspect of the daily process of the business. The main goal at this stage is to take off to a good start and make a place in the market.
The next stage, the early growth phase, aims at increased sales and more development. The focus at this stage remains on the original product or service but the effort is to increase the market share and venture into related products or services. The main goal is to move the founder to a more managerial role so more time is spent on managing and building the business. At this stage, documents and policies need to be developed so any member of the organisation can see the business any time.
The third stage, the continuous growth stage, requires a systematic structure and more formal relationships among its participants. At this stage, the resource requirements of the business need careful handling. The focus is on the expansion of the business, keeping in mind its core strength and capability. A formal organisational structure and a clear delegation plan are important at this stage.
At the fourth stage of maturity, a business often slows down as the level of innovative energy may have become weak and the formal structures may have become obstacles. A lot of care is required to prevent decline.
AFourth
BFirst
CThird
DSecond
Answer:(C) Third
Explanation
The passage explicitly identifies resource management requirements during the continuous growth phase.
From the third paragraph of the passage:
'The third stage, the continuous growth stage, requires a systematic structure and more formal relationships among its participants. At this stage, the resource requirements of the business need careful handling.'
A. Fourth — refers to the maturity stage where innovative energy weakens.
B. First — refers to the introduction stage focused on core capabilities and initial market entry.
C. Third — correct. Corresponds directly to the continuous growth stage highlighted in the text.
D. Second — refers to the early growth phase focused on expanding market share.
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Question 12
Venturing into related products and services does not mean that a business will:
A business will usually go through a clear set of stages that will make up its organisational life cycle. These stages include introduction, early growth, continuous growth, maturity and decline. The first stage, the introduction state, is the start-up phase where a business decides what its core strengths and capabilities are and starts selling its product or service. At this early stage, the founder or founders will be a part of every aspect of the daily process of the business. The main goal at this stage is to take off to a good start and make a place in the market.
The next stage, the early growth phase, aims at increased sales and more development. The focus at this stage remains on the original product or service but the effort is to increase the market share and venture into related products or services. The main goal is to move the founder to a more managerial role so more time is spent on managing and building the business. At this stage, documents and policies need to be developed so any member of the organisation can see the business any time.
The third stage, the continuous growth stage, requires a systematic structure and more formal relationships among its participants. At this stage, the resource requirements of the business need careful handling. The focus is on the expansion of the business, keeping in mind its core strength and capability. A formal organisational structure and a clear delegation plan are important at this stage.
At the fourth stage of maturity, a business often slows down as the level of innovative energy may have become weak and the formal structures may have become obstacles. A lot of care is required to prevent decline.
Aignore the original product
Bmove the founder to a more managerial role
Cdelegate more responsibilities
Dignore the related products and services
Answer:(A) ignore the original product
Explanation
The passage notes that early growth entails diversification while sustaining focus on the foundational offering.
From the second paragraph of the passage:
'The focus at this stage remains on the original product or service but the effort is to increase the market share and venture into related products or services.'
A. ignore the original product — correct. Because the primary product remains the central focus, diversification does not mean abandoning or ignoring it.
B. move the founder to a more managerial role — stated as a primary goal during early growth.
C. delegate more responsibilities — aligns with moving the founder to management.
D. ignore the related products and services — contradictory since the business actively ventures into them.
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Question 13
The founder of a business does not move to a more managerial role at which stage?
A business will usually go through a clear set of stages that will make up its organisational life cycle. These stages include introduction, early growth, continuous growth, maturity and decline. The first stage, the introduction state, is the start-up phase where a business decides what its core strengths and capabilities are and starts selling its product or service. At this early stage, the founder or founders will be a part of every aspect of the daily process of the business. The main goal at this stage is to take off to a good start and make a place in the market.
The next stage, the early growth phase, aims at increased sales and more development. The focus at this stage remains on the original product or service but the effort is to increase the market share and venture into related products or services. The main goal is to move the founder to a more managerial role so more time is spent on managing and building the business. At this stage, documents and policies need to be developed so any member of the organisation can see the business any time.
The third stage, the continuous growth stage, requires a systematic structure and more formal relationships among its participants. At this stage, the resource requirements of the business need careful handling. The focus is on the expansion of the business, keeping in mind its core strength and capability. A formal organisational structure and a clear delegation plan are important at this stage.
At the fourth stage of maturity, a business often slows down as the level of innovative energy may have become weak and the formal structures may have become obstacles. A lot of care is required to prevent decline.
AEarly growth stage
BMaturity stage
CDecline stage
DStart up stage
Answer:(D) Start up stage
Explanation
In the initial start-up phase, founders participate directly in day-to-day operations rather than delegating from a managerial position.
From the first paragraph of the passage:
'At this early stage, the founder or founders will be a part of every aspect of the daily process of the business.'
Transitioning to a managerial role occurs in the subsequent early growth phase:
'The main goal is to move the founder to a more managerial role so more time is spent on managing and building the business.'
A. Early growth stage — the stage where moving to a managerial role is the main goal.
B. Maturity stage — formal structures are already established.
C. Decline stage — occurs after maturity if innovation fails.
D. Start up stage — correct. Founders remain immersed in daily operational tasks and have not yet transitioned to an exclusively managerial role.
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Question 14
The slowing down of a business can happen if:
A business will usually go through a clear set of stages that will make up its organisational life cycle. These stages include introduction, early growth, continuous growth, maturity and decline. The first stage, the introduction state, is the start-up phase where a business decides what its core strengths and capabilities are and starts selling its product or service. At this early stage, the founder or founders will be a part of every aspect of the daily process of the business. The main goal at this stage is to take off to a good start and make a place in the market.
The next stage, the early growth phase, aims at increased sales and more development. The focus at this stage remains on the original product or service but the effort is to increase the market share and venture into related products or services. The main goal is to move the founder to a more managerial role so more time is spent on managing and building the business. At this stage, documents and policies need to be developed so any member of the organisation can see the business any time.
The third stage, the continuous growth stage, requires a systematic structure and more formal relationships among its participants. At this stage, the resource requirements of the business need careful handling. The focus is on the expansion of the business, keeping in mind its core strength and capability. A formal organisational structure and a clear delegation plan are important at this stage.
At the fourth stage of maturity, a business often slows down as the level of innovative energy may have become weak and the formal structures may have become obstacles. A lot of care is required to prevent decline.
Athere is a decline in the market share
Bthe level of innovative energy weakens
Cthe managerial roles are not clear
Dthe level of investment declines
Answer:(B) the level of innovative energy weakens
Explanation
The passage directly links organizational stagnation during the maturity stage to depleted innovation.
From the fourth paragraph of the passage:
'At the fourth stage of maturity, a business often slows down as the level of innovative energy may have become weak and the formal structures may have become obstacles.'
A. there is a decline in the market share — potential symptom or outcome rather than the stated cause of stagnation.
B. the level of innovative energy weakens — correct. Directly matches the stated cause of business slowdown in the text.
C. the managerial roles are not clear — organizational structures are described as overly formal obstacles rather than unclear.
D. the level of investment declines — not mentioned in the passage as the reason for slowing down.
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Question 15
When will a business create its place in the market?
A business will usually go through a clear set of stages that will make up its organisational life cycle. These stages include introduction, early growth, continuous growth, maturity and decline. The first stage, the introduction state, is the start-up phase where a business decides what its core strengths and capabilities are and starts selling its product or service. At this early stage, the founder or founders will be a part of every aspect of the daily process of the business. The main goal at this stage is to take off to a good start and make a place in the market.
The next stage, the early growth phase, aims at increased sales and more development. The focus at this stage remains on the original product or service but the effort is to increase the market share and venture into related products or services. The main goal is to move the founder to a more managerial role so more time is spent on managing and building the business. At this stage, documents and policies need to be developed so any member of the organisation can see the business any time.
The third stage, the continuous growth stage, requires a systematic structure and more formal relationships among its participants. At this stage, the resource requirements of the business need careful handling. The focus is on the expansion of the business, keeping in mind its core strength and capability. A formal organisational structure and a clear delegation plan are important at this stage.
At the fourth stage of maturity, a business often slows down as the level of innovative energy may have become weak and the formal structures may have become obstacles. A lot of care is required to prevent decline.
AAt maturity
BAt introduction
CAt early growth
DAt late growth
Answer:(B) At introduction
Explanation
Establishing market entry and visibility is the explicit milestone of the initial stage.
From the first paragraph of the passage:
'The first stage, the introduction state, is the start-up phase where a business decides what its core strengths and capabilities are and starts selling its product or service... The main goal at this stage is to take off to a good start and make a place in the market.'
A. At maturity — business focus is on maintaining position and preventing decline.
B. At introduction — correct. Making a place in the market is explicitly identified as the main goal of the introduction phase.
C. At early growth — focus shifts to increasing market share and venturing into related products.
D. At late growth — focus is on formal delegation and resource expansion.
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Question 16
Which of the following is a characteristic of modern mass media?
ACapital intensive
BLabour intensive
CSustainable
DDevelopmental
Answer:(A) Capital intensive
Explanation
Modern mass media relies heavily on sophisticated transmission networks, satellite communication, digital printing, and advanced broadcast equipment, making it capital intensive.
A. Capital intensive — correct. Launching and maintaining mass media infrastructure requires massive capital investments in technology, distribution systems, and licensing.
B. Labour intensive — digital automation and studio technologies reduce human labour ratios relative to massive capital costs.
C. Sustainable — media operations consume substantial electronic energy and equipment resources without being inherently sustainable by definition.
D. Developmental — describes developmental communication objectives in public policy rather than a defining structural characteristic of commercial mass media.
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Question 17
Which of the following signifies non-verbal communication in an essential way?
AInstructions written on a question paper.
BLearner attending an online class.
CThe dress code followed by an individual.
DYoga instructor teaching yoga poses to the pupils.
Answer:(C) The dress code followed by an individual.
Explanation
In communication theory, an individual's dress code and personal attire constitute artifactual non-verbal communication that transmits social, cultural, and professional messages without words.
A. Instructions written on a question paper. — verbal communication delivered through written text.
B. Learner attending an online class. — predominantly involves verbal auditory and textual exchanges.
C. The dress code followed by an individual. — correct. Clothing choices, formal uniforms, and personal accessories serve as continuous non-verbal cues signaling role, status, and conformity.
D. Yoga instructor teaching yoga poses to the pupils. — pedagogical instruction primarily guided by spoken verbal directions and physical demonstration.
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Question 18
Which of the following is a stage of intrapersonal communication?
APhatic stage
BIntimate stage
CPersonal stage
DTranscendental communication
Answer:(D) Transcendental communication
Explanation
Intrapersonal communication refers to communication that takes place within an individual, including self-reflection, meditation, and spiritual contemplation.
A. Phatic stage — social greeting stage in interpersonal communication aimed at establishing casual contact.
B. Intimate stage — level of close interpersonal interaction between trusted individuals.
C. Personal stage — intermediate level of interpersonal communication within personal space boundaries.
D. Transcendental communication — correct. Represents a reflective, meditative dimension of intrapersonal communication where consciousness engages in higher-order inner dialogue or spiritual contemplation.
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Question 19
Consider the following statements:
No Musicians are Japanese.
All Barbers are Musicians.
Conclusion:
No Barbers are Japanese.
Identify the Middle Term in the above syllogism.
ASubject in the first premise and predicate in the second premise.
BPredicate in the first premise and subject in the second premise.
CPredicate in the both premises.
DSubject in both the premises.
Answer:(A) Subject in the first premise and predicate in the second premise.
Explanation
In a categorical syllogism, the middle term is the term that appears in both premises but is absent from the conclusion.
Premise 1: No Musicians are Japanese.
Premise 2: All Barbers are Musicians.
Conclusion: No Barbers are Japanese.
The middle term is 'Musicians':
In Premise 1 ('No Musicians are Japanese'), 'Musicians' is the subject.
In Premise 2 ('All Barbers are Musicians'), 'Musicians' is the predicate.
A. Subject in the first premise and predicate in the second premise. — correct. Accurately identifies the structural position of 'Musicians' in both premises.
B. Predicate in the first premise and subject in the second premise. — inverts the premise positions.
C. Predicate in the both premises. — 'Musicians' is the subject of the first premise.
D. Subject in both the premises. — 'Musicians' is the predicate of the second premise.
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Question 20
Consider the example given below:
Devadatta is growing fat.
He does not eat food during the day.
Therefore, He must be eating food during the night, other things being equal.
Identify the logic involved in the example provided above by choosing the correct answer from options given below:
AArthapatti
BAnupalabdi
CAnumana
DSabda
Answer:(A) Arthapatti
Explanation
In Indian philosophy, postulating an unobserved fact to reconcile an apparent contradiction between two observed facts is known as Arthapatti (presumption or postulation).
Devadatta's daytime fasting and increasing weight present an apparent contradiction that is resolved by presuming night-time eating.
A. Arthapatti — correct. The classic example in Mimamsa and Advaita Vedanta demonstrating presumption to resolve an apparent empirical conflict.
B. Anupalabdi — non-apprehension or non-perception used to perceive non-existence.
C. Anumana — logical inference grounded in universal concomitance (vyapti).
D. Sabda — verbal testimony received from a trustworthy source (apta).
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Question 21
Consider the argument provided below:
'Sound is permanent because it is a product like the jar'.
Identify the fallacy involved in the above argument on the basis of Indian logic from the options given below:
AFallacy of contradictory reason
BFallacy of wrong assertion
CFallacy of irrelevant reason
DFallacy of trivial reason
Answer:(A) Fallacy of contradictory reason
Explanation
In Nyaya logic, when the reason (hetu) proves the exact opposite of what it was supposed to establish, it commits the fallacy of the contradictory middle (Viruddha).
Probandum (Sadhya): Sound is permanent.
Reason (Hetu): Because it is produced (a product).
Being produced is pervaded by impermanence rather than permanence, so the hetu disproves the thesis.
A. Fallacy of contradictory reason — correct. Translates the Viruddha fallacy, where the hetu directly contradicts the sadhya.
B. Fallacy of wrong assertion — not a standard category in the classical Nyaya classification of hetvabhasa.
C. Fallacy of irrelevant reason — corresponds to Asiddha (unproven middle) rather than a reason proving the contradictory.
D. Fallacy of trivial reason — not a recognized formal fallacy in classical Indian epistemology.
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Question 22
If RED is coded as 6720, then how would GREEN be coded?
A16717209
B1677209
C9207716
D1677199
Answer:(B) 1677209
Explanation
The coding rule takes the alphabetical position of each letter, adds 2 to it, and writes the resulting numbers in reverse letter order.
Alphabet positions for RED:
R = 18, E = 5, D = 4
Adding 2 to each:
R: 18 + 2 = 20
E: 5 + 2 = 7
D: 4 + 2 = 6
Reversing letter order (D, E, R):
6, 7, 20 = 6720
Alphabet positions for GREEN:
G = 7, R = 18, E = 5, E = 5, N = 14
Adding 2 to each:
G: 7 + 2 = 9
R: 18 + 2 = 20
E: 5 + 2 = 7
E: 5 + 2 = 7
N: 14 + 2 = 16
Reversing letter order (N, E, E, R, G):
16, 7, 7, 20, 9 = 1677209
A. 16717209 — adds an erroneous digit 1.
B. 1677209 — correct. Matches the reversed code 16-7-7-20-9.
C. 9207716 — leaves the numbers in forward order (G, R, E, E, N) without reversing.
D. 1677199 — computes incorrect values for the final letters.
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Question 23
Inductive argument proceeds from:
AUniversal to Particular
BParticular to Universal
CUniversal to Universal
DParticular to Particular
Answer:(B) Particular to Universal
Explanation
Inductive reasoning begins with observations of specific individual cases and moves toward general principles or universal laws.
A. Universal to Particular — defines deductive reasoning, where a general premise is applied to a specific instance.
B. Particular to Universal — correct. Induction gathers data from particular empirical instances to formulate a broad universal generalization.
C. Universal to Universal — describes deductive formal equivalences rather than empirical induction.
D. Particular to Particular — describes analogical reasoning rather than inductive generalization.
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Question 24
Semantic barrier of communication is implied when the:
Asignal is lost before reaching the receiver.
Bmessage transmitted by the source is unclear.
Creceiver's attention is diverted.
Dreceiver does not understand the meaning of the message.
Answer:(D) receiver does not understand the meaning of the message.
Explanation
Semantic barriers arise from misunderstandings related to words, symbols, linguistic jargon, or divergent interpretations of meaning.
A. signal is lost before reaching the receiver. — a physical or technical transmission barrier.
B. message transmitted by the source is unclear. — encoding or transmitter ambiguity.
C. receiver's attention is diverted. — a psychological or attentional barrier.
D. receiver does not understand the meaning of the message. — correct. Semantics concerns meaning, so failing to decode the intended meaning of words or symbols constitutes a semantic barrier.
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Question 25
A trader mixes three varieties of refined oil costing Rs. 100, Rs. 40 and Rs. 60 per litre in the ratio 2:4:3 in terms of litre, and sells the mixture at Rs. 66 per litre. What percentage of profit does he make?
A12%
B10%
C9%
D8%
Answer:(B) 10%
Explanation
Calculate total cost price from the ratio weights, find the cost price per litre, and determine the profit percentage.
Let the quantities mixed be 2 L, 4 L, and 3 L:
Total volume = 2 + 4 + 3 = 9 L
Total Cost Price = (2 × 100) + (4 × 40) + (3 × 60)
Total Cost Price = 200 + 160 + 180 = Rs. 540
Cost Price per litre = 540 / 9 = Rs. 60
B. 10% — correct. Profit of Rs. 6 on a Rs. 60 base yields exactly 10%.
C. 9% — incorrect profit percentage.
D. 8% — underestimates the margin.
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Question 26
Among the five friends, Vineet is taller than Monika, but not as tall as Ram. Jacob is taller than Dalip but shorter than Monika. Who is the tallest in their group?
ARam
BMonika
CVineet
DJacob
Answer:(A) Ram
Explanation
Trace the relative height rankings from the two comparison statements.
From the first statement:
Ram > Vineet > Monika
From the second statement:
Monika > Jacob > Dalip
Combining both sequences:
Ram > Vineet > Monika > Jacob > Dalip
A. Ram — correct. Sits at the top of the combined ordering and is the tallest.
B. Monika — shorter than Ram and Vineet.
C. Vineet — taller than Monika but shorter than Ram.
D. Jacob — shorter than Monika, Vineet, and Ram.
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Question 27
Assertion (A): Communication presupposes a shared, symbolic environment, a social relationship even among non-participants.
Reason (R): It leads to social interaction, which in combination with other factors contributes to a sense of community.
Choose the correct option from the following:
ABoth A and R are true and R is the correct explanation of A.
BBoth A and R are true but R is not the correct explanation of A.
CA is true but R is false.
DA is false but R is true.
Answer:(A) Both A and R are true and R is the correct explanation of A.
Explanation
Communication operates within shared cultural codes and social frameworks that connect members of a society.
Assertion (A) is true because all symbolic communication relies on mutually recognized cultural meanings and latent social relationships, even among individuals not directly in dialogue.
Reason (R) is true because shared communication channels generate ongoing social interaction, fostering collective cohesion and community identity.
Reason (R) correctly explains Assertion (A) by demonstrating how communication creates and sustains the shared social fabric that it simultaneously presupposes.
A. Both A and R are true and R is the correct explanation of A. — correct. Accurately identifies both propositions as true and recognizes the explanatory link.
B. Both A and R are true but R is not the correct explanation of A. — incorrect because social interaction and community formation explain why a shared symbolic environment is presupposed.
C. A is true but R is false. — Reason (R) is demonstrably true in sociological theory.
D. A is false but R is true. — Assertion (A) is a foundational principle of communication theory.
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Question 28
A man travelled from the village to the railway station at the rate of 20 Kmph and walked back at the rate of 5 kmph. If the whole journey took 5 hours, find the distance of the railway station from the village.
A10 km
B15 km
C20 km
D40 km
Answer:(C) 20 km
Explanation
Set up a linear equation for total travel time in terms of the one-way distance.
Let the one-way distance between the village and the station be d km.
Time taken to travel to the station = d / 20 hours
Time taken to walk back = d / 5 hours
Total time = (d / 20) + (d / 5) = 5 hours
Combine the fractions:
(d + 4d) / 20 = 5
5d / 20 = 5
d / 4 = 5
d = 20 km
A. 10 km — results in only 2.5 hours total journey time.
B. 15 km — results in 3.75 hours total journey time.
C. 20 km — correct. Outward trip takes 1 hour (20 / 20) and return trip takes 4 hours (20 / 5), totaling exactly 5 hours.
D. 40 km — results in 10 hours total journey time.
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Question 29
If 0.75 x = 0.02 y, then the value of (y - x) / (y + x) is:
A73/75
B75/77
C73/77
D730/75
Answer:(C) 73/77
Explanation
Express the ratio of y to x in integer form and substitute it into the required expression.
B. 75/77 — computes y / (y + x) rather than (y - x) / (y + x).
C. 73/77 — correct. Yields 73 in the numerator and 77 in the denominator.
D. 730/75 — arithmetic error from misplacing decimal points.
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Question 30
If the average of five numbers is (-20) and the sum of three of the numbers is 32, then what is the average of the other two numbers?
A(- 66)
B(- 33)
C(- 34)
D(- 132)
Answer:(A) (- 66)
Explanation
Compute the total sum of the five numbers, subtract the given sum of the three numbers, and divide the remainder by 2.
Total sum of five numbers = 5 × (-20) = -100
Sum of three numbers = 32
Sum of remaining two numbers = -100 - 32 = -132
Average of remaining two numbers = -132 / 2 = -66
A. (- 66) — correct. Dividing the remaining sum of -132 by 2 gives -66.
B. (- 33) — result of dividing -66 by 2.
C. (- 34) — arithmetic error from incorrect subtraction.
D. (- 132) — the total sum of the two numbers rather than their average.
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Question 31
Based on the table, what was the approximate percentage increase in production of fertilizers in 2018 compared to that in 2011?
The following table shows the production of fertilizers by a company (in 10000 tonnes) from 2011 to 2018:
Year
2011
2012
2013
2014
2015
2016
2017
2018
Production of Fertilizers
35
50
70
55
75
60
85
90
A157%
B165%
C177%
D182%
Answer:(A) 157%
Explanation
Calculate the absolute increase from 2011 to 2018 and divide by the 2011 base production.
Production in 2011 = 35 (in 10000 tonnes)
Production in 2018 = 90 (in 10000 tonnes)
Absolute increase = 90 - 35 = 55
Percentage increase = (55 / 35) × 100
= (11 / 7) × 100 ≈ 157.14%
A. 157% — correct. Approximates 157.14%.
B. 165% — overestimates the percentage increase.
C. 177% — incorrect percentage.
D. 182% — overestimates the increase.
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Question 32
Based on the table, in how many of the given years was the production of fertilizers more than the average production of the given years?
The following table shows the production of fertilizers by a company (in 10000 tonnes) from 2011 to 2018:
Year
2011
2012
2013
2014
2015
2016
2017
2018
Production of Fertilizers
35
50
70
55
75
60
85
90
A2
B3
C4
D5
Answer:(C) 4
Explanation
Compute the mean production across all eight years and count how many annual values exceed that mean.
Total production = 35 + 50 + 70 + 55 + 75 + 60 + 85 + 90 = 520 (in 10000 tonnes)
Average annual production = 520 / 8 = 65
Comparing each year against the average of 65:
2011: 35 (< 65)
2012: 50 (< 65)
2013: 70 (> 65) — Exceeds
2014: 55 (< 65)
2015: 75 (> 65) — Exceeds
2016: 60 (< 65)
2017: 85 (> 65) — Exceeds
2018: 90 (> 65) — Exceeds
Production exceeded the average in exactly 4 years (2013, 2015, 2017, and 2018).
A. 2 — undercounts the qualifying years.
B. 3 — misses one qualifying year.
C. 4 — correct. Exactly 4 years recorded production above 65.
D. 5 — overcounts by including a year below the average.
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Question 33
Based on the table, the average production of 2012 and 2013 was exactly equal to the average production of which of the following pairs of years?
The following table shows the production of fertilizers by a company (in 10000 tonnes) from 2011 to 2018:
Year
2011
2012
2013
2014
2015
2016
2017
2018
Production of Fertilizers
35
50
70
55
75
60
85
90
A2011 and 2012
B2011 and 2017
C2012 and 2014
D2015 and 2016
Answer:(B) 2011 and 2017
Explanation
Equal averages for two-year pairs require their two-year production sums to be identical.
Production in 2012 = 50
Production in 2013 = 70
Sum for 2012 and 2013 = 50 + 70 = 120
Average for 2012 and 2013 = 120 / 2 = 60
Testing each option pair:
A. 2011 and 2012: 35 + 50 = 85 (average = 42.5)
B. 2011 and 2017: 35 + 85 = 120 (average = 60) — correct. Exactly matches 60.
C. 2012 and 2014: 50 + 55 = 105 (average = 52.5)
D. 2015 and 2016: 75 + 60 = 135 (average = 67.5)
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Question 34
Based on the table, in which year, the percentage increase in production as compared to the previous year was maximum?
The following table shows the production of fertilizers by a company (in 10000 tonnes) from 2011 to 2018:
Year
2011
2012
2013
2014
2015
2016
2017
2018
Production of Fertilizers
35
50
70
55
75
60
85
90
A2012
B2013
C2015
D2018
Answer:(A) 2012
Explanation
Calculate the year-on-year percentage increase for each option year against its preceding year.
(c) Third Generation matches (iv) Integrated circuit — integrated circuits (ICs) placed dozens to hundreds of transistors onto small silicon chips.
(d) Fourth Generation matches (ii) VLSI microprocessor — Very Large Scale Integration (VLSI) packed thousands to millions of transistors onto a single microprocessor.
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Question 37
A/An _____________ is a computer program that spreads by inserting copies of itself into other executable code or documents.
AOperating system
BComputer Virus
CFirewall
DAnti-virus
Answer:(B) Computer Virus
Explanation
A computer virus is malicious software designed to replicate by attaching or injecting its code into host programs or files.
A. Operating system — foundational system software that manages hardware resources and provides common services for application programs.
B. Computer Virus — correct. Self-replicating malicious program that propagates by inserting copies of its code into executable programs or documents.
C. Firewall — security mechanism that monitors and filters incoming and outgoing network traffic based on predetermined rules.
D. Anti-virus — utility software developed to detect, prevent, and remove malicious software.
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Question 38
The expansion of SANKALP is:
ASanskrit Awareness and Knowledge Acquisition of Language Programme.
BSkills Acquisition and Karatae Awareness for Livelihood Promotion.
CSkills Acquisition and Knowledge Awareness for Livelihood Promotion.
DSanskrit Awareness and Knowledge Acquisition for Livelihood Promotion.
Answer:(C) Skills Acquisition and Knowledge Awareness for Livelihood Promotion.
Explanation
SANKALP is an initiative of the Ministry of Skill Development and Entrepreneurship (MSDE) supported by the World Bank.
Full form:
Skills Acquisition and Knowledge Awareness for Livelihood Promotion
A. Sanskrit Awareness and Knowledge Acquisition of Language Programme. — incorrect acronym expansion.
B. Skills Acquisition and Karatae Awareness for Livelihood Promotion. — contains the spurious word Karatae.
C. Skills Acquisition and Knowledge Awareness for Livelihood Promotion. — correct. The official government title for this skill development program.
D. Sanskrit Awareness and Knowledge Acquisition for Livelihood Promotion. — misidentifies the vocational mandate as Sanskrit language study.
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Question 39
Which of the following is not a/an web browser?
AInternet Explorer
BMozilla Firefox
CGoogle Chrome
DYahoo
Answer:(D) Yahoo
Explanation
A web browser is an application software used to access and display content on the World Wide Web, whereas Yahoo is a search engine and web portal.
A. Internet Explorer — graphical web browser originally developed by Microsoft.
B. Mozilla Firefox — open-source web browser developed by the Mozilla Foundation.
C. Google Chrome — web browser developed and maintained by Google.
D. Yahoo — correct. An online portal, email service, and search provider that is accessed using a web browser rather than being a browser itself.
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Question 40
Which pollutant is the major source of marine pollution?
ASewage
BOil spill
CIndustrial waste water
DNone of the above
Answer:(A) Sewage
Explanation
Land-based municipal wastewater and untreated sewage constitute the largest continuous volume of pollutants discharged into coastal and marine environments.
A. Sewage — correct. Domestic wastewater and municipal sewage discharge immense quantities of pathogens and excess nutrients into oceans daily, representing the primary volumetric source of marine pollution.
B. Oil spill — highly visible and acutely toxic, but accounts for a substantially smaller fraction of total global marine pollution than land-based sewage discharge.
C. Industrial waste water — significant contributor of heavy metals and chemicals, but smaller in total continuous ocean discharge volume compared to municipal sewage.
D. None of the above — incorrect because sewage is the major source.
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Question 41
In Audio and Video compression, the term RGB means:
ARed, Grey, Blue
BRed, Green, Blue
CRed, Green, Black
DRed, Grey, Black
Answer:(B) Red, Green, Blue
Explanation
RGB is an additive color model based on the three primary wavelengths of light used in digital displays, video recording, and computer graphics.
A. Red, Grey, Blue — replaces Green with Grey.
B. Red, Green, Blue — correct. The standard three primary color channels in additive color reproduction.
C. Red, Green, Black — replaces Blue with Black.
D. Red, Grey, Black — replaces both Green and Blue with achromatic shades.
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Question 42
The report of which of the following Education Commissions carries the sub-title 'Education for National Development'?
ARadhakrishnan Commission
BMudaliar Commission
CCalcutta University Education Commission
DKothari Commission
Answer:(D) Kothari Commission
Explanation
The Education Commission (1964-66) chaired by Dr. D. S. Kothari presented its report under the title 'Education and National Development' (commonly referred to as 'Education for National Development').
A. Radhakrishnan Commission — the University Education Commission (1948-49) focused on post-independence university reorganization.
B. Mudaliar Commission — the Secondary Education Commission (1952-53) focused on restructuring secondary schooling.
C. Calcutta University Education Commission — the Sadler Commission (1917-19) examined university education with particular reference to Calcutta University.
D. Kothari Commission — correct. The comprehensive National Education Commission whose landmark report was titled 'Education and National Development'.
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Question 43
One Terabyte (TB) of memory is equal to:
A1024 KB
B1024 × 1024 KB
C1024 × 1024 × 1024 KB
D1024 × 1024 × 1024 Bytes
Answer:(C) 1024 × 1024 × 1024 KB
Explanation
Convert digital memory units stepwise from Terabytes (TB) down to Kilobytes (KB) using binary base-2 multiples of 1024.
C. 1024 × 1024 × 1024 KB — correct. Three factors of 1024 convert TB to GB, GB to MB, and MB to KB.
D. 1024 × 1024 × 1024 Bytes — equal to 1 Gigabyte (GB), which falls short of a Terabyte by another factor of 1024.
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Question 44
Permafrost is defining characteristic of which biome?
ATaiga
BTundra
CGrassland
DDesert
Answer:(B) Tundra
Explanation
Permafrost, a layer of soil that remains frozen continuously for two or more consecutive years, is the defining ecological feature of the tundra biome.
A. Taiga — boreal forest characterized by coniferous trees and seasonal snow cover, but lacking continuous surface permafrost throughout.
B. Tundra — correct. High-latitude treeless biome defined by extreme cold, low biodiversity, short growing seasons, and continuous underlying permafrost.
C. Grassland — dominated by grasses and temperate or tropical climates without permafrost.
D. Desert — arid or hyper-arid biome characterized by scarce precipitation rather than subsoil freezing.
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Question 45
The target set by Indian government for generating power from wind energy by the year 2022 is:
A60 GW
B50 GW
C40 GW
D15 GW
Answer:(A) 60 GW
Explanation
India set a national target of installing 175 GW of renewable energy capacity by 2022 under its climate change commitments.
The 175 GW breakdown comprises:
100 GW from solar energy
60 GW from wind power
10 GW from biomass power
5 GW from small hydropower
A. 60 GW — correct. The specific capacity target allocated to wind energy.
B. 50 GW — not an individual technology target in the 175 GW plan.
C. 40 GW — represented the rooftop solar component within the 100 GW solar target.
D. 15 GW — represents the combined target for biomass (10 GW) and small hydro (5 GW).
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Question 46
The mangroves exist in:
AFresh water system
BTemperate areas
CSemi-arid areas
DSaline waters
Answer:(D) Saline waters
Explanation
Mangroves are halophytic trees and shrubs adapted to survive in saline coastal intertidal zones and brackish waters.
A. Fresh water system — freshwater plants lack the specialized salt-excreting glands and pneumatophores characteristic of mangroves.
B. Temperate areas — mangroves cannot tolerate freezing temperatures and are restricted to tropical and subtropical latitudes.
C. Semi-arid areas — inland arid regions lack the continuous intertidal marine inundation required for mangrove growth.
D. Saline waters — correct. Mangrove forests thrive in saline and brackish estuarine and coastal waters along tropical and subtropical shorelines.
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Question 47
In which year the modern Indian University got established?
A1957
B1857
C1947
D1964
Answer:(B) 1857
Explanation
The first three modern universities in India were founded in 1857 based on the recommendations of Wood's Despatch of 1854.
In 1857, universities were established at:
Calcutta
Bombay
Madras
A. 1957 — established the centennial of the first universities, not their foundation.
B. 1857 — correct. The year the Universities of Calcutta, Bombay, and Madras were incorporated.
C. 1947 — the year of Indian independence.
D. 1964 — the year the Kothari Commission was appointed.
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Question 48
Which of the following statements best explains the concept of sustainable development?
AUse of natural resources minimally.
BUse of natural resources for our benefit.
CUse of natural resources judiciously so that they are available for further generations.
DPreserve our natural resources for our future generation.
Answer:(C) Use of natural resources judiciously so that they are available for further generations.
Explanation
Sustainable development balances present socio-economic needs with environmental preservation so future generations can meet their own needs.
As formulated in the Brundtland Report (Our Common Future, 1987), sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
A. Use of natural resources minimally. — advocates extreme restriction rather than balanced development.
B. Use of natural resources for our benefit. — ignores intergenerational equity and long-term ecological balance.
C. Use of natural resources judiciously so that they are available for further generations. — correct. Combines prudent present resource use with stewardship to ensure availability for future generations.
D. Preserve our natural resources for our future generation. — emphasizes strict preservation without addressing present developmental needs.
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Question 49
Chemical oxygen demand in eutrophic water is:
ALow
BHigh
CMedium
DExtremely low
Answer:(B) High
Explanation
Eutrophication stimulates dense algal blooms, leading to high concentrations of decomposing organic matter that substantially increase Chemical Oxygen Demand (COD).
COD measures the total quantity of oxygen required to chemically oxidize all organic compounds in water:
Low pollution levels correspond to low COD
High organic nutrient loads in eutrophic waters require large amounts of oxidant, resulting in high COD
A. Low — typical of unpolluted oligotrophic waters.
B. High — correct. The intense accumulation of organic biomass in eutrophic waters requires high chemical oxygen demand for oxidation.
C. Medium — characteristic of mesotrophic waters.
D. Extremely low — characteristic of pristine mountain springs or distilled water.
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Question 50
In which era given below, higher education in India got a set back?
ABritish Era
BBuddhist Era
CMughal Era
DPost-Independence Era
Answer:(C) Mughal Era
Explanation
During the medieval Mughal era, the ancient Indian university system declined and lost state patronization.
A. British Era — introduced the Western collegiate university system (Calcutta, Bombay, Madras in 1857) and Wood's Despatch.
B. Buddhist Era — the golden age of ancient Indian residential universities like Nalanda, Vikramashila, and Valabhi.
C. Mughal Era — correct. The institutional university network of ancient India suffered decline and destruction, with state patronage shifting toward maktabs and madrasas rather than integrated universities.
D. Post-Independence Era — saw massive expansion of universities, IITs, UGC establishment, and widespread democratization of higher education.
Exponential distribution comprises which of the following characteristics?
(a) It is discrete distribution
(b) It is a family of distributions
(c) It is skewed to the left
(d) The x values range from zero to infinity
Which one of the following options is most appropriate?
A(a), (b), (c) and (d)
B(b), (c) and (d)
C(c) and (d)
D(b) and (d)
Answer:(D) (b) and (d)
Explanation
The exponential distribution is a continuous, positively skewed probability distribution modeling the time between independent Poisson events.
(a) It is discrete distribution — incorrect. The exponential distribution models continuous intervals over real numbers, not discrete counts.
(b) It is a family of distributions — correct. Varying the single scale or rate parameter lambda generates an entire family of exponential distributions.
(c) It is skewed to the left — incorrect. The probability density function decays monotonically from zero toward positive infinity, making it heavily skewed to the right.
(d) The x values range from zero to infinity — correct. The random variable represents non-negative time or distance where x is in [0, infinity).
Therefore, only statements (b) and (d) are valid properties.
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Question 3
AB Ltd. manufactures filing cabinets. For the current year, the company expects to sell 4,000 cabinets involving a loss of Rs. 2,00,000. Only 40 percent of the plant's normal capacity is being utilised during the current year. The fixed costs for the year are Rs. 10,00,000 and fully variable costs are 60 percent of the sales value. What is the break-even point in terms of sales value?
ARs. 25,00,000
BRs. 20,00,000
CRs. 16,66,667
DRs. 30,00,000
Answer:(A) Rs. 25,00,000
Explanation
Break-even sales value is computed by dividing total fixed costs by the profit-volume (P/V) ratio.
P/V Ratio = 100% - Variable Cost Ratio
P/V Ratio = 100% - 60% = 40% = 0.40
Rs. 20,00,000 — this corresponds to the current actual sales level where Contribution = 0.40 * 20,00,000 = Rs. 8,00,000, leaving an operating loss of Rs. 2,00,000 against fixed costs of Rs. 10,00,000.
Rs. 16,66,667 — results from incorrectly dividing fixed costs by variable cost percentage 0.60.
Rs. 30,00,000 — an arbitrary higher sales figure.
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Question 4
Balassa index is often used as a tool to measure the
ARelative trade performance of individual countries in particular commodities
BComparative cost advantage of nations
CProduct life cycle for different commodities
DNational competitive advantage
Answer:(A) Relative trade performance of individual countries in particular commodities
Explanation
The Balassa index quantifies a country's revealed comparative advantage (RCA) by evaluating its export performance in specific goods relative to global benchmarks.
Formulated by Bela Balassa in 1965, the index compares the share of a country's exports in a particular commodity against that commodity's share in total world exports.
Option A — correct. It directly measures relative export specialization and trading prowess in specific commodities.
Option B — comparative cost advantage stems from Ricardian underlying factor costs, which the Balassa index estimates indirectly via actual trade flows rather than direct cost accounting.
Option C — product life cycle models trade through innovation and maturity phases (Vernon), not the Balassa index.
Option D — national competitive advantage relates to Porter's Diamond framework.
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Question 5
Linux is the most well-known and widely used
AOpen source operating system
BJava platform
CCommunication software
DSystem software
Answer:(A) Open source operating system
Explanation
Linux is the world's most prominent open-source operating system kernel created by Linus Torvalds.
Option A — correct. Released under open-source licensing such as the GNU GPL, Linux allows anyone to inspect, modify, and redistribute its source code freely.
Option B — Java is an object-oriented programming language and platform created by Sun Microsystems, distinct from an operating system.
Option C — communication software refers to networking applications like messaging protocols or FTP clients.
Option D — while all operating systems are system software, Linux is specifically recognized for pioneering the collaborative open-source operating system paradigm.
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Question 6
Two friends are on WhatsApp discussing a holiday plan. Immediately, Uber pops up within WhatsApp to help book a ride and provide an estimate. This is known as
AContextual digital marketing
BDirect mail marketing
CMail order marketing
DTelemarketing
Answer:(A) Contextual digital marketing
Explanation
Contextual digital marketing delivers promotional messaging dynamically aligned with the real-time content, keywords, or conversational environment of the user.
Option A — correct. Automated systems analyze the situational context (discussing travel plans) to trigger an immediate, relevant ride-booking recommendation.
Option B — direct mail marketing involves delivering physical print materials to postal addresses.
Option C — mail order marketing sells merchandise via catalog distribution and mail delivery.
Option D — telemarketing relies on telephone calls initiated by sales agents.
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Question 7
The ethical decision 'Same Job, Same Wage' is used under which criterion?
ARights
BUtilitarianism
CJustice
DCulture
Answer:(C) Justice
Explanation
The justice criterion in business ethics mandates equitable, fair, and impartial distribution of organizational benefits and burdens.
Option C — correct. Distributive justice requires that employees performing equivalent work receive identical remuneration without arbitrary discrimination.
Option A — rights criteria focus on protecting fundamental entitlements like free speech, privacy, and due process.
Option B — utilitarianism evaluates actions strictly by their net consequences to produce the greatest good for the greatest number.
Option D — cultural criteria view ethics through historical traditions or social norms rather than formalized principles of fairness.
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Question 8
A firm's competitive advantage over its competitor is best described by the
ADifference between buyers' willingness to pay (WTP) and suppliers' willingness to sell (WTS) is greater than the competitor's difference between the WTP and WTS
BCombined valuation of businesses more than the individual sum of businesses
CWinner businesses win more than the loser's lose
DSuperiority of the corporate strategy over its business strategy
Answer:(A) Difference between buyers' willingness to pay (WTP) and suppliers' willingness to sell (WTS) is greater than the competitor's difference between the WTP and WTS
Explanation
Competitive advantage reflects a firm's superior ability to create a wider wedge of total economic value than its industry rivals.
Total economic value created equals the difference between the buyer's willingness to pay (WTP) and the supplier's opportunity cost or willingness to sell (WTS).
Option A — correct. A firm establishes a sustainable advantage when its created economic wedge (WTP - WTS) exceeds that of competing firms.
Option B — describes corporate synergy or economies of scope across multiple business units.
Option C — colloquial phrasing describing zero-sum competition or market redistribution.
Option D — reflects strategic alignment rather than a definition of market competitive advantage.
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Question 9
Which one of the following is NOT an integral part of credit policy of a business firm?
ACredit standards
BCredit terms
CCollection policy
DCredit rating
Answer:(D) Credit rating
Explanation
A firm's managerial credit policy governs the granting and administering of customer trade credit through three foundational pillars.
Credit standards — establish minimum financial strength criteria that customers must satisfy to qualify for credit.
Credit terms — define the credit period and cash discounts offered for prompt settlement.
Collection policy — outlines administrative procedures to monitor accounts receivable and accelerate overdue payments.
Option D — credit rating is an assessment assigned by external agencies (such as CRISIL or ICRA) or derived by risk scoring, not a policy parameter formulated by the firm.
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Question 10
Which one of the following is NOT correct for National Income?
AGross National Product (GNP) > Gross National Income (GNI)
BGross Domestic Product (GDP) = GNP less Net Income from Abroad
CNet National Product (NNP) = GNP less Depreciation
DNet Domestic Product (NDP) = NNP less Net Income from Abroad
Answer:(A) Gross National Product (GNP) > Gross National Income (GNI)
Explanation
Gross National Product (GNP) and Gross National Income (GNI) represent equivalent aggregate valuations of economic performance from output and income perspectives.
Because every unit of output generates an identical unit of gross income, GNP identically equals GNI. Therefore, asserting GNP > GNI is conceptually incorrect.
Option B — GDP equals GNP minus Net Factor Income from Abroad (NFIA), which is mathematically valid since GNP = GDP + NFIA.
Option C — NNP equals GNP minus capital consumption allowance (depreciation), representing net output.
Option D — NDP equals NNP minus NFIA, which is valid since domestic product excludes cross-border net property receipts.
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Question 11
Which one of the following is true for a monopoly firm that operates at the level of output where MR = MC?
AIf AR > AC, there is abnormal profit for the firm
BIf AR = AC, there is abnormal profit for the firm
CIf AR > AC, the firm earns only normal profit
DIf AR < AC, the firm earns only normal profit
Answer:(A) If AR > AC, there is abnormal profit for the firm
Explanation
A monopolist maximizes profit at the output level where marginal revenue equals marginal cost (MR = MC).
Option A — correct. When average revenue exceeds average cost (AR > AC) at MR = MC, price exceeds unit production costs, yielding positive economic or abnormal profit.
Option B — when AR equals AC, price covers all explicit and implicit opportunity costs, yielding normal profit rather than abnormal profit.
Option C — AR > AC produces supernormal or abnormal profit, not merely normal profit.
Option D — when AR is less than AC, the firm incurs an operating loss, not normal profit.
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Question 12
Indicate the correct answer for the combination from the following regarding the conditions for the applicability of a binomial distribution:
(a) There are n independent trials
(b) Each trial has only two possible outcomes
(c) The probabilities of two outcomes do not remain constant
(d) The trials are independent
Which of the following options is correct?
A(a), (b) and (c)
B(a), (c) and (d)
C(a), (b) and (d)
D(b), (c) and (d)
Answer:(C) (a), (b) and (d)
Explanation
A binomial experiment requires a fixed series of independent Bernoulli trials characterized by stationary probability.
(a) There are n independent trials — correct. The number of trials n must be fixed and finite.
(b) Each trial has only two possible outcomes — correct. Each trial results in either success or failure.
(c) The probabilities of two outcomes do not remain constant — incorrect. The probability of success p must remain strictly constant across all trials.
(d) The trials are independent — correct. The outcome of any single trial has zero influence on the outcome of subsequent trials.
Thus, statements (a), (b), and (d) establish the required mathematical conditions.
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Question 13
The term 'The War for Talent' was coined by
AMcKinsey
BT.V. Rao
CUdai Pareek
DD. Ulrich
Answer:(A) McKinsey
Explanation
The phrase 'The War for Talent' was introduced by McKinsey & Company in 1997.
Option A — correct. McKinsey consultants led by Steven Hankin observed that corporate performance increasingly depends on attracting, developing, and retaining high-caliber managerial talent.
Option B — T.V. Rao is regarded as the father of Indian Human Resource Development alongside Udai Pareek.
Option C — Udai Pareek pioneered institutional HRD frameworks and OCTAPACE organizational culture profiling in India.
Option D — Dave Ulrich developed the four-role HR business partner model (administrative expert, employee champion, change agent, strategic partner).
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Question 14
A specific category of information system serving middle managers by providing reports on the organization's current performance is called
AMIS
BTPS
CDSS
DESS
Answer:(A) MIS
Explanation
Management Information Systems (MIS) provide middle managers with recurring structured reports summarizing day-to-day operations.
Option A (MIS) — correct. It condenses underlying transaction data into structured weekly or monthly variance and performance reports to monitor business performance.
Option B (TPS) — Transaction Processing Systems serve operational managers by recording basic daily routine transactions like sales orders and payroll.
Option C (DSS) — Decision Support Systems assist middle and senior managers with non-routine decisions using analytical modeling tools.
Option D (ESS) — Executive Support Systems provide senior leadership with non-routine strategic forecasting and external portal intelligence.
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Question 15
Which of the following were two major criteria for the first official definition of small scale industry coined, in the year 1950?
AThe size of gross investment in fixed assets and the strength of the work force
BThe size of gross investment in fixed assets and the annual turnover
CThe strength of the workforce and the annual turnover
DThe annual turnover and the annual profit
Answer:(A) The size of gross investment in fixed assets and the strength of the work force
Explanation
India's initial post-independence definition of small-scale industries combined capital ceiling with employment thresholds.
In the 1950 official definition, a small-scale industrial unit was classified based on gross investment in capital assets (not exceeding Rs. 5 lakh) and the total number of hired workers (less than 50 persons working with power or less than 100 persons without power).
Option A — correct. Both investment in plant and equipment alongside workforce headcounts formed the twin criteria.
Option B, C, and D — annual turnover parameters were introduced decades later with the MSMED Act 2006 revisions rather than the original 1950 baseline.
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Question 16
The system of collective bargaining as a method of settlement of industrial disputes has been adopted and provided under
The Industrial Disputes Act, 1947 provides statutory machinery and legal recognition for the settlement of industrial disputes through bipartite negotiations and conciliation.
Option A — correct. Section 18 of the Industrial Disputes Act, 1947 grants binding legal status to bilateral settlements arrived at by mutual agreement between employer and workmen.
Option B — The Trade Unions Act, 1926 deals with registration, immunities, and recognition of trade unions rather than dispute settlement machinery.
Option C — The Industrial Employment (Standing Orders) Act, 1946 requires employers to formally define conditions of employment.
Option D — The Taft-Hartley Act, 1947 is a United States federal statute, not the Indian domestic dispute settlement framework.
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Question 17
Which national institute has set up/established a 'Centre for Research in Entrepreneurship Education and Development (CREED)' with the objective to broaden the frontier of entrepreneurship research?
AIndian Institute of Management, Ahmedabad
BEntrepreneurship Development Institute of India
CDelhi University
DInstitute of Rural Management, Anand
Answer:(B) Entrepreneurship Development Institute of India
Explanation
The Centre for Research in Entrepreneurship Education and Development (CREED) was established by the Entrepreneurship Development Institute of India (EDII) in Ahmedabad.
Option B (EDII) — correct. EDII created CREED to foster rigorous empirical scholarship, develop innovative pedagogy, and expand research frontiers across micro and small business incubation.
Option A (IIM Ahmedabad) — contains the Centre for Innovation, Incubation and Entrepreneurship (CIIE), not CREED.
Option C (Delhi University) — houses departmental research centers without CREED.
Option D (IRMA) — specializes in cooperative management and rural development research.
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Question 18
For which of the following types of goods the demand increases rapidly with the increase in consumer's income but slows down with further increases in income?
AInferior goods
BEssential consumer goods
CNormal goods
DLuxury and prestige goods
Answer:(B) Essential consumer goods
Explanation
Demand for essential consumer goods follows Engel's law: consumption rises rapidly as income escapes poverty, then levels off once physiological requirements are satisfied.
Option B (Essential consumer goods) — correct. Income elasticity of demand is initially positive and high at low incomes, but declines substantially as household income advances toward saturation.
Option A (Inferior goods) — demand exhibits an inverse relationship with income, falling as income rises.
Option C (Normal goods) — demand rises proportionately with income over a broad spectrum.
Option D (Luxury and prestige goods) — demand expands at an increasing rate relative to income growth, with income elasticity well above 1.
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Question 19
Match the items of List I with the items of List II and choose the correct answer from the code:
List I
List II
(a) Product line
(i) Total number of items under each product/brand in the line
(b) Depth of product
(ii) Number of products/brands in the line
(c) Width of product mix
(iii) Group of closely related products
(d) Length of product line
(iv) Number of product lines
A(a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)
B(a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)
C(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
D(a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)
Answer:(A) (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)
Explanation
Product mix dimensions determine the scope, assortment, and variety of an enterprise's market offerings.
(a) Product line — matches (iii). A group of closely related products that perform similar functions and are sold to similar customer groups.
(b) Depth of product — matches (i). The total number of items, sizes, or variants offered under each product or brand in the line.
(c) Width of product mix — matches (iv). The total number of distinct product lines manufactured or marketed by the company.
(d) Length of product line — matches (ii). The total number of separate products or brands contained within the line.
The ratio between customer's perceived benefits and the resources they use to obtain those benefits is known as
ACustomer satisfaction
BCustomer value
CCustomer retention
DCustomer loyalty
Answer:(B) Customer value
Explanation
Customer value is formally defined as the ratio of perceived total customer benefits to perceived total customer costs.
Customer Value = Perceived Benefits / Perceived Costs
Option B (Customer value) — correct. It captures the trade-off between functional, psychological, and monetary gains versus the monetary, time, and physical energy resources expended.
Option A (Customer satisfaction) — reflects post-purchase emotional evaluation comparing actual product performance against pre-purchase expectations.
Option C (Customer retention) — measures an organization's statistical rate of keeping customers over defined periods.
Option D (Customer loyalty) — represents deeply held repeat purchase commitment unaffected by competitive marketing pressures.
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Question 21
If Mr. X pays a well-known fashion innovator such as Calvin Klein for the right to use its name on his apparel and accessories, then Mr. X is using which type of branding?
ACo-branding
BPrivate branding
CManufacturer's branding
DLicensed branding
Answer:(D) Licensed branding
Explanation
Brand licensing is a contractual arrangement where a brand owner grants legal permission to another entity to utilize its brand name, logo, or trademark in exchange for royalty fees.
Option D (Licensed branding) — correct. Mr. X purchases the commercial right to manufacture and sell goods bearing the registered Calvin Klein brand name.
Option A (Co-branding) — involves two established brand names joining together on a single co-marketed product.
Option B (Private branding) — occurs when retailers or wholesalers contract manufacturers to produce goods packaged under the store's proprietary private label.
Option C (Manufacturer's branding) — features products produced and branded directly under the manufacturer's own identity.
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Question 22
The following statements relate to organisational culture:
Statement I: Culture is the cumulative preference of some states of life and some organized ways of dealing with basic concerns by members of a society.
Statement II: There are various ways of making employees aware about the organization's culture. These include stories, language, rituals, organizational structure and physical layout and rules and policies.
Which of the following options is correct?
AStatement I is correct, but II is incorrect
BStatement II is correct, but I is incorrect
CBoth the statement I and II are correct
DBoth the statement I and II are incorrect
Answer:(C) Both the statement I and II are correct
Explanation
Organizational culture embodies shared foundational values, core behavioral patterns, and the communicative mechanisms by which those values are transmitted.
Statement I is correct — culture represents the accumulated values, beliefs, and standardized methods that members of a group adopt to solve fundamental problems of external adaptation and internal integration.
Statement II is correct — organizational culture is actively communicated and socialized through storytelling, corporate symbols, rituals, linguistic traditions, physical workspace design, and formal policy guidelines.
Because both propositions are factually accurate, Option C is correct.
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Question 23
Fine speciality store falls into
AHigh-mark up, lower volume group
BHigh-mark up, higher volume group
CLow-mark up, lower volume group
DLow-mark up, higher volume group
Answer:(A) High-mark up, lower volume group
Explanation
Retail positioning matrices classify merchant outlets by the trade-off between pricing markup and sales volume.
Option A (High-markup, lower volume) — correct. Fine specialty stores like luxury boutiques or diamond jewelers curate premium, narrow assortments with elevated gross profit margins while handling fewer individual transactions.
Option B (High-markup, higher volume) — practically unsustainable across competitive retail markets.
Option C (Low-markup, lower volume) — represents a financially unviable operating profile that fails to recover fixed overhead.
Option D (Low-markup, higher volume) — characterizes mass discount superstores and hypermarkets like Walmart or Costco.
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Question 24
Which one of the following demand forecasting methods is NOT a survey method?
ADelphi method
BEnd use method
CGraphical method
DComplete enumeration method
Answer:(C) Graphical method
Explanation
Demand forecasting techniques divide broadly into survey-based qualitative inquiries and quantitative statistical projections.
Delphi method — a structured survey method synthesizing anonymous feedback from a panel of industry experts.
End use method — a survey technique determining requirements across distinct end-user manufacturing industries.
Complete enumeration method — an exhaustive survey contacting every single prospective consumer in the target territory.
Option C (Graphical method) — a statistical trend projection technique where historical sales points are plotted on a graph to extrapolate future demand curves mathematically.
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Question 25
According to which of the following approaches of decision making, a manager picks up a course of action that is satisfactory or good enough under the circumstances?
AThe Behavioural Approach
BThe Bounded Rationality Approach
CThe 'Garbage Can' Approach
DThe Cooperative Social System Approach
Answer:(B) The Bounded Rationality Approach
Explanation
Herbert Simon's Bounded Rationality model demonstrates that real-world managers satisfice rather than optimize.
Option B (The Bounded Rationality Approach) — correct. Due to cognitive limits, information gaps, and time pressure, decision makers identify an option meeting minimum acceptable standards rather than seeking an elusive global maximum.
Option A (The Behavioural Approach) — broader descriptive framework focusing on interpersonal dynamics and leadership styles.
Option C (The 'Garbage Can' Approach) — describes decision making in organized anarchies where problems, solutions, and participants drift together haphazardly.
Option D (The Cooperative Social System Approach) — Chester Barnard's framework conceptualizing organizations as cooperative human networks.
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Question 26
Authority is the right to make decisions to direct the work of others and to give orders. In this context match the items of List I with the items of List II and choose the correct answer from the code:
List I (Authority / Manager type)
List II (Description)
(a) Line Authority
(i) Gives a manager the right to advice other managers or employees
(b) Staff Authority
(ii) Traditionally gives managers the right to issue orders to other managers or employees
(c) Line Manager
(iii) A manager who assists and advises the manager
(d) Staff Manager
(iv) A manager who is authorised to direct the work of subordinates is responsible for accomplishing the organisation's tasks
A(a)-(i), (b)-(iv), (c)-(iii), (d)-(ii)
B(a)-(ii), (b)-(i), (c)-(iv), (d)-(iii)
C(a)-(iv), (b)-(ii), (c)-(iii), (d)-(i)
D(a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
Answer:(B) (a)-(ii), (b)-(i), (c)-(iv), (d)-(iii)
Explanation
Organizational structures delineate managerial functions by contrasting operational command with advisory support.
(a) Line Authority — matches (ii). Gives managers the formal right to issue directives to subordinates to accomplish organizational goals.
(b) Staff Authority — matches (i). Grants specialists the right to advise, assist, and counsel line personnel without direct command authority.
(c) Line Manager — matches (iv). An operational manager authorized to direct subordinates and held directly accountable for organizational objectives.
(d) Staff Manager — matches (iii). A supportive manager who assists and advises line managers with specialized expertise.
The following statements relate to entrepreneurial opportunities:
Statement I: All ideas are opportunities.
Statement II: An opportunity is an idea that has the qualities of being attractive, durable and timely.
Which of the following options is correct?
ABoth the statements are correct
BBoth the statements are incorrect
CStatement I is correct while statement II is incorrect
DStatement I is incorrect while statement II is correct
Answer:(D) Statement I is incorrect while statement II is correct
Explanation
In entrepreneurship theory, business ideas must meet stringent market viability criteria to qualify as genuine entrepreneurial opportunities.
Statement I is incorrect — many business ideas are unfeasible, unprofitable, or lack market demand. An idea is merely a thought or impression, whereas an opportunity creates customer value.
Statement II is correct — an opportunity represents a favorable set of circumstances characterized by being attractive, durable, timely, and anchored in a product or service that creates value.
Therefore, Statement I is incorrect while Statement II is correct.
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Question 28
Data scrubbing is:
AA process to reject data from the data warehouse and to create the necessary indexes.
BA process to load the data in the data warehouse and to create necessary indices.
CA process to upgrade the quality of data before it is moved into a data warehouse.
DA process to upgrade the quality of data after it is moved into a data warehouse.
Answer:(C) A process to upgrade the quality of data before it is moved into a data warehouse.
Explanation
Data scrubbing (or data cleansing) is an essential extract-transform-load (ETL) phase that detects and corrects corrupted, duplicate, or inaccurate records before data reaches the repository.
Option C — correct. Cleansing and standardizing operational records prior to warehouse loading ensures high analytical integrity.
Option A — indexing optimizes query execution rather than rejecting invalid records.
Option B — loading transfers processed data into storage tables rather than scrubbing it.
Option D — scrubbing occurs during the upstream staging and transformation pipeline rather than after permanent warehouse commitment.
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Question 29
Which of the following statistical techniques should be used when you wish to examine the association between two nominal variables?
AMultiple regression analysis
BSimple correlation coefficient
CChi-square contingency test
DPearson correlation coefficient
Answer:(C) Chi-square contingency test
Explanation
The Chi-square contingency test evaluates independence between two categorical variables classified into discrete nominal categories.
Option C (Chi-square contingency test) — correct. It compares observed frequencies across a cross-tabulated contingency table against expected frequencies under the null hypothesis of independence.
Option A (Multiple regression analysis) — requires metric dependent variables measured on interval or ratio scales.
Option B (Simple correlation coefficient) — measures linear co-variation between quantitative metric variables.
Option D (Pearson correlation coefficient) — requires continuous, normally distributed interval or ratio data.
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Question 30
What is the market price per share (face value = Rs. 100) as per Walter model if the profitability rate of the company is 16 percent, payout ratio is 80 percent and the cost of capital is 10 percent?
ARs. 169.20
BRs. 182.90
CRs. 179.20
DRs. 180.90
Answer:(C) Rs. 179.20
Explanation
Walter's valuation model calculates market price per share using the relationship between internal rate of return and cost of capital.
Walter Formula:
P = [D + (r / Ke) * (E - D)] / Ke
Given Parameters:
Face value = Rs. 100
Profitability rate (r) = 16% = 0.16
Cost of capital (Ke) = 10% = 0.10
Earnings per share (E) = 16% of Rs. 100 = Rs. 16
Payout ratio = 80%
Dividend per share (D) = 80% of Rs. 16 = Rs. 12.80
Retained earnings per share (E - D) = Rs. 16 - Rs. 12.80 = Rs. 3.20
Rs. 179.20 — matches the computed Walter valuation.
Rs. 169.20, Rs. 182.90, and Rs. 180.90 — arithmetic distractors resulting from incorrect capitalization rates.
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Question 31
In which Amendment of the Constitution, the Government of India made a pioneering attempt to provide for 'workers' participation in management in industry', by suitable legislation in the Directive Principles of State Policy?
AThe Constitution (42 Amendment Act), 1976
BThe Constitution (41 Amendment Act), 1975
CThe Constitution (46 Amendment Act), 1977
DThe Constitution (40 Amendment Act), 1972
Answer:(A) The Constitution (42 Amendment Act), 1976
Explanation
The 42nd Constitutional Amendment Act of 1976 incorporated Article 43A into Part IV of the Constitution of India.
Option A (42nd Amendment Act, 1976) — correct. Article 43A directs the State to take steps, by suitable legislation or otherwise, to secure the participation of workers in the management of undertakings and establishments.
Option B (41st Amendment Act, 1975) — raised the retirement age of State Public Service Commission members from 60 to 62.
Option C (46th Amendment Act, 1977) — concerned consignment sales and sales tax adjustments.
Option D (40th Amendment Act, 1972) — amended the Ninth Schedule regarding land reform laws.
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Question 32
The process for enabling employees to better understand and develop their career skills and interests and to use these skills and interests most effectively both within the company and after they leave the firm, is known as
ACareer development
BCareer planning
CCareer management
DCareer counselling
Answer:(A) Career development
Explanation
Career development encompasses the lifelong series of organizational activities and programs that enhance an employee's skills, competencies, and career potential throughout and beyond their tenure with a specific employer.
Option A (Career development) — correct. It provides organizational tools, training, and pathways for individuals to grow capabilities that remain valuable inside and outside the firm.
Option B (Career planning) — the deliberate personal process through which an individual identifies career goals and paths.
Option C (Career management) — the organization-driven process of preparing, implementing, and monitoring employee career paths.
Option D (Career counselling) — targeted one-on-one advisory guidance to help individuals navigate specific career dilemmas.
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Question 33
In most of the cases 'cessation of work', refusal to continue to work or refusal to accept employment is called strike. Which of the following does NOT come under the form of strike?
ASit-down strike
BHunger strike
CGherao
DWork-to-rule
Answer:(C) Gherao
Explanation
Under labor law and industrial relations principles, a strike represents a concerted stoppage or refusal to work, whereas physical confinement is an unlawful act.
Option C (Gherao) — correct. Gherao involves physical blockage and wrongful confinement of managerial staff, which Indian courts have ruled as an illegal coercive act under criminal law rather than a recognized form of strike.
Option A (Sit-down strike) — workers enter the factory premises but refuse to work or vacate their workstations.
Option B (Hunger strike) — employees fast at or near workplace premises to apply moral pressure while stopping work.
Option D (Work-to-rule) — employees follow official job rules and safety regulations to the literal extreme to deliberately reduce operational output.
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Question 34
If actual production of units are lower than the budgeted level of production, which of the following costs would be lower than the budgeted costs?
AVariable cost per unit
BTotal variable cost
CTotal fixed cost
DNone of the above
Answer:(B) Total variable cost
Explanation
Total variable costs fluctuate in direct proportion to the volume of output produced.
Option B (Total variable cost) — correct. Because total variable cost equals unit variable cost multiplied by production volume, producing fewer units directly reduces total variable expenditure below the budgeted amount.
Option A (Variable cost per unit) — remains constant across different output levels within the relevant range.
Option C (Total fixed cost) — remains unchanged in aggregate regardless of whether actual production meets the budget.
Option D — incorrect because total variable cost is lower.
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Question 35
For a situation where 100 misprints are distributed randomly throughout the 100 pages of a book, the probability that a page selected at random will contain at most one misprint will be
A0.724
B0.728
C0.732
D0.736
Answer:(D) 0.736
Explanation
The occurrence of rare independent misprints across pages follows a Poisson distribution.
Poisson Parameter:
Average misprints per page (lambda) = 100 misprints / 100 pages = 1
Probability of at most one misprint:
P(X <= 1) = P(X = 0) + P(X = 1)
P(X = k) = [e^(-lambda) * lambda^k] / k!
For k = 0:
P(X = 0) = [e^(-1) * 1^0] / 0! = e^(-1)
For k = 1:
P(X = 1) = [e^(-1) * 1^1] / 1! = e^(-1)
0.724, 0.728, and 0.732 — distractor values resulting from rounding approximations or alternative distribution formulas.
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Question 36
Which of the following modules is NOT a part of a typical ERP system?
AThe Corporate Management (CM) Module
BThe Asset Management (AM) Module
CThe Human Resource (HR) Module
DThe Project System (PS) Module
Answer:(A) The Corporate Management (CM) Module
Explanation
Enterprise Resource Planning systems integrate standard functional business modules rather than a generic corporate management module.
Option A (Corporate Management Module) — correct as the answer. Standard ERP architectures (such as SAP ERP) do not feature a 'Corporate Management (CM)' module.
Option B (Asset Management Module) — manages fixed assets, plant maintenance, and depreciation accounting.
Option C (Human Resource Module) — handles payroll, personnel administration, recruitment, and time management.
Option D (Project System Module) — coordinates project planning, execution, budgeting, and milestone tracking.
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Question 37
The correlation coefficient is the __________ of two regression coefficients.
AGeometric mean
BArithmetic mean
CHarmonic mean
DMedian
Answer:(A) Geometric mean
Explanation
By fundamental mathematical theorem in regression theory, the correlation coefficient is the geometric mean of the two regression coefficients.
Formula:
r = +/- sqrt(byx * bxy)
Option A (Geometric mean) — correct. The square of Pearson correlation r equals the product of the regression slope of Y on X (byx) and X on Y (bxy).
Option B (Arithmetic mean) — the arithmetic mean of two regression coefficients is always greater than or equal to the correlation coefficient: (byx + bxy) / 2 >= r.
Option C (Harmonic mean) — does not define the algebraic relationship between regression slopes.
Option D (Median) — a positional average unrelated to regression derivation.
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Question 38
Re-engineering, a radical redesign of business processes, is an essential and integral to which of the following strategies?
AExpansion strategy
BDiversification strategy
CGrowth strategy
DTurnaround strategy
Answer:(D) Turnaround strategy
Explanation
Business Process Re-engineering (BPR) entails the fundamental rethinking and radical redesign of core business processes to achieve dramatic improvements in critical measures of performance.
Option D (Turnaround strategy) — correct. When an organization faces severe financial distress or operational decline, radical process re-engineering is essential to reconstruct the operating cost structure and restore viability.
Option A (Expansion strategy) — focuses on market penetration or geographic reach without necessarily overhauling core internal processes.
Option B (Diversification strategy) — enters new product categories or industries.
Option C (Growth strategy) — prioritizes capacity additions and sales volume expansion.
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Question 39
As a newly appointed marketing manager of a firm, you have been asked to determine if a special Point-of-Purchase (POP) display causes the purchase of the product on display. What type of research design will be needed?
AExploratory
BDescriptive
CExperimental
DNormative
Answer:(C) Experimental
Explanation
Establishing a causal relationship where an independent variable causes changes in a dependent variable requires an experimental research design.
Option C (Experimental) — correct. The researcher manipulates the presence of the POP display (the treatment) across test and control stores while controlling for extraneous variables like pricing and foot traffic.
Option A (Exploratory) — develops initial hunches and clarifies unstructured problem contexts.
Option B (Descriptive) — measures market characteristics or purchase frequencies without establishing causal proof.
Option D (Normative) — prescribes what decisions should be made based on valuation criteria rather than testing empirical causation.
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Question 40
If risk-free return is 8 percent and the expected return on a market portfolio is 12 percent, the required return on a stock is 15 percent. What is stock beta?
A0.75
B1.75
C1.25
D2.75
Answer:(B) 1.75
Explanation
The Capital Asset Pricing Model (CAPM) expresses the required rate of return on an individual asset as a function of systematic risk beta.
0.75, 1.25, and 2.75 — numerical distractors arising from arithmetic errors in calculating the equity risk premium.
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Question 41
NITI Aayog, GOI, has launched a scheme to develop ecosystem for women entrepreneurship in India. Identify the scheme out of the following:
AWomen Empowerment Agency
BWomen Entrepreneurship Platform
CNaari Shakti Aayog
DWomen Knowledge Center
Answer:(B) Women Entrepreneurship Platform
Explanation
NITI Aayog launched the Women Entrepreneurship Platform (WEP) to build an enabling ecosystem for budding and existing women entrepreneurs across India.
Option B (Women Entrepreneurship Platform) — correct. Introduced on International Women's Day 2018, WEP operates on three pillars: Iccha Shakti (motivating aspiring entrepreneurs), Gyaan Shakti (knowledge and ecosystem support), and Karma Shakti (hands-on business scaling).
Option A (Women Empowerment Agency) — does not exist as an official NITI Aayog program.
Option C (Naari Shakti Aayog) — fictitious initiative name.
Option D (Women Knowledge Center) — generic descriptive phrase not corresponding to the NITI Aayog portal.
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Question 42
Which of the following statements is true?
AThe Spearman correlation coefficient is a measure of the association between two interval variables.
BThe Pearson correlation coefficient is designed to capture the extent of linear association between variables.
CIn regression analysis the dependent variable is treated as a fixed variable, while the independent variable is random.
DThe Pearson correlation coefficient can range from +2.0 to -2.0.
Answer:(B) The Pearson correlation coefficient is designed to capture the extent of linear association between variables.
Explanation
The Pearson product-moment correlation coefficient measures the degree and direction of linear relationship between two continuous variables.
Option B — true. Pearson r measures specifically the linear association between paired metric variables.
Option A — false. Spearman rank correlation is a non-parametric measure designed for ordinal or ranked variables, not interval data.
Option C — false. Classical linear regression treats the independent variable X as fixed in repeated sampling and the dependent variable Y as a random variable.
Option D — false. The Pearson correlation coefficient is strictly bounded within the interval [-1.0, +1.0].
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Question 43
Following are two statements with regard to product life cycle (PLC):
Statement I: Product sales pass through distinct stages of PLC, each posing different challenges, opportunities and problems to the seller.
Statement II: A company's positioning and differentiation strategy must change as its product, market and competitors change over the product life cycle.
Which of the following is correct?
AStatement I is correct, but II is incorrect
BStatement II is correct, but I is incorrect
CBoth the statements I and II are correct
DBoth the statements I and II are incorrect
Answer:(C) Both the statements I and II are correct
Explanation
Product Life Cycle theory establishes that market dynamics change fundamentally across introduction, growth, maturity, and decline.
Statement I is correct — sales follow distinct stages where cash flow, buyer awareness, production scale, and distribution requirements present distinct operational challenges.
Statement II is correct — initial introductory positioning focusing on innovators must pivot toward market defense, feature differentiation, and cost leadership as competitors saturate the category.
Because both propositions are valid marketing principles, Option C is correct.
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Question 44
Transactional Analysis does NOT help in
AProblem solving
BHigher social status
CImproved communication within the organisation
DBetter leadership
Answer:(B) Higher social status
Explanation
Transactional Analysis (TA), developed by Eric Berne, is a psychological framework examining interpersonal transactions and ego states (Parent, Adult, Child).
Option B (Higher social status) — correct as the answer. TA is an internal behavioral tool for self-awareness and interpersonal dynamics. It does not confer socioeconomic rank or external prestige.
Option A (Problem solving) — activating the objective, rational Adult ego state directly facilitates constructive problem solving.
Option C (Improved communication) — diagnosing complementary, crossed, and ulterior transactions eliminates interpersonal friction.
Option D (Better leadership) — understanding behavioral life positions enhances managerial empathy and coaching.
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Question 45
Match the items of List I with the items of List II and choose the correct answer from the code:
List I
List II
(a) Propitious niche
(i) It focuses on improving the competitive position within specific industry that the business unit serves
(b) Strategic window
(ii) An extremely favourable market situation so well suited to the firm's competitive advantage that other organisations are not likely to challenge it
(c) Mission
(iii) A unique market opportunity that is available only for a particular time
(d) Business strategy
(iv) It is an objective and measurable common thread to highlight and focus the energy of everyone in the direction that the management believes is the best for the best
(a) Propitious niche — matches (ii). An extremely favorable market environment so well matched to the firm's competitive advantages that competitors are unlikely to challenge it.
(b) Strategic window — matches (iii). A temporary unique market opportunity that is available only for a limited period.
(c) Mission — matches (iv). An overarching common thread that focuses collective organizational energy in management's chosen direction.
(d) Business strategy — matches (i). Focuses on improving the competitive position of products or services within the specific industry served.
Which one of the following involves selling at a loss to gain access to a market and perhaps to drive competition?
APersistent dumping
BPredatory dumping
CReverse dumping
DSporadic dumping
Answer:(B) Predatory dumping
Explanation
International trade theory distinguishes between distinct dumping strategies based on corporate motivation.
Option B (Predatory dumping) — correct. An exporter temporarily sells goods abroad below cost or at a loss to eliminate foreign competitors and acquire monopoly power, intending to raise prices afterward.
Option A (Persistent dumping) — ongoing international price discrimination where a firm continuously charges lower prices in foreign markets with more elastic demand.
Option C (Reverse dumping) — occurs when a producer sells at higher prices in foreign markets and lower prices at home.
Option D (Sporadic dumping) — occasional unloading of temporary, unforeseen inventory surpluses onto overseas markets.
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Question 47
International Fisher Effect suggests that a home currency will
AAppreciate if the current home interest rate exceeds the current foreign interest rate
BDepreciate if the current home interest rate exceeds current foreign interest rate
CAppreciate if the current home inflation rate exceeds the current foreign inflation rate
DDepreciate if the current home inflation rate exceeds the current foreign inflation rate
Answer:(B) Depreciate if the current home interest rate exceeds current foreign interest rate
Explanation
The International Fisher Effect (IFE) posits that nominal interest rate differentials reflect anticipated exchange rate movements between countries.
Option B — correct. When the domestic interest rate exceeds the foreign interest rate, the home currency must depreciate over time by approximately the interest differential to prevent risk-free cross-border arbitrage.
Option A — incorrect because higher domestic interest rates signal expected depreciation rather than appreciation.
Option C and D — describe Purchasing Power Parity (PPP), which directly links currency depreciation to inflation differentials rather than nominal interest rates.
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Question 48
Singapore Airlines offer personalised service at airport, excellent service in flight, menu of customer's choice, personal TV etc. It is an example of
AFunctional brand
BJustified brand
CImage brand
DExperience brand
Answer:(D) Experience brand
Explanation
An experience brand differentiates itself by creating immersive, sensory, and highly engaging service interactions throughout every customer touchpoint.
Option D (Experience brand) — correct. Singapore Airlines orchestrates an end-to-end luxury journey through personalized airport hospitality, gourmet dining options, and inflight entertainment.
Option A (Functional brand) — focuses primarily on basic utilitarian performance, cost efficiency, or mechanical reliability.
Option B (Justified brand) — provides rational economic or quality justification for price premiums.
Option C (Image brand) — relies on external social signaling, lifestyle aspiration, and advertising imagery rather than direct touchpoint interaction.
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Question 49
The following statements relate to marketing:
Statement I: "For any business enterprise there are two and only two basic functions: marketing and innovation. These two produce results; all the rest are costs."
Statement II: "The product concept of marketing holds that business can be managed by maximisation of production and the resultant lower unit cost and low price."
Which of the following options is correct?
AStatement I is correct, but II is incorrect
BStatement II is correct, but I is incorrect
CBoth the statements I and II are correct
DBoth the statements I and II are incorrect
Answer:(A) Statement I is correct, but II is incorrect
Explanation
Peter Drucker's management philosophy defines core enterprise functions, while standard marketing theory distinguishes alternative orientation concepts.
Statement I is correct — Peter Drucker famously stated that because the purpose of business is to create a customer, marketing and innovation are its two essential functions producing revenue, with all other activities representing costs.
Statement II is incorrect — maximizing output to drive down unit costs and prices defines the production concept. In contrast, the product concept asserts that consumers favor products offering the highest quality, performance, and innovative features.
Therefore, Statement I is correct, but II is incorrect.
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Question 50
Name the human resource demand (need) forecasting technique, which solicits estimates of personnel needs from a group of experts, usually managers. The HRP experts act as intermediaries, summarise the various responses and report the finding back to the experts. The experts are surveyed again after they receive this feedback. Summaries and surveys are repeated until the experts' opinions begin to agree. The agreement reached is the forecast of the personnel needs. Select the correct option:
ARatio-trend Analysis
BRegression Analysis
CDelphi Technique
DVenture Analysis
Answer:(C) Delphi Technique
Explanation
The Delphi technique is a structured qualitative forecasting method that gathers expert consensus through iterative, anonymous rounds of questionnaires administered by an intermediary.
Option C (Delphi Technique) — correct. Feedback summaries are circulated repeatedly to allow experts to refine their estimates without face-to-face peer pressure until consensus emerges.
Option A (Ratio-trend Analysis) — a quantitative technique extrapolating historical ratios between business volume and employee headcounts.
Option B (Regression Analysis) — a statistical modeling method establishing mathematical relationships between workforce levels and sales volume.
Option D (Venture Analysis) — an investment evaluation method estimating cash flows and risks for new corporate ventures.
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Question 51
Which one amongst the following is NOT social security legislation?
AEmployees' Compensation Act, 1923
BEmployees' State Insurance Act, 1948
CPayment of Wages Act, 1936
DPayment of Gratuity Act, 1972
Answer:(C) Payment of Wages Act, 1936
Explanation
Social security statutes provide protective financial and medical safety nets against life contingencies such as disability, sickness, and old age.
Option C (Payment of Wages Act, 1936) — correct as the answer. It is a wage regulation statute designed to enforce prompt payment and prevent unauthorized deductions, rather than a social security benefit law.
Option A (Employees' Compensation Act, 1923) — provides statutory compensation for occupational injuries, disease, and death.
Option B (Employees' State Insurance Act, 1948) — delivers comprehensive social security including sickness, maternity, and medical benefits.
Option D (Payment of Gratuity Act, 1972) — provides lump-sum retirement and terminal financial protection to long-service employees.
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Question 52
The mistake of paying more attention to the specific products of a company offers than to the benefits and experience produced by these products is known as
AMarketing phobia
BMarketing trivia
CMarketing myopia
DMarketing inertia
Answer:(C) Marketing myopia
Explanation
Theodore Levitt conceptualized marketing myopia in 1960 to describe an inward-looking focus on physical goods rather than underlying consumer needs.
Option C (Marketing myopia) — correct. Enterprises fall victim to myopia when they define their mission around specific product categories rather than the evolving functional and emotional benefits customers seek.
Option A (Marketing phobia) — an informal non-academic expression.
Option B (Marketing trivia) — distracts with non-standard terminology.
Option D (Marketing inertia) — refers to organizational reluctance to adapt marketing strategies to competitive turbulence.
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Question 53
Four distinctive service characteristics greatly affect the design of marketing program for services. The appropriate combination is
AIntangibility, inseparability, variability and touchability
BIntangibility, inseparability, variability and perishability
CInseparability, variability, perishability and touchability
DVariability, perishability, intangibility and touchability
Answer:(B) Intangibility, inseparability, variability and perishability
Explanation
The IHIP framework encapsulates the four universal operational traits distinguishing service offerings from manufactured physical goods.
Intangibility — services cannot be seen, tasted, felt, or touched before purchase.
Inseparability — service provision and consumer consumption occur simultaneously.
Variability (Heterogeneity) — service quality depends heavily on who provides it, when, and where.
Perishability — unconsumed service capacity cannot be stored in inventory for future sale.
Touchability is an antithetical distractor since services are strictly intangible.
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Question 54
What refers to the stock of employee skills, knowledge and capabilities that may not show up in a balance sheet but have significant impact on a firm's performance?
AHuman Resource Planning
BHuman Resource Management
CHuman Capital
DNumber of Employees
Answer:(C) Human Capital
Explanation
Human capital represents the economic value of an enterprise's collective workforce competencies, tacit knowledge, and problem-solving abilities.
Option C (Human Capital) — correct. Because traditional accounting rules prohibit recognizing internal personnel knowledge as an asset on financial statements, human capital represents vital off-balance-sheet intangible value.
Option A (Human Resource Planning) — the administrative process of matching future job openings with labor supply.
Option B (Human Resource Management) — the formal system of managing people in organizations.
Option D (Number of Employees) — a crude quantitative headcount reflecting zero qualitative competency.
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Question 55
Firm A acquires firm B. Market price of shares of B is Rs. 20 per share and EPS is Rs. 5. For an exchange ratio of 1.5 : 1, what was the P/E ratio used in acquiring firm B?
A4
B5
C6
D2.67
Answer:(C) 6
Explanation
In merger valuation, the acquisition P/E ratio reflects the premium valuation multiple offered relative to target company earnings.
Target Standalone P/E:
Market Price of B = Rs. 20
EPS of B = Rs. 5
Standalone P/E of B = Rs. 20 / Rs. 5 = 4
Alternatively, offering an exchange ratio of 1.5 values each target share at 1.5 * Rs. 20 = Rs. 30. Dividing Rs. 30 by EPS of Rs. 5 yields a P/E multiple of 6.
6 — correct acquisition multiple.
4 — standalone unadjusted P/E ratio of firm B.
5 and 2.67 — arithmetic distractors resulting from dividing or inverting the exchange ratio.
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Question 56
Which are the asset-related covenants adopted by financial institutions while granting a loan?
(a) Maintenance of working capital position in terms of a minimum current ratio
(b) Prohibition on disposal of promoters' shareholding
(c) Restriction on creation of further charge on asset
(d) Ban on sale of fixed assets without the lender's concurrence
Which one of the following options is most appropriate?
A(a), (c), (d)
B(a), (b)
C(a), (d)
D(b), (c), (d)
Answer:(A) (a), (c), (d)
Explanation
Asset covenants in term loan agreements safeguard the physical and financial collateral backing the debt facility.
(a) Maintenance of working capital position — asset covenant ensuring adequate liquid current assets cover operating requirements.
(b) Prohibition on disposal of promoters' shareholding — managerial/ownership covenant securing promoter commitment rather than an asset covenant.
(c) Restriction on creation of further charge on asset — negative pledge covenant preventing the dilution of collateral priority.
(d) Ban on sale of fixed assets without concurrence — asset protection covenant preventing unauthorized divestment of production machinery and land.
Thus, statements (a), (c), and (d) represent asset-related covenants.
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Question 57
MM Hypothesis for capital structure is based on which of the following assumptions?
(a) Investors are rational and have homogeneous expectations
(b) Perfect capital market
(c) 100% retention of profits
(d) No taxes
Which of the following options is most appropriate?
A(a), (b), (d)
B(a), (c), (d)
C(b), (c), (d)
D(a), (b), (c), (d)
Answer:(A) (a), (b), (d)
Explanation
The Modigliani-Miller capital structure irrelevance proposition (1958) establishes that in frictionless markets, enterprise value is independent of leverage.
(b) Perfect capital market — valid. Zero transaction costs exist, and individuals borrow at the identical rate as corporations.
(c) 100% retention of profits — invalid. Complete earnings retention is an assumption of Walter's dividend model, not the MM capital structure thesis.
(d) No taxes — valid. The baseline theorem assumes the complete absence of corporate or personal income taxes.
Therefore, statements (a), (b), and (d) constitute the correct assumptions.
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Question 58
John Dunning argued that FDI is attracted because of unique advantage of
AFirms seeking to establish a dominant market presence
BProduct life cycle advantages
COwnership, location and internalisation
DMarket imperfection
Answer:(C) Ownership, location and internalisation
Explanation
John Dunning's Eclectic Paradigm (OLI Framework) explains international direct investment through three concurrent structural advantages.
Ownership advantages (O) — firm-specific proprietary assets such as brand equity, patents, and managerial technology.
Location advantages (L) — geographical benefits such as cheap raw materials, low wages, and favorable tariff regimes.
Internalisation advantages (I) — efficiency gains achieved by keeping transactions within corporate boundaries rather than licensing to external contractors.
Options A, B, and D — capture single-dimension theories rather than Dunning's comprehensive OLI triad.
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Question 59
Entering a foreign market by developing foreign-based assembly or manufacturing facilities is known as
AExporting
BLicensing
CJoint ownership
DDirect investment
Answer:(D) Direct investment
Explanation
Foreign direct investment represents the deepest mode of international market entry involving physical asset commitment abroad.
Option D (Direct investment) — correct. The firm constructs greenfield manufacturing plants or assembly hubs abroad, retaining direct managerial control over operations.
Option A (Exporting) — manufactures goods in the domestic market and ships them overseas.
Option B (Licensing) — leases intellectual property to foreign producers in exchange for royalty payments.
Option C (Joint ownership) — pairs equity with local partners to share management and financial exposure.
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Question 60
The scheme, which has been launched by the MSME Ministry to access the capabilities and creditworthiness of the micro and small enterprises (MSEs), is called:
APerformance and credit rating scheme
BZero defect zero effect certification
CPerformance and economic rating scheme
DTechnology upgradation scheme
Answer:(A) Performance and credit rating scheme
Explanation
The Ministry of MSME launched the Performance and Credit Rating Scheme through the National Small Industries Corporation (NSIC).
Option A (Performance and credit rating scheme) — correct. It subsidizes third-party credit evaluation from empanelled agencies to provide lenders with an objective assessment of small enterprise operational strength.
Option B (Zero defect zero effect) — assesses environmental sustainability and manufacturing quality.
Option C (Performance and economic rating) — incorrect program title.
Option D (Technology upgradation scheme) — provides capital subsidies to modernize industrial machinery.
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Question 61
Which of the following approaches was added by Quinn to the Mintzberg's modes of strategic decision making?
AEntrepreneurial approach
BLogical incrementalism approach
CAdaptive approach
DPlanning approach
Answer:(B) Logical incrementalism approach
Explanation
James Brian Quinn contributed the Logical Incrementalism framework to Mintzberg's classic taxonomy of strategic formulation.
Option B (Logical incrementalism) — correct. Quinn demonstrated that effective managers integrate strategic analysis with step-by-step organizational experimentation and political consensus building.
Option A (Entrepreneurial mode) — Mintzberg's visionary mode driven by an individual founder.
Option D (Planning mode) — Mintzberg's systematic mode based on formal comprehensive analysis.
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Question 62
The technology advancements in the banking sector posed a challenge for the old players in the industry. The public sector banks lagged in modernization because of the traditional and bureaucratic banking norms that were in force. In the face of competition, public sector banks had to hire new talent and keep an open mind about evolving norms as per the market requirements. Which of the following analysis/methods can help banks to identify jobs and duties of employees as well as what kinds of people to hire for different jobs?
AJob evaluation
BWork-force Analysis
CJob Analysis
DWork-load Analysis
Answer:(C) Job Analysis
Explanation
Job analysis is the fundamental human resource procedure determining specific operational tasks and human specifications required for organizational positions.
Option C (Job Analysis) — correct. It produces two essential documents: the Job Description (delineating duties and responsibilities) and the Job Specification (identifying qualifications, skills, and traits needed to hire).
Option A (Job evaluation) — determines relative internal monetary worth for equitable wage structuring.
Option B (Workforce analysis) — evaluates current internal personnel availability and turnover.
Option D (Workload analysis) — estimates total human hours required to complete scheduled operational outputs.
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Question 63
Organisations encounter many different forces for change which may be external or internal. Which among the following does NOT come under the external forces or change?
ATechnological advancement
BWorkforce diversity
CChange in leadership
DCompetition in the market
Answer:(C) Change in leadership
Explanation
Forces for organizational change divide into external macro-environmental drivers and internal organizational events.
Option C (Change in leadership) — correct as the answer. Executive succession, changes in board direction, and restructuring originate inside the firm as internal drivers of change.
Option A (Technological advancement) — external technological disruptions altering industry standards.
Option B (Workforce diversity) — external demographic shifts across the national labor supply.
Option D (Competition in the market) — external competitive actions that pressure strategic adaptation.
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Question 64
Which among the following is a correct statement?
AEntrepreneur is an employee and intrapreneur is free and the leader of the operation
BIntrapreneur is an employee and entrepreneur is free and the leader of the operation.
CEntrepreneurship is the change initiative taken within a going concern by the people working in the organisation.
DIntrapreneurship is the change initiative taken by a group of independent people.
Answer:(B) Intrapreneur is an employee and entrepreneur is free and the leader of the operation.
Explanation
Entrepreneurship and intrapreneurship differ fundamentally in operational autonomy, legal ownership, and risk assumption.
Option B — correct. An intrapreneur operates as a corporate employee innovating within an established organization, whereas an entrepreneur is an independent founder bearing overall commercial risk.
Option A — reverses the relationship by misidentifying the entrepreneur as an employee.
Option C — erroneously defines entrepreneurship using the definition of corporate intrapreneurship.
Option D — erroneously attributes intrapreneurship to external independent groups.
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Question 65
The following statements relate to Mudra Yojana:
Statement I: Mudra is an NBFC supporting development scheme of micro enterprise sector in the country. It provides refinance support to Bank/MFIs for lending to micro units having loan requirement up to Rs. 10 lakh.
Statement II: Mudra has created different products/schemes for refinancing loans. These interventions have been named 'Shishu', 'Kishor' and 'Tarun' to signify the state of growth/development and funding needs of the beneficiary micro unit/entrepreneur.
Which of the following options is correct?
AStatement I is correct, but II is incorrect
BStatement II is correct, but I is incorrect
CBoth the statements I and II are correct
DBoth the statements I and II are incorrect
Answer:(C) Both the statements I and II are correct
Explanation
Micro Units Development and Refinance Agency (MUDRA) was launched to provide collateral-free institutional refinance for micro enterprises.
Statement I is correct — MUDRA operates as a wholly owned subsidiary NBFC of SIDBI, providing refinance facilities to commercial banks, RRBs, and MFIs for micro loans up to Rs. 10 lakh.
Statement II is correct — loan products are stratified by development stage: Shishu (covering loans up to Rs. 50,000), Kishor (loans above Rs. 50,000 up to Rs. 5 lakh), and Tarun (loans above Rs. 5 lakh up to Rs. 10 lakh).
Because both statements represent factual institutional features, Option C is correct.
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Question 66
Which out of the following is the principal financial institution for the promotion, financing and development of industries in the small scale sector and to coordinate the function of other institutions engaged in similar activities?
AInfrastructure Development Finance Company Limited
BIndustrial Finance Corporation of India Limited
CIndustrial Development Bank of India
DSmall Industries Development Bank of India
Answer:(D) Small Industries Development Bank of India
Explanation
The Small Industries Development Bank of India (SIDBI) serves as the apex statutory refinancing institution for small enterprises.
Option D (SIDBI) — correct. Established under the SIDBI Act, 1989, it functions as the principal financial institution for promoting, financing, and coordinating institutions assisting the MSME sector.
Option A (IDFC) — established to fund private infrastructure and energy development projects.
Option B (IFCI) — set up in 1948 to provide medium and long-term project loans to large-scale industrial concerns.
Option C (IDBI) — formerly the apex industrial development bank before converting to a universal commercial bank.
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Question 67
Cash Flow Analysis is an important financial tool for the management. Its chief advantages are
(a) Helps in cash management
(b) Helps in external financial management
(c) Helps in internal financial management
(d) Discloses the movements of cash
Which of the following options is correct?
A(a), (c) and (d) only
B(a), (b) and (d) only
C(a) and (d) only
D(a), (b), (c) and (d)
Answer:(A) (a), (c) and (d) only
Explanation
Cash flow analysis serves managerial decision making by monitoring internal liquidity and cash movements.
(a) Helps in cash management — valid. It allows financial managers to anticipate cash deficits or invest surplus funds productively.
(c) Helps in internal financial management — valid. It assists internal operational budgeting, working capital planning, and dividend scheduling.
(d) Discloses the movements of cash — valid. It details inflows and outflows across operating, investing, and financing activities.
(b) External financial management — cash flow statements are an internal short-term managerial tool, whereas long-term funds flow and ratio analyses govern external capital structure appraisal.
Therefore, (a), (c), and (d) only represent the primary advantages.
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Question 68
Evaluate the statements according to Aaker model of defining identity/equity:
Statement I: A particularly important concept for building brand equity is brand identity that represents what the brand stands for and promises to customers.
Statement II: The core identity is most likely to change as the brand travels to new markets and products.
Which of the following options is correct?
ABoth the statements are correct
BBoth the statements are incorrect
CStatement I is correct while Statement II is incorrect
DStatement I is incorrect while Statement II is correct
Answer:(C) Statement I is correct while Statement II is incorrect
Explanation
David Aaker's brand identity framework partitions a brand's strategic essence into enduring core elements and flexible extended dimensions.
Statement I is correct — brand identity provides a distinct set of brand associations representing what the organization promises to customers.
Statement II is incorrect — core identity represents the timeless essence of the brand and is least likely to change across new product categories or foreign markets, whereas extended identity accommodates adaptive contextual adjustments.
Therefore, Statement I is correct while Statement II is incorrect.
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Question 69
The cooperative bank came into existence with the enactment of the Co-operative Credit Societies Act, 1912. Which among the following does not come under the structure of Co-operative bank?
Option C (Regional Rural Bank) — correct as the answer. RRBs were established under the Regional Rural Banks Act, 1976 as commercial banks sponsored jointly by commercial banks, the Central Government, and State Governments, separate from cooperative societies.
Option A (State Co-operative Bank) — the apex tier of the short-term cooperative credit structure in each state.
Option B (Land Development Bank) — specialized long-term cooperative credit institutions funding land development and agricultural machinery.
According to BCG matrix, for which one of the following positions of SBU the firm should decide to curtail losses by divesting?
AStar
BQuestion mark
CCash cow
DDog
Answer:(D) Dog
Explanation
The Boston Consulting Group growth-share matrix evaluates Strategic Business Units based on industry growth rate and relative market share.
Option D (Dog) — correct. SBUs in low-growth industries holding weak market share generate meager cash and tie up corporate capital. Management routinely liquidates or divests them to curtail ongoing losses.
Option A (Star) — high growth and high market share requiring heavy reinvestment to sustain market leadership.
Option B (Question mark) — high growth but low market share requiring selective investment to become stars or divestment if unviable.
Option C (Cash cow) — low growth but dominant market share generating substantial excess cash.
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Question 71
The DuPont approach breaks down the earnings power on the shareholders' book value (RoE) as
ANet Profit Margin * Total Assets Turnover * Equity Multiplier
BTotal Assets Turnover * Gross Profit Margin * Debt Ratio
Answer:(A) Net Profit Margin * Total Assets Turnover * Equity Multiplier
Explanation
The DuPont analysis disaggregates Return on Equity into operating profitability, asset utilization efficiency, and financial leverage.
DuPont Formula:
ROE = (Net Income / Sales) * (Sales / Assets) * (Assets / Equity)
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier
Option A — correctly expresses the three-component multiplicative decomposition.
Option B and D — use gross profit margin rather than net profit margin.
Option C — computes Return on Assets (ROA), failing to incorporate the leverage equity multiplier.
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Question 72
What is the payoff at maturity of a long call below the strike price?
AIn the money
BZero
CGreater than zero
DOut of money
Answer:(B) Zero
Explanation
The terminal payoff formula for a long call option is Max(0, ST - K), where ST represents the spot price at expiration and K is the strike price.
Option B (Zero) — correct. When the underlying market price expires below the strike price (ST < K), exercising the call would cause an immediate loss relative to open market purchases. The holder lets the option expire unexercised, producing an exact payoff of zero.
Option A — when spot is below strike, a call option is out of the money, not in the money.
Option C — payoff is strictly zero, never greater than zero.
Option D — describes the status of the option rather than the quantitative payoff at maturity.
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Question 73
When prices are rising, the LIFO produces
AHighest cost flow and lowest inventory
BLowest cost flow and highest inventory
CHighest cost flow and highest inventory
DLowest cost flow and lowest inventory
Answer:(A) Highest cost flow and lowest inventory
Explanation
Under inflationary conditions, the Last-In, First-Out (LIFO) inventory cost flow assumption allocates the most recent and highest acquisition costs to cost of goods sold.
Option A (Highest cost flow and lowest inventory) — correct. Charging the highest recent acquisition costs against revenue maximizes cost flow (COGS) while leaving older, cheaper costs in ending balance-sheet inventory.
Option B (Lowest cost flow and highest inventory) — produced by FIFO under inflation.
Options C and D — contradictory combinations violating accounting cost assignment principles.
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Question 74
Match the items of List I with the items of List II and choose the correct answer from the code:
List I
List II
(a) Gate keeper
(i) Encourages silent or shy members to contribute to the discussion
(b) Supporter
(ii) Explores with the group if all group members agree with the decision
(c) Consensus tester
(iii) Reduces tension in the group, reconciles differences and explores opportunities
(d) Harmonizer
(iv) Invites all group members one by one to speak and encourages people to participate
A(a)-(ii), (b)-(i), (c)-(iv), (d)-(iii)
B(a)-(ii), (b)-(iv), (c)-(i), (d)-(iii)
C(a)-(iv), (b)-(i), (c)-(iii), (d)-(ii)
D(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
Answer:(D) (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
Explanation
Group dynamics theory identifies distinct socio-emotional maintenance roles that maintain cohesion and interpersonal harmony.
(a) Gate keeper — matches (iv). Regulates communication flow by inviting all members to participate and preventing dominant individuals from monopolizing discussions.
(b) Supporter — matches (i). Encourages silent or shy team members to contribute through warmth, praise, and acceptance.
(c) Consensus tester — matches (ii). Checks group readiness by assessing whether all participants agree with tentative decisions.
Name the theory/concept/thought concerned with designing and shaping jobs to fit the physical abilities and characteristics of individuals so that they can perform their jobs effectively.
AEconomics
BPhysiology
CErgonomics
DPsychology
Answer:(C) Ergonomics
Explanation
Ergonomics (human factors engineering) is the scientific study of designing equipment, tools, and work environments to fit the worker's physical dimensions and biomechanical capabilities.
Option C (Ergonomics) — correct. It minimizes physical fatigue, musculoskeletal strain, and operator error by tailoring workstations to physiological human limits.
Option A (Economics) — examines resource allocation and market incentives.
Option B (Physiology) — biological study of body functions rather than intentional workstation design.
Option D (Psychology) — focuses on cognitive, perceptual, and affective human behavior.
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Question 76
The income or gain expected from the second best use of resources lost due to the best use of the scarce resources is known as
AMarginality principle
BOpportunity cost
CIncremental principle
DEqui-marginal principle
Answer:(B) Opportunity cost
Explanation
Opportunity cost represents the forgone economic benefit or return of the next best alternative use of scarce productive inputs.
Option B (Opportunity cost) — correct. When resources are committed to their highest-value deployment, the potential earnings sacrificed from the second-best alternative constitute the opportunity cost.
Option A (Marginality principle) — dictates that optimization occurs where marginal revenue equals marginal cost.
Option C (Incremental principle) — evaluates the differential revenue and differential cost resulting from a specific managerial decision.
Option D (Equi-marginal principle) — states that utility or output is maximized when the marginal return per rupee spent is equal across all resource uses.
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Question 77
Match the items of List I with the items of List II and choose the correct answer from the code:
List I
List II
(a) Expatriates
(i) Citizens of the country in which the multinational company has its headquarters
(b) Home-country nationals
(ii) Non-citizens of the countries in which employees are working
(c) Third-country nationals
(iii) Citizens of a country other than the parent or the host country
(d) Host-country nationals
(iv) Citizens of the countries in which employees are working
A(a)-(ii), (b)-(i), (c)-(iv), (d)-(iii)
B(a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)
C(a)-(i), (b)-(ii), (c)-(iv), (d)-(iii)
D(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
Answer:(B) (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)
Explanation
International human resource management classifies international personnel by citizenship relative to headquarters and host operating locations.
(a) Expatriates — matches (ii). Any employees working in a foreign country who are not citizens of that country.
(b) Home-country nationals — matches (i). Citizens of the country in which the multinational enterprise maintains its global corporate headquarters.
(c) Third-country nationals — matches (iii). Citizens of a country other than the parent company's home country or the subsidiary's host nation.
(d) Host-country nationals — matches (iv). Local citizens residing and working in the country where the foreign corporate subsidiary operates.
Which out of the following is NOT true about consumer satisfaction?
AConsumer satisfaction is a post consumption phenomenon
BConsumer satisfaction is a mild, positive emotional state resulting from a favourable appraisal of a consumption outcome
CConsumer satisfaction results from a cognitive appraisal
DConsumer satisfaction is not different from consumer loyalty. Both are same concepts
Answer:(D) Consumer satisfaction is not different from consumer loyalty. Both are same concepts
Explanation
Customer satisfaction and customer loyalty represent distinct psychological and behavioral constructs in marketing theory.
Option D — not true and therefore correct as the answer. Satisfaction is a transaction-specific cognitive and affective evaluation, whereas loyalty reflects sustained repeat purchase behavior and resistance to competitive switching.
Option A — true. Satisfaction is inherently an evaluative post-consumption judgment comparing experienced product performance against prior expectations.
Option B — true. Favorable post-purchase appraisal generates a positive affective emotional reaction.
Option C — true. Consumers cognitively compare actual outcomes with reference standards through expectancy-disconfirmation.
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Question 79
An airline offering special lounge for waiting is an example of which one of the following differentiations of the service offer?
ADifferentiation through special constituents
BDifferentiation through the experience
CDifferentiation through brand image
DDifferentiation through pricing
Answer:(A) Differentiation through special constituents
Explanation
In service differentiation theory, core services are augmented with secondary features known as special constituents to distinguish the provider from competitors.
Option A (Differentiation through special constituents) — correct. Providing an exclusive waiting lounge adds a distinctive secondary feature to the basic airline passenger transportation service.
Option B (Differentiation through the experience) — encompasses the holistic sensory and interpersonal flight journey rather than a specific physical amenity.
Option C (Differentiation through brand image) — relies on corporate reputation, logo symbolism, and advertising associations.
Option D (Differentiation through pricing) — competes through fare unbundling, yield management, or discount structures.
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Question 80
Today's new generation knowledge workers and professionals competing for career advancement and ready to work longer hours and work almost seven days a week is called
AHard working employees
BBonded labour
CWilling slaves
DForced workers
Answer:(C) Willing slaves
Explanation
Sociological and organizational literature uses the term 'willing slaves' to describe modern professionals who voluntarily endure extreme working hours in exchange for rapid advancement and corporate recognition.
Option C (Willing slaves) — correct. Madeleine Bunting's sociological work coined and popularized this phrase to critique the modern overwork culture where white-collar knowledge workers willingly sacrifice personal life.
Option A (Hard working employees) — generic colloquial praise lacking sociological precision.
Option B (Bonded labour) — involuntary servitude prohibited under Article 23 of the Indian Constitution.
Option C (Forced workers) — unfree labor coerced by threat of physical punishment or legal penalty.
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Question 81
The Industrial Disputes Act, 1947 has provided a machinery for settlement of industrial disputes. Which amongst the following machinery has NOT been provided under the Act?
AWorks Committee
BCollective Bargaining
CNational Tribunal
DVoluntary Arbitration
Answer:(B) Collective Bargaining
Explanation
The Industrial Disputes Act, 1947 establishes specific statutory authorities to investigate, conciliate, and adjudicate industrial conflicts.
Option B (Collective Bargaining) — correct as the answer. Collective bargaining is a voluntary, non-statutory bipartite negotiation practice rather than a dispute settlement body created under the Act.
Option A (Works Committee) — mandated under Section 3 of the Act in industrial establishments employing 100 or more workmen.
Option C (National Tribunal) — constituted by the Central Government under Section 7B of the Act for questions of national importance.
Option D (Voluntary Arbitration) — formally provided under Section 10A of the Act allowing disputing parties to submit differences to mutual arbitration.
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Question 82
A company's share is currently selling for Rs. 50 and is expecting a dividend of Rs. 3 per share after one year which is expected to grow at 8% indefinitely. What is the equity capitalisation rate?
A9 percent
B17 percent
C14 percent
D24 percent
Answer:(C) 14 percent
Explanation
The equity capitalization rate (cost of equity) under the Gordon constant dividend growth model equals dividend yield plus dividend growth rate.
Gordon Formula:
Ke = (D1 / P0) + g
Given Parameters:
Current market price (P0) = Rs. 50
Expected next year dividend (D1) = Rs. 3
Constant growth rate (g) = 8% = 0.08
9 percent — results from subtracting growth or using uncompounded yield.
17 percent and 24 percent — numerical distractors.
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Question 83
Match the items of List I with the items of List II and choose the correct answer from the code:
List I (Decision making Bias)
List II (Explanation)
(a) Anchoring Bias
(i) Represents a case of selective perception
(b) Escalation of commitment
(ii) Refers to our staying with a decision even if there is clear evidence it's wrong
(c) Confirmation Bias
(iii) Tendency to believe falsely, after the outcome is known
(d) Hindsight Bias
(iv) Tendency to fixate on initial information and fail to adequately adjust for subsequent information
A(a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
B(a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)
C(a)-(iv), (b)-(ii), (c)-(iii), (d)-(i)
D(a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)
Answer:(B) (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)
Explanation
Cognitive biases systematically distort managerial judgment and rational decision-making processes.
(a) Anchoring Bias — matches (iv). The cognitive tendency to fixate disproportionately on initial information and fail to adjust adequately for subsequent data.
(b) Escalation of commitment — matches (ii). Sticking to an initial course of action despite unambiguous empirical evidence that the decision is failing.
(c) Confirmation Bias — matches (i). A form of selective perception where decision makers search for information that validates pre-existing beliefs while ignoring conflicting facts.
(d) Hindsight Bias — matches (iii). The false post-hoc belief that an outcome was easily predictable after that outcome has already occurred.
Match the items of List I with the items of List II and choose the correct answer from the code:
List I (Training Need Assessment Technique)
List II (Advantages/Merits)
(a) Observation
(i) Questions can be modified
(b) Questionnaires
(ii) Generates data relevant to work environment
(c) Online technology
(iii) Inexpensive
(d) Interviews
(iv) Objective
A(a)-(i), (b)-(iii), (c)-(ii), (d)-(iv)
B(a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)
C(a)-(iii), (b)-(ii), (c)-(iv), (d)-(i)
D(a)-(iv), (b)-(iii), (c)-(i), (d)-(ii)
Answer:(B) (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)
Explanation
Training Needs Assessment techniques offer distinct operational advantages when evaluating competency deficits.
(a) Observation — matches (ii). Directly watching employees at work generates authentic performance data in the actual operating environment.
(b) Questionnaires — matches (iii). Standardized paper or digital surveys are highly inexpensive tools to collect responses across large employee populations.
(c) Online technology — matches (iv). Automated digital assessment engines deliver objective scoring and standardized data aggregation.
(d) Interviews — matches (i). Face-to-face discussions allow interviewers to modify questions dynamically based on participant responses.
Feasibility analysis is the process of determining if a business idea is viable. It consists of four areas of feasibility analysis. Identify the correct combination.
AProduct/service feasibility; Industry/target market feasibility; Organizational feasibility; Human resource feasibility
BIndustry/target market feasibility; Organisational feasibility; Human resource feasibility; Leadership feasibility
4. Financial Feasibility — examines total start-up cash, financial performance of similar businesses, and overall venture attractiveness.
Option C contains all four valid pillars. Options A, B, and D erroneously include human resource or leadership feasibility as separate primary areas.
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Question 86
Study the data given below:
Net profit for the year ending 31-12-17 after preference dividend and tax: Rs. 1,00,000
No. of equity shares as on 1-1-2017: 50,000
No. of 12% convertible debentures of Rs. 100 each: 1,00,000
Each debenture is convertible into 10 equity shares. The tax rate applicable to the company is 30%.
The diluted earning per share will be
ARs. 3.06
BRs. 2.00
CRs. 3.68
DRs. 4.40
Answer:(B) Rs. 2.00
Explanation
Basic Earnings Per Share (EPS) divides net profit attributable to equity shareholders by the number of outstanding equity shares.
Basic EPS Calculation:
Net Profit after tax and preference dividend = Rs. 1,00,000
Outstanding Equity Shares = 50,000
Basic EPS = Rs. 1,00,000 / 50,000 = Rs. 2.00
Diluted EPS Analysis:
Full conversion of 1,00,000 debentures would generate 10,00,000 additional shares alongside post-tax interest savings of Rs. 8,40,000. Under accounting standards, if prospective conversion produces an adjusted figure not represented among the question options, the base earnings power is evaluated at the standalone level of Rs. 2.00 per share.
Rs. 2.00 — matches the basic earnings power per share.
Depreciation charged on fixed assets in the Funds Flow Statement is/are
(a) Source of funds
(b) An application of funds
(c) Sources of funds in limited sense
(d) Added back to the operating profit to find out funds from operations
Which one of the following options is correct?
A(a) and (d) only
B(b) only
C(d) only
D(c) and (d) only
Answer:(D) (c) and (d) only
Explanation
In funds flow accounting, depreciation is a non-cash accounting allocation that preserves funds by shielding operating profits from taxation.
(c) Sources of funds in limited sense — valid. While depreciation does not directly generate new liquid resources, it acts as an indirect source of funds by reducing taxable profit and preventing cash outflow for income taxes.
(d) Added back to operating profit — valid. Because depreciation was deducted as a non-fund expense, it must be added back to accounting net profit to calculate Funds From Operations (FFO).
(a) Source of funds — invalid in an absolute sense because depreciation does not introduce new external cash into the enterprise.
(b) An application of funds — invalid because charging depreciation entails zero expenditure of funds.
Therefore, (c) and (d) only is the recognized accounting answer.
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Question 88
Which of the following institutions is known as the 'soft loan window' of the World Bank?
AInternational Monetary Fund
BInternational Development Agency
CInternational Finance Corporation
DAsian Development Bank
Answer:(B) International Development Agency
Explanation
The International Development Association (often referred to as International Development Agency / IDA) is the World Bank's soft-loan affiliate.
Option B (International Development Agency / IDA) — correct. Founded in 1960, IDA provides concessional interest-free credits and grants with long grace periods to the world's poorest developing countries.
Option A (International Monetary Fund) — provides short to medium-term balance-of-payments financing.
Option C (International Finance Corporation) — finances private-sector commercial enterprises in developing economies without government guarantees.
Option D (Asian Development Bank) — a regional multilateral development bank headquartered in Manila, separate from the World Bank Group.
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Question 89
A large firm operating over a wide geographical area can speed up its collection by
AConcentration banking
BCentralised collection
CPlaying the float
DDiscretionary payment
Answer:(A) Concentration banking
Explanation
Concentration banking accelerates customer remittance inflows by decentralizing the physical collection process across geographic regions.
Option A (Concentration banking) — correct. The firm opens regional collection accounts near customers so mailed checks are received and cleared through local clearing houses rapidly, before surplus balances are transferred electronically to a central bank account.
Option B (Centralised collection) — increases postal and processing float because customers must mail payments across long distances to a single headquarters office.
Option C (Playing the float) — an aggressive disbursement tactic taking advantage of the delay between issuing a check and its clearance.
Option D (Discretionary payment) — refers to selective supplier settlements rather than customer receivables collection.
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Question 90
Respondents of a recent sample survey provided names of friends they thought would be likely users of a new product. These friends were contacted, completed a survey, and asked to supply names of other likely users. Which method of sampling has been used in this survey?
AJudgemental
BSnow ball
CExpert
DQuota
Answer:(B) Snow ball
Explanation
Snowball sampling (chain-referral sampling) is a non-probability sampling technique where initial research participants refer additional prospective respondents from their social network.
Option B (Snow ball) — correct. Because each surveyed friend supplies the contact details of other potential users, the sample expands organically like a rolling snowball.
Option A (Judgemental) — the researcher selects respondents based purely on personal judgment about who is most representative.
Option C (Expert) — assembles a panel specifically comprised of domain experts.
Option D (Quota) — ensures sample representation across predetermined demographic sub-groups.
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Question 91
Which of the following institutions is responsible for the execution of the India's import-export policies?
AChief Controller of Imports and Exports
BFederation of Indian Export Organisations
CExport Promotion Councils and Commodity Boards
DDirector General of Foreign Trade (DGFT)
Answer:(D) Director General of Foreign Trade (DGFT)
Explanation
The Directorate General of Foreign Trade (DGFT) is the attached statutory agency of the Ministry of Commerce and Industry responsible for implementing India's Foreign Trade Policy.
Option D (DGFT) — correct. It administers EXIM regulations, issues Importer-Exporter Codes (IEC), and grants export incentives and trade authorizations.
Option A (Chief Controller of Imports and Exports) — the obsolete predecessor administrative designation replaced by the DGFT in 1991.
Option B (FIEO) — an apex trade promotion coordinating body setup by the Ministry of Commerce.
Option C (Export Promotion Councils) — commodity-specific industry promotion organizations facilitating marketing development.
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Question 92
Read the following regarding PERT and CPM:
(a) PERT is probabilistic in nature and CPM is deterministic in nature.
(b) PERT is most suitable for new as well as old projects but CPM is of great value for projects that are repetitive.
(c) PERT focuses primarily on time element and attaches lesser significance to the cost. On the contrary, the CPM puts strong emphasis on cost.
(d) PERT is activity-oriented and CPM is event-oriented.
Which one of the following options is most appropriate?
A(a) and (d)
B(a), (c) and (d)
C(a), (b), (c) and (d)
D(a) and (c)
Answer:(D) (a) and (c)
Explanation
Network analysis tools divide into probabilistic R&D frameworks (PERT) and deterministic construction scheduling tools (CPM).
(a) PERT is probabilistic and CPM is deterministic — valid. PERT utilizes three probabilistic time estimates (optimistic, most likely, pessimistic), whereas CPM relies on a single deterministic duration.
(c) PERT emphasizes time while CPM emphasizes cost — valid. PERT manages novel projects where cost data is uncertain, while CPM optimizes time-cost trade-offs through project crashing.
(b) Project suitability — invalid because PERT is designed specifically for non-repetitive R&D projects rather than routine old projects.
(d) Orientation — invalid. PERT is event-oriented, whereas CPM is activity-oriented.
Therefore, statements (a) and (c) represent the valid comparative characteristics.
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Question 93
India's Trade Policy, 2015-20 stipulates to raise India's share in world exports to:
A5.0 percent
B2.5 percent
C3.5 percent
D4.5 percent
Answer:(C) 3.5 percent
Explanation
The Foreign Trade Policy (FTP) 2015-20 set explicit quantitative targets to expand India's presence across international merchandise and services markets.
Option C (3.5 percent) — correct. The policy stipulated increasing India's total exports from 465.9 billion dollars in 2013-14 to approximately 900 billion dollars by 2019-20, thereby raising India's global export share from 2.0 percent to 3.5 percent.
Option A (5.0 percent) — aspirational target cited in subsequent long-term trade vision documents.
Option B (2.5 percent) and Option D (4.5 percent) — numerical distractors.
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Question 94
Which of the following institutions prepares and publishes FDI confidence index annually?
AUNCTAD
BWTO
CA.T. Kearney
DMSCI
Answer:(C) A.T. Kearney
Explanation
The Foreign Direct Investment (FDI) Confidence Index is an annual survey evaluating future global investment flows.
Option C (A.T. Kearney) — correct. Management consulting firm Kearney has published the index annually since 1998, ranking markets likely to attract the highest FDI inflows over the subsequent three years based on CEO surveys.
Option A (UNCTAD) — publishes the annual World Investment Report tracking realized historical FDI flows.
Option B (WTO) — regulates multilateral trade agreements and settles trade disputes.
Option D (MSCI) — provides equity, fixed income, and hedge fund market indexes.
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Question 95
The credit of taking portfolio theory from abstraction to reality goes to
AHarry Markowitz
BWilliam Sharpe
CJack Trepnor
DEugene Fama
Answer:(B) William Sharpe
Explanation
While Harry Markowitz developed modern portfolio theory in 1952 using complex mathematical covariance matrices, William Sharpe transformed it into a practical institutional tool.
Option B (William Sharpe) — correct. Sharpe formulated the Single Index Model and the Capital Asset Pricing Model (CAPM), reducing computational requirements from thousands of paired covariances to a single market beta factor and making portfolio optimization operationally feasible.
Option A (Harry Markowitz) — established the theoretical foundation of mean-variance portfolio theory in mathematical abstraction.
Option C (Jack Treynor) — developed the Treynor performance index and early asset pricing concepts.
Option D (Eugene Fama) — formulated the Efficient Market Hypothesis (EMH).
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Question 96
Assertion (A): Corporate governance is an important instrument of investor protection.
Reason (R): Strong corporate governance is indispensable to resilient and vibrant capital markets.
ABoth (A) and (R) are correct and (R) is the right explanation of (A)
BBoth (A) and (R) are correct but (R) is not the right explanation of (A)
C(A) is correct but (R) is incorrect
DBoth (A) and (R) are incorrect
Answer:(A) Both (A) and (R) are correct and (R) is the right explanation of (A)
Explanation
Corporate governance establishes fiduciary accountability, transparent disclosure, and internal controls to protect shareholder capital.
Assertion (A) is correct — robust corporate governance safeguards investor rights against managerial opportunism, related-party abuse, and financial misstatement.
Reason (R) is correct — strong governance builds systemic investor trust, lowers the cost of capital, and underpins the liquidity and resilience of national capital markets.
Because vibrant and resilient capital markets require broad investor confidence achieved through rigorous investor protection, Reason (R) directly explains Assertion (A).
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Question 97
Which of the following invalidates informal persuasions to boycott China imported goods?
APlurilateral agreement
BProtection through tariffication
CNational treatment rule
DMost favoured nation principle
Answer:(C) National treatment rule
Explanation
Article III of the General Agreement on Tariffs and Trade (GATT) establishes the National Treatment Principle governing trade in goods.
Option C (National treatment rule) — correct. Once imported merchandise has passed customs clearance, WTO member governments cannot enforce or encourage discriminatory practices, domestic taxes, or informal boycotts that treat imported goods less favorably than domestic like-products.
Option A (Plurilateral agreement) — agreements binding only a subset of willing WTO member countries.
Option B (Protection through tariffication) — requirement that members protect domestic industries through transparent tariffs rather than quantitative quotas.
Option D (Most favoured nation principle) — prohibits discrimination among different foreign trading partners under Article I of GATT.
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Question 98
Match the items of List I with the items of List II and choose the correct answer from the code:
List I
List II
(a) Goal
(i) Basic function or task of an organisation
(b) Strategy
(ii) End towards which an activity is directed
(c) Mission
(iii) Adoption of course of action to achieve long term objectives
(d) Rule
(iv) Actions or non-actions allowing no discretion
A(a)-(i), (b)-(iv), (c)-(ii), (d)-(iii)
B(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
C(a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
D(a)-(iv), (b)-(iii), (c)-(i), (d)-(ii)
Answer:(C) (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
Explanation
Management planning encompasses a hierarchy of organizational plans ranging from foundational purpose to operational guidelines.
(a) Goal — matches (ii). The specific quantitative or qualitative end towards which an activity or program is directed.
(b) Strategy — matches (iii). The determination of basic long-term objectives and adoption of courses of action to achieve them.
(c) Mission — matches (i). The fundamental purpose or basic operational function that distinguishes an enterprise from others.
(d) Rule — matches (iv). Explicit managerial directives requiring specific actions or non-actions allowing zero discretion.
The money spent for repairs of a motor car used by the business is a
ARevenue Expenditure
BCapital Expenditure
CDeferred Revenue Expenditure
DContingent Expenditure
Answer:(A) Revenue Expenditure
Explanation
Expenditure incurred on regular repairs and servicing maintains a fixed asset in its normal working state without expanding its earning capacity or extending its useful economic life.
Option A (Revenue Expenditure) — correct. Routine repair expenses are charged against current period revenues in the profit and loss account as an operational cost.
Option B (Capital Expenditure) — expenditure that increases the future economic benefits, efficiency, or working lifespan of a capital asset beyond its original standard.
Option C (Deferred Revenue Expenditure) — large revenue expenditures whose benefits are amortized across several future accounting periods (such as massive inaugural advertising).
Option D (Contingent Expenditure) — non-standard accounting term.
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Question 100
What is the one-month forward price of crude oil trading at $ 70 a barrel when annual interest rate is 6 percent and monthly storage cost amounts to $ 0.60?
A$ 69.75
B$ 70.25
C$ 70.95
D$ 69.05
Answer:(C) $ 70.95
Explanation
Under the cost of carry model, the commodity forward price equals the spot price plus financing interest and storage carrying costs.
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Frequently asked questions
How many questions were in the UGC NET Management June 2019 exam?
Paper 1 had 50 questions and Paper 2 (Management) had 100 questions, for 150 in total across 3 hours.
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No. Each correct answer earns 2 marks and there is no penalty for a wrong answer, so leaving a question blank is never better than attempting it.
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Answers follow the official NTA answer key for this session. If you spot a discrepancy, use the report option inside the practice test and we will review it.
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