Multiple Choice Questions (MCQs)

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1   Name the two segments of engineering sector.
    (A)   Heavy and light
    (B)   Civil and mechanical
    (C)   Electronics and telecommunication
    (D)   None of above

2   Different types of Process Industry
    (A)   General
    (B)   Chemical
    (C)   Heat
    (D)   All of above

3   Which type of industries involves large investment and a high level of automation process?
    (A)   Village
    (C)   Small scale
    (D)   Large Scale
    (B)   Medium Scale

4   Assigning each group according to the similar activities to be performed, to manager with the necessary authority to supervise them is called —–
    (A)   Planning
    (B)   Organizing
    (C)   Controlling
    (D)   Decision making

5   Out of the following options given below, which does not imply to equity?
    (A)   Equal wages
    (B)   Dignity
    (C)   Fair
    (D)   Good work culture

6   —– is accountability, which is an obligation of a subordinate to his/her boss to perform the assign work.
    (A)   Authority
    (B)   Responsibility
    (C)   Communication
    (D)   All of the above

7   For product type departmentation, which statement is incorrect?
    (A)   People become expert in the work allotted to them
    (B)   Product become name brand name
    (C)   Attention is given to the product
    (D)   No duplicate of work

8   —– is concerned with procurement, allocation and control of financial resources of a firm.
    (A)   Financial management
    (B)   Material management
    (C)   Personnel management
    (D)   Operation management

9   —– are expenses done for raising funds for running
    (A)   Financial expenses
    (B)   Purchases
    (C)   Sales
    (D)   Office administrative

10   A —– or flexible budget recognized the unreliability of income or sales prediction and makes provision in advanced for variation in production and expenditure in accordance with variations in sales
    (A)   Fixed budget
    (B)   Variable budget
    (C)   Functional budget
    (D)   All of the above

11   Consider the following two statements. (1) Preference shares normally offer investors a lower level of risk than loan capital. (2) Preference shares are not normally given voting rights. Which ONE of the following combinations relating to the above statements is correct?
    (A)   True (2) True
    (B)   True (2) False
    (C)   False (2) True
    (D)   False (2) False

12   The Bill of materials provides
    (A)   A product structure (tree)
    (B)   List of what is needed for each component, sub-assembly and assembly
    (C)   A and B both
    (D)   None

13   Whenever a department needs an item, it is officially brought to the notice of the purchasing department by filing a purchase requisition from. The next step is —–
    (A)   Exact quantity of material to be purchased and its specification is decided
    (C)   Prepare a list of suppliers who deal with the business of the articles to be purchasing and are reliable
    (D)   Pen the quotations at prescribed time on the prescribed date
    (B)   Prepare a comparative statement of the, terms and conditions mentioned in the quotation and then analyze them

14   Identify the system, which show the essential elements used in Master Production Schedule as its basis for any material control system.
    (A)   MRP
    (B)   ERP
    (C)   EOQ
    (D)   ABC

15   Six-sigma aims at improving processes and producing goods with zero defects and thus helps in improving productivity. (a) DMAIC and (b) DMADV are the two methods to achieve this goal, from the figure and given options select the appropriate last two steps for both the methods.
    (A)   Implement, Control (b) Design, Verify
    (B)   Design, Verify (b) Implement, Control
    (C)   Implement, Verify (b) Design, Control
    (D)   Verify, Implement (b) Design, Control

16   The goals of the Enterprise are fulfilled through the use of resources like
    (A)   Man
    (B)   Machine
    (C)   Material
    (D)   All of the Above

17   GATT was superseded by WTO in
    (A)   1994
    (B)   1998
    (C)   2000
    (D)   2005

18   The success of any project depends upon-
    (A)   Planning
    (B)   Organizing
    (C)   Directing
    (D)   All of the Above

19   Planning Means
    (A)   Thinking before doing
    (B)   Thinking after doing
    (C)   Thinking during doing
    (D)   All of the Above

20   Which is the Smart technique that allows everybody to do the job as per their Skills or Specialization?
    (A)   Division of work
    (B)   Authority & Responsibility
    (C)   Discipline
    (D)   All of the Above

21   Bata India Limited is a form of –
    (A)   Government Department
    (B)   Public Companies
    (C)   Public Corporations
    (D)   All of the Above

22   In which of organization the sub-ordinates receive orders from their immediate
    (A)   Line organization
    (B)   Line & Staff organization
    (C)   Functional Organization
    (D)   Product organization

23   Allotting right work to the right person means.
    (A)   Delegation of Authority
    (C)   Responsibility
    (D)   Effective Delegation
    (B)   All of the Above

24   The risk is very high in
    (A)   Partnership
    (B)   Joint stock company
    (C)   Proprietorship
    (D)   All of the Above

25   According to factory Act which of the following comes under health provision?
    (A)   Fencing of Machinery
    (B)   Cleanliness
    (C)   Safety guards
    (D)   None of the above

26   Collapse of crane is a cause of accident, under which type of accidents does it
    (A)   Mechanical Cause of
    (B)   Natural Cause of Accident
    (C)   Human Error
    (D)   All of the Above

27   Which type of capital is used for all the current assets (Possession or Property?)
    (A)   Gross Working Capital
    (B)   Net Working Capital
    (C)   Permanent Working Capital
    (D)   Temporary Working Capital

28   The Tax which is paid by Individual to the central Government of India is
    (A)   Direct Tax
    (B)   Indirect Tax
    (C)   Service Tax
    (D)   Income Tax

29   Which is a part of Material Management?
    (A)   Inventory Management
    (B)   Marketing Management
    (C)   Both A & B
    (D)   None

30   The assumption made in EOQ is that
    (A)   Lead time is know & is constant
    (B)   Total cost is constant
    (C)   Primary cost is constant
    (D)   All of the Above

31   The major advantage of MRP is
    (A)   Frequent Material Shortage
    (B)   Conflicts among employees
    (C)   Minimizing Unnecessary Inventory Investment
    (D)   High Investment in unnecessary Inventory

32   Sales & Marketing is module of
    (A)   ERP
    (B)   MRP
    (C)   MPR
    (D)   None

33   The activities that ensures right material at right quantity and right in time
    (A)   Purchase Department
    (C)   Marketing Department
    (D)   Design Department
    (B)   All of the Above

34   Objective of quality circle is –
    (A)   That the defective products should not reach to customers.
    (B)   Take different measures to ensure or improve the quality standard of product.
    (C)   To improve quality, Productivity, safety and reduce the cost
    (D)   None of these

35   Important themes in six sigma are-
    (A)   Discontinuous focus on the customer’s requirements
    (B)   Study of variation in the production process and other business processes
    (C)   Discontinuous striving for perfection
    (D)   All of these

36   Measurement Analysis and Improvement clause of ISO 9001:2000 ……………
    (A)   The organization must take care of the conformity of the product / service.
    (B)   Includes controlling of monitoring and measuring devices in an organization
    (C)   Covers the overall monitoring, measurement, analysis and improvement of QMS
    (D)   Covers monitoring of information that depicts the customer satisfaction

37   The two types of trade are —– and —–
    (A)   Direct, indirect
    (B)   Bilateral, multilateral
    (C)   Internal, external
    (D)   Local, global

38   Textile industry does not produce
    (A)   Polythene
    (B)   Cotton
    (C)   Wool
    (D)   Jute

39   Business is the process of providing platform to the people to exhibit their —– and —– skills.
    (A)   Technical, economical
    (B)   Thinking, mental
    (C)   Technical, managerial
    (D)   All of above

40   Administration is concerned with the determination or planning of corporate policy whereas management is concerned with the execution or implementation of policy within the limits set is stated by —–
    (A)   Oliver Sheldon
    (B)   Henry Fayol
    (C)   F. W. Taylor
    (D)   Peter Drucker

41   Remuneration of personnel is the principle based on —– principles.
    (A)   F.W. Taylor
    (B)   Henry Fayol
    (C)   Peter Drucker
    (D)   Mary Follet

42   Organizing facilitate —–
    (A)   Effective management
    (B)   Delegation of authority
    (C)   Performance of employees
    (D)   All of above

43   The objectives of planning is to —–
    (A)   Increase productivity
    (C)   Decrease overload of work
    (D)   Maintain standards
    (B)   Increase productivity, decrease overload of work and maintain standards

44   In an education institute, the people who belong to the three different levels of management are:
    (A)   Board of Trustees (2) Principal of college (3) Teachers
    (B)   Board of Trustees (2) HOD (3) Teachers
    (C)   Board of Trustees (2) Principals, HOD’s (3) Teachers
    (D)   Principal (2) HOD’s (3) Teachers

45   Which is the aim of departmentation?
    (A)   To make people specialized
    (B)   To distribute work
    (C)   To give freedom to each function
    (D)   All of the above

46   Which statement is false about partnership?
    (A)   It is a joint business
    (B)   Business life is depend of partners
    (C)   There is limited liability
    (D)   No transfer of partnership

47   With —–, the top management can focus on strategic issues for finding new avenues and opportunities.
    (A)   Authority
    (B)   Responsibility
    (C)   Centralization
    (D)   Decentralization

48   The structure of Rubber Department shows the hierarchy level along with their executives. It has which type of Organizational structure?
    (A)   Line organization
    (B)   Line and Staff organization
    (C)   Project Organization
    (D)   Functional Organization

49   A labour welfare officer is appointed in the factory as per factory act when there are minimum workers.
    (A)   100
    (B)   300
    (C)   500
    (D)   1000

50   —– is a financial statement that summarized a company’s assets, liabilities and shareholder equity at a specific point in time.
    (A)   Balance sheet
    (B)   Budget
    (C)   Profit and loss
    (D)   Account

51   Preparation of budget forecasts the future of the departments and company and due consideration is given on the basis of period, functions and flexibility. Identify the different types of budgets according to their scope of use:
    (A)   Period (2) Capacity (3) Coverage
    (B)   Capacity (2) Period (3) Coverage
    (C)   Period (2) Coverage (3) Capacity
    (D)   Coverage (2) Capacity (3) Period

52   —– is a list of component part and sub-assemblies needed to produce the final product.
    (A)   MPS
    (B)   MRP
    (C)   BOM
    (D)   ERP

53   Objectives of inventory management includes —– objectives.
    (A)   Financial
    (C)   Property protection
    (D)   Operational
    (B)   Financial, operative and property protection

54   The important functions of purchase departments are —–
    (A)   Preparation of purchasing budget
    (B)   Track pending purchase order
    (C)   Issue and follow up purchase order
    (D)   Preparation of purchase budget, track pending purchase order, issue and follow up purchase order

55   The master production schedule is a list of:
    (A)   What end products are to be produced?
    (B)   How many of each product is to be produced?
    (C)   When the products shall be ready for shipment?
    (D)   All of the above

56   The process or approach as seen in the figure, attempts to consolidate all of a company’s departments and functions into a single computer system that services each department’s specific needs. Identify the system.
    (A)   MRP
    (B)   MRP-II
    (C)   ERP
    (D)   EOQ

57   Quality is fitness for —–
    (A)   Use
    (B)   Action
    (C)   Product
    (D)   Business

58   A well organized working place results more efficient and more productive operation: is the principle of —–
    (A)   Kaizen
    (B)   5 S
    (C)   TQM
    (D)   Six sigma

59   Select the correct functional role of (1) Planning system (2) Standard and process improvement system (3) Monitoring and evaluation system from the given QMS structure:
    (A)   System for ensuring the quality, consistency and continuity of strategies, programs and projects. (2) Mechanism for continuous review, enhancement of system. (3) Quality control and adjustment mechanisms to ensure efficiency and assurance of results.
    (B)   Quality control and adjustment mechanisms to ensure efficiency and assurance of results. (2) System for ensuring the quality, consistency and continuity of strategies, programs and projects. (3) Mechanism for continuous review, enhancement of system.
    (C)   Quality control and adjustment mechanisms to ensure efficiency and assurance of results. (2) Mechanism for continuous review, enhancement of system. (3) System for ensuring the quality, consistency and continuity of strategies, programs and projects.
    (D)   System for ensuring the quality, consistency and continuity of strategies, programs and projects. (2) Quality control and adjustment mechanisms to ensure efficiency and assurance of results. (3) Mechanism for continuous review, enhancement of system.

60   First nationalization of 14 banks happened in —–
    (A)   1969
    (B)   1976
    (C)   1950
    (D)   1991

61   Following is not the chemical industry
    (A)   Polymer
    (B)   Petrochemical
    (C)   Paints
    (D)   Sugar

62   To start with enthusiasm is called as
    (A)   Initiative
    (B)   Dynamism
    (C)   Leadership
    (D)   Management

63   To start with enthusiasm is called as
    (A)   Initiative
    (C)   Dynamism
    (D)   Leadership
    (B)   Management

64   Employees get energized due to
    (A)   Controlling
    (B)   Planning
    (C)   Motivation
    (D)   Decision- making

65   Functional organization is also called as
    (A)   Line organization
    (B)   Staff organization
    (C)   Project organization
    (D)   None of above

66   Basic aim of the government sector is
    (A)   Earning profit
    (B)   Earning fame
    (C)   Providing service to society
    (D)   None of above

67   Highest business secrecy is in
    (A)   Partnership
    (B)   Government sector
    (C)   Proprietorship
    (D)   Co-operative society

68   Unlimited liability is present in
    (A)   Proprietorship
    (B)   Partnership
    (C)   Both a & b
    (D)   None of above

69   Who can be responsible for accident?
    (A)   Worker
    (B)   Management
    (C)   Working Conditions
    (D)   All the above

70   As per factory act; one first aid box is provided for —– workers.
    (A)   100
    (B)   200
    (C)   150
    (D)   250

71   Budget is the financial plan for
    (A)   Next year
    (B)   Last year
    (C)   Running year
    (D)   None of above

72   Buffer stock is nothing but
    (A)   New stock
    (B)   Safety stock
    (C)   Confused Inventory
    (D)   Unnecessary stock

73   A type of items has —– importance due to consumption.
    (A)   10-20%
    (C)   15-25%
    (D)   40-50%
    (B)   70-80%

74   Quality management is not focusing on
    (A)   Money
    (B)   Quality
    (C)   Improvements
    (D)   Productivity

75   Sustain in 5S is
    (A)   Shitsuke
    (B)   Seiri
    (C)   Seiso
    (D)   Seiketsu

76   HDFC Bank is a ………
    (A)   Public sector bank
    (B)   Private sector bank
    (C)   Foreign bank
    (D)   Co-operative bank

77   Deciding in advance what to do, how to do and when to do is………
    (A)   Decision -making
    (B)   Organizing
    (C)   Planning
    (D)   Motivating

78   The assignment of each grouping to a manager with the authority necessary to supervise it’, is called as…..
    (A)   Controlling
    (B)   Organising
    (C)   Staffing
    (D)   Planning

79   Scalar Organisation is also known as
    (A)   Line organisation
    (B)   Project organisation
    (C)   Staff organisation
    (D)   Functional organisation

80   Highest control of government is there in
    (A)   Government department
    (B)   Public corporation
    (C)   Public company
    (D)   Public Limited company

81   Co-ordination in an organisation means: 1. complete control of the activities of the employees 2. To structure harmony among different units of the organization 3. Removal of conflict and overlapping in the organization
    (A)   Code 1 & 2
    (B)   Code 1 & 3
    (C)   Code 2 and 3
    (D)   Code 1, 2 &3

82   Statement 1- Shareholders are owners of the company. Statement 2 – Debenture holders are creditors of the company.
    (A)   Both 1 and 2 are wrong
    (B)   1 is correct, 2 is wrong
    (C)   Both 1 and 2 are correct
    (D)   1 is wrong, 2 is correct

83   —— is the collective stock of items which is required for routine functioning of industry
    (A)   Purchase
    (C)   Inventory
    (D)   Tool room
    (B)   Vendor

84   Ups and Downs in consumption and delivery period are absorbed by
    (A)   Buffer stock
    (B)   EOQ
    (C)   Procurement strategy
    (D)   ERP

85   In purchasing, DGSD belongs to
    (A)   Director General of Supplies and Disposals
    (B)   Defined Goods for Supply and Dispatch
    (C)   Division General of Sales and Distribution
    (D)   Director General of Supply and Distribution

86   Statement 1- ERP gives transparency. Statement 2- Repetition of work is avoided due to ERP
    (A)   Both 1 and 2 are correct
    (B)   Both 1 and 2 are wrong
    (C)   1 is correct, 2 is wrong
    (D)   1 is wrong, 2 is correct

87   ERP software provides:
    (A)   A system to capture and make data available in real time
    (B)   A capacity to assess the feasibility of a proposed plan
    (C)   A set of tools for planning and monitoring processes to achieve goals of the organisation
    (D)   Option A & C

88   Traders make profit in form of ——
    (A)   Loans
    (B)   Commissions
    (C)   Shares
    (D)   None of above

89   —— and —— are produced in largest quantity in chemical
    (A)   Soda and soap
    (B)   Cosmetics and paper
    (C)   Polymers and plastics
    (D)   Soaps and detergents

90   Insurance company is categorized as
    (A)   Life Insurance
    (B)   General Insurance
    (C)   All of above
    (D)   None of above

91   Scalar chain is the —–, which runs from top level to the lower level in the organization.
    (A)   Line of authority
    (B)   Plane of authority
    (C)   Path of authority
    (D)   Authority

92   SMART stands for ——
    (A)   Achievable, realistic, timely specific, measurable,
    (B)   Accountable, realistic, timely specific, moveable,
    (C)   Achievable, realistic, timely specific, moveable,
    (D)   Accountable, realistic, timely specific, measurable,

93   Which is not the type of the joint stock company?
    (A)   Public sector
    (C)   Public limited company
    (D)   Private limited company
    (B)   None

94   Biotechnology Information System, Network department of Consumer Affairs, and Department of Education etc, are which types of companies?
    (A)   Government departments
    (B)   Public companies
    (C)   Public corporations
    (D)   All of the above

95   Public deposit is the source of finance for……………………….
    (A)   Joint stock company
    (B)   Cooperative society
    (C)   Partnership
    (D)   Proprietorship

96   If the factory employs more than 500 workers, it should appoint a qualified —– to carry out the prescribed duties.
    (A)   Safety officer
    (B)   Welfare officer
    (C)   Security officer
    (D)   None of these

97   Ensuring the safety, health and welfare of the employees is the primary purpose of the-
    (A)   Factories Act
    (B)   Industrial Disputes Act
    (C)   Workman Compensation Act
    (D)   Minimum Wages Act

98   —– represents the quantities of the materials to be purchased and the estimated costs of the material
    (A)   Sales budget
    (B)   Production budget
    (C)   Purchase budget
    (D)   Materials budget

99   Which is the objective of financial management?
    (A)   Profit maximization
    (B)   Wealth maximization
    (C)   To ensure regular and adequate supply of funds
    (D)   All of above

100   Tax includes the current tax as well as —– Tax.
    (A)   Income
    (B)   Expenses
    (C)   Excise
    (D)   Deferred

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