Multiple Choice Questions (MCQs)

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1   In an organization which of following group is not present
    (A)   Labour working on a site
    (B)   Employees doing discussion in work area
    (C)   Meeting members in a company
    (D)   Group of 15 people on bus stop

2   Which of the following statement is wrong?
    (A)   Organization has no boundaries
    (B)   It has aims and objectives
    (C)   Organization is a group of working people
    (D)   Organization is a system

3   Which of following is not objective of financial management?
    (A)   Profit maximization
    (C)   Wealth maximization
    (D)   To ensure safe working condition
    (B)   To ensure regular and adequate supply of funds

4   The capital required for a business is —–
    (A)   Fixed capital
    (B)   Working capital
    (C)   Both (A) and (B)
    (D)   None

5   Following fig. refers to:
    (A)   Balance sheet
    (B)   Profit and loss sheet
    (C)   Budget sheet
    (D)   Master Sheet

6   Which of the following is advantage of ABC ANALYSIS? —–
    (A)   ABC analysis results in reduction of annual inventory cost
    (B)   Importance to components which are critical for production
    (C)   Cannot be used if some of the items are scarce and are not readily available
    (D)   All of the above

7   EOQ is a formula that determines the ———–at which the combination of procurement costs and inventory carrying costs are least.
    (A)   Quality
    (B)   Cost
    (C)   Profit
    (D)   Quantity

8   Procurement costs:
    (A)   They increase as quantity ordered increases
    (B)   They decrease as quantity ordered decreases
    (C)   They decrease as quantity ordered increases
    (D)   None of the above

9   Quality consists of ——- to satisfy wants.
    (A)   Capacity
    (B)   Control
    (C)   Quantity
    (D)   Arrangement

10   Process employed to ensure a certain level of quality in a product or service is
    (A)   Quality audit
    (B)   5s
    (C)   Quality control
    (D)   Quality circle

11   AGM stands for
    (A)   Actual General Member
    (B)   Annual General Meeting
    (C)   Annual Great Meeting
    (D)   Annual General Member

12   Finished goods means goods waiting for dispatched to:
    (A)   Customer
    (B)   Supplier
    (C)   A and B
    (D)   None of the above

13   Which of the following is in significant item?
    (A)   A items
    (C)   B items
    (D)   C items
    (B)   None of the above

14   Which of the following would represent an organizations Fixed Assets
    (A)   Fixtures & Fittings
    (B)   Cash at the Bank
    (C)   Debtors
    (D)   Retained Profit

15   Which of the following is/are Current Liabilities of the organization?
    (A)   Motor Vehicles
    (B)   Debtors
    (C)   Creditors
    (D)   Share Capital

16   Gross Profit is the difference between?
    (A)   Sales Revenue & Opening Stock
    (B)   Purchases & Closing Stock
    (C)   Sale Revenue & Cost of Goods Sold
    (D)   Sales Revenue & closing Stock

17   Maslow’s motivation theory is on the basis of human —–
    (A)   Satisfaction
    (B)   Needs
    (C)   Maintenance factors
    (D)   Rewards

18   Goal or target to be achieved is known as ——
    (A)   Objective
    (B)   Schedules
    (C)   Procedures
    (D)   Budgets

19   The chain of superiors from the highest authority to the lowest level in the organization is —–
    (A)   Unity of direction
    (B)   Unity of command
    (C)   Centralization
    (D)   Scalar chain

20   An identified group of people contributing their efforts towards the attainment of goals is called an
    (A)   Organization
    (B)   Business
    (C)   Management
    (D)   Department

21   Exchange of ideas, opinions, information etc. between two or more persons is —–
    (A)   Planning
    (B)   Organizing
    (C)   Communication
    (D)   Staffing

22   India is awarded a certification of—–free country.
    (A)   Cancer
    (B)   Polio
    (C)   Swine flu
    (D)   AIDs

23   Excess inventory may lead to:
    (A)   Profit
    (C)   Loss
    (D)   Funds
    (B)   Less space

24   When we order and receive well in company it will include
    (A)   Procurement cost
    (B)   Inventory cost
    (C)   Holding cost
    (D)   None of the above

25   Following are the principles of …..1) Customer focus 2) Leadership 3) Involvement of people 4) Process approach
    (A)   ERP
    (B)   Organization
    (C)   ISO: 9001
    (D)   EOQ

26   —– industries are known as sunshine sector of Indian economy
    (A)   Chemical
    (B)   Information technology
    (C)   Agricultural
    (D)   Process

27   The purpose of business according to Drucker is
    (A)   To get money
    (B)   To acquire success in market
    (C)   To satisfy customer
    (D)   To create and keep customers

28   Which of the following is an example of a physical aspect of globalization?
    (A)   Data travelling through computer networks
    (B)   Television signals broadcast by satellite
    (C)   Goods being transported across borders
    (D)   The imagery of global brands

29   The———– process transform plans in to reality.
    (A)   Planning
    (B)   Organizing
    (C)   Directing
    (D)   All of above

30   The right of a person to give instructions to his subordinates is known as —-
    (A)   Responsibility
    (B)   Authority
    (C)   Accountability
    (D)   Line authority

31   Supply of human and material resources that helps to achieve the objective of business is
    (A)   Planning
    (B)   Organization
    (C)   Management
    (D)   Control

32   The process of dividing the large monolithic functional organization into small and flexible administrative units is called ——
    (A)   Staffing
    (B)   Delegation
    (C)   Departmentation
    (D)   Control

33   An environmental factor for accidents in industry is ——
    (A)   Absence of proper protecting devices
    (C)   Daydreaming
    (D)   Improper ventilation
    (B)   Protruding nails

34   As per Factories Act, “—–” of a factory means the person who has the ultimate control over the affairs of the factory.
    (A)   Manager
    (B)   Owner
    (C)   Director
    (D)   Occupier

35   Which of the following is the obligation imposed by Factories Act upon the employer with respect to his workers?
    (A)   Health
    (B)   Safety
    (C)   Welfare
    (D)   All the above.

36   XYZ company has to appoint —–if an organization is engaging 500 or more employees
    (A)   Safety committee
    (B)   Welfare officer
    (C)   Plant committee
    (D)   Safety officer

37   The function of financial management is —–
    (A)   Record keeping
    (B)   Profit maximization
    (C)   Management of cash flow
    (D)   All of the above

38   Debentures ——
    (A)   Form the capital of the company
    (B)   Fixed rate of interest is paid on debentures
    (C)   It is the credit money of the company
    (D)   None of the above

39   The summary of an organizations assets and Liabilities at a particular point in time is called?
    (A)   Trading Account
    (B)   Profit & Loss Account
    (C)   Balance Sheet
    (D)   Trade Balance

40   Which one of the following cannot be found in the Profit & Loss Account?
    (A)   Depreciation of Motor Vehicles for the year
    (B)   Telephone Expenses
    (C)   Sales Goods returned
    (D)   Wages/Salaries

41   An organization which produces DVD recorders has a Fixed Cost of Rs. 30,000. If the selling price is Rs. 350 each and Variable Costs are Rs. 100 per unit what is the number of units needed to reach the Break-Even point?
    (A)   80
    (B)   120
    (C)   250
    (D)   300

42   To preparation of ABC analysis First step is
    (A)   Preparation of list of all
    (B)   Determine unit price
    (C)   Get annual consumption
    (D)   None of the above

43   Which of the following is the name given to a bill of lading where goods have been received by a carrier free of defects?
    (A)   Shipped bill of lading
    (C)   Clause bill of lading
    (D)   Ordinary bill of lading
    (B)   Clean bill of lading.

44   Which of the following categories of materials handling equipment does a counterbalanced type‟ belong to?
    (A)   Gravity Conveyor
    (B)   Fork lift Trucks
    (C)   Picking Robot
    (D)   Warehouse Trolley

45   Warehouses and stockyards are two types of storage facilities. Which of the following is the most appropriate factor to consider in the design of a stockyard?
    (A)   Structure
    (B)   Services
    (C)   Surface
    (D)   Shelving

46   Process flow chart helps to explain
    (A)   Process steps and their relationship
    (B)   Cost of quality
    (C)   A clause in ISO: 9001
    (D)   Customer complaints

47   Name the curve shown in fig.
    (A)   Normal distribution curve
    (B)   Six sigma curve
    (C)   Normal curve
    (D)   Sigma curve

48   Quality is the relative term and is used with reference to –
    (A)   Product
    (B)   Quantity
    (C)   ERP
    (D)   MRP

49   It is the series of the quality management system standards created by the international organization for standardization
    (A)   ERP
    (B)   ISO 9001
    (C)   EOQ
    (D)   5S

50   Classification of material as per their values and usage comes under
    (A)   TQM
    (B)   ABC analysis
    (C)   ERP
    (D)   None of the above

51   Which of the following statements is wrong?
    (A)   Fixed assets are used over and over again for numbers of years
    (B)   The capital invested in assets of durable nature for repeated use of long period is called fixed capital
    (C)   Both
    (D)   None

52   Which of the following is the wrong statement about capital?
    (A)   It is needed to expand the business
    (B)   It is needed to start the business
    (C)   It is needed to run the business
    (D)   None of the above

53   Fixed capital is not required for
    (A)   Land
    (C)   Building
    (D)   Equipment and machinery
    (B)   Cash to be maintained in emergency

54   Fixed capital can be financed through
    (A)   Shares
    (B)   Long term debentures
    (C)   Loan from banks
    (D)   All of the above

55   Employer has to do compensation in which of the following cases
    (A)   Injury caused by accident
    (B)   Injury caused during employment
    (C)   Death after accident
    (D)   All of the above

56   Which of the following statements is wrong?
    (A)   Control is concentrated at the centre
    (B)   Centralization gives power in the hands of center
    (C)   Controlled by a central authority
    (D)   Centralization always considers local issue

57   Urban co-operative bank refers to which of the following company type-
    (A)   Single Ownership
    (B)   Public ltd
    (C)   Partnership Company
    (D)   Co-operative company

58   Which is the last need in Maslow need hierarchy?
    (A)   Social
    (B)   Physiological
    (C)   Safety
    (D)   Self actualization

59   What is the next function after planning?
    (A)   Decision making
    (B)   Organizing
    (C)   Staffing
    (D)   Scheduling

60   Banks are regulated by
    (A)   SBI
    (B)   RBI
    (C)   CBI
    (D)   FBI

61   Liberalization, Privatization and Globalization (LPG) increases –
    (A)   Employment opportunity
    (B)   Foreign Investment
    (C)   Competition
    (D)   All of the above

62   Excise duty is the amount of duty paid on —–of goods.
    (A)   Sales
    (B)   Production
    (C)   Trading
    (D)   Excise

63   Which one of the following is not a personal protective device?
    (A)   Hand gloves
    (C)   Helmet
    (D)   Goggles
    (B)   Pullover

64   Following business pattern do not come under service industry.
    (A)   IT
    (B)   Banking
    (C)   Real Estate
    (D)   Textile Mill

65   Too little inventory increases the risk of:
    (A)   Out of stock condition
    (B)   More stock
    (C)   Theft
    (D)   Can’t Predict

66   Kaizen is the name given by:
    (A)   Chinese
    (B)   Japanese
    (C)   Korean
    (D)   Thai

67   Meeting goals can increase:
    (A)   Needs
    (B)   Safety
    (C)   Competition
    (D)   Motivation

68   Food, Water, Sleep, Clothes, and an acceptable temperature are all examples of:
    (A)   Physiological Need
    (B)   Safely Needs
    (C)   Competence Needs
    (D)   Social Needs

69   The motivators are guided by:
    (A)   Motivation
    (B)   Need
    (C)   Satisfaction
    (D)   None

70   —–make products, from raw materials or component parts, which they then sell at a profit.
    (A)   Service providers
    (B)   Manufacturers
    (C)   Traders
    (D)   None

71   How do traders make profit?
    (A)   In the form of commission
    (B)   In the form of loans
    (C)   In the form of shares
    (D)   In the form of debentures

72   What is the main stay of Indian economy?
    (A)   Agriculture
    (B)   Chemicals
    (C)   Engineering
    (D)   Textile industry

73   Indian IT companies are not working in the —–business.
    (A)   Telecom
    (C)   Service
    (D)   Software
    (B)   Product development

74   Out of following which is the first activity in organizing?
    (A)   Assigning the activities to manager
    (B)   Grouping of activities
    (C)   Delegation of authority to managers
    (D)   Identifying the activities

75   They expect less but contribute more this happens in which phase?
    (A)   Social needs
    (B)   Safety needs
    (C)   Self actualization
    (D)   Esteem needs

76   Project organization is a —–organization structure.
    (A)   Temporary
    (B)   Permanent
    (C)   Annual
    (D)   Quarterly

77   —–is a voluntary organization formed to serve the members and the welfare of society.
    (A)   Company
    (B)   Co-operative society
    (C)   Public limited company
    (D)   None of the above

78   In a tall organization structure, the span of control is —–
    (A)   Big
    (B)   Wide
    (C)   Narrow
    (D)   Small

79   —–is a source of working capital.
    (A)   Loans from commercial banks
    (B)   Public deposits
    (C)   Debenture
    (D)   Subcontracting

80   Tools, lubricants, cutting fluids are —–.
    (A)   Indirect materials
    (B)   Finished goods
    (C)   Work in progress
    (D)   None of the above

81   —–helps managers to have selective control and focus attention only on important items
    (A)   EOQ
    (B)   ABC analysis
    (C)   Inventory
    (D)   None of the above

82   The —–provides the information about when to order and how much to order.
    (A)   MRP
    (B)   ERP
    (C)   EOQ
    (D)   Inventory

83   In kaizen the role of an employee is —–
    (A)   To establish at the corporate level
    (C)   To implement the process
    (D)   To implement in the functional area
    (B)   To participate

84   In line organization authority flows from—–?
    (A)   Top to bottom
    (B)   Bottom to top
    (C)   Both a & b
    (D)   None of these

85   An accident means unforeseen—–sudden mishap?
    (A)   Uncontrolled
    (B)   Controlled
    (C)   Semi controlled
    (D)   All above

86   Material Management is an—–activity?
    (A)   Integrated
    (B)   Isolated
    (C)   Both a & b
    (D)   None of these

87   The term Inventory management means—–?
    (A)   Short list of items
    (B)   Detailed list of items
    (C)   List of important items
    (D)   None of these

88   TQM stands for—–?
    (A)   Total Quality management
    (B)   Total Quantity management
    (C)   Both a and b
    (D)   None of these

89   KAIZEN theory uses—–theory?
    (A)   5S
    (B)   6S
    (C)   7S
    (D)   4S

90   6-Sigma is a—–method used for improvement?
    (A)   Statistical
    (B)   Mathematical
    (C)   Both a and b
    (D)   None of these

91   For creating Departments—–methods are used?
    (A)   By Region
    (B)   By Market
    (C)   Customer
    (D)   All above

92   If the capital in a business provided by one or two persons in the form of Shares with legal entity then it is called as—–?
    (A)   Joint stock co.
    (B)   Partnership co.
    (C)   Public limited co.
    (D)   None of these

93   To achieve the vision of an organization—–management works?
    (A)   Upper level
    (C)   Middle level
    (D)   Lower level
    (B)   Both A & B

94   Brainstorming is used by the management for:
    (A)   Work allocation on the shop floor.
    (B)   Generating alternative for problem solving
    (C)   The promotion of research and development
    (D)   Training employees

95   Analysis of causes of deviation is a part of —–Process
    (A)   Motivation
    (B)   Teamwork
    (C)   Controlling
    (D)   Leadership

96   Hospitality industry is mainly dependent on —–industry
    (A)   Tourism
    (B)   Agro
    (C)   Textile
    (D)   Process

97   Products are produced from raw materials by using engineering technology and —–
    (A)   Tools
    (B)   Equipments
    (C)   Machinery
    (D)   Money

98   Service sector has occupied —–of GDP (Gross Domestic Product)
    (A)   0%
    (B)   1%
    (C)   2%
    (D)   10%

99   —–department will be dedicated for safety related work only
    (A)   Production
    (B)   Safety
    (C)   Sales
    (D)   Accounting

100   Relationship between employer & employees is very important for the development & —–of any organization.
    (A)   Growth
    (B)   Stability
    (C)   Increment
    (D)   Survival

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