Multiple Choice Questions (MCQs)

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1   Which of the following is not a basic function of the management process?
    (A)   Controlling
    (B)   Organizing
    (C)   Working
    (D)   Leading

2   In line organization, who is responsible for final result?
    (A)   The worker
    (B)   The Superior authority
    (C)   The managers
    (D)   The foreman

3   Which of the following is not the advantages of a public limited company?
    (A)   Quick Formation
    (B)   Large Capital
    (C)   Professional Management
    (D)   Limited Liability

4   Which of the following is not the responsibility of a production manager?
    (A)   Quality
    (B)   Quantity
    (C)   Storage of goods
    (D)   Controlling accidents

5   In partnership, the partners have unlimited liability, is it true or false?
    (A)   TRUE
    (B)   FALSE
    (C)   Partly True
    (D)   Partly False

6   What happens in fatal accident?
    (A)   Hospitalization
    (B)   Fractures
    (C)   Disablement
    (D)   Death

7   —– is a factor influencing requirements of fixed capital?
    (A)   capitalization
    (B)   Nature of business
    (C)   higher operating efficiency
    (D)   none of above

8   Which one of the following is not a major section in cash budget?
    (A)   Receipts Section
    (B)   Disbursements section
    (C)   Financing Section
    (D)   Capital section

9   Which one of the following is not a tax charged by the central Government?
    (A)   Income Tax
    (B)   Customs duties
    (C)   Wealth tax
    (D)   Stamp duty

10   Service tax is applicable to the whole of India except the state
    (A)   Goa
    (B)   Assam
    (C)   Jammu and Kashmir
    (D)   Punjab

11   What are the various costs involved in material management?
    (A)   Procurement costs
    (B)   Inventory carrying costs
    (C)   Total cost
    (D)   a and b both

12   One of the functions of MRP
    (A)   Forecast of material
    (B)   Reducing waste
    (C)   Economy in buying
    (D)   all of the these

13   Which one of the following can be an ERP module?
    (A)   Human resource
    (B)   sales and marketing
    (C)   Finance
    (D)   all of the above

14   An activity under quality assurance:
    (A)   process control
    (B)   Continuous improvement
    (C)   benchmarking
    (D)   none of above

15   Which one of the following benefits the customer due to TQM?
    (A)   Greater satisfaction
    (B)   less number of problems
    (C)   Customer empowerment
    (D)   Both ‘A’ and ‘B’

16   Old Indian textile industry was predominantly —– based.
    (A)   Polyester
    (B)   Cotton
    (C)   Synthetic Textile
    (D)   Blended Fabrics

17   Which one of the following categories of chemical industry has smallest volume?
    (A)   Basic Chemicals
    (B)   Life Sciences
    (C)   Specialty Chemicals
    (D)   Consumers Products

18   Esprit de Corps means —–.
    (A)   Coordination
    (B)   Principle of management
    (C)   Name of the company
    (D)   Management concept in

19   Aim of Departmentation is to —–.
    (A)   Distribute the work
    (B)   Make people specialized
    (C)   Give freedom for each
    (D)   All of above

20   Which statement about cooperative society is wrong?
    (A)   Works on democratic principal
    (B)   Membership is voluntary
    (C)   Ownership is in the hands of the Government
    (D)   It is private ownership

21   Week as per Factory Act is a period between two —–.
    (A)   Mondays
    (B)   Saturdays
    (C)   Sundays
    (D)   Thursdays

22   According to Factory Act, drinking water must be away from latrine by —–
    (A)   12
    (B)   3
    (C)   6
    (D)   9

23   Working capital is also called as —–.
    (A)   Fixed capital
    (B)   Floating capital
    (C)   Blocked capital
    (D)   Circulating capital

24   1) VAT is not simple and transparent 2) VAT is progressive form of Sales tax.
    (A)   Both 1 & 2 are correct
    (B)   Both 1 & 2 are wrong
    (C)   1 correct & 2 wrong
    (D)   1 wrong & 2 correct

25   Material planning is based on data from —–.
    (A)   Sales Department
    (B)   Production Department
    (C)   Purchase Department
    (D)   All

26   Holding cost is also known as —–.
    (A)   Receiving Cost
    (B)   Carrying cost
    (C)   Production cost
    (D)   Design cost

27   In ABC analysis which one is incorrect about ‘A’ items
    (A)   Most important
    (B)   Tightly controlled inventory items
    (C)   Weekly control statement
    (D)   Insignificant items

28   Which one of the following is one of the aspects of TQM?
    (A)   Quality aspect
    (B)   Continuous improvement
    (C)   Customer satisfaction
    (D)   Product aspect

29   Six Sigma implies that —–.
    (A)   A statistical method
    (B)   A trouble shooting method
    (C)   Teams are effective
    (D)   3.4 defects per million

10   Which one of the following is a benefit of the Kaizen?
    (A)   Improved efficiency
    (B)   Improved Safety
    (C)   Employee Satisfaction
    (D)   All of these

31   Classification of industry based on
    (A)   Area of work
    (B)   Kind of ownership
    (C)   Both(i) and (ii)
    (D)   None of the above

32   SEZ policy announced in
    (A)   2000
    (B)   1999
    (C)   2001
    (D)   2002

33   Getting the things done through others is called
    (A)   Direction
    (B)   Adjustment
    (C)   Organization
    (D)   Management

34   First step in planning is
    (A)   Establish goals
    (B)   Identify resources
    (C)   Prioritize goals
    (D)   Establish tasks

35   What is Esprit De Corps?
    (A)   It is a function of management
    (B)   It is a principle of management
    (C)   It is management concept in Russia
    (D)   It is a name of company

36   Achievement due to one will be shared by all others, this happens in
    (A)   General partnership
    (B)   Limited partnership
    (C)   Both(i) and (ii)
    (D)   None of the above

37   About budget, which statement is wrong
    (A)   It is not time bound
    (B)   Quantity of money is the
    (C)   It defines policies
    (D)   It is prepared before the

38   Following is not concerned with material management
    (A)   MRP
    (B)   SAP
    (C)   ERP
    (D)   5’S’

39   QA is
    (A)   Quality Administration
    (B)   Quality Affiliation
    (C)   Quality Assurance
    (D)   Quality Action

40   In ABC Analysis, Items that are extremely inexpensive or have low demand are termed as
    (A)   A Items
    (B)   B Items
    (C)   C Items
    (D)   D Items

41   Tax to be paid by manufacturer of goods/commodities/products to government is
    (A)   Custom Duty
    (B)   Excise Duty
    (C)   Income Tax
    (D)   VAT

42   Which of the following is/are objectives of materials management?
    (A)   To reduce material cost
    (B)   To purchase materials at lowest cost
    (C)   To minimize investment related to inventories
    (D)   All of the Above

43   A financial statement showing assets and liabilities of company at any given time is known as
    (A)   Profit & Loss Statement
    (B)   Balance Sheet
    (C)   Budget
    (D)   Capital

44   The Stock of goods in hand at the beginning of the year is known as
    (A)   Sales
    (B)   Closing Stock
    (C)   Opening Stock
    (D)   none of these

45   Which of the following is not an example of fixed capital?
    (A)   Payment of employee wages
    (B)   Land
    (C)   Building
    (D)   Machinery

46   Which of the following is external source of capital?
    (A)   Retained Earnings
    (B)   Depreciation Provisions
    (C)   Share Capital
    (D)   Deferred taxation

47   Safety promotes —–
    (A)   Sales
    (B)   Productivity
    (C)   Profit
    (D)   Research

48   Which Act safeguards interest of workers engaged in factory
    (A)   Indian Factory Act
    (B)   Workmen’s Compensation
    (C)   Minimum Wages Act
    (D)   Industrial Dispute Act

49   Accidents happen in industry because of –
    (A)   Workers
    (B)   Management
    (C)   Design of working place
    (D)   All of the Above

50   BSNL is a
    (A)   Public Limited company
    (B)   Joint Stock Company
    (C)   Private Limited company
    (D)   none of these

51   Line organization is characterized by
    (A)   Simple, easy & Flexible structure
    (B)   Clear & Simple division of authority
    (C)   No working confusions
    (D)   All of the Above

52   see if her department met the target, she is performing which of the following functions?
    (A)   Planning
    (B)   Controlling
    (C)   Organizing
    (D)   Directing

53   A force that causes & inspires an individual to behave in a specific way and to increase his performance is called as
    (A)   Motivation
    (B)   Teamwork
    (C)   Quality
    (D)   Satisfaction

54   Which of the following function of management involves measuring & comparing current performance against the established standards?
    (A)   Planning
    (B)   Controlling
    (C)   Organizing
    (D)   Directing

55   Planning may fail because of
    (A)   Incomplete knowledge of
    (B)   Absence of data analysis
    (C)   Unrealistic nature of plan
    (D)   All of the Above

56   Administration is activity in organization
    (A)   Top Level
    (B)   middle lever
    (C)   Lower Level
    (D)   Upper middle Level

57   Which of the following is NOT the advantage of Globalization?
    (A)   Increased free trade between nations
    (B)   Information & Money is flowing more rapidly
    (C)   Over use & heavy dependence on communication Media & IT Services
    (D)   Transportation of people & goods became & easy

58   Travel & tourism business comes under
    (A)   Service Industry
    (B)   Manufacturing Industry
    (C)   Trade Sector
    (D)   none of these

59   IT Enabled services (ITES) includes
    (A)   Call centers
    (B)   BPO
    (C)   LPO
    (D)   All of the Above

60   Which of the following includes monitoring & controlling of banking &financial systems throughout India?
    (A)   SEBI
    (B)   RBI
    (C)   IDBI
    (D)   NABARD

61   In quality circle Participation of employees in the group is —–
    (A)   Voluntary without any compulsion or Pressure
    (B)   Non-Voluntary
    (C)   Randomly
    (D)   None of these

62   First Preference in TQM is given to —–
    (A)   The customers
    (B)   Continuous Improvement
    (C)   Zero Defects
    (D)   Training & Development

63   Inspection assures that —–
    (A)   The process is in control
    (B)   Workers are motivated
    (C)   Product meets Specification
    (D)   Quality Problems are Solved

64   Commerce is also called as —–.
    (A)   Service
    (B)   Manufacturing
    (C)   Trade
    (D)   All of above

65   Out of the following which is not the function of management
    (A)   Decision making
    (B)   Coordinating
    (C)   Reporting
    (D)   None of above

66   From the options given below, who belongs to the lower level of management?
    (A)   Clerks
    (B)   Supervisors
    (C)   Data entry operators
    (D)   All of above

67   Which is the appropriate reason of failure of good plan?
    (A)   Insufficient data
    (B)   Lack of knowledge
    (C)   Over confidence
    (D)   All of above

68   Determine objectives and goals is —– step in the process of organizing.
    (A)   first
    (B)   second
    (C)   third
    (D)   last

69   Identify the levels of management with respect to the position held by the different persons in organization.
    (A)   1- Top management, 2-Middle management, 3- Lower management
    (B)   1- Vertical management, 2-Middle management, 3- Horizontal management
    (C)   1- High management, 2-Centre management, 3- Low management
    (D)   1- Up management, 2-Centre management, 3- Down management

70   Which is the disadvantage of co-operative society?
    (A)   Beneficial to common man
    (B)   Members are involved in decision making
    (C)   Straightens rural economic
    (D)   None of these

71   Security of job is maximum in —–.
    (A)   Partnership
    (B)   Public sector
    (C)   Joint Stock companies
    (D)   Co-operative societies

72   According to Factory Act, an ambulance room should be provided by every factory if the number of workers is more than —–.
    (A)   500
    (B)   300
    (C)   400
    (D)   450

73   —– takes in account only those cost, e.g., direct labour and material, which vary with output and over which the department has control
    (A)   Fixed budget
    (B)   Variable budget
    (C)   Functional budget
    (D)   All of the above

74   —– capital is that amount of capital which must be in cash or current asset for continuing the activities of business.
    (A)   Gross working
    (B)   Net working
    (C)   Permanent working
    (D)   Temporary working

75   Which of the following is not correct assumption in calculating EOQ?
    (A)   The ordering cost is constant
    (B)   The ate of demand/consumption does not change
    (C)   The lead time is not fixed
    (D)   items do not change with quantity i.e.; no discount is available

76   Each event of ordering has a certain cost associated with it called —–.
    (A)   procurement cost
    (B)   carrying cost
    (C)   holding cost
    (D)   purchasing cost

77   ABC analysis divides an organization on hand inventory into three classes based upon:
    (A)   annual consumption value
    (B)   annual consumption
    (C)   unit price
    (D)   the number of units on hand

78   Pick the false statement about ERP vendors.
    (A)   They have been slow to develop offerings related to e-commerce.
    (B)   They have a huge installed base of customers.
    (C)   They are now shifting gears to develop applications for good electronic commerce websites.
    (D)   They have a virtual stranglehold on “back- office” functions such as order fulfillment.

79   An effective QMS focuses on —–
    (A)   systematically developing and communicating a customer – focus mission, strategies and action plans
    (B)   listening and responding to the customers‟ needs and expectation
    (C)   continuously improve and increase their satisfaction with their process and environment
    (D)   gathering and analyzing key performance indicators to improve organizational and process result

80   5S was developed in Japan and stands for the Japanese words Seiri, Seiton, Seiso, Seiketsu, and Shitsuke. The English equivalent of 5S is –
    (A)   structurize, systemize, sanitize, standardize, self-discipline
    (B)   systemize, sanitize, standardize, self-discipline, structurize
    (C)   sanitize, standardize, self- discipline, structurize, systemize
    (D)   self-discipline, structurize, systemize, sanitize, standardize

81   Statement 1: The organization must establish, document, implement and maintain documented procedures for its internal audit, corrective and preventive action processes, among others Statement 2: This is a requirement of ISO9001:2000
    (A)   The first statement is true, but the second statement is false
    (B)   The first statement is false, but the second statement is true
    (C)   Both statements are true, and the second statement explains the first statement.
    (D)   the second statement does not provide an adequate explanation for the first statement.

82   Manufacturing is —–.
    (A)   completing demand
    (B)   production of merchandize
    (C)   gaining profit
    (D)   None of above

83   —– is described as willing exchange of goods.
    (A)   Service
    (B)   Manufacturing
    (C)   Trade
    (D)   All of above

84   The Indian Textile industry was predominantly —– based during post-independence.
    (A)   Wool
    (B)   Cotton
    (C)   polymers and plastics
    (D)   Fabrics

85   The functions of middle level management are
    (A)   Giving recommendations to top management
    (B)   Interpretation of policies framed by top management
    (C)   Framing rules and regulations to be followed by lower-level management
    (D)   All of above

86   Among the given options who are designated as members of middle level of management?
    (A)   Senior Managers
    (B)   Junior Managers
    (C)   Supervisors
    (D)   All of above

87   Comparing actual performance with the standard is —– steps in process of directing.
    (A)   first
    (B)   second
    (C)   third
    (D)   last

88   these basic steps: (1) identifying the problem; (2) identifying resources and constraints, (3) generating alternative solutions, (4) evaluating alternatives, (5) selecting an alternative, (6) implementing the alternative, and (7) monitoring the alternative
    (A)   Directing
    (B)   Controlling
    (C)   Decision making
    (D)   Coordinating

89   Bank of Maharashtra, Bata India Ltd, Bharat fertilizers Ltd etc., are which types of companies?
    (A)   Government departments
    (B)   Public companies
    (C)   Public corporations
    (D)   All of the above

90   Crèches should be provided when there are more than —– female workers having children of age below —– years.
    (A)   100, 6
    (B)   25, 6
    (C)   25, 9
    (D)   30, 6

91   —– is prepared to co-ordinate between various budget.
    (A)   Master budget
    (B)   Sales budget
    (C)   Production budget
    (D)   Material budget

92   Which of the following is function of financial management?
    (A)   Keep a check and control over the expenditure
    (B)   Periodically evaluate the progress of each department
    (C)   Determine the financial of the organization after analyzing efficiency
    (D)   Fix product price giving due consideration to profit optimization

93   What is the total amount of liabilities from this balance sheet?
    (A)   22290
    (B)   120140
    (C)   225770
    (D)   Nil

94   Instead of each department having its own database of information, —– puts all of the information into a single place
    (A)   MRP
    (B)   MPS
    (C)   BOM
    (D)   ERP

95   —– is the process of planning, procuring, storing and providing the appropriate material of the right quality, right quality at the right place in the right time.
    (A)   Financial management
    (B)   Materials management
    (C)   Operation management
    (D)   Marketing management

96   —– is just a transaction and is basic activity of purchase
    (A)   Purchasing
    (B)   Placement
    (C)   Procurement
    (D)   Purchase order

97   From the EOQ, label the cost at point 1 and 2.
    (A)   (1) Ordering cost (2) Storage cost
    (B)   (1) Storage cost (2) Ordering cost
    (C)   (1) Inventory cost (2) Ordering cost
    (D)   (1) Ordering cost (2) Inventory cost

98   Which statement about kaizen is wrong?
    (A)   It needs heavy investment
    (B)   It gives commitment to
    (C)   It is a Japanese technique
    (D)   It is a continuous

99   SME’s stands for —–.
    (A)   Small and Medium sized enterprises
    (B)   Small and Medium sized entity
    (C)   Small and Medium sized enrollment
    (D)   Small and Medium sized effects

100   —– is popularly known as the Silicon Valley of India and IT capital of India.
    (A)   Mumbai
    (B)   Hyderabad
    (C)   Bengaluru
    (D)   Kolkata

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