Multiple Choice Questions (MCQs)

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1   —– is recruitment of right people at right place in an organization
    (A)   Planning
    (B)   Organizing
    (C)   Staffing
    (D)   Controlling

2   —– was main contributor in the scientific school
    (A)   Frank Gilbreth
    (B)   Peter Drucker
    (C)   Frederick Taylor
    (D)   Henry Fayol

3   —– has to be maintained in an organization while treating the employees
    (A)   Scalar Chain
    (B)   Order
    (C)   Equity
    (D)   Unity of Command

4   The managers working at middle level —– manages the whole organization and reach to the goal defined by top management.
    (A)   Strategically
    (B)   Tactically
    (C)   Operationally
    (D)   All of the above

5   —– stands for granting of authority to subordinates to accomplish or perform a particular assignment while operating within pre-decided limits and standards established
    (A)   Delegation of Authority
    (B)   Responsibility
    (C)   Effective Delegation
    (D)   Accountability

6   —– are private and mainly created for providing the different services to the individual as well as society.
    (A)   Private Undertaking
    (B)   Partnership
    (C)   Joint Stock Companies
    (D)   Cooperative Organizations

7   In —– minimum members involved are 2 and maximum are 50
    (A)   Joint Stock Private Limited Stock company
    (B)   Joint Stock Public Limited Company
    (C)   Co-operative Organization
    (D)   Private Undertaking

8   —– are public welfare Department, Department of Human Resource Development etc.
    (A)   Government departments
    (B)   Public Companies
    (C)   Public Corporations
    (D)   Private Undertaking

9   Tsunami is an
    (A)   Accident because of human beings
    (B)   Accident because of Management
    (C)   Accident because of bad weather
    (D)   Accident because of Natural Disasters

10   —– is universal lubricant which keeps enterprise dynamic
    (A)   Capital
    (B)   Finance
    (C)   Budget
    (D)   VAT

11   The —– is an accounting and a taxation term
    (A)   Retained Earnings
    (B)   Depreciation Provisions
    (C)   Deferred Taxation
    (D)   All of the Above

12   Suggest the appropriate types of sources for Middle Term Capital
    (A)   Trade credit, Bank Credit
    (B)   Equipment Leasing, Straight Term Loans
    (C)   Sale and Lease Back, Loans
    (D)   Credit Sales, Trade Credits

13   ABC Analysis plays a vital role in —– management
    (A)   Finance
    (B)   Inventory
    (C)   Both (a) and (b)
    (D)   Material

14   —– is one which allows lowest cost per unit and is most advantageous
    (A)   Economic Order Quantity
    (B)   Economic Order Quality
    (C)   Equal Order Quantity
    (D)   Equal Order Quality

15   The SAP ERP product is very popular for material management called as
    (A)   Material Requirement Planning
    (B)   Enterprise Resource Planning
    (C)   Material Resource Planning
    (D)   Material Management Module

16   Suggest the appropriate inputs to MRP:
    (A)   Master Distribution Schedule, Inventory File
    (B)   Master Production Schedule, Inventory Record File
    (C)   Master Sales Schedule, Inventory Sale File
    (D)   Master Output Schedule, Inventory Bill File

17   Making request for quotation ii) Selection of possible potentials sources of supply iii) Selection of right source of supply iv) Receipt and analysis of quotations
    (A)   i, ii, iii, iv
    (B)   ii, i, iv, iii
    (C)   ii, iii, i, iv
    (D)   iv, i, ii, iii

18   CRM is
    (A)   Customer Relationship Management
    (B)   Customer Relation Manager
    (C)   Custom Relative Management
    (D)   Customer Relative Manager

19   Clause of ISO 9001:2000 Internal Audit includes —–
    (A)   Need of Internal Audits at pre-planned intervals
    (B)   Includes Supervision and Measurements
    (C)   Monitors and Measures products as well as services
    (D)   Includes Data Analysis for continuous improvement

20   m) Kaizen ii) Small group of voluntary employees n) 6 sigma iii) 3.4 defects per million
    (A)   l -i, m-iii, n-ii
    (B)   l- ii, m-iii, n-i
    (C)   l-ii, m-i, n-iii
    (D)   l-iii, m- ii, n-iii

21   Statement 1: MRP maintains maximum inventory Statement 2: MRP provides better inventory turnover
    (A)   both 1&2 are correct
    (B)   both 1&2 are wrong
    (C)   1 correct, 2 wrong
    (D)   1 wrong,2 correct

22   Why purchasing is required
    (A)   To produce material at lowest cost
    (B)   To maintain standards of quality
    (C)   Both a and b
    (D)   None

23   Which Statement is wrong? Zero based budgeting
    (A)   is difficult to implement
    (B)   Consume less time
    (C)   Avoids wastage
    (D)   is costly

24   Labour budget is based on
    (A)   Flexibility
    (B)   Function
    (C)   Mechanism
    (D)   None

25   A budget which is designed to change in relation with the level of activity of the business
    (A)   capital expenditure budget
    (B)   variable budget
    (C)   cash budget
    (D)   material budget

26   According to Workman’s compensation act, in which of the following cases should an employer provide compensation to the employee?
    (A)   Injury caused during employment
    (B)   Injury caused by accident
    (C)   Any disablement/death after accident
    (D)   All of above

27   Who is responsible for accident?
    (A)   Worker
    (B)   Management
    (C)   Working condition
    (D)   All of above

28   Which is not correct advantage of ‘line organization’?
    (A)   It is simple
    (B)   Confusion is less
    (C)   Specialized
    (D)   Easy to understand

29   Which is barrier in communication
    (A)   Language problem
    (B)   Poor knowledge
    (C)   Confused information
    (D)   all

30   Which Statement is wrong?
    (A)   In team work, there is more contribution from many
    (B)   Talent of each member cannot be used
    (C)   Teamwork creates good work culture
    (D)   Big task is easier due to teamwork

31   Out of the following which is not function of management
    (A)   Planning
    (B)   Controlling
    (C)   Discipline
    (D)   Directing

32   Mc Gregor has given contribution in
    (A)   Concept of bureaucracy
    (B)   Motion Study
    (C)   Theory X &Theory Y
    (D)   Time study

33   Domestic trade is also called as
    (A)   Global trade
    (B)   Foreign trade
    (C)   International trade
    (D)   Internal trade

34   India is largest market in the world for
    (A)   Cars
    (B)   Three Wheelers
    (C)   Heavy Vehicles
    (D)   Public travels

35   Statement 1: procurement is a systematic process Statement 2: Purchasing is a routine process
    (A)   both 1&2 are correct
    (B)   both 1&2 are wrong
    (C)   1 correct, 2 wrong
    (D)   1 wrong,2 correct

36   Quality management
    (A)   Assures Quality
    (B)   Only few do all work
    (C)   Both a and b
    (D)   None

37   Match the pairs of column 1 & 2 Column 1 a) Seiri b) Seition c) Seiso d) Seiketsu Column 2 1) Standardize 2) Sanitize 3) Systemize 4) Structurize
    (A)   a-1, b-3, c-4, d-2
    (B)   a-2, b-1, c-3, d-4
    (C)   a-3, b-2, c-1, d-4
    (D)   a-4, b-3, c-2, d-1

38   What is the relationship between graph & classification of A, B, C categories?
    (A)   Classification is done after drawing graph
    (B)   Graph is drawn after classification
    (C)   Graph is not drawn in ABC analysis
    (D)   None

39   Which is the assumption in EOQ?
    (A)   Cost of placing order is
    (B)   One stock out is allowed
    (C)   Both I & ii options
    (D)   None

40   —– determines quantity & timing for material planning
    (A)   ERP
    (B)   MRP-II
    (C)   MRP
    (D)   SAP

41   Shares is included under —– source of finance
    (A)   Short term
    (B)   Medium term
    (C)   Long term
    (D)   None

42   Statement – 1: Excise is direct tax Statement -2: Excise is a commodity tax
    (A)   Statement 1 & 2 are wrong
    (B)   Statement 1 is wrong & 2 is correct
    (C)   Statement -1 is correct & 2is wrong
    (D)   both statement 1 & 2 are correct

43   Structure of organization is represented by
    (A)   Organization brochure
    (B)   Organization chart
    (C)   Organization draft
    (D)   All the above

44   Which is the first need in Maslow’s need hierarchy?
    (A)   Security
    (B)   Physiology
    (C)   Social
    (D)   Self-Actualization

45   Following industry comes under tertiary sector in economy
    (A)   Mining industry
    (B)   Cement Industry
    (C)   Service Industry
    (D)   Sugar Industry

46   Reserve Bank of India established in —–
    (A)   1947
    (B)   1950
    (C)   1933
    (D)   1935

47   Which is the component of TQM?
    (A)   Customer focus
    (B)   Continuous improvement
    (C)   Total involvement of all employees
    (D)   All the above

48   5 S is
    (A)   Systematic way of working
    (B)   Good housekeeping
    (C)   Disciplined
    (D)   Positioning of items

49   SEZ means
    (A)   special export zone
    (B)   special economic zone
    (C)   state economic zone
    (D)   special engineering zone

50   Which is first need in Maslow’s need of hierarchy?
    (A)   Physiological
    (B)   Security
    (C)   social
    (D)   Self-actualization

51   Government sector is also called as
    (A)   Public sector
    (B)   service sector
    (C)   People’s sector
    (D)   none

52   Which is incorrect type of partner?
    (A)   Active
    (B)   Perfect
    (C)   Nominal
    (D)   Sleeping

53   Tata motors refers to which of the following company type
    (A)   Public limited company
    (B)   private limited company
    (C)   ownership company
    (D)   partnership company

54   Internal accident means
    (A)   accident in the premises of company
    (B)   injury without showing external signs
    (C)   both
    (D)   none

55   Six sigma success factors are
    (A)   Leader’s commitment
    (B)   Innovative
    (C)   Facts based decision making ideas
    (D)   All

56   An adult worker can work up to —– hrs. in a day as per factories Act, 1948.
    (A)   8
    (B)   9
    (C)   10
    (D)   12

57   Who is incorrect person in the definition of Dependent?
    (A)   Wife
    (B)   Minor son
    (C)   Widowed mother
    (D)   Friend

58   Minimum —– & Maximum —– Persons can be partners in a business
    (A)   4,20
    (B)   2,20
    (C)   4,10
    (D)   2,10

59   Delegation is a right given by a —– to —– to make decisions.
    (A)   Manager, Employee
    (B)   C. E. O., H.R.
    (C)   Manager, Supervisor
    (D)   Superior, Subordinate

60   A public limited company can have minimum —– and maximum —–
    (A)   2, unlimited
    (B)   2, 100
    (C)   4, 100
    (D)   7, unlimited

61   The staff specialist provides —– to line managers.
    (A)   Machines
    (B)   work
    (C)   advice
    (D)   orders

62   Need- want – satisfaction chain is invented by —–
    (A)   Maslow
    (B)   Taylor
    (C)   Drucker
    (D)   Fayol

63   —– policy covers all the medical expenses following hospitalization.
    (A)   health insurance
    (B)   travel insurance
    (C)   life insurance
    (D)   motor insurance

64   The current effective service tax rate is:
    (A)   10%
    (B)   12%
    (C)   12.36%
    (D)   15%

65   Which one of the following is not a current liability?
    (A)   short- term borrowings
    (B)   trade payables
    (C)   short- term provisions
    (D)   long- term provisions

66   Which is the first step in purchasing?
    (A)   Decision for purchasing
    (B)   Material requisition
    (C)   Finalization of supplier
    (D)   Market analysis

67   Statement 1- ERP needs exhaustive training to employees Statement 2- Cost of ERP installation is less
    (A)   Both 1 and 2 correct
    (B)   Both 1 and 2 wrong
    (C)   1 correct, 2 wrong
    (D)   1 wrong, 2 correct

68   Innovation shows —– steps and Kaizen shows —– steps in speed of work
    (A)   Big, Small
    (B)   Small, Big
    (C)   Small, Small
    (D)   Big, Big

69   A Pareto chart points out:
    (A)   that the process is in
    (B)   the key cause
    (C)   process capability
    (D)   customer needs

70   Which one of the following is not a principle of TQM?
    (A)   customer satisfaction
    (B)   promote communication
    (C)   empowering employee
    (D)   feedback

71   If XYZ company makes or produces TVs it can be called as —– type of
    (A)   Service
    (B)   Manufacturing
    (C)   Trade
    (D)   All of these

72   Infosys is example of —– industry
    (A)   IT
    (B)   Textile
    (C)   Manufacturing
    (D)   All of these

73   In banking sector ATM stands for
    (A)   Any Time Money
    (B)   All Time Money
    (C)   Automatic Tailor Machine
    (D)   Automated Teller Machine

74   Edible oil is a product of
    (A)   Textile Industry
    (B)   IT Industry
    (C)   Agro Industry
    (D)   Chemical Industry

75   Administration is a
    (A)   Thinking or Determinative function
    (B)   Used at low level of management
    (C)   Used at all levels of Management
    (D)   Thinking and Doing function.

76   —– Management is responsible for the image of the company.
    (A)   Low
    (B)   Top
    (C)   Middle
    (D)   Low and Middle

77   —– skill is needed at the top level of Management
    (A)   Technical
    (B)   Conceptual and Technical
    (C)   Conceptual
    (D)   Conceptual, Technical and Human

78   —– is the most basic and primary function of Management
    (A)   Organizing
    (B)   Purchasing
    (C)   Directing
    (D)   Planning

79   concerns with the distribution of authorities among the various levels of management.
    (A)   Initiative
    (B)   Centralization
    (C)   Division of work
    (D)   Order

80   —– function of management consists of man power planning, recruitment, selection, training of employees etc.
    (A)   Controlling
    (B)   Organizing
    (C)   Staffing
    (D)   Planning

81   In the event of liquidation of the company, a —–
    (A)   priority will be given to debenture holder to receive his money before the shareholder gets something.
    (B)   shareholder to receive his money before the debenture holder gets something.
    (C)   equal priority will be given to shareholder and debenture holder.
    (D)   shareholder and debenture holder earn profit.

82   Co-operative society runs on —– basis.
    (A)   more profit or more loss
    (B)   less profit or more loss
    (C)   no profit or no loss
    (D)   all of these

83   In functional organization an employee reporting to several higher authorities is called as —–, which is disadvantage of functional organizational.
    (A)   Specialization
    (B)   Delay in decision making
    (C)   Single command
    (D)   Double command

84   As we move from bottom level of management to higher level of management the span of control becomes —–
    (A)   Wide
    (B)   constant
    (C)   Narrow
    (D)   None of these

85   In line organization high level of obedience on the part of sub-ordinate is required. Due to which is developed in the higher authorities, which is disadvantage of Line type.
    (A)   Autocratic approach
    (B)   Simplicity
    (C)   Prompt Decision
    (D)   Effective discipline

86   If an employee gets injured in a factory while working, then he is eligible to receive compensation under act.
    (A)   The factories act 1948
    (B)   The Maximum Wages Act1948
    (C)   Health Provision act
    (D)   The employee’s compensation act 2009

87   The capital which is required for day – to – day needs is labeled as —– capital.
    (A)   working
    (B)   fixed
    (C)   working and fixed
    (D)   Initial

88   The overall or summary budget is called as
    (A)   Master Budget
    (B)   Sales Budget
    (C)   Marketing Budget
    (D)   Production Budget

89   If salary of an employee is above 12 lacs per annum, then he will pay —– tax to central Government.
    (A)   Income
    (B)   VAT
    (C)   Octroi
    (D)   All of the above

90   Identify taxes collected by Central Government
    (A)   Income and Excise
    (B)   Custom duty
    (C)   stamp duty and luxury
    (D)   Octroi

91   Identify taxes collected by state Government
    (A)   Income and Excise
    (B)   Custom duty
    (C)   stamp duty and luxury
    (D)   Excise only

92   In EOQ: Economic Order Quantity; Q is —–
    (A)   Holding cost
    (B)   Annual Demand Quantity
    (C)   Purchase price
    (D)   Order quantity

93   Preparation of comparative statement is part of —– procedure.
    (A)   Staffing
    (B)   Production
    (C)   Purchasing
    (D)   Recruitment

94   Motor bike ready with engine fitting and all other accessories but without tires is example of —– inventory
    (A)   Indirect
    (B)   Semi-finished
    (C)   finished
    (D)   Raw

95   In case of Inventory management match the following a. Raw Inventories b. In process Inventories c. Finished Inventories d. Indirect inventories. p. They include lubricants and other items, like spare parts, needed for proper operation, repair and maintenance during manufacturing cycle. q. semi-finished goods waiting for dispatch s. raw materials
    (A)   a – p; b – q; c – r; d – s;
    (B)   a – s; b – r; c – q; d – p;
    (C)   a – p; b – r; c – q; d – s;
    (D)   a – s; b – q; c – r; d – p;

96   In case of ABC analysis of material management, and in case of Computer sub parts following are the various type of materials used like mother board and RAM, power supply, screws for mother board fitting etc. then which is A type, B type and C type?
    (A)   A type: mother board, RAM; B type: power supply; C type: screws
    (B)   A type: screws; B type: power supply; C type: mother board, RAM;
    (C)   A type: mother board, RAM; B type: screws C type: power supply;
    (D)   None of these

97   Kaizen is basically —– technique
    (A)   Japanese
    (B)   Chinese
    (C)   American
    (D)   Indian

98   The parts per million defects are accepted in 6 sigma is
    (A)   1.4
    (B)   2.4
    (C)   3.4
    (D)   4.4

99   In 5 S technique —– can also translated as “Set in order” or “Stream line”
    (A)   Seiri
    (B)   Seiton
    (C)   Seiso
    (D)   Shitsuke

100   What plays an important role in the Indian Textile Industry?
    (A)   Satin
    (B)   wood
    (C)   cotton
    (D)   machines

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