Multiple Choice Questions (MCQs)

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1   Direct Supervision on workers is function of
    (A)   Top Level Management
    (B)   Middle Level Management
    (C)   Low Level Management
    (D)   Operating force

2   Indian Insurance sector has number of insurance companies.
    (A)   112
    (B)   20
    (C)   52
    (D)   86

3   Globalization is not intended for free flow of —–
    (A)   Capital
    (B)   Labour
    (C)   Products
    (D)   Diseases

4   Service Industry provides
    (A)   Tangible Goods
    (B)   Intangible Goods
    (C)   Manufactured Goods
    (D)   Imported Goods

5   Business firms produce and supply wide varieties of goods and —– required by the society.
    (A)   Money
    (B)   Services
    (C)   Entities
    (D)   social services

6   Following will not come under inventory
    (A)   Tools
    (B)   Machines
    (C)   Lubricants
    (D)   Milling Cutter

7   ‘A’ kind of items in ABC analysis
    (A)   do not need close control
    (B)   constitute 70 % of inventory
    (C)   purchased on time
    (D)   purchased in large quantity

8   Purchase Order Includes
    (A)   Quantity of Items
    (B)   Invoice Number
    (C)   Quantity in Stock
    (D)   All Above

9   Which one of the following is not a Module of ERP?
    (A)   Manufacturing
    (B)   HR
    (C)   Quality Control
    (D)   Supply Chain Management

10   Main eight sections of ISO 9001:2000 does not include
    (A)   Quality Management System
    (B)   Resource Management
    (C)   Recruitment
    (D)   Measurement. Analysis &Improvement

11   Quality Circle People
    (A)   Discuss Grievances
    (B)   Discuss Work-related Problems
    (C)   Meet once in a month
    (D)   Not a voluntary participation

12   Elements of TQM include
    (A)   Ethics
    (B)   Training
    (C)   Both above
    (D)   None Above

13   Objectives of Quality Control includes 1. Establish desired quality standards 2. To determine deviations in quality 3. Ascertain causes in deviations 4. To use modern techniques of measurement.
    (A)   1, 2 and 3 only
    (B)   1. 3 and 4 only
    (C)   1,2,3 and 4
    (D)   2,3 and 4 only

14   What system helps make calculations regarding the volume and timing of materials needed?
    (A)   Production plan
    (B)   Material Scheduling
    (C)   Material requirement Planning
    (D)   Material Resource Planning

15   Which of the following describe an ERP System?
    (A)   ERP system provide a foundation for collaboration between department
    (B)   ERP system enable people in different business areas to communicate
    (C)   widely adopted in large organization to store critical knowledge used to make the decision that drive the organization’s performance
    (D)   All of the above

16   The following is an example of direct taxes
    (A)   Sales tax
    (B)   Income tax
    (C)   Excise duties
    (D)   Toll tax

17   one use of inventory is
    (A)   To provide a hedge against inflation
    (B)   To ensure that item cost is maximized
    (C)   To tightly link a firm’s production with its customers’ demand
    (D)   To tightly link production & distribution process

18   Material Management is also called
    (A)   Distribution Planning
    (B)   Control & logistics
    (C)   Both of the above
    (D)   Neither of the above

19   ABC analysis is used for
    (A)   CPM
    (B)   PERT
    (C)   Inventory Control
    (D)   None of the above

20   The quantity discount model is most similar to which one of these models
    (A)   ROP
    (B)   EOQ
    (C)   Fixed interval
    (D)   EPQ

21   A budget is the plan of the various costs and expenses needed to operate the business based on the short-term forecast
    (A)   Capital budget
    (B)   Operating Budget
    (C)   Cash Budget
    (D)   Resource Budget

22   The most common causes of financial problems are
    (A)   Undercapitalization
    (B)   Inadequate expense control
    (C)   credit term
    (D)   all of the above

23   A statement that projects management’s expectations for revenues and based on those financial expectations, allocates the use of specific resources throughout the firm is called
    (A)   A cash flow
    (B)   A budget
    (C)   A resource plan
    (D)   A resource allocation

24   The steps in financial planning are
    (A)   needs and developing budgets to meet those needs
    (B)   Identify sources of financing
    (C)   controls to ensure the company is following financial plans
    (D)   option (A) and option (C)

25   Departmentalization is a(n)
    (A)   Form of informal Communication
    (B)   Element of organizational structure
    (C)   Type of formalization
    (D)   component of a flat span of control

26   Which of the following is an advantage of a sole proprietorship?
    (A)   Ease of starting a business
    (B)   Being your own boss
    (C)   pride of ownership
    (D)   All of the above

27   The primary purpose of employee safety programme is to preserve the
    (A)   Mental Health
    (B)   Physical Health
    (C)   Emotional Health
    (D)   All of the Above

28   Which structure is usually optimal for project-based organization with fluctuating workload?
    (A)   Functional
    (B)   Divisional
    (C)   Matrix
    (D)   Network

29   A flat organizational structure creates a —– span of control
    (A)   Narrow
    (B)   wide
    (C)   Centralized
    (D)   Informal

30   As organization grow, they tend to decision making authority.
    (A)   Centralize
    (B)   Decentralize
    (C)   Control
    (D)   Standardize

31   Which of these statements about organizational structure is (are) true?
    (A)   It refers to the division of labour
    (B)   It refers to patterns of coordination
    (C)   flow and formal power that direct organizational activities
    (D)   ALL of the above Statements are true

32   Fredrick Taylor stressed on
    (A)   Selecting the right people for the job
    (B)   Division of labour
    (C)   unity of command
    (D)   unity of Direction

33   Planning, organizing, directing and controlling are the
    (A)   Goals of management
    (B)   Functions of management
    (C)   results of management
    (D)   all of the above

34   During the agricultural revolution, all of the following transformed the economy except
    (A)   Coal, oil and other new energy sources
    (B)   job specialization
    (C)   trade
    (D)   permanent settlements

35   The primary sector includes all of the following except
    (A)   forestry
    (B)   Manufacturing
    (C)   Mining
    (D)   Agriculture

36   Which of the following is not a type of copyright work?
    (A)   Literary Works
    (B)   Furniture
    (C)   Sculpture
    (D)   Musical Works

37   Globalization involves
    (A)   Stretching of social, political and economic activities across political frontier
    (B)   A growing magnitude of interconnectedness in almost every sphere of social existence
    (C)   An accelerating pace of global interactions and processes associated with a deepening enmeshment of the local and the global
    (D)   All of the answer options given are correct

38   Where was TQM first developed?
    (A)   USA
    (B)   UK
    (C)   JAPAN
    (D)   KOREA

39   Which of the following is not a record required by ISO 9001:2000?
    (A)   Review of requirements related to the product
    (B)   Definition of the work environment
    (C)   Results of preventive action
    (D)   Management review records

40   Following is not a part of the of steps for purchasing a) Getting requisition from various departments b) Obtaining Quotations c) Making budget d) Preparing Purchase orders
    (A)   a
    (B)   b
    (C)   c
    (D)   d

41   Reliance company has a common software platform integrating all its functions materials, finance, personnel, sales, etc. The company is said to have one of the following in place
    (A)   JIT
    (B)   Enterprise Resource Planning (ERP)
    (C)   5S
    (D)   Kaizen

42   In any factory, bulk usage of items is of which type
    (A)   A type
    (B)   B type
    (C)   C type
    (D)   All

43   In ABC analysis all materials are divided into how many types
    (A)   4
    (B)   3
    (C)   2
    (D)   5

44   The point at which ordering cost is equal to carrying cost in materials management is called as
    (A)   EOQ
    (B)   Optimal point
    (C)   Breakeven point
    (D)   Ideal Point

45   Which of the following items manufactured in India is not liable for Excise tax?
    (A)   Sugar
    (B)   Salt
    (C)   Steel
    (D)   Soap

46   Capital required by a company to purchase building for starting the company is called as
    (A)   Working capital
    (B)   Fixed capital
    (C)   Loan
    (D)   Debt

47   Which is the budget to which all other budgets are geared
    (A)   Sales
    (B)   Production
    (C)   Labour
    (D)   Materials budget

48   Mr. X has two flats in, Mumbai, he and his family resides in one flat and the other flat he has given on rent, the money he earns from getting the rent is liable for which tax.
    (A)   Excise tax
    (B)   Income tax
    (C)   Service Tax
    (D)   Value added tax

49   Welfare of the employees is taken care by which industrial act
    (A)   Factory Act
    (B)   Workman Compensation
    (C)   Industrial Dispute Act
    (D)   Employees State Insurance

50   A small child 8 years old is working in XYZ company manufacturing silk sarees. Which act is being violated by the company?
    (A)   Industrial Dispute act
    (B)   Workman Compensation Act
    (C)   Factory Act
    (D)   Employees State Insurance Act

51   The necessity of industrial acts is to protect the interests of:
    (A)   Workers
    (B)   employers
    (C)   A and B
    (D)   none of the above

52   A worker has used cutter instead of a plier for doing some job, and he gets a cut on his right hand. What is the cause of this accident classified as?
    (A)   Mechanical factor
    (B)   Environment factor
    (C)   Human cause
    (D)   Technical cause

53   Which of the following is not a safety measure to avoid accidents?
    (A)   Safety slogans
    (B)   Proper lighting
    (C)   over confidence
    (D)   Fencing of equipment

54   My friend and I start a company, she is just providing money in the business, she does not look into the day-to-day activities of the company, our company has which form of ownership
    (A)   Limited Partnership
    (B)   Public Ltd
    (C)   Proprietorship
    (D)   Joint Stock

55   Authority means
    (A)   Legitimate right of a person to exercise influence
    (B)   Legitimate right to make decisions
    (C)   Right to direct others
    (D)   All the above

56   An automobile company has departments for two wheelers and four wheelers, what is the method of departmentation this company has adopted
    (A)   By function
    (B)   By product
    (C)   By process
    (D)   By markets

57   Myself and my friend start a company, which type of organization it will be from the structure point of view at the start with simple format, small size
    (A)   Line
    (B)   Line & Staff
    (C)   Functional
    (D)   Project

58   Policy making is the role of
    (A)   People
    (B)   Management
    (C)   Administration
    (D)   Country

59   The act of getting people together to work for a common goal is called as
    (A)   Organizing
    (B)   Management
    (C)   Administration
    (D)   Motivation

60   The number of management principles given by Henry Fayol are
    (A)   12
    (B)   10
    (C)   17
    (D)   14

61   CEO belongs to which level of management
    (A)   Bottom level
    (B)   Top level
    (C)   Middle level
    (D)   No level

62   Name the type of business enterprise concerned with the distribution of goods
    (A)   Manufacturing
    (B)   Trading
    (C)   Selling
    (D)   Buying

63   Dryers and cleaners are examples of which services
    (A)   Direct services
    (B)   Indirect services
    (C)   both
    (D)   None

64   An economic activity involving the regular production or distribution of goods and services with the object of earning profits through satisfaction of human needs is called as
    (A)   Business
    (B)   Management
    (C)   Administration
    (D)   Social Service

65   Following is not the definition of Quality
    (A)   Fitness for purpose
    (B)   It signifies degree of
    (C)   Conformance to
    (D)   experience of people

66   If the company has a goal to accept only .0003%defect, which is the most important modern technique it should adopt.
    (A)   ERP
    (B)   SAP
    (C)   BAAN
    (D)   6 Sigma

67   order as per use, keep them clean, standardize the process and sustain this activity. Which modern technique and system of Quality management it is adopting
    (A)   5S
    (B)   Kaizen
    (C)   TQM
    (D)   6 Sigma

68   hospitality industry, consulting (ii) legal practice, healthcare, waste disposal (iii)real estate, personal services, business services (iv) house decorators, entertainers.
    (A)   only (I)
    (B)   (i) and (ii)
    (C)   (ii) and (iv)
    (D)   all of above

69   Which is important factor in deciding structure of organization?
    (A)   functions
    (B)   specialization
    (C)   types of products
    (D)   all

70   Which is the pre requisite of effective delegation?
    (A)   Decision making freedom
    (B)   Knowledge of designation
    (C)   Independent subordinates
    (D)   all the above

71   Sales department in Nokia is the example of …………………………
    (A)   Departmentation by function
    (B)   Departmentation by process
    (C)   departmentation by product
    (D)   none

72   ……………………… is the management of finance of an organization in order to achieve financial objectives.
    (A)   Financial Management
    (B)   Material Management
    (C)   Personnel Management
    (D)   Operation Management

73   Which is the factor responsible in the selection of types of ownerships?
    (A)   Types of business
    (B)   scope of business
    (C)   capital required
    (D)   all

74   which of the following is wrong?
    (A)   the wealth invested in business to generate income is called capital
    (B)   if the capital is not managed properly no losses may be incurred
    (C)   Financial management is the management of finance of an organization in order to achieve financial objectives
    (D)   none

75   The objective of inventory management is …………………….
    (A)   to ensure continuous supply of materials
    (B)   and under stocking of inventory
    (C)   to minimize losses resulting from inventory deterioration
    (D)   all

76   Which of the following is correct?
    (A)   known as the order quantity
    (B)   In manufacturing, EOQ is called the production lot size
    (C)   both (i) and (ii)
    (D)   none

77   Procurement cost consists of ……………………………
    (A)   Cost of receiving quotations
    (B)   quotations and issuing purchase order
    (C)   cost of following up and expediting purchase order
    (D)   all

78   Carrying(holding) cost;
    (A)   you hold more and more inventory
    (B)   hold more and more inventory
    (C)   These costs decrease as you hold fewer inventories
    (D)   none

79   which of following is wrong?
    (A)   quality is degree of excellence
    (B)   quality is fitness for use
    (C)   quality means less maintainability
    (D)   quality means conformance to requirements

80   Following are the business pattern is not coming under service industry.
    (A)   ITES
    (B)   Banking
    (C)   Real Estate
    (D)   Textile mill

81   Which is unimportant word in the definition of organization?
    (A)   Group of persons
    (B)   Common Aim
    (C)   Profit
    (D)   United together

82   All the partner has same status in
    (A)   General partnership
    (B)   Nominal partnership
    (C)   Limited partnership
    (D)   None of the above

83   If an affected worker recovers within 10 hours, then it is a —– accident.
    (A)   Minor
    (B)   Reportable
    (C)   Major
    (D)   Fatal

84   —– is the financial snapshot of the organization.
    (A)   Profit and loss account
    (B)   Balance sheet
    (C)   Snap Sheet
    (D)   Budget

85   Capital invested on Buildings’ is an example of:
    (A)   Fixed capital
    (B)   Floating capital
    (C)   Circulating capital
    (D)   None of the above

86   Which is not the type of profit and loss account?
    (A)   Report form
    (B)   Step form
    (C)   Account form
    (D)   None of the above

87   Statement 1 – Income tax is levied by central government. Statement 2 – Income tax is to be paid by all employees.
    (A)   Both 1 and 2 are correct
    (B)   Both 1 and 2 are wrong
    (C)   1 correct, 2 wrong
    (D)   1 wrong, 2 correct

88   The stock of material, maintained in order to avoid ‘no stock’ situation is called
    (A)   Additional stock
    (B)   Buffer stock
    (C)   Extra stock
    (D)   None of the above

89   Calling quotation, order follow-up, material receiving. Placing PO are the
    (A)   Quality department
    (B)   Purchase department
    (C)   Inventory department
    (D)   Marketing department

90   Quality standards should be related to
    (A)   Performance
    (B)   Acceptance
    (C)   Economically Feasibility
    (D)   All of the above

91   Statement 1 – Quality Assurance is a proactive approach. Statement 2 – Quality Assurance improves quality of product.
    (A)   Both 1 and 2 are correct
    (B)   Both 1 and 2 are wrong
    (C)   1 correct, 2 wrong
    (D)   1 wrong, 2 correct

92   —– is willing to exchange of goods.
    (A)   Trade
    (B)   Service
    (C)   Manufacturing
    (D)   both I and ii

93   Following is not associated with insurance
    (A)   Bajaj Allianz
    (B)   Max Life
    (C)   LIC
    (D)   ICC

94   How many needs are mentioned in Maslow’s need hierarchy?
    (A)   6
    (B)   5
    (C)   4
    (D)   3

95   Which is not the public sector?
    (A)   Government Department
    (B)   Public Limited Company
    (C)   Public Corporation
    (D)   Public Company

96   Car division in Tata Motors is example of
    (A)   Departmentation by product
    (B)   Departmentation by function
    (C)   Departmentation by process
    (D)   None of the above

97   The duties and qualification of Labour Welfare Officer is prescribed by:
    (A)   Factory head
    (B)   Industry Minister
    (C)   State Government
    (D)   None of the above

98   Customer Advances are included under —– source of finance.
    (A)   Long-term
    (B)   Short-term
    (C)   Medium-term
    (D)   None of the above

99   For making Labour Budget, workers are classified into
    (A)   Skilled
    (B)   Semi-skilled
    (C)   Unskilled
    (D)   All of the above

100   The earning capacity and potential of a firm are reflected in —–
    (A)   Balance sheet
    (B)   Profit and loss account
    (C)   both i and ii
    (D)   None of the above

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