Multiple Choice Questions (MCQs)

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1   Indian railways is a —–.
    (A)   Government Department
    (B)   Government Company
    (C)   Public company
    (D)   Joint stock company

2   Accident caused by worker is because of:
    (A)   safety equipment not being provided
    (B)   oily and greasy floor
    (C)   Ignorance of safety procedure
    (D)   Unsuitable illumination

3   Principle/s of Organization is/ are:
    (A)   Effective delegation
    (B)   Effective discipline
    (C)   Effective directing
    (D)   All the above

4   The partner who does not take part in day-to-day activities
    (A)   Active partner
    (B)   Secret partner
    (C)   Sleeping partner
    (D)   Nominal partner

5   Military organization is also commonly referred as:
    (A)   Line and staff organization
    (B)   Scalar organization
    (C)   Functional organization
    (D)   All the above

6   Planning’ usually fail due to
    (A)   Feedback of plan
    (B)   Data analysis
    (C)   Unrealistic nature
    (D)   All the above

7   At this level of management few people are involved
    (A)   Tactical level
    (B)   Strategical level
    (C)   Operational level
    (D)   Functional level

8   Power to act and accountability
    (A)   Delegation
    (B)   Discipline
    (C)   Division of work
    (D)   Authority and responsibility

9   The main areas of quantitative or management science school are
    (A)   Operations management
    (B)   Classical science
    (C)   Behavioral science
    (D)   All the above

10   Regulatory body for banking sector which also monitors GDP and inflation
    (A)   SBI
    (B)   RBI
    (C)   CBI
    (D)   IDBI

11   Indian industrial sector does not involve in
    (A)   Construction
    (B)   Textile
    (C)   Fisheries
    (D)   Railways

12   Service enterprise provides the services that are called as
    (A)   Automobile goods
    (B)   Production goods
    (C)   Intangible goods
    (D)   All the above

13   Internal source/s of finance is/are:
    (A)   Deferred taxation
    (B)   Shares
    (C)   Debentures
    (D)   All the above

14   Legal debts or obligations which arise during the business operations:
    (A)   Asset
    (B)   Shares
    (C)   Debentures
    (D)   Liabilities

15   Value added tax is a:
    (A)   Direct tax
    (B)   Income tax
    (C)   Excise duty
    (D)   consumption tax

16   Inventory management is part of:
    (A)   Product management
    (B)   Marketing management
    (C)   Materials management
    (D)   Sales management

17   Generally, ‘C’ type and ‘A’ type of items consume an inventory cost of:
    (A)   20 % and 5 % respectively
    (B)   50 % and 20 % respectively
    (C)   5 % and 80 % respectively
    (D)   80 % and 50 % respectively

18   inventory is 16%, cost of each unit is Rs.100. The economic order quantity will be
    (A)   10
    (B)   20
    (C)   30
    (D)   40

19   Collection of guidelines that are used to manage the quality of activities in an organization
    (A)   Quality assurance
    (B)   Quality control
    (C)   Quality circle
    (D)   Quality management system

20   The objective of Quality circle is /are
    (A)   Improve quality, productivity, safety and reduce cost
    (B)   Improve productivity and safety only
    (C)   Improve productivity only
    (D)   None of the above

21   Six sigma methodology endorse
    (A)   CRM concept
    (B)   TQM concept
    (C)   DMAIC concept
    (D)   All the above

22   Number of Sub-ordinates a manager can supervise effectively is
    (A)   Scope of supervisor
    (B)   Span of Control
    (C)   Focus of supervisor
    (D)   None of the above

23   Which budget shows one plan, one volume of output or sales & the related fixed
    (A)   Fixed Budget
    (B)   Variable Budget
    (C)   Functional Budget
    (D)   All of the Above

24   Expenses of office & administrative expenses are grouped under-
    (A)   Staff Salary
    (B)   Stationary
    (C)   Printing
    (D)   All of the Above

25   While on long tour which are the item that we must take care of? Certainly, it is the jewelry and the cash!! This could be an analogy to
    (A)   EOQ
    (B)   ABC
    (C)   Minimum batch size
    (D)   None of the above

26   ABC company has in profit of Rs one lakh. It is divided in equal number of parts known as ………….
    (A)   Capital
    (B)   Business
    (C)   Shares
    (D)   Debentures

27   XYZ electronics company has confirmed expert order and is in need of finance. The bank provides short term credits. It is known as ……….
    (A)   Import finance
    (B)   Import duty
    (C)   Export finance
    (D)   None of the above

28   Which statement is wrong about partnership?
    (A)   There is limited liability
    (B)   Business life is dependent on partners
    (C)   It is a Joint business
    (D)   No transfer of partnership

29   Which statement is wrong in product type departmentation?
    (A)   Attention is given to the product
    (B)   Product may become brand name
    (C)   people become expert in the work allotted to them
    (D)   No duplication of work

30   Which statement is correct about ‘nominal partners’?
    (A)   Do not actively involved
    (B)   Dop not invest
    (C)   Business can use their name
    (D)   All are correct

31   In Approach all members of an organization participate & improving the processes & culture of organization
    (A)   5 S
    (B)   Six Sigma
    (C)   TQM
    (D)   Quality circle

32   VAT and sales tax falls under ……………
    (A)   Indirect tax
    (B)   Services tax
    (C)   Direct tax
    (D)   All of the above

33   …………. is the lifeblood of business
    (A)   Budget
    (B)   VAT
    (C)   Capital
    (D)   None of the above

34   General causes of accidents could be as follows
    (A)   Accidents due to dangerous machines
    (B)   Unsafe physical conditions
    (C)   Moving objects
    (D)   All of the above

35   Accident due to daydreaming which comes under
    (A)   Mechanical causes of an Accident
    (B)   Natural Cause of an accident
    (C)   Human error
    (D)   All the above

36   —– is essential to direct, guide, instruct, and order the subordinate.
    (A)   Manager
    (B)   Authority
    (C)   Chairman
    (D)   Responsibility

37   Which of Following is not the agro industry?
    (A)   Jute
    (B)   Sugar
    (C)   Paper
    (D)   Poultry

38   Which is the apex authority of Government of India
    (A)   SAIL
    (B)   TISCO
    (C)   Heavy Industries Ministry
    (D)   ISA

39   Which of Following are principles of management i) Motivating ii) Remuneration iii) Division of Work iv) Organizing?
    (A)   i and ii
    (B)   iii and iv
    (C)   ii and iii
    (D)   All of the above

40   Arrange Maslow`s Theory of Motivation in ascending order (Bottom to Up) i) Physiological Needs ii) Love / Affection Needs iii) Social / Esteem Needs iv) Security / Safety Needs v) Self Actualization Needs
    (A)   i-ii-iii-iv-v
    (B)   i-iii-ii-iv-v
    (C)   i-v-ii-iii-iv
    (D)   i-iv-ii-iii-v

41   Discipline starts from
    (A)   Bottom to Top
    (B)   From Middle
    (C)   Top to Bottom
    (D)   None of above

42   Injury after accident disables the affected worker forever is —– accident
    (A)   Fatal
    (B)   Permanent
    (C)   Major
    (D)   None of above

43   —– is the study of relationship between the raising of finance and deployment of finance
    (A)   Financing
    (B)   Financial Deficit
    (C)   Finance
    (D)   Financial Management

44   In balance sheet, we see, —– equal to the sources of the funds
    (A)   Assets
    (B)   Expenditure
    (C)   Savings
    (D)   Liabilities

45   Which is input to MRP
    (A)   Current Forecasting
    (B)   Bill of Material
    (C)   On Hand Inventory
    (D)   All of the above

46   —– is process of dividing large organization into small and flexible administrative units
    (A)   Defragmentation
    (B)   Departmentation
    (C)   Division Formation
    (D)   None of the above

47   Profit and Loss Account is —– i) A flow statement ii) A measure of firm`s profitability
    (A)   i is correct and ii is wrong
    (B)   i is wrong and ii is correct
    (C)   Both i and ii correct
    (D)   both i and ii wrong

48   Central government is not dealing with
    (A)   Income Tax
    (B)   Sales Tax
    (C)   Excise Duty
    (D)   Custom Duty

49   Effect of Innovation is —– and effect of Kaizen is —–
    (A)   Long Term, Short Term
    (B)   Short Term, Long-term
    (C)   Long Term, Long Term
    (D)   Short Term, Short Term

50   Throw away unnecessary is in
    (A)   Seiso
    (B)   Seiri
    (C)   Seition
    (D)   Seiketsu

51   i) Quality Assurance is a proactive approach ii) Quality Assurance improves quality of product
    (A)   i is correct and ii is wrong
    (B)   i is wrong and ii is correct
    (C)   Both i and ii correct
    (D)   both i and ii wrong

52   Which is not the consideration in ABC analysis?
    (A)   Sub Categorization like A1 A2, B1 B2, C1 C2 is not possible
    (B)   All Items should be considered together
    (C)   ABC curve is similar in shape for different industries
    (D)   None of above

53   In which type of Authority Punishment is given
    (A)   Coercive
    (B)   Expert
    (C)   Referent
    (D)   Reward

54   Which Structure of Organization is Tight & Rigid?
    (A)   Line Organization
    (B)   Line & Staff Organization
    (C)   Project Organization
    (D)   Staff Organization

55   Which function of management is a tool for fast development.
    (A)   Decision Making
    (B)   Directing
    (C)   Controlling
    (D)   Planning

56   One Man – One Boss may be called as —–
    (A)   Equity
    (B)   Unity of Command
    (C)   Unity of Direction
    (D)   Stability

57   —– product comes under Petrochemical Industry.
    (A)   Vehicles
    (B)   Plastic
    (C)   Wood
    (D)   Paper

58   GATT started in 1948 at.
    (A)   Masco
    (B)   Washington
    (C)   Geneva
    (D)   Russia

59   Entertainment Business belongs to industry.
    (A)   Manufacturing Industry
    (B)   Trade Industry
    (C)   Service Industry
    (D)   All of The Above

60   GDP stands for.
    (A)   Gross Domestic Product
    (B)   Global Development Phenomenon
    (C)   General Domestic Product
    (D)   Global Domestic Product

61   Who is directly responsible for profit & loss in the business?
    (A)   Supervisor
    (B)   Chief Executive Officer
    (C)   Worker
    (D)   Factory Manager

62   Mr. Ram, Mr. Shyam & Mr. Kiran has started a business of Automobiles in 2003, in that business Mr. Ram, Mr. Shyam & Mr. Kiran have invested Rs 500000/- Lakhs individually. But Mr. Ram & Mr. Shyam gives full attention towards the business and Mr. Kiran does not gives the attention towards business. so, in this type of business who is the sleeping partner
    (A)   Mr. Ram
    (B)   Mr. Shyam
    (C)   Mr. Kiran
    (D)   All of The Above

63   Which is not a cause of accidents in industry
    (A)   Due to Worker
    (B)   Due to Management
    (C)   Due to Natural cause
    (D)   Due to Government Policy

64   Any device which generates or provides power is known as
    (A)   tools
    (B)   Machinery
    (C)   Prime Mover
    (D)   plant

65   Which is a cause of accident due to management
    (A)   Overconfidence
    (B)   Faulty Equipment
    (C)   Unnecessary Daring
    (D)   Less Work Experience

66   According to minimum wages act, wages mean: —–.
    (A)   salary
    (B)   over time remuneration
    (C)   provident fund
    (D)   all of the above

67   Which is not the objective of financial management
    (A)   Profit Maximation
    (B)   Maximation of wealth
    (C)   Maintenance of liquid assets
    (D)   unfair or no returns to shareholders

68   Working capital is not used for.
    (A)   Land Purchase
    (B)   Material Purchase
    (C)   Marketing of Product
    (D)   Salary of workers

69   Postponement of tax liability means
    (A)   Inherited personal funds
    (B)   Depreciation provisions
    (C)   Retained equity earnings
    (D)   Deferred taxation

70   The tax in which impact and incidence are on the same person. It is not intended to be shifted.
    (A)   Custom Duty
    (B)   Sales Tax
    (C)   Excise Duty
    (D)   Gift Tax

71   NSE stock exchange market is located in —–
    (A)   Jaipur
    (B)   Pune
    (C)   Mumbai
    (D)   London

72   Collective stock of items which is required for routine functioning of industry means —–
    (A)   Inventory
    (B)   Record
    (C)   Database
    (D)   List

73   Which of the following is not an objective of inventory management?
    (A)   To purchase material at minimum cost
    (B)   To purchase material at right time
    (C)   To purchase material in right quantity
    (D)   All of The Above

74   What is essential for successful purchase
    (A)   Right contract
    (B)   Right Quality
    (C)   Right sources
    (D)   All of The Above

75   In ABC analysis which category of item is having average importance
    (A)   Category A
    (B)   Category B
    (C)   Category C
    (D)   All of The Above

76   —– is the formal contract between supplier and purchaser
    (A)   Purchase order
    (B)   Tender
    (C)   Quotation
    (D)   All of The Above

77   —– and —– are the two versions of goals of the financial management of the firm.
    (A)   Profit maximization, Wealth maximization
    (B)   Production maximization, Sales maximization
    (C)   Sales maximization, Profit maximization
    (D)   Value maximization, Wealth maximization

78   An industrial concern is invested in assets like plant, building, and land is
    (A)   Working capital
    (B)   Variable capital
    (C)   Fixed capital
    (D)   Operating capital

79   Budget refers to
    (A)   Planned target of performance
    (B)   Steps of handling future activities
    (C)   Systematic action and allocation of resources
    (D)   Statement of expected results expressed in numerical terms

80   Income tax and Property Tax falls under
    (A)   Indirect Tax
    (B)   Service Tax
    (C)   Direct Tax
    (D)   All of the above

81   What are the functions of material management?
    (A)   Material Planning
    (B)   Purchasing
    (C)   Store Management
    (D)   All of the above

82   ABC analysis helps senior manager to control
    (A)   Inventory Cost
    (B)   Purchase Cost
    (C)   Total Cost
    (D)   None of the above

83   Improving quality through small, incremental improvements is a characteristic of what type of quality management system
    (A)   Just-in-time
    (B)   Six Sigma
    (C)   Total Quality Management
    (D)   Kaizen

84   A fundamental attribute of TQM is
    (A)   Drawing control chart
    (B)   Having team meetings
    (C)   Direct involvement of Top management
    (D)   Meeting ISO 9000 audit

85   Benchmarking determines
    (A)   Customer requirement
    (B)   Process capability
    (C)   Standards
    (D)   Getting ISO 9000 audit

86   In P&L account Extra Ordinary Items means
    (A)   Commission on sales
    (B)   Investment on which returns are not possible
    (C)   Materially large revenue or loss
    (D)   Non-controlling ownership

87   Following are Liabilities of Business
    (A)   FDs with Bank
    (B)   Receivables from Sale
    (C)   Short Term Borrowings
    (D)   Stock In Progress

88   In Financial Management Liquidity Decisions are related to
    (A)   Dividend to Shareholders
    (B)   Long Term Decisions
    (C)   Cash Management
    (D)   Bankruptcy

89   Which of following is Method of raising Long Term Capital?
    (A)   Equipment Leasing
    (B)   Hire Purchase
    (C)   Preference Shares
    (D)   Trade Credit

90   As per the definition in Indian Factory Act, a person working in Factory having an age of 17 years is:
    (A)   Child
    (B)   Not eligible to work in Factory
    (C)   Adolescent
    (D)   Adult

91   Trivial Accident means:
    (A)   Of Less Importance
    (B)   Resulting Death of Employee
    (C)   Disabling employee for more than 3 days
    (D)   Near Accident

92   In accident prevention, Safe Workplace Layout does not include:
    (A)   Obstruction Free Passageways
    (B)   Antiskid Floors
    (C)   Separate Storage of Inflammable Materials
    (D)   Enough Height of Workrooms

93   ‘Balance’ in Organization Principles intends to —–
    (A)   All departments have same workforce
    (B)   kind of organization structure
    (C)   All departments are equally developed
    (D)   All departments are flexible

94   I wanted to maintain secrecy of business. Which business type shall I select?
    (A)   Single Ownership
    (B)   Partnership
    (C)   Joint Stock Company
    (D)   Public Undertaking

95   A company has multiples kind of products like Pharmaceutical, Cosmetics, FMCG. Which type of departmentation will it prefer?
    (A)   By Product
    (B)   By Process
    (C)   By Function
    (D)   None of the above

96   In organization process activities cannot be grouped on the basis of
    (A)   Policy
    (B)   Economy
    (C)   Control
    (D)   Coordination

97   Authority delegation allows employee
    (A)   To make changes in schedule
    (B)   To make changes in design
    (C)   To perform better as per responsibility
    (D)   To make changes in job timing

98   Following organization is limited to small concerns
    (A)   Line
    (B)   Line & Staff
    (C)   Functional
    (D)   Committee

99   Organizing does not means
    (A)   Determining Activities
    (B)   Defining Authorities &Responsibilities
    (C)   Assigning People to Jobs
    (D)   Developing alternate methods to do job

100   Stability in Principles of Management indicates
    (A)   Job Security
    (B)   Turnover
    (C)   Harmony
    (D)   Promotion

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