Multiple Choice Questions (MCQs)

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1   —– is an instrument of management used as an aid in planning, programming and control of business activity
    (A)   Finance
    (B)   Capital
    (C)   Budget
    (D)   VAT

2   —– is the process of verifying or determining whether products or services meet or exceed customer expectations
    (A)   Quality assurance
    (B)   Quality Control
    (C)   Quality circle
    (D)   Quality management

3   IT sectors involves —–
    (A)   ITES
    (B)   Telecommunication
    (C)   Both i & ii
    (D)   None of above

4   Henry Fayal proposed —– no. of principle of management
    (A)   10
    (B)   20
    (C)   14
    (D)   30

5   —– gives power in the hands of center
    (A)   responsibility
    (B)   centralization
    (C)   authority
    (D)   discipline

6   concertation in work is possible by —–
    (A)   unity of command
    (B)   responsibility
    (C)   stability
    (D)   authority

7   Meeting is the —– communication
    (A)   written
    (B)   non verbal
    (C)   formal
    (D)   both i & ii

8   merits of functional organization
    (A)   Because of specialization, responsibility is fixed
    (B)   Expert advice can be received
    (C)   better quality of products can be produced
    (D)   all of the above

9   which are the essentials of organization
    (A)   organizational chart
    (B)   delegation
    (C)   integration
    (D)   all

10   Minimum number of directors in public limited company are
    (A)   7
    (B)   2
    (C)   10
    (D)   3

11   Short term sources for finance are required for
    (A)   0 to 1 year
    (B)   1 to 5 years
    (C)   above 5 years
    (D)   none

12   Important terminologies related to profit and loss account
    (A)   Opening stock
    (B)   Purchases
    (C)   Sales
    (D)   All

13   C’ types of items of inventory are generally %of all Inventories
    (A)   20
    (B)   30
    (C)   50
    (D)   80

14   Procurement activity is —– and takes more time
    (A)   simple
    (B)   Complicated
    (C)   Difficult
    (D)   none

15   The —– keeps a track of inventory status for each item in the database
    (A)   lead time
    (B)   BOM
    (C)   inventory record file
    (D)   Product structure

16   Carrying cost consists of
    (A)   Interest on capital
    (B)   Storage cost
    (C)   Up keep inventory
    (D)   all

17   Quality cannot be
    (A)   Compromised
    (B)   Enforces discipline
    (C)   invisible
    (D)   none

18   —– adopts the policy of zero defect. There is no scope for rework and
    (A)   Delegation
    (B)   Globalization
    (C)   TQM
    (D)   EOQ

19   —– realize on the use of normal distributions to predict defective rates
    (A)   5S
    (B)   Six sigma
    (C)   ERP
    (D)   EOQ

20   —– may result in 25 to 30 suggestion per employee, per year and over 90 % of those are implemented.
    (A)   Kaizen
    (B)   5S
    (C)   TQM
    (D)   Six sigma

21   Line organization is suitable for
    (A)   small concerns free from complexities
    (B)   automatic & continuous process
    (C)   a & b
    (D)   larger enterprises

22   The process of grouping is known as
    (A)   specialization
    (B)   departmentation
    (C)   coordination
    (D)   all of above

23   Span of control may vary between
    (A)   1 to 10
    (B)   5 to 7
    (C)   2 to 20
    (D)   all of above

24   Following is not a type of organization
    (A)   project
    (B)   line
    (C)   process
    (D)   functional

25   Scientific management could be summarized as
    (A)   science, not rule of thumb
    (B)   harmony, not discord
    (C)   cooperation, not
    (D)   all of above

26   Henry Fayol is the father of
    (A)   principle of management
    (B)   functions of organization
    (C)   theory of management
    (D)   none of above

27   Middle management includes
    (A)   superintendents
    (B)   supervisors
    (C)   Owners
    (D)   foreman

28   administration consist of deciding
    (A)   group of persons
    (B)   goals
    (C)   policies
    (D)   b & c

29   Following is not a function of management
    (A)   forecasting
    (B)   directing
    (C)   motivation
    (D)   purchasing

30   Organizing has following objective
    (A)   assigning peoples to activities
    (B)   providing suitable physical factors
    (C)   indicating the relative authority
    (D)   all of above

31   Which is an example of process industry
    (A)   BHEL
    (B)   Ranbaxy
    (C)   Raymond
    (D)   RCF

32   Which is the example of trader
    (A)   sub dealer
    (B)   distributer
    (C)   retailer
    (D)   all of above

33   Business is a legally recognized organization which provide
    (A)   goods
    (B)   money
    (C)   services
    (D)   goods & services

34   A public limited company is an association of a minimum members
    (A)   7
    (B)   10
    (C)   20
    (D)   50

35   Which is a category of cause of accident
    (A)   social
    (B)   environmental
    (C)   personal
    (D)   b & c

36   Minimum rates of wages may be fixed by
    (A)   by the hours
    (B)   by the day
    (C)   by the month
    (D)   all of above

37   Followings are fixed capital
    (A)   furniture
    (B)   land
    (C)   equipment
    (D)   all of above

38   Financial statements include
    (A)   profit & loss statement
    (B)   ledger book
    (C)   balance sheet
    (D)   both A and C

39   Sources of working capitals are
    (A)   land
    (B)   dividends
    (C)   long term borrowings
    (D)   b & c

40   A right granted to an individual or group to market a company’s product within a certain territory is
    (A)   trade credit
    (B)   franchising
    (C)   cash credit
    (D)   discounting of bill

41   Which of the following factors affect a production budget?
    (A)   inventory policies
    (B)   plant capacity
    (C)   continuity of production
    (D)   all of above

42   A detailed list of movable items which are required for manufacturing is
    (A)   purchase order
    (B)   inventory
    (C)   balance sheet
    (D)   account statement

43   Which is the operational objective of inventory management
    (A)   avoid over-stocking &under-stocking
    (B)   to maintain investment in inventory
    (C)   to keep material cost under control
    (D)   b & c

44   ABC analysis is based on the principle
    (A)   vital many-trivial few
    (B)   vital few-trivial many
    (C)   only vital
    (D)   only trivial

45   % of total consumption cost for B class items is
    (A)   15 to 25
    (B)   10 to 12
    (C)   50 to 60
    (D)   95 to 100

46   EOQ can be used by
    (A)   departmental stores
    (B)   make-to-stock manufacturers
    (C)   a & b
    (D)   none of above

47   Elements of quality circles are
    (A)   top management
    (B)   facilitator
    (C)   middle management
    (D)   a & b

48   A nominated senior person of an area & ought to catalyze & stimulates the quality circles is
    (A)   coordinator
    (B)   facilitator
    (C)   circle leader
    (D)   member

49   Defect rate in 3 sigma level is
    (A)   6210
    (B)   66807
    (C)   405
    (D)   233

50   Which is not a type of working capital?
    (A)   Temporary working capital
    (B)   Gross working capital
    (C)   Legal working capital
    (D)   Net working capital

51   A is a book or computer file in which all monetary transactions are originally entered.
    (A)   Budget
    (B)   Journal
    (C)   An Account
    (D)   Ledger

52   Fixed capital is required for –.
    (A)   Land
    (B)   Equipment and Machinery
    (C)   Building
    (D)   All

53   Which is not included in “Wage” under “Minimum Wages Act”?
    (A)   Gratuity
    (B)   Travelling Allowance
    (C)   P. F.
    (D)   All

54   From following types of acts which is not a type of Industrial Act?
    (A)   Factory Act
    (B)   Rowlett Act
    (C)   Workmen compensation act
    (D)   All of the above

55   Which is not the advantage of joint stock company?
    (A)   No Autocracy
    (B)   Effective division of work
    (C)   Easy to form
    (D)   Business life is longer.

56   Functional organization is suitable for –.
    (A)   SSI
    (B)   For highly specialized work
    (C)   LSI
    (D)   MSI & LSI

57   Which type of organization structure is shown below?
    (A)   Line Organization
    (B)   Functional Organization
    (C)   Line and Staff Organization
    (D)   None of the above

58   About ‘Sleeping Partner’ which statement is wrong?
    (A)   Do not share profit / loss
    (B)   They do investment
    (C)   Do not active in daily work
    (D)   Also called as silent partner

59   What is like a brake system in automobiles?
    (A)   Management
    (B)   Planning
    (C)   Controlling
    (D)   Directing

60   Insurance which provides protection against loss or damage caused by
    (A)   Volcano Insurance
    (B)   Terrorism Insurance
    (C)   Wind Storm Insurance
    (D)   Crop Insurance

61   It is not a type of Business
    (A)   Service
    (B)   Manufacturing
    (C)   Trade
    (D)   Hospitality

62   Bonds/Debentures or Team loans from Banks are called as –.
    (A)   Share Capital
    (B)   Other long-term liabilities
    (C)   Reserves and Surplus
    (D)   Long term provisions

63   Goodwill, Brands/trademarks, Computer Software, Mining rights, Copyrights &patents are known as —–
    (A)   Tangible Assets
    (B)   Capital work-in-progress
    (C)   Intangible Assets
    (D)   None

64   Economic Order Quantity of material takes into account ordering costs and —–
    (A)   Carrying Costs
    (B)   Lead time
    (C)   Re-order level
    (D)   Maximum level

65   Modern Technique of Material management is –.
    (A)   ISO
    (B)   MRP
    (C)   TQM
    (D)   EOQ

66   Order costs and Carrying costs are –.
    (A)   Fixed
    (B)   Variable
    (C)   Semi-Variable
    (D)   Indirect costs

67   One of the principles of TQM, Quality is –.
    (A)   A long-term investment or asset
    (B)   A short-term investment or asset
    (C)   Not an investment or asset
    (D)   None of these

68   5S includes the phases in following order —–
    (A)   Sort-Set in order-Shine-Sustain-Standardize
    (B)   Sort-Set in order-Shine-Standardize-Sustain
    (C)   Sustain-Standardize-Shine-Set in order-Sort
    (D)   Set in order-Standardize-Shine-Sort-Sustain

69   the occupation of a farmer falls under
    (A)   primary sector
    (B)   tertiary sector
    (C)   secondary structures
    (D)   manufacturing sector

70   the sector of India attracts the highest foreign investment
    (A)   chemical
    (B)   pharmaceutical
    (C)   textile
    (D)   information technology

71   the relaxation of rules and regulation on industries is known as
    (A)   liberalization
    (B)   privatization
    (C)   modernization
    (D)   industrialization

72   the author of principles of scientific management was
    (A)   F.W. Taylor
    (B)   Harold Koontz
    (C)   Mary Follet
    (D)   None of the above

73   the fourteen principles of management were put forth by
    (A)   Henry Fayol
    (B)   F.W. Taylor
    (C)   Gilbreth
    (D)   Juran

74   forecasting is
    (A)   Thinking before doing
    (B)   judgement of future
    (C)   Thinking during doing
    (D)   deciding in advance

75   the right to issue orders or make decisions is called
    (A)   responsibility
    (B)   authority
    (C)   supervision
    (D)   controlling

76   Ashoka hotel nearby house is owned by my friend’s father, it is example of
    (A)   proprietorship
    (B)   Partnership
    (C)   public sector
    (D)   Joint Stock Company

77   My friend met with a car accident because the brakes could not be applied this can be termed as which form of accident
    (A)   Mechanical causes of an Accident
    (B)   Natural Cause of an accident
    (C)   Human error
    (D)   All the above

78   Various Cost associated with ordering and receiving goods are known as
    (A)   holding cost
    (B)   procurement cost
    (C)   Resource Planning
    (D)   inventory cost

79   the integration process of business management is called
    (A)   EOQ
    (B)   ABC Analysis
    (C)   ERP
    (D)   None of the above

80   Customer should be the focus is an important attribute of
    (A)   Total quality management
    (B)   quality control
    (C)   quality assurance
    (D)   i, ii, iii, and iv

81   the —– helps in finding the key cause of a problem
    (A)   Pareto’s chart
    (B)   All those who are working in the organization
    (C)   All those who are managers
    (D)   brainstorming

82   Rajesh is working for state electricity board, he has to attend a complain, before going to attend the complaint he has to take.
    (A)   license
    (B)   work permit
    (C)   order from the local authority
    (D)   none of the above

83   identify the major difference between share and debenture
    (A)   one is borrowed from the bank the other one from public
    (B)   one is the contribution of the individual the other is from public
    (C)   shareholders become the owners of the company and debenture holders are the creditors of the company
    (D)   there is no difference.

84   one of the following is not a part of material resource planning
    (A)   production schedule
    (B)   bill of materials
    (C)   inventory records
    (D)   details of the employees

85   In ABC analysis —– items are costly and significant
    (A)   A items
    (B)   B items
    (C)   C items
    (D)   none of the above

86   It is not one of classification of Inventory,
    (A)   Raw Inventory
    (B)   In process inventory
    (C)   Finish inventory
    (D)   All of the above.

87   Which of the following is a fixed capital?
    (A)   Equipment and machinery cost
    (B)   Payment of employees
    (C)   Equipment and plant maintenance cost
    (D)   Transport and shipping expenses.

88   Causes of accidents can be,
    (A)   Technical cause
    (B)   Mechanical cause
    (C)   Personal factor
    (D)   All of the above.

89   —– is the ability to influence or to cause a person to perform and act.
    (A)   Power
    (B)   Authority
    (C)   Position
    (D)   Efficiency

90   Which are the aims of forming an organization?
    (A)   Team work
    (B)   Combined efforts
    (C)   Responsibility on all
    (D)   All of the above

91   The first and foremost activity of management is,
    (A)   Designing
    (B)   Organizing
    (C)   Planning
    (D)   Staffing

92   Which is not the part of 4 M’s management,
    (A)   Man
    (B)   Motivation
    (C)   Machine
    (D)   Money

93   GATT is created in —–
    (A)   1950
    (B)   1947
    (C)   1948
    (D)   1951

94   The WTO gave a real boost to the process of,
    (A)   Globalization
    (B)   Privatization
    (C)   Liberalization
    (D)   Industrialization

95   TQM believes in systematic training as a need for achieving —–
    (A)   Quality
    (B)   Quantity
    (C)   Accidents
    (D)   None of the above

96   Which of the following is not benefit of QMS?
    (A)   Higher rate of customer satisfaction
    (B)   motivated employees
    (C)   Continued improvement
    (D)   None of the above

97   Quality is a —– concept
    (A)   Relative
    (B)   vacuum
    (C)   Absolute
    (D)   All of the above.

98   LIC of India is an example of,
    (A)   Single ownership
    (B)   Partnership
    (C)   Government owned public limited
    (D)   joint stock company

99   First step-in decision-making is,
    (A)   Finding out an alternative
    (B)   Evaluation
    (C)   Analysis
    (D)   Recognize the problem

100   To prevent exploitation of the employees, this act aims at fixing minimum wages which they must get,
    (A)   The payment of wagesact,1936
    (B)   The minimum wagesact,1948
    (C)   The workmen’s compensation act,1923.
    (D)   The industrial disputeact,1947.

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