Multiple Choice Questions (MCQs)

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1   —– is used for all the current assets (Possessions or Property)
    (A)   Net working capital
    (B)   Gross working capital
    (C)   Temporary working capital
    (D)   Permanent working capital

2   For big industries, the amount of —– is very large.
    (A)   Depreciation provision
    (B)   Retained provision
    (C)   Deferred provision
    (D)   All of the above

3   A —– is one which relates to any of the function of an undertaking e.g., sales, production, cash, etc.
    (A)   Functional budget
    (B)   Fixed budget
    (C)   Variable budget
    (D)   All of the above

4   —– is a form of Indirect tax imposed on specified services called “Taxable Services”.
    (A)   Service tax
    (B)   Indirect tax
    (C)   Direct tax
    (D)   Income tax

5   —– is made up of list of the sub-assemblies as well as components that makes up the end product.
    (A)   Master production schedule
    (B)   Bill of material
    (C)   Material resource planning
    (D)   Inventory record file

6   Applications of six sigma are —–
    (A)   Maximize quality
    (B)   Identify ways to increase production capacities of present equipment
    (C)   Increases the cycle time for hiring and training new employees in organization
    (D)   All of the above

7   A quality policy makes a foundation for —–
    (A)   Commitment to quality
    (B)   Objective related improvement
    (C)   Objective related to customer requirements
    (D)   All of the above

8   A plan for the co-ordination of resources and expenditures
    (A)   Accounts
    (B)   Finance
    (C)   Ledger
    (D)   Budget

9   Which one of the following is not a type of share?
    (A)   Cumulative share
    (B)   Fixed share
    (C)   Deferred share
    (D)   Preference share

10   The sum that every shareholder gets is known as
    (A)   Amount
    (B)   Dividend
    (C)   Shares
    (D)   Capital

11   Person whose age is below 18 years is called a
    (A)   Dependent
    (B)   Workman
    (C)   Minor
    (D)   None of above

12   Industrial accidents are of the following types:
    (A)   fatal
    (B)   major
    (C)   minor
    (D)   All of the above

13   In order to have flexibility, the maintenance activities must be supported by —activities
    (A)   Co-ordinate
    (B)   Adaptive
    (C)   Supportive
    (D)   Financial

14   Departmentation helps to improve of an organization.
    (A)   Effectiveness
    (B)   Life
    (C)   Quality
    (D)   Skills

15   A business plan depends upon the information of
    (A)   Product
    (B)   Material
    (C)   Finance
    (D)   Market

16   —– is the right to issue order or make decisions
    (A)   To manage
    (B)   Government policy
    (C)   Supervise
    (D)   Authority

17   The function of employing eligible people for the company
    (A)   Planning
    (B)   Staffing
    (C)   Strategy
    (D)   Mission

18   According to Drucker the purpose of business
    (A)   To get money
    (B)   To acquire success in market
    (C)   To satisfy customers
    (D)   To create and keep

19   What does a business provide to the customer in exchange of their money?
    (A)   Goods and services
    (B)   Profit and services
    (C)   Satisfaction and reliability
    (D)   Knowledge and happiness

20   Main heads of income are
    (A)   Salary
    (B)   House property
    (C)   Profit in business
    (D)   All of the above

21   Working Capital is calculated as
    (A)   Working Capital=Current Assets-Current Liabilities
    (B)   Capital=Fixed Assets-Current Liabilities
    (C)   Working Capital=Current Assets-Fixed Liabilities
    (D)   None

22   Which are the most important items
    (A)   A item
    (B)   B item
    (C)   C item
    (D)   None of these

23   Fill the name of inventory in the blank space provided
    (A)   Raw material
    (B)   Indirect material
    (C)   Work in progress
    (D)   Finished goods

24   Purchasing is one of the functions of management
    (A)   Production
    (B)   Material
    (C)   Design
    (D)   None of these

25   In inventory management by ABC analysis A items most costly, item C are inexpensive and item B have cost between A and B which item is having highest inventory
    (A)   Item A
    (B)   Item B
    (C)   Item C
    (D)   Item A and C

26   State owned or Co-operative businesses have one of their main objectives as the generation of………….
    (A)   (a) Loss
    (B)   (b) Profit
    (C)   (c) Service the society/nation
    (D)   (d) none

27   A commercial, industrial of professional activity undertaken by an individual or a group, e.g., the purchase & Sale of goods, providing services etc. in an attempt to make a profit is called
    (A)   (a) Budget
    (B)   (b) Business
    (C)   (c) Hospital
    (D)   (d) Education

28   Following are mentioned few duties. Which is not the duty of management?
    (A)   a) To keep stability
    (B)   b) To reduce wastages
    (C)   c)To motivate staff
    (D)   d)To do manufacturing

29   …………gives power in the hands of center.
    (A)   a) Responsibility
    (B)   b) Centralization
    (C)   c)Authority
    (D)   d)Discipline

30   Which of the following is one of the principles of organization?
    (A)   Order
    (B)   Span of Control
    (C)   Scalar Chain
    (D)   None of the above

31   Which type of organizational structure can be applied to small scale Industry?
    (A)   Line
    (B)   Line & Staff
    (C)   Functional
    (D)   None of the above

32   What is the function of Gang Boss?
    (A)   Repairing of Machines
    (B)   Setting up Jobs on Machine
    (C)   Deciding cutting tool and
    (D)   Inspection

33   Which of the following is type of Departmentation?
    (A)   By Product
    (B)   By Design
    (C)   By Quality
    (D)   None of the above

34   Which of the following is not a form of ownership?
    (A)   Joint Stock
    (B)   Proprietorship
    (C)   Partnership
    (D)   Dealership

35   Which of the following may be the cause of accident?
    (A)   a) Overconfidence of employee
    (B)   b) Proper Training
    (C)   c)Sound Knowledge
    (D)   d)None of the above

36   Which of the following is preventive measure of accident?
    (A)   a) Proper working condition
    (B)   b) Proper wages
    (C)   c)Proper feedback system
    (D)   d)None of the above

37   Finance may be defined as art & science of ……….
    (A)   Managing Material
    (B)   Managing Money
    (C)   Managing Men
    (D)   Managing Machinery

38   Fixed capital is the capital which is needed to meet the……….
    (A)   Short term purpose
    (B)   Long term purpose
    (C)   Medium term purpose
    (D)   None of the above

39   Balance sheet is a statement of……………
    (A)   a) Assets
    (B)   b) Liabilities
    (C)   c)Capital
    (D)   d) All of the above

40   A fee levied by a government on a product, income or activity is called
    (A)   Tax
    (B)   Duty
    (C)   Fines
    (D)   None of the above

41   Excise tax are…………. Tax whereas custom duties are taxes
    (A)   a) Inland, Border
    (B)   b) Border, Inland
    (C)   c)Higher, lower
    (D)   d)None of the above

42   Percentage of total inventory for “A” category material is………….
    (A)   a) less than 10%
    (B)   b)10-20%
    (C)   c)70-80%
    (D)   d)None of the above

43   The five great “M” of management are
    (A)   a) Money, Methodology, Mobility, Machine, Management
    (B)   b) Men, Machine, Money, Material, Method
    (C)   c)Management, Marketing, material, Mobility, Men
    (D)   d)None of the above

44   Inventory Control is concerned with………….
    (A)   a) Acquisition
    (B)   b) Storage & Handling
    (C)   c)Use of Inventories
    (D)   d)All of the above

45   Total Cost is calculated by adding
    (A)   a) Order quantity &carrying cost
    (B)   b) Purchase cost & selling cost
    (C)   c)Procurement cost &carrying cost
    (D)   d)carrying cost & tax

46   Objective of Quality Circle is….
    (A)   To identify problems
    (B)   To solve the problems
    (C)   Both a & b
    (D)   None of the above

47   ISO stands for…….
    (A)   Indian Standard Organization
    (B)   International Organization for Standardization
    (C)   Indian Organization for Standardization
    (D)   International Standard Organization

48   Which of the following words does not include in 5S?
    (A)   a) Sorting
    (B)   b) Straighten
    (C)   c)Shining
    (D)   d)Safety

49   Which one of the following is the leading software exporter from India?
    (A)   a) Bangalore
    (B)   b) Hyderabad
    (C)   c)Chennai
    (D)   d)Mumbai

50   —– reduces uncertainty
    (A)   a) Working
    (B)   b) Planning
    (C)   c)organizing
    (D)   d)Leading

51   —– is the judgement of future
    (A)   a) Forecasting
    (B)   b) Planning
    (C)   c)Mission
    (D)   d)organizing

52   The process of inspiring the subordinates to put in their best is known as
    (A)   a) Motivation
    (B)   b) Teamwork
    (C)   c)Management
    (D)   d)Leadership

53   Which is not type of communication
    (A)   a) Voice mails
    (B)   b) publications
    (C)   c)formal presentation
    (D)   d)listening

54   The process of monitoring, comparing & correcting is called —–
    (A)   a) Coordinating
    (B)   b) controlling
    (C)   c)leading
    (D)   d)organizing

55   For a manager, to control or direct the work to an employee, the manager must
    (A)   a) Line authority
    (B)   b) responsibility
    (C)   c)Referent power
    (D)   d)Staff authority

56   Who is responsible for the actual operations of various departments?
    (A)   Top management
    (B)   Board of directors
    (C)   Middle management
    (D)   Frontline Management

57   Getting work done with a minimum of effort, expense or waste is the definition
    (A)   Efficiency
    (B)   Effectiveness
    (C)   Productivity
    (D)   Planning

58   Day as per factory act is:
    (A)   6am to 6pm
    (B)   period of 12 hours
    (C)   period between 2 midnights
    (D)   None of the above

59   Financial management aims at
    (A)   financial control
    (B)   control of cash
    (C)   Management of earnings
    (D)   All of the above

60   Working capital is the capital which is needed to meet the…………
    (A)   Day to day transaction
    (B)   Short term purpose
    (C)   Long term purpose
    (D)   None of the above

61   —– budget is the projection of cash inflow & outflow for a particular time period in future
    (A)   cash
    (B)   sales
    (C)   material
    (D)   capital expenditure

62   The balance sheet shows liabilities & assets of the
    (A)   a) sales
    (B)   b) company
    (C)   c)production
    (D)   d)owner

63   Inventory control means timely availability of all kind of materials
    (A)   a) true
    (B)   b) false
    (C)   c)can’t predict
    (D)   d)partly true

64   5″S” designed to
    (A)   organize work
    (B)   increase efficiency
    (C)   create a safe work place
    (D)   all of these

65   Cause and effect diagram is used in
    (A)   problem identification
    (B)   field visits
    (C)   vendor surveys
    (D)   problem analysis

66   Why safety is necessary in Industry?
    (A)   To protect the employees from injuries or accident
    (B)   To minimize wastage
    (C)   To increase productivity
    (D)   All of the above

67   Daily working hours of an adult worker should not exceed —–
    (A)   6 hours
    (B)   8 hours
    (C)   9 hours
    (D)   10 hours

68   How many members are required to start a public limited company?
    (A)   Minimum 7
    (B)   Minimum 2
    (C)   Minimum 3
    (D)   None of the above

69   Which of the following should be included in partnership deed?
    (A)   Nature of the business
    (B)   Date of starting partnership
    (C)   Shares of profit and losses
    (D)   All of the above

70   In private limited company number of members are limited to —–
    (A)   100
    (B)   150
    (C)   50
    (D)   60

71   Business owned by single person is known as —–
    (A)   Proprietorship
    (B)   Private limited
    (C)   Partnership
    (D)   Joint stock

72   Proportional development of each department means
    (A)   Balance
    (B)   Stability
    (C)   Flexibility
    (D)   Progress

73   Passing down some work to his/her subordinates is known as
    (A)   Delegation
    (B)   Flexibility
    (C)   Authority
    (D)   Responsibility

74   Which of the following function of management includes recruitment?
    (A)   Planning
    (B)   Coordinating
    (C)   Decision making
    (D)   Staffing

75   Which of the following includes in Top level management?
    (A)   Directors
    (B)   CEO
    (C)   General Manager
    (D)   All of the above

76   Which of the following post comes under middle level management?
    (A)   Director
    (B)   Branch Manager
    (C)   Foreman
    (D)   Supervisor

77   Frank B. Gilbreth worked on —–
    (A)   Human relation
    (B)   Time and Motion study
    (C)   Daily Balance sheet
    (D)   None of the above

78   Government established SEZ are for motivating —–
    (A)   Textile Industry
    (B)   Banking sector
    (C)   IT Industry
    (D)   All of the above

79   Which of the following is programmes undertaken by Government of India?
    (A)   Rastriya Krishi Vikas
    (B)   National Food Security
    (C)   National Horticulture
    (D)   All of the above

80   Producing more useful product from raw material is known as —–
    (A)   Trading
    (B)   Service
    (C)   Designing
    (D)   Manufacturing

81   Financial Institutions —–
    (A)   Insurance companies
    (B)   Industrial financial management
    (C)   Industrial development corporation
    (D)   All of the above

82   Shares means —–
    (A)   Shares do not have maturity period
    (B)   Shareholder is the real owner of the company.
    (C)   Only a
    (D)   Both a& b

83   Debentures is an —–
    (A)   Unsecured bonds issued by company.
    (B)   It has fixed rate of interest& fixed maturity period.
    (C)   Only a
    (D)   Both A & B

84   Productions budget shows —–
    (A)   Shows productions
    (B)   Shows quality and quantities
    (C)   Shows departmental budget & gives total no of estimation production, scheduling of operation
    (D)   All of the above

85   MRP is —–
    (A)   Maximum Retail Price
    (B)   Material Requirement Planning
    (C)   Material Reliable Planning
    (D)   Management of Resource Project

86   ABC is —–
    (A)   Always Better Control
    (B)   Always Basic Control
    (C)   Always Better concept
    (D)   None of the above

87   The cost represented by material fluctuates and may comprise between % of the total project cost.
    (A)   20-50%
    (B)   25-50%
    (C)   30-60%
    (D)   25-45%

88   5. Percentage of total inventory for „C‟ category material is —–
    (A)   Less than 10%
    (B)   10 to 20%
    (C)   70 to 80%
    (D)   None of the above

89   Which of the following is not a key feature of TQM?
    (A)   Continuous improvement
    (B)   Team work, trust and empowerment
    (C)   Establishing clear specification
    (D)   Identify customers and their needs

90   LPO stands for –.
    (A)   A) Legal Process Outsourcing
    (B)   B) Limited Process Outsourcing
    (C)   C)Limited Procedure Outsourcing
    (D)   D) Last Procedure Outsourcing

91   Annual growth of approximate —– is recorded in last five years by service
    (A)   A)10%
    (B)   B)30%
    (C)   C)20%
    (D)   D)5%

92   Following is not advantage of globalization
    (A)   Increased competition
    (B)   Huge amount of foreign investment
    (C)   Access advanced technology
    (D)   Access to external financing

93   Following is not principle of management-
    (A)   Initiative
    (B)   Scalar chain
    (C)   Staffing
    (D)   Responsibility

94   —– can be defined as the process by which a manager guides and influences the work of his subordinates
    (A)   communication
    (B)   leadership
    (C)   motivation
    (D)   All of the above

95   The —– process transforms plans into reality
    (A)   Planning
    (B)   Organizing
    (C)   directing
    (D)   All of the above

96   Advantages of line organization are
    (A)   Easy communication among employees
    (B)   almost no confusions exist
    (C)   Working speed in fast
    (D)   All of the above

97   Which is not the effect of accident on the worker?
    (A)   Production stoppage
    (B)   Injury to body
    (C)   Loss of job
    (D)   Financial loss

98   Internal sources are
    (A)   Retained earnings
    (B)   Depreciation provisions
    (C)   Deferred taxation
    (D)   All of the above

99   The amount of working capital required depends on —–
    (A)   Time required for manufacturing/selling the product
    (B)   Credit facilities offered by suppliers
    (C)   Credit facilities offered to the customers
    (D)   All

100   The budgeting process usually begins with a —– budget
    (A)   Master
    (B)   Sales
    (C)   Materials
    (D)   Direct labour

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