Industrial Organization and Management MCQs - MSBT & Autonomous

22509:Industrial Organization and Management IOM - MCQs



Here we providing you a complete set of industrial Organization and Management (IOM) MCQs. The fluetcode.blogspot.com provides all the diploma and engineering-related material for students for free. This MCQs set contains all the necessary MCQs from diploma and engineering syllabus. 


CHAP 01: Overview of Business

 

1.      Types of Business ____

a)     Services        

b)    Manufacturing

c)     Trade

d)    All of above

Ans.:  (d)

2.      Service enterprise provides the services that are called as _____

a)     Intangible Goods

b)    Manufacturing

c)     All of above

d)    None of above

Ans.:  (a)

3.      Trading enterprises may be found operating in the form of _____

a)     Wholesale

b)    Investment trusts

c)     (a) and (b)

d)    None of above

Ans.: (c)

4.      Industrial sector involves _____

a)     Construction

b)    Fisheries

c)     Textile

d)    All of above

Ans.: (d)

5.      Engineering industrial sectors not involves ____

a)     Civil

b)    Mechanical

c)     Chemical

d)    Filament yard

Ans.: (d)

6.      Textile industrial sectors involves

a)     Petrochemical

b)    Sericulture

c)     Tabacco

d)    Seeds

Ans.: (b)

7.      Top agro industry in India is ____

a)     Fabindia

b)    Pidilite

c)     DuPont India

d)    None of above

Ans.: (c)

8.      It sectors Involves ____

a)     ITES

b)    Telecommunication

c)     (a) and (b)

d)    None of above

Ans.: (c)

9.      ITES stands for ____

a)     IT Enabled Services

b)    IT Enterprise Services

c)     IT Enabled System

d)    Industry Telecomm Enabled Services

Ans.: (a)

10.  BPO Stands for _____

a)     Business Procedure Outsourcing

b)    Business Process Outsourcing

c)     Business Process Organization

d)    Business Procedure Organization

Ans.: (b)

11.  KPO stands for _____

a)     Knowledge Procedure Outsourcing

b)    Knowledge process Outsourcing

c)     Knowledge Process Organization

d)    None of above

Ans.: (b)

12.  LIPO stands for _____

a)     Legal Process Outsourcing

b)    Limited Process Outsourcing

c)     Limited Procedure Outsourcing

d)    Last Procedure Outsourcing

Ans.: (a)

13.  RPO stand for _____

a)     Research Procedure Outsourcing

b)    Read Process Outsourcing

c)     Research Process outsourcing

d)    None of above

Ans.: (c)

14.  _____ is backbone of Indian economy

a)     IT

b)    Textile

c)     Banking

d)    (a) and (c)

Ans.: (c)

15.  Indian central bank is _____

a)     Shamrao vital Co-operative Bank (SVC)

b)    State Bank Of India (SBI)

c)     Central Bank of India (CBI)

d)    Reserve Bank of India (RBI)

Ans.: (d)

16.  Insurance company categories _____

a)     Life insurance

b)    General Insurance

c)     All of above

d)    None of above

Ans.: (c)

17.  Major functions of insurance company _____

a)     To provide certainty

b)    To provide protection

c)     Share risk

d)    All of above

Ans.: (d)

18.  FTA Stands for _____

a)     Financial Transfer Arrival

b)    Foreign Transfer Arrival

c)     Foreign Tourist Arrival

d)    Foreign Tourist Arrangement

Ans.: (c)

19.  Hospitality industry categories _____

a)     Food and beverages

b)    Accommodations

c)     Travel and tourism

d)    All of above

Ans.: (d)

20.  ITDC stands for _____

a)     Indian Tourist development corporation

b)    Indian Tourism Development Corporation

c)     Indian Tourism Development Co-Operative

d)    Indian Tourism Data Corporation

Ans.: (b)

21.  India is awarded certification of _____ free country

a)     Cancer

b)    Polio

c)     Swine flu

d)    AIDS

Ans.: (b)

22.  India is awarded a certification POLIO free country In _____

a)     January 2011

b)    January 2009

c)     January 2014

d)    June 2011

Ans.: (a)

23.  India is awarded a certification of POLIO free country by ____

a)     Word Health Organization

b)    Word Health Center

c)     National Health Center

d)    None of above

Ans.: (a)

24.  LPG _____

a)     Liberalization, privatization, Globalization

b)    Liberate, Private, Globalization

c)     Liberate, Private, Global

d)    None of above

Ans.: (a)

25.  GATT stands for _____

a)     Global Agreement on Tariffs and Teide

b)    General Agreement on Tariffs and Trade

c)     General Agreement on Traffics and Trade

d)    General Agreement on Tariffs and Trade

Ans.: (d)

26.  GATT was created in _____

a)     1950

b)    1947

c)     1948

d)    1951

Ans.: (b)

27.  ITO stands for ______

a)     International Trance Organization

b)    International Test Organization

c)     Internal Trade Organization

d)    International Trade Organization

Ans.: (d)

28.  WTO stands for _____

a)     World Trade Organization

b)    World Test Organization

c)     Work Test Organization

d)    World Trade Organics

Ans.: (a)

29.  Cipla is a _____

a)     Textile industry

b)    Process industry

c)     Chemical Industry

d)    IT industry

Ans.: (c)

30.  Insurance companies are growing at the annual compound rate of _____

a)     100%

b)    15%-20%

c)     30%

d)    30%-40%

Ans.: (b)

(OPTIONAL: Unit 1)

 

1.     The year 1991 is famous for

Ans.: c (Globalization Policy, Liberalization were accepted by India)

 

2.     Following business pattern is not coming under service industry

Ans.: d (textile mill)

 

3.     Service industry is _____ sector in economy

Ans.: d (Tertiary)

 

4.     Annual growth of approximate ____ % is recorded in last five years by service industry

Ans.: b (30%)

 

5.     Following is the fastest growing sector in India now-a-days.

Ans.: c (Service)

 

6.     License permit raj in India was in this period

Ans.: a (1965-1990)

 

7.     Manufacturing sector contributes _____  % of India’s GDP

Ans.: c (15%)

 

8.     _____ % of workforce in India is working in manufacturing sector

Ans.: d (12%)

 

9.     _____  is willing exchange of goods

Ans.: b (Trade)

 

10.                        _____  is also called as commerce

Ans.: a (Trade)

 

11.                        Mechanism that allows trade is called as _____

Ans.: d (Market)

 

12.                        Domestic trade is also called as

Ans.: d (Internal trade)

 

13.                        Following is the main destination for capital inflows

Ans.: a (India)

 

 

14.                        Following is not among the top 5 countries in the list of our importers

Ans.: d (UK)

 

15.                        All exported and import activities are governed by

Ans.: a (Foreign Trade Policy)

 

16.                        SEZ means

Ans.: b (Special economic zones)

 

17.                        Which is the pioneering company with respect to iron and steel

Ans.: a (TISCO)

 

18.                        _____ is the apex authority of Government of India

Ans.: c (SAIL)

 

19.                        In _____ the first car was driven on the roads of India

Ans.: c (1898)

 

20.                        India is the largest market in the word for

Ans.: b (Three wheelers)

 

21.                        Match the pairs :

Ans.: c – 1-(b), 2-(c), 3-(d), 4-(a)

1.     Ashok Leyland – Chennai

2.     Suzuki – Gurgaon

3.     Mahindra – Nashik

4.     Kinetic – Pune

 

22.                        Following is ‘not’ the ‘challenge’ in front of automobile industry

Ans.: d (Investment)

 

23.                        Per capita consumption of paper in India is

Ans.: c (4 kg)

 

24.                        Following are the challenges in front of paper industry. Which one is wrong?

Ans.: a (Availability of labor)

 

25.                        Per capita consumption of cement in japan is 700kg. in India it is

Ans.: d (70 kg)

 

26.                        Which is not the challenge In front of cement industry?

Ans.: b (Less market size)

 

27.                        Old Indian textile industry was predominantly _____ based 

Ans.: a (Cotton)

 

28.                        Following is not the strength of textile industry

Ans.: c (Import of raw material)

 

29.                        Following is not the textile industry.

Ans.: c (IBP)

 

30.                        Following is not the chemical industry

Ans.: d (Sugar)

 

31.                        Following is not the agro industry

Ans.: d (Paper)

 

32.                        First nationalisation of 14 banks happened in

Ans.: a (1969)

 

33.                        Following bank is working for agriculture field

Ans.: c (NABARD)

 

34.                        Following is not associated with insurance

Ans.: d (ICC)

 

35.                        Which organization is at a number one positioning in India in insurance

Ans.: c (LIC)

 

 

 

 

 

 

 

UNIT 02: Management Process

 

1.      School of management are as follow :

a)      The classical school

b)      The behavior school

c)      The quantitative or management science school

d)      All of the above

Ans.: (d)

2.      _____ focuses on the ways to manage work and organizing more efficiently

a)      The classical school

b)      The behavior school

c)      The quantitative or management science school

d)      All of the above

Ans.: (a)

3.      The area of classical school are :

a)      Scientific Management

b)      Administrative Management

c)      Bureaucratic Management

d)      All of the Above

Ans.: (d)

4.      _____ mainly focused on the interactions and motivations of the individual within organizations. This school studied the behavior of employees in an organization

a)      The classical school

b)      The behavioral school

c)      The quantitative or management science school

d)      All of the above

Ans.: (b)

5.      The great thought of motivating the workers or employees for better results have come up from _____ of management.

a)     The classical school

b)    The behavioral school

c)     The Quantitative or management science school

d)    All of the above

Ans.: (b)

6.      _____ school added increasing quality of managerial decision making with the help of mathematics and statistics

a)     The classical school

b)    The behavioral school

c)     The quantitative or management science school

d)    All of the above

Ans.: (c)

7.      The main areas of quantitative or management science school are :

a)     Management science

b)    Operations management

c)     Management information systems

d)    All of the above

Ans.: (d)

8.      ____ proposed an idea of understanding the organization as a system that transforms inputs into outputs while in constant interaction with its environment.

a)     The classical school

b)    The behavioral school

c)     The quantitative or management science school

d)    The system school

Ans.: (d)

9.      The center point of ____ is about applying management principles and processes as per the unique characteristics of situation.

a)     The contingency school

b)    The behavioral school

c)     The quantitative or management science school

d)    The system school

Ans.: (a)

10.  ____ is an activity which defines the steps of how and when work will be dene effectively and efficiently.

a)     Planning

b)    Organizing

c)     Staffing

d)    Controlling

Ans.: (a)

11.  ____ is recruitment of right people at right place in an organization.

a)     Planning

b)    Organizing

c)     Staffing

d)    Controlling

Ans.: (c)

12.  ____ ensures that things fall within the standards defined by an organization and should not divert from it.

a)     Planning

b)    Organizing

c)     Staffing

d)    Controlling

Ans.: (d)

13.  Levels of management are :

a)     Strategical level

b)    Tactical level

c)     Operational level

d)    All of the above

Ans.: (d)

14.  The number of people working on lower level are largest than ____

a)     Strategical level

b)    Tactical level

c)     Operational level

d)    All of the above

Ans.: (b)

 

15.  On ____ only few people work as middle level managers

a)     Strategical level

b)    Tactical Level

c)     Operational level

d)    All of the above

Ans.: (b)

16.  At ____ only few people are present

a)     Strategical level

b)    Tactical level

c)     Operational level

d)    All of the above

Ans.: (a)

17.  Top level includes people like :

a)     Managing Directors (MD)

b)    Chairman

c)     Chief Executive Officers (CEO)

d)    All of the above

Ans.: (d)

18.  Top level in known as ____ because all important decision related to whole organization is taken by top management.

a)     Strategical level

b)    Tactical level

c)     Operational level

d)    All of the above

Ans.: (a)

19.  The functions of top level management are :

a)     Defining goal of an organization or business

b)    Defining mission and vision

c)     Making different long term policies for an organization

d)    All of the above

Ans.: (d)

20.  Middle level of management includes peoples who are designated as :

a)     Senior managers

b)    Junior managers

c)     Supervisors

d)    All of the above

Ans.: (d)

 

21.  Middle level is known as ____ of management

a)     Strategical level

b)    Tactical level

c)     Operational level

d)    All of the above

Ans.: (b)

22.  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

Ans.: (b)

23.  ____ middle level managers perform different management functions to achieve the vision of organizations as follows :

a)     Planning of their work

b)    Allocating different resources as required

c)     Monitoring the progress

d)    All of the above

Ans.: (d)

24.  Lower level know as ____

a)     Strategical level

b)    Tactical level

c)     Operational level

d)    All of the above

Ans.: (c)

25.  Lower level includes people like :

a)     Clerks

b)    Supervisor

c)     Data entry operators

d)    All of the above

Ans.: (d)

26.  The lower level operations could be day to day :

a)     Production

b)    Payment

c)     Purchase

d)    All of the above

Ans.: (d)

27.  The lower level operations could be day to day :

a)     sales

b)    receipts

c)     Stock taking

d)    All of the above

Ans.: (d)

28.  The functions done at lower level are :

a)     Conduct day to day activities

b)    Monitor daily Progress

c)     Reporting to middle level management

d)    All of the above

Ans.: (d)

29.  Administrator functions or duties are :

a)     Decision making

b)    Policy making

c)     Making necessary adjustments

d)    All of the above

Ans.: (d)

30.  ____ was main contributor in the scientific school

a)     Frank Gilbreth

b)    Lillian G

c)     Frederick W. Taylor

d)    Henry Gantt

Ans.: (c)

31.  Salient features of scientific management :

a)     Use of scientific methods to accomplish each an every task in the best way.

b)    The workers should be scientifically selected based on their skill sets, qualification and should be trained.

c)     Genius cooperation between workers and management is required

d)    All of the above

Ans.: (d)

32.  Scientific Management is essential because of following reasons :

a)     It uses scientific approach throughout the management activities

b)    Mathematical models are used to bring an innovation and radical changes in an organization.

c)     Selection and recruitment of the workers was strictly skill based

d)    All of the above

Ans.: (d)

33.  ____ was one of the renowned management thinkers. He was a French mining engineer

a)     Henry Fayol

b)    Lillian G

c)     Frederick W. Taylor

d)    Henry Gantt

Ans.: (a)

34.  ____ Major contribution to the management theory is his 14 principle of management that are based on his thoughts and experience.

a)     Henry Fayol’s

b)    Lillian Gilbreth’s

c)     Frederick W. Taylor’s

d)    Henry Gantt’s

Ans.: (a)

35.  Principle proposed by ____ are very useful for the contemporary manager to manage their work efficiently and efficiently

a)     Henry Fayol

b)    Lilian G

c)     Frederick W. Taylor’s

d)    Henry Gantt

Ans.: (a)

36.  Principle proposed by Henry Fayol are :

a)     Division of work

b)    Authority and responsibility

c)     Discipline

d)    All of the above

Ans.: (d)

37.  Principle proposed by Henry Fayol are _____

a)     Unity of direction

b)    Remuneration of personnel

c)     Centralization

d)    All of the above

Ans.: (d)

38.  ____ is proved to be a smart technique that allows everybody to do the job as per their skills and specialization.

a)     Division of work

b)    Authority and responsibility

c)     Discipline

d)    All of the above

Ans.: (a)

39.  ____ results into better output in terms of work.

a)     Division of work

b)    Authority and responsibility

c)     Discipline

d)    All of the above

Ans.: (a)

40.  If specialization or ____ is not used, the work done cannot be satisfactory.

a)     Division of the work

b)    Authority and responsibility

c)     Discipline

d)    All of the above

Ans.: (a)

41.  _____ Is a right for giving orders and the power to ensure obedience

a)     Division of work

b)    Authority and responsibility

c)     Discipline

d)    All of the above

Ans.: (b)

42.  ____ is given to a manager (supervisor) to get the work done from his or her subordinates.

a)     Division of work

b)    Authority

c)     Discipline

d)    All of the above

Ans.: (b)

43.  ____ ensures that once the work or work related orders are given to the subordinates, they becomes responsible for that work and also they need to obey all the instructions of authorize person.

a)     Division of work

b)    Authority

c)     Discipline

d)    All of the above

Ans.: (b)

44.  ____ is important not only for the individual but for an organization too.

a)     Division of work

b)    Authority

c)     Discipline

d)    All of the above

Ans.: (c)

45.  ____ mainly focuses on the specific authority that guides subordinates about what work has to be done and how it has to be done.

a)     Division of work

b)    Authority

c)     Discipline

d)    Unity of commands

Ans.: (d)

46.  ____ is about the unity of authority and plan of action

a)     Unity of direction

b)    Authority

c)     Discipline

d)    Unity of commands

Ans.: (a)

47.  Good ____ or salaries motivate people to work efficiently and make them satisfied and eventually they become loyal to the organization

a)     Unity of direction

b)    Remuneration

c)     Discipline

d)    Unity of commands

Ans.: (b)

48.  ____ has got many positive aspects. It helps in organizing things properly.

a)     Unity of direction

b)    Centralization

c)     Discipline

d)    Unity of commands

Ans.: (b)

49.  ____ allows employees to get involved in the process of decision making for better results.

a)     Unity of direction

b)    Centralization

c)     Discipline

d)    Unity of commands

Ans.: (b)

50.  ____ Organization is generally a hierarchical structure. There is always a chain of authority instead of a single authority.

a)     Scalar chain

b)    Centralization

c)     Discipline

d)    Unity of commands

Ans.: (a)

 

51.  Generally ____ flow of chain or direction of chain is from highest organizational authority to the lowest ranks.

a)     Scalar chain

b)    Centralization

c)     Discipline

d)    Unity of commands

Ans.: (a)

 

52.  As per the need organization, _____ of authority can be reduced or authorities may get added to this chain.

a)     Scalar chain

b)    Centralization

c)     Discipline

d)    Unity of commands

Ans.: (a)

53.  ____ is concern with the systematic arrangements made for men, machines and materials.

a)     Scalar chain

b)    Order

c)     Discipline

d)    Unity of commands

Ans.: (b)

 

54.  _____ is an organization is a blend of kindness and justice

a)     Scalar chain

b)    Order

c)     Equity

d)    Unity of commands

Ans.: (c)

55.  _____ has to be maintained is an organization while treating the employees.

a)     Scalar chain

b)    Order

c)     Equity

d)    Unity of commands

Ans.: (c)

56.  ____ refers to the planning. Only planning is not sufficient. It is to be ensured that work is done as per the plan mode.

a)     Scalar chain

b)    Order

c)     Equity

d)    Initiative

Ans.: (d)

57.  Management functions or duties are broadly classified into following categories

a)     Planning

b)    Organizing

c)     Directing

d)    All of the above

Ans.: (d)

58.  _____ can be defined as the set of steps to do the particular activity or activities in systematic manner.

a)     Planning

b)    Organizing

c)     Directing

d)    All of the above

Ans.: (a)

59.  The base of success of any project or goal of an organization is its _____

a)     Planning

b)    Organizing

c)     Directing

d)    All of the above

Ans.: (a)

60.  ____ is very important because remaining all functions of management are strictly dependent on the planning activity.

a)     Planning

b)    Organizing

c)     Directing

d)    All of the above

Ans.: (a)

61.  Objectives of good plan at department/ organizational level are :

a)     To achieve the departmental as well as organizational goal.

b)    To create the feasible work schedule and complete work within time limit.

c)     To utilize resources in proper way by minimizing wastage.

d)    All of the above

Ans.: (d)

62.  Objectives of good plan at departmental/Organizational level are

a)     For budgeting for different projects or works.

b)    Proper delegation of work

c)     Allocating rights and responsibilities

d)    All of the above

Ans.: (d)

63.  Advantages of Planning :

a)     A complete guideline about how, when and what work has to be done

b)    Planning helps in completing goals of organization

c)     Delays in work can be avoided

d)    All of the above

Ans.: (d)

64.  Advantages of planning are :

a)     Work can be done efficiently

b)    Planning minimize work pressure and deadline tensions

c)     Standardization can be enforced through plans

d)    All of the above

Ans.: (d)

 

65.  It is observed that planning generally gets fail because of following reasons:

a)     Incomplete knowledge of work

b)    Absence of data analysis

c)     Unrealistic nature of plan

d)    All of the above

Ans.: (d)

66.  It is observed that planning generally gets fail because of following reasons:

a)     Absence of feedback of plan

b)    Involvement of people in planning in who are not involved in actual work

c)     Not considering risks and uncertainty

d)    All of the above

Ans.: (d)

67.  the types of plans are :

a)     Operational plans

b)    Tactical plans

c)     Strategic plan

d)    All of the above

Ans.: (d)

 

68.  The ____ process transforms plans into reality.

a)     Planning

b)    Organizing

c)     Directing

d)    All of the above

Ans.: (b)

69.  ____ can be defined as the process of establishing the orderly use of resources by assigning and coordinating tasks.

a)     Planning

b)    organizing

c)     directing

d)    all of the above

Ans.: (b)

70.  ____ Activity works within the framework organizational structure.

a)     Planning

b)    Organizing

c)     Directing

d)    All of the above

Ans.: (b)

71.  Steps for organizational process :

a)     Review plans and objectives

b)    Determine the work activities necessary to accomplish objectives

c)     Classify and group the necessary work activities

d)    All of the above

Ans.: (d)

72.  ____ is division of labor.

a)     Work specialization

b)    Chain of command

c)     Authority

d)    Delegation

Ans.: (a)

73.  _____ is an unbroken line of authority that links all persons in an organization

a)     Work specialization

b)    Chain of command

c)     Authority

d)    Delegation

Ans.: (b)

74.  ____ is the formal and legitimate right of manager to make decisions, issue oders and allocate resources to complete organization’s goal.

a)     Work specialization

b)    Chain of command

c)     Authority

d)    Delegation

Ans.: (c)

75.  _____ is the downward transfer of authority from a manager to a subordinate.

a)     Work specialization

b)    Chain of command

c)     Authority

d)    Delegation

Ans.: (d)

76.  _____ can be defined as the management of interdependence in work situations.

a)     Controlling

b)    Motivating

c)     Coordinating

d)    Decision making

Ans.: (c)

77.  _____ Activity includes communication among the different departments which are dependent on each other.

a)     Controlling

b)    Motivating

c)     Coordinating

d)    Decision making

Ans.: (c)

78.  ____ plays very important role as it ensures harmony among different departments.

a)     Controlling

b)    Motivating

c)     Coordinating

d)    Decision making

Ans.: (c)

79.  After plans have been made and the organization has been established and staffed, the next step is _____

a)     Planning

b)    Organizing

c)     Directing

d)    Controlling

Ans.: (c)

80.  _____ can be called as “leading”, “motivating”, “actuating” and so on.

a)     Planning

b)    Organizing

c)     Directing

d)    Controlling

Ans.: (c)

81.  _____ is the process of passing information and understanding form one person to another. Effective communication systems in the organization becomes backbone of coordination.

a)     Communication

b)    Leadership

c)     Motivation

d)    All of the above

Ans.: (a)

 

82.  _____ can be defined as the process by which a manager guide and influence the work of his subordinates.

a)     Communication

b)    Leadership

c)     Motivation

d)    All of the above

Ans.: (b)

 

83.  _____ means arousing desire in the minds of workers to give their best to the enterprise. It is the act of stimulating or inspiring workers.

a)     Communication

b)    Leadership

c)     Motivation

d)    All of the above

Ans.: (c)

84.  The qualities of Leadership are :

a)     Honesty

b)    Forward-looking

c)     Competent

d)    All of the above

Ans.: (d)

85.  When work diverts from the standards then _____ is very much required.

a)     Planning

b)    Organizing

c)     Directing

d)    Controlling

Ans.: (d)

86.  _____ is defined as the force that causes an individual to behave in a specific way.

a)     Communication

b)    Leadership

c)     Motivation

d)    All of the above

Ans.: (c)

 

87.  _____ produces best results in terms of productivity.

a)     Communication

b)    Leadership

c)     Motivation

d)    All of the above

Ans.: (c)

88.  _____ can be done in several ways like rewards, promotions, bonus, appreciations, hike in salaries, higher designation, freedom for decision making for their own work etc.

a)     Communication

b)    Leadership

c)     Motivation

d)    All of the above

Ans.: (c)

 

89.  Rights of _______ let the business grows and sustain in the market.

a)     Decision making

b)    Policy making

c)     Making necessary adjustments

d)    Controlling and ensure the discipline

Ans.: (a)

90.  ______ is the process of solving the problem or I finding out the new business opportunity.

a)     Decision making

b)    Policy making

c)     Making necessary adjustments

d)    Controlling and ensure the discipline

Ans.: (a)

91.  The example of _____ could be launching of new product, minimizing material wastage while production, recruiting people, stopping production of a particular product etc.

a)     Decision making

b)    Policy making

c)     Making necessary adjustments

d)    Controlling and ensure the discipline

Ans.: (a)

92.  There are three conditions or factors that effects decision making as follows :

a)     Certainty

b)    Risk

c)     Uncertainty

d)    All of the above

Ans.: (d)

 

93.  Under _____ when decisions are made, then we can understand that manager has perfect knowledge of all the information needed to make the decisions.

a)     Certainty

b)    Risk

c)     Uncertainty

d)    All of the above

Ans.: (a)

94.  In _____ type of environment, the manager is not able to gather the complete information.

a)     Certainty

b)    Risk

c)     Uncertainty

d)    All of the above

Ans.: (b)

95.  There is one more condition or case when information is very poor that managers cannot understand the probabilities and outcomes of alternatives. This condition is known as _____

a)     Certainty

b)    Risk

c)     Uncertainty

d)    All of the above

Ans.: (c)

 

96.  Decision making under conditions of _____ is like being a pioneer entering unexplored territory

a)     Certainty

b)    Risk

c)     Uncertainty

d)    All of the above

Ans.: (c)

97.  In this condition of _____ managers have to rely heavily on creativity for solving the problems.

a)     Certainty

b)    Risk

c)     Uncertainty

d)    All of the above

Ans.: (c)

98.  Types of personal decision making models are :

a)     Rational/Logical

b)    Intuitive

c)     Predisposed

d)    All of the above

Ans.: (d)

99.  Decision taken by supervisor could be :

a)     Change in work schedule or rescheduling

b)    Increase or decrease in production depending on current situation

c)     Decision regarding rejection of raw material or finished products

d)    All of the above

Ans.: (d)

100.                      Henry Fayol proposed _____ number of principle of management

a)     10

b)    20

c)     14

d)    30

Ans.: (c)

 

OPTIONAL:  UNIT 02: Management Process

 

 

 

 

1.     Getting the things down from other is called as :

Ans.: a (management)

 

2.     What is management

Ans.: d (both (a) an (b) are correct)

 

a.     It is service

b.     It is an art

c.      Both (a) and (b) are wrong

d.     Both (a) and (b) are correct

 

3.     Out of mentioned below, which is not the input of management

Ans.: c (Growth)

 

4.     Out of mentioned below, which is not the output of management

Ans.: c (Technology)

 

5.     Following are mentioned few duties which is not the duty of management

Ans.: d (To do manufacturing)

 

6.     When there is no management, then what will not happen?

Ans.: d (Mature work culture)

 

7.     Management is there from

Ans.: d (Historical period)

 

8.     Match the pairs :

Ans.: a -   1-(b), 2-(d), 3-(a), 4-(c)

1.     Adam Smith – economics

2.     F.W. Taylor – Scientific Management

3.     Maslow – Need Hierarchy

4.     Henry Fayol – Principle of Management

 

9.     Mc Gregor has given his contribution in

Ans.: c (Theory X and Theory Y)

 

10.                        F.W Taylor has given his highest contribution in

Ans.: d (Scientific Management)


11.Principles of management Is the contribution of

Ans.: b (Henry Fayol)

 

12.                        What is the correct chronological order for following evolution phases in descending order (older to latest)?

Ans.: a (1-4-3-5-2)

1.     Scientific management theory

2.     Administrative Management Theory

3.     Behavioral Management Theory

4.     Management Science Theory

5.     Organization  Environment Theory

 

13.                        Below are mentioned ‘stages’ of evolution in management – which is not correct?

Ans.: b (The war management concept)

 

14.                        “Management is getting the things done by others” – is said by

Ans.: c (Mery Parker)

 

15.                        Management is not

Ans.: d (All are wrong)

1.     an economic resource

2.     social science

3.     team activity

4.     all are wrong

 

16.                        management is

Ans.: d (All are correct)

1.     an economic resource

2.     social science

3.     team activity

4.     all are correct

 

17.                        Henry Fayol has given _____ principle of management

Ans.: a (14)

 

18.                        Following is not the principle of management

Ans.: c (Staffing)

 

a.     Initiative

b.     Scalar chain

c.      Staffing

d.     Responsibility

 

19.                        Following is not the principle of management

Ans.: b (Organizing)

           

a.     Team work

b.     Organizing

c.      Division of work

d.     Remuneration

 

20.                        Following is not the principle of management

Ans.: c (Decentralization)

 

a.     Centralization

b.     Authority

c.      Decentralization

d.     Esprit de corps

 

 

21.                        Following is not the principle of management

Ans.: d (Planning)

 

[Not principle of management:

C (Staffing)

B (Organizing)

C (Decentralization)

D (Planning)]

22.                        Position, designation, seniority defines

Ans.: c (Authority)

 

23.                        Meaning of ____ is right to command

Ans.: b (Authority)

 

24.                        Which statement is wrong?

Ans.: a (Authority cannot be delegated)

 

a.     Authority cannot be delegated

b.     Authority is the power to act

c.      Higher the post, higher is the authority

d.     Authority is right to command

 

25.                        What is the second side of coin of authority

Ans.: c (Responsibility)

 

26.                        Discipline starts from

Ans.: a (Top to Bottom)

 

27.                        Which is statement is wrong?

Ans.: c (Discipline starts from bottom to top)

             

a.     Discipline has to excuses

b.     Organization needs discipline

c.      Discipline starts from bottom to top

d.     Lack in discipline leads to loss of control

 

28.                        When many functions are controlled by a central authority, it is called as

Ans.: d (Centralization)

 

29.                        _____ gives power in the hands of center:

Ans.:  b (Centralization)

 

30.                        Which statement is wrong?

Ans.:  d (Centralization consider local issues always)

 

a.     Controls are concentrated at the center

b.     Many functions are controlled by a central authority

c.      Centralization gives power in the hands of center

d.     Centralization consider local level issues always

 

31.                        Out of following which is not the correct advantages of “Division of Work”?

Ans.:  c (Quality of work gets reduced)

 

a.     Extra pressure of work on very few is reduced

b.     Monopoly in  skills by few is reduced

c.      Quality of work gets reduced

d.     Work gets completed in less time.

 

32.                        To start with enthusiasm is called as

Ans.: a (initiative)

 

33.                        Which statement is wrong?

Ans.: b (Support by others is not expected after anybody’s initiative)

 

a.     Initiative leads into new horizons of work

b.     Support by -------

c.      Initiative may solve difficult problems

d.     Someone should take initiative

 

34.                        Remuneration is not based on

Ans.: c (Emotions)

 

35.                        Recruitment of remuneration is not

Ans.: d (Based on reference and contacts)

 

36.                        Which statement is wrong?

Ans.: b (Talent of each member cannot be used)

 

a.     In team work, there is more contribution from many

b.     Talent of each member -----

c.      Teamwork creates good work culture

d.     Big task is easier due to teamwork

 

37.                        Due to unity of direction

Ans.: a (Deviation from the defined path is prevented)

 

38.                        Concertation in work is possible by

Ans.: c (Stability)

 

39.                        Equity is seen by few ways, which is not the correct from following?

Ans.: d (Chair and cabin)

 

40.                        Which statement is wrong?

Ans.: a (Equity means equal wages)

 

a.     Equity means -----

b.     Equity gives dignity

c.      Equity means no bias

d.     Equity gives good work culture

 

41.                        What is Esprit de corps?

Ans.: b (It is principle of management)

 

42.                        Out of following which is not the function of management?

Ans.: c (Discipline)

 

43.                        Out of following which is not the function of management?

Ans.: b (Remuneration)

 

44.                        Deciding in advance what to do, how to do and when to do is

Ans.: a (Planning)

 

45.                        Which is not correct type of plan?

Ans.: c (Operational plan)

 

46.                        Why plan fails?

Ans.: d (all are correct)

 

a.     Lack of knowledge

b.     Insufficient data

c.      Over confidence

d.     All are correct

 

47.                        Which statement is wrong?

Ans.: c (Conspiracy from enemy and bad luck)

 

a.     No feedback system

b.     Less devotion to work

c.      Conspiracy from enemy ------

d.     Incorrect person to do plan

 

48.                        Out of following which is not the objective of good plan?

Ans.: d (To get money)

 

49.                        Which statement is wrong?

Ans.: b (Planning is sometimes essential)

 

a.     Planning effects performance

b.     Planning is sometimes essential

c.      Planning puts focus on objective

d.     Planning is necessary to facilitate control

 

50.                        Which statement is wrong?

Ans.: c (Planning is thinking after failures)

 

a.     Proper planning helps in motivating

b.     Planning reduces risk

c.      Planning is thinking after failures

d.     Planning improves the process

 

51.                        First step in planning is:

Ans.: a (Establish goals)

 

52.                        Which is the next function after planning?

Ans.: b (Organizing)

 

53.                        The assignment of each grouping to a manager with the authority necessary to supervise it, is called as

Ans.: b (Organizing)

 

54.                        Out of following, which is the first activity in organizing?

Ans.: d (Identifying the activities)

 

55.                        Providing correct way of working is

Ans.: c (Directing)

 

56.                        Which statement is wrong?

Ans.: a (directing is one time activity)

 

a.     Directing is one time activity

b.     Directing should not be autocratic

c.      Directing needs good vision in leadership

d.     Directing needs communication and motivation as supportive  functions

 

57.                        _____  is like a brake system in automobiles

Ans.: c (Controlling)

 

58.                        Work on correct track with correct speed Is possible by

Ans.: d (Controlling)

 

59.                        Out of following which is not the characteristics of controlling?

Ans.: a (It is a starting function)

 

60.                        Techniques not used for control function are

Ans.: d (Budget)

 

61.                        Control system having feedback is

Ans.: d (Closed loop system)

 

62.                        First step in decision-making is

Ans.: a (Recognize the problem)

 

63.                        Which of the following is the advantages of effective decision-making

Ans.: d (all are correct)

 

a.     No delays

b.     Quick actions

c.      No confusion

d.     All are correct

 

64.                         Which is not the technique for effective decision-making in Core Company?

Ans.: c (Outsourcing)

 

65.                        Need – want – satisfaction chain is invented by

Ans.: d (Maslow)

 

66.                        Which is the first need in Maslow’s need hierarchy?

Ans.: a (Physiological)

 

67.                        Food, water, shelter, are _____ needs.

Ans.: a (Physiological)

 

68.                        How many need are mentioned in Maslow’s need hierarchy?

Ans.: c (5)

 

69.                        Do the proper ascending sequence (down to up) of Maslow’s needs

Ans.: a (1-2-3-4-5)

 

1.     Physiological

2.     Security need

3.     Love/affection needs

4.     Social needs

5.     Self-actualization needs

 

70.                        ‘They expect less but contribute more” –This happened in which phase?

Ans.: b (Self-actualization needs)

 

71.                        Which is the last need (higher) in Maslow’s need hierarchy?

Ans.: c (Physiological needs)

 

72.                        Employees get energized due to

Ans.: c (Motivation)

 

 

 

 

 

 

 

3. Organizational management

 

1.     The main components of the organization are:

(a)  Clearly defined objectives

(b) Well organized and coordinated group of people

(c)  Suitable division of work and labour

(d) All of the above

Ans: d

 

2.     The main components of the organization are:

(a)  Predefined and clear policies and procedures.

(b) Right division of authority and responsibility

(c)  Effective communication system

(d) All of the above

Ans: d

 

3.     Organization has following characteristics:

(a)  Small or large group of people

(b) Group is leaded by executive leader

(c)  Important tool of management is organization

(d) All of the above

Ans: d

 

4.     Organization has following characteristics:

(a)   Allocates duties and responsibilities to employees

(b)  Organization establishes a relationship between authority and responsibility.

(c)   Organization controls the efforts of the group

(d)  All of the above

Ans: d

 

5.     Elements of organization are:

(a)   Set of defined objectives.

(b)  Well organized and coordinated group of people

(c)   Proper division of work and labour

(d)  All of the above

Ans: d

6.     Elements of organization are:

(a)   Set of defined objectives.

(b)  Well organized and coordinated group of people

(c)   Proper division of work and labour

(d)  All of the above

Ans: d

 

7.     Organization can be defined as _______

(a)  The process of identifying and grouping the work to be performed

(b)  Defining and delegating responsibility and authority

(c)   Establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives

(d)  All of the above

Ans: d

 

8.     The principles of organization are:

(a)   Understanding and formulating of objectives

(b)  Association and relation of basic components of organization

(c)   Responsibility and authority

(d)  All of the above

Ans: d

 

9.     The principles of organization are:

(a)   Span of control

(b)  Division and grouping of work

(c)   Proper delegation of work

(d)  All of the above

Ans: d

 

10.                         Which factors decide the type of organization:

(a)   Size of the organization

(b)  Nature of the product being manufactured

(c)   Complexity of the problems being faced

(d)  All of the above

Ans: d

 

11.                        Commonly known forms (types) of organization structures:

(a)   Line, military or scalar organization

(b)  Line and staff organization

(c)   Functional organization

(d)  All of the above

Ans: d

 

12.                         _______ is one of the simplest types of organization

Ans: Line organization

 

13.                         Line organization is also called as _______ or scalar organization

Ans: Military organization

 

14.                         Application of Line organization:

a.     Small businesses

b.     Military

c.      Automated industries like textile

d.    All of the above

Ans: d

 

15.                         Advantages of line organization are:

a.     Simple and easy

b.     Flexible structure and easy to expand or contract

c.      Easy addition and removal of members

d.    All of the above

Ans: d

 

16.                         Advantages of line organization are:

Ans: High degree of discipline

17.                         Disadvantages of line organization are:

a.     Neglect’s area of specialization of employees

b.     May overload employees

c.      Highly skilled and qualified people are required

d.    All of the above

Ans: d

 

18.                         The line organization is developed step by step to shape as the _______.

a.     Line organization

b.    Line and staff organization

c.      Functional organization

d.     All of the above

Ans: b

 

19.                         The _______ makes a combination of the line organization with staff departments that helps and advice line departments.

Ans: Line and staff organization

 

20.                         Advantages of line and staff organization:

a.     Expert advice is available from specialist staff executives

b.     Perfect work division

c.      No work overloading

d.    All of the above

Ans: d

 

21.                         Advantages of line and staff organization:

a.     Improved product quality

b.     Duties are clear to each person

c.      System functions smoothly

d.    All of the above

Ans: d

 

22.                         Disadvantages of line and staff organization:

a.     Increase in cost of product because of increase in staff

b.     More people more confusions and breaking rules and regulation by line of executives

c.      Unclear functions create confusions

d.    All of the above

Ans: d

 

23.                         The _____ mainly focuses on the specialized are of the person and the person does the same job. This is also known as staff organization type.

Ans: Functional organization

 

24.                         Merits of functional organization:

a.     Because of specialization, responsibilities are fixed.

b.     Expert advice can received

c.      Better quality of products can be produced

d.    All of the above

Ans: d

25.                         Demerits or disadvantages of functional organization:

a.     Coordination is difficult as many people are working on the same level,

b.     Maintaining discipline is difficult

c.      Assigning of new job is difficult because of specialization

d.    All of the above

Ans: d

 

26.                          ____ are internally formed

Ans: Project organization

 

27.                         Features of project organization are:

a.     Organizations are internally formed

b.     These organizations are generally temporary

c.      Less number of employees

d.    All of the above

Ans: d

 

28.                         Types of project organization

a.     Function based

b.     Project based

c.      Matrix based

d.    All of the above

Ans: d

 

29.                         Advantages of project organization:

a.     The scope of work is limited so efficiency is more.

b.     Teamwork is not emphasized

c.      This structure reduces communication and decision making

d.    All of the above

Ans: d

 

30.                         Disadvantages of project organization:

a.     Temporary nature of organization

b.     Loose bonding in groups

c.      Functions are complicated

d.    All of the above

Ans: d

 

31.                        Advantages of departmentation:

a.     Duties and authority are precisely known so efficiency is more.

b.     Persons can be made accountable for the results.

c.      Managers are allowed to take initiative and learn new managerial skills

d.    All of the above

Ans: d

 

32.                         Departmentalization can be done on the basis of following factors:

a.     Process

b.     Product

c.      Customers are Markets

d.    All of the above

Ans: d

 

33.                        Advantages of departmentation by product:

a.     Every product or department can be made accountable for profit or loss incurred by it.

b.     Evaluation of performance of every product line can be done individually

c.      It is possible to find out profitable and non-profitable product lines.

d.    All of the above.

Ans: d

 

34.                         Disadvantages of departmentation by product:

a.     Management cost is increased

b.     Services are duplicated or repeated

c.      Man power requirements are more

d.    All of the above

Ans: d

 

35.                         ______ is accountability. It is an obligation of a subordinates to his/her boss to do given work

Ans: Responsibility

 

36.                         ________ means right ( to command ) and power to act

Ans: Authority

 

37.                         _______ stands for granting of authority to subordinates to accomplish or perform a particular assignment while operating within pre-decided limits and standards established within pre-decided limits and standards established.

a.     Delegation of authority

b.     Responsibility

c.      Effective Delegation

d.     All of the above

Ans: a

 

38.                         Principles of delegation of authority are:

a.     Parity (equality) between authority and responsibility

b.     Responsibility

c.      Responsibility in terms of results

d.    All of the above

Ans: d

 

39.                         The span of control depends on the factors like:

a.     Trained and experienced subordinates

b.     Type of work

c.      Capacity of executive or manager

d.    All of the above

Ans: d

 

40.                         Limitations of span of control:

a.     Wider span of control may not be manager by executive.

b.     Inexperienced subordinate may create problems.

c.      Ego problems may arise.

d.    All of the above

Ans: d

 

41.                         ______ means giving right work to the right person.

Ans: Effective Delegation

 

42.                         __________ allows executive to give opportunity to his subordinates to think, make work related decision, and get developed.

Ans: Effective Delegation

 

43.                        Absence of ________ in units will lead to the failure in achieving organizational goal. So balancing is foremost.

Ans: Balance

 

44.                         ____ means adequate resources, man power and necessary authority for smooth functioning of department.

Ans: Balanced

 

45.                         __________ of organization means a capacity to tolerate losses because of key persons leaving organization.

a.     Balance

b.    Stability

c.      Flexibility

d.     All of the above

Ans: b

 

46.                         __________ ensures that in absence of these key persons organization do not make any losses and run smoothly towards its growth.

Ans: Stability

 

47.                         To ensure _______ a long term planning related to the required manpower and training and development for employees is required

Ans: Stability

 

48.                         Organizational ____ is mainly about adjusting work assignment, man power, and facilities that are required when temporary changes occur while working.

Ans: Flexibility

 

49.                         _______ allows bending and blending without experiencing any grave setback or delay.

Ans: Stability

 

50.                        _______ can culminate into strikes or fights among employees and cause serious consequences to the organization.

Ans: Miscommunication

 

51.                         A ____ assists in taking decisions correctly and also implementing it effectively and efficiently

Ans :  Good communication

 

52.                         ___________ communication takes place from top executive to lowest grade of the employee

Ans: Downward

53.                        _______ communication could be information or instruction.

Ans:  Downward

 

 

54.                         _______ is from bottom to top.

Ans: Upward communication

 

55.                         _________ is generally from lowest grade employee to the top executive.

Ans: Upward communication

 

56.                        _______ cloud be in the form of suggestions, complaints, feedback, orientation etc.

Ans: Upward communication

 

57.                        __________  takes place among employees who have same level of authority

Ans: Horizontal communication

 

58.                         _____ cloud be rumours or gossips. Sometimes rumors could be a truth but it creates a wrong picture. Effective communication system can help in improving official communication.

Ans: Unofficial communication

 

59.                        Forms of the organization are dependent on:

a.     Type of business

b.     Type of product

c.      Both (a) and (b)

d.     None of above

Ans: c

 

60.                        In ________ the owner of the organization is proprietor i.e single person.

Ans: Single ownership (private undertaking)

 

61.                        In ______ firm there could be two or even more than two partners are there who share all profits and expenses.

Ans:  Partnership

 

62.                         A_____ society is group share holders (individuals)

Ans: Joint stock companies

63.                        __________ are private and mainly created for providing the different services to the individual as well as society.

Ans: Cooperative organizations

 

64.                        Government sector means the companies which are public limited and having government undertaking.

Ans: Partnership

 

65.                        ________ can be defined as running business by the single owner

Ans: Proprietorship

 

66.                         In simple words the ________ can be defined as the association of two or more people doing business together to share the profit and expenses coming out of the business.

Ans: Partnership

 

67.                         In __________ capital is raised by partners. So profit, losses and expense are shared

Ans: Partnership

 

68.                         A_________ contributes capital, shares profits and loses of the firm

Ans: Sleeping partner

 

69.                        ______ partner does not contribute in day to day activities or affairs of firm.

Ans:  Sleeping partner

 

70.                         The _____ takes part in all day to day activities or management.

Ans: Active partner

 

71.                         The  ______ is also known as working partner.

Ans: Active partner

 

72.                         _____ cloud be manager, organizer adviser, or controller.

Ans: Active partner

 

73.                         A partner who is not publicly known as a partner but takes active part in the affairs of a business is

Ans: Secret partner

 

74.                         Nominal partner contribute in terms of their goodwill and credit from the market

Ans: Nominal partner

 

75.                        Legally ___________- are not allowed but still they may exist with the consent of other partners

Ans: Minor partner

 

76.                         The ______ continue partnership till the mutual faith, trust and confidence exist among all partners

Ans:  Partner at will

 

77.                         The ________ share only profit and not liable for anything are partners in profit only

Ans: Partners in profit only

 

78.                         Types of partnership:

a.     General partnership

b.     Limited partnership

c.      Both a and b

d.     None

Ans: c

 

79.                         Advantages of partnership:

a.     Decision making becomes easy and meaningful

b.     Capital is shared

c.      Responsibilities are shared

d.    All of the above

Ans: d

 

80.                        Disadvantages of partnership firms:

a.     Because a large scope, business may become complicated activity

b.     There could be confusions because of involvement of many people

c.      Profits are shared

d.    All of the above

Ans: d

 

81.                        Applications of partnership could be

a.     Legal firms

b.     Manufacturing industries

c.      Software development firms

d.    All of the above

Ans: d

 

82.                         Types of joint stock companies:

a.     Private Limited joint stock company

b.     Public Limited joint stock company

c.      Both a and b

d.     None

Ans: c

 

83.                         In ________ share holders are private people not general public

Ans: Joint stock private Limited stock company

 

84.                         In _____ share holders are unlimited and general people

Ans: Joint stock public Limited company

 

85.                         In ____ minimum members involved are 2 and maximum are 50

Ans: Joint stock private Limited stock company

 

86.                         In __________ minimum members involved are 7 and maximum is not limit

Ans: Joint stock public Limited company

 

87.                         More than 20 persons are involved in __________

Ans: Joint stock

 

88.                         Generally two or more people are involved in______

Ans:  Partnership

 

89.                        ___________ are Biotechnology Information System, Network Department of Consumer Affairs, and department of Education etc.

Ans:  Government departments

 

90.                        __________ are Balaji Telefimls, Bank of Maharashtra, Bata India Limited, Bharat Fertilizers Ltd etc.

Ans: Public companies

 

91.                        ___________ are Life Insurance corporation of India (LIC)

Ans: Public corporations

 

92.                         In ______ the capital is collected from the private partners

Ans: Private Limited companies

 

 

93.                        In _______ the capital is collected form the public by issuing shares having small face value

Ans: Public Limited companies

 

94.                         Joint stock private Limited company_______

Ans: Not managed by government

 

95.                         Public undertaking company___

a.     Not managed by government

b.    Managed by government

c.      Both a and b

d.     None

Ans: b

 

96.                         In joint stock private Limited company__________

Ans: No limitation for business activities

 

97.                        In public undertaking company_______

Ans: Government ensures control.

 

98.                         In joint stock private Limited company___________.

Ans: Capital can be raised from general people

 

99.                         In public undertaking company________

Ans: Government provides capital

 

100.                   ___________ companies are established for large profit business.

Ans: Government provides capital

 

 

[ Additional Questions 3. Organizational Management ]

 

1.     Which is unimportant word in the definition of organisation?

a.     Group of persons

b.    Profit

c.      Common aim

d.     United together

 

2.     Following group is not an organization

a.     Group of 15 people on bus stop

b.     Employees doing discussion in work area

c.      Meeting members in a company

d.     Labour working on a site

 

3.     Which are the aims of forming organization?

a.     Teamwork

b.     Combined efforts

c.      Responsibility on all

d.    All are correct

 

4.     Which statement is wrong?

a.     Organisation is a group of working people

b.     It has aims has no boundaries

c.      Organisation has no boundaries

d.     Organisation is a system

 

5.     Which is the first step in organisation forming?

a.     Assignment of duties

b.    Aims are determined

c.      Identifying activities

d.     Formulating plans

 

6.     Structure of organisation is represented by

a.     Organisation chart

 

7.     The structure of organisation is depends on

a.     Scope of functions

b.     Span of control

c.      Number if employees

d.     All of the above

 

8.     The structure of organisation is not dependent on

Ans:  Profit margin

 

9.     Which are the essential of organisation?

a.     Organisational chart

b.     Delegation

c.      Integration

d.    All

 

10.                         Which dimension factor in deciding structure of organisation

a.     Departmentation

b.     Hierarchy

c.      Both hierarchy and departmentation

d.    None of the above

 

11.                         Vertical dimension of organisation structure defines

Ans: Hierarchy

 

12.                         Scalar organisation is also known as

Ans: Line organisation

 

13.                         Line organisation is also known as

Ans: Vertical

 

14.                         Military type organisation is seen in

Ans: Line

 

15.                         Decisions are very quick in

Ans: Line organisation

 

16.                         Which is not the correct advantage of ‘Line organisation’?

Ans: Specialised

 

17.                         Which is not the correct disadvantage of ‘Line organisation’?

Ans: Nobody is overloaded

 

18.                         At which place line organisation is not possible?

Ans: Government company

 

19.                         Where line organisation is applicable?

a.     Workshops

b.     Small firms

c.      Small process industries with automation

d.    All

 

20.                         Functional organisation is also called as

Ans: Staff organisation

 

21.                         Functional organisation is

Ans: Horizontal

 

22.                         Which is not the correct disadvantage of staff organisation?

a.     Performance better than line

b.     Standardisation in process

c.      More productivity than line

d.    All

 

23.                         Which is not the correct disadvantage of staff organisation?

Ans: Lack of specialisations

 

24.                         Line and staff organisation is

Ans: Horizontal and Vertical

 

25.                         Which organisation is temporary in nature?

Ans: Project

 

26.                         Project organisation has few forms. Which is correct one?

a.     Balanced matrix

b.     Project matrix

c.      Functional matrix

d.    All

 

27.                          Which is the correct limitation of project organisation?

a.     Heavy pressures of work

b.     Complication of functions

c.      Differences of opinions

d.    All

 

28.                         _______ is a process of dividing large organisation into small and flexible administrative units

Ans: Departmentation

                   

29.                         Which is the aim of departmentation?

a.     To distribute work

b.     To make people specialised

c.      To give freedom for each function

d.    All of the above

 

30.                         Following is not the aim of departmentation

Ans: To make the power centralised

 

31.                         Which is not the type of departmentation?

Ans: By material pattern

 

32.                         ‘Car division’ in Tata Motors is example of

Ans: Departmentation by product

 

33.                         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

 

34.                         ‘Sales Department’ in Nokia is the example of

Ans: Departmentation by function

 

35.                         ‘Heat treatment’ shop in Kirloskar, is the example of

Ans: Departmentation by process

 

36.                         Which is the principle of organisation?

a.     Authority and responsibility

b.     Span of control

c.      Delegation

d.     All

 

37.                         ‘Number of subordinated handled by one manager effectively is called as __________

Ans:  Span of control

 

38.                         ___________ check the result, ______ shows the result

Ans: Authority, responsibility

 

39.                         Which is the pre-requisite of effective delegation?

a.     Goals establishment

b.     Decision-making freedom

c.      Independent subordinated

d.    All of the above

 

40.                        Which is the first step in effective delegation?

Ans: Goals establishment

 

41.                         Which is not the advantage of delegation?

Ans: Controls from centre increases

 

42.                        Ability to adjust, change bend is

Ans: Flexibility

 

43.                          Following is not the type of communication

Ans: Clear

         

44.                          ‘Instructions’ is the_________ communication

Ans: Downward

 

45.                         ‘Meeting’ is the _______ communication

Ans: Formal

 

46.                         ‘Request’ is the ________ communication

Ans: Upward

 

47.                         Which is barrier in communication

a.     Language problem

b.     Poor knowledge

c.      Confused information

d.    All

 

48.                         Which is the factor responsible in the selection of type of ownership?

a.     Capital required

b.     Scope of business

c.      Types of business

d.    All

 

49.                          Which statement is wrong?

a.     Has single owner

b.     Owner is supreme

c.      Has limited liability

d.     Owner is responsible for all

 

50.                         Which is not the advantage of sole proprietorship?

Ans: Business grown is faster

 

51.                         Which is not the limitation of sole proprietorship?

Ans: Corruption is more

 

52.                         Following business is not coming under sole proprietorship?

Ans: Insurance corporation

 

53.                         How may parents can be eligible for partnership?

a.     2

b.     B. 2 to 5

c.      2 to 10

d.    All are correct

54.                         Which is incorrect type of partner?

Ans: Perfect

 

55.                         About ‘Sleeping Partner’ which statement is wrong?

a.     Also called as silent partner

b.     They do investment

c.      Do not active in daily work

d.    Do not share profit/loss

 

56.                         Which statement is correct about ‘Nominal Partners’?

a.     Do not activity involved

b.     Do not invest

c.      Business can use their names

d.    All are correct

 

57.                         Which is type of partnership?

a.     General

b.     Limited

c.      Private

d.    Both a and b

 

58.                         ‘Achievement due to one, will be shared by all others.’ This happens in

Ans: General partnership

 

59.                         All partners have the same status in

Ans: General partnership

 

60.                         Which is included in the ‘Partnership Deed’?

a.     Name of the firm

b.     Location of work

c.      Names of partners

d.     All

 

61.                         Agreement between partners is called as

Ans: Partnership Deed

 

62.                         Highest business secrecy is in

Ans: Sole proprietorship

 

63.                         Unlimited liability is there in

a.     Proprietorship

b.     Partnership

c.      Both a and b

d.     None

 

64.                         Which statement is wrong about partnership?

Ans: There is limited liability

 

65.                         Which is not the type of joint stock company?

Ans: Public Sector

 

66.                         Maximum members in private limited company are:

Ans: 20

 

67.                         Minimum members is private limited company are

Ans: 2

 

68.                         Minimum number of directors in Pubic Limited company are

Ans: 3

 

69.                         Maximum shareholder in public limited company

a.     7

b.     10

c.      50

d.    No limit

 

70.                         Minimum shareholders in public limited company

Ans: 07

 

71.                        Which is not the advantages of stock company?

Ans: Easy to form

 

72.                         Which is not the limitation of joint stock company?

Ans: Political interference is more

 

73.                         Maximum  members in cooperative society are

a.     50

b.     100

c.      500

d.    No limit

 

74.                         Which statement about cooperative society is wrong?

Ans: Ownership is in the hands of government

 

75.                         Which is not the advantage of cooperative society?

Ans: Business growth is faster

 

76.                         Which is not the limitation of cooperative society?

Ans: Government support is less

 

77.                         Government sector is also called as

Ans: Public sector

 

78.                         The basic aim of the government sector is

Ans: Providing service to society

 

79.                         Which is the objective of public sector?

a.     Public welfare

b.     Employment opportunities

c.      Balanced regional growth

d.    All

 

80.                         Which is not the type of public sector

Ans: Public Limited Company

 

81.                         Highest control of government is there in

Ans: Government Department

 

82.                         Which is not the advantage of Public sector?

Ans: Secrecy is more

 

83.                         Which is not the limitation of Public Sector?

Ans: Unlimited liability

 

84.                        Documentation is less in

Ans: Sole proprietorship

 

85.                         Maximum security of job in

Ans: Public sector

 

86.                         Secrecy is least in

Ans: Public sector

 

 

 

 

4. Industrial Safety and Legislative Acts

 

1.     Types of accidents are:

a.     Minor

b.     Serious

c.      Fatal

d.    All of the above

Ans: d

 

2.     Taking shortcuts, Lack of adequate knowledge are _________

Ans: Accidents because of workers

 

 

3.     Causes of accidents are______

a.     Accidents because of workers

b.     Accidents because of management

c.      Both a and b

d.     None

Ans: c

 

4.     Accidents because of management are ________

a.     Mental distractions

b.     Lack of training to workers

c.      Equipment for safety are not provided

d.    Both b and c

Ans: d

 

5.     Accidents due to layout or design of working place:

a.     Earthquakes

b.     Wrong designs or layout of working place

c.      Oily or greasy floors

d.    Both b and c

Ans: d

 

6.     Floods, Earthquakes, Tsunami are ________

Ans: Accidents because of natural disasters

 

7.     General causes of accidents could be as follows:

a.     Accidents due to dangerous machines

b.     Unsafe physical condition

c.      Moving objects

d.    All of the above

Ans: d

 

8.     Which factor does not cause accidents due to dangerous machines?

Ans: Unsafe clothing

 

9.     Unsafe physical conditions occurs because of following reason:

Ans:  No proper ventilation

 

10.                        In an industry these accidents are caused because of  ___________ or falling objects.

Ans: Moving objects

 

11.                         Accidents may cause because of partial or no knowledge of processes or may be because of physical weakness of person working is called as _______.

Ans: Personal factors

 

12.                         ____________ accidents are caused because of not following safety procedures.

Ans: Unsafe acts

 

13.                         Unsafe acts occurs because of following reasons:

Ans: Working with unsafe speed

 

14.                         Accidents because of electrical factors includes following reason:

Ans: Absence of proper protecting devices

 

15.                         Accidents include injuries because of exposure to:

a.     Harmful substance

b.     Toxic gases

c.      Dangerous fumes

d.    All of the above

Ans: d

 

16.                         Industrial accidents have following types:

a.     Machinery

b.     Toxic

c.      Both a and b

d.     None of above

Ans: c

 

17.                         ________ accidents happen because of insufficient safeguard of machines.

a.     Machinery

b.     Non-machinery

c.      Both a and b

d.     None of the above

Ans: a

 

18.                         Reasons due to which non-machinery accidents may occur

Ans: Age of person

 

19.                         Preventive measures that can be taken related to working environment are __________

Ans: Safe workplace and working conditions

 

20.                         Good layout, reduction in noise level are _________

Ans: Atmospheric conditions

 

21.                         __________ has to be kept at secured and separate place which is not easily accessible

Ans: Inflammable material

 

22.                         Which of the following conditions is not physical condition :

Ans: Sufficient working space for movement

 

23.                        House-keeping to be good is the condition of  _____.

Ans: Good house-keeping

 

24.                          Fire extinguishers should be kept at easily accessible places is the condition of __________

Ans:  Personal protection devices

 

25.                         Based on the past experiences, the danger zone should be declared and proper precautions need to be taken in the condition of ____________

Ans: Safe activities in the organization

 

26.                         Good house-keeping includes following conditions:

a.     Use of machine that will reduce noise level

b.     Separate place for machine that are producing noise

c.      Reducing vibrations of machine with some technique

d.    None of the above

Ans: d

 

27.                         ___________ is a person who has completed the 18 years.

Ans:  Adult

 

28.                         ____________ is a person who has completed his 15th year of age but not completed 18th year of age.

Ans: Adolescent

 

29.                        ________ is a person who has not completed his 15th year of age

Ans: Child

 

30.                         Either a child or an adolescent is called as ________

Ans: Young person

 

31.                         ___________ is electrical energy or any other form of energy, which is not generated by human or animal agency.

Ans: Power

 

32.                         _____________ is any engine, motor or other appliance, which generates or provides power

Ans: Prime mover

 

33.                         _______ is a person employed directly or through any agency, whether for wages or not, in any manufacturing process or in cleaning any part of the machinery or premises used manufacturing process or in any other kind of work incidental, to or connected with, the manufacturing process.

Ans:  Worker

 

34.                         __________ of factory means the person who has ultimate control over the affairs of the factory and where the said affairs are entrusted to a managing agent, such agent shall be demand to be occupier of the factory.

Ans: Worker

 

35.                         Following is the health provision:

Ans: Cleanliness

 

36.                         Taking care while working on machinery in motion is a __________

Ans: Safety provisions

 

37.                         First – aid appliance is a ________

Ans: Welfare provisions

 

38.                         No adult worker shall be required or allowed to work in a factory on

Ans: Weekly holiday

 

39.                        When a worker works for _______ hours in a day or for more than 48 hours in any week, he shall be entitled to wages at the rate of twice his ordinary rate of wages

Ans: More than 9

 

40.                         This provision provides a further restriction to female workers that no women shall be employed in any factory expect between ______-

Ans: 6 A.M and 7 P.M

 

41.                         ___________ is of temporary nature and the earning capacity is reduced due to disablement is of permanent nature.

Ans: Partial disablement

 

42.                         __________ means such disablement whether if a temporary or permanent nature, which incapacitates a workman, forms all work which he was capable of performing at the time of accident resulting in such disablement

Ans: Partial disablement

 

43.                         ____________ includes any privilege or benefit which is capable of being estimated in money other than a traveling allowance or any other contributions paid towards pension etc

Ans: Wages

 

44.                         _____ means any person who is employed in any such capacity specified

in schedule II on monthly wages.

Ans: Workman

 

45.                         Meaning of _______ is a Window, a minor son , a widow mother

Ans: Dependant

 

46.                         _____ person whose age is below 18 years

Ans: Minor

 

47.                         Minimum wages need to be paid in the ____________

Ans: Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[ Additional Questions 4. Industrial Safety and Legislative Acts ]

 

1.     Accident is

a.     Unfortunate

b.     Mishappening

c.      Sudden

d.    All of the above

 

2.     Which is not included in the cause of accident due to worker?

Ans: Poor housekeeping

 

3.     Which is not included in the cause of accident due to management?

Ans: Bad habits of worker

 

4.     Who can be responsible for accident

a.     Worker

b.     Management

c.      Working conditions

d.    All of the above

 

5.     Who is responsible for “unguarded moving parts”?

Ans: Management

 

6.     Which is not included in the causes of accidents due to ‘Unsafe Working Conditions’?

Ans: Quarrels of workers

 

7.     Which is not included in the ‘causes of accidents’ due to nature?

Ans: Gas leakage

 

8.      Who gets affected directly or indirectly due to accidents?

a.     Worker

b.     Industry

c.      Family of worker

d.    All

 

9.     Which is not the ‘effect of accident on worker’

Ans: Production stoppage

 

10.                         If affected worker is recovered within 10 hours, then which type of accident is it?

Ans: Minor

 

11.                         What happens in fatal accident?

Ans: Death

 

12.                         Injury after accident disables the affected worker forever is ____ accident

Ans: Permanent

 

13.                         Internal accident means

Ans: Injury  without showing external signs

 

14.                         Which preventive measure industry should take to avoid accidents?

a.     Safety provisions

b.     Training for safe working

c.      Safety devices

d.    All of the above

 

 

15.                         Industrial Acts are useful for

a.     Guarantee of employee welfare

b.     Provision of legal platform

c.      Removes extortion of workers

d.     All of the above

 

 

16.                         Indian Factory Act is passed in

Ans: 1948

 

17.                         Major amendments done in Factory Act in

Ans: 1976

 

18.                         Adolescent is a person of the age between

Ans: 15-18 years

 

19.                         Child is a person of the age

Ans: less than 15 years

 

20.                         Calendar year as per Factory Act is

Ans: 1st January to 31 December

 

21.                         Day as per Factory Act is

a.     6 a.m to 6 p.m

b.     Period of 12 hours

c.      Periods between 2 midnights

d.     None of the above

 

22.                         Week as per Factory Act is periods between two

Ans: Saturdays

 

23.                         Factory using power as per Factory Act is a premise of minimum

Ans: 10 workers

 

24.                         A Labour Welfare Officer is appointed in the factory as per Factory Act when there are minimum _______ workers

Ans: 500

 

25.                         Rights of Labour Welfare Officer are given to

Ans: State Government

 

26.                         As per Factory Act painting should be done

Ans: Once a year

 

27.                         As per Factory Act, space required for a water is _____ Cu feet

Ans: 500

 

28.                         Drinking water must be away from latrine by ____ meters

Ans: 6

 

29.                         As per Factory Act, one box of First Aid is provided for _______ workers.

Ans: 150

 

30.                         One ambulance room should be provided in a factory employing more than  ____ workers.

Ans: 300

 

31.                         One canteen should be provided at least per _____ workers in a factory

Ans: 250

 

32.                         Creches should be provided at least per ____ workers in a factory

Ans: 30,6

 

33.                         Workman’s Compensation Act is passed in

Ans: 1924

 

34.                         Who is incorrect person in the definition of Dependent?

Ans: Friend

 

35.                         Compensation is not extended to _______ under Workman’s Compensation Act

a.     Workers covered under ESI Act

b.     Casual workers

c.      Wilful disobedience

d.    All the above

 

36.                         Employer has to do compensation under which case

a.     Injury caused during employment

b.     Injury caused by accident

c.      Any disablement/death after accident

d.    All the above

 

37.                         Minimum wages act is passes in

Ans: 1948

 

38.                         Which is not included in “Wage” under Minimum Wgaes Act?

a.     Travelling allowance

b.     PF

c.      Gratuity

d.    All

 

39.                          “Advisory Board” concerned with ‘Minimum Wages Act’ is appointed by

Ans: Appropriate Government

 

40.                         Minimum wages which are fixed are declared by Government through

Ans: Official gazette

 

 

 

5. Financial management

 

 

Q1. ----- can be defined as it that administrative area or set of administrative function in an organization which relate with arrangement of  cash and credit ,so that organization matters their means to carry out its objectives as satisfactorily as possible .

 

(a) Finance

(b) Capital

(c) Budget 

(d) VAT

 

Q2. According to F.W Paich  ----  can be defined as the  provision of money at the time it is wanted.

 

(a)Finance

(b)Capital

(c)Budget

(d)VAT

 

Q3. Financial activities are -------

 

(a)Planning

(b)             budgeting  

(c) Raising

(d)             All of the above

 

Q4. objectives of financial management:

 

(a) TO raise the funds

(b) To allocate funds properly

(c) To reduce the misuse of funds

(d) All of the above

 

Q5. objectives of financial management:

 

(a) TO maximize the profit in long run

(b) To maximize the wealth of company

(c) To fulfill the social responsibility

(d) All of the above

 

 

 

Q6. Function of financial management :

 

(a) Understanding and estimation of capital requirements

(b) Determination of capital composition

(c) Choosing soursse of funds

(d) All of the above

 

Q7. Function of financial management

 

(a) Allocation of funds

(b) Investment of funds

(c) Disposal of surplus

(d) All of the above

 

Q8. ----- is the life-blood of a business enterprise it is a universal lubricant which keeps enterprise dynamic.

(a) Finance

(b) Capital

(c) Budget

(d) VAT

 

 

Q9. ------ can be defined as goods or cash used (invested) to generate income from business or property (that can give income)

 

(a) Finance

(b) Capital

(c) Budget

(d) VAT

 

Q10. ------ develops products, keeps workers and machines at work , encourage management to make  progress and create value

 

(a) Finance

(b) Capital

(c) Budget

(d) VAT

 

Q11.  ------ can be defined as asset or capital investment that is needed to start up and run the business

 

(a) Gross working capital

(b) Net working capital

(c) Permanent working capital

(d) Fixed capital

 

Q12. Types of working capital

 

(a) Gross working capital

(b) Net working capital

(c) Permanent working capital

(d) All of the above

 

Q13. ------ is used for all the current assets (possessions or property)

 

(a) Gross working capital

(b) Net working capital

(c) Permanent working capital

(d) Temporary working capital

 

Q14.  ------ = Total current assets - Total current liabilities

 

(a) Gross working capital

(b) Net working capital

(c) Permanent working capital

(d) Temporary working capital

 

Q15. ----- capital is that amount of capital which must be in each or current assets for continuing the activates of business

 

(a) Gross working

(b) Net working

(c) Permanent working

(d)  Temporary working

 

Q16. ------  is required few times .

 

(a) Gross working capital

(b) Net working capital

(c) Permanent working capital

(d) Temporary working capital

 

Q17. internal sources are :

 

(a) Ratined earnings

(b)  Depreciation provisions

(c) Deferred taxation

(d) All of the above

 

Q18. ------  is the percentage of net earnings which is not paid out as dividends , but retained or kept by the company for reinvesting it for core business or to pay debt .

 

(a) Retained earning

(b) Depreciation provisions

(c) Deferred taxation

(d) All of the above

 

Q19. Examples of retained earnings are:

 

(a) Buying new machinery

(b) Doing research

(c) Development

(d) All of the above

 

Q20. The -----  is an accountings and a taxation term

 

(a) Retained Earnings

(b) Depreciation provisions

(c) Deferred taxation

(d)  All of the above

 

Q21.  For big industries , the amount of  ------- is very large

 

(a) Retained Earnings

(b) Depreciation provisions

(c) Deferred taxation

(d)  All of the above

 

Q22.  There are investment earnings like interest , dividends or capital gain etc.  which are gathered tax free until the investor withdraws and takes possession of it . these are known as -------

 

(a) Retained Earnings

(b) Depreciation provisions

(c) Deferred taxation

(d)  All of the above

 

 

Q23. -------  is one more source of capital where the person uses his/her own funds from different  source like savings , investments in share market, mutual funds , fixed deposits

 

(a) Retained Earnings

(b) Depreciation provisions

(c) Deferred taxation

(d)  Personal funds saved or inherited  

 

Q24.  External source are -------

 

(a) Permanent or long term sources of capital

(b) Medium - term sources of capital

(c) Short- term source capital

(d) All of the above

 

Q25.  ------ plays important role in the company it is capable of satisfying the capital requirements of a company

 

 

(a) Permanent or long term sources of capital

(b) Medium - term sources of capital

(c) Short- term source capital

(d) All of the above

 

Q26. ------ are the important source of the finance bank offers different types of loans to the companies for the growth

 

(a) Bank loans

(b) Hire purchase

(c) Sale and lease back

(d) All of the above

 

Q27. ----- is a method of buying goods by making installments payments over the period of time

 

 

(a) Bank loans

(b) Hire purchase

(c) Sale and lease back

(d) All of the above



Q28. ------ is an arrangement in which one party sells its property to a buyer party and the buyer immediately leases that property back to the sellers.

 

 

(a) Bank loans

(b) Hire purchase

(c) Sale and lease back

(d) All of the above

 

Q29. The term ------  means a loan in which the lender buys and owns equipment and then rents those equipment’s it to a business at some flat monthly rate for particular period or certain numbers months

 

(a) Bank loans

(b) Hire purchase

(c) Equipment leasing

(d) All of the above 

 

Q30. when foreign investors does huge sell of stocks  back to its own country it is referred as --------

 

(a) Bank loans

(b) Hire purchase

(c) Equipment leasing

(d) Profit flow back

 

Q31. Features of short term sources of capital are as follow:

 

(a) They are short term

(b) Mainly used for working capital

(c) Can be used for current assists like inventories

(d) All of the above

 

Q32. ---------- is an agreement in which customer can purchase goods on account that is without paying cash or paying  the supplier at a later date .

 

(a) Credit facilities

(b) Trade credit

(c) Shares

(d) Debentures 

 

Q33. A ------- is an instrument of management used as an aid inn the planning , programming and control of business activity .

 

(a) Finance

(b) Capital

(c) Budget

(d) VAT

 

 

Q34.  Types of budgets:

 

(a) Fixed budget

(b) Variable budget

(c) Functional budget

(d) All of the above

 

 

Q35. A -------- or static budget shows one plan ,one volume of output or sales and the related fixed costs .

 

 

(a) Fixed budget

(b) Variable budget

(c)  Functional budget

(d)  All of the above

 

Q36. the ------- depends upon the ability to perfect income ,sales or shipments with at least a no provision in made for any changes  may occurs during period .

 

(a) Fixed budget

(b) Variable budget

(c) Functional budget

(d) All of the above

 

Q37. -------- serves a valuable purpose in the  planning and control a certain fixed types of expenditures ,e.g. ,a research  project , hospitals schools and colleges etc. .

 

 

(a) Fixed budget

(b) Variable budget

(c) Functional budget

(d) All of the above

 

Q38. A ------- or flexible budget recognizes the unreliability of income or sales predictions and makes provisions in  advance for variations inn productions and expenditures in accordance with variations in sales  .

 

 

(a) Fixed budget

(b) Variable budget

(c) Functional budget

(d) All of the above

 

Q39.  ------- takes in account only those cost e.g. direct labor and material  which vary with output and over which the department  has control

 

 

(a) Fixed budget

(b) Variable budget

(c) Functional budget

(d) All of the above

 

Q40.  A --------- is one which relates to any of the functions of an undertaking e.g. sales productions, cash etc.

 

 

(a) Fixed budget

(b) Variable budget

(c) Functional budget

(d) All of the above

 

Q41. The frequently used functional budget are:

 

(a) Sales budget

(b) Production and manufacturing budget

(c) Capital expenditure budget

(d) All of the above

 

 

Q42. The frequently used function budgets are:

 

(a) Material and purchase budget

(b) Direct labor budget

(c) Capital expenditure budget

(d) All of the above

 

Q43.  Production budget is based upon:

 

(a) Sales budget

(b) Factory capacity (production and storage )

(c) Budgeted stock requirements

(d) All of the above

 

Q44. Manufacturing budget need the following basis budgets or estimates to meet the plan:

 

(a) Production budget outlining  the schedule of product units to be manufactured

(b) Direct material budget

(c) Plant (space) and equipment budget.

(d) All of the above

 

Q45.  Manufacturing budget need the following basis budgets or estimates to meet the plan:

 

(a) Maintenance budget

(b) Manufacturing expense budget (overhead)

(c) Labor budget

(d) All of the above

 

Q46.   Labor requirement are determined as follows:

 

(a) Split the product into operations

(b) Using work study calculates the standard time for each operation

(c) From work study calculate total number of hours required for production

(d) All of the above

 

Q47.  ------- are the expense that incurs after production of goods

 

(a)  Indirect expenses

(b) Indirect income

(c) Profit

(d) Loss

 

 

Q48. These types of expenses are

 

(a) Financial expenses

(b) Selling

(c) Distribution expenses

(d) All of the above

 

Q49. ------ is referred as income that is receives from other source and non trading income like commission, discount received , interest received on investment and deposit, rent etc.

 

(a) Indirect expenses

(b) Indirect income

(c) Profit

(d) Loss

 

Q50. important terminologies related to profit and loss account :

 

(a) Opening stock

(b) Purchases

(c) Sales

(d) All of the above

 

Q51.  important terminologies related to profit and loss account :

 

(a) Office and  administrative expenses

(b) Selling and distribution expenses

(c) Financial expenses

(d) All of the above

 

Q52.  important terminologies related to profit and loss account :

 

(a) Depreciation and maintenance charges

(b) Abnormal losses

(c) Indirect incomes and gains

(d) All of the above

 

Q53. The stock of goods in hand at the beginning of the year is called as ------

 

(a) Opening stock

(b) Purchases sales

(c) Office

(d) Administrative expenses

 

 

Q54. -------  are the term used to indicate purchases made during the year for the purpose of sale when goods purchased are returned is referred as purchase return

 

(a) Opening stock

(b) Purchases

(c) Sales

(d) Office administrative expenses

 

Q55. ---------- indicates the total sales in the year, when goods sold are returned are referred as sales return.

 

(a) Opening stock

(b) Purchases

(c) Sales

(d) Office administrative expenses

 

Q56. --------- indicates maintenance of office administration and management  of the company or organization

 

(a) Opening stock

(b) Purchases

(c) Sales

(d) Office administrative expenses

 

Q57. Examples of office and administrative expenses are

 

(a) Staff salary

(b) Stationery

(c) Printing

(d) All of the above

 

Q58. Examples of office and administrative expenses are

 

(a) Telephone

(b) Telegram

(c) Postage

(d) All of the above

 

 

Q59. For promotion of sales and its distributions ---------- are done

 

(a) Opening stock

(b) Purchases

(c) Sales

(d) Selling and distribution expenses

 

Q60. -------- include expenses like commission to salesmen , advertisement , discount given , carriage outward, bad debts , cost of service after sales ,rent  of go down , expenses related to delivery of material  etc. .

 

(a) Opening stock

(b) Purchases

(c) Sales

(d) Selling  and distribution expenses

 

Q61.  -------- are expenses done for raising funds for running business

 

(a) Financial expenses

(b) Purchases

(c) Sales

(d) Selling and distribution expenses

 

Q62. Interest paid on loan, interest on capital, discount on bills, bank charges, interest paid for bank OD (over draft) are examples of   ---------

 

(a) Financial expenses

(b) Purchases

(c) Sales

(d) Selling and distribution expenses

 

Q63. -------- may occur because of loss on sale of asset, fire or theft etc.

 

(a) Financial expenses

(b) Abnormal losses 

(c) Sales

(d) Selling and distribution expenses

 

Q64.  Incomes other than sales are called as --------

 

(a) Indirect income

(b) Abnormal losses

(c) Sales

(d) Selling and distribution expenses

 

 

Q65.  --------- includes the bad debt means amount that can not be recovered from the market it is treated as loss.

 

(a) Indirect incomes

(b) R.D.D account

(c) Sales

(d) Selling and distribution expenses

 

 

Q66. The -------- can be defined as a resource with specific economic value that an individual, corporation or country owns or control

 

(a) Asset

(b) Liability

(c) Shares

(d) Debenture

 

Q67. -------- is defined as a company’s legal debts or obligations which arise during the business operations liabilities can be settled over the period of the by transferring money, goods or services.

 

(a) Assets

(b) Liability

(c) Shares

(d) Debenture

 

Q68. A ------- Is defined as a single unit of ownership in a corporation, mutual funds or any other types of organization

 

 

(a) Assets

(b) Liability

(c) Shares

(d) Debenture

 

Q69. -------- can be defined as an unsecured loan certificate issued by a company which is backed by general credit instead by specified assets

 

 

(a) Assets

(b) Liability

(c) Shares

(d) Debenture

 

 Q70. ------- is defined as an accounting record  where all business transactions are origin -ally entered or recorded

 

 

(a) Assets

(b) Liability

(c) Shares

(d) Journal

 

Q71. ------- is defined as an accounting book of final entry where transactions are listed in separate or different accounts

 

 

(a) Assets

(b) Liability

(c) Shares

(d) Journal

 

Q72. Direct tax examples:

 

(a) Flat tax

(b) Income tax

(c) Excise tax

(d) All of the above

 

Q73. Indirect tax examples:

(a) Consumption tax

(b) Sales tax

(c) Wealth tax

(d) All of the above

 

Q74. Types of excise duty

 

(a) Duties under central excise act

(b) National calamity contingent duty

(c) Additional duty on goods of special importance

(d) All of the above

 

 

Q75.  -------- is direct tax which is paid by individual to the central government of India is known as income tax

 

(a) Direct tax

(b) Indirect tax

(c) Service tax

(d) Income tax

 

Q76. --------- is a form of indirect tax imposed on specified service called “taxable services”

 

(a) Direct tax

(b) Indirect tax

(c) Service tax

(d) Income tax

 

 

  Q77. --------- can be defined as a tax which is paid directly by an individual or organization to the imposing entity

 

(a) Direct tax

(b) Indirect tax

(c) Service tax

(d) Income tax

 

Q78. A --------- can be defined as the tax which increases the price of a good in such way that consumers are actually paying the tax more for product they are buying

 

(a) Direct tax

(b) Indirect tax

(c) Service tax

(d) Income tax

 

Q79. Main heads of incomes are:

 

(a) Salary

(b) House property

(c) Profit in business /profession

(d) All of the above

 

Q80. ------- is a consumption tax which is levied at each stage of production based on the value added to the product at that stage

(a) Finance

(b) Capital

(c) Budget

(d) VAT

 

ADDITIONALS 5 FINANCIAL MANAGEMENT

 

 

Q1. Financial management aims at:

ANS = (d) all of the above (financial control, control of cash, management of earnings)

 

Q2 .what is the function of financial management?

ANS = (d) all of the above (record keeping, profit maximization, management of cash flow)

 

Q3. ------ is one of the routine finance functions:

ANS = (a) safety of document

 

Q4. What are the type of capitals?

ANS = (d) fixed and working

 

Q5. Fixed capital is the capital invested in assets over:

ANS = (d) none of the above

 

Q6. The capital invested in assets which can not be easily covered into money is called:

ANS = (a) Fixed capital

 

Q7. what is working capital ?

ANS = (d) none of the above

 

Q8 . Working capital is required to ?

ANS = (b) pay wages and salaries to employees

 

Q9. -------- is a factor influencing requirement of fixed capital

ANS  = (b) nature of business

 

Q10. The amount to be collected by a company is divided in equal number of parts known as -------

ANS = (c) shares

 

 

Q11. Which one of the following is not a type of share?

ANS = (b) fixed share

 

Q12. Which one of the following is a type of preference shares?

ANS =  (d) noncumulative shares

 

Q13. The sum that every shareholder gets in known as:

ANS = (b) dividend

 

Q14. Term loans are secured loans :

 ANS = (a) true

 

Q15. Feature of term loan:

ANS = (d) the period of term loans is within 3 to 10 years

 

Q16. What is an inter company loan ?

ANS = (a) it is the loan and investment between two companies.

 

Q17.  ------- is a source of working capital

ANS = (a) loans from commercial banks

 

Q18. -------- allows a business to draw money against its  sales of goods before the customer has actually made the payment

ANS = (b) bill discounting

 

Q19. ----- is  a loan advance sanctioned by the  bank  for a longer period

ANS = (c) clean advance

 

Q20.  the suppliers of goods and services to the company  provide various goods and services with an expectation of payment in future is called ------

ANS = (a) trade credit

 

Q21. The utility of every machine or equipment decreases because of wear and tear during use, the reduction in value :

ANS  = (d) deprecation

 

Q22. for purchasing certain commodities , the customer has to make payment before be receives goods is called :

ANS = (c) customer advance

 

 

 

Q23. Which one of the following is a feature of long term finance?

Ans = (a) these financial are used for about 10 years

 

Q24. A plan for the coordination of resource and expenditure:

ANS = (d) budget

 

Q25. In the process of budget preparation firstly, the ------ budget is prepared

ANS = (d) master

 

Q26. ----- Budget provides projections about sales of various kinds of products in different regions

ANS = (a) sales

 

Q27. A sales budget is the basis for preparation of a ------

ANS = (d) none of the above

 

Q28. The production budget provides information about product wise quantities to be produced in a particular period these quantities helps to decide the:

ANS = (b) manpower

 

Q29. ------- Budget is the projection of cash inflow and outflow for a particular time period in future.

ANS = (a) cash

 

Q30. Which one of the following is not a major section in cash budget?

ANS = (d) capital section

 

Q31. A planned capital investment in the business without disrupting the normal working of the company:

ANS = (c) capital expenditure budget

 

Q32.  A budget which is designed to charge in relation with the level of activity of the business

ANS = (b) variable budget

 

Q33. A record of income and expense:

ANS = (b) account

 

Q34. A ----- and a ----- are the two major books used to maintain accounts

ANS = (c) journal and ledger

Q35. Every business transaction is entered in a book known as a -------

ANS = (a) journal

 

Q36. Knowledge of ------- and ------- is sufficient to understand the size , scale and financial position of a business

ANS = (a) total revenue, not profit (loss)

 

Q37. A ------- Shows the income and expenses of a business during a specific period of time

ANS = (b) profit and loss account

 

Q38. Sales returned represent value of goods returned by the -----

ANS = (b) customer

 

Q40. Excise duty is the amount of duty paid on ------ of goods

ANS = ( c) excise

 

Q41. ------ refers to sparing of the replacement cost of tangible assets like building, machinery etc.

ANS = (a) deprecation

 

Q42. ------ refers to the sparing of the replacement cost of intangible assets like patents

ANS = (b) amortization

 

Q43. The sum of all expenses gives the:

ANS = (b) total expenses

 

Q44. An example of extraordinary item:

ANS = (b) loss due to manmade disaster

 

Q45. Tax includes the current tax as well as ------- tax

ANS = (d) deferred

 

Q46. in P and L net profit is given by :

ANS = (d) none of the above

 

Q47. the ratio of (net profit - preferred dividend) to number of shares outstanding is

ANS = (a) earning per share

 

Q48.the diluted EPS is ------ than the EPS

ANS = (b) smaller

Q49. The balance sheet shows liabilities and assets of the ------

ANS = (b) company

 

Q50. ------- represent what the company has to pay to others

ANS= (a) liabilities

 

Q51. According to which Act, a business is required to prepare balance sheet?

ANS = (a) companies act

 

Q52. Which one of the following is not a current liabilities?

ANS = (d) long term borrowings

 

Q53. The term reserves is related to :

ANS = (d) balance sheet

 

Q54. -------- are the resource of a company

ANS = (d) assets

 

Q55. Which one of the following is a current asset?

ANS = (b) trade receivable

 

Q56. --------- is an involuntary fee imposed by the government on a product, income or activity

ANS = (b) tax

 

Q57. what are the types of taxes ?

ANS = (c ) direct and indirect

 

Q58. ------ is a type of tax

ANs = ( c) indirect tax

 

Q59.the tax that is charged on the personal or corporates income is :

ANS = (b) direct tax

 

Q60. Which one of the these is not a tax charged by the central government  ?

ANS = (d) stamp duty

 

Q61.  Which one of the is not a tax charged by the state government?

ANS = (a) income tax

 

Q62. Which one of the is a tax collected by local bodies?

ANS = (a) tax on market

 

Q63. An indirect tax levied on all goods manufactured:

ANS = ( c) excise tax

 

Q64. -------- Tax is an annual direct tax

ANS = (a) income

 

Q65. --------- Duty is a tax levied on goods imported into the country as well as on goods exported out of the country

ANS = (a) custom duty

 

Q66.  Which one of the following is not a type of custom duty?

ANS = (d) dumping duty

 

Q67. Service tax is applicable to the whole of India except the state:

ANS = (c) Jammu and Kashmir

 

Q68. The current effective service tax rate is:

ANS = (b) 12%

 

Q69. In which year the value added tax was introduced?

ANS = (b) 2005

 

Q70.basic import duty in the range of ------- to ------ is levied on all kinds of goods.

ANS = (c) 5-40%

 

Q71.protective duty is to protect the interest of Indian ------

ANS = (a) industry

 

Q72. Costs which are independent of volume of production

ANS = (b) fixed cost

 

Q73.Expenses on ------ is not an example of overheads:

ANS = (d) salary

 

 

Q75. ------ is not an objective of budgetary control?

ANS = (d) to finance the business

Q76. Budget are prepared for ------- period of time

ANS = (a) definite

 

Q77. When the company has confirmed export order and is in need of finance, the banks provide short term credit. It is known as:

ANS = (c) export finance

 

 

 

 

6 Material Management

 

Q1. What function or functions are involved in material management?

 

(a) Planning

(b) Warehousing

(c) Storage management

(d) All of the above 

 

Q2. --------- is a part of materials management.

 

(a) Inventory management

(b) Marketing management

(c) Both (a) and (b)

(d) None

 

Q3. --------- can be defined as an attempted to balance inventory needs and requirement with the need to minimize costs resulting from obtaining and holding inventory

 

(a) Finance management

(b) Marketing management

(c) Inventory management

(d) None

 

Q4. Which is the function of inventory ?

 

(a) Minimize the lead time

(b) Up-to-date and accurate record keeping

(c) Both (a) and (b)

(d) None

 

Q5. ----- include raw material and semi finished products supplied by another firm and which are raw item for the present industry

 

(a) Raw inventories

(b) In-process inventories

(c) Finished inventories

(d) Indirect inventories

 

Q6. -------- involves semi-finished goods at various stage of manufacturing cycle

 

(a) Raw inventories

(b) In-progress inventories

(c) Finished inventories

(d) Indirect inventories

 

Q7. --------- are the finished goods lying in stock rooms and waiting dispatch

 

(a) Raw inventories

(b) In-progress inventories

(c) Finished inventories

(d) Indirect inventories

 

Q8. ---------- includes lubricants and other items needed for proper operation

 

(a) Raw inventories

(b) In-progress inventories

(c) Finished inventories

(d) Indirect inventories

 

Q9. ABC analysis plays a vital role in ---------- management

 

(a) Finance

(b) Inventory

(c) Both (a) and (b) correct

(d) Both (a) and (b) wrong

 

Q10. ‘A’ type of item are generally ----------- of all inventories

 

(a) 20%

(b) 30%

(c) 50%

(d) 80%

 

 

Q11.’C’ type of item of inventories are generally ------- of all inventories

 

(a) 20%

(b) 30%

(c) 50%

(d) 80%

 

Q12. which is the first step in doing ABC analysis ?

 

(a) Arranging the item

(b) Determine unit price

(c) Preparing the list of all item

(d) None

 

Q13. Advantage of ABC analysis -----------

 

(a) Inventory analysis

(b) Record keeping become easy

(c) Stock levels can be maintained properly

(d) All of these

 

 

Q14.Disadvantage of ABC analysis ---------

 

 

(a) ABC analysis has to be done in a standard way otherwise it does not serve the purpose

(b) Moving and non moving items can be easily identified

(c) Record keeping becomes easy

(d) Both (a) and (b)

 

Q15. EQQ stands for -----------

 

(a) Economic order quantity

(b) Economic order quality

(c) Economic orders quality

(d) None

 

 

Q16. ---------- is one which allows lowest cost per unit and is most advantageous

 

(a) Economic order quality

(b) Economic order quantity

(c) Economic order quality

(d) None

 

 

Q17. what is an assumption in EQQ ?

 

(a) Lead time is known and is constant

(b) Total cost

(c) Primary cost

(d) All of these

 

Q18. -------- avoid effect like price fluctuations and shortage of material in the market

 

(a) Buffer stock

(b) EQQ

(c) Both (a) and (b)

(d) None

 

 Q19.  Advantages of EQQ ---------

 

(a) EQQ avoid running cost of stock

(b) Inventory maintenance cost is reduced

(c) If the cost of product is reduced then EQQ is not applicable

(d) EQQ does not support longer lead time

 

Q20. Disadvantage of EQQ ---------

 

(a) Unnecessary storage of the raw material is avoided

(b) EQQ does not support if interest rates go up

(c) EQQ does not support longer lead time

(d) Both (a) and (b)

 

Q21. EQQ does not work if  -------- order quantity is compulsory

 

(a) Maximum

(b) Minimum

(c) Smaller

(d) None

 

 

Q22. ------- function can  be defined as procuring different types of material for an organization from different source

 

(a) Purchasing

(b) Purchase order

(c) Purchase department

(d) All of the above

 

Q23. the purchasing  function plays the role of mediator between --------- and ---------- for purchase of material

 

(a) Vendor, control

(b) Organization ,control

(c) Vendor, organization

(d) Organization, vendors

 

Q24. the role of purchase department is vital because ---------

 

(a) Purchase department issues payments to the vendors

(b) Material required for running organization is purchased by the purchase department

(c) The department which needs material sends material receipt to purchase department

(d) All of the above

 

Q25. which is the first step in purchasing  ?

 

(a) Maintenance of record and files

(b) Issuing the purchase order

(c) Making request for quotations

(d) Analysis of purchase requisition

 

 

Q26. the objectives of the purchasing -----------

 

(a) To procure or store right material

(b) To store material from right and reliable supplier

(c) Preparation of purchasing budget

(d) Both (a) and (b)

 

Q27. the important functions/duties of purchasing department/ management are ---------

 

(a) Preparation of purchasing budget

(b) Track pending purchase order

(c) Issue and follow up purchase order

(d) All of these

 

 

Q28.--------- is set of activities that ensure right material at right quality and quantity in right time

 

(a) Procurement

(b) Purchasing

(c) Purchasing department

(d) None

 

 

 Q29.procurement activity is -------- and takes more time

 

(a) Simple

(b) Complicated

(c) Difficult

(d) None

 

Q30. ---------- is an intelligent activity includes decision making , selection of vendors etc.

 

(a) Purchasing

(b) Purchasing department

(c) Procurement

(d) Purchase order

 

 

Q31.  -------- is just a transaction and is basic activity

 

(a) Purchasing

(b) Purchasing department

(c) Procurement

(d) Purchase order

 

 

 

Q32. MRP means -----------

 

(a) Material requirement process

(b) Material requirement planning

(c) Material required planning

(d) Material resource planning

 

Q33. ERP means --------

 

(a) Enterprise resource planning

(b) Enterprise resource planning

(c) Enterprise resource process

(d) None

 

Q34. the major purpose of MRP ------

 

(a) Components and required raw material are available in right quantities at right time

(b) Material resource planning is all about management of resource required for production

(c) Both (a) and (b)

(d) None

 

Q35. the major advantage of MRP is ---------

 

(a) Frequent material shortage

(b) Conflicts among employees

(c) Minimizing unnecessary inventory investment

(d) High investment in unnecessary inventory

 

Q36. For staffing , inventory, production etc. Company develops and design a plan called as ----------

 

(a) MPS

(b) MRP

(c) EPS

(d) ERP

 

Q37. the input to MRP are ---------

 

(a) The major production schedule and order data

(b) The bill-of material file

(c) The inventory record file

(d) All of the above

 

Q38. -------- is a plan that future production of end of product

 

(a) MRP

(b) MPS

(c) ERP

(d) None

 

Q39. ---------- is made up of list the sub assemblies as well as components that makes up the end product

 

(a) Master production schedule

(b) Inventory record file

(c) Bill-of- material

(d) Material resource planning

 

Q40. inventory record file also called as -------

 

(a) Item master file

(b) Inventory record file

(c) Bill-of-material file

(d) None

 

Q41. benefits of MRP -----------

 

(a) Reduced unnecessary inventory

(b) Avoids material shortage

(c) Greater productivity

(d) All of these

 

Q42. -------- can be defined as an integrated information system that serves all department with in an enterprise

 

(a) MRP

(b) MPR

(c) ERP

(d) EPR

 

Q43. application of ERP are  -----------

 

(a) SAP

(b) Tally ERP

(c) MRP

(d) Both (a) and (b)

 

Q44. Advantages of ERP are ------------

 

(a) A unified and single reporting system

(b) It is very complex

(c) ERP exports are not easily available

(d) None

 

Q45. 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

 

Q46. Disadvantages of ERP are ----------

 

(a) Centralized data storage

(b) It is very complex

(c) A unified and single reporting system

(d) ERP is modular software

 

Q47. module in ERP are ----------

 

(a) Human resource

(b) Purchase

(c) Both (a) and (b)

(d) None

 

Q48. sales and marketing is module of --------

 

(a) ERP

(b) MRP

(c) MPR

(d) None

 

 

 

Additional Material management

 

 

Q1.what are the function of materials management

ANS = (d) all of those (material planning , purchasing , store management)

 

Q2. what are the various costs involved in material management

ANS = (d) both (a) and (b)  (procurement cost, total cost )

 

Q3. a well coordinated material management programmer may result into

ANS =(c) cost reduction

 

Q4. material handling cost means :

ANS = (d)  cost of handling material

 

Q5. freight cost means

ANS = ( c) cost required for movement of material

 

Q6. what is the basic cost of material :

ANS = (a) cost to be paid to supplier

 

Q7. inventory control means timely available of all kind of material

ANS = (a) true

 

Q8 . market research is necessary for

ANS = (b) information about market condition and available of material

 

Q9. packaging cost means

ANS = (a) cost of packaging of goods

 

Q10.  what do you mean by insurance cost

ANS =(a) cost of insurance of goods while they are in transit

 

Q11. material management is used to maintain steady flow of material for uninterrupted production

ANS = (b) true

 

Q12. inventory control means :

ANS = (d)  all of the above ( timely available of material , value analysis of costly material ,availability of material at low cost )

 

Q13. store management refers to conservation of material in stores

ANS = (a) true

 

Q14. evaluation and development of reliable suppliers is a function of :

ANS = (a) material management

 

Q15. material planning is based on data from :

ANS = (a) sales department

 

Q16.  a detailed list of all kind of goods handled by business :

ANS = (c) inventory

 

Q17. finished goods means goods waiting for dispatch to :

ANS = (a) customer

 

Q18. raw material includes

ANS = (d) all of these (semi finished components , material an stores , sub assemblies )

 

Q19. what do you mean by finished part ?

ANS  = (a)  part which is ready to dispatch to customer

 

Q20. work in progress is term used for all material at various machine on shop floor

ANS = (a) correct

 

Q21. inventory consist of

ANS = (d) all of these (raw material , indirect material , work in progress )

 

Q22. excess lavatory may lead to

ANS = (b) loss

 

Q23. excess inventory needs

ANS = (a) more funds

 

Q24. tools lubricants cutting fluids are :

ANS = (a) indirect material

 

Q25. objectives of inventory management includes

ANS = (d) all of these ( financial objectives , property protection objectives, operational objectives )

 

 

Q26. ABC analysis helps senior manager to control :

ANS = (a) inventory cost

 

Q27. which one of the following are an insignificant item :

ANS = (c ) C item

 

Q28.   which are the most important items :

ANS = (a) A items

 

Q29. which one of the following is incorrect about ‘A’ items

ANS = (d) insignificant item

 

Q30. which statement is correct for ‘C’ items

ANS =  ( c) both (a) and (b) (value analysis is not required , insignificant item )

 

Q31. correct statements about ‘B’ items

ANS = (d) all of these ( less controlled inventory control system , important items, monthly controlled items )

 

Q32. Advantages of ABC analysis :

ANS = ( c) both (a) and (b) (the system is easy to understand , provides tool to decide frequency of purchasing )

 

Q33. ------- helps managers to have selective control and focus attention only on important items

ANS = (a) ABC analysis

 

Q34. ABC provides a tool to decide frequency of purchasing

ANS = (a ) true

 

Q35. Limitation of ABC analysis seasonal variation of cost have no consideration  in the analysis :

ANS = (a) true

 

Q36. what do you mean by services to customer :

ANS = ( c) prompt supply of finished parts to customer

 

Q37.  too little inventory increases the risk of :

ANS = (a ) out of stock condition

 

Q38. ‘A’ class of items have ----- % of total consumption cost

ANS = (c ) 40 to 50 %

Q39. ‘C’ class of items have ------- %  of total consumption cost

ANS = (C )5 to15

 

Q40. annual ------- cost = unit price x annual consumption volume

ANS = ( a) consumption

 

Q41. first step in preparation of ABC analysis is :

ANS =  (a) preparation of list of all items

 

Q42. ‘A’ class items are ------ % of the total number of items

ANS = (a) 10-20

 

Q43. ‘C’ class item are  ------ % of total number of items

ANS = ( C)  65-75

 

Q44. economic order quantity provides the ------- number of units to order

ANS = (c ) optimum

 

Q45. EQQ means economic order quantity

ANS = (a ) true

 

Q46. various costs associated with ordering and receiving goods :

ANS = (a) procurement  cost

 

Q47. holdings cost is also known as :

ANS = (b) carrying cost

 

Q48. procurement cost is obtained by plotting -------- against ordered quantity

ANS = (a) cost

 

Q49. purchasing is one of the function of --------- management

ANS = (b) material

 

Q50. --------means procuring goods and services

ANS = (a) purchasing

 

Q51. the long form of DOL is

ANS = (b) direct on line

 

Q52. the  --------- provides the information about when order and how much to order

ANS = (a) MRP

 

Q53. while on long  tour which are the items that we take most care of ? certainly , it is the jewelry and cash ? ….. this could be an analogy to :

ANS = (b) ABC analysis

 

Q54. ------- is relationship between demand for one item and demand dor higher level  assembly

ANS = (a) dependent demand

 

Q55. An example of an item of independent demand :

ANS = (b) tools

 

Q56. one of the function of MRP

ANS = (d) all of the above (reducing waste , economy in buying)

 

Q57. an example of input to MRP :

ANS = (d) all of the above (production schedule, inventory control, bill of material )

 

Q58. the expenses on travelling may be an element of ------- cost

ANS = (b) fixed

 

Q59.the list of components  that make up a final product :

ANS = (a) bill of material

 

Q60. master production schedule is prepared from :

ANS = (d) none of  the above

 

Q61. -------- department  floats enquiries and processes quantitation

ANs = (b) purchase

 

Q62. Which one of the following  is not a benefit of MRP

ANS = (d) all of the above (save time , saves cost , gives production schedule )

 

Q63. Which one is incorrect regarding to MRP :

ANS = (C) provides standard

 

Q64. ERP stands for

ANS = (b) enterprise resource planning

 

Q65. ------- is an integrated system to manage business

ANS = (a) ERP

 

Q66. Which one of the following can be an ERP module ?

ANS = (d) all of the above (human resource , sales and marketing , finance )

 

 

 

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