Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 1

Questions
1 From the following determinants of the price elasticity of demand, indicate the correct code for the determinants having a positive relationship with the degree of the price elasticity of demand :

(a) Range of substitutes of the commodity

(b) Extent of the different uses of the commodity

(c) Portion of the income of the buyer spent on the commodity

(d) Income group of buyers purchasing the commodity

Code :
1 (a) and (b) only
2 (c) and (d) only
3 (a), (b) and (c) only
4 (b), (c) and (d) only

Answer: (a), (b) and (c) only
2 From the following two statements of Assertion (A) and Reasoning (R) suggest the correct code :

Assertion (A) : The equilibrium price is decided at the level where the quantity demanded equals the quantity supplied.

Reasoning (R) : At this level excess of demand and excess of supply both remain zero.

Code :

1 (A) is correct but (R) is incorrect.
2 (A) is incorrect but (R) is correct.
3 (A) and (R) both are correct but (R) is not right explanation of (A).
4 (A) and (R) both are correct and (R) is right explanation of (A).

Answer: (A) and (R) both are correct and (R) is right explanation of (A).
3 Despite differences in cost of production the oligopolists will not vary the prices of their products as per which combination of the following models ?

(a) Collusion model

(b) Cournot’s model

(c) Kinked Demand model

(d) Price Leadership model

Select the correct code.
1 (a) and (b) only
2 (c) and (d) only
3 (a) and (d) only
4 (a), (b) and (c) only

Answer:(a) and (d) only
4 For the following two statements of Assertion (A) and Reasoning (R) suggest the correct code :

Assertion (A) : Low initial price regarded as the principal means for entering into mass market for some new products.

Reasoning (R) : Firms generally enter into production of new products with excess capacity of the plant initially.

Code :
1 (A) is correct but (R) is not correct.
2 (A) is not correct but (R) is correct.
3 (A) and (R) both are correct and (R) is right explanation of (A).
4 (A) and (R) both are correct but (R) is not right explanation of (A).

Answer: (A) and (R) both are correct but (R) is not right explanation of (A).
5 The firm may go for defensive advertising as per which one of the following approaches ?
1 Percentage to sales approach
2 Return on investment approach
3 Competitive parity approach
4 Objective and task approach

Answer: Competitive parity approach
6 Indicate the correct code from the following that does not represent the Profitability Index for an investment proposal of a firm :

(a) Average annual net income earned divided by the investment

(b) Equating annual net cash inflows to investment

(c) Ratio of present value of future cash inflows to investment making it equal to zero

(d) Ratio of present value of future cash inflows to present cash outflows

1 (a), (b) and (c) only
2 (a) and (c) only
3 (b) and (d) only
4 (a), (b) and (d) only

Answer: (a), (b) and (c) only
7 Who proposed the Balance Theory of attitude formation ?
1 Festinger
2 Fritz Heider
3 Charles Osgood and Percy Tannenbaum
4 Rosenberg

Answer: Fritz Heider
8 Which one of the following is an element of motivation according to Vroom’s Vector Valence theory ?
1 Involvement
2 Equity
3 Instrumentality
4 Existence

Answer: Instrumentality
9 Which one of the following is not a component of Bass’ Theory of Transformational Leadership ?
1 Idealized influence
2 Inspirational motivation
3 Intellectual stimulation
4 Team consideration

Answer: Team consideration
10

Assertion (A) : Under stressful situations, a person is unable to listen to and understand the message correctly.

Reasoning (R) : During stressful situations, the psychological frame of mind changes and the message gets distorted due to the beliefs, experiences, goals and values held by the receiver of the message.

Code :
1 (A) and (R) both are correct and (R) is the correct explanation of (A).
2 (A) and (R) both are correct but (R) is not the correct explanation of (A).
3 (A) is correct whereas (R) is incorrect.
4 (R) is correct whereas (A) is incorrect.

Answer: (A) and (R) both are correct and (R) is the correct explanation of (A).
11 Which one of the following types of strike is without the consent of official of union ?
1 Jurisdictional strike
2 Wild cat strike
3 Sympathy strike
4 Slow down strike

Answer: Wild cat strike
12 Which one of the following describes the metamorphosis stage of employee socialisation ?
1 Employee joins organisation with his values, attitudes and expectations.
2 Employee studies the organisation culture.
3 Employee evaluates the dichotomy between expectations and reality.
4 Employee becomes comfortable with organisation and internalises its norms.

Answer: Employee becomes comfortable with organisation and internalises its norms.
13 When employees work longer days in exchange for longer weekends or other days off, it is called :
1 Flexy time
2 Job sharing
3 Compressed work week
4 Extended timing

Answer: Compressed work week
14 ‘Employee relations’ include which of the following ?

(a) Organisation’s efforts to manage relationships between employer and employees.

(b) The programs to prevent and resolve problems arising from work situations.

(c) Relations between management and trade unions.

(d) Organisation’s structure of managing rapport between boss and staff.

Code :
1 (a) and (c)
2 (a), (b) and (d)
3 (b) and (c)
4 (c) only

Answer: (c) only
15 In which of the following, the payment of bonus is linked to performance of specific employees or group of employees ?

(a) Profit sharing

(b) Gain sharing plans

(c) Social system plans

Code :
1 (a) only
2 (b) only
3 Both (a) and (b)
4 (a), (b) and (c)

Answer:(b) only

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