Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 10

Questions
1 Which one of the following is not a characteristic of the ‘Hot - Stove Rule’ of disciplinary action ?
1 Discipline is directed against the act and not against anybody else.
2 Rules and regulations fore-warn regarding consequences of indiscipline.
3 Consistency of disciplinary action is certain.
4 Discipline is personal.

Answer:Discipline is personal.
2 Which combination of the following statements about the net present value method of the investment project appraisal is correct ?

(a) It considers all the cash flows from the project

(b) It gives more weightage to distant flows than near-term flows

(c) It considers the time value of money

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

Answer:(a) and (c) only
3 Capital structure of a business unit consists of :
1 Equity and preference share capital
2 Equity, long-term debt and short-term loan
3 Equity capital and debt capital
4 Equity, preference and debt capital

Answer:Equity, preference and debt capital
4 In the formula KD=

I used for computation of the cost of debt capital, B0 denotes as which B0 one of the following ?

1 Net cash inflow at the time of issue
2 Market price of debenture
3 Face value of debenture
4 Probable net cash inflow to debenture holder on sale of the debenture in near future

Answer:Net cash inflow at the time of issue
5 In computation of the weighted average cost of capital, weights are assigned as per :
1 Proportion of fixed and current assets
2 Proportion of different sources of finance
3 Proportion of long-term and short term debts
4 Proportion of the various components of equity in the business

Answer:Proportion of different sources of finance
6 “The customer wants an inexpensive car”. This is an example of which one of the following type of needs ?
1 Stated needs
2 Real needs
3 Unstated needs
4 Secret needs

Answer:Stated needs
7 Assertion (A) : Marketers are increasingly asked to justify their investments in financial and profitability terms and rarely in terms of building the brand and customer base.

Reasoning (R) : Organizations recognize that little of their market value comes from intangible assets.

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

Answer:Both (A) and (R) are incorrect
8 Which one of the following is a false statement ?
1 The most attractive market segment is one in which entry barriers are low and exit barriers are high.
2 A market segment is unattractive when there are actual or potential substitutes for the product.
3 A market segment is unattractive if buyers possess strong or growing bargaining power.
4 A segment is unattractive if the company’s suppliers are concentrated or organized

Answer:The most attractive market segment is one in which entry barriers are low and exit barriers are high.
9 Which one of the following OR Models is appropriate for project planning and scheduling operations ?
1 Games Models
2 Inventory Models
3 Network Models
4 Queuing Models

Answer:Network Models
10 While obtaining the optimal solution to the linear programming problem, by using graphical method, which one of the following is contradictory to the essential requirements ?
1 Collection of all feasible solutions entails the use of a convex set
2 There are infinite number of basic feasible solutions within the solution space
3 In the convex set of the feasible solutions, atleast one of the extreme points gives an optimal solution
4 The value of the objective function will be the same for all convex combinations of the extreme points if such points are more than one in the feasible solution space

Answer:There are infinite number of basic feasible solutions within the solution space
11 While using Markov Analysis, which one of the following assumptions is incompatible ?
1 The system has an infinite set of possible outcomes
2 Transition probabilities are constant over a given length of time
3 The condition of the system in any given period depends on preceding period condition
4 Changes in the system may occur only once during each period

Answer:The system has an infinite set of possible outcomes
12 Statement - I : A hypothesis test for comparing the variances of two independent populations with the help of variances of two small samples is known as chi-square test.

Statement - II : To test the hypothesis that the population standard deviation has a specific value on the basis of the values of sample standard deviation of small sized sample, F-test is relevant.

Code :
1 Both the statements are correct
2 Both the statements are incorrect
3 Statement - I is correct while Statement - II is incorrect
4 Statement - I is incorrect while Statement - II is correct

Answer:Both the statements are incorrect
13 Statement - I : A sampling distribution of mean, prepared on the basis of small sized samples from a population which is not normally distributed, is not normally distributed.

Statement - II : To test the significance of the difference between means of two small sized samples when the parameter values of the standard deviations are given, Z-test can be applied.

Code :
1 Both the statements are correct
2 Both the statements are incorrect
3 Statement - I is correct while Statement - II is incorrect
4 Statement - I is incorrect while Statement - II is correct

Answer:Both the statements are correct
14 Which one of the following is restricted non-probability based sampling method ? `
1 Stratified sampling
2 Quota sampling
3 Cluster sampling
4 Systematic sampling

Answer:Quota sampling
15 Statement - I : When a null hypothesis is true but as per the hypothesis- testing, it is rejected; it is known as Type II error in hypothesis-testing.

Statement - II : For testing the significance of the differences among the performance of more than two sample groups when the data are non-parametric, Kruskal-Wallis (H) test is appropriate.

Code :
1 Both the statements are correct
2 Both the statements are incorrect
3 Statement - I is correct while Statement - II is incorrect
4 Statement - I is incorrect while Statement - II is correct

Answer:Statement - I is incorrect while Statement - II is correct

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