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Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 2

Questions
1 Which one of the following is a contract made through collusion between management and labour representatives and contains terms beneficial to management and unfavourable to union workers ?
1 Unilateral contract
2 Aleatory contract
3 Sweetheart contract
4 Invalid contract

Answer:Sweetheart contract
2 When an employee is willing to go above and beyond what is typically expected in his or her role, it is known as :
1 Employee Empowerment
2 Employee Engagement
3 Employee Enhancement
4 Employee Encouragement

Answer: Employee Engagement
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3 Indicate the correct code for the following types of decisions to be incorporated within financial decisions.

(a) Investment decisions

(b) Financing decisions

(c) Pricing decisions

(d) Profit distribution decisions

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

Answer:(a) ,(b)and (d) only
4 In case the profitability index of an investment is equal to one(=1), the net present value of the investment will be :
1 More than one (1)
2 Equal to one (=1)
3 Less than one (1)
4 Equal to zero (=0)

Answer: Equal to zero (=0)
5 For the following two statements of Assertion (A) and Reasoning (R) select the correct code :

Assertion (A) : Risk analysis of capital investment is the most complex and controversial area in finance.

Reasoning (R) : Capital investment decisions are based on estimates of future cash inflows.

Code :
1 (A) is incorrect but (R) is correct.
2 (A) is correct but (R) is incorrect.
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 and (R) is right explanation of (A).
6 Acquisition of firms is the same as :

(a) a merger

(b) an amalgamation

(c) a takeover

(d) an absorption Select the correct

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

Answer: (c) and (d) only
7 M-M Hypothesis for capital structure is based on which code of the following assumptions ?

(a) Capital markets are perfect

(b) Firms belong to equal risk class

(c) There is 100% dividend payout ratio

(d) There are nominal corporate taxes

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

Answer: (a), (b) and (c) only
8 Indicate the correct code for the following two statements of Assertion (A) and Reasoning (R) :

Assertion (A) : Invertors in capital market now have higher inclination for investment in debentures.

Reasoning (R) : Debentures have active secondary markets now.

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

Answer: Both (A) and (R) are incorrect.
9 Which one of the following expresses the tendency of consumers to interpret information in a way that fits one’s preconceptions in the consumer buying behaviour ?
1 Selective Attention
2 Selective Distortion
3 Selective Retention
4 Subliminal Perception

Answer: Selective Distortion
10 Which one of the following is not a factor that reduces price sensitivity of a product ?
1 The product is more distinctive.
2 Buyers are fully aware of substitutes.
3 Buyers cannot store the product.
4 The product is assumed to have more quality, prestige, or exclusiveness.

Answer:Buyers are fully aware of substitutes.
11 Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand is known as :
1 Competitive points-of-parity
2 Relational points-of-parity
3 Correlational points-of-parity
4 Points-of-difference

Answer: Points-of-difference
12 Which one of the following represents ‘Penetrated market’ ?
1 The part of the qualified available market the company decides to pursue.
2 The set of consumers who are buying the company’s product.
3 The set of consumers who have interest, income, and access to a particular offer.
4 The set of consumers with a sufficient level of interest in a market offer.

Answer:The set of consumers who are buying the company’s product.
13 The following are the statements relating to the new product development. Indicate the statements being correct or incorrect.

Statement (I) : Most established companies do not focus on incremental innovation for new product development.

Statement (II) : Most established companies enter new markets by tweaking products for new customers.

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.
14

Statement (I) : The critical path has been defined as the longest duration path between the first and the last nodes of a project.

Statement (II) : The duration of a project is not always the same as the duration of its critical path.

Statement (III) :The Earliest start and finish times of an activity are based on the condition that every activity will not be started and finished as early as possible.

Find the correct code for given statements being correct or incorrect.
1 Statement (I) and (II) are correct but (III) is not correct.
2 Statement (I) and (III) are correct but (II) is not correct.
3 Statement (I) is correct but (II) and (III) are not correct.
4 Statement (II) is correct but (I) and (III) are not correct.

Answer:Statement (I) is correct but (II) and (III) are not correct.
15

Statement (I) : Internal failure costs are generated after the product is dispatched as a result of nonperformance to requirements.

Statement (II) : External failure costs are generated before the product is dispatched as a result of nonconformance to requirements.

Which of the following code is correct related to above statements being correct or incorrect ?
1 Both Statements (I) and (II) are correct.
2 Both Statements (I) and (II) are not correct.
3 Statement (I) is correct but (II) is not correct.
4 Statement (II) is correct but (I) is not correct.

Answer: Both Statements (I) and (II) are not correct.

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