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Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 42

1 While granting the term loan, if lending institution puts a condition to reduce the debtequity ratio by issuing additional equity share-capital or preference share capital, it is known as
1 asset-related restrictive covenant
2 cash flow related restrictive covenant
3 control related restrictive covenant
4 liability related restrictive covenant

Answer:liability related restrictive covenant
2 According to Lintner’s model of corporate dividend behaviour, the dividend for the year ‘t’ is dependent on :

I. earnings per share for the year t

II. dividend per share for the year t-1

III. adjustment rate

IV. target pay-out ratio

V. market price of share

Select the correct code :

1 I, II and III are correct.
2 II, III, IV and V are correct
3 I, II, III and IV are correct.
4 I, II, IV and V are correct

Answer: I, II, III and IV are correct.


3 Which of the following concepts holds that consumers prefer the products which are easily available and are inexpensive ?
1 The product concept
2 The production concept
3 The selling concept
4 The marketing concept

Answer:The production concept
4 ________ is the added value endowed to a product or service.
1 Brand equity
2 Brand image
3 Brand loyalty
4 Brand preference

Answer: Brand equity
5 The step after ‘concept testing’ in the new product development process is
1 Business analysis
2 Marketing strategy development
3 Product development
4 Test marketing

Answer: Marketing strategy development
6 When the total market expands, the _________ usually gains the most.
1 Market challenger
2 Market leader
3 Market follower
4 Market nicher

Answer:Market leader
7 ‘Large output per unit of space’ is an orientation of which type of plant layout ?
1 Product layout
2 Process layout
3 Fixed-Position layout
4 Cellular layout

Answer: Product layout
8 Which of the following steps is the first step in production scheduling ?
1 Sequencing
2 Loading
3 Expediting
4 Classifying

9 A defence equipment manufacturing company uses bolts at a constant rate of 10000 kg per year. The bolt cost ` 80 per kg and the company estimates that it costs ` 400 to place an order and the carrying cost of inventory is 10 percent per year. How frequently should orders for bolts be placed ?
1 5
2 10
3 15
4 20

Answer: 10
10 The number of allocated cells in the optimal solution table of a transportation problem having m origins and n destinations is
1 m + n – 1
2 m + n –1 or more
3 m + n –1 or less
4 m + n

Answer: m + n –1 or less
11 The co-efficient of artificial variable in a Maximization problem of LP is
1 M
2 -M
3 0
4 1

12 Chebyshev’s theorem provides that at least 89% of the values will lie within ± 3 standard deviations from the mean for
1 Bell-shaped distributions
2 Positively-skewed distributions
3 Negatively-skewed distributions
4 All distributions

Answer:All distributions
13 How many degrees of freedom should be used to apply chi-square test statistic on a contingency table, having 5 rows and 4 columns ?
1 20
2 12
3 7
4 9

14 The ________ and its alternative provides the ability to serve dynamic content to browsers.
1 Common Gateway Interface
2 Cryptography
3 General Pocket Radio Service
4 Cellular Digital Pocket Data

Answer: Common Gateway Interface
15 Which is the most suitable domain extension for an Indian NGO to do e-business ?
1 .gov
2 .com
3 .org
4 .us


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