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Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 5

Questions
1 Who among the following relatives of a deceased insured person is not “dependent” under the Employees’ State Insurance Act, 1948 ?
1 Widow
2 Widowed mother
3 Legitimate son who has attained the age of twenty five
4 Widowed daughter-in-law

Answer:Legitimate son who has attained the age of twenty five
2 Assertion (A) : One of the trends to build a sustainable competitive advantage are innovations and innovations management.

Reasoning (R) : Human Resource Management has to be able to connect innovations with the traditional change management to design a true powerful weapon against competitors in the market.

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 (R) is correct but (A) is incorrect

Answer:Both (A) and (R) are correct ; and (R) is the right explanation of (A).
3 Which of the following is not a principle of ‘Hot Stove Rule’ ?
1 Prior Warning
2 Immediate Response
3 Consistent Action
4 Personal Approach

Answer:Personal Approach
4 In India, tripartite bodies of industrial relations began on the recommendations of which one of the following commissions ?
1 Law Commission of India
2 Whitley Commission
3 National Statistical Commission
4 Kothari Commission

Answer:Whitley Commission
5 The extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers’ psychological or social needs is known as :
1 Brand judgments
2 Brand resonance
3 Brand imagery
4 Brand performance

Answer:Brand imagery
6 Which one of the following is an example of ‘Real needs’ of a customer ?
1 The customer wants an inexpensive mobile phone.
2 The customer wants a car whose operating cost, not initial price, is low.
3 The customer expects good service from the dealer.
4 The customer wants friends to see him as a savvy consumer.

Answer:The customer wants a car whose operating cost, not initial price, is low.
7 The following statements relate to the functions of the marketing channel members. Indicate the statements being correct or incorrect.

Statement (I) : Channel members do not gather information about potential and current customers, competitors and other actors and forces in the marketing environment.

Statement (II) : Channel members acquire the funds to finance inventories at different levels in the marketing channel.

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.
8 Which one of the following attributes of advertising regarding launching of a new product calls for spending all the advertising budget in a single period ?
1 Pulsing
2 Continuity
3 Concentration
4 Flighting

Answer:Concentration
9 Select the correct code of the Assertion (A) and Reasoning (R) :

Assertion (A) : Companies should measure the profitability of their products, territories, customer groups, segments, trade channels and order sizes.

Reasoning (R) : Measure of profitability helps companies determine whether to expand, reduce, or eliminate any product or marketing activities to ensure profitability control.

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 (R) is correct but (A) is incorrect

Answer:Both (A) and (R) are correct and (R) is the right explanation of (A).
10 In which one of the following types of store retailers, large, low-cost, low margin, high-volume, selfservice store attributes are designed to meet total needs for food and household products ?
1 Supermarket
2 Superstore
3 Discount store
4 Convenience store

Answer:Supermarket
11 A firm earns return on investment at the rate of 20% , earning per share is ` 15, payout ratio is 50%, cost of equity is 12%; the market price per share as per Walter’s model is :
1 300
2 240
3 75
4 166.67

Answer:166.67
12 Consider the below mentioned statements and state the correct code of the statements being true or false.

Statement (I) : A debt-equity ratio of 2 : 1 indicates that for every 1 unit of equity, the company has raised 2 units of debt.

Statement (II) : The cost of floating an equity issue is lesser than the cost of floating a debt

Code :
1 Both the Statements(I) and (II) are false.
2 Both the Statements (I) and (II) are true.
3 Statement (I) is false and Statement (II) is true.
4 Statement (I) is true and Statement (II) is false.

Answer:Statement (I) is true and Statement (II) is false.
13 Debt Service Coverage Ratio indicates which one of the following ?
1 Effective utilisation of assets.
2 Number of times fixed assets cover borrowed funds.
3 Excess of Current Assets over Current Liabilities.
4 Number of times surplus covers interest and instalments of Term Loans.

Answer:Number of times surplus covers interest and instalments of Term Loans.
14 Authorised capital of a company is ` 5 lacs ; 40% of it is paid up. Loss incurred during the year is ` 50,000. Accumulated loss carried from last year is ` 2 lac. The company has a Tangible Net Worth of : `
1 2 lacs
2 2.50 lacs
3 (−)50,000
4 7,50,000

Answer:(−)50,000
15 Which one of the following is related to control function of the financial manager ?
1 To negotiate with bankers for a loan.
2 To analyse variance between standard costs and actual costs.
3 To estimate the future cash flows from a proposed project.
4 To advertise the public issue of the firm.

Answer:To analyse variance between standard costs and actual costs.

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