UGC NET Paper II in Management { 2013 December }

1. The Marshallian utility analysis is based on a less valid assumption of

(A) Cardinal measurement of utility

(B) Constant marginal utility of money

(C) Diminishing marginal utility of goods

(D) Additivity of the utility

Answer: (B)

2. An appropriate pricing strategy for a new product to be introduced in the market will be

(A) Average/Marginal cost-plus pricing

(B) Skimming/Penetrating pricing

(C) Product-line pricing

(D) Differential pricing

Answer: (B)

3. Economic capacity of a plant represents the firm’s capability for

(A) Maximum physical output

(B) Maximum marginal output

(C) Break-even level of output and sale

(D) Output that equates average and marginal costs

Answer: (D)

4. Multi-stage approach to product pricing in a firm involves considerations for setting the price as follows:

i. Selection of firm’s objective

ii. Composition of marketing-mix

iii. Selection of target market

iv. Selection of pricing policy and strategy

Indicate correct sequence:

(A) iv → ii → i → iii

(B) iii → i → ii → iv

(C) ii → iv → iii → i

(D) i → iii → ii → iv

Answer: (B)

5. Which one of the following practices is not sought to be regulated under the Consumer Protection Act, 1986?

(A) Sales of defective goods

(B) Supply of services having some deficiency

(C) Misleading advertisements

(D) Goods supplied free of charge

Answer: (D)

6. The leadership prototype

(A) is useful primarily for selection and training of employees

(B) Uses LPC (Least Preferred Co-worker) as an important component

(C) Depicts the image of a model leader

(D) Emphasizes leadership development

Answer: (C)

7. Which is not a perceptual process stage?

(A) Attention/selection

(B) Interpretation

(C) Follow-through

(D) Retrieval

Answer: (A)

8. Which statement is correct?

(A) Goals act as the set of constraints that an organisation must satisfy.

(B) Deterministic goals specify the end or direction towards which the organization applies its efforts, and they can be fairly determined.

(C) Goals may be categorised as deterministic and constraint goals.

(D) All of the above.

Answer: (D)

9. According to Fiedler’s Contingency Model of Leadership, which one of the following is not situational variable?

(A) Leader-Member relations

(B) Task structure

(C) Position power

(D) Maturity of followers

Answer: (D)

10. Which is not a centralized communication network system?

(A) Wheel Network

(B) Y-shaped Network

(C) Circle Network

(D) Chain Network

Answer: (C)

11. Why is ‘procedural justice’ important in the context of the management of misconduct?

(A) It reflects on the integrity of HR professionals.

(B) It ensures that individuals have a sense that they have been treated fairly.

(C) It reflects on the values and attitudes of top management.

(D) It protects the interest of daily wage earners.

Answer: (B)

12. To be effective a points-based rating system requires:

(A) Close management control

(B) Comprehensive, reliable and consistent information

(C) Objectivity in assessments

(D) 360° assessment

Answer: (B)

13. Too much of reliance on internal recruitment can result in

(A) Reduced job performance

(B) High labour turnover

(C) Internal conflict

(D) Poor group dynamics

Answer: (A)

14. The concept of stagnation in the context of HRM means:

(A) Lack of appropriate selection criteria.

(B) HR staff having very limited experience outside the HR functions.

(C) Over-reliance on the internal labour market to fill new positions.

(D) Lack of integration of recruitment and selection into the wider human resource function.

Answer: (B)

15. Negotiations are an important aspect of the collective-bargaining process. What do they ensure?

(A) That conflict is contained within manageable boundaries.

(B) That there is an agreement between all parties involved.

(C) That conflict is always resolved.

(D) It achieves a set of lasting agreements.

Answer: (A)

16. If the going rate of interest is above the coupon rate, the bond will sell:

(A) At a Premium

(B) At a Discount

(C) At Par

(D) None of the above

Answer: (B)

17. In case the sales or project’s investment deviates from expected ones, it needs

(A) Optimistic scenario analysis

(B) Sensitivity analysis

(C) Simulation analysis

(D) Financial break-even analysis

Answer: (B)

18. ‘Trading on equity’ refers to

(A) Optimum capital structure

(B) Appropriate capitalisation

(C) Capital gearing

(D) Watered capital

Answer: (C)

19. Match the items of two lists, giving the correct code:

List – I                                                List – II

a. Dividend Capitalisation Model       i. John Lintner

b. Dividend Relevance Model            ii. James E. Walter

c. Dividend Irrelevance Model           iii. Myron Gordon

d. Dividend Payout Model                 iv. Modigliani & Miller


       a b c d

(A) ii i iii iv

(B) i iv ii iii

(C) iii ii iv i

(D) iv iii i ii

Answer: (C)

20. The excess payment by the new company to the amalgamating companies for the appraised value of the assets and liabilities taken over is accounted as

(A) Capital Reserve

(B) Bonus Share Capital

(C) Goodwill

(D) Amount paid for the acquisition of the brand

Answer: (C)

21. Which of the following is direct marketing?

(A) Face to-face marketing

(B) Catalogue marketing

(C) Direct mailing

(D) Test marketing

Answer: (A)

22. In marketing research, primary data can be collected through

(A) Observational Method

(B) Survey Method

(C) Experimental Method

(D) All of the above

Answer: (D)

23. Holistic marketing does not include

(A) Internal Marketing

(B) Integrated Marketing

(C) Performance Marketing

(D) Financial Marketing

Answer: (D)

24. Which of the following is not a distinctive characteristic of services?

(A) Transparency

(B) Intangibility

(C) Inseparability

(D) Perishability

Answer: (D)

25. To remain dominant, a market leader looks for

(A) Ways to expand total market demand

(B) Attempting to protect its current share

(C) Increasing its market share

(D) all of the above

Answer: (D)

26. Consider the names of organisations/persons listed in List – I and their role/functions given in List – II:

List – I                                                                        List – II

a. Bureau of Indian Standards (BIS)                          i. Measurement of Service quality

b. Zeithmal, Parasuraman and Berry                           ii. Measurement of quality of Educational service

c. ISO                                                                          iii. Standardisation and quality control of manufactured goods

d. National Assessment and Accreditation Council   iv. Quality marking and Certification of standards

Indicate the correct matching:


      a b c d

(A) i ii iii iv

(B) ii iii iv i

(C) iv ii iii i

(D) iii i iv ii

Answer: (D)

27. In Linear Programming, which one of the following cases is not a type of sensitivity analysis?

(A) Model building

(B) Objective-function ranging

(C) Pricing out

(D) Right hand-side ranging

Answer: (A)

28. The upper control limit for an X chart, with n = 9, = 26.7, R = 5.3 and d2 = 2.970, is

(A) 24.9

(B) 26.11

(C) 27.29

(D) 28.48

Answer: (D)

29. The additional cost of shortening an activity by one unit of time is

(A) Cost slope

(B) Crash cost

(C) Crash time

(D) Least cost

Answer: (A)

30. Which method is least suited for forecasting the demand of a new product?

(A) Survey of Buyers’ Intentions

(B) Composite Opinions of Sales Force

(C) Test Marketing

(D) Time-Series Analysis

Answer: (D)

31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is

(A) 0.10

(B) 0.90

(C) 0.95

(D) 0.15

Answer: (B)

32. When performing a Chi-square hypothesis test, what happens when expected frequencies in several cells are too small?

(A) Value of χ2 will be overestimated.

(B) The null hypothesis will be more likely to be rejected than it should be.

(C) The degrees of freedom are greatly reduced.

(D) (A) and (B), but not (C).

Answer: (D)

33. Under which situation, the method of ‘experimentation, modeling and sensitivity analysis’ is used to determine the information requirements of the management?

(A) Total Uncertainty

(B) High Risk

(C) Low Risk

(D) Certainty

Answer: (A)

34. The technique(s) that can be used in data mining is/are:

(A) Non-linear Regression Methods

(B) Decision tree

(C) Neural networks

(D) All of the above

Answer: (D)

35. A Binomial distribution may be approximated by a Poisson distribution, if:

i. ‘n’ is large and ‘p’ is large.

ii. ‘n’ is small and ‘p’ is large.

iii. ‘n’ is small and ‘p’ is small.

iv. ‘n’ is large and ‘p’ is small.


(A) i, ii and iii

(B) ii only

(C) iii and iv only

(D) iv only

Answer: (D)

36. Double taxation relief is normally provided by the country in which the parent company has its legal residence. It is provided in the following modes:

i. Credit system without deferral

ii. Credit system with deferral

iii. Deduction of tax paid abroad as expenditure

iv. Investment credit

v. Tax subsidy

Identify the correct combination.


(A) i, ii, iii and iv

(B) i, ii, iv and v

(C) ii, iii, iv and v

(D) i, ii, iii and v

Answer: (A)

37. The strategies of a global firm are affected by the following factors:

i. Different countries have different labour mixes.

ii. The legal, economic, social and cultural environment varies from one country to another.

iii. Different countries have different time lines and geographical boundaries.

iv. Political relationship between the home country and the host country.

Indicate the correct combination.


(A) i, ii and iii

(B) ii, iii and iv

(C) i, ii and iv

(D) i and ii only

Answer: (C)

38. Match the items of List – I and List – II:

List – I                        List – II

a. UNCTAD I                         i. India

b. UNCTAD II           ii. Brazil

c. UNCTAD X           iii. Thailand

d. UNCTAD XI         iv. Switzerland

Indicate the correct matching.


       a b c d

(A) iv i iii ii

(B) iii i iv ii

(C) ii i iii iv

(D) iv i ii iii

Answer: (A)

39. In the context of International Business, whether an equal distribution of income in the host country:

(A) Has nothing to do with the MNCs market segmentation strategy.

(B) Matters greatly to the MNCs market segmentation strategy.

(C) Has little impact on the MNCs market segmentation strategy.

(D) Has a significant impact on the MNCs market segmentation strategy if the economy is at the take-off stage.

Answer: (A)

40. Statement-I: Cost of retained earnings is included in the cost of equity in the context of international business.

Statement-II: Interest rate swap and currency swap are used interchangeably in international business.

(A) Statement I is true, but Statement II is false.

(B) Statement I is false, but Statement II is true.

(C) Both the statements I and II are true.

(D) Both the Statements I and II are false.

Answer: (D)

41. Who said – “An entrepreneur always searches for change, responds to it and exploit it as an opportunity.”?

(A) James Burna

(B) McClelland

(C) Peter F. Drucker

(D) Robert C. Ronstadt

Answer: (C)

42. ‘Kakinada Experiment’ on achievement motivation was conducted in

(A) Uttar Pradesh

(B) Jammu & Kashmir

(C) Andhra Pradesh

(D) Gujarat

Answer: (C)

43. The entrepreneurial process consists of the following steps:

i. Management of the resulting enterprise.

ii. Determination of the required resources.

iii. Identification and evaluation of the opportunity.

iv. Development of the business plan.

Indicate the correct sequence.


(A) iii iv i ii

(B) iv i iii ii

(C) iii iv ii i

(D) iv i ii iii

Answer: (C)

44. Match the items given in List – I and List – II:

List – I                                    List – II

a. Market Research                 i. Sales promotion

b. Financial Plan                      ii. Form of business

c. Ownership                           iii. Budgeting

d. Marketing Plan                   iv. Exploring market opportunity


      a b c d

(A) i ii iii iv

(B) iv iii i ii

(C) iv iii ii i

(D) i ii iv iii

Answer: (C)

45. TePP stands for

(A) Technology for Promotion and Production

(B) Trade for Profitability and Productivity

(C) Technopreneur Promotion Programme

(D) None of the above

Answer: (C)

46. Indo-American Model of Corporate Governance sets top most priority to

(A) Business growth

(B) Customers

(C) Employees

(D) Shareholders

Answer: (D)

47. A good governance in corporate sector depends upon

(A) Strong political will

(B) Transparency and accountability

(C) Trade Union practices

(D) Social and political responses

Answer: (B)

48. Corporate leaders in India in private sector are tempted by a very high target of ________ and the concerned employees have to achieve the target for promotion and stability.

(A) Money making

(B) Business growth

(C) Product development

(D) Profit

Answer: (D)

49. Corporate business ethics is ________ norms and pattern that spring from organizational view of good and bad, right and wrong.

(A) Social

(B) Behavioural

(C) Institutional

(D) Individual

Answer: (B)

50. Trade Union strike supporting a political cause and affecting production activities is a problem related to

(A) Socio-economic phenomenon

(B) Ethical and technical phenomenon

(C) Ethical and economic phenomenon

(D) Socio-political phenomenon

Answer: (C)

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