UGC NET Paper III in Management { 2013 June }

1. From the following identify one which is not a collusive oligopoly model

(A) Cartels

(B) Edgeworth Model

(C) Price Leadership

(D) Market Share Model

Answer: (B)

2. The rate at which the consumer can trade one good for another is termed as marginal rate of substitution in

(A) Exchange

(B) Consumption

(C) Production

(D) The distribution

Answer: (A)

3. If demand equation is given by D = 1000 – P and the supply equation is given by S = 100 + 4P, price will be

(A) 160

(B) 180

(C) 170

(D) 200

Answer: (B)

4. Arrange the following steps, involved in the estimation of a demand function using econometric analysis, in the proper order

(i) Collection of data

(ii) Estimating the parameters of the model

(iii) Mathematical specification of the relationship among the variables

(iv) Using the estimates to arrive at the estimates of variables.

(v) Identification of variables


(A) (v), (i), (iii), (iv), (ii)

(B) (i), (ii), (iii), (iv), (v)

(C) (i), (ii), (iv), (iii), (v)

(D) (v), (i), (iii), (ii), (iv)

Answer: (D)

5. Match the items given in Column A with the suitable items given in Column B:

Column A                                                                                                                   Column B

a. Maximisation of society’s welfare even when individuals behave selfishly to further their own economic status.                                                                                                             i. Equilibrium

b. State of balance from which there is no tendency to change.                                ii. Non-Satiation

c. Best possible state within a given set of constraints.                                              iii. The invisible hand

d. A situation wherein a customer always prefer more of goods to less of goods.    iv. Optimisation


       a b c d

(A) iv i iii ii

(B) ii i iv iii

(C) iii i iv ii

(D) iv i ii iii

Answer: (C)

6. Which one is not the technique of personality measurement?

(A) Projective Technique

(B) Word Association Technique

(C) Raven’s Progressive Matrices

(D) Sentence Completion Technique

Answer: (C)

7. Drive is explained by

(A) Any strong stimulus that impels action.

(B) Any object, event exiting in the environment.

(C) Anything that increases the repetition of behaviour.

(D) None of the above

Answer: (A)

8. Consider the following phases of Organisational Development (OD):

a. Entry into the organisation

b. Development of internal resources

c. Problem identification

d. Specific intervention

e. Building a collaborative culture

Rearrange the above stages in an orderly sequence:

(A) a → c → b → d → e

(B) a → b → c → d → e

(C) c → b → a → e → d

(D) a → c → d → e → b

Answer: (D)

9. Match the following:

Explanation                                                                                                                             Term

a. The beliefs or ideas one has about an object or situation                                                    1. Attitude

b. The feelings or emotions one has about an object or situation                                           2. Cognitive component

c. Psychological discomfort experienced when attitudes and behavior are inconsistent       3. Affective component

d. How one intends to act or behave toward someone or something                                     4. Behavioural component

e. Learned predisposition toward a given object                                                                    5. Cognitive dissonance


       a b c d e

(A) 1 2 3 4 5

(B) 2 3 5 4 1

(C) 3 2 4 5 1

(D) 5 3 4 2 1

Answer: (B)

10. Match the theories given in Column – I with the explanations in Column – II:

Column – I                                          Column – II

a. Super ego                                        1. Individual moves from a state of passivity as a child to state of activity as an adult.

b. Closure                                            2. Social values and personal norms that serve as an ethical constraint on behaviour.

c. Immaturity – Maturity Theory        3. Perception of a person about how others are perceiving his qualities.

d. Looking glass-self                           4. People when faced with incomplete information tend to fill gaps themselves.


       a b c d

(A) 1 2 3 4

(B) 1 2 4 3

(C) 2 1 3 4

(D) 2 4 1 3

Answer: (D)

11. What is the procedure in which an employer and a group of employees agree to the conditions of work?

(A) Dispute settlement

(B) Collective bargaining

(C) Industrial democracy

(D) None of the above

Answer: (B)

12. Factor comparison method is used as a technique of

(A) Job Analysis

(B) Job Evaluation

(C) Job Design

(D) None of the above

Answer: (B)

13. Succession planning can best be explained by

(A) Activity in which managers make decisions regarding the advancement potential of subordinates.

(B) Activity that focuses on preparing people to fill executive positions.

(C) A chart showing the possible directions and career opportunities available in an organization.

(D) None of the above

Answer: (B)

14. Employees join union when they

(A) Are dissatisfied with certain aspects of their jobs.

(B) Feel that they lack influence with management to make the needed change.

(C) Feel unionization as a solution to their problems.

(D) All the above

Answer: (D)

15. Identify the correct sequence of the steps of grievance procedure required to be followed for the grievance handling

1. Departmental Manager

2. Immediate Supervisor

3. Arbitration

4. Trade Union’s intervention

(A) 1, 2, 3 & 4

(B) 2, 3, 1 & 4

(C) 2, 1, 4 & 3

(D) 2, 4, 1 & 3

Answer: (C)

16. Match the following:

a. Job posting system              1. A company maintained record of employee’s abilities, skills, knowledge and education.

b. Career path                          2. A chart showing the possible direction and opportunities available to an employee in the organization.

c. Skills inventory                   3. A collection of career development materials.

d. Career Resource Centre      4. A system in which an organization announces job openings.


       a b c d

(A) 1 2 3 4

(B) 2 3 4 1

(C) 4 2 1 3

(D) 3 4 1 2

Answer: (C)

17. Match the following:

a. Attrition                              1. Separation that occurs when an employer decides to terminate its relationship with an employee due to economic necessity.

b. Downsizing                         2. A company’s strategy of separation of employees to reduce the scale (size) and scope of its business in order to improve the company’s financial performance.

c. Involuntary separation        3. The process of reorganizing a company’s employees to improve their efficiency.

d. Right sizing                         4. An employment policy designed to reduce the company’s workforce by not refilling job vacancies that are created by turnover.


       a b c d

(A) 1 2 3 4

(B) 4 2 1 3

(C) 3 2 4 1

(D) 2 1 3 4

Answer: (B)

18. Which one of the following is the advantage of team-based pay for performance plans?

(A) Financial incentives can shape a person’s goals.

(B) Can help the firm to attain individual equity.

(C) Fit an individualistic culture.

(D) Aids performance measurement.

Answer: (D)

19. Which one of the following is not Human Resource requirement estimation method?

(A) Regression Analysis

(B) Ratio Analysis

(C) Top-down Approach

(D) All of the above

Answer: (D)

20. Which of the following form for improving workers participation in management was included in the recommendations of the Justice Rajinder Sachar Committee report?

(A) Works Committee

(B) Joint Management Council

(C) Workers’ representation in the Board of Directors and allotment of equity to workers

(D) Unit Council

Answer: (C)

21. JK Ltd. has earned 8% return on total assets of Rs. 50, 00,000 and has a Net Profit Ratio of 5%. Find out the sales of the firm.

(A) Rs. 4, 00,000

(B) Rs. 2, 80,000

(C) Rs. 80, 00,000

(D) Rs. 83, 33,333

Answer: (C)

22. Net Present Value Method and Internal Rate of Return Method of capital budgeting techniques may give conflicting accept-reject decision due to

1. Disparity in initial investment

2. Disparity in timing of cash flow

3. Disparity in the life of the project

(A) 1 only

(B) 2 only

(C) 1 and 2 only

(D) 1, 2 and 3

Answer: (D)

23. Beta B of risk-free investment is

(A) – 1

(B) 0

(C) 1

(D) None of these

Answer: (B)

24. A firm’s inventory planning period is one year. Its inventory requirement for this period is 400 units. Assume that its acquisition costs are Rs. 50 per order. The carrying costs are expected to be Rs. 1 per unit per year for an item. What is EOQ?

(A) 800 units

(B) 200 units

(C) 100 units

(D) None of the above

Answer: (B)

25. Margin of Safety ratio can be calculated as

(A) (Actual Sales – Breakeven Sales)/Actual Sales × 100

(B) (Actual Sales – Break-even Sales)/ Break even Sales × 100

(C) (Break even Sales – Actual Sales)/ Actual Sales × 100

(D) (Break even Sales – Actual Sales)/ Break even Sales × 100

Answer: (A)

26. This cost arises out of the failure of the customers to meet their obligations when payment on credit sales becomes due after the expiry of the credit period.

(A) Default Cost

(B) Delinquency Cost

(C) Capital Cost

(D) Collection Cost

Answer: (B)

27. The following data are available from the annual report of a company : Current Assets Rs. 4,80,000; Current Liabilities Rs. 3,00,000; Average total assets Rs. 20,00,000; Operating income Rs. 2,40,000; Average total equity Rs. 8,00,000; Net income Rs. 80,000.

Which of the following statement is correct?

(A) Return on equity exceeds the return on assets.

(B) Working capital is Rs. 12, 00,000.

(C) Current Ratio is 0.625 to 1.

(D) None of the above.

Answer: (D)

28. The annual credit sales of a firm is Rs. 12, 80,000 and the debtors amount to Rs. 1, 60,000. The debtors turnover and average collection period are _____.

(A) 4 & 90 days

(B) 8 & 45 days

(C) 6 & 60 days

(D) 8 & 60 days

Answer: (B)

29. The formula used for valuation of equity shares with assumption of normal growth in dividend is

(A) D0 / (Ke – g)

(B) D1 / (Ke – g)

(C) E0 / (Ke – g)

(D)E1 / (Ke – g)

Answer: (B)

30. Match the following:

List – I            (Statement)                                                                                         List – II (Term)

I. A combination of two puts and one call with the same exercise price and expiration date.          1. Strap

II. A combination of one put and two calls with the same exercise price and expiration date.         2. Strip

III. A portfolio of put and call with the same expiration date but with different exercise price.      3. Strangle

IV. A position where the option writer does not hold a share in his portfolio that has a counter balancing effect.                                                                                                                         4. Naked option


      I II III IV

(A) 2 1 3 4

(B) 1 2 3 4

(C) 2 1 4 3

(D) 1 3 2 4

Answer: (A)

31. “Motivational research is a form of market research that attempts to discover the deeper reasons why people buy.” Who said it?

(A) Manson and Rath

(B) Stanton

(C) Still and Scweff

(D) Philip Kotler

Answer: (A)

32. In multi-level channel arrangement Jobber stands in between ________.

(A) Manufacturer and wholesaler

(B) Wholesaler and retailer

(C) Retailer and consumer

(D) None of these

Answer: (B)

33. A company following a strategy of advertising the product for a period followed by a period with no advertising is called

(A) Concentration

(B) Flighting

(C) Pulsing

(D) Continuity

Answer: (B)

34. Franchise organisation is an example of ______ vertical marketing system.

(A) Corporate

(B) Administered

(C) Contractual

(D) Co-operative

Answer: (C)

35. Three statements are given below:

Statement – I: Introducing an existing product in the new market is called market development.

Statement – II: Introducing a new product in the existing market is called diversification.

Statement – III: Introducing an existing product in the existing market is called market penetration.

Choose the correct option about the statements from among the options given below:

(A) Statements I & II are only correct.

(B) Statements I & III are only correct.

(C) Statements II & III are only correct.

(D) Statements I, II & III are correct.

Answer: (B)

36. Two statements are given below relating to sales promotion:

Statement – I: Sweep Stakes calls for consumers to submit an entry to be examined by a panel of judges who will select the best entry.

Statement – II: A contest asks consumers to submit their names in a drawing.

Choose the most appropriate answer from among the options given relating to the statements:

(A) Statement – I is correct and II is wrong.

(B) Statement – II is correct and I is wrong.

(C) Both statements are wrong.

(D) Both statements are correct.

Answer: (C)

37. Arrange the following steps in the perceptional process in the sequential order:

1. Interpretation

2. Memory

3. Exposure

4. Attention

(A) 4, 3, 1, 2

(B) 3, 2, 1, 4

(C) 3, 4, 1, 2

(D) 4, 3, 2, 1

Answer: (C)

38. Match the following:

List – I                                                List – II

(Motivational Models)            (Elements)

1. Economic Model                 a. Attractive Design

2. Learning Model                  b. Inspiration

3. Psychoanalytic Model         c. Sex

4. Organisational Model         d. Cost of Product


      1 2 3 4

(A) a b c d

(B) b c d a

(C) c d a b

(D) b d c a

Answer: (D)

39. Match Item – I with Item – II:

Item – I                                   Item – II

(Type of Control)                    (Prime Responsibility)

I. Annual Plan Control            1. Line and Staff Management or Marketing Controller

II. Profitability Control           2. Top/Middle Management

III. Efficiency Control            3. Marketing Controller

IV. Strategic Control              4. Top Management/ Marketing Auditor


      I II III IV

(A) 2 3 1 4

(B) 1 3 2 4

(C) 2 1 4 3

(D) 2 3 4 1

Answer: (A)

40. Which of the following statement is true?

(A) A brand name is a part of brand which can be vocalized.

(B) A brand is usually composed of a name and mark of a product.

(C) Brand means a name, term and symbol or a mix thereof used to identify the product of a firm and to distinguish.

(D) All of the above

Answer: (D)

41. The term inventory includes

(A) The stock of raw materials only.

(B) The stock of finished goods only.

(C) The stock of raw materials and goods required for production in a factory or finished goods for sales.

(D) None of the above.

Answer: (C)

42. Statement – I: Operations research seeks to replace intuitive decision making for large complex problems with an approach that identifies the optimal or best alternative through analysis.

Statement – II: Operations Managers have adopted the approaches and techniques of operations research to improve their decision-making.

(A) Both statements I & II are true.

(B) Both statements I & II are false.

(C) Statement I is true but statement II is false.

(D) Statement II is true but statement I is false.

Answer: (A)

43. ________ is used for analyzing capacity planning decisions.

(A) Break-even Analysis

(B) Present-value Analysis

(C) Simulation and Waiting Line Analysis

(D) All the above

Answer: (D)

44. Match the following:

List – I                                                                                                                        List – II

a. To co-ordinate work centre schedules by showing the progress of each job          i. EOQ

b. The goal of continuous improvement in every phase of manufacturing                 ii. Queue length

c. Optimal quantity asked to supply that minimizes total annual stocking costs        iii. Gantt chart

d. End product or service of a conversion system                                                      iv. Kaizen

e. The number of arrivals waiting to be serviced                                                        v. Output


        a b c d e

(A) iii iv i v ii

(B) i ii iii iv v

(C) v iv ii iii i

(D) ii iii iv i v

Answer: (A)

45. Match the following:

List – I                                                                                    List – II

a. Any physically identifiable part of a project                       i. Network

b. The terminal point of an activity                                         ii. Event

c. The longest chain in the Network                                       iii. Activity

d. Logically and sequentially connected arrows and nodes   iv. Critical path


       a b c d

(A) i ii iii iv

(B) iii ii iv i

(C) ii iv i iii

(D) iv i ii iii

Answer: (B)

46. For nominal data, the only measure of central tendency that can be applied is

(A) Arithmetic mean

(B) Harmonic mean

(C) Median

(D) Mode

Answer: (D)

47. Tukey Kramer Test is applied when

(A) There is significant difference between means of two groups.

(B) There is significant difference between means of three groups.

(C) There is no significant difference between means of two groups.

(D) There is no significant difference between the means of three groups.

Answer: (B)

48. The steps taken to solve a problem are given below. Arrange them in the correct order:

(i) Analyze

(ii) Test

(iii) Implement

(iv) Evaluate

(v) Document

(vi) Design

(vii) Develop


(A) (i), (vi), (vii), (ii), (v), (iii), (iv)

(B) (i), (ii), (iii), (iv), (v), (vi), (vii)

(C) (i), (vi), (iii), (ii), (iv), (v), (vii)

(D) (i), (vi), (vii), (iii), (ii), (iv), (v)

Answer: (A)

49. Arrange the steps given below in the proper order in the process of selection of samples:

(i) Determining sample size

(ii) Specifying sampling method

(iii) Selecting samples

(iv) Defining the population

(v) Developing sample frame


(A) (iv), (i), (v), (ii), (iii)

(B) (iv), (v), (ii), (i), (iii)

(C) (iv), (v), (i), (ii), (iii)

(D) (iv), (i), (v), (iii), (ii)

Answer: (C)

50. Match the following:

Column – A                                                                                        Column – B

a. Device that connects two dissimilar communication networks.     i. Modem

b. Device that connects two similar networks.                                   ii. Repeater

c. Device used to boost the strength of a signal.                                iii. Bridge

d. Device for performing signal transformation between terminal devices and communication circuits.                                                                                          iv. Gateway


        a b c d

(A) iii iv ii i

(B) iv iii ii i

(C) ii iii iv i

(D) iv iii i ii

Answer: (B)

51. In reference Part-A and Part-B, which statement is correct?

Part ‘A’: Strategy is the action plan for achieving organisational objectives.

Part ‘B’: It is the bridge between the present and desired future.


(A) Both Part ‘A’ and ‘B’ are correct.

(B) Both Part ‘A’ and ‘B’ are incorrect.

(C) Part ‘A’ is only correct.

(D) Part ‘B’ is only correct.

Answer: (A)

52. Match the following:

Table – I                                              Table – II

a. Horizontal diversification               i. New product in new market

b. Vertical diversification                   ii. New product, current market

c. Concentric diversification               iii. Move firms suppliers or customers business

d. Conglomerate diversification         iv. New product closely related to current product in new market


       a b c d

(A) i ii iii iv

(B) iii iv ii i

(C) ii iii i iv

(D) ii iii iv i

Answer: (D)

53. Goals-driven planning is best explained by

(A) planning to overcome critical issues that thwart attempts to be more customer-focused.

(B) hard to come up with good indicators and gather reliable base line data.

(C) carefully managed to focus on solutions.

(D) none of the above.

Answer: (D)

54. Which organisational structure is considered most complex?

(A) Functional structure

(B) Divisional structure

(C) Strategic Business Unit (SBU) structure

(D) Matrix structure

Answer: (D)

55. Statement – I: A nation’s competiveness depends on the capacity of its industry to innovate and upgrade.

Statement – II: Companies gain advantage against the world’s best competitors because of pressure and challenge.

(A) Both statements I and II are correct.

(B) Both statements I and II are incorrect.

(C) Statement I is correct, but statement II is incorrect.

(D) Statement I is incorrect, but statement II is correct.

Answer: (C)

56. Brain storming is a group creativity exercise designed to come up with _______.

(A) number of solutions to a single problem

(B) two solutions to a single problem

(C) three solutions to two problems

(D) many solutions to many problems

Answer: (A)

57. Four core themes of innovation are

(A) recognising the opportunity, finding the resources, developing the venture and creating value.

(B) finding the resources, developing the venture, recognizing the opportunity and creating value.

(C) developing the venture, creating value, recognising the opportunity and finding the resources.

(D) creating the value, recognizing the opportunity, developing the venture and finding the resources.

Answer: (A)

58. The main activities of SISI (Small Industries Services Institutes) are

(A) Assistance/Consultancy to prospective Entrepreneurs

(B) Assistance/Consultancy to exiting units

(C) (A) and (B)

(D) Assistance/Consultancy and incentives to existing units

Answer: (C)

59. Five steps of small business development shall occur in the order of

(A) Resource Maturity – Existence – Success – Survival – Takeoff

(B) Success – Existence – Survival – Takeoff – Resource Maturity

(C) Existence – Survival – Success – Takeoff – Resource Maturity

(D) Existence – Success – Survival – Resource Maturity – Takeoff

Answer: (C)

60. Which is not a socio-economic rationale for promoting SSI in India?

(A) Export Promotion

(B) Employment Generation

(C) Offering competition to large scale industry

(D) Labour intensive

Answer: (C)

61. A set of processes, customs, policies, laws and institutions, that affects the way in which a corporation is directed, administered or controlled in order to facilitate the interest of stake-holders is known as

(A) Corporate Social Responsibility

(B) Corporate Governance

(C) Corporate Sustainability

(D) Environmental Ethics

Answer: (B)

62. “We must maintain in good order the property, we are privileged to use, protecting the environment and natural resources” is known as

(A) Protecting business environment

(B) Social responsibility of business

(C) Maintaining good property

(D) Protect natural resources

Answer: (B)

63. Assertion (A): The Securities and Exchange Board of India has made Listing Agreement tough to ensure good corporate governance among the companies listed on Indian Stock Exchange.

Reasoning (R): In the absence of Clause 49, the listed companies may ignore the interest of stakeholders.

(A) (A) and (R) both are correct and (R) is right explanation of (A).

(B) (A) is correct, but (R) is not the correct explanation of (A).

(C) (R) is correct, but (A) is not the right assertion.

(D) Both (A) and (R) are incorrect.

Answer: (A)

64. A system of control is implemented to assist in aligning the incentives of managers with those of shareholder is known as

(A) Corporate Governance

(B) Government Control

(C) Director of Company

(D) Shareholders

Answer: (A)

65. Which of the following combination is suitably attributed to the statement that stakeholders should expect fair return on their investment?

(i) Optimization of Profit

(ii) Social Responsibility of Business

(iii) Competition Theory of Business

(iv) Walter’s Theory

(A) (i), (ii) and (iii)

(B) (ii), (iii) and (iv)

(C) Only (i) and (ii)

(D) Only (iii) and (iv)

Answer: (C)

66. The member countries of WTO have moved to “Product Patent Regime” under





Answer: (B)

67. Which of the following is not an element of logistics system?

(A) Nature of product

(B) Availability of infrastructure

(C) Quality of product

(D) Government policies

Answer: (C)

68. €/$ exchange rate goes from € 1 = $0.93 to €1 = $0.99. This indicates

(A) Dollar appreciation of 6.45%

(B) Dollar depreciation of 6.45%

(C) Dollar appreciation of 6.06%

(D) Dollar depreciation of 6.06%

Answer: (D)

69. Statement I: Fixed exchange rate system is disadvantageous.

Statement II: The government can alter the exchange rates.

(A) Statement I is correct, but statement II is incorrect.

(B) Statement I is incorrect, but statement II is correct.

(C) Statement I and statement II both are correct.

(D) Statement I and statement II both are incorrect.

Answer: (C)

70. Which of these is not a form of pre-shipment finance?

(A) Advance against export bills sent on collection.

(B) Advances against incentives receivable from Government.

(C) Packing credit.

(D) Pre-shipment credit in foreign currency.

Answer: (A)

71. Under which of the following exchange rate systems, exchange rates are either held constant or allowed to fluctuate only within very narrow boundaries?

(A) Fixed exchange rate system.

(B) Freely floating exchange rate system.

(C) Managed floats exchange rate system.

(D) Pegged exchange rate system.

Answer: (A)

72. The degree to which, a firm’s present value of future cash flows can be influenced by exchange rate fluctuations is referred to as

(A) Economic exposure

(B) Transaction exposure

(C) Translation exposure

(D) Accounting exposure

Answer: (A)

73. Bid/ask spread of a foreign currency can be computed by which of the following formulae?

(A) (Bid Rate – Ask Rate) / Ask Rate

(B) (Ask Rate – Bid Rate) / Ask Rate

(C) (Bid Rate – Ask Rate) / Bid Rate

(D) (Ask Rate – Bid Rate) / Bid Rate

Answer: (B)

74. Match the items given in Column – I with most appropriate options given in Column – II:

Column – I                                                                                                      Column – II

a. Conditions imposed by a Government in respect of foreign investment    i. Patents

b. Information with commercial value                                                            ii. Intellectual Property Right

c. Monopoly right granted by law                                                                  iii. TRIMs


        a b c

(A) iii i ii

(B) iii ii i

(C) ii iii i

(D) ii i iii

Answer: (B)

75. Match the following:

List – I            (Statements)                                                                                        List – II (Terms)

I. Countries which follow a unified informal tariff but different external tariff.      i. Customs Union

II. Countries which follow a unified internal and external tariff system.                  ii. Common market

III. Countries which follow a unified internal and external tariff and allows free movement of factors of production.                                                                                                            iii. Free trade area

IV. Countries which follow a unified internal and external tariff and allows free movement of factors of production plus having common economic and monitoring policy and common currency.                                                                                                                     iv. Economic union


       I II III IV

(A) iii i iv ii

(B) iii ii iv i

(C) iii ii i iv

(D) iii i ii iv

Answer: (D)

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