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Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 25

(1) Some of the driving forces behind the evolution of corporate social responsibility are :

(a) Concerns and expectations from citizens, public authorities, and investors.

(b) Decisions made by individuals and institutions influenced by the criteria of foreign trade.

(c) Concerns about the impact of economic activities on the production houses.

(d) Increased transparency of business activities because of the development in information technology.

Code :
(1) (a) and (b)
(2) (a) and (c)
(3) (a) and (d)
(4) (b) and (c)
Answer: (a) and (d)
(2) As per the Indian Companies Act, 2013 a qualified Indian company is required to contribute at least 2% of its average net profit towards corporate social responsibilities activities. In which of the following situations the company is required to follow the provisions ?
(1) Turnover of the company is ` 100 crore or more.
(2) Turnover of the company is ` 500 crore or more.
(3) Turnover of the company is ` 1,000 crore or more.
(4) Turnover of the company is ` 2,000 crore or more.
Answer: Turnover of the company is ` 1,000 crore or more.

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(3) The product control is achieved through what ?
(1) Control charts
(2) Acceptance sampling plans
(3) Both (1) and (2)
(4) None of the above
Answer: Acceptance sampling plans
(4) When an employee is transferred to an international location and his salary reflects his home country’s salary with allowances added for cost-of-living differences, the employer has used a _____ salary plan.
(1) Cost-of-living
(2) host based
(3) home based
(4) transfer
Answer: home based
(5) Assertion (A) : Distributive bargaining is also termed as ‘zero sum’ game.

Reason (R) : It results in one party’s gain with loss of other party.

Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect, but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct and (R) is the right explanation of (A).
Answer: Both (A) and (R) are correct and (R) is the right explanation of (A).
(6) Choose the correct code :

Statement – I : Decide on the nature and amounts of incentives to be paid to subordinates is a department supervisor’s (line) activity.

Statement – II : Conducting job evaluation procedures aimed at determining relative worth of each job in the organization is a HR Specialists’ (staff) activity.

Code :
(1) Both I and II are correct.
(2) Both I and II are incorrect.
(3) Only I is correct.
(4) Only II is correct.
Answer: Both I and II are correct.
(7) From the following statements, select the correct answer :

Statement – I : Establishing the day-to-day climate of mutual respect and trust needed to maintain healthy labour management relations is HR specialists’ (staff) activity.

Statement – II : Diagnosing underlying causes of labour discontent with an eye toward anticipating the sorts of morale and other problems that may lead to unionization efforts is a department supervisors’ (line) activity.

Code :
(1) Only statement I is correct
(2) Only statement II is correct
(3) Both statements I and II are correct.
(4) Both statements I and II are wrong.
Answer: Both statements I and II are wrong.
(8) The appointment of Labour Welfare Officer in Indian Industry was recommended primarily by which of the following ?
(1) The Contract Labour (Regulations and Abolition) Act, 1970.
(2) The Industrial Disputes Act, 1947.
(3) The Royal Commission on Labour, 1931.
(4) Shri. V.V. Giri Committee.
Answer: The Royal Commission on Labour, 1931.
(9) Consider the following statements and indicate the correct answer :

Statement – I : Companies that adopt value pricing win loyal customers by charging reasonable price for a high-quality offering.

Statement – II : Value pricing is a matter of re-engineering the company’s operations to become a low-cost producer without sacrificing quality.

Codes :
(1) Only statement I is correct.
(2) Only statement II is correct.
(3) Both statements I and II are correct.
(4) Both statements I and II are wrong.
Answer: Only statement II is correct..
(10) Which one of the following is true for value marketing ?
(1) The strategy of offering consumers lesser quality at a low price.
(2) The strategy of offering consumers reasonable quality at a fair price.
(3) The strategy of offering consumers high quality at a low price.
(4) The strategy of offering consumers luxury quality at a high price.
Answer: The strategy of offering consumers reasonable quality at a fair price.
(11) _____ aims to stimulate repeat purchase of products and services.
(1) Reinforcement advertising
(2) Informative advertising
(3) Persuasive advertising
(4) Reminder advertising
Answer: Reminder advertising
(12) Which of the following factors are considered when setting the advertising budget ?

(a) Stage of the product life cycle

(b) Market share and consumer base

(c) Competition and clutter

(d) Advertising frequency

(e) Product substitutability

Code :
(1) (a), (b), (c), (d) and (e)
(2) (a), (b) and (c)
(3) (a), (b), (c) and (d)
(4) (b), (c), (d) and (e)
Answer: (a), (b), (c), (d) and (e)
(13) Which one is a true statement ?
(1) A merger in which the firms involved will be operated as a single unit and from which no operating economies are expected is financial merger.
(2) A merger in which operations of the firms involved are integrated in hope of achieving synergistic benefits is called operating merger.
(3) Goodwill refers to the excess paid for a firm above the appraised value of the physical assets purchased.
(4) A joint venture is a corporate alliance in which two or more companies combine all their resources to achieve a specific objective.
Answer: A merger in which operations of the firms involved are integrated in hope of achieving synergistic benefits is called operating merger.
(14) Which one of the following statements is true ?
(1) Market risk premium is the additional return over the risk-free rate needed to compensate investors for assuming an average amount of risk.
(2) A firm cannot influence its market risk, hence its beta, through changes in the composition of its assets and also through its use of debt.
(3) Market risk premium is the additional return over the risk-free rate needed to compensate investors for assuming greater than average amount of risk.
(4) An asset’s risk consists of market risk which can be eliminated by diversification.
Answer: Market risk premium is the additional return over the risk-free rate needed to compensate investors for assuming an average amount of risk.
(15) A company has a total investment of ` 5,00,000 in assets, and ` 50,000 outstanding shares at ` 10 per share (par value). It earns a rate of 15% on its investment, and has a policy of retaining 50% of the earnings. If the appropriate discount rate of the firm is 10%, determine the price of its share using Gordon’s model.
(1) 15
(2) 30
(3) 10
(4) 50
Answer: 30

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