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Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 30

(1) According to the __________ of industrial relations, it is the prerogative of the management to make decisions regarding how an enterprise is to be run and how the employees are to be dealt with.
(1) Radical perspective
(2) Trusteeship approach
(3) Unitary perspective
(4) Pluralistic perspective
Answer: Unitary perspective
(2) __________ provides for health care and cash benefits in cases of sickness, maternity and employment injury.
(1) The Maternity Benefit Act, 1961
(2) The Workmen’s Compensation Act, 1923
(3) The Employee’s State Insurance Act, 1948
(4) The Payment of Gratuity Act, 1972
Answer: The Employee’s State Insurance Act, 1948

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(3) Which one of the following is not a mandatory bargaining item of collective bargaining ?
(1) Scope of the bargaining unit
(2) Holidays
(3) Pensions
(4) Profit-sharing plans
Answer: Scope of the bargaining unit
(4) Which of the following simulated task(s) is/are usually included in Management Assessment Centers ?

(a) In-basket exercises

(b) Leaderless group discussion

(c) Management games

(1) (a)
(2) (a) and (b)
(3) (b) and (c)
(4) (a), (b) and (c)
Answer: (a), (b) and (c)
(5) Which of the following can be the ground for employee dismissal ?

(a) Unsatisfactory performance

(b) Misconduct

(c) Lack of qualifications

(1) Only (b)
(2) (a) and (b)
(3) (b) and (c)
(4) (a), (b) and (c)
Answer: (a), (b) and (c)
(6) Assertion (A) : With most of the allowances, etc. linked to wages and the courts ruling ‘no work no wage’ principle, workers are not usually prepared to lose earnings due to strikes.

Reason (R) : It is usually difficult to go on a legal strike due to restrictions on strikes in the form of notice and prohibition during the pendency of conciliation, adjudication, etc.

Codes :
(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 not correct.
(4) (R) is correct, but (A) is not correct.
Answer: Both (A) and (R) are correct and (R) is the right explanation of (A)
(7) If risk free rate of return is 5%, market return is 10% and the cost of equity is 13%, the value of beta (b) is :
(1) 1.2
(2) 1.5
(3) 1.6
(4) 1.8
Answer: 1.6
(8) The company has been buying an item in lots of 2,400 units which is six months’ supply, the cost per unit is ` 12, order cost is ` 8 per order and the carrying cost is 25%. The Economic Order Quantity is :
(1) 392
(2) 39
(3) 160
(4) 200
Answer: 160
(9) A company issues 11% debentures of ` 100 each for an amount aggregating ` 2,00,000 at 10% premium, redeemable at par after 5 years. The company tax rate is 40%. The cost of debt is :
(1) 4.38%
(2) 11%
(3) 5.5%
(4) 10%
Answer: 4.38%
(10) Determine the market price of a share using Gordon’s model of Dividend, if total investment in asset is ` 10,00,000 number of shares is 50,000 with a total earning of ` 2,00,000. The cost of capital is 16% and payout ratio is 40%.
(1) 45
(2) 60
(3) 40
(4) 38
Answer: 40
(11) A company wishes to raise ` 30,00,000 through a right offering. It has 2,40,000 shares outstanding, which have been most recently trading between ` 106 and ` 116 per share. On the advice of the SBI caps, the company has set the subscription price for the rights at ` 100 per share. What will be the theoretical value of a right if the current market price is ` 109 with rights and the subscription price is ` 100 ? `
(1) 1.125
(2) 1.375
(3) 1.000
(4) 1.750
Answer: 1.000
(12) The public sale of common stock in a subsidiary in which the parent company usually retains majority control is called :
(1) A pure play
(2) A spin - off
(3) A partial sell - off
(4) An equity carve - out
Answer: An equity carve - out
(13) The __________ is especially well suited to offer hedging protection against transaction risk exposure.
(1) Forward Market
(2) Spot Market
(3) Transactions Market
(4) Inflation Rate Market
Answer: Forward Market
(14) Time value of an option is :
(1) Price of the option 2 Intrinsic value of option
(2) Intrinsic value of option 2 Price of the option
(3) Current market price 2 Exercise price
(4) Exercise price 2 Current market price
Answer: Price of the option 2 Intrinsic value of option
(15) According to the CAPM, overpriced securities have :
(1) Zero Betas
(2) Negative Betas
(3) Zero Alphas
(4) Negative Alphas
Answer: Negative Alphas

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