Management Questions and Answers - Set 30 | MBA BBA Solved Multiple Choice Questions(MCQs)

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

View Answer

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

View Answer

Answer: The Employee’s State Insurance Act, 1948

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

View Answer

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)

View Answer

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)

View Answer

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.

View Answer

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

View Answer

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

View Answer

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%

View Answer

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

View Answer

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

View Answer