UGC NET Mock Test 5 on Management - 20 Questions for Practice

1. Which theory of human motivation focuses on personal perceptions of the performance process?

a.Alderfer’s ERG Theory

b.Adam’s Theory of Inequality

c.Vroom’s Expectancy Theory

d.McClelland’s Need Theory

2. In which of the approach, the market value of the firm depends upon the EBIT and the overall cost of capital?

a.Modigliani-Miller Approach

b.Net Income Approach

c.Net Operating Income Approach

d.None of the above

3. The process through which individuals attempt to determine the causes behind others’ behaviour is known as

a.Attitude

b.Social identity theory

c.Perception

d.Attribution

4. Which of the following method of incorporation of risk in the capital budgeting decision framework is useful for situations in which decisions at one point of time also affect the decisions of the firm at some later date?

a.Certainty Equivalent Approach

b.Decision-tree Approach

c.Risk-adjusted Discount Rate Approach

d.Probability Distribution Approach

5. Statement I: Demand for a commodity refers to quantity of the commodity demanded at a certain price during any particular period of time.
Statement II: Contraction of demand is the result of an increase in the price of the goods concerned.

a.II is correct and I is incorrect.

b.Both I & II are correct.

c.Both I and II are incorrect.

d.I is correct and II is incorrect.

6. The sum of the value of all final goods and services produced within a country and net factor income from abroad is termed as

a.Real GDP

b.Nominal GDP

c.GNP

d.NNP

7. On-the-job training methods are not based on

a.Demonstration methods

b.Vestibule Training methods

c.Interactive methods

d.Apprentice training method

8. Annual Reports, Balance Sheets, Brochures and Advertisements in organisational communication are the means to aim at

a.Image building

b.Group building

c.Influencing

d.Credibility building

9. Rational motives in buying process are explained as

a.All of the above.

b.Motives based on careful, logical reasoning and self-acceptance.

c.Activity buyer adopts to satisfy buying needs.

d.Motives based on sensual satisfaction, fear and entertainment.

10. Which is the assumption of Modigliani and Miller approach to cost of capital?

a.The firms can be classified into homogeneous risk class.

b.All investors have the same expectations from a firm’s net operating income which is necessary to evaluate the value of a firm.

c.All of the above.

d.The capital markets are assumed to be perfect.

11. If a firm raises Rs. 1, 00,000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that equates the present value of cash inflows with the present value of cash outflows is referred to as

a.Implicit cost

b.Specific cost

c.Future cost

d.Explicit cost

12. Performance appraisal includes

a.Promote employees for self-appraisal.

b.Review his performance in relation to the objectives and other behaviours.

c.Check reviews done by the supervisors.

d.All of the above.

13. 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.Transaction exposure

b.Accounting exposure

c.Economic exposure

d.Translation exposure

14. A deliberate and careful choice of organisation, product, price, promotion, place strategies and policies best define the concept of ____

a.Product Mix

b.Marketing Mix

c.Market Segmentation

d.Market Penetration

15. Which of the following statements is true?

a.All of the above.

b.Profit sharing is an agreement freely entered into by which the employees receive share fixed in advance from the organization’s profits.

c.Profit distribution under a profit sharing plan are used to fund employee retirement plans.

d.An experiment in profit shares on a wide scale would therefore be definitely undertaking a voyage of an uncharted sea.

16. Minimum wage means

a.A sum of money paid under contract by an employer to a workman for services rendered.

b.Wages paid in proportion to workman’s work efficiency.

c.A wage sufficient to satisfy the workman’s basic needs.

d.Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and provision for evil days.

17. The major objective of economists to monopolies is

a.Lack of technological progress in such industries.

b.The inability in an industry where there is a single producer.

c.The dangerous impact on democratic government.

d.The tendency to restrict output and charge a higher price.

18. In which case, the acquirer puts pressure on the management of the target company by threatening to make an open offer; the board capitulates straight away and agrees for settlement with the acquirer for change of control.

a.None of the above

b.Poison Put

c.Poison Pill

d.Bear Hug

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

a.(Bid Rate – Ask Rate) / Bid Rate

b.(Ask Rate – Bid Rate) / Bid Rate

c.(Ask Rate – Bid Rate) / Ask Rate

d.(Bid Rate – Ask Rate) / Ask Rate

20. Which of the following combination, according to hierarchy of effects model is correct?

a.Awareness – Liking – Knowledge – Conviction – Preference – Purchase.

b.Awareness – Knowledge – Liking – Preference – Conviction – Purchase.

c.Awareness – Liking – Knowledge – Conviction – Purchase – Preference.

d.Awareness – Preference – Knowledge – Liking – Preference – Purchase.

UGC NET Mock 5 on Management – 20 Questions for Practice

UGC NET Mock Test 5 on Management – 20 Questions for Practice

Take Test 5 20 questions for Practice – Management Test 5

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