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

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

a.Attitude

b.Attribution

c.Social identity theory

d.Perception

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

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

b.All of the above.

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

d.The capital markets are assumed to be perfect.

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

a.Group building

b.Influencing

c.Image building

d.Credibility building

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

a.Marketing Mix

b.Market Penetration

c.Market Segmentation

d.Product Mix

5. 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.Accounting exposure

b.Translation exposure

c.Economic exposure

d.Transaction exposure

6. 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

7. 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.Probability Distribution Approach

c.Risk-adjusted Discount Rate Approach

d.Decision-tree Approach

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

a.Vestibule Training methods

b.Apprentice training method

c.Demonstration methods

d.Interactive methods

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

a.Net Operating Income Approach

b.Modigliani-Miller Approach

c.Net Income Approach

d.None of the above

10. 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

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

a.Vroom’s Expectancy Theory

b.Alderfer’s ERG Theory

c.McClelland’s Need Theory

d.Adam’s Theory of Inequality

12. 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.Specific cost

b.Implicit cost

c.Explicit cost

d.Future cost

13. 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.I is correct and II is incorrect.

b.Both I and II are incorrect.

c.Both I & II are correct.

d.II is correct and I is incorrect.

14. Performance appraisal includes

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

b.Promote employees for self-appraisal.

c.Check reviews done by the supervisors.

d.All of the above.

15. Minimum wage means

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

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

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

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

16. The major objective of economists to monopolies is

a.Lack of technological progress in such industries.

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

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

d.The dangerous impact on democratic government.

17. 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.GNP

b.Real GDP

c.Nominal GDP

d.NNP

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

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

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

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

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

19. Which of the following statements is true?

a.All of the above.

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

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

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

20. Rational motives in buying process are explained as

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

b.All of the above.

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

d.Activity buyer adopts to satisfy buying needs.

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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