UGC NET Mock Test 3 on Management - 20 Questions for Practice

1. Financial Break-even Level of EBIT is one at which

a.EPS is zero

b.EPS is negative

c.EPS is infinite

d.EPS is one

2. According to Lintner Model, factors affecting dividend of current year are

a.P/E ratio, retention ratio and pay-out ratio.

b.DPS of previous year, EPS, target pay-out ratio and adjustment rate.

c.EBIT, interest rate and retention ratio.

d.E/P ratio, pay-out ratio and rate of interest on it.

3. Distributive bargaining may be explained as

a.Bargaining that focuses on convincing the other party that the benefits of agreeing with the proposed terms would be very high.

b.Bargaining wherein both parties are willing to negotiate over wages, hours and conditions of employment.

c.None of the above.

d.Bargaining that focuses on convincing the other party that the cost of disagreeing with the proposed terms would be very high.

4. Which of the following best describes the theory X?

a.People are committed to their responsibilities.

b.Motivation is a result of rational behaviour towards attaining goals.

c.None of the above.

d.The perceived relationship between a given level of effort and an expected performance.

5. The benefit of paraphrasing in Employee Appraisal is that it

a.Suggests interest and active listening.

b.Clarify and convey to the rater that you are listening actively.

c.All of the above.

d.Shows that you are trying to understand the emotional aspect of the workplace.

6. Which of the following is not considered by Miller-Orr Model?

a.Holding cash

b.Cost of transaction

c.Variability in cash requirement

d.Total annual requirement of cash

7. Role of Human Resource Manager is

a.Advisory

b.All of the above

c.Mediator Role

d.Representative Role

8. Job is defined as

a.Set of position similar to nature and kind of work.

b.None of these.

c.Set of activities performed in the organization.

d.Set of activities similar to kind of work.

9. Whistle Blowing is the situation wherein an employee

a.All of the above.

b.Discloses other employees’ illegal immoral or illegitimate activities.

c.Causes indiscipline in the organization.

d.Discloses the employer’s illegal immoral or illegitimate activities.

10. Statement I: The slope of an indifference curve is the Marginal Rate of Substitution in the consumption (MRSc), which is increasing.
Statement II: The slope of the budget line is the ratio of the prices of two goods and is the Marginal Rate of Substitution in exchange (MRSe)

a.Statement I is not correct, but II is correct.

b.Statements I and II are incorrect.

c.Statement I is correct, but II is incorrect.

d.Statement I and II are correct.

11. Hawthorne experiments were conducted at

a.Western Electric Company

b.Hawthorne Electric Company

c.Eastern Electric Company

d.General Electric Company

12. Which one of the following is a disadvantage of having expatriate employees to staff international subsidiaries?

a.Gives employees a multinational orientation.

b.Brings cultural similarities with parent company.

c.Provides broader global perspective.

d.Attempts to establish a foreign culture to the company.

13. Given the sales volume, which of the following would lead to an increase in contribution margin?

a.Variable cost remains same.

b.Variable cost per unit decreases.

c.Variable cost per unit increases.

d.Fixed cost increase.

14. If the equation y = 5 + 0.6x was graphed, the

a.Slope would be – 5

b.Vertical intercept would be + 0.6

c.Slope would be + 0.6

d.Slope would be + 5

15. Which of the below features is not wealth maximization objective of Financial Management?

a.Decision should be oriented to the maximization of profits.

b.Based on the concept of cash flows generated by the decision rather than accounting profit.

c.Considers both quantity and quality dimensions of benefits.

d.Focus is on the value to the owners or suppliers of equity capital.

16. Forming a fixed opinion or attitude towards a single person or object is termed as

a.The perceptual set

b.Stereo-typing

c.Perceptual defense

d.The Halo effect

17. An employee can be laid off when the organization has

a.Purchased raw material more than the immediate required.

b.All of the above.

c.Acquired labour more than the required.

d.Breakdown of machinery.

18. Which statement is true?

a.Job analysis is a group of positions that are similar as to kind and level of work.

b.All of the above

c.A promotion is the vertical transfer of an employee.

d.A promotion is the advancement of an employee to a better job better in terms of greater responsibilities, more prestige or status, greater skill and especially, increase the rate of pay or salary.

19. GDP includes which of the following measures?

a.The size of a population that must share a given output within one year.

b.The total monetary value of all final goods and services produced within a nation within one year.

c.The total monetary value of goods and services including barter transactions within a nation in one year.

d.The negative externalities of the production process of a nation within one year.

20. If the minimum stock level and average stock level of material A are 4000 and 9000 units respectively, what is the Reorder quantity?

a.10,000 units

b.11,000 units

c.8000 units

d.9,000 units

UGC NET Mock 3 on Management – 20 Questions for Practice

UGC NET Mock Test 3 on Management – 20 Questions for Practice

Take Test 3 20 questions for Practice – Management Test 3

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