MAHA SET 2015 Question Paper 3 Management

Test Booklet No.
M
MANAGEMENT
Signature and Name of Invigilator Seat No.
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(Name) ................................................ OMR Sheet No.
AUG - 51315 (To be filled by the Candidate)
Time Allowed : 2½ Hours] [Maximum Marks : 150
Number of Pages in this Booklet : 20 Number of Questions in this Booklet : 75
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2

Management
Paper III
Time Allowed : 2½ Hours] [Maximum Marks : 150
Note : This Paper contains Seventy Five (75) multiple choice questions, each
question carrying Two (2) marks. Attempt All questions.

1. The desire of a person to own 3. The Life-cycle Hypothesis deals

unique product is called : with :

(A) Various stages in the life of
(A) Snob effect
products
(B) Giffen Paradox
(B) Individual consumption and
(C) Bandwagon effect available resources

(D) Autonomous demand (C) Consumption of current

income
2. Costs which are actually incurred

or provided for by an individual (D) Proportion of income

consumed by household
or a firm for the purchase of

goods and services from the 4. The period of economic thoughts

of classical and pre-classical
market is called :
economists is called :
(A) Social Cost
(A) Pre-Keynesian era
(B) Private Cost
(B) Post-Keynesian era
(C) Long run Cost
(C) Keynesian revolution

(D) Explicit Cost (D) Monetarism
3 [P.T.O.

5. The method of advertisement that 7. “People can learn through

convinces current purchasers that observation and direct experience”

they made the right choice is : comes under :

(A) Reminder advertisement (A) Classical conditioning

(B) Operant conditioning
(B) Reinforcement advertisement

(C) Social learning theory
(C) Informative advertisement

(D) One to one interaction theory
(D) Persuasive advertisement

8. Expectancy model stands for :
6. If a superior has 6 subordinates,
(A) Expectancy Valence-
then total number of relationships
Instrumentality (EVI)
among them under span of

(B) Instrumentality-Expectancy-
control will be :
Valence (IEV)
(A) 202
(C) V a l e n c e - I n s t r u m e n t a l i t y -
(B) 242
Expectancy (VIE)

(C) 222
(D) I n s t r u m e n t a l i t y - V a l e n c e -

(D) 262 Expectancy (IVE)

4

9. A company should begin to 11. ........................... involves taking

implement an organizational parts of several similar jobs rather

change : than one complete job to validate

(A) After the strategic plans have the selection test.

been developed
(A) Predictive validity

(B) Once resistance to change has
(B) Concurrent validity
been dealt with
(C) Synthetic validity
(C) As it develops its strategic
(D) Flexible validity
plan

12. ............................ is a device or
(D) Once the change strategy has

been evaluated situation that replicates job

demands at an off-the-job site.
10. In Fiedler’s theory, LPC means :

(A) Brainstorming
(A) Least preferred co-worker

(B) Low preferred co-worker (B) Simulation

(C) Least preferred colleague (C) Artificial Intelligence

(D) Low preferred colleague (D) Task Requirement

5 [P.T.O.

13. .............................. is a training 15. Disputes that arise from day to

technique by which management day workers grievances or

trainees are allowed to work full complaints are known as :

time analysing and solving
(A) Grievance Disputes

problems in other departments.
(B) Unfair Labour Practices

(A) Group Learning
(C) Interest Disputes

(B) Research Learning
(D) Recognition Disputes

(C) Action Learning
16. XYZ Ltd. has a Debt Equity Ratio

(D) Job Learning of 1.5 as compared to industry

14. WPM crystallizes the concept average of 1.3. It means that the

of ......................... . firm has :

(A) Social Security (A) Higher Liquidity

(B) Labour Laws (B) Higher Financial Risk

(C) Industrial Democracy (C) Higher Profitability

(D) Labour Welfare (D) Higher Capital Employed

6

17. ................................ do not have a 20. Operating leverage is calculated
fixed date of redemption. as :

(A) Contribution EBIT
(A) Open ended funds
(B) EBIT PBT
(B) Closed ended funds (C) EBIT Interest

(C) Diversified funds (D) EBIT Tax

21. If Dell Computer was seen as
(D) Both (A) and (B)
having a 120 percent market
share and a close competitor was
18. Financial Planning deals with :
seen as having 90 percent market

(A) Preparation of financial share, the market share analysis

statements (measurement) would express
as :
(B) Planning for a capital issue (A) Overall market share

(C) Preparing budgets (B) Served market share

(C) Relative market share
(D) Preparing policies
(D) Dual market share
19. Collection of debtors would : 22. Public health campaigns designed
to reduce alcoholism, drug abuse,
(A) Increase in current ratio
smoking and obesity are all
examples of :
(B) Decrease in current ratio
(A) Internal marketing
(C) No effect on current ratio
(B) Social marketing

(D) Increase debtor turnover (C) Organization marketing
ratio (D) Person marketing
7 [P.T.O.

23. Which one of the following 25. Ultimately, the amount of steel

reflects the correct logical sold to General Motors depends
sequence of related concepts ? on the consumer’s demand for GM

(A) Positioning, Segmentation, cars and trucks. From the

Targeting standpoint of the steel

(B) Segmentation, Positioning, manufacturer, which of the

Targeting following demand form is most

(C) Targeting, Segmentation, pertinent ?

Positioning (A) Derived demand

(D) Segmentation, Targeting, (B) Inelastic demand
Positioning
(C) Geographic demand
24. All of the following would be
(D) Relational demand
among the “dos and don’ts” of
26. The productivity of a system is
questionnaire design except :
determined by the :
(A) make questions as simple as

possible (A) Ratio of output to input

(B) Make the question specific (B) Ratio of efficiency to

effectiveness
(C) Ensure that fixed responses

overlap (C) Product of input and output

(D) Avoid hypothetical questions (D) Addition of input and output
8

27. “First come first served” is a rule 30. Queuing theory is also called
associated with :
as :
(A) Project planning
(A) Weaving line theory
(B) Production scheduling
(B) Systematic theory
(C) Quality control
(C) Waiting line theory
(D) Inventory control

28. Walter Shewhart is one of the (D) Tail theory

important contributors to : 31. In case of normal distribution,
(A) Assembly line about 68% of data lies within :

(B) Quality control
(A) X + Quartile Deviation
(C) Just-in-time
(B) X + Standard Deviation
(D) Productivity measurement
(C) X + 2 Standard Deviation
29. Linear programming problem
can be solved graphically when (D) X + Mean Deviation

the number of variable/s is/ 32. Sampling frame :
are :
(A) must have repeated entries
(A) Only one
(B) is listing of all the units of
(B) Two
the population
(C) More than two but less than
five (C) is circular

(D) Three (D) is a triangle

9 [P.T.O.

33. If two dice are thrown, the
35. A computer based information
probability that sum of points is
less than 9 is : system is needed, because :

1
(A) (i) The size of organizations have
3

13 become large and data is
(B)
18
massive
1
(C)
6
(ii) Timely dicisions are to be
1
(D) taken based on available data
2

34. Hardware and Software placed (iii) Computers are available

between an organisation’s internal (iv) Difficult to get clerks to

network and external network to process data

prevent outsiders from invading
Which of the following combinations
private networks is ................. .
is correct ?

(A) Cyber Blockade
(A) (ii) and (iii)

(B) Gateway
(B) (i) and (ii)

(C) Firewire (C) (i) and (iv)

(D) Firewall (D) (iii) and (iv)

10

36. According to BCG-matrix ‘Dogs’ 38. Joint venture strategy is, when :
are characterised by :
(A) The company joins hand with
(A) High market share and low
two of its competitors to
industrial growth
augment/increase production
(B) High demand and high
growth rate (B) The company just provides
technology for a new business
(C) Low market share and
unit
operate in industries with low
growth rate (C) The company just markets
(D) Low market attractiveness the products of another
and low market share company

37. According to Glueck and Jauch (D) The company joins hand with
the implementation of strategy another company to create
involves :
and promote a new joint
(A) Leadership implementation, business entity
Resource allocation,
39. The business policy of a company
Organizational structuring
involves formulation of which one
(B) Organizational structuring,
of the following :
Hiring People, Resource
allocation (A) Vision, mission and business

(C) Resource allocation, objectives
Organizational structuring, (B) Vision and mission only
Management Policies
(C) Mission and business
(D) Leadership implementation,
objectives
Resource allocation,
Organizational structuring, (D) Business objectives and
Management Policies corporate strategy
11 [P.T.O.

40. In divisional organizational 42. Entrepreneurs can stimulate their
structure the responsibility for
own creativity and encourage it
achieving profit rests with :
among workers by :
(A) The Finance Vice-President of
(A) Expecting and tolerating
a division
failure
(B) The Board of Management of

a company (B) Avoiding problems

(C) The General Managers of
(C) Limiting rewards
individual divisions
(D) Not taking chances
(D) The CEO/President of the

company 43. Which stage of the creative

41. Which of the following is process requires one to develop a

alternatively called corporate solid understanding of the

venturing ? problem or decision ?

(A) Entrepreneurship
(A) Investigation
(B) Act of starting a new venture
(B) Preparation
(C) Intrapreneurship
(C) Illumination
(D) Offering new products by an

existing company (D) Verification

12

44. ........................... is a graphical
46. One of the following is not a right
technique that encourages
of consumer :
thinking on both sides of the

brain, visually displays the (A) The right to be protected

various relationships among the from harmful products
ideas, and improves the ability to
(B) The right to be fairly priced
view a problem from many sides.

(A) Brainstorming (C) The right to adequate

(B) Mind-mapping information

(C) Prototyping (D) The right to be offered a

(D) Group think choice that includes the

45. The process of determining products that consumers truly
whether an entrepreneur’s idea is
want
a viable foundation for creating a

successful business is known as 47. Hedonistic Calculus is given by :

a/an :
(A) Jeremy Bentham
(A) Business plan
(B) John Stuart Mill
(B) Strategic analysis
(C) Kohlberg
(C) Industry analysis

(D) Feasibility analysis (D) Carol Gilligan

13 [P.T.O.

48. ........................... refers to strategic 50. Warranty is .......................... .

process involving stakeholder (A) an assurance to replace the

assessment to create long-term product

relationship with customers, while (B) a guarantee for performance

maintaining, supporting and (C) an expression to make good

enhancing the natural the losses

environment. (D) an assurance given to buyer
that they will be compensated
(A) Eco-strategy
in case the product does not
(B) Green marketing perform upto reasonable
expectation
(C) Superfund authorization
51. Which of the following statements
(D) Recycle and reprocess about arbitration is true ?
management
(A) Binding arbitration can lead
49. Use of fossil fuels has led to to a trial if both parties are

substantial growth in global not satisfied with the decision

emissions of ........................... and (B) The neutrality of arbiter is
guaranteed by the selection
greenhouse effect, contributing to
process
global warming.
(C) The process of arbitral follows
(A) Sulphur dioxide the same rules as used in a

(B) Nitrogen court case

(D) Disputes are open to public
(C) Hydrogen
view as soon as the involved
(D) Carbon dioxide parties agree to arbitration
14

52. Hiring permanent employees of 54. Agreement by a company to
another firm, who possess certain compensate executives with
specialized skills on period basis
bonuses and benefits if they
to meet short term requirements
should be displaced by a merger
means :
or acquisition is termed as :
(A) Employee bonding
(A) Golden Hanshake
(B) Employee equity
(B) Golden Parachute
(C) Employee leasing

(D) Employee parity (C) Perks

53. Fair wage is : (D) Fringe Benefits

(A) Wage which is above the 55. Bars as method of performance
minimum wage but below the
appraisal refers to :
living wage
(A) Behaviour approval rationing
(B) Wage which is below the
system
minimum wage but below the
living wage (B) Behaviour anchored rating

(C) Wage which is equal to scale

minimum wage but above
(C) Behaviour adding to
the living wage
rationality scale
(D) Wage which is above
(D) Behaviour and rational
minimum wage and above
system
the living wage

15 [P.T.O.

56. Balanced Score-card : 58. If a marketing researcher selects
(A) is a technique to balance the most accessible population
different business operations members, he or she would have
(B) is a means of performance selected the ..................... sampling
measurement that gives method.
manager a chance to look at
(A) Simple random
their company from the
perspectives of internal and (B) Stratified random
external customers, employees,
(C) Judgement
and shareholders
(C) is scanning the environment (D) Convenience
to know environmental 59. Which of the following is a
constraint
psychographic characteristic of a
(D) is a balanced score obtained consumer ?
in various functional areas
(A) Age
57. What is the correct logical
sequence in the Lavidge and (B) Lifestyle
Steiner model of attitude
(C) Occupation
formation (Hierarchy of effects
model of communication). (D) Economic Status
(A) Awareness-Liking-Knowledge- 60. Amazon.com and Expedia.com are
Preference-Conviction best described as .........................
(B) U n a w a r e n e s s - A w a r e n e s s - that sell products and services
Knowledge-Liking-Preference- directly to final buyers via the
Conviction
Internet.
(C) U n a w a r e n e s s - L i k i n g -
(A) Search engines
Awareness-Knowledge-
Preference-Conviction (B) Content sites
(D) U n a w a r e n e s s - A w a r e n e s s - (C) Transaction sites
Knowledge-Conviction-Liking-
Preference (D) e-tailers

16

63. The ability of a company to meet
61. Which one of the following is not
each customer’s requirements to
a characteristic of personal prepare on a mass basis
individualy designed products,
selling ?
services, programs and
communications is referred to
(A) Prospecting
as :

(B) Overcoming sales objections (A) Proactive customer service

(B) Individualisation
(C) Designing and planting
(C) Mass customization
favorable company news in (D) Competitive advantage

leading press (Newspapers) 64. Of the following which one
corresponds to fixed cost ?
(D) Salesmanship
(A) Transportation charges

62. Which of the following (B) Payments for raw material

(C) Labour costs
phenomena reflects the process of
(D) Insurance premium on
adoption of innovation by the property

market ? 65. Typically increasing interest
rates :
(A) Product differentiation (A) discourage individuals from
savings
(B) Perceptual map
(B) discourage corporate

(C) Ausoff matrix investments

(C) encourage corporate expansion
(D) Diffusion of products/services
(D) encourage corporate borrowing
17 [P.T.O.

66. Capital employed is : 69. Combinations of firms having

(A) Cash + Bank unrelated lines of business

(B) Shareholder’s funds + Long activities are called :
funds
(A) Horizontal merger
(C) Cash + Assets

(B) Vertical merger
(D) Bank

67. The method used for reducing risk (C) Conglomerate merger

by using derivatives is called :
(D) Forward merger
(A) Hedging
70. The full form of TRIPS is :
(B) Stock Index

(A) Trade Related Intelligence
(C) Currency swaps

(D) Interest rate swaps and Property Rights

68. The rate that currently paid for (B) Trade Related Investment and

the delivery of a currency at
Personal Rights
future date is called :
(C) Trade Related Intellectual
(A) Forward discount
Property Rights
(B) Forward exchange rate

(C) Foreign exchange rate (D) Trade Related Investment and

(D) Cross rate Property Rights

18

71. An international compact signed
74. Which of these is not a
in 1997 that calls for reduction
in the emission of carbon dioxide
component of the international
and 5 other greenhouse gases
is :
capital market ?
(A) Central American Free Trade
Agreement (A) Foreign Exchange Market
(B) Global Trade Negotiations
(C) Kyoto Protocol (B) International Equity Market

(D) Environmental Superfund
(C) Euro Currency Market
72. GATT framework of multilateral
international trade treaties has
now graduated into : (D) International Bond Market

(A) IMF
75. The unbundling and repackaging
(B) NAFTA
(C) SAARC of hard-to-trade financial assets

(D) WTO
into more liquid, negotiable and
73. Letter of credit is an instrument
to achieve the following : marketable financial instruments
(A) To realise payments for the
is called :
export consignments
(B) To establish the credibility of
(A) Market Liquidity
the exporter among the
foreign buyers
(B) Securitization
(C) To establish the brand value
of the good supplied by
exporter (C) Bartering

(D) To establish credentials before
(D) Arbitrage
the government authorities
19 [P.T.O.

ROUGH WORK

20