MAHA SET 2019 Question Paper 2 Management

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A
MANAGEMENT
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JUN - 51219 (To be filled by the Candidate)
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2

Management
Paper II
Time Allowed : 120 Minutes] [Maximum Marks : 200
Note : This Paper contains Hundred (100) multiple choice questions. Each question
carrying Two (2) marks. Attempt All questions.
1. In a juice making company sales 4. What is the term for the ‘rule of
manager has set the goal of thumb’ type of bias in decision-
increasing the sales by 20% in making ?
summer season. At the end of
summer, Manager will check either (A) Framing bias
goal has been achieved or not. This (B) Hindsight bias
function is known as :
(C) Over-confidence bias
(A) Planning
(D) Heuristics
(B) Organizing
5. “Natural resources determine the
(C) Leading
course of development and constitute
(D) Controlling the challenge which may not be
2. Which is not a characteristic of accepted by the human mind”, who
corporate social responsibility ? has said it ?
(A) Product Safety (A) W. Arthur Lewis
(B) Consumer Rights (B) J.I. Fisher
(C) Environmental Policies (C) Jan Tinbergen
(D) Price-Fixing (D) W.W. Rostow
3. Which of the following is the 6. To eradicate the problem of poverty
accountability for the achievement
Twenty Point Economic Programme
of objectives, the use of resources,
was launched for the first time in
and the adherence to organizational
India on :
policy ?
(A) Power (A) 7th July, 1971

(B) Responsibility (B) 7th July, 1975

(C) Authority (C) 26th January, 1951
(D) Planning (D) 15th August, 1983

3 [P.T.O.

7. Assume that consumer’s income and 10. What are the barriers to effective
the number of sellers in the market communication ?
for good X both falls. Based on this
(A) Moralising being judgemental
information we can conclude with
and comments of consolation
certainty that the equilibrium :
(B) Dialogue, summary and self-
(A) Price will decrease
review
(B) Price will increase
(C) Use of simple words, cool
(C) Quantity will increase
reaction and defensive attitude
(D) Quantity will decrease
(D) Personal statements, eye contact
8. Which of the following is a and simple narration
characteristic of capital as factor of
11. On the basis of function of Human
production ?
Resource Management, the coverage
(A) It never depreciates of personnel policies has been
(B) It is fixed in supply classified by Michael Armstrong not

(C) It is an active factor of include the following :

production (A) Adjudication Policies
(D) It is a passive factor of (B) Employment Policies
production
(C) Promotion Policies
9. Dividing a task in number of steps,
(D) Relation Policies
each of which is completed by an
individual is essence of : 12. Training need assessment should
consider all except :
(A) Information sharing
perspective (A) Changes in external environment

(B) Departmentalization (B) Training objectives

(C) Work specialization (C) Key changes in the technology

(D) Collectiveness (D) The person
4

13. When the most recent information 16. Common core set of values amongst
team members for cooperative and
dominates someone’s perception collaborative effort is an essentiality
about others then there is : for :
(A) Reinforcing transferability
(A) Primary effect
(B) Reinforcing team role
(B) Recency effect perception

(C) Hallo effect (C) Reinforcing accountability
(D) Reforcing team workability
(D) Projection bias
17. Match the following and select
14. A process by which an individual the correct answer from the codes
given below :
learns voluntary behaviour is :
List-I List-II
(A) Classical Conditioning
(Theories) (Propagators)
(B) Voluntary Conditioning (1) POSDCORB (I) Henry Fayol

(C) Social Conditioning (2) Espirit De (II) George A
Corps Pennock
(D) Operant Conditioning (3) Integration (III) Mary Parker
Theory Follette
15. The behaviour we learn from
(4) The illumina- (IV) Luther Gulick
observing and imitating others
tion experiment
explain through :
Codes :
(A) Social Learning (1) (2) (3) (4)
(A) (IV) (I) (II) (III)
(B) Cognitive Learning
(B) (IV) (I) (III) (II)
(C) Programmed Learning
(C) (III) (I) (II) (IV)
(D) Linear Learning (D) (IV) (II) (III) (I)
5 [P.T.O.

19. Match the following (selection errors
18. MBTI is the most widely used List I with their descriptions List II)
and select the correct answer from
instrument for personality analysis.
the codes given below :
Which of the following statements List-I List-II
(1) True Negative (I) Selection score
about MBTI is/are true ? is high; per-
formance is
(a) MBTI has 108 items. low
(2) True Positive (II) Both selection
(b) Sixteen personality types are score and per-
formance is
generated by the instrument. low
(3) False Negative (III) Selection score
(c) MBTI has 100 items. is low; per-
formance is
high
(d) Sixteen personality types are
(4) False Positive (IV) Both selection
based on a combination of four score and per-
formance is
basic elements of psyche. high
Codes :
(e) MBTI was developed by a (1) (2) (3) (4)
father-daughter team. (A) (II) (III) (IV) (I)
(B) (II) (IV) (III) (I)
(f) MBTI was developed by a (C) (IV) (I) (II) (III)
mother-daughter team. (D) (III) (II) (IV) (I)
20. Which of the following may be
(A) (a), (d) and (e) are true termed as a scientific and systematic
effort to modify the characteristics
of an employee’s job ?
(B) (b), (c), (d) and (f) are true
(A) Job redesign
(C) (a), (b), (e) and (f) are true (B) Job enlargement
(C) Job enrichment
(D) (f), (d) and (e) are true (D) Job description
6

21. Which of the following aspect of job
23. Which of the following features
cannot be considered under quality
of work life ? characterise the Balance Score Card

(A) Freedom and autonomy to make Method ?
decisions on the job
(1) The score cards are cascading
(B) Satisfactory physical
surroundings at workplace in nature and as such are all

(C) Job satisfaction and job safety pervasive in an organisation.

(D) Freedom and autonomy to leave
(2) It is supported by effective
workplace without taking
permission from the superiors communication system.

22. Members of the Trade Union are
(3) Standardization of goal is not
required to pay a subscription per
annum as per the provisions of rigid.

Trade Union Act, 1926. For workers
(4) Customer focus is an integral
working in other unorganised
sectors, excepting rural workers, the part of balance score cards.
annual rate of subscription should
not be less than : (A) (1), (2) and (3)

(A) Re. 1 per annum (B) (2), (3) and (4)
(B) Rs. 3 per annum
(C) (1), (3) and (4)
(C) Rs. 12 per annum

(D) Rs. 24 per annum (D) (1), (2) and (4)

7 [P.T.O.

24. What is a “Wild Cat Strike” ? 25. Who is associated with the

(A) A strike perpetrated by workers approaches to disciplinary action

with the support of the relevant such as judicial approach, human

union without giving notice to relations approach, human resource

the employer. approach, group discipline approach

and leadership approach ?
(B) Strike called by the union after

resorting to a strike ballot. (A) Mirza S. Saiddain

(C) Strike called by a union with a (B) N.N. Chatterjee

formal notice to the employer (C) Arun Monappa

just a few minutes before the
(D) C.B. Mamoria

commencement of the strike.
26. Which of the following is not a career

(D) Strike called by a group of
stage ?

workers on the spur of the
(A) Growth
moment without any formal
(B) Decline
notice to the employer or any

(C) Exploration
consent from the relevant

union. (D) Late Career

8

27. Key factors in skills development and 29. Alpha, Beta, Gamma A and Gamma
talent management are : B changes are related to which
(A) A broad definition of talent to change ?
ensure inclusivity (1) Structural change
(B) Finding a balance between staff (2) Process change
development and making staff
(3) System change
more employable
(4) Cognitive change
(C) Compliance with the EE Act
Select the correct answer from the
(D) Both (A) and (B)
following key :
28. Performance management is a
system that : (A) (1) and (2)
(B) Only (2)
(1) Ensures that Employee’s
performance is supporting (C) Only (4)
company’s aim. (D) (3) and (4)
(2) Starts with fixing performance 30. Which of the following is the correct
standards and ends with
formula for calculating the direct
comparing results with those
group relations of ‘Span of Control’
standards.
as given by V.A. Garicuna ?
(3) Includes daily or weekly
interactions to ensure 2n
(A) r n n 1
continuous improvement in n
employee’s performance.
(4) Ensures that employee has 2n
(B) r n n 1
requisite training to perform n
the job.
2n
(A) Only (1) (C) r n 1
n
(B) (1), (3) and (4)
(C) (1) and (4) 2n
(D) r n 1
(D) Only (2) n

9 [P.T.O.

31. Which of the following equations 33. Which of the following will not be

properly represents a derivation included in a balance sheet ?

of the fundamental accounting (A) Accounts receivable

equation ?
(B) Accounts payable

(A) Assets + Liabilities = Owner’s (C) Sales

equity
(D) Cash

(B) Assets = Owner’s Equity
34. Which of the following transactions

(C) Cash = Assets will result in inflow of funds ?

(D) Assets – Liabilities = Owner’s (1) Issue of debentures

equity (2) Conversion of debentures into

32. ......................... is the likelihood that equity shares

managers may place personal goals (3) Redemption of long-term loan

ahead of corporate goals.
(4) Creation of general reserve

(A) EPS maximisation (A) Only (1)

(B) Profit maximisation (B) Only (4)

(C) EVA problem (C) Both (1) and (4)

(D) Agency problem (D) Both (2) and (3)

10

35. In budgetary control ....................... is 38. Contribution per unit is Rs. 100.
Fixed costs are Rs. 6,00,000.
used whereas in standard costing
Production and sales are 8,000 units.
...................... is used.
Total contribution is :
(A) Unit concept, Total concept (A) Rs. 6,00,000

(B) Total concept, Unit concept (B) Rs. 4,00,000

(C) Rs. 2,00,000
(C) Marginal concept, Gross concept
(D) Rs. 8,00,000
(D) Gross concept, Marginal concept
39. Which of the following is not a
36. Cost accounting concepts include all major decision taken by a finance
of the following, except : manager ?

(A) The investment decision
(A) Planning
(B) The financing decision
(B) Controlling
(C) The dividend policy decision
(C) Profit sharing
(D) The VMO decision

(D) Product costing 40. ............................ represents the level
of EBIT necessary for the firm to
37. ............................. is also known as
break even on its fixed financial
subsidiary budget. charges i.e. interest and preference

(A) Master budget dividend.

(A) Financial leverage
(B) Cost budget
(B) Financial BEP
(C) Standard budget
(C) Indifference point
(D) Functional budget (D) Operating leverage
11 [P.T.O.

41. Which of the following is not an 43. Which of the following is not a form

of takeover ?
example of systematic risk ?
(A) Friendly
(A) The government changes the
(B) Hostile
interest rates and the corporate
(C) Backflip
tax rate is increased
(D) Divestiture

(B) The inflation rate increases 44. The share valuation model which
states :
(C) The company workers declare
D
strike P=
Ke – g

(D) The government withdraws tax where

on dividend payments by P = Price of equity shares

companies D = Initial dividend

42. If the value of NPV for a project is Ke = Cost of equity capital and

zero, its PI will be : g = Expected growth rate in earnings

is related to .................. .
(A) Zero
(A) Walter’s Model
(B) One
(B) Gordon’s Model
(C) More than one
(C) M-M Model

(D) Less than one (D) Porter’s Model

12

45. ............................. is a sale of the 48. Which of the following statements
existing firm to the management. is false ?

(A) Leveraged buyout (A) An option writer is one who sells

(B) Management buyout an option contract.

(C) Spin-off (B) Expiration date is the date
beyond which the option has no
(D) Split-up
value.
46. APT as a model of security pricing
(C) Writing a call option and a put
is based on the concept of :
option will result in the same
(A) Arbitrage
payoffs to writer when spot
(B) Equilibrium falls.

(C) Allocation (D) A holder of a call option can

(D) Amalgamation incur losses at the most upto the
premium amount he pays.
47. A portfolio consists of two securities
with expected returns of 12% and 49. As per factoring agreement the

16% respectively. If the first security ...................... becomes responsible for

accounts for 40% of portfolio, the all credit control, sales accounting

return of portfolio will be : and debt collection from the buyers.

(A) 14% (A) Control officer

(B) 14.4% (B) Debtor

(C) 16% (C) Factor

(D) 12% (D) Sales Accountant

13 [P.T.O.

50. A rate of Rs. 73 per U.S. dollar is 53. Major reason for accepting stability

an example of ..................... quotation. strategy is :

(A) Environment demands rapid
(A) American
activities
(B) Indiana
(B) It is highly risky
(C) Direct
(C) Requires additional resources

(D) Indirect (D) Potential opportunities are

51. In strategic management, important non-existent

decisions are made by Board of 54. If a company makes related
diversification, it will be known
Directors. This level of strategic
as :
management is known as :
(A) Concentric Diversification
(A) Corporate Level
(B) Conglomerate Diversification
(B) Business Level
(C) Controlled Diversification
(C) Functional Level
(D) Rapid Diversification
(D) Managerial Level 55. In case of GE 9 cell matrix, if

52. Performance analysis of the industry attractiveness is low but
business unit strength is high, the
organization is described as :
product strategy should be :
(A) SWOT analysis
(A) Invest
(B) External analysis
(B) Protect
(C) Internal analysis (C) Harvest

(D) Economic analysis (D) Divest
14

56. Core competencies are described as
59. Any paid form of non-personal
........................... in McKinsey’s 7S

framework. presentation by an identified

(A) Strategies sponsor is popularly known as :

(B) Systems
(A) Advertising
(C) Skills

(D) Staff (B) Personal Selling

57. Establishing an image of the product
(C) Direct Marketing
or service in the mind of consumer

is described as : (D) Sales Promotion

(A) New product development
60. The total assortment of products and
(B) Positioning
services marketed by a firm are
(C) Product life cycle

(D) Sales promotion called as :

58. First step of new product
(A) Product line
development is :

(A) Product Launch (B) Individual product

(B) Idea Screening
(C) Product mix
(C) Idea Generation

(D) Market Survey (D) Product strategy

15 [P.T.O.

61. Distribution strategy in which 63. The method of corporate image
company limits its outlets in
building handling unfavourable
different regions or buyer can buy
events and stories to get favourable
in only company’s territory is
public response is called :
classified as :

(A) Intensive territorial agreement (A) Sales Promotion

(B) Selective territorial agreement (B) Personal Selling

(C) Inclusive territorial agreement
(C) Public Relations

(D) Exclusive territorial agreement
(D) Advertising
62. Many companies in India are taking
64. The concept of retail organisation in
up rural marketing because :
which two or more outlets are
(A) There is exemption from Sales-

Tax controlled and owned commonly is

(B) There is clean environment classified as :

(C) It is economic to distribute in (A) Chain Stores

rural markets
(B) Voluntary Stores
(D) Rural market in India has a
(C) Super Stores
tremendous potential that is yet

to be tapped (D) Discount Stores

16

65. Collection of activities used to sell 68. Offering of all brands and brand
products too directly to end users for lines by a particular company is

non-business use is classified as : considered as :

(A) Inter-modelling (A) Company portfolio

(B) Distribution operation (B) Brand portfolio

(C) Wholesaling (C) Corporate portfolio

(D) Brand line portfolio
(D) Retailing
69. Physical evidence in case of services
66. Marketing channel that involves no
marketing helps :
intermediaries to make their
products available to final buyers is (A) To evaluate the services by

classified as : customers

(A) Direct Channel (B) To easily deliver the services

(C) To evaluate the services by the
(B) Indirect Channel
service provider
(C) Flexible Channel
(D) To assess the service quality by
(D) Static Channel
third party
67. The minor stimuli which determines 70. What is referred to the event when
when and how customers will a customer’s expectations of a service
respond in certain way is called : encounter are not met ?

(A) Perception (A) Service scape

(B) Cues (B) Service recovery

(C) Motives (C) Service failure

(D) Drives (D) Service mix

17 [P.T.O.

71. Brand equity generally means : 74. A type II error is :

(A) Brand Attitude (A) Accepting H0 when it is false

(B) Brand Positioning
(B) Accepting H0 when it is true
(C) Brand Value
(C) Rejecting H0 when it is false
(D) Brand Sales
(D) Rejecting H0 when it is true
72. .......................... modules enable a
75. Sampling error can be reduced by :
company to learn more about

customers and their needs with each (A) Non-probability sampling

interaction.
(B) Increasing the sample size
(A) ERP
(C) Increasing the population
(B) EDI
(D) Reducing the sample size
(C) CRM
76. Which value of correlation coefficient
(D) EFT
(r) suggests strongest correlation
73. Which of the following is not a
amongst the following ?
measure of dispersion ?
(A) r = 0
(A) Mean Deviation
(B) r = 0.25
(B) Normal Deviation

(C) Standard Deviation (C) r = 0.75

(D) Range (D) r = –1

18

77. The assumption that the variance 79. For the same volume of production,
process layout needs ................. space
of the residuals about the predicated
as compared to product layout.
dependent variable scores should
(A) less
be same for all predicted scores
(B) equal
reflects :
(C) more
(A) Homogeneity
(D) cannot be determined

(B) Normality 80. The purpose of transportation
approach to locational analysis is to
(C) Multicollinearity
minimise :
(D) Homoscedasticity (A) Total Costs

78. If the optimum solution table of a (B) Total Shipping Costs

transportation problem has more (C) Total Variable Costs

than one empty cell having their (D) Total Fixed Costs

opportunity cost as zero, then it 81. In PERT/CPM network, a dummy
activity is necessary when :
indicates that :
(A) Two activities have the same
(A) The solution is not feasible
starting node
(B) Something is wrong in the (B) Two activities have the same
solution ending node

(C) A node actually does not
(C) A case of degeneracy
connect to another node
(D) The problem has multiple
(D) When two activities share the
solutions same starting and ending node

19 [P.T.O.

82. Which of the following is not the 85. As per the principle of comparative
advantage of Special Economic Zone advantage, a country shall benefit
(SEZ) ? in foreign trade if it :
(A) Single window clearance
(A) has better technology
(B) 100% income tax exemption
(B) has better management and
(C) Ready market for products
techniques
(D) Central/State taxes exemptions
(C) specializes in goods which could
83. Batch processing involves : be produced at comparatively
(A) Processing of data much after lower costs
the transaction has completed
(D) dumps goods in other countries
(B) Processing of data as the
86. Transaction processing systems are
transaction is happening
also called online system because :
(C) Both (A) and (B)
(A) They record all transactions as
(D) Processing of data as the
they happen in real time.
transaction is happening, but
form a batch storage (B) They record all activities of

84. Facebook Tackles Big data with various lines and functions in

.................... based on Hadoop. an organisation.

(A) Project Prism (C) The record and aggregate

(B) Prism activities to report them online.

(C) Project Data (D) They record only online

(D) Project Bid transactions of an organisation.

20

87. What is Artificial Intelligence ? 89. Investors from all over the world

(A) Putting your intelligence into
prefer investing in India through
computer
Mauritius because :
(B) Programming with your own

intelligence (A) It involves minimum paper

(C) Making a machine intelligent work

(D) Putting more memory into
(B) It is cheap and convenient
computer
(C) It is profitable in the long-run
88. If a country experiences deficit in

the balance of payments accounts, (D) Investors can take advantage of
it can be corrected through :
double tax avoidance treaty
(i) demonetization
90. The .............. approach emphasizes
(ii) nationalization of industries
the human element of necessary
(iii) exchange control

(iv) import quotas change within organisations.

Choose the correct alternative : (A) OLAP

(A) (i) and (ii)
(B) Data Mining
(B) (iii) and (iv)
(C) Data Warehousing
(C) (i) and (iii)

(D) (i) and (iv) (D) BPR

21 [P.T.O.

91. ........................ is a specialised firm
94. If the investment in fixed assets or
that finances young, startup
companies. plant and machinery does not exceed

(A) Finance Company
five crore rupees then that
(B) Small Business Finance Co.
particular firm comes under the
(C) Venture Capital Firm
category of :
(D) Capital Creation Co.

92. The concept of Small Scale
(A) Medium Scale Industry
Industries (SSIs) was brought to the
fore by the : (B) Small Scale Industry
(A) Industrial Policy Resolution
1948 (C) Cottage Industry

(B) Industrial Policy Resolution
(D) Village Industry
1956

(C) Industrial Policy Statement 95. The primary purpose of the five
1977
forces model is to :
(D) Industrial Policy Statement
2016 (A) List the five forces in rank order
93. Which bank is called lender of last
resort ? (B) Provide a graphic model

(A) Commercial Bank
(C) Assess the five forces as
(B) Agricultural Bank
compared to the standard value
(C) Industrial Bank

(D) Central Bank (D) Strategic analysis

22

96. Innovation can help to provide a
99. Entrepreneurship can be best
temporary competitive advantage
when : described as :
(A) Barriers to entry are high
(A) a process involving innovation,
(B) Barriers to imitation are low
and intellectual property rights new products or services, and
are difficult to enforce
value creation
(C) Barriers to entry are low
(D) There are few other competitors (B) having a strong vision

97. Which of the following is not a
(C) taking significant risk in a
significant reason for becoming a
woman entrepreneur ? business context

(A) Self image as it relates to status
(D) a process that requires setting
(B) Flexibility in working hours
up a business
(C) Keeping oneself gainfully
occupied
100. Which of the following gives the
(D) Earning extra money for family
owners a negative right, preventing
98. Factors supporting establishing
climate for Intrapreneurship in an anyone from making, using, or
organization :
selling the invention ?
(A) Experimentation trial and error
is encouraged (A) Copyright
(B) Failures not allowed
(B) Trade mark
(C) Barriers to new product creation
and development
(C) Patent
(D) Limited resources with short-
term goals (D) Trade Secret

23 [P.T.O.

ROUGH WORK

24