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All 100 questions with answers

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  1. 1.
    Which of the following statements are correct ? i. Controls pertain to means and control pertains to an end. ii. Controls are analytical and concerned with what was. Control is normative and is concerned with what ought to be. iii. Controls refer to measurement and information whereas control is related to direction. iv. Controls deal with facts and events of the past. Control deals with expectations.
    Show answer and explanation
    Answer: C —
    All of the above
    All the given statements about controls and control are correct.
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  2. 2.
    In which form of organization structure are Strategic Business Units created ?
    Show answer and explanation
    Answer: B —
    Divisional structure
    Strategic Business Units (SBUs) are typically created in a divisional structure.
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  3. 3.
    ___________ denotes the authorization of managers at various levels to make decisions.
    Show answer and explanation
    Answer: B —
    Delegation
    Delegation denotes the authorization of managers at various levels to make decisions.
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  4. 4.
    _____________ is concerned with action or performance and is aimed at evaluating the performance of the organization as a whole or its different components-strategic business units, divisions and departments.
    Show answer and explanation
    Answer: A —
    Operational control
    Operational control is concerned with action or performance and aims at evaluating performance.
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  5. 5.
    ___________ involves designing suitable courses of action in anticipation of likely changes in the relevant environment.
    Show answer and explanation
    Answer: D —
    Proactive planning
    Proactive planning involves designing actions in anticipation of environmental changes.
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  6. 6.
    Narrow span of management results
    Show answer and explanation
    Answer: A —
    T all structure
    A narrow span of management results in a tall organizational structure.
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  7. 7.
    ___________ is based on the team concept in which each employee develops high degree of understanding towards others and shares common goals.
    Show answer and explanation
    Answer: D —
    Collegial model
    The collegial model is based on teamwork and shared goals.
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  8. 8.
    _____________ is the intended goal that prescribed definite scope and suggests direction to the planning efforts of a manager.
    Show answer and explanation
    Answer: A —
    Objective
    An objective is the intended goal that prescribes definite scope and direction.
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  9. 9.
    In decisional role, the manager performs roles of i. Entrepreneur ii. Figurehead iii. Disturbance handler iv. Negotiator
    Show answer and explanation
    Answer: C —
    Only (i, iii and iv)
    Entrepreneur, disturbance handler, and negotiator are decisional roles, whereas figurehead is an interpersonal role.
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  10. 10.
    'Every manager has a planning function to perform. Planning extends throughout the organization.' The above statement implies i. Pervasiveness of planning ii. Primacy of planning iii. Planning premises iv. Flexibility in planning
    Show answer and explanation
    Answer: C —
    Only (i)
    Extending throughout the organization implies the pervasiveness of planning.
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  11. 11.
    __________ is a problem in two way communication in the form of internal conflict and anxiety that occurs when people receive information incompatible with their value systems, prior decisions, or other information they may have.
    Show answer and explanation
    Answer: B —
    Cognitive dissonance
    Cognitive dissonance refers to the internal conflict and anxiety from receiving incompatible information.
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  12. 12.
    In which type of barriers, does premature evaluation fall ?
    Show answer and explanation
    Answer: B —
    Psychological barrier
    Premature evaluation is a psychological barrier to communication.
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  13. 13.
    In communication, adequacy is concerned with
    Show answer and explanation
    Answer: A —
    Coverage and quantity
    Adequacy in communication relates to coverage and quantity of information.
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  14. 14.
    In determining an effective communication strategy, managers must consider i. The specific content of the message. ii. The message's channel. iii. The physical environment in which it occurs. iv. The time the communication occurs.
    Show answer and explanation
    Answer: D —
    All of the above
    All listed factors must be considered when determining an effective communication strategy.
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  15. 15.
    Communication performs the ______________ by relating various components of the organization and maintaining equilibrium among them.
    Show answer and explanation
    Answer: D —
    Integrative function
    The integrative function relates organizational components to maintain equilibrium.
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  16. 16.
    Which one of the following is not an element of communication process ?
    Show answer and explanation
    Answer: D —
    Measurement
    Measurement is not a standard element of the communication process.
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  17. 17.
    ______________ is a type of semantic barrier in communication.
    Show answer and explanation
    Answer: D —
    Faulty translations
    Faulty translations are categorized as semantic barriers.
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  18. 18.
    ________________ is the study of nonlinguistic bodily movements, such as gestures, facial expressions etc.
    Show answer and explanation
    Answer: A —
    Kinesics
    Kinesics is the study of body movements like gestures and facial expressions.
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  19. 19.
    Nonverbal communication performs following function i. Complementing ii. Accenting iii. Contradicting iv. Repeating
    Show answer and explanation
    Answer: D —
    All of the above
    Nonverbal communication can complement, accent, contradict, and repeat verbal messages.
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  20. 20.
    What causes rumors in organization ?
    Show answer and explanation
    Answer: A —
    Ambiguity ×\times interest
    Rumors are typically a function of ambiguity multiplied by the interest/importance of the topic.
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  21. 21.
    An asset shall be classified as current when it satisfies any of the following criteria i. It is expected to be realized in or is intended for sale or consumption in, the company's normal operating cycle. ii. It is not held primarily for the purpose of being traded. iii. It is expected to be realized within twelve months after the reporting date. Of the statements
    Show answer and explanation
    Answer: B —
    Only (i) and (iii) are correct
    An asset is current if it is expected to be realized in normal operating cycle or within 12 months, and for statement (ii), being held primarily for trading makes it current, not 'not held primarily for trading'.
    Report a mistake
  22. 22.
    Which of the following accounting standards deals with the impairment of Assets ?
    Show answer and explanation
    Answer: D —
    AS 28
    Accounting Standard (AS) 28 deals with Impairment of Assets.
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  23. 23.
    Consider the following statements i. According to AS1 revenues and costs are accrued, that is recognized as they are earned or incurred and recorded in the financial statements of the periods to which they relate. ii. Section 128 (1) of the Companies Act, 2013 makes it mandatory for companies to maintain accounts on accrual basis only. Of the statements :
    Show answer and explanation
    Answer: C —
    (i) and (ii) are correct
    Both statements regarding the accrual basis of accounting under AS 1 and the Companies Act are correct.
    Report a mistake
  24. 24.
    According to accounting standards, an accounting policy can be changed if the change is required
    Show answer and explanation
    Answer: D —
    All of the above
    An accounting policy can be changed due to statute, accounting standards, or for more appropriate presentation.
    Report a mistake
  25. 25.
    Which of the following financial statements portrays value of economic resources controlled by an enterprise ?
    Show answer and explanation
    Answer: B —
    Balance Sheet
    The Balance Sheet portrays the economic resources (assets) controlled by an enterprise.
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  26. 26.
    ______________ is defined as residual interest in the assets of an enterprise after deducting all its liabilities.
    Show answer and explanation
    Answer: C —
    Equity
    Equity is defined as the residual interest in the assets after deducting liabilities.
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  27. 27.
    Which of the following accounting standard deals with depreciation accounting ?
    Show answer and explanation
    Answer: B —
    AS6
    AS 6 deals with depreciation accounting.
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  28. 28.
    According to sub Section (1) of Section 63, a company may issue fully paid up bonus shares to its members, in any manner whatsoever, out of
    Show answer and explanation
    Answer: D —
    All of the above
    Bonus shares can be issued out of free reserves, securities premium, or capital redemption reserve.
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  29. 29.
    Under _____________ measurement basis, assets are valued at the amount of cash or cash equivalents that would be needed to purchase the same or an equivalent asset at present.
    Show answer and explanation
    Answer: A —
    Current cost
    Current cost measures assets at the present purchase cost of equivalent items.
    Report a mistake
  30. 30.
    Which of the following accounting standards deals with the disclosure of accounting policies ?
    Show answer and explanation
    Answer: A —
    AS 1
    AS 1 deals with the disclosure of accounting policies.
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  31. 31.
    Bills payable on 01-01-2023 Rs. 3,00,000 Creditors on 01-01-2023 Rs. 2,50,000 Bills payable on 31-12-2023 Rs. 3,50,000 Creditors on 31-12-2023 Rs. 3,00,000 Credit purchase for the year Rs. 50,00,000 Credit sales for the year Rs. 60,00,000 What is the creditor's turnover ratio ?
    Show answer and explanation
    Answer: A —
    8.3 times
    Creditor's turnover ratio = Credit Purchases / Average Accounts Payable (Creditors + Bills Payable).
    Report a mistake
  32. 32.
    Equity share capital (Rs. 20 each) 50,00,000 Reserves and surplus 5,00,000 Secured loan at 15% 25,00,000 Unsecured loan at 12.5% 10,00,000 Fixed assets 30,00,000 Investments 5,00,000 Operating profit 25,00,000 Income tax rate 50% Market price per share Rs. 50 What is the P/E ratio ?
    Show answer and explanation
    Answer: A —
    12.5
    P/E ratio is calculated using market price per share divided by earnings per share.
    Report a mistake
  33. 33.
    From the following data, calculate the Earnings per share : Net profit before tax Rs. 4,00,000 T ax at 40% of net profit 5% preference shares of Rs. 100 each Rs. 1,00,000 Equity shares Rs. 4,00,000, Face value Rs. 10 Market price per share Rs. 150
    Show answer and explanation
    Answer: B —
    5.8
    EPS = (Net Profit after tax and preference dividend) / Number of equity shares.
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  34. 34.
    Which of the following is not a liquidity ratio ?
    Show answer and explanation
    Answer: B —
    Proprietary ratio
    Proprietary ratio is a solvency ratio, not a liquidity ratio.
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  35. 35.
    Consider the following statements about equity ratio which of the following statements are correct ? i. The share holder's equity is equity share capital, reserves and surplus (excluding fictitious assets). ii. This ratio indicates proportion of owners fund to total fund invested in the business.
    Show answer and explanation
    Answer: C —
    (i) and (ii) are correct
    Both statements regarding the definition and interpretation of the equity ratio are correct.
    Report a mistake
  36. 36.
    Which of the following is a liquidity ratio ?
    Show answer and explanation
    Answer: C —
    Net working capital ratio
    Net working capital ratio is categorized under liquidity/working capital ratios.
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  37. 37.
    The following information of a company is given Current ratio 2.5 : 1 Acid test ratio 1.5 : 1 Current liabilities 50,000 Fixed assets 20,00,000 What will be the value of inventory ?
    Show answer and explanation
    Answer: B —
    50,000
    Inventory = Current Assets - Quick Assets = (Current Liabilities ×\times 2.5) - (Current Liabilities ×\times 1.5) = 50,000×1=50,00050,000 \times 1 = 50,000.
    Report a mistake
  38. 38.
    If inventory turnover ratio is 5 times and average stock at cost is Rs. 75,000. Equity share capital Rs. 40,00,000. What is the cost of goods sold ?
    Show answer and explanation
    Answer: C —
    3,75,000
    Cost of goods sold = Inventory Turnover Ratio ×\times Average Stock = 5×75,000=3,75,0005 \times 75,000 = 3,75,000.
    Report a mistake
  39. 39.
    Given : Cash Rs. 10,000 Bills receivables Rs. 5,000 Debtors Rs. 25,000 Stock Rs. 20,000 Creditors Rs. 30,000 Cost of sales Rs. 1,50,000 Building Rs. 40,00,000 What is the working capital turnover ratio ?
    Show answer and explanation
    Answer: A —
    5 times
    Working capital turnover ratio = Cost of Sales / Net Working Capital.
    Report a mistake
  40. 40.
    The net profit (after tax) of a firm is Rs. 75,000 and its fixed interest charges on long term borrowings are Rs. 10,000. The rate of income tax is 50%. What will be the interest coverage ratio ?
    Show answer and explanation
    Answer: C —
    16 times
    Interest coverage ratio = Earnings before interest and tax (EBIT) / Fixed interest charges.
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  41. 41.
    T wo concepts that provide foundation for Lean Operations
    Show answer and explanation
    Answer: A —
    JIT and TPS
    Just-in-Time (JIT) and Toyota Production System (TPS) form the foundation for Lean Operations.
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  42. 42.
    Steps followed in production planning and control functions
    Show answer and explanation
    Answer: A —
    Routing, Loading, Scheduling, Dispatching, Expanding
    The standard sequence is Routing, Loading, Scheduling, Dispatching, and Expanding/Follow-up.
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  43. 43.
    Factor affecting capacity planning
    Show answer and explanation
    Answer: A —
    Existing and future manpower
    Manpower is a primary factor affecting capacity planning.
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  44. 44.
    Gantt Chart is a principal tool used for
    Show answer and explanation
    Answer: B —
    Product scheduling
    Gantt charts are principally used for scheduling tasks and production scheduling.
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  45. 45.
    BIS stands for
    Show answer and explanation
    Answer: B —
    Bureau of Indian Standards
    BIS stands for Bureau of Indian Standards.
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  46. 46.
    The five P's in Production/Operations Management are
    Show answer and explanation
    Answer: B —
    Product, Plant, Processes, Programmes, People
    The five Ps generally include Product, Plant, Processes, Programmes, and People.
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  47. 47.
    Which does not come under TQM tools ?
    Show answer and explanation
    Answer: B —
    Gantt Chart
    Gantt chart is a project management and scheduling tool, not a quality control/TQM tool.
    Report a mistake
  48. 48.
    A family of environmental management standards developed by the International Organization for Standardisation (ISO) volume
    Show answer and explanation
    Answer: C —
    ISO 14000
    ISO 14000 is the family of standards related to environmental management.
    Report a mistake
  49. 49.
    Which issue is not related to T alent Management ?
    Show answer and explanation
    Answer: C —
    Worker Conflicts
    Worker conflicts pertain more to employee relations rather than strategic talent management.
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  50. 50.
    A management strategy that minimizes inventory and increases efficiency
    Show answer and explanation
    Answer: A —
    JIT
    Just-in-Time (JIT) minimizes inventory and increases efficiency.
    Report a mistake
  51. 51.
    Supply Chain risk includes
    Show answer and explanation
    Answer: D —
    All of the above
    All listed aspects involve vulnerabilities and risks in the supply chain.
    Report a mistake
  52. 52.
    Honda and Nissan are moving more manufacturing out of Japan as the exchange rate of Yen makes Japanese-made autos expensive. The risk reduction tactic used is
    Show answer and explanation
    Answer: C —
    Economic
    Exchange rate fluctuations and costs relate to economic risks.
    Report a mistake
  53. 53.
    Variable not considered for supplier evaluation
    Show answer and explanation
    Answer: B —
    Documentation
    Documentation is typically administrative and not a core evaluation variable compared to price, delivery, and quality.
    Report a mistake
  54. 54.
    Planning and calculating raw material requirement are done in
    Show answer and explanation
    Answer: A —
    MRP I
    Material Requirements Planning (MRP I) focuses specifically on calculating raw material requirements.
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  55. 55.
    Most widely used pull inventory model
    Show answer and explanation
    Answer: C —
    JIT and KANBAN
    JIT and Kanban are the most widely used pull inventory models.
    Report a mistake
  56. 56.
    Cost related to overtime, training, layoff are included in
    Show answer and explanation
    Answer: D —
    Capacity associated cost
    Overtime, training, and layoff costs are part of capacity-associated or workforce-related costs.
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  57. 57.
    Which is the conversion process in which successive units of output undergo the same sequence of operation, using specialised equipment usually positioned along a product line ?
    Show answer and explanation
    Answer: A —
    Flow shop
    A flow shop processes units along a continuous product line.
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  58. 58.
    Which of the following does not belong to fixed path equipment in material handling ?
    Show answer and explanation
    Answer: C —
    Hand stacks
    Hand stacks/trucks are variable path equipment, whereas conveyors and monorails are fixed path.
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  59. 59.
    Efficiency of output and input factors of an enterprise is termed as
    Show answer and explanation
    Answer: B —
    Productivity
    Productivity measures the ratio of output to input factors.
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  60. 60.
    Basic approach to inventory control
    Show answer and explanation
    Answer: C —
    Both 1 and 2
    Inventory control uses both unit control and value control approaches.
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  61. 61.
    Document issued by a shipping company or its agent acknowledging the receipt of goods mentioned in the bill for shipment on board of the vessel is known as
    Show answer and explanation
    Answer: C —
    Bill of lading
    A bill of lading acts as a receipt of goods shipped on board a vessel.
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  62. 62.
    What is concerned with maintaining materials at the optimum level keeping in view the operational requirements and financial resources ?
    Show answer and explanation
    Answer: C —
    Inventory control
    Inventory control maintains materials at optimum levels.
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  63. 63.
    ROI stands for
    Show answer and explanation
    Answer: B —
    Return on Investment
    ROI stands for Return on Investment.
    Report a mistake
  64. 64.
    Document prepared on receipt of material stores is
    Show answer and explanation
    Answer: B —
    GRN
    Goods Received Note (GRN) is prepared upon receipt of materials into stores.
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  65. 65.
    Document which contains a precise description of goods is known as
    Show answer and explanation
    Answer: C —
    Invoice
    An invoice contains a precise description and pricing of goods.
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  66. 66.
    Which of the following is not true of a letter of credit ?
    Show answer and explanation
    Answer: C —
    Issued at the request of the exporter
    A letter of credit is issued at the request of the importer (buyer), not the exporter.
    Report a mistake
  67. 67.
    Important shipping document necessary and useful in export import transaction.
    Show answer and explanation
    Answer: A —
    Letter of credit
    Letter of credit is a vital document in international trade finance.
    Report a mistake
  68. 68.
    Physical movement of goods out of a country in a legal manner is
    Show answer and explanation
    Answer: A —
    Export
    The outward movement of goods is an export.
    Report a mistake
  69. 69.
    Which is an example of intellectual property ?
    Show answer and explanation
    Answer: B —
    Trademark
    Trademark is a form of intellectual property.
    Report a mistake
  70. 70.
    BOP means balance of receipts and payments of
    Show answer and explanation
    Answer: C —
    Foreign exchange by a country
    Balance of Payments (BOP) records international transactions and foreign exchange of a country.
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  71. 71.
    Material issues are always valued at the highest price of the receipts
    Show answer and explanation
    Answer: C —
    HIFO
    Highest In, First Out (HIFO) values material issues at the highest price of receipts.
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  72. 72.
    Last alternative to launch marketing strategies by challengers.
    Show answer and explanation
    Answer: B —
    Guerilla attack
    Guerrilla attack is often a selective or last-resort strategy for challengers.
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  73. 73.
    Last stage in product life cycle is
    Show answer and explanation
    Answer: C —
    Decline stage
    Decline stage is the final stage of the product life cycle.
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  74. 74.
    Safety stock level is also known as
    Show answer and explanation
    Answer: B —
    Minimum stock level
    Safety stock corresponds to the minimum stock level required to prevent stockouts.
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  75. 75.
    Stock verification is done at the end of an accounting year in
    Show answer and explanation
    Answer: B —
    Periodic inventory system
    Periodic inventory system involves stock verification at the end of the accounting period.
    Report a mistake
  76. 76.
    Loss which does not have any saleable value is
    Show answer and explanation
    Answer: A —
    Wastage
    Wastage refers to a portion of material lost that has no recovery or saleable value.
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  77. 77.
    Estimate or prediction as to what will happen in future which is uncertain is
    Show answer and explanation
    Answer: B —
    Forecast
    A forecast is a prediction of future uncertain events.
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  78. 78.
    Zero based budgeting was introduced by
    Show answer and explanation
    Answer: B —
    Jimmy Carter
    Zero-based budgeting was popularized by Jimmy Carter in the United States government.
    Report a mistake
  79. 79.
    When prices fluctuate widely, the method that will smooth out the effect of fluctuation is
    Show answer and explanation
    Answer: B —
    Weighted Average Method
    Weighted Average Method smooths out price fluctuations over inventory issues.
    Report a mistake
  80. 80.
    Under FSN system of inventory control, inventory is classified on the basis of
    Show answer and explanation
    Answer: B —
    Frequency of usage of items of inventory
    FSN stands for Fast-moving, Slow-moving, and Non-moving, based on frequency of usage.
    Report a mistake
  81. 81.
    What is a key factor in maintaining good customer relations in a store ?
    Show answer and explanation
    Answer: C —
    Excellent customer service
    Excellent customer service is key to good customer relations.
    Report a mistake
  82. 82.
    What does the acronym SKU stand for in retail ?
    Show answer and explanation
    Answer: A —
    Stock Keeping Unit
    SKU stands for Stock Keeping Unit.
    Report a mistake
  83. 83.
    Which inventory system involves continuous tracking of inventory levels ?
    Show answer and explanation
    Answer: C —
    Perpetual inventory system
    Perpetual inventory system involves continuous real-time tracking of stock.
    Report a mistake
  84. 84.
    What is the purpose of a planogram ?
    Show answer and explanation
    Answer: C —
    T o map out product placement on shelves
    A planogram is a diagram that maps out product placement on retail shelves.
    Report a mistake
  85. 85.
    In which type of store layout are products grouped by category to facilitate comparison shopping ?
    Show answer and explanation
    Answer: C —
    Boutique layout
    Boutique layout (or loop/specialty grouping) helps in comparison shopping by category.
    Report a mistake
  86. 86.
    What is the primary consideration when choosing a store location ?
    Show answer and explanation
    Answer: B —
    Customer traffic flow
    Customer traffic flow is a primary consideration for retail store locations.
    Report a mistake
  87. 87.
    What type of store is known for offering a wide selection of products within a specific category, often with a focus on high-end or niche items ?
    Show answer and explanation
    Answer: B —
    Specialty store
    Specialty stores offer a wide selection within a specific product category.
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  88. 88.
    Which type of store is generally smaller in size, located in residential areas, and provides quick shopping for everyday items like snacks, beverages, and toiletries ?
    Show answer and explanation
    Answer: A —
    Convenience store
    Convenience stores provide quick shopping for everyday items in residential areas.
    Report a mistake
  89. 89.
    What is 'Lead Time' in inventory management ?
    Show answer and explanation
    Answer: C —
    The time between ordering and receiving goods
    Lead time is the elapsed time between placing an order and receiving the goods.
    Report a mistake
  90. 90.
    In storekeeping, what does 'EOQ' stand for ?
    Show answer and explanation
    Answer: A —
    Economic Order Quantity
    EOQ stands for Economic Order Quantity.
    Report a mistake
  91. 91.
    What is a 'bin card' used for in storekeeping ?
    Show answer and explanation
    Answer: B —
    Recording the movement of materials in and out of a specific bin
    A bin card records physical receipts and issues of materials in a specific bin.
    Report a mistake
  92. 92.
    The process of ensuring that the right quality and quantity of materials are stored is called
    Show answer and explanation
    Answer: C —
    Inventory management
    Inventory management ensures proper quality and quantity of stored materials.
    Report a mistake
  93. 93.
    Which document is used to record the receipt of goods in storekeeping ?
    Show answer and explanation
    Answer: C —
    Goods Received Note (GRN)
    Goods Received Note (GRN) records the receipt of goods in stores.
    Report a mistake
  94. 94.
    What technology is commonly used to streamline the stock verification process ?
    Show answer and explanation
    Answer: A —
    RFID (Radio Frequency Identification)
    RFID technology streamlines stock verification and tracking.
    Report a mistake
  95. 95.
    During stock verification, what is the purpose of a cycle count ?
    Show answer and explanation
    Answer: B —
    T o count a subset of inventory items on a regular basis
    Cycle counting involves counting subsets of inventory on a rotating schedule.
    Report a mistake
  96. 96.
    Which of the following is an indicator of effective stock verification processes ?
    Show answer and explanation
    Answer: C —
    Accurate inventory records
    Accurate inventory records indicate effective stock verification.
    Report a mistake
  97. 97.
    In which type of layout are workstations grouped by the types of operations they perform ?
    Show answer and explanation
    Answer: A —
    Process layout
    In a process layout, similar operations or functions are grouped together.
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  98. 98.
    Which type of layout arranges workstation in a sequence that follows the flow of materials or operations ?
    Show answer and explanation
    Answer: C —
    Product layout
    Product layout arranges workstations in sequence according to the product flow.
    Report a mistake
  99. 99.
    Which tool is useful for minimizing the risk of stockouts ?
    Show answer and explanation
    Answer: B —
    Safety stock
    Maintaining safety stock specifically minimizes the risk of stockouts.
    Report a mistake
  100. 100.
    What is the main advantage of using barcode systems in inventory management ?
    Show answer and explanation
    Answer: A —
    Real-time tracking of inventory
    Barcodes enable quick and real-time tracking of inventory items.
    Report a mistake

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