Industrial Organisation and Management multiple choice questions

 Industrial Organisation and Management multiple choice questions

 Industrial Management and Business organization

1. Which one of the following statements is not correct?

A. Management is a goal oriented process

B. Management is a continuous process.

C. Management is a dynamic process.

D. Management is a rigid process.

Answer: Management is a rigid process.


2. Top management is concerned with formulation of

A. guidelines for supervisors.

B. long-term plans. 

C. Short-term plans. 

D. None of these.

Answer: long-term plans. 


3. Identify the feature of co-ordination being highlighted in the given statement: “Coordination is not a one time function; it begins at the planning stage and continue till controlling.”

A. Coordination ensures unity of action

B. Coordination is an all pervasive function

C. Coordination is a  continuous process 

D. Coordination is a deliberate function

Answer: Coordination is a  continuous process


4. This function of management relating to laying down the foundation for carrying out the other functions of management successfully is 

A. Organising 

B. Staffing 

C. Planning 

D. Controlling 

Answer: Planning 


5. Which of the following statements is not true for lower level management?

A. Analyse the business environment and its  implications for the  survival of the business.

B. Ensure the quality  of the output

C. They strive to reduce the wastage of resources

D. They ensure  that the safety standards are maintained within the organisation.

Answer: Analyse the business environment and its  implications for the  survival of the business.


6. Which management function involves setting goals and objectives and creating specific plans for completing  them?

A. planning 

B. organizing 

C. controlling 

D. eading

Answer: planning


7. By exceeding the monthly marketing budget set for a company, a manager would fail to meet which type of performance measure?

A. quantity 

B. quality and workmanship

C. cost and budget control

D. customer satisfaction

Answer: cost and budget control


8. If a manager leads a team to exceed their monthly goal of new clients, which type of performance results have  they attained?

A. quantity

B. quality and workmanship

C. cost and budget control

D. customer satisfaction

Answer: quantity


9. SWOT is an abbreviation for: 

A. Internal Strengths (S), Internal Weaknesses (W), External  Opportunities (O), External Threats (T).

B. Integrated Strategies (S), Integrated Weaknesses (W), External Opportunities (O), External Threats (T).

C. External Strengths (S), External Weaknesses (W), Internal Opportunities (O), Internal Threats (T).

D. External Strengths (S), Internal Weaknesses (W), External Opportunities (O), Internal Threats (T).

Answer: A. Internal Strengths (S), Internal Weaknesses (W), External  Opportunities (O), External Threats (T).


10. The BCG Matrix is based on ______

A. Industry attractiveness & Business Strength

B. Industry Growth rate & Business strength

C. Industry Attractiveness & Relative market share

D. Industry Growth rate & Relative  market share

Answer: D. Industry Growth rate & Relative  market share


11. In BCG matrix, __________ is the label of the horizontal axis

Relative Market share 

Relative Market 

share

Industry Growth 

Rate

Market Growth Rate

Answer: A


12. A business means 

A. Industry

B. Commerce 

C. Industry & Commerce

D. None of above

Answer: C


13. In business why it is necessary to make a profit

A. it provides funds for future extension

B. it provides a return to investors

C. it incerases the reputation of a company

D. All of above

Answer: D


14. Definition of business 

A. Objective 

B. Broad Primary 

C. Outcome

D. Goal Outcome

Answer: B


15. Business is an ........... activity, as it is conducted with the primary objective of earning money.

A. Economic

B. Service 

C. Business 

D. None of above

Answer: A


16. ........ involves setting objectives in advance and a goal which is to be achieved within a stipulated time.

A. Planning

B. Directing 

C. Controlling 

D. Organizing

Answer: A


17. ............ are used to measure and provide feedback to organizations. 

A. BCG Matrix 

B. 5 Porters Model

C. Balanced Score Card

D. Ishikawa Diagram

Answer: C


18. ..................is a collection of activities which together produces some value to the customer

A. Business Process

B. Management 

C. Process 

D. Business

Answer: A


19. In what order mangers perfom their managerial functions

A  organising, planning, controlling, leading

B. organising, leading, planning, controlling

C. planning, organising, leading, controlling

D. planning, organising, controlling, leading

Answer: C


20. At what level of an organization manger operate?

A. Middle level

B. Top level 

C. Operational 

D. Low level

Answer: B


21. Which post is given to an individual who is in charge of and coordinates the activities of a group of employees engaged in related 

activities within a unit of an organization? 

A. Manager 

B. Employee 

C. Supervisor

D. Engineer

Answer: A


22. A manager who have knowledge of the processes, equipment, and potential problems of an industry would possess what type of managerial skill? 

A. Technical 

B. Administrative 

C. Interpersonal 

D. Organizational

Answer: A


23. Which management function involves measuring results, comparing results to expectations, and taking corrective action?

A. planning 

B. organizing 

C. leading 

D. controlling

Answer: D


24. Which of the following SWOT analysis elements are internal factors for a business?

A. Strengths and Weaknesses

B. Opportunities and Threats

C. Strengths and Opportunities

D. Weaknesses and Threats

Answer: A


25. When a SWOT Analysis be performed? 

A. Only when specific issues need to be addressed

B. At least once per year

C. Only when the business starts

D. Every 3-5 years

Answer: B


26. Which of the following could be a threat?

A. Changes in technology 

B. A market vacated by an ineffective 

competitor

C. Location of your business

D. Lack of marketing expertise

Answer: A


27. In Porter's Five Forces, the 'threat of new entrants is relates to

A. Barriers to entry 

B. Substitutes 

C. Switching costs 

D. Buyer power

Answer: A


28. Porter's Five Forces framework is based on the principle of:

A. Resource-based view 

B. Conduct -structure -performance

C. Structure - conduct -performance

D. Econometrics

Answer: C


29. Ishikawa diagram is also known as? 

A. Fishbone diagram 

B. Cause and effect chart

C. Both 1 & 2 

D. None of above

Answer: C


30. The principles of the business process re-engineering approach do not include ……

A. Scrapping any process line over two years old and starting again from 

scratch

B. Checking that all internal customers act as their own suppliers to identify problems

C. Ensuring decision points occur where the work is performed.

D. None of above

Answer: A


31. Which of the following is not normally  used in category of fishbone diagrams?

Markets 

Methods 

Manpower 

Materials 

Answer: A


Quality, Inspection and Environment Management 

1. The objective of ISO-9000 family of Quality management is

A. Customer satisfaction 

B. Employee satisfaction

C. Skill enhancement 

D. Environmental issues

Answer: A


2. While setting Quality objective, ________ to be considered.

A. Customer need

B. Organizational need

C. Supplier need

D. Worker need

Answer: A


3. Which of the following is for Environment management?

A. ISO-9000 

B. ISO-14000 

C. ISO-26000 

D. ISO-31000

Answer: B


4. Which of the following is not an advantage of implementing a quality system that conforms to ISO standards?

A. Improvement in employee involvement

B. Improvement in housekeeping

C. Improvement in customer satisfaction

D. Inefficient decision making

Answer: D


5. Which is the latest ISO 9001 version in the ISO 9000 family?

A. ISO 9001:1994

B. ISO 9001:2000

C. ISO 9001:2008

D. ISO 9001:2015

Answer: D


6. Which ISO 9000 family standard provides the fundamentals and vocabulary for quality management systems?

A. ISO 19011:2018 

B. ISO 9000:2015 

C. ISO 9001:2015 

D. ISO 9004:2018

Answer: B


7. Quality circle is also known as ______

A. Quality control 

B. Quality forum 

C. Quantity circle 

D. Quantity control

Answer: B


8. ISO 9001:2015 is a _________

A. Quality Material Supply

B. Quantity Management System

C. Quality Management System

D. Quality Material Service

Answer: C


9. Which is not the role of R & D? 

A. Design Review 

B. Development of Product

C. Critical Fault Finding

D. Purchasing of components

Answer: D


10. The ISO 9000 quality system does NOT include

A. ISO 9001 for quality assurance in design and development

B. ISO 9002 for quality assurance in production and installation

C. ISO 9003 for quality assurance in final inspection

D. ISO 9000/A for overall quality management standards

Answer: D


11. ISO 14000 standards are for the ____

A. Quality Management System

B. Environmental Management System

C. Administration 

D. Supply chain 

Answer: B


12. Which of the following pair of ISO 14000 standards fall under the category of Environmental Management System?

A. ISO 14001 and ISO 14004

B. ISO 14010 and ISO 14001

C. ISO 14011 and ISO 14001

D. ISO 14011 and ISO 14004

Answer: A


13. Choose the wrong statement in relation with Statistical Process Control (SPC)

A. It's not a pre-defect approach

B. A statistically controlled process indicates that all products are acceptable

C. A statistically controlled process 

indicates that all products are acceptable with some deviation

D. Behavior of the process can be predicted

Answer: A


14. Which one among the following is the Environmental Management System standard?

A. ISI 

B. ISO 9001:2015 

C. ISO 27001:2013 

D. ISO 14001:2015

Answer: D


15. Which word is not suitable about inspection defined as a function to judge the __________ of the manufactured product or service

A. Quantity

B. Quality 

C. Acceptability 

D. Acceptance under deviation

Answer: A


16. Choose the correct option related to quality circle.

A. It is a structured means undertaken to improve the quality

B. Issues related to quality are discussed

C. No decision making is allowed

D. It motivates for termwork

Answer: C


17. Statistical process control ________ 

A. Increases customer satisfaction

B. Increases 

machine maintenance

C. Saves testing cost

D.  Reduces wastage

Answer: B


18. Which may not be the correct reason for business expansion?

A. Bridge the gap in the market

B. Increase profit

C. Increase competitors in the market

D. Risk in business may get distributed

Answer: C


19. Choose the incorrect one in relation to duties of quality circle leader.

A. should channalize the discussions

B. should assign the task to few members of quality circle

C. should coordinate with facilitator

D. should guide the circle members

Answer: B


Production Planning, Inventory Control and Supply Chain Management

1. Which of the following is true for Inventory control?

A. Economic order quantity has minimum total cost per order

B.Inventory carrying costs increases with quantity per order

C. Ordering cost decreases with lo size

D. All of above

Answer: A


2. Which of the following is not an inventory?

A. Machines 

B. Raw material 

C. Finished products 

D. Consumable tools

Answer: D


3. The following classes of costs are usually involved in inventory decisions except

A. Cost of ordering 

B. Carrying cost 

C. Cost of shortages 

D. Machining cost

Answer: C


4. The time period between placing an order its receipt in stock is known as

A. Lead time 

B. Carrying time 

C. Shortage time 

D. Over time

Answer: C


5. The essential function of a Stores Department is to provide

A. an efficient service to all other departments of an enterprise

B. a retail outlet from which to sell goods to consumer

C. a reason to employ additional staff

D. a place in which to house unwanted items

Answer: A


6. The first activity of Purchasing cycle is _____________

A. Communicating requirement to the purchase

B. Source Selection and development

C. Recognizing the need for procurement

D. Inspection of goods

Answer: C


7. Which of the following is true for Inventory control

A. Economic order quantity has minimum total cost per order

B. Inventory carrying costs increases with quantity per order

C. Ordering cost decreases with lo size

D. All of above

Answer: D


8. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

A. 400

B. 440 

C  480 

D. 500

Answer: A


9. For the purpose of Economic order quantity (EOQ) the relevant costs are 

A. The annual holding cost per item per annum

B. The annual ordering costs

C. Both A&B 

D. All of above

Answer: C


10. Which of the following is true for supply chain management

A. The physical material moves in the direction of the end of chain

B. Flow of cash backwards through the chain

C. Exchange of information moves in both the direction

D. All of above

Answer: D


11. In the economic order quantity or EOQ model the equation (Q/2) × CH calculates:

A. The number of orders each year

B. The total holding costs each year

C. Total ordering costs each year

D. All of above

Answer: B


Human Resources Management

Q1. Human Resource departments are______________
(a) line departments
(b) authority department
(c) service department
(d) functional department
Ans. (c)

Q2. What is human factor?
(a) Micro and macro issues of socio­economic factor.
(b) Interrelated Physiological, Psychological and Socio-ethical aspects of human being.
(c) The entire concept of human behaviour
(d) None of the above.
Ans. (b)

Q3. Job Analysis is a systematic procedure for securing and reporting information defining a ______________.
(a) specific job
(b) specific product
(c) specific service
(d) all of these
Ans. (a)

Q4. What are the factors responsible for the growth of HRM?
(a) Development of scientific management and awakened sense of social responsibility.
(b) The problem of how the available human resource could effectively minimise the cost and maximise the production.
(c) Technical factors, awakening amongst workers, attitude of the government, cultural and social system.
(d) All the above.
Ans. (c)

Q5. Which among the followings describe the skills that are available within the company?
(a) Human Resource inventory
(b) HRIS
(c) Skills inventory
(d) Management inventories
Ans. (a)

Q6. Who has defined personnel management as a field of management which has to do with planning and controlling various operative functions of procuring, developing, maintaining and utilising labour force?
(a) Harold Koontz
(b) Glueck
(c) Michael Jucius
(d) Flippo
Ans. (c)

Q7. Resources and capabilities that serve as a source of competitive advantage for a firm over its rivals are called _______________.
(a) core competency
(b) core competence
(c) competitive advantage
(d) competency
Ans. (a)

Q8. Human Resource planning is compulsory for ______________.
(a) effective employee development programme
(b) base for recruitment
(c) base for selection policy
(d) all of these
Ans. (d)

Q9. Job analysis, HR planning, recruitment, selection, placement, inductions and internal mobility are few important functions which come under the heading of______________ of HRM.
(a) integration function
(b) development
(c) maintenance
(d) procurement function
Ans. (d)

Q10. Directing is one of the important functions of HRM which comes under___________.
(a) managerial function
(b) operative function
(c) technical function
(d) behavioral function
Ans. (a)

Q11. Whom does Human relation approach refer to?
(a) Worker, who should be given humanly treatment at work.
(b) Mutual cooperation between employer and employee in solving the common problems.
(c) Integration of people into a work situation that motivates them to work together to achieve productivity and also economic, psychological and social satisfaction.
(d) None of the above.
Ans. (c)

Q12. Which of the following is a method of collection of information for job analysis?
(a) Questionnaire method
(b) Ratio analysis
(c) Optimisation models
(d) Trend analysis
Ans. (a)

Q13. ___________ provides information on the human attributes in terms of education, skills, aptitudes, and experience necessary to perform a job effectively.
(a) job description
(b) job specification
(c) job analysis
(d) job evaluation
Ans. (b)

Q14. Who laid the foundation of HRM practice?
(a) Elton Mayo
(b) Roethlisberger and Dickinson
(c) Peter Drucker and Douglas McGregor
(d) David C. McClelland.
Ans. (c)

Q15. How HRM has become a highly specialised job?
(a) It is concerned with obtaining and maintaining a satisfied work force.
(b) It maximises the output and satisfaction of the employees.
(c) Promote group satisfaction and individual development.
(d) Optimum utilisation of man-power by motivation and improving the efficiency.
Ans.(b)

Q16. Job specification includes _____________.
(a) Physical characteristics
(b) Psychological characteristics
(c) Personal characteristics
(d) all of these
Ans. (d)

Q17. TQM’s major emphasis is on___________ .
(a) Product quality
(b) Company profitability
(c) Customer delight
(d) Employee training
Ans. (a)

Q18. Ability to perform exceptionally well and increase the stock of targeted resources within the firm is called ___________.
(a) productivity
(b) efficient
(c) effective
(d) competency
Ans. (d)

Q19. What is the scope of HRM?
(a) Training and development of employees for their growth.
(b) Maintenance of good industrial relations and workers’ high morale for higher productivity
(c) Further researches in behavioural science, new ideas in man, management and advances in the field of training and development.
(d) None of the above.
Ans. (c)

Q20. What is the importance of controlling?
(a) Ensure that activities are in accordance with the terms of the plan.
(b) An important mental process on the part of a manager
(c) Power to influence people’s behaviour
(d) Process of regulating the activities.
Ans. (a)

Q21. What is a decision in management?
(a) Reaching at a proper conclusion after consideration.
(b) A decision involves choosing of alternatives.
(c) A decision is the outcome of a group of people or an individual.
(d) None of the above.
Ans. (a)

Q22. An employee-working in a unit or plant who is a citizen of the country in which the unit or plant is located but where the unit or plant is operated by an organisation headquartered in another country _____________.
(a) Home Country National
(b) Host Country National
(c) Third Country National
(d) Host Country
Ans. (b)

Q23. Quantitative Technique refers to-
(a) Models, simulation, resource allocation technique.
(b) Waiting line problems and the queuing theory
(c) Gaming and Game theory and Probability theory
(d) All the above.
Ans. (d)

Q24. Staffing includes _______.
(a) workload estimation
(b) termination
(c) appointments of personnel, placement
(d) all of these
Ans. (d)

Q25 .To calculate the need for manpower on the basis of the average loss of manpower due to leave, retirement, death, transfer, discharge, etc. is known as____________.
(a) work load analysis
(b) workforce analysis
(c) job analysis
(d) forecasting
Ans. (b)

Q26. MPDQ stands for_____________.
(a) Management Position Description Questionnaire
(b) Management Process Descriptive Questions
(c) Methods for Personality Development Questions
(d) Modern Positions Developed Qualitatively
Ans. (a)

Q27. What should be the strategy of HRM?
(a) Making the long-term and short-term planning.
(b) Planning the optimum level of man­power.
(c) Introducing training programmes to personnel.
(d) All the above.
Ans. (d)

Q28. The process of helping unwanted present employees find new jobs with other firms called ______________.
(a) Outplacement
(b) Replacement
(c) Placement
(d) Employment
Ans. (a)

Q29. What is the ‘Laissez fair’ view point?
(a) A view popularised by Ronssean, Bentham and Hobbes.
(b) A minimum of public intervention in economic activities.
(c) Business enterprise must get opportunity to earn more profits.
(d) The change in the concept of labour from commodity approach to human concept.
Ans. (b)

Q30. How can we understand the nature of human factor?
(a) Through determinants of human behaviour
(b) According to the behaviour of people at work
(c) The way the management influences an individual and a group.
(d) Through the study of human behaviour in organisation.
Ans. (b)

Q31. Trend analysis is a ______________
(a) Forecasting technique
(b) Skills inventory
(c) Job analysis technique
(d) Markov analysis
Ans. (a)

Q32. The factual statement of the duties and responsibilities of a specific job is known as _____________.
(a) job description
(b) job specification
(c) job analysis
(d) job evaluation
Ans. (a)

Q33. In Japanese management, employees’ career path is non-specialised. Why?
(a) In Japanese industries job rotation is carried out for employees to have different skills and also for interdepartmental cooperation.
(b) In an organisation from the time of induction, employees are exposed to various types of jobs and training to enable them to have adaptability to any job.
(c) Japanese management system prefers to create capable workers to adapt organisational changes, as and when required.
(d) Rotation of job provides benefit of skills required for top quality executives.
Ans. (c)

Q34. Who has said that HRM is not a one shot deal?
(a) Fayol
(b) Taylor
(c) Terry
(d) McFarland
Ans. (c)

Q35. Skills inventory, replacement charts, Markov analysis, regression analysis all are types of ____________.
(a) redundancy plan
(b) training plan
(c) retention plan
(d) forecasting methods
Ans. (d)

Q36. Trade unions and employee association, Industrial relation, employee participation and empowerment are procurement functions of a manager which comes under________.
(a) integration function
(b) procurement function
(c) development function
(d) behavioural function
Ans. (a)

Q37. Quality improvement is_____________.
(a) a team effort
(b) achieved by quality inspector
(c) zero things gone wrong
(d) tough job, and not possible
Ans. (b)

Q38. An employee working in a unit or plant who is not a citizen of the country in which the unit or plant is located but is a citizen of the country in which the organisation is headquartered is called __________.
(a) Home Country National
(b) Host Country National
(c) Third Country National
(d) Host Country
Ans. (a)

Q39.“Human resource management” involves the elements of
(a) planning, organising, and controlling
(b) planning, organising and coordinating
(c) leading, directing and coordinating
(d) all of the above
Ans. (d)

Q40. The procedure in which relevant information relating to a job and its requirements is systematically discovered and noted is
(a) job analysis
(b) job specification
(c) job classification
(d) job evaluation
Ans. (a)

Q41. Which pair in order of sequences represents the first and last steps in a T&D programme?
(a) determination of T&D needs, and evaluation of T&D programme
(b) determination of T&D needs, and designing the T&D programme
(c) designing T&D programme, and implementing it
(d) evaluating of T&D programme, and implementing it
Ans. (a)

Q42. Career development involves
(a) conscious determination of career aspirations and potentialities of employees and matching them with the organisation’s needs
(b) providing counselling to students to choose their careers
(c) providing information to students about opportunities of employment
(d) determining the potentialities of students for a suitable career
Ans. (a)

Q.43. When an employee expresses organisationally desired emotions during interpersonal transactions, then it is known as_______________ .
(a) emotional labour
(b) displayed emotions
(c) felt emotions
(d) moods
Ans. (a)

Q44. Job evaluation essentially seeks to
(a) determine the relative worth of various jobs in an organisation in monetary terms
(b) evaluate the performance of employees on their respective jobs
(c) evaluate the importance of various jobs in the organisation
(d) establish the hierarchy of various jobs in the organisation
Ans. (a)

Q45. Grievance redressal, discipline, collective bargaining are_______________ of HRM.
(a) integration function
(b) procurement function
(c) development function
(d) behavioural function
Ans. (a)

Q46. The content of job description involves_______________.
(a) job title, condition of work
(b) educational qualification, skills
(c) both a and b
(d) none of the above
Ans. (a)

Q47. How can one distinguish between the Japanese management system and other management systems?
(a) It encourages to perform constantly and consistently.
(b) Primarily concerned with high performance and quality standards.
(c) It is a system in contrast to American management system.
(d) None of the above.
Ans. (c)

Q48. In-basket training is involved in
(a) vestibule training
(b) on-the job training
(c) simulation
(d) coaching
Ans. (c)

Q49. To calculate the number of persons required for various jobs with reference to a planned output is called ________________.
(a) work load analysis
(b) workforce analysis
(c) job analysis
(d) forecasting
Ans. (a)

Q50. What are the major hurdles that require immediate action by HRM for the progress of Indian economy?
(a) Dishonesty and corruption
(b) Lack of interest in work and production loss,
(c) Unemployment and poverty
(d) Combating inflation and holding the price-line of essential commodities.
Ans. (c)

Q51. Who is generally known as “the father of modern management theory”?
(a) Henry Fayol
(b) Frederick W. Taylor
(c) Frank Gilbreth
(d) Chester Bernard
Ans. (a)

Q52. Which of the following is considered the first wage incentive plan in modern industrial era?
(a) Halsey plan
(b) Taylor’s differential piece-rate plan
(c) Barth plan
(d) Gantt Task plan
Ans. (b)

Q53. Concept of MBO was first developed by
(a) Peter Drucker
(b) Douglas McGregor
(c) Henry Fayol
(d) Clayton P. Alderfer
Ans. (a)

Q54. Industrial discipline ordinarily does not imply
(a) observance of company’s rules and regulations
(b) cooperating with management and co-workers
(c) active participation in union activities
(d) smooth discharge of duties and responsibilities
Ans. (c)

Q55. A strike called by a section of workers/union members without authorisation from proper authority of the union is called
(a) sectional strike
(b) jurisdictional strike
(c) wild cat strike
(d) sympathetic strike
Ans. (c)

Q56. Which is a form of participative management?
(a) information-sharing
(b) associative participation
(c) consultative participation
(d) all of the above
Ans. (d)

Q57. Social factor having a potent bearing on HRM practices in India includes
(a) caste system
(b) doctrine of karma
(c) c8ustoms and traditions
(d) all of the above
Ans. (a)

Q58. T&D programme in international HRM should give due attention to
(a) promotion of efficiency of personnel in the host country
(b) understanding of the cultural environment of the host country
(c) improvement of technical expertise
(d) all of the above
Ans. (d)

Q57. International staffing does not give much emphasis on the consideration of
(a) cultural adaptability
(b) global experience
(c) family flexibility
(d) political consciousness
Ans. (d)

Q58. The objectives of workers’ participation in management do not ordinarily include
(a) promotion of collective bargaining
(b) promotion of industrial harmony
(c) promotion of industrial democracy
(d) promotion of productivity
Ans. (a)

Q60. The advantages of staffing from amongst the host country nationals generally do not include
(a) reduction of language barriers
(b) reduction of living cost
(c) greater control over the activities of the organisation
(d) better understanding of host country’s laws and regulations
Ans. (c)

Q61. Which form of participative management promotes “semi-autonomous work-groups”?
(a) quality of work life
(b) quality circle
(c) TQM
(d) quality group
Ans. (c)

Q62. Industrial action generally does not include
(a) strike
(b) lock-out
(c) demonstration
(d) Bandh
Ans. d

Q63. The role of HRD personnel is to –
a. description of entire process / analytical decomposition
b. identification of HRD elements and resources
c. Both (a) + (b)
d. Analytical decomposition only
Ans. (c)

Q64. The primary goal of HRD is –
a. To increase productivity of workers / and organisational profitability
b. Improve workers’ skill and enhance motivation, to prevent obsolesces at all levels
c. prevent obsolescence and increase organisational profitability only
d. Both (a) + (b)
Ans. (d)

Q65. Leadership is the –
a. ability to influence other people
b. ability to create within people an urge to do
c. ability to obtain willing co-operation of the followers
d. All above
e. Only (a) + (b)
Ans. (d)

Q66. A team is evaluated on features like –
a. Co-operation / confrontation avoiding / common objectives
b. Openness of view and unwritten procedure systems
c. Regular review / appropriate leadership
d. All above
e. Both (b) + (c)
Ans. (d)

Q67. For Total Quality Management (TQM) the required qualities are:
a. Understand customer’s current and future needs / leaders establish unity of purpose / involvement of people for organisation’s benefit
b. achievement of desired results when resources and activities are managed as a process and (a) above
c. Mutually beneficial suppliers relationships enhances the ability to create value and (b) also
d. Should have a temporary objective of the organisation
Ans. (c)

Q68. Human due diligence means investigation of –
a. Management team / staff
b. Structure / issues / managerial capacity of a potential partner
c. Both (a) + (b)
d. Financial due diligence
Ans. (c)

Q69. Knowledge management refers for critical issues of
a. Organisational adaptation
b. Survival and competence against discontinuous environmental change
c. Synergistic combination of data and information processing capacity
d. All above
e. Only (a) + (c)
Ans. (d)

Q70. What influences the bank employees’ attitude on work culture?
a. Educational qualification
b. Ownership of bank
c. Location of the branch
d. All above
e. Only (a) + (c)
Ans. (d)

Q71. Discuss the roles of the HR Manager
a. Administrator / evaluator / career development advisor / instructor or facilitator
b. marketing programmes and services / instructor material producer
c. Needs analyst /organisational changer / researcher + (a) above
d. Both (b) + (c)
Ans. (d)

Q72. The objectives of HR audit are –
a. to determine the effectiveness of management programmes
b. analyse the factors and recommend for correcting deviations + (a)
c. extent to which line managers have complied with HRD polices + (b)
d. to study future manpower inventory and identify shortfalls
Ans. (c)

Q73. Employee accountability is strengthens in
a. HR Audit
b. HR Training
c. Succession Planning
d. HR functions
Ans. (a)

Q74. The main barriers of communications are –
a. Organisational + Semantic
b. Personal + psychological + resistance to new ideas
c. Both (a) + (b)
d. Organisational / psychological
Ans. (c)

Q75. Manpower planning consists of –
a. determining the jobs to be done / identifying the skills / estimating the exists likely / filling up the requirements
b. identifying the skills / filling up the requirements
c. Estimating the turnover likely to happen in near future
d. determining the jobs to be done
Ans. (a)

Q76. Promotion is basically a reward for –
a. Efficiency
b. Seniority
c. Physical fitness
d. Retention
Ans. (a)

Q77. What is 360° appraisal?
a. a process that provides an employee opportunity in decision making
b. a process that provides an officer opportunity of feedback about own performance
c. a process that provides an employee with feedback about his / her workplace performance
d. Both (a) + (b)
Ans. (c)

Q78. Role of performance management is to accomplish –
a. Performance needs of the organisation
b. Guide the development of individuals for skill and knowledge
c. Motivate individuals / provide data adopt condition of human capital + (b)
d. All above
Ans. (d)

Q79. Competency Mapping is possible through approaches like –
a. Job analysis / workforce skills analysis / supply and demand analysis
b. Job analysis / Gap analysis / solution analysis
c. Gap analysis / solution analysis + (a)
d. Both (a) + (b)
Ans. (c)

Q80. Human needs have been divided into five categorises under need hierarchy theory. Who invented this theory?
a. McClelland
b. John Atkinson
c. Maslow
d. Herzberg
Ans. (c)

Q81. Key Performance Areas means –
a. Areas which are within the responsibility of the role
b. Areas which the management has demarcated to be performed by employee
c. Areas for strengthening of skills and attitudes
d. All above
Ans. (a)

Q82. Career path planning is affected by –
a. Employee preference
b. Employee requirements
c. Employee preference/employees requirement and structure of the organisation
d. Both (a) + (b)
Ans. (c)

Q83. Phases of performance counselling are –
a. Rapport building / employee should discover own SWOT / action plans, through brainstorming sessions
b. Two way communication / employee be encouraged for their own performance appraisal
c. Organisational objectives are integrated
d. All above
Ans. (a)

Q84. Training method commonly used, for employee in banks is –
a. On the job training
b. Classroom Training
c. Off the job training
d. Vestibule Training
Ans. (b)

Q85. Training evaluation is measured by –
a. Goal based / Goal free / Responsive
b. Systems / professional review / quasi-legal
c. Goal based / systems / responsive
d. Both (a) + (b)
Ans. (d)

Q86. The process of perception is influenced by factors like –
a. Our needs and wants
b. Sensory inability
c. Our stimuli
d. All above
Ans. (d)

Q87. The term industrial relations means –
a. Relationship between Management and Labour
b. Relationship between organisation and employees
c. Relationship that grows out of employment
d. All above
Ans. (d)

Q86. Collective bargaining is a procedure regulated by agreements between their –
a. Bargaining agents and employers
b. Employees and employees
c. Employers and employers
d. Labour officer and Trade unions
Ans. (a)

Q87. Advantages of grievances handling procedure –
a. Management can know employees feelings
b. Employee gets grievances ventilated
c. Keeps a check on supervisor’s attitude
d. Both (b) + (c)
e. All above
Ans. (e)

Q88. How to handle grievances?
a. Grievance in writing / taking to employee directly for speaking truth / ensure confidentiality and handle the case within tie frame
b. Treat each case as important, and obtain grievances in writing / examine company’s position / identify violations / do not hold back the remedy, if the company’s wrong + (a) above
c. Get all the facts (relevant) about the grievance / examine the personnel record of the aggrieved worker / gather information from the union representative properly + (b) above
d. Identify grievance / previous record of the worker / companies’ rules and prompt redressal of grievances, if genuine.
Ans. (c)

Q89. When any discipline becomes ineffective or less-effective?
a. Longer time spending in action
b. Discipline is handled impersonally
c. Aware of rules and performance criteria
d. Only (a) and (b)
Ans. (d)

Q90. Functions of the personnel management can be described as –
a. Managerial
b. Operative
c. Developmental
d. Both (a) + (b)
e. All above
Ans. (d)

Q91. Lockout is a weapon available to –
a. Employees
b. Trade Unions
c. Employers
d. Government
Ans. (c)

Q92. How the conflicts within employers and employees can be settled or prevented?
a. Voluntary method
b. Government Machinery
c. Statutory Measures
d. All above
Ans. (d)

Q93. The word workers participation in management means –
a. Sharing the decision making powers
b. Sharing the decision making with lower results of the employees
c. Sharing the day to day working with higher ranks of persons
d. Sharing the financial decision making powers with representative of workers
Ans. (b)

Q94. What is the role of the trade-union in collective bargaining?
a. To protect jobs and real earnings
b. Better conditions of work life for workers
c. Fighting against any possible, exploitations
d. All above
Ans. (d)

Q95. Which kind of workers participation makes the workers as shareholders of the company?
a. Participation at Board Level
b. Participation through ownership
c. Participation through complete control
d. Participation through work councils
Ans. (b)

Q96. Special allowances are not payable for –
a. Photostat copier Operators
b. Adding machine Operators
c. Addressographs
d. All above
Ans. (d)

Q97. Why grievances should be redressed?
a. Affects the individual
b. Affects the management
c. Collective disputes conversion
d. All above
Ans. (d)

Q98. The employer-employees should have mutual trust / confidence / willingness to settle / respect rights and responsibilities of other party, is covered under –
a. Effective bargaining method
b. Essentials for effective bargaining
c. Types of bargaining
d. Areas of bargaining
Ans. (b)

Q99. Managerial functions, in personnel management can be –
a. Planning / Organising / directing and controlling
b. Recruitment / placement / employment / Development and motivation
c. Compensation / maintenance of health / employers’ welfare
d. Both (a) + (b) only
Ans. (d)

Q100. Discuss unfair management practices –
a. Noncompliance with promotional and transfer policies
b. Smooth handling of grievances
c. Timely payment of wages / salaries
d. Both (b) + (c)
Ans. (a)

Q101. The core elements of HRM are –
(i) People
(ii) Management
(iii) Behavioural Dynamics
(iv) Uniformity of application
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iv
Ans. (d)

Q102. What are the key HRM practices in Indian Organizations?
(i) Job Description
(ii) Recruitment
(iii) Compensation
(iv) Training & Development
(v) Performance Appraisal
(vi) Promotion & reward
(vii)Career Planning
(viii) Gender equity
(a) i, ii, iii, v, vi
(b) iv, vii, viii
(c) only vi
(d) Both (a) and (b)
Ans. (d)

Q103. In a ____________, teams are formed and team members report to two’ or more managers.
(a) Formal Organization
(b) Informal Organization
(c) Matrix Organisation
(d) Divisional Organization
Ans. (c)

Q104.________ refers to the attitudinal and behavioural characteristics of a group and is concerned with how groups form, their structure and process, and how they function,
(a) Group dynamics
(b) Organic structure
(c) Functional Structure
(d) Matrix organization
Ans. (a)

Q105. Benchmarking is
(a) T the process of comparing the business processes & perform­ance metrics including cost, cycle time, productivity to another that is widely considered to be an industry leader
(b) A process in which the organisations evaluate various aspects of their processes in relation to the best practice companies’ proc­esses usually within the peer group defined for the purposes of comparison
(c) Both (a) and (b)
(d) None of the above
Ans. (c)

Q106. Reengineering starts with a —
(a) High-level assessment of the organisation’s mission
(b) Strategic goals
(c) Customer demands
(d) All of the above
Ans. (d)

Q107. Change Management is –
(a) It is a systematic approach in dealing with change from the indi­vidual & organisational level
(b) A gradual process of approach in the workplace due to new poli­cies, technology, or even a new boss
(c) Both (a) and (b)
(d) None of the above
Ans. (c)

Q108. What are the different processes of Discipline Management?
(i) Counselling
(ii) Reformative Theory
(iii) Disciplinary Process
(iv) Disciplinary Procedure & Principles of Natural Justice
(v) Principles of Natural Justice
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iii, iv, v
(d) only ii
Ans. (c)

Q109. _________ involves all the performance monitoring, measurement, management being outsourced from a third party or an external or­ganisation.
(a) Human Resource Outsourcing
(b) Human Resource Management
(c) Human Resource Business Process Outsourcing
(d) Performance Management Outsourcing
Ans. (d)

Q110. Performance Management System is –
(a) A formal, structured system of measuring, evaluating job related behaviours & outcomes to discover reasons of performance & how to perform effectively in future so that the employee, organi­sation & society all benefit
(b) A process of looking both to the future & to the past, in the context of the collective performance of all the employees in an organisation
(c) The process of establishing goals, assessing employees & im­plement the annual performance appraisal process
(d) All of the above
Ans. (d)

Q111. Key Performance Indicators (KPI) is/are –
(a) A specific, agreed measure of achievement within a KRA, which go on to make up the goals and objectives measured under the performance appraisal process.
(b) objective, independent and standardized measures of perform­ance not ratings or judgments of performance
(c) specific, measurable, attainable, realistic & time bound which help to determine how much the KRA’s are met
(d) All of the above
Ans. (d)

Q112. What are the advantages of Incentive Based Compensations?
(i) Incentives are important for inducements and motivation of workers for higher efficiency & greater output
(ii) Increase in employee earnings, results in enhanced standard of living of employees
(iii) Productivity increases & production capacity too, with reduced supervision
(iv) Companies can reduce the burden of fixed costs by keeping a portion of the remuneration as variable
(v) Tendency to bypass quality in pursuit of increased output for higher incentives
(vi) Sometimes employees may disregard security regulations due to payment by results approach adopted for higher incentive figure
(vii) Overworking may affect employee health
(viii) Can demotivate employees not in a position to earn higher in­centive due to sectional differences
(a) i, ii, iii, iv
(b) iii, iv, v, vi
(c) v, vi, vii, viii
(d) All of the above
Ans. (a)

Q113. Human Resource Planning (HRP) process is –
(a) A process, by which an organisation ensures that it has the right number & kind of people at the right place, at the right time, ca­pable of effectively & efficiently completing those tasks that will help the organisation achieve its overall objectives
(b) A process of forecasting an organisation’s future demand for & supply of the right type of people in the right numbers
(c) A sub-system in the total organisational planning & facilitates the realisation of the company’s objectives by providing the right type & right number of personnel
(d) All of the above
Ans. (d)

Q114. Who is responsible to manage change?
(a) Employees
(b) MManagemen
(c) Executives
(d) (b) & (c)
Ans. (d)

Q115. What are the roles of HRD professional?
(i) Planning – includes projections & planning for the skilled matrix of manpower required for the future organisation
(ii) Staffing – providing the competency matrix required to face fu­ture challenges
(iii) Employee Development – identify cost effective & modem methods of training for skill & competency development
(iv) Performance Management – Developing an entire gamut of per­formance linked measures to align individual performance to the overall corporate performance
(v) Employee Rewards – with emphasis on pay for performance & developing an incentive scheme that would reduce fixed costs at the same time being motivating
(vi) Maintaining quality of Work Life & Discipline – with the impact of global workforce it is necessary to develop a linked work-life dis­cipline for all employees in the organisation
(a) i, ii, iii, iv
(b) ii, iii, iv, v
(c) iii, iv, v, vi
(d) All of the above
Ans. (d)

Q116. What are the objectives of HRM?
(i) Societal Objectives
(ii) Organisational Objectives
(iii) Functional Objectives
(iv) Personal Objectives.
(v) Statistical Objectives.
(a) i, ii, iii, iv
(b) ii, iii, iv, v
(c) i, ii, iv, v
(d) All of the above
Ans. (a)

Q117. HRM refers to –
(a) A management function that helps managers to attract, set ex­pectations & develop members for an organization.
(b) A set of programs, functions & activities designed & carried out for maximum efficiency
(c) Both (a) and (b)
(d) None of the above
Ans. (c)

Q118. How can a good employment brand help HR?
(i) Keep ahead in the talent war
(ii) Attract & induce the right kind of people she is looking for
(iii) Enhance her ability to get quality resumes to choose from
(iv) Retain her existing employee pool
(v) Subsequently see a dip in employee turnover
(a) i, ii, iii, iv
(b) i, ii, iii, iv, v
(c) i, ii, iv, v
(d) None of the above
Ans. (b)

Q119. How an Individual Training needs are identified?
(i) Performance Appraisals
(ii) Interviews
(iii) Questionnaires
(iv) Employee Engagement surveys
(v) Training Feedback
(a) i, ii, iii, iv
(b) only iii
(c) i, ii, iv, v
(d) Both (b) and (c)
Ans. (d)

Q120. Job Rotation can be defined as –
(a) Lateral transfer of employees among a number of different posi­tions and tasks within jobs which requires different skills and re­sponsibilities
(b) It helps to understand the different steps into creating a product or delivery
(c) It permits individuals to gain experience in various phases of the business
(d) All of the above
Ans. (d)

Q121. Training & Development together helps in –
(i) Removing performance deficiencies
(ii) Offer Greater stability
(iii) Flexibility & capacity for growth
(iv) Reduces accidents, wastages & damages to machinery
(v) Reduces dissatisfaction, absenteeism & complaints
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iii, iv, v
(d) None of the above
Ans. (c)

Q122. Personnel Management is-
(a) A managerial function of planning, organising, directing, control­ling, and coordinating the operative functions so that their individual objectives and organisational goals are achieved
(b) A function which deals in recruitment, development, compensa­tion, integration, utilisation & maintenance of people
(c) An aspect of relationship between and among the people and is concerned about their well-beings as individuals and as group
(d) All of the above
Ans. (d)

Q123. When does the bargaining process begins?
(a) The charter of demands of the workers are not fulfilled
(b) Discontinuation of services & concerted actions by the workers which results in low output and monetary loss
(c) The employer cannot afford to neglect these actions which re­sults in monetary loss
(d) All of the above
Ans. (d)

Q124. Cause of Genuine Grievance can be –
(a) Discrimination, lost opportunity, Injustice etc. done to the em­ployee
(b) Harmony, Mutual trust & understanding
(c) Reasonable Charter of demands
(d) All of the above
Ans. (a)

Q125. Define the subject matter of Training
(a) Organisations need staff at all levels to be self-sufficient, re­sourceful, creative & autonomous, but they face the challenge in instilling confidence, initiative & problem solving capabilities
(b) Performance & capability are ultimately dependent on people’s attitude and emotional maturity. Helping them to achieve on a personal level provides a platform for trust and emotional con­tracting with the organisation
(c) When people develop confidence, integrity & more knowledge, they automatically become proactive, solution-focused, responsive which has implications across a whole team with multiplying effect
(d) All of the above
Ans. (d)

Q126. __________ consists of the learning opportunities designed to help employees to grow.
(a) Training
(b) Development
(c) Banking operations
(d) None of the above
Ans. (b)

Q127. Joint Management Councils are established in an organisation which employs –
(a) 100 employees
(b) 300 employees
(c) 400 employees
(d) 500 employees or more
Ans. (d)

Q128. ROI Stands for —
(a) Return on Insurance
(b) Return on Investment
(c) Rate on Insurance
(d) Risk on Insurance
Ans. (b)

Q129. Talent Management consist of –
(i) Performance Evaluations to identify potentials
(ii) Psychological testing and assessment to determine capability gaps
(iii) Training & development programmes
(iv) Project work & job experience to accelerate development
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iii, iv
(d) only i
Ans. (c)

Q130. The term “Learning Organisation” means –
(a) People of all Levels, individually or collectively are continually in­creasing their capacity to produce results, they care about
(b) A collective ideal, a vision
(c) It promotes culture of Learning, a community of learners, and it ensures that individual learning enriches & enhances the organi­sation as a whole
(d) All of the above
Ans. (d)

Q131. Line Management is –
(a) Hierarchical chain of command from executive to front-line level in which top management has direct authority
(b) Organised along cross-functional lines, such as employee devel­opment or strategic direction
(c) Both of (a) and (b)
(d) None of the above
Ans. (c)

Q132. _____ is a process of transmission of massage and understanding of information between two or more people, it involves at least two parties – a sender and a receiver.
(a) Body language
(b) Communication
(c) System
(d) None of the above
Ans. (b)

Q133. _________ methods are generally applied on the workplace while em­ployees are actually working.
(a) On the Job training
(b) Off the job training
(c) Both (a) & (b)
(d) None of the above.
Ans. (a)

Q134. Selection is-
(a) A process of picking up individuals with requisite qualifications & competence to fill jobs in the organisation
(b) A process of differentiating between applicants in order to iden­tify & hire those with a greater likelihood of success in a job
(c) Both (a) and (b)
(d) None of the above
Ans. (c)

Q135. Interviews can be —
(a) One-to-one
(b) Panel interview
(c) Sequential Interview
(d) All of the above
Ans. (d)

Financial Management

1.Basic objective of Financial Management is ________________.
A.Maximization of profit.
B.Maximization of share holder's wealth
C.Ensuring Financial discipline in the firm.
D.All of these.
ANSWER: B

2.Financial structure refers to ________________.
A.Short-term resources.
B.All the financial resources.
C.Long-term resources.
D.All of these.
ANSWER: B

3.The market value of the firm is the result of__________.
A. Dividend decisions.
B. Working capital decisions.
C. Capital budgeting decisions.
 D. Trade-off between risk and return.
ANSWER: D

4.Cost of capital is __________________.
A.Lesser than the cost of debt capital.
B.Equal to the last dividend paid to the equity shareholders.
C.Equal to the dividend expectations of equity shareholders for the coming year.
D.None of the above.
ANSWER: D

5.In Walter model formula D stands for _________________.
A. Dividend per share.
B.Direct dividend.
C. Direct earnings.
D. None of these.
ANSWER: A

6.___________ security is known as variable income security.
A.Debentures.
B.Preference shares.
C.Equity shares.
D.None of these.
ANSWER: C

7.Quick asset does not include ____________.
A. Government bonds.
B. Book debts.
C. Advance for supply of raw materials.
D .Inventories.
ANSWER: D

8.Long term finance is required for ______________.
A.Current assets.
B.Fixed assets.
C.Intangible assets.
DNone of these.
ANSWER: B

9.Financial leverage can be measured in ___________________.
A.Stock term.
B.Flow term.
C.Both (a) and (b).
D.None of these.
ANSWER: C

10.Current ratio of a concern is 1, its net working capital will be _________.
A. Positive.
B. Neutral.
C. Negative.
D. None of the above.
ANSWER: C

11.Risk-return trade off implies_____________.
A. Increasing the portfolio of the firm through increased production.
B. Not taking any loans which increases the risk.
C. Not granting credit to risky customers.
D. Taking decision in such a way which optimizes the balance between risk and return.
ANSWER: D

12._____________ is a specific risk factor.
A.Market risk.
B.Inflation risk.
C.Interest rate risk.
D.Financial risk.
ANSWER: D

13._____________ is not a diversifiable or specific risk factor.
A.Company strike.
B.Bankruptcy of a major supplier.
C.Death of a key company officer.
D.Industrial recession.
ANSWER: D

14.Mr.Anil purchased 100 stocks of futura informatics ltd, for Rs.21 on March 15, sold for Rs.35 on March 14 next year. In the company paid a dividend of Rs.2.50 per share, themAnils holding period return is______________.
A.11.90%.
B.45.40%.
C.66.70%.
D.78.60%.
ANSWER: D

15.The 182-day annualized T bills rate is 9%p.a., the return on market is 15% p.a., and the beta of stock B is1.5 the required rate of return from investment in stock B is___________.
A.17% p.a.
B.18% p.a.
C.19% p.a.
D.20% p.a.
ANSWER: B

16.The major benefit of diversification is to____________.
A. Increase the expected return.
B. Increase the size of the investment portfolio.
C. Reduce brokerage commissions.
D. Reduce the expected risk.
ANSWER: D

17.The risk free rate of return is 8% the expected rate of return on market portfolio is15% the beta of eco boards equity stock is 1.4.the required rate on eco boards equity 
is__________________.
A.15.4%.
B.16.8%.
C.17.2%.
D.17.8%.
ANSWER: D

18.________ is concerned with the acquisition, financing, and management of assets with 
some overall goal in mind.
A.Financial management.
B.Profit maximization.
C.Agency theory.
D.Social responsibility.
ANSWER: A

19.__________ is concerned with the maximization of a firm's earnings after taxes
A.Shareholder wealth maximization.
B.Profit maximization.
C.Stakeholder maximization.
D.EPS maximization.
ANSWER: B

20._______________ is the most appropriate goal of the firm.
A.Shareholder wealth maximization.
B.Profit maximization.
C.Stakeholder maximization.
D.EPS maximization
ANSWER: A


21.Which of the following statements is correct regarding profit maximization as the primary goal of the firm?
A.Profit maximization considers the firm's risk level.
B.Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.
C.Profit maximization does consider the impact on individual shareholder's EPS.
D.Profit maximization is concerned more with maximizing net income than the stock price.
ANSWER: D

22.If a company issues bonus shares the debt equity ratio ________________.
A. Remain unaffected.
B. Will be affected.
C. Will improve.
D .None of the above.
ANSWER: C

23.Which of the following is not normally a responsibility of the treasurer of the modern corporation but rather the controller?
A.Budgets and forecasts.
B.Asset management.
C.Investment management.
D.Financial management.
ANSWER: A

24.The __________ decision involves determining the appropriate make-up of the right-hand side of the balance sheet.
A. Asset management.
B. Financing.
C. Investment.
D. Capital budgeting.
ANSWER: B

25.Treasurer should report to _______________.
A. Chief Financial Officer.
B. Vice President of Operations.
C.chief Executive Officer.
D Board of Directors.
ANSWER: A

26.The __________ decision involves a determination of the total amount of assets needed, the composition of the assets, and whether any assets need to be reduced, eliminated, or 
replaced.
A .Asset management.
B. Financing.
C. Investment.
D. Accounting.
ANSWER: C

27.The par value of the stocks and bonds outstanding is termed as ___________________.
A.Capitalization.
B.Multiplication.
C.Outstanding income.
D.Earnings before interest and taxes.


28.According to the text's authors, ___________ is the most important of the three financial 
management decisions.
A.Asset management decision.
B.Financing decision.
C.Investment decision.
D.Accounting decision.
ANSWER: C

29.The __________ decision involves efficiently managing the assets on the balance sheet on a day-to-day basis, especially current assets.
A.Asset management.
B.Financing.
C.Investment.
D.Accounting.
ANSWER: A

30._____________ is not normally a responsibility of the controller of the modern corporation.
A.Budgets and forecasts.
B.Asset management.
C.Financial reporting to the IRS.
D.Cost accounting.
ANSWER: B

31.All constituencies with a stake in the fortunes of the company are known as __________.
A. Shareholders.
B. Stakeholders.
C .Creditors.
D. Customers.
ANSWER: B

32.Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?
A.EPS maximization ignores the firm's risk level.
B.EPS maximization does not specify the timing or duration of expected EPS.
C.EPS maximization naturally requires all earnings to be retained.
D.EPS maximization is concerned with maximizing net income.
ANSWER: D

33.__________ is concerned with the maximization of a firm's stock price.
A.Shareholder wealth maximization.
B.Profit maximization.
C.Stakeholder welfare maximization.
D.EPS maximization.
ANSWER: A

34.Corporate governance success includes three key groups. _____________ represents these 
three groups.
A .Suppliers, managers, and customers.
B. Board of directors, executive officers, and common shareholders.
C. Suppliers, employees, and customers.
D .Common shareholders, managers, and employees.
ANSWER: B

35.In 2 years you are to receive Rs.10, 000. If the interest rate were to suddenly decrease, the 
present value of that future amount to you would __________.
A. Fall.
B. Rise.
C. Remain unchanged.
D. Cannot be determined.
ANSWER: B

36.Interest paid (earned) on both the original principal borrowed (lent) and previous interest 
earned is often referred to as __________.
A. Present value.
B. Simple interest.
C .Future value.
D. Compound interest.
ANSWER: D

37.The long-run objective of financial management is to _____________.
A. Maximize earnings per share.
B. Maximize the value of the firm's common stock.
C. Maximize return on investment.
D. Maximize market share.
ANSWER: B

38.What is the present value of a Rs.1, 000 ordinary annuity that earns 8% annually for an 
infinite number of periods?
A.Rs.80.
B.Rs.800.
C.Rs.1, 000.
D.Rs.12, 500.
ANSWER: D

39.Which one of the following is / are the relevance theory?
A.Gorden.
B.Walter.
C.Residual.
D.Both (a) and (b).
ANSWER: A

40.A set of possible values that a random variable can assume and their associated 
probabilities of occurrence are referred to as __________.
A. Probability distribution.
B .The expected return.
C. The standard deviation.
D. Coefficient of variation.
ANSWER: A

41.The weighted average of possible returns, with the weights being the probabilities of 
occurrence is referred to as __________.
A. A probability distribution.
B. The expected return.
C .The standard deviation.
D. Coefficient of variation.
ANSWER: B

42.___________ on capital gain and  current income may influence form of capital.
A.Legal stipulation.
B.Rate of tax.
C.Capital market condition.
D.Cost of floating.
ANSWER: B

43.The most important and common form of dividend is ________________.
A.Stock dividend.
B.Cash dividend.
C.Bond dividend.
D.Scrip’s dividend.
ANSWER: A

44.________ form of market efficiency states that current security prices fully reflect all 
information, both public and private.
A.Weak.
B.Semi-strong.
C.Strong.
D.Flexible.
ANSWER: C

45.Which form of market efficiency states that current prices fully reflect the historical 
sequence of prices?
A.Weak.
B.Semi-strong.
C.Strong.
D.Flexible.
ANSWER: A

46.______________ form of market efficiency states that current prices fully reflect all 
publicly available information.
A.Weak.
B.Semi-strong.
C.Strong.
D.Flexible.
ANSWER: B

47.__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
A.Financial management.
B.Profit maximization.
C.Agency theory.
D.Social responsibility.
ANSWER: A

48.__________ is the employment of an asset is sources of fund for which the firm has to pay 
a fixed cost or fixed return.
A.Financial management.
B.Profit maximization.
C.Asset management.
D.Leverage.
ANSWER: D

49._____________ is the minimum required rate of earnings or the cut off rate of capital 
expenditure.
A.Cost of capital.
B.Working capital
C.Equity capital.
D.None of the above.
ANSWER: A

50._________________ is a long term planning for financing proposed capital outlay.
A.Capital Budgeting.
B.Budgeting.
C.Cash Budget.
D.Sales Budget.
ANSWER: A

51.Which of the following is the first step in capital budgeting process?
A.Final approval.
B.Screening the proposal.
C.Implementing proposal .
D. Identification of investment proposal.
ANSWER: D

52.The term _________________ refers to the period in which the project will generate the necessary cash flow to recoup the initial investment.
A. Internal return.
B. Payback period.
C. Discounting return.
D. Accounting return.
ANSWER: B

53.A mutually exclusive project can be selected as per payback period when it is _________.
A. Less.
B. More.
C. More than 5 years.
D. None of the above.
ANSWER: A

54.The project can be selected if its profitability index is more than ______.
A.1%.
B.3%.
C.5%.
D.10%.
ANSWER: A

55.Initial outlay 50,000, life of the asset 5 yrs, estimated annual cash flow 12,500, IRR = 
____________.
A.5%
B.6%
C.8%
D.10%
ANSWER: C

56.A project costs Rs, 1,00,000 annual cash flow of Rs. 20,000 for 8 years. Its payback 
period is
______________.
A.1 year.
B.2 years.
C.3 years.
D.5 years.
ANSWER: D

57.X ltd issues rupees 50,000 8% debentures at a discount of 5%. The tax rate is 50% the cost  of debt capital is __________.
A.4%.
B.4.2%.
C.4.6%.
D.5%.
ANSWER: B

58.Cost of the project is 6,00,000 , life of the project is 5 years annual cash flow is 2,00,000 
cut off rate is 10% the discounted pay back period is______________.
A.2 yrs.
B.2 yrs 6 months.
C.3 yrs.
D.3 yrs 9 months.
ANSWER: D

59.To increase the given present value, the discounted rate should be adjusted
A. Upward.
B. Downward.
C. No change.
D. Constant.
ANSWER: B

60.Which form of market efficiency states that current security prices fully reflect all 
information, both public and private?
A.Weak.
B.Semi-strong.
C.Strong.
D.Highly strong.
ANSWER: C

61.Which form of market efficiency states that current prices fully reflect the historical sequence 
of prices?
A.Weak.
B.Semi-strong.
C.Strong.
D.Highly strong.
ANSWER: A

62.________________ is one that maximizes value of business, minimizes overall cost of 
capital, that is flexible, simple and futuristic, that ensures adequate control on affairs of 
business by the owners and so on.
A.Minimal capital structure.
B.Moderate capital structure.
C.Optimal capital structure.
D.Deficit capital structure.
ANSWER: C

63.___________________ refers to make-up of a firm's capitalization. 
A. Capital structure.
B. Capital budgeting.
C. Equity shares.
D. Dividend policy.
ANSWER: A

64._____________ of different sources of capital influences capital structure.
A.Restrictive covenants.
B.Tax advantage.
C.Cost of capital.
D.Trading on equity.
ANSWER: C

65.___________ of debt capital is a factor in favor of using more debt capital.
A.Tax advantage.
B.Debt equity norms.
C.Leverage effect.
D.Security of assets.
ANSWER: A

66.__________ is a payment of additional shares to shareholders in lieu of cash.
A.Stock split.
B.Stock dividend.
C.Extra dividend.
D.Regular dividend.
ANSWER: B

67._______________ such as restriction on business expansion, on raising additional capital,  on declaration of dividend, nominee directors on the board, convertibility clause, etc.
A.Trading on equity.
B.Security of assets.
C.Restrictive covenants.
D.Debt capacity of a business.
ANSWER: C

68.Debt capacity of a business needs _____________.
A.Restriction.
B.Consideration.
C. Leverage.
D.Security
ANSWER: B

68.Financial leverage refers to the rate of change in earnings per share for a given change in earnings
___________________.
A. Before tax.
B. Before interest.
C. Before interest and tax.
D. After interest and tax.
ANSWER: C

70.Security of assets is determining factor for using ________.
A Debt capital.
B. Equity capital.
C. Preference capital.
D .Cost of capital.
ANSWER: A

71..Land at prime locations, modern buildings, machinery in good condition, etc are accepted 
as
__________.
A. Funds.
B. Security.
C .Liquid cash.
D. Debt.
ANSWER: B

72.____________ refers the period between commencement of project construction and first 
commercial operation of the project.
A.Maturity period.
B.Initial period.
C.Gestation period.
D.Growth period.
ANSWER: C

73.Financial risk perception is an influencing factor of _____________.
A. Equity structure.
B. Preference structure.
C. Debt structure.
D. Capital structure.
ANSWER: D

74.____________ bonds are again superior to ordinary bonds in terms of sale ability.
A.Redeemable.
B.Irredeemable.
C.Convertible.
D.Non-convertible.
ANSWER: C
75.__________, roll over, swap early retirement and the like need to be adopted when 
needed.
A.Periodic servicing.
B.Involvement.
C.Responsibility.
D.Investment.
ANSWER: A

76.The risk averse prefers debt instruments, while the risk seekers go for ________.
A. Equity investments.
B. Preference investments.
C. Debt investments.
D. None of these.
ANSWER: A

77.When capital market is booming, firms can take market route to ________.
A. Raise capital.
B. Decrease capital.
C .Stop growing.
D Stagnate.
ANSWER: A

78.__________ is the expected cash dividend that is normally paid to shareholders.
A.Stock split.
B.Stock dividend.
C.Extra dividend.
D.Regular dividend.
ANSWER: C

79.What method of stock repurchase occurs when the buyer seeks bids within a specified 
price range and accepts the lowest price that will allow it to acquire the entire block of 
securities desired?
A.Dutch-auction.
B.Fixed-price.
C.Open-market.
D.Fair-warning.
ANSWER: A

80.The __________ is the proportion of earnings that are paid to common shareholders in the 
form of a cash dividend.
A. Retention rate.
B.1 plus the retention rate.
C. Growth rate.
D. Dividend pay-out ratio.
ANSWER: A

81. A method of budgeting that estimates todays value of money to be received in the future; 
It is discounted due to the uncertainty of its true value in the future and for the cost of the 
capital is______________.
A. Cash inflow. 
B. Cash outflow.
C. Discounted cash flow.
D .Payback period
ANSWER: C

82.The long-run objective of financial management is to ___________.
A. Maximize earnings per share.
B. Maximize the value of the firm's common stock.
C. Maximize return on investment.
D. Maximize market share.
ANSWER: A

83.The field of finance is closely related to the fields of _________.
A. Statistics and economics.
B. Statistics and risk analysis.
C. Economics and accounting.
D. Accounting and comparative return analysis.
ANSWER: C

84.The ultimate measure of performance is _____________.
A. Amount of the firm's earnings.
B .The how the earnings are valued by the investor.
C. The firm's profit margin.
D.Return on the firm's total assets.
ANSWER: B

85.Which of the following are not among the daily activities of financial management?
A.Sale of shares and bonds.
B.Credit management.
C.Inventory control.
D.The receipt and disbursement of funds.
ANSWER: A

86.A main benefit to the corporate form of organization is __________.
A. Double taxation of corporate income.
B. Simplicity of decision making and low organizational complexity.
C. Limited liability for the corporate shareholders.
D. A major management role exists for the firm's owners.
ANSWER: C

87.Capital is allocated by financial markets by _______________.
A. A lottery system between investment dealers.
B. Pricing securities based on their risk and expected future cash flows
C. By pricing risky securities higher than low-risk securities.
D .By a government risk-rating system based on AAA for low risk and CCC for high 
risk.
ANSWER: B

88.The allocation of capital is determined by _________.
A. Expected rates of return.
B. The Bank of Canada.
C .The initial sale of securities in the primary market.
D. The size of the federal debt.
ANSWER: A
89.The mix of debt and equity in a firm is referred to as the firm's _______.
A. Primary capital.
B. Capital composition.
C .Cost of capital.
D. Capital structure.
ANSWER: C

90.The main focus of finance for the last 40 years has been _______.
A. Mergers and acquisitions.
B. Conglomerate firms.
C. Inflation.
D .Risk-return relationships.
ANSWER: A

91.Rate of tax on capital gain and current income may influence form of_________.
A. Equity.
B. Preference.
C. Debt.
D. Capital.
ANSWER: D

92.In finance, "working capital" means the same thing as __________.
A. Total assets.
B. Fixed assets.
C. Current assets.
D. Current assets minus current liabilities.
ANSWER: C

93.In deciding the appropriate level of 
 assets for the firm, management is confronted 
with
_____________.
A. A trade-off between profitability and risk.
B. A trade-off between liquidity and marketability.
C. Atrade-off between equity and debt.
D. Trade-off between current assets and profitability.
ANSWER: A

94.___________ varies inversely with profitability.
A.Liquidity.
B.Risk.
C.Accounts.
D.Trade.
ANSWER: A

95.Permanent working capital ___________.
A. Varies with seasonal needs.
B. Includes fixed assets.
C. Is the amount of current assets required to meet a firm's long-term minimum needs.
D. Includes accounts payable.
ANSWER: C

96.Net working capital refers to ___________.
A.total assets minus fixed assets.
B.current assets minus current liabilities.
C.current assets minus inventories.
D.current assets.
ANSWER: B

97.Earlier a debt equity norm of _______ was generally insisted on by the controller of 
capital issues.
A.1:1.
B.1:2.
C.2:1.
D.2:2.
ANSWER: C

98.The symptom of large inventory accumulation in anticipation of price rise in future will be indicated by ________.
A.Asset turnover ratio.
B.Working Capital turnover ratio.
C. Inventory turnover ratio.
D. All of the above.
ANSWER: C

99.To financial analysts, "gross working capital" means the same thing as ________.
A. Fixed assets.
B. Current assets.
C. Working capital.
D. Cost of capital.
ANSWER: B

100.An example of fixed asset is________.
A.Live stock.
B.Value stock.
C.Income stock.
D.All of the above.
ANSWER: A

Professional and Business ethics, IT and e-business


Professional and Business ethics

1. What is true about a professional
(A) The professional has to have autonomy
(B) He cannot be supervised by the client
(C) He should not subject to political control
(D) All of the above
Answer: All of the above
 
2. The basic rule of professionalism is “not knowingly to do ___ “.
(A) harm
(B) work
(C) competition
(D) copying
Answer: harm

3. The study of ___, as contrasted with legal, obligations is called ethics.
(A) behavior
(B) moral
(C) business
(D) all of the above
Answer: moral

4. Ethics is a conception of ___ conduct.
(A) bad
(B) good
(C) right
(D) right and wrong
Answer: right and wrong

5. Following is(are) type(s) of ethics
(A) Internal
(B) External
(C) Both (A) and (B)
(D) None of the above
Answer: Both (A) and (B)

6. One should ensure one’s employment right to privacy, is a type of
(A) Internal ethics
(B) External ethics
(C) Both (A) and (B)
(D) None of the above 
Answer: External ethics

7. Ethics and ___ go together.
(A) profits
(B) management
(C) worker
(D) all of the above
Answer: profits

8. __ driven companies are always successful in the long run.
(A) management
(B) worker union
(C) value
(D) profit
Answer: value

9. A business needs to be ethical, in order to
(A) Fulfill public expectations for business
(B) Prevent harming others
(C) Improve business relations and employees productivity
(D) all of the above
Answer: all of the above
 
10. Following is(are) type(s) of ethics issue(s)
(A) Functional area ethics
(B) Corporate policy ethics
(C) Face to face ethics
(D) All of the above 
Answer: All of the above

IT and e-business

1. The dimension of e-commerce that enables commerce across national boundaries is called _______.
A. interactivity.
B. global reach.
C. richness.
D. ubiquity.
ANSWER: B
2. E-commerce technologies have improved upon traditional commerce technologies in______.
A. richness.
B. reach.
C. both richness and reach.
D. neither richness nor reach.
ANSWER: C
3. Which one of the following is not one of the major types of e-commerce?
A. C2B.
B. B2C.
C. B2B.
D. C2C.
ANSWER: A
4. Compared to B2C e-commerce, B2B e-commerce is ______.
A. of equal size.
B. slightly smaller.
C. slightly larger.
D. much larger.
ANSWER: D
5. Which of the following is not considered to be one of the three phases of e-commerce?
A. Innovation.
B. Consolidation.
C. Preservation.
D. Reinvention.
ANSWER: C
6. The idealistic market envisioned at the outset of the development of e-commerce is called a ______.
A. Bailey market.
B. Baxter market.
C. Bergman market.
D. Bertrand market.
ANSWER: D
7. The primary source of financing during the early years of e-commerce was _______.
A. bank loans.
B. large retail firms.
C. venture capital funds.
D. initial public offerings.
ANSWER: C
8. The type of firms that benefited the most during the consolidation period of e-commerce were _______.
A. large, traditional firms.
B. first movers.
C. pure online companies.
D. ISPs
ANSWER: A
9. All of the following are technologies used to gather information about you online except ______.
A. spy ware.
B. cookies.
C. Gmail.
D. anonymizers.
ANSWER: D
10. A _________ is the set of planned activities designed to result in a profit in a marketplace.
A. business model.
B. profit model.
C. business plan.
D. revenue model.
ANSWER: A
11. Which of the following is not a key element of a business model?
A. value proposition.
B. competitive advantage.
C. market strategy.
D. universal standards.
ANSWER: D
12. The source of revenue in a subscription revenue model is _____.
A. Fees from advertisers in exchange for advertisements.
B. Fees for business referrals.
C. Fees from subscribers in exchange for access to content or services.
D. Fees for enabling or execution a transaction.
ANSWER: C
13. Which of the following is an example of a portal?
A. Amazon.
B. eBay.
C. Yahoo.
D. Face book
ANSWER: C
14. All of the following are major B2C business models except ______.
A. content provider.
B. industry consortium.
C. transaction broker.
D. service provider.
ANSWER: B
15. The _________ business model involves an independently owned vertical digital marketplace for direct
inputs.
A. e-distributor.
B. exchange.
C. e-procurement.
D. private industrial network.
ANSWER: B
16. Compared to Internet users, the number of cell phone subscribers is _________.
A. about the same.
B. slightly fewer.
C. much fewer.
D. much larger.
ANSWER: D
17. Industry structure is defined as _____.
A. the nature of the players in an industry and their relative bargaining power.
B. a set of plans for achieving long term returns on the capital invested in a business firm.
C. set of planned activities designed to result in a profit in a marketplace.
D. how a company's product or service fulfills the needs of customers.
ANSWER: A
18. The area of actual or potential commercial value in which a company intends to operate is a _______.
A. market space.
B. marketplace.
C. perfect market.
D. Bertrand market.
ANSWER: A
19. A perfect market is one in which _____.
A. One firm develops an advantage based on a factor of production that other firms cannot purchase.
B. One participant in the market has more resources than the others.
C. there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
D. competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.
ANSWER: C
20. Which of the following is not a horizontal portal?
A. AOL.
B. Yahoo.
C. Sailnet.
D. MSN/Windows Live.
ANSWER: C
21. A situation where there are no differences among products or services, and the only basis of choosing products is price is known as ______.
A. a value web.
B. value chain.
C. profit.
D. commoditization.
ANSWER: D
22. A strategy designed to compete in all markets around the globe is called a _____ strategy.
A. scope.
B. differentiation.
C. cost.
D. focus.
ANSWER: A
23. Which of the following is not one of the stages of the development of the Internet?
A. Innovation.
B. Institutionalization.
C. Globalization.
D. Commercialization.
ANSWER: C
24. In 1961, __________ published a paper on "packet switching" networks.
A. Leonard Kleinrock.
B. Ray Tomlinson.
C. Bob Metcalfe.
D. Vint Cerf.
ANSWER: A
25. The component of TCP/IP that provides the Internet's addressing scheme and is responsible for the actual delivery of packets is ______.
A. TCP.
B. IP.
C. the Network Layer.
D. the Application Layer
ANSWER: B
26. Which protocol permits users to transfer files from the server to their client computer, and vice versa?
A. HTTP.
B. SMTP.
C. IMAP.
D. FTP.
ANSWER: D
27. __________ is a program that you can run from the DOS prompt in the Windows operating system in order to check the connection between your client and the server.
A. Ping 
B. Telnet 
C. Tracert 
D. SSL 
ANSWER: A
 28. Broadband is generally considered to be any communication technology allowing streaming audio and video at or above _____.
A. 100 Kbps.
B. 56.6 Kbps.
C. 30 Kbps.
D. 10 Kbps
ANSWER: A
29. Which of the following connections allows the fastest download speeds?
A. DSL.
B. cable modem.
C. T1.
D. T3.
ANSWER: D
30. Which of the following is not a limitation of the current Internet?
A. insufficient capacity throughout the backbone.
B. network architecture limitations.
C. insufficient reach.
D. best-efforts QOS.
ANSWER: C
31. All of the following are goals of Internet2 except ______.
A. Creating a leading-edge very high-speed network capability for the national research community.
B. Eliminating censorship from the Internet.
C. Enabling revolutionary Internet applications.
D. Ensuring the rapid transfer of new network services and applications to the broader Internet community.
ANSWER: B
32. Which of the following is a new and disruptive Web feature or service?
A. XML.
B. diffserv.
C. blogs.
D. CDMA.
ANSWER: C
33. All of the following are examples of 2G wireless phone technologies except _______.
A. CDMA.
B. W-CDMA.
C. TDMA.
D. GSM.
ANSWER: B
34. All of the following are wireless Internet access network technologies except ________.
A. Wi-Fi
B. Bluetooth.
C. Zigbee. 
D. GigaPoP.
ANSWER: D
35. Internet users account for about ________ of the world's population.
A. 7%
B. 17%
C. 27%
D. 47%
ANSWER: B
36. Which of the following was the first commercial Web browser?
A. Mosaic.
B. Mozilla.
C. Netscape Navigator.
D. Internet Explorer
ANSWER: C
37. All of the following are steps in the systems development life cycle except ______.
A. Systems Design.
B. Testing.
C. Implementation.
D. Debugging.
ANSWER: D
38. A _________ describes the flow of information at your e-commerce site and the infrastructure that will be used in the system.
A. system design.
B. logical design.
C. tactical design
D. physical design.
ANSWER: B
39. All of the following are factors in optimizing Web site performance except _____.
A. page retrieval.
B. page generation.
C. page delivery.
D. page content.
ANSWER: A
40. The largest component of a Web site budget is_____.
A. system maintenance.
B. system development.
C. content design and development.
D. telecommunications.
ANSWER: A
41. The dominant Web server software is ______.
A. Zeus.
B. Apache.
C. Microsoft IIS.
D. Google.
ANSWER: B 
42. What Web server functionality allows it verify usernames and passwords and process certificates and encryption information?
A. Processing of HTTP requests.
B. File Transfer Protocol.
C. Data capture.
D. Security services.
ANSWER: D
43. The underlying computing equipment that the system uses to achieve its e-commerce functionality is
called a ______.
A. hardware platform.
B. content platform.
C. transaction platform.
D. scalability platform.
ANSWER: A
44. Redundant navigation refers to _________.
A. pages that work, load quickly, and point the customer toward your product offerings.
B. simple, fool-proof navigation.
C. a site working with the most popular browsers.
D. alternative navigation to the same content.
ANSWER: D
45. The set of standards for communication between a browser and a program running on a server that allows for interaction between the user and the server is known as _______.
A. Active Server Pages (ASP).
B. Java Server Pages (JSP).
C. Common Gateway Interface (CGI).
D. VBScript.
ANSWER: C
46. E-commerce merchant server software includes all of the following except_______.
A. online e-mail.
B. online catalog.
C. online shopping cart.
D. online credit card processing.
ANSWER: A
47. Which of the following is not a widely used midrange or high-end e-commerce suite?
A. Microsoft Commerce Server.
B. WebTrends Marketing Lab2.
C. IBM WebSphere Commerce.
D. Broadvision Commerce.
ANSWER: A
48. The ability to change the product to better fit the needs of the customer is called ________.
A. customization.
B. personalization.
C. privacy.
D. accessibility.
ANSWER: A 
49. All of the following are tools for optimizing a Web site's location in search engine listings except______.
A. keywords and page titles.
B. identifying market niches.
C. buying ads.
D. benchmarking.
ANSWER: D
50. The most common type of Internet crime according to the IC3 is ______.
A. Credit card fraud.
B. Check fraud.
C. Non-delivery.
D. Auction fraud.
ANSWER: D
51. In the e-commerce security environment, which of the following constitutes the inner-most layer?
A. people.
B. data.
C. technology solutions.
D. organizational policies and procedures.
ANSWER: B
52. All of the following are major categories of computer viruses except _____.
A. Macro viruses.
B. File-infecting viruses.
C. Script viruses.
D. Trojan viruses.
ANSWER: D
53. A worm is designed to spread _________.
A. from computer to computer.
B. from file to file on a computer.
C. from Web site to Web site.
D. from Web site to computer
ANSWER: A
54. Malicious hackers who act with the intention of causing harm are__________.
A. White hats.
B. Black hats.
C. Grey hats.
D. Brown hats.
ANSWER: B
55. When hackers flood a Web site with useless traffic to overwhelm the network, it is called ______.
A. phishing.
B. pharming.
C. a Denial of Service (DoS) attack.
D. spoofing.
ANSWER: C
56. Which of the following is not a dimension of e-commerce security provided by encryption?
A. availability.
B. message integrity.
C. nonrepudiation.
D. confidentiality.
ANSWER: A
57. The most widely used encryption standard is ______.
A. Advanced Encryption Standard (AES).
B. Data Encryption Standard (DES).
C. Universal Encryption Standard (UES).
D. Optimal Encryption Standard (OES).
ANSWER: A
58. The most common form of securing channels is through ______.
A. S-HTTP.
B. VPNs.
C. SSL.
D. PPTP.
ANSWER: C
59. Firewalls perform all of the following functions except ______.
A. Forbids communications from untrustworthy sources.
B. Allows communications from trustworthy sources.
C. Eliminates viruses and other malicious attacks.
D. Filters traffic based on packet attributes.
ANSWER: C
60. A security plan begins with a(n) is ______.
A. security policy.
B. risk assessment.
C. implementation plan.
D. security organization.
ANSWER: B
61. The only payment system that is instantly convertible without intermediation is _______.
A. Credit card.
B. Accumulating balance.
C. Stored value.
D. Cash.
ANSWER: D
62. The most prevalent online payment method is ______.
A. PayPal.
B. checks.
C. credit cards.
D. debit.
ANSWER: C
63. What is the name of the division of the U.S. Department of Homeland Security that coordinates cyber incident warnings and responses across government and private sectors?
A. US-CERT.
B. OECD.
C. IC3.
D. P3P.
ANSWER: A
64. After sending e-mail, which of the following activities is most common among Internet users?
A. sending instant messages.
B. reading someone else's blog.
C. using a search engine to find information.
D. getting news.
ANSWER: C
65. __________ influence the behavior of others through their personality, skills, or other factors.
A. Opinion leaders.
B. Direct reference groups.
C. Indirect reference groups.
D. Lifestyle groups.
ANSWER: A
66. All of the following are reasons more people don't shop online except ________.
A. lack of trust in online merchants.
B. lack of convenience.
C. inability to touch and feel the product.
D. fear of misuse of personal information.
ANSWER: B
67. A good or service for which there are many dealers supplying the same product, and all products in the segment are essentially identical is known as _______.
A. commodity.
B. core product.
C. actual product.
D. augmented product.
ANSWER: A
68. Complete price transparency in a perfect information marketplace is necessary for ____________ to take effect.
A. Bertrand's Law.
B. the Law of Universal Prices.
C. the Law of One Price.
D. the Law of Perfect Commerce.
ANSWER: C
69. A(n) _________ represents data as two-dimensional tables with records organized in rows and attributes in columns.
A. database management system.
B. data warehouse.
C. SQL query.
D. relational database.
ANSWER: D
 70. All of the following are types of data mining except ______.
A. selective data mining.
B. query-driven data mining.
C. model-driven data mining.
D. rule-based data mining.
ANSWER: A
71. Which of the following market entry strategies are the most common for existing firms?
A. first mover
B. fast follower.
C. brand extender.
D. alliances.
ANSWER: C
72. The process of getting customers to pass along a company's marketing message to friends, family, and colleagues is known as _______.
A. affiliate marketing.
B. viral marketing.
C. permission marketing.
D. blog marketing.
ANSWER: B
73. The per-product price consumers are willing to pay for a bundle ____________ as the number of goods in the bundle increases.
A. decreases.
B. increases.
C. varies from product to product.
D. stays the same.
ANSWER: B
74. Creating multiple versions of information goods and selling essentially the same product to different
market segments at different prices is called_______.
A. versioning.
B. bundling.
C. transactive content.
D. price discrimination.
ANSWER: A
75. All of the following are examples of intelligent agent technology except ________.
A. automated response systems.
B. automatic shipping confirmation.
C. order status reports.
D. online web bugs.
ANSWER: D
76. E-business can be defined as_______.
A. the uninhibited flow of information and goods on the Web. 
B. the use of the Internet and the Web to transact business.
C. digitally enabled transactions and processes within an organization.
D. commercial transactions involving electronic goods.
ANSWER: C
77. The set of applications and technologies that allow users to create, edit, and distribute content online is known as______.
A. Internet.
B. social networking.
C. virtual life.
D. Web 2.0.
ANSWER: D
78. Which of the following represents a limiting factor for the growth of e-commerce?
A. Persistent cultural attraction of physical markets and traditional shopping experiences.
B. Inadequate selection of goods compared to physical marketplaces.
C. E-commerce lacks the convenience of other methods of transacting business.
D. The potential audience for e-commerce is too low to support it as a widespread method of commerce.
ANSWER: A
79. The fastest growing form of online advertising is _________.
A. banner ads.
B. pop-up ads
C. rich media/video ads.
D. pop-under ads.
ANSWER: C
80. All of the following are among the most common categories of spam except ______.
A. fraud.
B. commercial products.
C. finance.
D. health (drugs).
ANSWER: A
81. All of the following are types of social marketing except ______.
A. affiliate marketing.
B. blog advertising
C. social network advertising.
D. game advertising.
ANSWER: A
82. Which of the following measures the percentage of people exposed to an online advertisement who actually click on the banner?
A. impression rate.
B. view-through rate.
C. click-through rate.
D. stickiness ratio.
ANSWER: C
83. Which of the following is a measure of the percentage of purchasers who return to a Web site within a year?
A. loyalty.
B. reach.
C. recency
D. unique visitors.
ANSWER: A
84. All of the following are metrics for e-mail campaigns except ______.
A. open rate.
B. delivery rate.
C. bounce-back rate.
D. cart conversion rate.
ANSWER: D
85. As consumers become more accustomed to new online advertising formats, click-through rates tend to ______.
A. remain constant.
B. decrease.
C. increase.
D. rapidly increase.
ANSWER: B
86. The ethical principle which states that if an action is not right for all situations, then it is not right for any situation is known as ______.
A. The Golden Rule.
B. Slippery Slope.
C. No Free Lunch.
D. Universalism.
ANSWER: D
87. Which of the following statements about privacy is true?
A. It is a moral right to be left alone.
B. Only corporations and government need to be concerned about it.
C. It has only just recently become a concern.
D. It is most easily obtained on the Internet.
ANSWER: A
88. The ability of consumers to review and contest the accuracy and completeness of data collected about them involves which of the following FTC fair information practice principles?
A. Security.
B. Enforcement.
C. Choice/Consent.
D. Access/Participation.
ANSWER: D
89. The __________ is the first major effort to adjust the copyright laws to the Internet age.
A. Platform for Privacy Preferences (P3P).
B. Center for Democracy and Technology.
C. Digital Millennium Copyright Act (DMCA).
D. E-Government Act of 2002.
ANSWER: C
90. A patent grants the owner an exclusive monopoly on the ideas behind the invention for ______ years.
A. 10
B. 20
C. 30
D. 40
ANSWER: B
91. The number of business methods patents granted is ___________ compared to the number of patents applied for.
A. substantially smaller.
B. slightly smaller.
C. close to equal.
D. equal.
ANSWER: A
92. The redirection of traffic from a legitimate site to an infringing site is called _______.
A. cybersquatting.
B. cyberpiracy.
C. metatagging.
D. keywording.
ANSWER: B
93. During which period of Internet governance was Network Solutions given a monopoly to assign and
track high-level domains?
A. Government Control Period.
B. Privatization.
C. Self-Regulation.
D. Governmental Regulation.
ANSWER: B
94. The taxation system for e-commerce sales is best described as ______.
A. complex.
B. streamlined.
C. universal.
D. standardized.
ANSWER: A
95. All of the following are acts Congress has passed or attempted to pass to protect children online except______.
A. Video Privacy Protection Act.
B. Children's Online Protection Act.
C. Communications Decency Act.
D. Children's Internet Protection Act.
ANSWER: A
96. Which of the following is a privacy advocacy group that is a foundation- and business-supported group with a legislative focus?
A. Cdt org.
B. Privacy International org.
C. Epic org.
D. Privacy org  
ANSWER: A 
97. What is the first step in a P3P-enabled transaction?
A. send Web page.
B. http GET request Web page.
C. Send P3P policy files.
D. http GET request P3P policy files.
ANSWER: B
98. All of the following are types of intellectual property protection except_______.
A. patents.
B. trademarks.
C. governance.
D. copyrights.
ANSWER: C
99. All of the following are challenges to online retail except ______.
A. Consumer concerns about the security of transactions.
B. Consumer concerns about the privacy of personal information given to Web sites.
C. Delays in delivery of goods when compared to store shopping.
D. Inability to change prices nearly instantly.
ANSWER: D
100. Which of the following is an industry strategic factor that relates to whether new entrants face a disadvantage when attempting to enter an industry?
A. barriers to entry
B. power of suppliers.
C. power of consumers.
D. industry value chain.
ANSWER: A
101. Companies that have a network of physical stores as their primary retail channel, but also have introduced online offerings are called ______.
A. Virtual merchants.
B. Bricks and clicks.
C. Catalog merchants.
D. Manufacturer-direct.
ANSWER: B
102. Products are made to prior to orders received based on estimated demand under a ______.
A. supply-push model.
B. demand-push model.
C. supply-pull model.
D. demand-pull model.
ANSWER: A
103. The major impact of Internet real estate sites is in ______.
A. completing property transactions online.
B. influencing offline decisions
C. reducing commissions.
D. e-mail marketing to consumers.
ANSWER: B
104. Which of the following is the largest online travel service?
A. Travelocity.
B. Orbitz.
C. Priceline.
D. Expedia.
ANSWER: D
105. Which of the following is not one of the top three online career service providers?
A. CareerBuilder.
B. Monster.
C. HotJobs.
D. USAJobs.
ANSWER: D
106. The largest segment in the recruitment business is_____.
A. General job recruitment.
B. Executive search.
C. Specialized job placement services.
D. Managerial recruitment
ANSWER: A
107. The majority of job seekers rely on which of the following?
A. Word-of-mouth leads.
B. Employment agencies.
C. Internet and newspapers equally.
D. Internet only.
ANSWER: C
108. The most popular type of media in terms of total hours of consumption per year is _____.
A. television.
B. radio.
C. Internet.
D. newspaper.
ANSWER: A
109. Which of the following describes paid content's relation to free user-generated content?
A. Free content jeopardizes paid content
B. Paid content jeopardizes free content
C. Free content and paid content can both work in tandem cooperatively.
D. Paid content is viable now but will not be in the future.
ANSWER: C
110. The top U.S online video site is  ______.
A. MySpace.
B. YouTube.
C. AOL.
D. Google Video.
ANSWER: B
111. Which of the following is not a type of media convergence?
A. technological convergence.
B. content convergence.
C. industry convergence
D. community convergence.
ANSWER: D
112. The online content revenue model in which free content drives offline revenues is called the ______.
A. marketing model.
B. advertising model.
C. pay-per-view model.
D. subscription model.
ANSWER: A
113. The combination of technical and legal means for protecting digital content from unlimited reproduction without permission is known as _____.
A. Digital rights management.
B. Digital protection schemes.
C. Digital distribution regulation.
D. Digital rights protection.
ANSWER: A
114. What is the most commonly offered interactive feature of newspaper Web sites?
A. video.
B. comments on blogs.
C. RSS feeds.
D. podcasts.
ANSWER: C
115. Which of the following is an advantage of e-books?
A. reduced transaction costs for the user.
B. requirement of expensive devices to use.
C. portability compared to print books.
D. copyright management.
ANSWER: A
116. After television, the next largest major player in the commercial entertainment industry is ______.
A. video games.
B. music.
C. radio.
D. film.
ANSWER: D
117. Which of the following is not an entertainment industry value chain model?
A. content owner direct model.
B. user distribution model.
C. aggregator model.
D. Internet innovator model.
ANSWER: B
118. Technologies that help enhance resolution of e-book reader display screens are known as ______.
A. high-res pixel formatting.
B. screen resolution technologies.
C. sub-screen smoothing technologies.
D. sub-pixel display technologies.
ANSWER: D
119. All of the following are characteristics of a social network except _______.
A. involves a group of people.
B. features shared social interaction.
C. always feature shared goals and purposes.
D. common ties among members.
ANSWER: C
120. Social networking sites primarily earn their revenue through ______.
A. advertising.
B. subscriptions.
C. donations.
D. service fees.
ANSWER: A
121. The type of social network described as a community built around a common interest such as games, sports, music, and so on is called _____.
A. general community.
B. practice network.
C. affinity community.
D. interest-based social network.
ANSWER: D
122. Auction sites like eBay tend to use _______ pricing.
A. dynamic.
B. fixed.
C. trigger.
D. utilization.
ANSWER: A
123. Which of the following is not considered to be a drawback of Internet auctions?
A. market inefficiency.
B. trust risks.
C. fulfillment costs.
D. delayed consumption costs.
ANSWER: A
124. The marketplace for auction sites is best described as _____.
A. many sites attaining similar levels of profitability.
B. easy to enter due to minimal barriers.
C. populated mostly with small, thriving specialty sites.
D. dominated by a handful of sites with established networks.
ANSWER: D
125. A dynamically priced market that features few buyers and many sellers is a market that exhibits ______.
A. market neutrality.
B. buyer bias.
C. seller bias.
D. owner bias.
ANSWER: B
126. The most popular type of auction on eBay is the ______.
A. Dutch Internet auction.
B. Name Your Own Price auction.
C. English auction.
D. Professional service auction.
ANSWER: C
127. Which of the following is not a primary function of a portal?
A. navigation of the Web.
B. social networking.
C. commerce.
D. content.
ANSWER: B
128. Which portal business model best describes Yahoo?
A. general purpose portal.
B. affinity group based vertical market.
C. focused content based vertical market.
D. none of the above.
ANSWER: A
129. Which of the following portal revenue models involves charging for premium content?
A. ISP services.
B. General advertising.
C. Subscription fees.
D. Tenancy deals.
ANSWER: C
130. Which of the following best describes predicted growth in C2C and B2C auction spending?
A. B2C spending will overtake C2C spending.
B. Both types of spending will increase.
C. C2C spending will decrease while B2C increases.
D. Both types of spending will decline at similar rates.
ANSWER: B
131. An auction that has multiple winners that all pay the same price is an example of________.
A. uniform pricing.
B. discriminatory pricing.
C. bid rigging.
D. price matching.
ANSWER: A
132. The communication standard for sharing business documents and settlement information that emerged
in the 1970s is called_____.
A. ECD.
B. EDI.
C. IDE.
D. BCB.
ANSWER: B
133. All of the following are potential benefits of B2B e-commerce except_________.
A. reduced amount of 'first-mover' advantages.
B. decreased product cycle time.
C. increased opportunities for collaborating with suppliers and distributors.
D. increased production flexibility.
ANSWER: A
134. Goods directly involved in the production process are known as _____.
A. MRO goods.
B. procured goods.
C. indirect goods.
D. direct goods.
ANSWER: D
135. A materials requirements planning (MRP) system is an example of ______.
A. spot purchasing.
B. a multi-tier supply chain.
C. a legacy computer system.
D. electronic data interchange.
ANSWER: C
136. The foundation for contemporary supply chain management systems includes all of the following  except _____.
A. supply chain simplification.
B. continuous inventory replenishment.
C. ERP systems.
D. B2B electronic storefronts.
ANSWER: D
137. The two main types of Internet-based B2B commerce are______.
A. Net marketplaces and private industrial networks.
B. EDI and collaborative commerce.
C. Net marketplaces and collaborative commerce.
D. EDI and private industrial networks.
ANSWER: D
138. The type of Net marketplace characterized by indirect inputs and spot purchasing is called an_______.
A. industry consortium.
B. independent exchange.
C. e-distributor.
D. e-procurement marketplace.
ANSWER: C
139. The most common and easily understood type of Net marketplace is ______.
A. e-procurement marketplace.
B. e-distributors.
C. industry consortia.
D. independent exchanges.
ANSWER: B
140. All of the following are objectives of private industrial networks except ________.
A. developing efficient purchasing and selling business processes industry-wide.
B. operating on a local scale.
C. creating increased supply chain visibility.
D. reducing industry risk.
ANSWER: B
141. _____________ are networks that connect people within a company to each other and to the company network.
A. Bitstreams.
B. Extranets.
C. Internets.
D. Intranets.
ANSWER: D
142. _______________ is the encompassing term that involves the use of electronic platforms - intranets, extranets and the Internet - to conduct a company's business.
A. E-marketing.
B. E-business
C. E-procurement.
D. E-commerce.
ANSWER: B
143. Which of the following is not one of the benefits of e-commerce to sellers?
A. E-commerce offers greater flexibility in meeting customer needs.
B. E-commerce is a powerful tool for customer relationship building.
C. E-commerce can help to reduce costs.
D. E-commerce increases the net cost per contact.
ANSWER: D
144. The E-commerce domain that involves business activity initiated by the consumer and targeted to businesses is known as ______.
A. Business to Business (B2B).
B. Consumer to Consumer (C2C).
C. Consumer to Business (C2B).
D. Business to Consumer (B2C).
ANSWER: C
145. A _________ is a B2B trading network that links a particular seller with its own trading partners.
A. bitstream.
B. virtual network.
C. web community.
D. private trading network.
ANSWER: D
146. The type of website that is designed to build customer goodwill and to supplement other sales channels rather then sell the company's products directly is known as a ______________ website.
A. marketing.
B. click-and-mortar.
C. customer service.
D. corporate.
ANSWER: D
147. When preparing a website, designers should ensure that the site enables user-to-user communication. This design feature is known as ___________.
A. context.
B. community.
C. commerce.
D. connection.
ANSWER: B
148. ______________ marketing is the Internet version of word-of-mouth marketing.
A. Visceral.
B. Virile.
C. Viral.
D. Virtual.
ANSWER: C
149. Why would a merchant want to customize products?
A. To charge a higher price.
B. To decrease costs.
C. It is required in EC.
D. Customers will only accept customized products.
ANSWER: A
150. A website offering content created by third party transparently to customers is an example of ______.
A. Reintermediation.
B. Syndication.
C. Virtual Manufacturing.
D. Build-to-order.
ANSWER: B

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