Technical Knowledge or Domain Knowledge or Subject Knowledge are three different words used interchangeably which a particular students acquire in one’s life when they start their study from Class – Nursery till PHD (For Example: Subject Knowledge on Math/Science/SST/GK/ English/Computer/Management/Soft Skills etc. is known as Technical or Domain Knowledge or Expert or Specialist etc).
MOCK TEST ON MARKETING MANAGEMENT (PAPER – I)
Total Time: 30 Minutes Total Marks: 25
Total Questions: 25 Cut off – 60%
Note: All questions carry equal marks and there are 100% negative marking (for each wrong answer 1 Marks will be deducted – NO ‘Blind’ Guessing)
Multiple Choice Questions
Q 1.Which among the following is oldest variable of market segmentation?
A. Geography
B. Demography
C. Psychography
D. General Lifestyle
E. Sociomapping
Q 2.Which among the following helps a marketer to help the product occupy a distinct and valued place in the target customer\'s mind?
A. Pricing
B. Promotion
C. Positioning
D. Advertisement
E. Display
Q 3.\"Terms & Conditions\" is a sub element of which of the 4Ps of marketing?
A. Product B. Price
C. Place D. Promotion
E. None of them
Q 4.Which among the following provides \"core benefits\" ?
A. Generic product
B. Expected product
C. Augmented product
D. Potential Product
E. Branded product
Q 5.Which among the following is not a quality of Banking Service?
A. Intangible B. perishable
C. inseparable D. customizable
E.Ownership
Q 6.In marketing reduction in the sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer is called as?
A. Decoy effect
B. Co-marketing
C. Cannibalization
D. Cross merchandising
E.Complex sales
Q 7.The Unilever\'s products Rin Bar, Wheel Bar, Rin Powder, Wheel Powder , Surf and Surf excel can be kept in which of the following?
A. Product Line
B. Product Mix
C .Product Items
D. Product bundling
E. Product Index
Q 8.The Unilever\'s products Rin Bar, Le sancy Soap, Close up toothpaste, Ponds talcum Powder and Lakme cream can be kept in which of the following categories?
A. Product Line
B. Product Mix
C. Product Bundling
D.Product Items
E. Product Index
Q 9.In which stage of the product Life Cycle (PLC) the Profits are low / negligible?
A. Introduction,
B. Growth
C. Maturity
D. Decline
E. none of the above
Q 10.Emphasis should be laid down on which of the following in the Introduction phase of Product Life Cycle?
A. Profits
B. Cash Inflows
C. Market establishment
D. Distribution Strategy
E. Market Segmentation
Q 11.Which among the following involves Physical means of carrying goods?
A. Transportation
B. Warehousing
C. Merchandising
D. Communication
E. Distribution Channel
Q 12.Which among the following does not come under \"packaging\"?
A. Containers
B. Wrappers
C. Bottles
D. Cartoons
E. Instructions for use
Q 13.Date of Production, Date of expiry, precautions, legal warnings etc. come under which of the following?
A. Social Stigma
B. Advertising
C. Labeling
D. Packaging
E. None of the above
Q 14.In which of the following departments the information from Marketing Department flows directly to ?
A. Production Department
B. Purchase Department
C. Human Resource Department
D. Security Department
E.Production and Purchase Department
Q 15.Which among the following is increased by \"Marketing Research\”?
A.Nominal Cost
B. Real Cost
C.Marginal Cost
D. Revenue
E.Profits
Q 16.Which among the following is ultimate outcome of \"Increase in Sales\”?
A.Sales price
B. Purchase Price
C. Total Cost
D. Distribution Cost
E. National Income
Q 17.Which among the following is the ultimate aim of \"Relationship Marketing\"?
A. Increased Sales B. Increased Profits
C. Increased number of customers D. Increased Cross Selling
E. Decrease marginal cost
Q 18.Which among the following is not an essential of \"Effective Marketing \" ?
A. motivation B. communication skills
C. empathy D. sympathy
E. perseverance
Q 19.Which among the following can be marketed to HNI group of individuals?
A. Essential Commodities
B. Luxury Goods
C. Low cost Substitutes
D.Potential Goods
E.Core products
Q 20.A \'Lead\' in marketing means ----?
A. Prospective Buyer
B. Market Leader
C. Point of Sales
D. A company available for sale
E. None of the above
Q.21. Cross selling is very effective in the sale of one of the following -
(1) Debit - Card
(2) Credit- Cards
(3) Internal- Banking
(4) Auto Loan
(5) All of these
Q.22. Target market for debit card is -
(1) All existing account holder
(2) All sales persons
(3) All NRI’s
(4) All HNI’s
(5) All of these
Q.23. SME means -
(1) Small and medium enterprises
(2) Small scale marketing entities
(3) Small & medium establishments
(4) None of these
Q.24. “Out-sourcing means service rendered by -
(1) Outside agencies
(2) Other departments of the company
(3) Employees other than the sales person
(4) Marketing department
(5) None of these
Q.25. Sales promotion involves, the incorrect option-
(1) Building product awareness (2) Creating interest
(3) Providing Intonation (4) Designing new product
(5) None of these
Answers for Mock Test on MM (Paper – I)
1. A
2. C
3. B
4. A
5. E
6. C
7. A
8. B
9. A
10. C
11. A
12. E
13. C
14. E
15. E
16. E
17. D
18. D
19. B
20. A
21.(5)
22.(1)
23.(1)
24.(1)
25.(4)
MOCK TEST ON OM & SCM (PAPER – I)
Total Time: 30 Minutes Total Marks: 25
Total Questions: 25 Cut off – 60%
Note: All questions carry equal marks and there are 100% negative marking (for each wrong answer 1 Marks will be deducted – NO ‘Blind’ Guessing)
Multiple Choice Questions
Question 1:- For which of the following operations would a fixed-position layout be most appropriate?
a) assembly of an automobile
b) production of TV sets
c) construction of a ship
d) refining of crude oil
Question 2:- The five elements in the management process are
a) Plan, direct, update ,lead and supervise
b) Accounting/finance, marketing, operations and management
c) Organize ,plan ,control ,staff and manage
d) Plan, Lead , Organize, Manage and Control
Question 3:- The responsibilities of the operations manager include
a) Planning,Organizing ,Staffing ,Procuring and Reviewing
b) Forecasting ,Designing ,Planning ,Organizing and Controlling
c) Forecasting ,Designing, Operating ,procuring and reviewing
d) Planning ,Organizing ,Staffing ,Leading and Controlling
Question 4:- Which of the following is not an element of the management process
a) Pricing
b) Staffing
c) Planning
d) Controlling
Question 5:- A good layout requires determining
a) material handling requirements
b) capacity and space requirements
c) environment and aesthetics
d) All of the above
Question 6:- An operations manager is not likely to be involved in
a) The design of products and services to satisfy customers wants and needs
b) The quality of products and services to satisfy customers wants and needs
c) The identification of customers wants and needs
d) Work scheduling to meet the due dates promised to customers
Question 7:- All of the following decisions fall within the scope of operations management except for
a) Financial analysis
b) Design of products and processes
c) Location of facilities
d) Quality management
Question 8:- Which of the following are the primary functions of all organizations
a) Operations ,marketing and human resources
b) Marketing, Human resource and Finance /Accounting
c) Sales , Quality control, and operations
d) Marketing ,Operations and Finance /Accounting
Question 9:- Current trends in operations management include all of the following except
a) Just- in- time performance
b) Rapid product development
c) Mass customization
d) Empowered employees
Question 10:- Productivity measurement is complicated by
a) The competition's output
b) The fact that precise units of measure are often unavailable
c) Stable quality
d) The workforce size
Question 11:- which of the following is true about business strategies?
a) An organization should stick with its strategy for the life of the business.
b) All firms within an industry will adopt the same strategy.
c) Well defined missions make strategy development much easier.
d) Strategies are formulated independently of SWOT analysis.
Question 12:- The fundamental purpose for the existence of any organization is described by its
a) policies
b) mission
c) procedures
d) strategy
Question 13:- Which of the following activities takes place once the mission has been developed?
a) The firm develops alternative or back-up missions in case the original mission fails.
b) The functional areas develop their functional area strategies.
c) The functional areas develop their supporting missions.
d) The ten OM decision areas are prioritized.
Question 14:- Which of the following statements about organizational missions is false?
a) They reflect a company's purpose.
b) They indicate what a company intends to contribute to society.
c) They are formulated after strategies are known.
d) They define a company's reason for existence.
Question 15:- The impact of strategies on the general direction and basic character of a company is
a) short ranged
b) medium range
c) long range
d) temporal
Question 16:- The fundamental purpose of an organization's mission statement is to
a) create a good human relations climate in the organization
b) define the organization's purpose in society
c) define the operational structure of the organization
d) generate good public relations for the organization
Question 17:- Forecasts
a) become more accurate with longer time horizons
b) are rarely perfect
c) are more accurate for individual items than for groups of items
d) all of the above
Question 18:- One purpose of short-range forecasts is to determine
a) production planning
b) inventory budgets
c) research and development plans
d) job assignments
Question 19:- Forecasts are usually classified by time horizon into three categories
a) short-range, medium-range, and long-range
b) finance/accounting, marketing, and operations
c) strategic, tactical, and operational
d) exponential smoothing, regression, and time series
Question 20:- A forecast with a time horizon of about 3 months to 3 years is typically called an
a) long-range forecast
b) medium-range forecast
c) short-range forecast
d) weather forecast
Question 21:- Forecasts used for new product planning, capital expenditures, facility location or expansion, and R &D typically utilize a
a) short-range time horizon
b) medium-range time horizon
c) long-range time horizon
d) naive method, because there is no data history
Question 22:- The three major types of forecasts used by business organizations are
a) strategic, tactical, and operational
b) economic, technological, and demand
c) exponential smoothing, Delphi, and regression
d) causal, time-series, and seasonal
Question 23:- A location decision for an appliance manufacturer would tend to have a(an)
a) cost focus
b) labor focus
c) revenue focus
d) environmental focus
Question 24:- The two general approaches to forecasting are
a) qualitative and quantitative
b) mathematical and statistical
c) judgmental and qualitative
d) historical and associative
Question 25:- Which of the following uses three types of participants: decision makers, staff personnel and respondents?
a) executive opinions
b) sales force composites
c) the Delphi method
d) consumer surveys
Answers for Mock Test on OM&SCM (Paper – I)
1. C
2. D
3. D
4. A
5. D
6. C
7. A
8. D
9. C
10. B
11. C
12. B
13. C
14. C
15. C
16. B
17. B
18. D
19. A
20. B
21. C
22. B
23. A
24. A
25. C
MOCK TEST ON OB & HRM (PAPER – I)
Total Time: 30 Minutes Total Marks: 25
Total Questions: 25 Cut off – 60%
Note: All questions carry equal marks and there are 100% negative marking (for each wrong answer 1 Marks will be deducted – NO ‘Blind’ Guessing)
Multiple Choice Questions
Q1. What is meant by the term 'management by objectives'?
a. A system of giving the authority to carry out certain jobs by those lower down the management hierarchy
b. The system of management that is based on bringing together experts into a team
c. The setting of objectives to bring about the achievement of the corporate goals
d. The control of the organization by those in the 'head office'
Q2. A manager may delegate any of the following except:
a. Authority
b. Workload
c. Responsibility
d. attendance at meetings to represent the department
Q3. Workforce planning involves all of the following except:
a. Organizing the training of staff
b. forecasting future personnel requirements
c. examining production plans in a factory
d. preparing and maintaining personnel records
Q4. Maslow, in his triangle of human needs, showed that
a. having challenging new tasks is a basic human need
b. money always motivates workers
c. safety and security is a low order human need
d. workers will not give of their best unless they have good social events provided by the firm
Q5. Piecework is a payment system where the worker is”
a. paid overtime for any hours worked beyond 25 per week
b. rewarded for good conduct
c. is paid a minimum of £4.20 per hour
d. is paid for what he or she achieves
Q6. Which of the following will NOT result following the introduction of a more decentralized system of management?
a. Increased motivation amongst those empowered to make decisions
b. Greater consistency in the decisions made
c. The development of skills amongst the junior members of the management team
d. An increase in the speed at which essential decisions are made
Q7. An advantage of recruitment from outside the company is
a. that it is cheaper than internal recruitment
b. that there is no need to advertise the vacancy
c. that it brings in new experience and skills to the firm
d. that it avoids jealousy within the firm
Q8. When designing his hierarchy of needs triangle Maslow did NOT include one of these. Was it?
a. Good wages and salaries and working conditions
b. The need to feel secure at work with adequate financial rewards such as pensions to assist one later in life
c. The need to build a career path
d. Opportunities for team working and social events that allow a sense of belonging to emerge
Q9. When deciding on objectives for management it is advised that companies should aim to achieve 'SMART' within these. Which of the following is NOT part of the SMART scheme?
a. The need to be Specific in the choice of objectives
b. The need to make objectives Tangible
c. All objectives must be Measurable
d. For personnel to feel capable of reaching objectives they must be Achievable
Q10. Which of the following is a reason for introducing a matrix management system?
a. Because it allows for an easily understood functional responsibility chart to designed
b. The management can increase the use of delegation within the organization
c. The senior management wants to develop a clearly defined set of responsibilities
d. A more centralized system of control is required
Q11. What is meant by the term functional management?
a. A system of business organization that is based on an individual having a wide range of skills needed to administer a business
b. A type of management that is based more on personality
c. A system that groups together various jobs and is organized by departments, sections or functions
d. A system that supports a flat form of command chain
Q12. What is meant by the term delegation?
A system of management that relies on consulting employees before making decisions
a. The process of using goals as the best way of motivating managers to achieve corporate targets/objectives
b. The giving of tasks by a manager to a subordinate
c. A style of management supported by FW Taylor
Q13. Which of the following is a reason for supporting a wider span of control within an organization?
a. The management wants to reduce the opportunities for delegation
b. There is a need for tighter control within the business
c. The business accepts that within its management there will be increased contact between managers and employees
d. Management wishes to introduce a process of de-layering
Q14. Which of the following is NOT a characteristic of a narrow span of control?
a. There is less opportunity to delegate
b. This form of span of control creates a smaller hierarchy within the business
c. Supervision and control are tighter
d. The distance between the top and bottom of the organization is greater
Q15. The effectiveness of wide spans of control will depend on:
a. ability of the chosen manager to control effectively those under their control
b. Designing a complex set of tasks for less senior personnel to perform
c. Employees being treated in a more Theory X way (McGregor) and not left to supervise their own working environment
d. The senior management wishing to encourage promotion from within its current staff
Q16. Which of the following is the best definition of a centralized management system?
a. A system that encourages empowerment of workers
b. A management structure that concentrates on developing the skills of junior personnel
c. A system that involves authority and responsibility for decision-making being in the hands of senior managers
d. A system that encourages faster decision-making
Q17. Most management teams use 'appraisal' but what is meant by this term?
a. A system used to improve the performance of personnel.
b. The main way in which an employee’s wages are determined.
c. A system of reward points offered by retailers to attract customer loyalty.
d. The evaluation of an individual employee's performance over a given period of time.
Q18. In recent years autonomous working groups have come to play an important part in many businesses. What are their essential features?
a. The group reports directly to the senior management above them in the hierarchy of the firm.
b. The creation of teams which have a high level of autonomy and control over their immediate working environment.
c. The bringing together of various individuals who have a common interest in solving certain problems.
d. A group of experts brought into research new ways of producing a product.
Q19. Authoritarian leadership is a term often seen in textbooks. What does it mean?
a. A style of leadership where the leader keeps a very tight control on all information and decision-making processes.
b. A system of leadership that allows maximum participation by all employees.
c. A chain of command that is flat and allows considerable personal freedom to make decisions.
d. The selling of debts to an agency, who take responsibility for their collection.
Q20. Ineffective planning of workforce would be highlighted by:
a. Recruitment and selection problems.
b. The need to outsource some of the production
c. A need to offer retraining to current employees.
d. An opportunity to increase the use of mechanization.
Q21. Which of the following is one of the factors that might influence the style of leadership used by a firm?
a. Accepting that employees who agree are favored.
b. Workers should be left to be more in control of their own working environment.
c. Offering profit sharing as part of employees remuneration package.
d. The skills expected from each employee.
Q22. Which of the following will influence the style of management used by a company?
a. The desire by the owner to have the workforce treat him in a fatherly way.
b. The need to focus discussions on policy as a joint process between employees and employer / manager.
c. The culture of the company, the nature of its work and the preferences of the individual managers.
d. The use of distinct penalties for poor performance.
Q23. What is meant by the term empowerment?
a. A process of giving employees greater autonomy and decision-making powers.
b. A system that encourages workers to move more freely within the workforce.
c. The opportunity to share in the company's profits.
d. A formal system of leadership that relies greatly on control.
Q24. Which of the following will influence the method of recruitment and selection used by a company?
a. The state of the economy.
b. The size of the organization.
c. The type of training programmes used by the company.
d. The possible expansion of UK business in Europe.
Q25. Which of the following is an accurate definition of recruitment?
a. The process of attempting to fill gaps that exist in the skills of the current labour force.
b. The system of following someone around and noting how they perform their duties.
c. The process by which companies fill the need to find new employees.
d. A statement that enshrines the fundamental objectives of the company.
Answers for Mock Test on OB&HR (Paper – I)
1. C
2. C
3. A
4. C
5. D
6. B
7. C
8. C
9. B
10. C
11. C
12. B
13. D
14. C
15. A
16. C
17. D
18. B
19. A
20. A
21. D
22. C
23. A
24. B
25. C
MOCK TEST ON INTERNATIONAL BUSINESS (PAPER – I)
Total Time: 30 Minutes Total Marks: 25
Total Questions: 25 Cut off – 60%
Note: All questions carry equal marks and there are 100% negative marking (for each wrong answer 1 Marks will be deducted – NO ‘Blind’ Guessing)
Multiple Choice Questions
1. Agreement on Textile and clothing was set out as a transitional process on 01 Jan 1995 for the ultimate removal of quotas by WTO by 01 Jan 2007.
a) True
b) False
c) Can’t Say
d) Data Inadequate
2. The first ever set of multilateral, legally enforceable rules covering international trade in services is the General Agreement on Trade in services (GATS).
a) True
b) False
c) Can’t Say
d) Data Inadequate
3. Trade Related Investment Measures (TRIMS) doesn’t apply for
a) Measures that affect trade in goods.
b) Measures that lead to restrictions on quantities.
c) Discouraging measures that limit a company’s imports.
d) Discouraging measures that limit a company’s exports.
4. General Agreement on Trade in Services will not be applicable to
a) Services supplied from one country to another – cross border supply
b) Transaction of goods across the border – Export Import
c) Individuals traveling from own country to supply services in another – presence of natural persons.
d) Consumers/firms making use of a service in another country – consumption abroad.
e) Foreign company setting up subsidiary or branches to provide services in another country – commercial presence.
5. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
a) Direct payments to farmers are permitted.
b) Indirect assistance and support to farmers including R & D support by govt. are not permitted.
c) Domestic policies which directly effect on production and trade have to be cut back.
d) Least developed countries do not need to make any cuts.
6. WTO is the only international organization dealing with the rules of trade between organizations.
a) True
b) False
c) Can’t Say
d) Data Inadequate
7. The limit of holdings by Individual Foreign Institutional Investors in a Company has been raised from 5 to 10 % of the company’s shares, while the aggregate limit has been increased from 24 to 34 %.
a) True
b) False
c) Can’t Say
d) Data Inadequate
8. Quantitative restrictions refer to limit set by countries to curb
a) Imports
b) Exports
c) Imports & exports
d) None of the above
9. A Most Favored nation status doesn’t necessarily refer to
a) Same and equal economic treatment
b) Non-discriminatory treatment
c) Same tariff rates applicable
d) Uniform civil code
10. The world trade organization was formed in the year _________ with GATT as it basis.
a) 1993
b) 1994
c) 1995
d) 1996
11. Geocentric staffing policy ensures best qualified people at suitable positions irrespective of their national and cultural differences.
a) True b) False
c) Can’t Say d) Data Inadequate
12. Basic objective of women to talk is to establish rapport and relationship while that of men is to maintain status and exhibit skills.
a) True
b) False
c) Can’t Say
d) Data Inadequate
13. Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
a) High level of inequality of power and wealth within the society
b) Low level of inequality of power and wealth within the society
c) High level of Political corruption
d) Low level of Human development Index
14. 2 Specific cultural dimensions that does not have a significant impact on cross-national business interactions is
a) Hofstede’s five cultural dimensions
b) Monochromatic vs polychromatic tune
c) Communication
d) Geography
15. Professional culture refers to
a) Shared belief of top managers about how they should manage themselves and their employees
b) Shared code of ethics and other commonalities shared by members of a given group
c) Both (a) and (c)
d) None of the above
16. Theory of Comparative advantage demonstrates that mutually advantageous trade cannot occur when one trading partner has an absolute advantage.
a) True
b) False
c) Can’t Say
d) Data Inadequate
17. Product life cycle theory states that an exporter country of a particular product can become an importer country during the product cycle of a product.
a) True
b) False
c) Can’t Say
d) Data Inadequate
18. An attribute that doesn’t contribute to Porters Diamond model is
a) Government b) Organized Trade union
c) Factor Conditions d) Demand Conditions
e) Firm strategy, structure and rivalry
19. _______ theory states that, lack of resources often helps countries to become competitive
a) Competitive theory
b) Porters Diamond Model
c) Theory of Mercantilism
d) Product life cycle theory
e) None of the above
20. Theory of Mercantilism propagates
a) Encourage exports and imports
b) Encourage exports and discourage imports
c) Discourage exports and imports
d) Discourage exports and encourage imports
21. An international acquisition is a cross-border investment in which a foreign investor acquires an established local firm and makes the acquired local firm a subsidiary business within its global portfolio.
a) True
b) False
c) Can’t Say
d) Data Inadequate
22. Backward vertical FDI occurs when an MNE enters a host country to produce intermediaries that are intended to use as inputs in the host country.
a) True
b) False
c) Can’t Say
d) Data Inadequate
23. Identify a factor that doesn’t play an important role in attracting FDI
a) Laws, rules and regulations
b) Administrative procedures and efficiency
c) Cost of resources
d) Infrastructure related factors
e) Language
24. B2B sector specific policy of Indian Government is
a) FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 5 years
b) FDI up to 100%
c) FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 years
d) FDI up to 49%
25. The country that attracts the largest FDI inflow is
a) India b) China
c) USA d) Brazil
Answers for Mock Test on IB (Paper – I)
1. B
2.A
3.B
4.B
5.B
6.B
7.A
8. C
9.D
10.C
11.A
12.A
13.A
14.D
15.B
16.B
17.A
18. B
19.D
20.B
21. A
22. B
23. E
24. A
25. B
MOCK TEST ON FINANCE AND ACCOUNTING - 1
Total Time: 30 Minutes Total Marks: 30
Total Questions: 30 Cut off – 60%
Note: All questions carry equal marks and there are 100% negative marking (for each wrong answer 1 Marks will be deducted – NO ‘Blind’ Guessing)
Multiple Choice Questions
1. Accounting Ratios are important tools used by
(a) Managers
(b) Researchers
(c) Investors
(d) All of the above
2. Net Profit Ratio Signifies:
(a) Operational Profitability
(b) Liquidity Position
(c) Big-term Solvency
(d) Profit for Lenders
3. Working Capital Turnover measures the relationship of Working Capital with:
(a) Fixed Assets
(b) Sales
(c) Purchases
(d) Stock
4. In Ratio Analysis, the term Capital Employed refers to:
(a) Equity Share Capital
(b) Net worth
(c) Shareholders' Funds
(d) None of the above
5. Dividend Payout Ratio is:
(a) PAT Capital,
(b) DPS EPS,
(c) Pref. Dividend PAT,
(d) Pref. Dividend Equity Dividend.
6. Financial Planning deals with:
(a) Preparation of Financial Statements
(b) Planning for a Capital Issue
(c) Preparing Budgets
(d) All of the above
7. Financial planning starts with the preparation of:
(a) Master Budget
(b) Cash Budget
(c) Balance Sheet
(d) None of the above
8. Which of the following is not a part of Master Budget?
(a) Projected Balance Sheet
(b) Capital Expenditure Budget
(c) Operating Budgets
(d) Budget Manual
9. Which of the following is not shown in Cash Budget?
(a)Proposed Issue of Capital
(b) Loan Repayment
(c) Interest on loan
(d) Depreciation
10. During year 1, the sales and Cost of goods sold were Rs. 6,00,000 and Rs. 4,30,000 respectively. Next year, the sales are expected to increase by 10%. The Cost of goods sold for next year would be:
(a) Rs. 4, 30,000,
(b) Rs. 4,90,000,
(c) Rs. 4, 73,000,
(d) Rs. 4,40,000.
11. Capital Budgeting is a part of:
(a) Investment Decision,
(b) Working Capital Management,
(c) Marketing Management,
(d) Capital Structure.
12. Capital Budgeting deals with:
(a) Long-term Decisions
(b) Short-term Decisions
(c) Both (a) and (b)
(d) Neither (a) nor (b)
13. Which of the following is not used in Capital Budgeting?
(a) Time Value of Money
(b) Sensitivity Analysis
(c) Net Assets Method
(d) Cash Flows
14. Capital Budgeting Decisions are:
(a) Reversible
(b) Irreversible
(c) Unimportant
(d) All of the above
15. Which of the following is not incorporated in Capital Budgeting?
(a) Tax-Effect
(b) Time Value of Money
(c) Required Rate of Return
d) Rate of Cash Discount
16. In capital budgeting, the term Capital Rationing implies:
(a) That no retained earnings available
(b) That limited funds are available for investment
(c) That no external funds can be raised
(d) That no fresh investment is required in current year
17. Feasibility Set Approach to Capital Rationing can be applied in:
(a) Accept-Reject Situations
(b) Divisible Projects
(c) Mutually Exclusive Projects
(d) None of the above
18. In case of divisible projects, which of the following can be used to attain maximum NPV?
(a) Feasibility Set Approach
(b) Internal Rate of Return
(c) Profitability Index Approach
d) Any of the above
19. In case of the indivisible projects, which of the following may not give the optimum result?
(a) Internal Rate of Return
(b) Profitability Index
(c) Feasibility Set Approach
(d) All of the above
20. Profitability Index, when applied to Divisible Projects, impliedly assumes that:
(a) Project cannot be taken in parts
(b) NPV is linearly proportionate to part of the project taken up
(c) NPV is additive in nature
21. Risk in Capital budgeting implies that the decision-maker knows of the cash flows.
(a) Variability
(b) Probability
(c) Certainty
(d) None of the above
22. In Certainty-equivalent approach, adjusted cash flows are discounted at:
(a) Accounting Rate of Return
(b) Internal Rate of Return
(c) Hurdle Rate
(d) Risk-free Rate
23. Risk in Capital budgeting is same as:
(a) Uncertainty of Cash flows
(b) Probability of Cash flows
(c) Certainty of Cash flows
(d) Variability of Cash flows
24. Which of the following is a risk factor in capital budgeting?
(a) Industry specific risk factors
(b) Competition risk factors
(c) Project specific risk factors
(d) All of the above
25. In Risk-Adjusted Discount Rate method, the normal rate of discount is:
(a) Increased
(b) Decreased
(c) Unchanged
(d) None of the above
26. Cost of Capital refers to:
(a) Flotation Cost
(b) Dividend
(c) Required Rate of Return
d) None of the above
27. Which of the following sources of funds has an Implicit Cost of Capital?
(a) Equity Share Capital
(b) Preference Share Capital
(c) Debentures
(d) Retained earnings
28. Which of the following has the highest cost of capital?
(a) Equity shares (b) Loans
(c) Bonds (d) Preference shares
29. Cost of Capital for Government securities is also known as:
(a) Risk-free Rate of Interest
(b) Maximum Rate of Return
(c) Rate of Interest on Fixed Deposits
(d) None of the above
30. Cost of Capital for Bonds and Debentures is calculated on:
(a) Before Tax basis
(b) After Tax basis
(c) Risk-free Rate of Interest basis
(d) None of the above
Answers for Mock Test on Finance & Accounting - 1
1. (d)
2. (a)
3. (a)
4. (d)
5. (b)
6. (c)
7. (d)
8. (d)
9. (d)
10. (c)
11. (a)
12. (a)
13. (c)
14. (b)
15. (d)
16. (b)
17. (a)
18. (c)
19. (c)
20. (d)
21. (b)
22. (d)
23. (d)
24. (d)
25. (a)
26. (c)
27. (d)
28. (a)
29. (a)
30. (b)
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