2012 December UGC NET Solved Question Paper in Management, Paper III

1. Which of the following is not one of the important objectives of Financial Management?

(A) Profit maximisation

(B) Wealth maximisation

(C) Value maximisation

(D) Social responsibility

Answer: (D)


2. For ‘make or buy decision’, which cost is to be considered?

(A) Marginal cost

(B) Total cost

(C) Fixed cost

(D) None of the above

Answer: (A)


3. Which is the method applied for measuring GNP?

(A) Income method

(B) Expenditure method

(C) Value Added method

(D) All of the above

Answer: (D)


4. Which of the following project appraisal method is not based on time value of money?

(A) Payback method

(B) Net present value method

(C) Internal rate of return method

(D) Discounted payback method

Answer: (A)


5. Micro, Small and Medium Enterprises Development Act, 2006 is related to

(A) Industrial Policy

(B) Investment Limit

(C) Business Opportunities

(D) None of these

Answer: (B)


6. Selection is the process in which candidates for employment are divided into two classes – those who are to be offered employment and those who are not.” This is stated by

(A) Dale Yoder

(B) Milton M. Mandell

(C) R.D. Agarwal

(D) Edwin Flippo

Answer: (A)


7. Who defines advertising as “any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor?

(A) Philip Kotler

(B) C.K. Prahlad

(C) Chartered Institute of Marketing

(D) American Marketing Association

Answer: (D)


8. The exchange rate between the currencies of two countries will be equal to the ratio of the price indices in these countries is explained by

(A) Inflation adjustment

(B) Purchase power parity

(C) Interest rate parity

(D) Transaction exposure

Answer: (B)


9. The ultimate mission or purpose is to relate human resources to future enterprise needs, so as to maximize the future return on investment in human resources. It is referred as

(A) Demand and Supply

(B) Forecasting

(C) Human Resource Planning

(D) Human Resource Development

Answer: (C)


10. Other things being equal an increase in income leads to a decrease in demand for

(A) Superior Goods

(B) Inferior Goods

(C) Both (A) and (B)

(D) None of the above

Answer: (B)

11. “Hind Mazdoor Sabha” established in which year?www.netugc.com

(A) 1940

(B) 1942

(C) 1948

(D) 1952

Answer: (C)


12. The evaluation of Business activities and behaviour as right or wrong is called

(A) Corporate Governance

(B) Business Ethics

(C) Social Responsibility

(D) None of the above

Answer: (B)


13. A market structure which consists of one buyer and one seller is referred as

(A) Monopsony

(B) Bilateral monopoly

(C) Monopoly

(D) Duopoly

Answer: (B)


14. At which stage of new product development process, the launching of New Product will take place?

(A) Business Analysis

(B) Commercialization

(C) Test Marketing

(D) Marketing Strategy Development

Answer: (B)


15. The cost of equity can be measured as

(A) Rate of interest (1 – t).

(B) Rate of dividend (1– t).

(C) Rate of dividend × (Face value – Issue Price)/n

(D) D1/P0 + g

Answer: (D)


16. If the regression coefficient B in Y = A + B X is equal to zero, then the regression line will

(A) Pass through the origin

(B) Be parallel to the x-axis

(C) Be parallel to the y-axis

(D) Neither intersects x-axis nor y-axis

Answer: (B)


17. An entrepreneurial person employed by a corporation and encouraged to be innovative and creative is referred to as

(A) Competitor

(B) Supplier

(C) Entrepreneur

(D) Intrapreneur

Answer: (D)


18. Which of the following provides direction, serves as standards for evaluating performance and motivates members of the organization?

(A) Mission

(B) Values

(C) Objectives

(D) Goals

Answer: (C)


19. The four systems of Management in terms of Leadership styles are related to

(A) Blake and Mouton

(B) Philip Kotler

(C) Peter F. Drucker

(D) Rensis Likert

Answer: (D)


Answer: (B)

21. In production control, scheduling includes

(A) Deciding about the time when the production will reach various departments.

(B) Estimating the time to be consumed in these departments.

(C) How much time will be taken in transferring production from one department to another.

(D) All of the above.

Answer: (D)


22. Making profit by taking advantage of different prices prevailing in different markets is referred as

(A) Hedging

(B) Speculation

(C) Arbitrage

(D) Gambling

Answer: (C)


23. Gegabyte refers to

(A) 1024 Bytes

(B) 1024 Kilobytes

(C) 1024 Megabytes

(D) 102400 Bytes

Answer: (C)


24. Environmental issues can be managed by

(A) Investing in environment friendly process or products.

(B) Managing environmental regulations.

(C) Investing in environmental performance improvement.

(D) All of the above.

Answer: (D)


25. A formal document of what the entrepreneur intends to do to sell enough of the firm’s product or service to make a satisfactory profit is called

(A) Long range plan

(B) Strategic plan

(C) Business plan

(D) None of the above

Answer: (C)


26. Among the following financial derivatives, which involves the least risk for the holder?

(A) Forward

(B) Option

(C) Futures

(D) Swap

Answer: (B)


27. Which level of Managers translate thecorporate strategy into concrete objectives for their individual business?

(A) Business level

(B) Corporate level

(C) Multi-Business level

(D) Functional level

Answer: (A)


28. The number of subordinates a superior can effectively handle is called

(A) Organising people

(B) Span of control

(C) Direction

(D) Coordination

Answer: (B)


29. Selection of specific media in which advertisements will be run and when they will be run to reach the target market is called

(A) Advertising

(B) Public Relations

(C) Media Planning

(D) Publicity

Answer: (C)


30. Statistical Quality Control requires determination of

(A) Quality tolerance limit

(B) Quantity measurement

(C) Production leads time

(D) Inventory carrying cost

Answer: (A)


31. With reference to Working Capital Management, the term ‘float’ relates to

(A) Inventory Management

(B) Receivables Management

(C) Cash Management

(D) Marketable Securities

Answer: (C)


32. Which communication component is not a paid form of communication?

(A) Advertising

(B) Sales promotion

(C) Personal selling

(D) Publicity

Answer: (D)


33. The Government of India established the Small Industries Development Organisation (SIDO) in the year:

(A) 1951

(B) 1972

(C) 1954

(D) 1982

Answer: (C)


34. Match the following:

List – I                                    List – II

a. Functional Organisation      1. F.W. Taylor

b. Transactional Analysis        2. McClelland

c. Managerial Grid                  3. Eric Berne

d. Need Theory                       4. Blake and Mouton


       a b c d

(A) 1 3 4 2

(B) 1 2 3 4

(C) 4 3 2 1

(D) 2 1 4 3

Answer: (A)


35. Which of the following is not a Trading block?





Answer: (D)


36. Takeover generally involves

(A) The acquisition of part of an undertaking to enable the acquirer to increase the market share of the product concerned.

(B) Theacquisition of certain block of equity capital of a company which enables the acquirer to exercise control over the affairs of the company.

(C) Taking over the responsibility to have trade agreement for finished product.

(D) Taking over certain long-term liabilities of another group company to help it financially.

Answer: (B)


37. Which of the following is not a function of distribution agency?

(A) Transportation

(B) Servicing

(C) Inventorying

(D) Manufacturing

Answer: (D)


38. Cars are parked in a very big parking lot. A researcher is required to estimate the proportion of cars that are red or the proportion of cars that are from a Japanese manufacturer. Which of the following statement is not correct?

(A) A convenience sample of cars parked near the gate may give a biased estimate of the proportion of cars which are from a Japanese Manufacturer.

(B) Different investigators may get different estimates for the proportion of cars that are red.

(C) The sample proportion of cars that are red is an unbiased estimate of the population proportion if the sampling method is simple random.

(D) A sample of 100 cars in a convenience sample is always better than a sample of 20 cars from a proper random sampling method.

Answer: (D)


39. Who is father of Administrative Management Theory?

(A) Max Weber

(B) Frank Gilbraith

(C) Henry Fayol

(D) Henry Gantt

Answer: (C)


40. The process of determining the tasks that make-up a job and the skills, abilities and responsibilities needed to perform the job is called

(A) Job Analysis

(B) Job Description

(C) Job Enrichment

(D) All of the above

Answer: (A)


41. GATT stands for

(A) General Accord on Tariff and Trade

(B) Generous Agreement on Trade and Tariff

(C) General Agreement on Tariff and Trade

(D) Generalist Agreement on Trade and Tariff

Answer: (C)


42. People who take the risks necessary to organize manage and receive the financial profits and non-monetary rewards are called

(A) Suppliers

(B) Employees

(C) Competitors

(D) Entrepreneurs

Answer: (D)


43. A Marketing database is built as an aid to

(A) Market research

(B) Product-mix expansion

(C) Reducing cost of production

(D) Price hike

Answer: (A)


44. The model that applies to Economic Order Quantity for Inventory Management, was proposed to be applied to Cash Management by

(A) Miller and Orr

(B) William J. Baumol

(C) William Sharpe

(D) David Durand

Answer: (B)


45. If a hypothesis is statistically significant, then it is concluded that

(A) The observed result is probably not due to chance.

(B) The observed result is probably a chance result.

(C) The observed result cannotpossibly be due to chance.

(D) The null hypothesis of no relationship is probably true.

Answer: (A)


46. In which stage of product life cycle, the company takes decision whether to maintain, harvest or drop the product?

(A) Introduction

(B) Growth

(C) Maturity

(D) Decline

Answer: (D)


47. Recruitment is concerned with

(A) Selecting the right candidate

(B) Developing a pool of job candidates

(C) Getting applications

(D) None of the above

Answer: (B)


48. In production management, dispatching includes:

(A) Giving work to machines and places.

(B) Providing materials, tools, etc. to works.

(C) Issuing appropriate orders for production process.

(D) All of the above.

Answer: (D)


49. Which of the following is the internal sources of recruitment?

(A) Advertisement

(B) Selection

(C) Both (A) and (B)

(D) None of the above

Answer: (D)


50. Which Business unit generates substantial cash surpluses due to low industrial growth rate and high market share?

(A) Dog

(B) Cash Cow

(C) Question Mark

(D) Star

Answer: (B)


51. In which stage of new product development process, the product and marketing programs are tested in realistic market settings?

(A) Concept Development and Testing

(B) Idea Screening

(C) Test Marketing

(D) Commercialization

Answer: (C)


52. The problem of industrial discipline was debated by the Indian Labour Conference (ILC) held in India in

(A) 1948

(B) 1952

(C) 1957

(D) 1960

Answer: (C)


53. The Branding strategy which uses a different brand name for each product is known aswww.netugc.com

(A) Overall Family Branding

(B) Line Family Branding

(C) Individual Branding

(D) Brand Extension

Answer: (C)


54. The two factor theory was propounded by

(A) Frederick Herzberg

(B) A.H. Maslow

(C) McGregor

(D) Elton Mayo

Answer: (A)


55. Match the following

a. Percentage change in quantity demanded to percentage change in price.

b. Percentage change in demand to percentage change in the price of some other commodity.

c. Homogeneous products

d. Relationship between quantity of the product demanded and factors that affect the quantity.


1. Perfect competition

2. Market demand

3. Price elasticity

4. Cross elasticity


      a b c d

(A) 3 4 1 2

(B) 4 3 1 2

(C) 3 2 1 4

(D) 4 2 1 3

Answer: (A)


56. F.W. Taylor has done the following studies for improving the production process:

(A) Time Study, Fatigue Study and Fatal Study.

(B) Time Study, Motion Study and Fatal Study.

(C) Time Study, Motion Study and Fatigue Study.

(D) Time Study, Motivation Study and Fatigue Study.

Answer: (C)


57. Which one is not the overseas market entry strategy followed by Multinational Corporations?

(A) Franchise

(B) Collaborations

(C) Joint venture

(D) Strategic planning

Answer: (D)


58. Benefits provided for temporary and permanent disability disfigurement, medical expenses and medical rehabilitation is referred to as

(A) Fringe benefits

(B) Financial incentives

(C) Workers’ compensation

(D) None of the above

Answer: (C)


59. Today’s organizations are working on the principle of

(A) Production-orientation

(B) Product-orientation

(C) Selling-orientation

(D) consumer-orientation

Answer: (D)


60. Identify the correct sequence of control cycle:

(A) Feedback -> Evaluation -> Adjustment -> Action.

(B) Action -> Evaluation -> Feedback -> Adjustment.

(C) Action -> Feedback -> Evaluation -> Adjustment.

(D) Adjustment -> Action -> Feedback -> Evaluation.

Answer: (C)


61. Negotiation of labour contract by Union and Management is referred to as

(A) Industrial Relations

(B) Trade Union

(C) Consumerism

(D) Collective Bargaining

Answer: (D)


62. Goods used by an organization in producing other goods is called

(A) Consumer goods

(B) Industrial goods

(C) Speciality goods

(D) None of the above

Answer: (B)


63. The outside third party who is brought into settle a dispute, and he or she has the authority to make a decision is called

(A) Government

(B) An Arbitrator

(C) Union

(D) Legal Expert

Answer: (B)


64. Marketing information system gathers information from internal sources like marketing intelligence and marketing research to help the manager in

(A) Assessing the information needs.

(B) Developing the needed information.

(C) Distributing the information.

(D) All of the above.

Answer: (D)


65. In which year WTO came into being?

(A) 1980

(B) 2000

(C) 2006

(D) 1995

Answer: (D)


66. One-level channel consists of

(A) Producer-consumer

(B) Producer-dealer-consumer

(C) Producer-dealer-retailerconsumer

(D) Producer-dealer-wholesaler retailer- consumer

Answer: (B)


67. Batch production is appropriately applicable to

(A) Medicine production

(B) Sugar production

(C) Petroleum products

(D) Agriculture produce

Answer: (A)


68. Match the following:

a. Harry Markowitz                 1. Dividend Theory

b. David Durand                     2. CAPM

c. Dow                                    3. Capital structure

d. M.J. Gordon                       4. Technical Analysis


       a b c d

(A) 4 3 2 1

(B) 2 3 4 1

(C) 2 1 3 4

(D) 3 2 4 1

Answer: (B)


69. Which one of the following is not a basic element in the Strategic Management?

(A) Environmental scanning

(B) Strategy formulation

(C) Strategy implementation

(D) Functional strategy

Answer: (D)


70. A written statement of the human qualification, education and experience needed to perform a job is referred to as

(A) Job enrichment

(B) Job specification

(C) Job design

(D) Job description

Answer: (C)


71. Changes in the population characteristics such as age, gender, marital status, income and education are the examples of

(A) Demographic characteristics

(B) Cultural characteristics

(C) Geographic characteristics

(D) None of the above

Answer: (A)


72. ESI Act applies to

(A) Railways and Mines Industries

(B) Seasonal Factory Workers

(C) Cement Industries

(D) None of the above

Answer: (B)


73. Porter and Lawler model is related to

(A) Perception

(B) Attitudes

(C) Motivation

(D) Leadership

Answer: (C)www.netugc.com


74. Which of the following is the best technique to manage the existing products?

(A) Ansoff matrix

(B) BCG matrix

(C) Mc Kinsey 7s Framework

(D) Five forces of competition

Answer: (A)


75. One of the acceptable methods for obtaining feedback of training is called

(A) Structured Interview

(B) Performance after Training

(C) Improvement after Training

(D) Employee Turnover Rate

Answer: (A)