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

1. Hawthorne Experiment is related to the

(A) Systems theory

(B) Classical theory

(C) Human relations theory

(D) Scientific management theory

Answer: (C)


2. Cost incurred in the past and is not affected by a current decision is referred to as:

(A) Sunk cost

(B) Marginal cost

(C) Incremental cost

(D) Replacement cost

Answer: (A)


3. The principle of organisation that no employee should report to more than one superior is called

(A) Scalar principle

(B) Span of control

(C) Unity of command

(D) Unity of direction

Answer: (C)


4. ‘Rege Committee’ is related to

(A) Working conditions in Indian Industry

(B) Social security in Indian Industry

(C) Individual differences in Indian Industry

(D) None of the above

Answer: (A)


5. The factors affecting to P/E multiple are

(A) Dividend pay-out ratio and required return

(B) Required return and expected growth rate

(C) Dividend pay-out ratio and expected growth rate

(D) Dividend pay-out ratio, required return and expected growth rate

Answer: (D)


6. Which of the following is not one of the benefits of E-Commerce?

(A) E-Commerce offers greater flexibility in meeting consumer needs.

(B) E-Commerce can help to reduce cost.

(C) E-Commerce increases potential market share.

(D) E-Commerce increases the net cost per contact.

Answer: (D)


7. Which among the following is not concerned with the PERT evolution?

(A) Polaris Project

(B) Lock-head Aircraft Corporation

(C) Both (A) and (B)

(D) None of the above

Answer: (C)


8. Before a company decides to target a particular market segment, which important factors are to be examined against organization’s objectives and resources?

(A) Market size

(B) Growth rate

(C) Structural attractiveness

(D) All of the above

Answer: (D)


9. Balance of Payment is

(A) Balance of trade + Net earnings on invisibles

(B) Foreign exchange inflow – Foreign exchange outflow

(C) Balance of current account + Balance of capital account + Statistical discrepancy

(D) Export of goods – Import of goods

Answer: (C)


10. Factors contributing to unethical behaviour are

(A) Poor leadership

(B) Poor internal communication

(C) Lack of management support

(D) All of the above

Answer: (D)

11. Which of the following is not included in the five forces of competition?

(A) Bargaining power of suppliers

(B) Bargaining power of consumers

(C) Threat of substitutes

(D) Strategic planning

Answer: (D)


12. Match the following:

List-I                                                                                       List-II

Financial Institution                                                                Year of Establishment

(i) Industrial Development Bank of India (IDBI)                  I. 1955

(ii) Small Industries Development Bank of India (SIDBI)    II. 1964

(iii) Natural Small Industries Corporation (NSIC)                 III. 1948

(iv) Industrial Finance Corporation of India (IFCI)               IV. 1989


(i)         (ii)        (iii)       (iv)

(A)       I           IV        III        II

(B)       II         IV        I           III

(C)       III        I           II         IV

(D)       III        II         I           IV

Answer: (B)


13. The practice of selling two or more separate products together for a single price is:www.netugc.com

(A) Bundling

(B) Dumping

(C) Both (A) and (B)

(D) None of the above

Answer: (A)


14. Which is the oldest and simplest form of organisation?

(A) Functional organisation

(B) Committee organisation

(C) Line organisation

(D) Line and staff organisation

Answer: (C)


15. While considering promotion of an employee, the following is the most important consideration:

(A) Seniority

(B) Competence

(C) Loyalty

(D) Only (A) and (B)

Answer: (D)


16. Which type of promotion has been described by W. R. Spriegel?

(i) Departmental Promotion

(ii) Inter-departmental Promotion

(iii) Inter-plant Promotion

(iv) Inter-company Promotion

(A) (i), (ii), (iii)

(B) (ii), (iii), (iv)

(C) (i), (ii), (iv)

(D) (i), (iii), (iv)

Answer: (A)


17. Market risk is also known as

(A) Systematic risk or diversifiable risk

(B) Unsystematic risk or diversifiable risk

(C) Systematic risk or non-diversifiable risk

(D) Unsystematic risk or non-diversifiable risk

Answer: (C)


18. The discount rate that makes NPV equal to zero is known as

(A) Benefit–Cost ratio

(B) Internal Rate of Return

(C) Discounted Pay-back period

(D) Profitability Index

Answer: (B)


19. Match the following:

List-I                                                   List-II

(i) Poisson distribution                        I. Mean is greater than variance

(ii) Normal distribution                       II. Mean & Variance are same

(iii) Chi-Square distribution                III. Symmetric

(iv) Binomial distribution                    IV. Positively skewed


(i)         (ii)        (iii)       (iv)

(A)       II         I           III        IV

(B)       IV        I           III        II

(C)       II         III        IV        I

(D)       IV        II         I           III

Answer: (C)


20. A critical activity is defined as one whose

(A) Total float is zero.

(B) Free float is zero.

(C) Duration is the longest.

(D) Duration is the smallest.

Answer: (A)

21. In the buying decision process, what is the term used for a person who first suggests buying the product or service?

(A) Influencer

(B) Initiator

(C) Decider

(D) Buyer

Answer: (B)


22. Strategies formulated to convert a sick unit to healthy is referred to:

(A) Turnaround

(B) Expansion

(C) Diversification

(D) Stabilisation

Answer: (A)


23. Which one is an international credit rating agency?

(A) Mc Kinsey

(B) B C G

(C) Standard and poor

(D) I M F

Answer: (C)


24. Ethical challenges may arise on account of

(A) Failure of personal character, conflict of personal value & organisational goals and conflict of organisational goals and social values

(B) Hazardous but popular products

(C) Both (A) and (B)

(D) None of the above

Answer: (C)


25. Supply curve slopes backward towards left, when:

(A) More quantity is supplied at higher prices.

(B) Less quantity is supplied at higher prices.

(C) Same quantity is supplied at higher prices

(D) None of the above

Answer: (B)


26. Transactional Analysis (TA) is related to

(A) Learning

(B) Attitudes

(C) Perception

(D) Personality

Answer: (D)


27. Which among the following is odd one?





Answer: (B)


28. Which of the following strategies requires a company to concentrate its efforts in one or more narrow segments instead of a broad based strategy?

(A) Cost-Leadership strategy

(B) Differentiation strategy

(C) Focus strategy

(D) None of the above

Answer: (C)


29. In case where the investment can be made in stages and is dependent on the future outcomes, the capital budgeting technique that can be adopted will be

(A) Simulation technique

(B) Hiller model

(C) Decision-tree analysis

(D) Scenario analysis

Answer: (C)


30. Statement (i): In an organization we pay for jobs, we do not pay for men.

Statement (ii): The compensation must be as per the Job assigned.

(A) Statement (i) is correct but (ii) is false.

(B) Statement (ii) is correct but (i) is false.

(C) Both statement (i) and (ii) are correct.

(D) Both statement (i) and (ii) are false.

Answer: (C)


31. If the regression coefficient of the independent variable in a simple regression equation is negative, then which of the following statement is correct?

(A) The coefficient of correlation between the variables is zero.

(B) The coefficient of correlation between the variables is the positive square root of the coefficient of determination.

(C) The coefficient of correlation between the variables is the negative square root of the coefficient of determination.

(D) None of the above.

Answer: (C)


32. Selling the products only through a single wholesaler or retailer is called

(A) Extensive distribution strategy

(B) Selective distribution strategy

(C) Exclusive distribution strategy

(D) Mass merchandise strategy

Answer: (C)


33. Marketing myopia concept was developed by

(A) Philip Kotler

(B) Peter Drucker

(C) C. K. Prahlada

(D) Theodore Levitt

Answer: (D)


34. Emerging market economies are:

(A) A part of developed countries

(B) Newly industrializing countries

(C) A part of developing countries

(D) A part of third world countries

Answer: (B)


35. What describes the market, product and technological area of business?

(A) Company’s mission

(B) Company’s vision

(C) Strategic plan

(D) None of the above

Answer: (A)


36. Activities taken up on part time or casual basis to raise income is:

(A) Self employment

(B) Income generation

(C) Entrepreneurship

(D) None of the above

Answer: (B)


37. “The optimal pay-out ratio for growth firm is nil and declining firm is 100%” is established by

(A) Gordon model

(B) Walter model

(C) Both (A) and (B)

(D) None of the above

Answer: (C)


38. Match the following:

List-I                                                   List-II

(i) Z – Theory                                      (a) Hergberg

(ii) Y – Theory                                    (b) Maslow

(iii) Hierarchy Needs Theory              (c) Mc Gregor

(iv) Hygiene Theory                            (d) Urwick


        (a) (b) (c) (d)

(A) (iv) (i) (iii) (ii)

(B) (iii) (ii) (iv) (i)

(C) (iv) (iii) (ii) (i)

(D) (iii) (iv) (i) (ii)

Answer: (C)


39. Need-Hierarchy Theory was propounded by

(A) Peter F. Drucker

(B) Abraham Maslow

(C) Mc – Fraland

(D) Elton Mayo

Answer: (B)


40. Additional revenue generated by selling an additional unit is

(A) Incremental revenue

(B) Marginal revenue

(C) Total revenue

(D) Average revenue

Answer: (B)


41. What is the term used if a market is divided into distinct groups of buyers who might require separate products or marketing mixes?

(A) Market Targetting

(B) Market Positioning

(C) Market Segmentation

(D) Market Co-ordination

Answer: (C)


42. Bath tub curve is encountered in

(A) Process control

(B) Acceptance sampling

(C) Both (A) and (B)

(D) Maintenance management

Answer: (D)


43. Cost advantage is referred as

(A) A firm achieving a lower cumulative cost of performing value activities than its competitors

(B) Firm trying to outsource all relative products from one company to gain economies of scale

(C) Firm trying to restrict the cost controls measure relative to its nearer competitor

(D) None of the above

Answer: (A)


44. If a hypothesis is tested at a significant level of 5%, then it means that

(A) There is 5% probability that the null hypothesis will be rejected though it is true.

(B) There is 5% probability that the null hypothesis will be false.

(C) There is 5% probability that the null hypothesis will be true.

(D) There is 95% probability that the alternative hypothesis will be false.

Answer: (A)


45. The time that elapses between the purchase of raw materials and the collection of cash for sales is referred as

(A) Production cycle

(B) Operating cycle

(C) Cash cycle

(D) Organisation cycle

Answer: (B)


46. One of the following is not included in job descriptions:

(A) Job title

(B) Location

(C) Penal actions

(D) Duties

Answer: (C)


47. In which type of market situation competitors offer same type of products and services for the same price with no differentiation?

(A) Monopolistic competition

(B) Monopoly

(C) Oligopoly

(D) Perfect competition

Answer: (D)


48. Sick enterprise is referred to which of the following bodies for rehabilitation?

(A) Small Industries Development Bank of India (SIDBI)

(B) Small Industries Development Organisation (SIDO)

(C) Board for Industrial and Financial Restructure (BIFR)

(D) National Small Industries Corporation (NSIC)

Answer: (C)


49. Match the following:

(i) Wealth of Nations                          I. Robert Giffen

(ii) Income and Substitution effect     II. Paul M. Sweezy

(iii) Kinked Demand Curve                III. Cobb- Douglas

(iv) Production function                     IV. Adam Smith


(i)         (ii)        (iii)       (iv)

(A)       IV        II         I           III

(B)       IV        I           III        II

(C)       IV        II         III        I

(D)       IV        I           II         III

Answer: (D)


50. The term “Grapevine Communication” is related to

(A) Formal Communication

(B) Informal Communication

(C) Written Communication

(D) Vertical Communication

Answer: (B)


51. Taylor differential piece rate system is related to

(A) Time wage system

(B) Piece wage system

(C) Incentive wage system

(D) None of the above

Answer: (C)


52. Financial risk arises from

(A) R & D and operations stages of value chain

(B) GNP growth rate and competitive environment

(C) Volatility of interest rates, currency rates, commodities prices and stock prices

(D) Changes in laws and regulations

Answer: (C)


53. A company using high price and high promotion policy is adopting the following strategy:

(A) Slow skimming

(B) Rapid Penetration

(C) Slow Penetration

(D) Rapid Skimming

Answer: (D)


54. Which one of the following are the functions of personnel management?

(A) Planning, Organising, Staffing, Directing and Controlling

(B) Planning, Organising, Coordinating, Budgeting and Controlling

(C) Procurement, Development, Compensation, Integration and Maintenance

(D) Perception, Development, Learning, Organisation and Behaviour

Answer: (C)


55. Match the following:

(i) Net present value method              I. Inflow after interest and tax

(ii) Average rate of return                   II. Discounted cash flow

(iii) Internal rate of return                   III. Traditional method

(iv) Pay back method                          IV. Decision based on cut-off rate


(i)         (ii)        (iii)       (iv)

(A)       IV        I           II         III

(B)       IV        III        II         I

(C)       II         I           IV        III

(D)       I           III        IV        II

Answer: (C)


56. The number of product lines a company carries is called

(A) Product range

(B) Product mix depth

(C) Product mix width

(D) Product line length

Answer: (C)


57. Entrepreneurial failures can be attributed to:

(A) Low quality raw materials

(B) Labour problems

(C) High overhead costs

(D) All of the above

Answer: (D)


58. What are the economic goals that guide the strategic direction of every viable business organization?

(A) Goal, profit and public image

(B) Public image, growth and profit

(C) Survival, growth and profitability

(D) Growth, profitability and public image


Answer: (C)


59. Match the following:       

(i) Sensitivity training                         (a) Leadership

(ii) Hygiene factors                             (b) Organisational Development

(iii) Number of subordinates               (c) Motivation

(iv) Likert’s management system        (d) Span of management


       (i) (ii) (iii) (iv)

(A) (b) (c) (d) (a)

(B) (a) (c) (d) (b)

(C) (d) (c) (a) (b)

(D) (a) (b) (c) (d)

Answer: (A)


60. If the intrinsic value of the share is greater than market value, such shares are:

(A) Under valued

(B) Over valued

(C) Neutral

(D) None of the above

Answer: (A)


61. Which of the following is not a market oriented pricing technique?

(A) Penetration pricing

(B) Going rate pricing

(C) Perceived value pricing

(D) Early-cash recovery pricing

Answer: (D)


62. Which one of the following facilitates E-Commerce?

(A) Public relations

(B) Direct marketing

(C) Personal selling

(D) Product quality

Answer: (B)


63. Sensitivity analysis may be used in

(A) Linear programming

(B) Transportation programming



Answer: (A)


64. Sensitivity training method is a part of

(A) On-the-job training method

(B) Off-the-job training method

(C) Vestibule training method

(D) None of the above

Answer: (C)


65. A machine on the average produces 5% defective items. What are the mean and variance in a set of 32 items?

(A) 16, 8

(B) 16, 4

(C) 4, 16

(D) None of the above

Answer: (D)


66. Distribution strategy of a company will be influenced by

(A) Nature of product

(B) Target segment of consumers

(C) Pricing policy

(D) All of the above

Answer: (D)


67. Which of the following is an example for unsystematic risk?

(A) Interest rate risk

(B) Exchange rate risk

(C) International risk

(D) Operating risk

Answer: (D)


68. Match the following:

List – A                                   List – B

(i) Job Analysis                       (a) Grading jobs according to scale of pay

(ii) Job Description                  (b) A statement of human qualities to fill the job

(iii) Job Specification              (c) A process of obtaining job facts

(iv) Job Classification             (d) A statement of duties and responsibilities of a job


       (i) (ii) (iii) (iv)

(A) (c) (d) (b) (a)

(B) (c) (d) (a) (b)

(C) (a) (b) (c) (d)

(D) (b) (c) (d) (a)

Answer: (A)


69. A positioning strategy should include the following strategies except

(A) Product strategy

(B) Personnel strategy

(C) Promotion strategy

(D) Advertising strategy

Answer: (B)


70. Which among the following will suit the best as location for a chemical plant?

(A) Desert Area

(B) Coastal Area

(C) Plains

(D) Hill Area

Answer: (B)


71. When making purchase decisions the main consideration involved in organizational buying iswww.netugc.com

(A) Product quality

(B) Price

(C) Service

(D) All the above

Answer: (D)


72. Which of the following is to be considered by an investor while exercising the option?

(A) Exercise price

(B) Spot price

(C) Exercise price and spot price

(D) None of the above

Answer: (C)


73. Match the following:

List – A                                                           List – B

(i) Indian Trade Union Act                             (a) 1923

(ii) Industrial Dispute Act                               (b) 1926

(iii) The Workmen’s Compensation Act         (c) 1948

(iv) The Employees’ State Insurance Act       (d) 1947


       (i) (ii) (iii) (iv)

(A) (b) (d) (a) (c)

(B) (b) (c) (d) (a)

(C) (b) (d) (c) (a)

(D) (a) (c) (b) (d)

Answer: (A)


74. Who creates and implements strategic change in an organization?

(A) Directors

(B) Consultants

(C) H. R. Managers

(D) Strategist

Answer: (D)


75. Which of the variables is not used by marketers for demographic segmentation?

(A) Age

(B) Income

(C) Gender

(D) Poverty

Answer: (D)