2013 June UGC NET Solved Question Paper in Management, Paper II

1. The hypothesis that ‘consumption in one period would be a function of income in that period and the returns on savings of the previous period’ is given by

(A) Irving Fisher

(B) Franco Modigliani

(C) Duesenberry

(D) Robert Hall

Answer: (B)


2. From the following identify one which is not a property of Indifference curve?

(A) Indifference curves are downward sloping.

(B) Indifference curves are concave to the origin.

(C) Indifference curves are convex to the origin.

(D) Indifference curves do not intersect each other.

Answer: (B)


3. Which one of the following statements is true?

(A) Business decisions cannot be taken without a sound knowledge of Macro Economic Theories.

(B) Knowledge of Economic Theory is misleading in making business decisions.

(C) With the help of Economic Theories, it is always possible to predict the future accurately.

(D) Every Economic Theory is based on realistic facts which are common to all societies.

Answer: (A)


4. Arrange the following in the proper order for decision under capital budgeting.

(i) Estimating the cost and benefits of proposals.

(ii) Deciding the investment objective.

(iii) Selecting the best investment proposal.

(iv) Applying the capital budgeting decision technique.


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

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

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

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

Answer: (C)


5. Match the following items in List – A with the most appropriate options from List – B:

List-A                                                                                                              List-B

a. A lender buys securities to protect him from a falling interest rate            1. Interest rate collarwww.netugc.com

b. A borrower buys securities to protect himself from rising interest rate      2. Interest rate cap

c. A combination of interest rate cap and floor                                              3. Interest rate corridor

d. A combination of two or more interest rate caps                                       4. Interest rate floor


       a b c d

(A) 2 4 3 1

(B) 4 2 1 3

(C) 4 2 3 1

(D) 3 2 1 4

Answer: (B)


6. The form of learning in which people acquire new behaviours by systematically observing the rewards and punishments given to others is known as

(A) Operant conditioning

(B) Positive reinforcement

(C) Modelling

(D) Law of effect

Answer: (A)


7. Diffusion of routine information takes place through

(A) Downward Communication

(B) Upward Communication

(C) Horizontal Communication

(D) External Communication

Answer: (A)


8. An integrated group of activities to bring about a change is known as

(A) Organisation development

(B) Interventions


(D) Collaborative culture

Answer: (A)


9. Match the following:

a. Motivation is a function of fairness in social exchanges.                            1. Expectancy Theory

b. People are motivated to behave in ways that produce valued outcomes. 2. Alderfer’s ERG Theory

c. Determining specific levels of performance for workers to attain and then striving to attain them.                                  3. Equity Theory

d. When people are frustrated by their inability to meet needs at the next higher level in the hierarchy, they regress to the next lower category of needs and intensify their desire to gratify these needs.              4. Goal- Setting Theory


       a b c d

(A) 1 2 3 4

(B) 4 3 2 1

(C) 3 1 4 2

(D) 3 4 1 2

Answer: (C)


10. Match the following:

a. Self-efficacy            1. Determining specific levels of performance for workers to attain them.

b. Goal setting             2. The belief that one’s efforts will positively influence one’s performance.

c. Expectancy              3. People strive to maintain ratio of their own outcomes to their own inputs that are equal to that of those with whom they compare themselves.

d. Equity Theory         4. One’s belief about having the capacity to perform a task.


       a b c d

(A) 1 2 3 4

(B) 4 1 2 3

(C) 3 4 1 2

(D) 2 3 4 1

Answer: (B)

11. Human resource planning system includes

(A) Human resource supply forecast

(B) Human resource inventory

(C) Corporate plan

(D) All of the above

Answer: (A)


12. Who among the following propounded the concept of collective bargaining?

(A) Beatrice and Gompers

(B) Beatrice and Emerson

(C) Gompers and Emerson

(D) Gautt and Gompers

Answer: (Wrong question)


13. What are the benefits of human resource planning?

(A) Achieve economy in hiring new workers.

(B) Match personnel activities and future organization objectives efficiently.

(C) Improve the utilization of human resources.

(D) All of the above

Answer: (D)


14. Human Resource Management includes

1. Employee Grievance

2. Organizational climate

3. Job incentives

4. Recruitmentwww.netugc.com

5. Selection

Select the correct answer from the following:

(A) 1, 2, 3 and 4

(B) 1, 3, 4 and 5

(C) 1 and 5

(D) All of the above

Answer: (B)


15. Match the following:

a. Job Analysis                        1. Determining worth of a job.

b. Job Evaluation                    2. Examining how work adds value to the ongoing process.

c. Job Design                           3. Determining the pertinent facts about the job.

d. Work Flow Analysis           4. Organizing work into the tasks required to perform a specific job.


       a b c d

(A) 1 2 3 4

(B) 4 3 2 1

(C) 3 1 4 2

(D) 2 3 1 4

Answer: (C)


16. Which ratio explains that how much portion of earning is distributed in the form of dividend?

(A) Dividend – Debt Ratio

(B) Equity – Debt Ratio

(C) Pay-out Ratio

(D) Earning – Yield Ratio

Answer: (C)


17. Modern approach to financial management is

I. The total fund requirement of the firm.

II. The asset to be acquired.

III. Payment of dividend to shareholders.

(A) I only

(B) II only

(C) II & III only

(D) I, II & III

Answer: (D)


18. Participating preference shares are those which participate in the

(A) General meeting of the company

(B) Voting

(C) Profits over and above their fixed dividend

(D) Management of the company

Answer: (C)


19. Which of the following is one of the critical assumptions of Walters’ Model?

(A) All financing is done through retained earnings; external sources of funds like debt or new equity capital are not used.

(B) The retention ratio, once decided upon, is constant. Thus, the growth rate, (g = br) is also constant.

(C) The capital markets are perfect and the investors behave rationally.

(D) All of the above.

Answer: (A)


20. This consists of two lists of statements or terms and the candidate has to match an item in one list with an item in the other:

List-I                                                   List-II

(Statement)                                         (Terms)

a. Preventing hostile takeover             1. Management buyout

b. Leveraged buyout                           2. Green mail

c. Accounting for merger                    3. Pooling of interest

d. Financing for merger                      4. Cash offer


       a b c d

(A) 1 2 3 4

(B) 2 1 4 3

(C) 2 1 3 4

(D) 3 4 2 1

Answer: (C)

21. What kind of pricing strategy a firm should normally follow for marketing electronic goods?

(A) Penetration pricing strategy

(B) Skimming pricing strategy

(C) Cost plus pricing strategy

(D) All of the above

Answer: (Wrong question)


22. Which fact is true about on-line marketing?

(A) A website which is user-friendly.

(B) A website which is user-friendly and regularly updated.

(C) A website which is user-friendly regularly updated and make product’s graphical image available.

(D) A website which is user-friendly, regularly updated, provides product’s graphical image and product’s price is competitive.

Answer: (D)


23. Which of the following function involved under marketing management’s function?

1. Collection of market information

2. Marketing coordination

3. Marketing controlling

4. All the above


(A) 1 & 2

(B) 2 & 3

(C) 3 only

(D) 4 only

Answer: (D)


24. Two statements are given below:

Statement – I: Product concept of marketing holds that consumers would favour those products that are available and highly affordable.

Statement – II: Production concept of marketing holds that consumers would not buy enough of the company’s product unless the company undertakes a substantial promotional effort.

Choose the correct option from the four options given below:

(A) Statement I is correct and II is wrong.

(B) Statement II is correct and I is wrong.

(C) Both statements are correct.

(D) Both statements are wrong.

Answer: (D)


25. Match the following:

List-I                           List-II

a. Differentiation        1. How familiar and intimate consumers are with the brand.

b. Esteem                    2. The degree to which a brand is seen as different from others.

c. Relevance                3. How well the brand is regarded and respected.

d. Knowledge                         4. The breadth of a brand’s appeal.


       a b c d

(A) 1 2 3 4

(B) 2 3 4 1

(C) 3 4 1 2

(D) 4 3 2 1

Answer: (B)


26. Work measurement refers to

(A) The length of time it takes to complete a work task assigned to a specific job.

(B) Improving work methods.www.netugc.com

(C) Arrangement of machines according to operations.

(D) Planning the work and working for the plans.

Answer: (A)


27. Facility planning includes

(A) Determination of production capacity

(B) Determination of production facilities location

(C) Determination of the layout

(D) All the above

Answer: (D)


28. Match the following:

a. For fraction or proportion of defects          1. R-chart

b. For number of defects                                2. C-chart

c. For number of defects for unit                    3. nP-Chart

d. For monitoring process variability              4. P-Chart


       a b c d

(A) 1 2 3 4

(B) 4 3 2 1

(C) 2 1 4 3

(D) 3 4 1 2

Answer: (B)


29. Statement – I: One of the major causes of the industry for larger capacity is the argument that large facilities facilitate greater economies of scale. But the major concern for building big capacity is that funds will be tied up or scarcity of funds.

Statement – II: A viable alternative to larger capacity production facilities is to develop subcontractor and supplier networks.

(A) Both statements I & II are correct.

(B) Both statements I & II are false.

(C) Statement I is correct and II is false.

(D) Statement II is correct and I is false.

Answer: (A)


30. In a symmetrical distribution

(A) Mean, Median and Mode values are identical.

(B) Mean, Median and Standard Deviation are equal.

(C) Mean, Median and Correlation are equal.

(D) None of the above

Answer: (A)


31. From the following, identify the test which can be used both as parametric and non-parametric?

(A) ‘t’ test

(B) ‘F’ test

(C) ‘Chi-square’ test

(D) ‘Wil-coxon’ test

Answer: (C)


32. Arrange the following in ascending order in the testing of hypothesis:

(i) Determining the level of significance

(ii) Deciding the Statistical Test and computation

(iii) Setting the hypothesis

(iv) Decision


(A) (iii), (ii), (i) and (iv)

(B) (iii), (i), (ii) and (iv)

(C) (i), (iii), (ii) and (iv)

(D) (i), (iii), (iv) and (ii)

Answer: (B)


33. Y = a + bX refers to

(A) Y = independent variable, a = slope of the line, b = Y intercept and X = dependent variable

(B) Y = dependent variable, a = slope of the line, b = Y intercept and X = independent variable

(C) Y = independent variable, a = dependent variable, b = Y intercept and X = slope of the line

(D) Y = dependent variable, a = Y intercept, b = slope of the line and X = independent variable

Answer: (D)


34. Select the most appropriate option from Column B against the items in Column A:

Column A                                                                                           Column B

a. Computer used to operate large corporate systems and databases 1.Components of information system

b. Data flow diagram                                                                          2. RAID

c. Equipment, procedures and end user                                              3. Structured design


       a b c

(A) 3 2 1

(B) 2 3 1

(C) 1 2 3

(D) 2 1 3

Answer: (B)


35. According to Michael Porter, a strategy aims at producing products and services considered unique industry wide and directed at consumers who are relatively price-insensitive is known as

(A) Cost Leadership – Best Value

(B) Differentiation

(C) Focus – Low Cost

(D) Focus – Best Value

Answer: (B)


36. In context of Industry Analysis which matrix allows strategists to summarise and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological and competitive information?

(A) EFE Matrix

(B) CPM Matrix

(C) BCG Matrix

(D) IFE Matrix

Answer: (A)


37. Which among the following best describes the process of gaining competitive advantage in a firm?

(A) Strengths → Weaknesses → Distinctive Competencies → Competitive Advantage

(B) Weaknesses → Strengths → Distinctive Advantages → Competitive Advantages

(C) Weaknesses → Strengths → Distinctive Competencies → Competitive Advantages

(D) Distinctive Competencies → Weaknesses → Strengths → Competitive Advantages

Answer: (A)


38. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of the following five forces:

1. Rivalry among competing firms.

2. Potential entry of new competitors.

3. Potential development of substitute products.

4. Bargaining power of suppliers.

5. Bargaining power of consumers.

Identify the force which is central (most powerful) to remaining four:

(A) Potential development of substitute products.

(B) Potential entry of new competitors.

(C) Bargaining power of consumers.

(D) Rivalry among competing firms.

Answer: (D)


39. Match the following:

Organizational Structure                     Advantage

a. Functional Structure                        1. Clarity of project objectives

b. Divisional Structure                        2. Smooth delegation of authority and responsibility

c. Matrix Structure                              3. Simple and unexpensive

d. Strategic Business Unit (SBU)       4. Ease of fixing accountability


       a b c d

(A) 1 2 3 4

(B) 3 4 1 2

(C) 3 4 2 1

(D) 4 3 1 2

Answer: (B)


40. A sound business opportunity is the result of appropriate interaction between:

(A) Needs of the society

(B) Capabilities of an entrepreneur

(C) Resources available in the environment

(D) all of the above

Answer: (D)


41. “An entrepreneur always searches for change, responds to it and exploits it as an opportunity.” Who said it?

(A) F.W. Taylor

(B) Peter F. Drucker

(C) J.R. Tulsian

(D) Max Weber

Answer: (B)


42. An industrial unit, according to RBI, is sick if

(A) Incurred cash loss in the previous year.

(B) Likely to incur loss in the following year.

(C) Current ratio is less than 1: 1 with weak debt-equity ratio.

(D) all of the above.

Answer: (D)


43. Which is not the object of Entrepreneurship Development Programmes?

(A) To create successful entrepreneur

(B) To remove doubts of entrepreneurs and to give solutions to the problems

(C) To create awareness about Government schemes and programmes

(D) None of the above

Answer: (A)


44. Match the following:

a. Central Manufacturing Institute                             1. Deals with paper industry

b. Central Pulp and Paper Research Institute                         2. Deals with pollution control in Indian Tannerics

c. Central leather Research Institute                           3. Deals with Machine Tools

d. Electronic Service and Training Centre                  4. Deals with training, technical and consultancy services


       a b c d

(A) 1 2 3 4

(B) 3 1 2 4

(C) 2 3 4 1

(D) 4 3 1 2

Answer: (B)


45. The customer joining the queue and leaving it afterwards is defined as

(A) Jockeying

(B) Balking

(C) Reneging

(D) None of the above

Answer: (C)


46. Which among the following is not correct with regards to Clause 49 of SEBI Act?

(A) It came into effect from 31stDecember 2005.

(B) Clause 49 is related to the Listing Agreement to the Indian Stock Exchange.

(C) It desires 50 percent in dependent Directors.

(D) None of the above

Answer: (D)


47. Which of the following powers of Directors cannot be exercised without the consent of shareholders in General Meeting?

(A) Power to make calls on shareholders

(B) Power to make loans

(C) Power to buy back its shares

(D) Power to borrow monies exceeding the aggregate of the paid-up capital of the company and its free reserves.

Answer: (D)


48. The professional having high ranking and trained to uphold the highest standard and effective operations, compliance and administration as corporate governance, is known aswww.netugc.com

(A) Directors of Company

(B) Chairman of Company

(C) Company Secretary

(D) Shareholders

Answer: (C)


49. Governance is the system of values, policies and institutions by which a society manages its economic, political and social affairs through interactions within and among the state, civil society and private sector is defined by

(A) World Bank


(C) European Commission

(D) None of the above

Answer: (B)


50. Match the following with regards to environmental ethical issues:

a. Ozone Depletion                 1. Lead poisoning

b. Environmental Health         2. Deforestation

c. Logging                               3. Food controversies

d. Genetic Engineering           4. CFC


       a b c d

(A) 4 2 1 3

(B) 4 1 2 3

(C) 4 3 2 1

(D) 4 3 1 2

Answer: (B)