2013 September UGC NET Solved Question Paper in Management Paper 2

1. The sum of the value of all final goods and services produced within a country and net factor income from abroad is termed as


(B) Nominal GDP


(D) Real GDP

Answers: (A)


2. If a firm raises Rs. 1, 00,000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that equates the present value of cash inflows with the present value of cash outflows is referred to as

(A) Explicit cost

(B) Implicit cost

(C) Specific cost

(D) Future cost

Answers: (A)


3. The major objective of economists to monopolies is

(A) Lack of technological progress in such industries.

(B) The dangerous impact on democratic government.

(C) The inability in an industry where there is a single producer.

(D) The tendency to restrict output and charge higher price.

Answers: (D)


4. Statement I: Demand for a commodity refers to quantity of the commodity demanded at a certain price during any particular period of time.

Statement II: Contraction of demand is the result of increase in the price of the goods concerned.

(A) Both I & II are correct.

(B) Both I and II are incorrect.

(C) I is correct and II is incorrect.

(D) II is correct and I is incorrect.

Answers: (A)


5. Match the items given in List-I with most suitable options given in List-II.

List – I                                                                                                                        List – II

(a) Rate of discount which equates the net present value to zero.                             (i) Payback period

(b) Ratio of present value of cash inflows to the cash outflow.                                 (ii) Internal Rate of Return

(c) Percentage of annual net income earned on average fund invested in a project. (iii) Profitability Index

(d) Investment divided by annual net cash inflow.                                                    (iv) Average Rate of Return


       (a) (b) (c) (d)

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

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

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

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

Answers: (C)


6. The process through which individuals attempt to determine the causes behind others’ behaviour is known as

(A) Perception

(B) Attitude

(C) Attribution

(D) Social identity theory

Answers: (C)


7. Which theory of human motivation focuses on personal perceptions of the performance process?www.netugc.com

(A) Adam’s Theory of Inequality

(B) McClelland’s Need Theory

(C) Vroom’s Expectancy Theory

(D) Alderfer’s ERG Theory

Answers: (C)


8. Annual Reports, Balance Sheets, Brochures and Advertisements in organisational communication are the means to aim at

(A) Influencing

(B) Image building

(C) Group building

(D) Credibility building

Answers: (B)


9. Match the following:

a. Attitudes                 1. Beliefs that individuals possess certain characteristics because of their membership in certain groups.

b. Job Satisfaction       2. Negative attitude toward the members of specific groups, based solely on the fact that they are members of those groups.

c. Prejudice                 3. Positive or negative attitudes held by individuals toward their jobs.

d. Stereo types            4. Relatively stable clusters of feelings, beliefs and behavioural intentions toward specific objects, people or institutions.


       a b c d

(A) 1 2 3 4

(B) 2 3 4 1

(C) 3 4 1 2

(D) 4 3 2 1

Answers: (D)


10. Match the following:

a. Delegating                           1. A function of a situation wherein a leader is effective only when the styles used to influence and alter the situation is appropriate.

b. Situational theory                2. Low nurturing and low regulating behaviour.

c. Grid training                        3. A function of a situation wherein a leader permits subordinates to take part in decision making and permit them a considerable degree of autonomy.

d. Participative Leadership     4. A multi-step process designed to cultivate concern for people and concern for production.


       a b c d

(A) 1 2 3 4

(B) 2 1 4 3

(C) 3 2 4 1

(D) 4 3 1 2

Answers: (C)

11. On-the-job training methods are not based on

(A) Demonstration methods

(B) Interactive methods

(C) Vestibule Training methods

(D) Apprentice training method

Answers: (B)


12. Minimum wage means

(A) Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and provision for evil days.

(B) Wages paid in proportion to workman’s work efficiency.

(C) A wage sufficient to satisfy the workman’s basic needs.

(D) A sum of money paid under contract by an employer to a workman for services rendered.

Answers: (C)


13. Which of the following statement is true?

(A) Profit sharing is an agreement freely entered into by which the employees receive share fixed in advance from the organization’s profits.

(B) An experiment in profit shares on a wide scale would therefore be definitely undertaking a voyage of an unchartered sea.

(C) Profit distribution under a profit sharing plan are used to fund employee retirement plans.

(D) All of the above.

Answers: (D)


14. Performance appraisal includes

(A) Check reviews done by the supervisors.

(B) Review his performance in relation to the objectives and other behaviours.

(C) Promote employees for self-appraisal.

(D) All of the above.

Answers: (D)


15. Match the following:

a. Human Resource Strategy              1. A goal-directed approach in which workers and their supervisors set goals together for the upcoming appraisal period.

b. Compensation                                 2. Time during which employees can choose not to be at work.

c. Flexitime                                         3. A legally required benefit that provides medical care, income continuation and

rehabilitation expenses.

d. Management by Objectives            4. A firm’s deliberate use of human resources to help it to gain or maintain an edge against its competitors.


       a b c d

(A) 1 2 3 4

(B) 4 3 2 1

(C) 2 3 4 1

(D) 3 4 1 2

Answers: (B)


16. In which case, the acquirer puts pressure on the management of the target company by threatening to make an open offer; the board capitulates straight away and agrees for settlement with the acquirer for change of control.

(A) Poison Put

(B) Bear Hug

(C) Poison Pill

(D) None of the above

Answers: (B)


17. Which of the following method of incorporation of risk in the capital budgeting decision framework is useful for situations in which decisions at one point of time also affect the decisions of the firm at some later date?

(A) Certainty Equivalent Approach

(B) Probability Distribution Approach

(C) Risk-adjusted Discount Rate Approach

(D) Decision-tree Approach

Answers: (D)


18. In which of the approach, the market value of the firm depends upon the EBIT and the overall cost of capital

(A) Net Income Approach

(B) Net Operating Income Approach

(C) Modigliani-Miller Approach

(D) None of the above

Answers: (B)


19. Which is the assumption of Modigliani and Miller approach to cost of capital?

(A) The firms can be classified into homogeneous risk class.

(B) The capital markets are assumed to be perfect.

(C) All investors have the same expectations from a firm’s net operating income which is necessary to evaluate the value of a firm.

(D) All of the above.

Answers: (D)www.netugc.com


20. Match the following:

List – I                                    List – II

(Functions of Finance)            (Significance)

a. Financial Statements           1. Check on Financial Activities

b. Administration of Tax        2. Reduction of Tax Liability

c. Internal Audit                     3. Allocation of Fund

d. Budgeting                           4. Income Statement


       a b c d

(A) 1 2 3 4

(B) 4 3 2 1

(C) 4 2 1 3

(D) 2 3 4 1

Answers: (C)

21. A deliberate and careful choice of organisation, product, price promotion, place strategies and policies best define the concept of

(A) Marketing Mix

(B) Product Mix

(C) Market Penetration

(D) Market Segmentation

Answers: (A)


22. Rational motives in buying process are explained as

(A) Motives based on careful, logical reasoning and self-acceptance.

(B) Motives based on sensual satisfaction, fear and entertainment.

(C) Activity buyer adopts to satisfy buying needs.

(D) All of the above.

Answers: (A)


23. Which of the following combination, according to hierarchy of effects model is correct?

(A) Awareness – Liking – Knowledge – Conviction – Preference – Purchase.

(B) Awareness – Knowledge – Liking – Preference – Conviction – Purchase.

(C) Awareness – Liking – Knowledge – Conviction – Purchase – Preference.

(D) Awareness – Preference – Knowledge – Liking – Preference – Purchase.

Answers: (B)


24. 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)

I. Brands which are evaluated for the purchase decision.                  1. Consideration set

II. Brands which are considered by the buyer for evaluation.           2. Evoked set

III. Brands which are disliked and avoided.                                      3. Inept set

IV. Brands which the buyer is aware but is indifferent towards it.   4. Inert set


I           II         III        IV

(A)       2          3          1          4

(B)       1          2          3          4

(C)       2          1          3          4

(D)       2          1          4          3

Answers: (B)


25. “Marketing concept is the recognition on the part of management that all business decisions at the firm must be made in the light of customer needs and wants, hence that all marketing activities must be under one supervision and that all activities of a firm must be coordinated at the top in the light of market requirements.” Who said it?

(A) Lazo and Carton

(B) Schwartz G

(C) King RL

(D) C.P. Mc Namara

Answers: (Wrong question)


26. Which one of the following is not a qualitative forecasting method?

(A) Educated guess

(B) Executive Committee Consensus

(C) Delphi method

(D) Linear regression method

Answers: (D)


27. Statement I: Mean (–X) chart do not give the desired result about process variability.

Statement II: Range (R) chart monitors process variability.

(A) Statement I is correct, but Statement II is false.

(B) Statement II is correct, but Statement I is false.

(C) Both Statements I and II are correct.

(D) Both Statements I and II are false.

Answers: (C)


28. Which one is not a part of control charts for attributes?

(A) P-chart

(B) σ-chart

(C) np-chart

(D) c-chart

Answers: (B)


29. There are different phases in a Operations Research Project. They are

(i) Research phase

(ii) Action phase

(iii) Judgement phase

The correct sequence of these phases is

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

(B) (iii), (i), (ii)

(C) (ii), (iii), (i)

(D) (iii), (ii), (i)

Answers: (B)www.netugc.com


30. The Graphical method can be used to solve

(A) A Linear Programming Problem (LPP) with all integer data.

(B) A LPP with two decision variables.

(C) Any LPP.

(D) A transportation problem with two origins and two destinations.

Answers: (B)


31. A vendor can make a profit of Rs. 3,000 with a probability of 0.4 or make a loss of Rs. 1,000 with a probability of 0.6. What is his expected profit?

(A) Rs. 600

(B) Rs. 800

(C) Rs. 1,000

(D) Rs. 500

Answers: (A)


32. If the sample size is less than 50, which non parametric test can be used to test the independence of attributes?

(A) Chi-square test

(B) Fisher Irwin test

(C) Cochran Q test

(D) Kruskal Wallis test

Answers: (B)


33. Match the items given in List-I with most appropriate options given in List-II.

List – I                                                                                                List – II

(a) Centroid Method                                                                           (i) Multiple Regression

(b) Hierarchical Method                                                                      (ii) Factor Analysis

(c) Relationship between a single metric dependent and two or more independent variables                                   (iii) MANOVA

(d) The main and interactive effects of categorical variables on multiple dependent interval variables.       (iv) Cluster Analysis


        (a) (b) (c) (d)

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

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

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

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

Answers: (B)


34. Identify the window not associated with SPSS.

(A) Editor

(B) Syntax

(C) Output

(D) Format Cells

Answers: (D)


35. Match the items given in Column-A with the items given in Column-B.

Column – A                                                                                                               

 Column - B

(a) A process to upgrade the quality of the data before it is moved into a data warehouse.                                                 (i) Pattern recognition

(b) A system that is used to run the business in real time and is based on current data.                                            (ii) Data Scrubbing

(c) A critical success factor in data mining of large data store.                                                                                  (iii) Operational system


       (a) (b) (c)

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

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

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

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

Answers: (A)


36. In BCG Matrix which division represents the organisation’s best long-run opportunities for growth and profitability?

(A) Question marks

(B) Stars

(C) Cash Cows

(D) Dogs

Answers: (B)


37. In a comprehensive strategy formulation framework which matrix reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies.

(A) SPACE Matrix

(B) SWOT Matrix

(C) QSPM Matrix

(D) Competitive Profile Matrix (CPM)

Answers: (C)


38. Stage 2 of strategy formulation consists of

(A) EFE Matrix, the IFE Matrix and the Competitive Profile Matrix (CPM).

(B) SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal- External (IE) Matrix, and the Grand Strategy Matrix.

(C) Quantitative Strategic Planning Matrix (QSPM).

(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix (QSPM).

Answers: (B)


39. Match the following:

Term                Explanation

a. Strategy       1. Enduring statements of purpose that distinguish one business from other simple firms.

b. Vision          2. Specific results that an organization seeks to achieve.

c. Mission        3. What do we want to become?

d. Objectives   4. Means by which long term objectives will be achieved.


       a b c d

(A) 4 3 1 2

(B) 4 2 3 1

(C) 1 3 2 4

(D) 1 2 3 4

Answers: (A)


40. Match the following:

List – I                                                List – II

(a) Italian Culture                    i. Importance on group loyalty and consensus

(b) American Culture              ii. Employment as workers of those who are agreeable, respectful and obedient rather than innovative, creative and independent.

(c) Mexican Culture                iii. Willing to do business with individuals they do not know.

(d) Japanese Culture               iv. A culture where in you do not soften up executives with praise before criticize.


      a b c d

(A) i ii iii iv

(B) iv iii ii i

(C) ii iii iv i

(D) iii iv i ii

Answers: (B)


41. An Entrepreneur who is dominated more by customs, religions, traditions and past practices and he is not ready to take any risk is called as

(A) Drone Entrepreneur

(B) Adoptive Entrepreneur

(C) Fabian Entrepreneur

(D) Innovative Entrepreneur

Answers: (C)


42. “Poverty is an artificial creation. It does not belong to human civilization and we can change that and can make people come out of poverty through redesigning our institutions and policies.” This preamble refers to

(A) Women Entrepreneurship

(B) Corporate Entrepreneurship

(C) Social Entrepreneurship

(D) None of the above

Answers: (C)


43. Match the following:

List – I                                    List – II

(Subject)                                  (Technique)

a. Entrepreneurship                 1. Innovation

b. Marketing                            2. Promotion Mix

c. Inventory Management       3. Reorder Level

d. HR Planning                       4. Appraisals


       a b c d

(A) 1 3 2 4

(B) 1 2 3 4

(C) 4 3 2 1

(D) 4 2 3 1

Answers: (B)


44. _______ means identifying and imitating the best in the world at specific tasks and functions.

(A) Quality circle

(B) Outsourcing

(C) Bench marking

(D) Continuous Improvement

Answers: (C)


45. Match the following:

(a) Action planning                 (i) New Actions are taken and old habits are broken.

(b) Accountability                   (ii) It is the periodic review of what has already been executed.

(c) Working the plan               (iii) It is the art of delegation to implement a business plan.

(d) Reviewing the progress     (iv) Making decisions relating to the order in which the Business plan is implemented.


       (a) (b) (c) (d)

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

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

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

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

Answers: (B)


46. Which of the following duties is not a general duty of directors of a company?

(A) Duty of good faith

(B) Duty of care

(C) Duty to attend Board Meeting

(D) Duty not to delegate

Answers: (C)


47. The principles to be followed for corporate social responsibility are

(A) involvement of stakeholders.

(B) maintaining transparency in reporting.

(C) independent verification of policies and outcome.

(D) All of the above.

Answers: (D)


48. Match the following:

List – I                                                List - II

(a) Value                                             (i) Aham Brahmasmi

(b) Unethical behaviour                      (ii) Recycling Waste

(c) Indian ethos                                   (iii)Bribery

(d) Environmental responsibility         (iv) Trust worthiness


      (a) (b) (c) (d)

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

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

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

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

Answers: (B)


49. The obligation of an organization behave in a ethical way is known as

(A) Knowledge about ethics

(B) Social responsibility of business

(C) Organisational behaviour

(D) Business without ethics

Answers: (B)


50. Identify the correct sequence of steps in a value identification process:

(i) Define the role of executive in leading the staff.

(ii) Learn about and discuss the power of shared values.

(iii) Obtain consensus that the leaders are committed to creating value based workplace.

(iv) Provide written material the executives can share with their reporting staff.


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

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

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

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

Answers: (C)