Economic Environment Of Business

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IMT (Assignment)
1YR PGDBA
Semester 1

ECOC514 Economic Environment Of Business
ECOC514 SET 1 DEC 2018
Assignment Test -1

1.Demand curve slopes downward due to
-income effect
-substitution effect
-diminishing marginal utility
-all of the above

2.An increase in the price of a good normally increases the
-demand for its substitutes
-supply of compliments
-purchasing power of consumer incomes
-purchasing power of consumer divide incomes

3.An isoquant is
-least cost combination
-a locus of input combination that give the same level of output
-a locus of input combination that give different level of output
-a locus of product combination that give the same level of satisfaction

4.If planned spending exceeds planned output, the result is
-a reduction in GDP
-unintended inventory increases
-unintended inventory reduction
-an increase in government purchases
5.Production of an additional unit of output by the firm gives rise to
-Explicit cost
-implicit cost
-incremental cost
-marginal cost

6.If future price changes were perfectly anticipated by both borrowers and lenders ,what would happen to the real interest rate in the future if the price level changed?
-it would increase
-it would decrease
-it would not change
-it would decrease by the amount of the price increase

7.Negative cross-price elasticity of demand indicates that
-the product is an inferior good
-the product is a necessity
-the product is a luxury
-the two products are compliments

8.when the first stage of law of variable proportions begins to operate the TVC curve
-falls at an increasing rate
-rises at an increasing rate
-falls at a decreasing rate
-rises at a decreasing rate

9.In determining comparative advantage, cost is measured in terms of
-foreign currency
-opportunities forgone
-domestic currency
-gold only

10.in actability
-each country consumption possibilities are the same as its production possibilities
-equilibrium is attained with the maximum gains from specialization and trade
-equilibrium is attained with the maximum amount of international trade
-a nation is governed by an individual with absolute authority

11.if an imperfectly competitive firm is selling its 100th unit of output for $35,its marginal revenue
-will be greater than $35
-will be less than $35
-will also be $35
-may be either greater or less than $35

12.the equation for calculation of gross domestic product through expenditure approach is
-Y=C+I+G+(X-M)
-Y=C+I+G+(X+M)
-Y=C+I+G(X-M)
-Y=C+I+(X-M)

13.price discrimination refers to
-the differences between the prices a purely competitive seller and a purely monopolistic seller would charge
-the selling of a given product at different prices that do not reflect cost differences
-any price above that which is equal to minimum average total cost
-selling a given product for different prices at two different points in time

14.As a result of an increased deficit associated with discretionary fiscal policy
-both the interest rate and real output fall
-both the interest rate and nominal output rise
-the interest rate falls and real output rises
-the interest rate rises and real output falls

15.A consumer maximizes utility when the marginal utilities of all goods
-having positive money prices that are equal to zero
-are equal
-are maximized
-are exactly proportional to their market prices

16.when prices increases at a such speed that the value of money falls drastically is called as
-headline inflation
-core inflation
-hyperinflation
-stagflation

17.If the supply of a product increases, then
-more will be purchased at the same price
-the price of a product must have declined
-demand for the good must have increased
-producers offer less for sale at each possible price

18.The money demand curve describes how the quantity of money demanded varies with
-nominal GDP
-the interest rate
-real GDP
-the price level

19.A purely competitive firm is in short run equilibrium and its MC exceeds its AC.it can be conclude that
-firms will leave the industry in the long run
-the firm is realizing an economic profit
-the firm is realizing a loss
-this is an increasing cost industry

20.Which of the following will not increase when net taxes decrease ?
-saving
-disposable income
-consumption
-government expenditure

21.GDP price index is calculated by the formula
-Nominal GDP/Real GDP*100
-Real GDP /nominal GDP*100
-Nominal GDP/real GDP
-Real GDP /Nominal GDP

22.Cross elasticity between a battery and a car will be
-positive
-negative
-Unitary
-Zero

23.The firm is a price taker under
-perfect competition
-oligopoly
-monopolistic competition
-All of the above

24.Gross domestic product is
-the sum of money value of all intermediate goods and services produced with in the domestic territories of a country during an accounting year
-the aggregate final goods and services produced during an accounting year
The aggregate intermediate goods and services produced during an accounting year
-the sum of money value of all final goods and services produced with in the domestic territories of a country during an accounting year

25.Short run cost curves behaviour is explained by
-laws of returns
-economies of scale
-law of variable proportion
-law of increasing returns

26.If total revenue falls ,when price falls ,the demand of the product will be
-elastic
-unitary elastic
-inelastic
-perfectly elastic

27.For a perfectly competitive firm the average revenue
-coincides with total revenue
-is lower than total revenue
-is equal to marginal revenue
-is higher than marginal revenue

28.In the long run, a monopolistic competitor
-incurs losses
-makes economic profit
-reaps normal profit
-any of the above

29.The percentage change in the demand for film divided by the percentage change in the price of cameras indicates
-the cross -price elasticity of demand between film and cameras
-the cross-price elasticity of demand for photographs
-the price elasticity of demand for film
-the price elasticity of demand for cameras

30.Marginal utility is defined as the
-average amount of satisfaction gained from consuming a product
-total amount of satisfaction gained from consuming a product
-additional satisfaction gained from consuming one more unit of a product
-total amount of satisfaction gained from consuming a product divided by the number of units consumed.

Assignmnet Test – 2

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1.A government -imposed price above floor above the market price of milk would increase consumer expenditure on milk only if
-demand is elastic
-supply is inelastic
-demand falls
-demand is inelastic

2.the equilibrium interest rate is determined by
-both the supply of and demand for money
-demand for money
-supply of money
-reserve bank of india

3.Gross domestic product can be calculated by adding———- in an accounting year
-adding income earned by all factor inputs
-expenditure approach
-adding output produced by all sectors
-any of these method

4.which of the following is true concerning the relationship between the marginal propensity to consume and the consumption function?
-the larger the MPC the higher the level of autonomous consumption
-the larger the MPC the steeper the consumption function
-the larger the MPC the larger the MPS
-the smaller the MPC the steeper the consumption function

5.If a pure monopolist is producing a level of output in excess of the MR=MC output
-it will be the interest of the firm and the society to reduce output
-it will be the interest of the firm and society to increase output
-it will be in the interest of the firm but not necessarily of society to reduce output
-the firm may or may not be maximizing profits

6.An arbitrageur in foreign exchange is a person who
-buys foreign currency, hopping to profit by selling it at a higher exchange rate of some later date
-earns illegal profit by manipulating foreign exchange
-causes differences in exchange rates in different geographic market
-simultaneously buys large amount of currency in one market and sells it in another market

7.If future price changes were perfectly anticipated by both borrowers and lenders, what would happen to the real interest rate in the future if the price level changed?
-it would increase
-it would decrease
-it would not change
-it would decrease by the amount of the price increase

8.A typical situation when stagnation and inflation coexist is called as an
-Disinflation
-Hyperinflation
-Stagnation
-Headline inflation

9.Point of tangency between isoquant and is cost denotes
-producer equilibrium
-least cost combination
-optical factor combination
-all of the above

10.price are measured in india by
-consumer price index
-wholesale price index
-consumer price index and wholesale price index
-None of these

11.When economist say that people act as rational decision makers, that means
-they gather all relevant information before making their purchases
-once a pattern of behaviour has been established people tend to become set in their ways
-people respond in predictable ways to changes in costs and benefits
-people rarely make errors when they are permitted to make transactions

12.production of an additional units of output by the firm gives rise to
-Explicit cost
-implicit cost
-incremental cost
-marginal cost

13.A firm earns maximum profit when
-MC=MR
-MC=ATC
-Total revenue equals total cost
-TR is greater than TC by the larger amount

14.infaltuon rates differ in metropolitan regions MOSTLY because of
-differences in retail prices
-differences in housing prices
-transportation cost
-all of these

15.Marginal utility is defined as the
-Average amount of satisfaction gained from consuming a product
-total amount of satisfaction gained from consuming a product
-additional satisfaction gained from consuming more unit of a product
-total amount of satisfaction gained from consuming a product divided by the number of units consumed

16.In choosing between burger and shirts, consumer increase their purchases of each until
-the marginal utility from the last rupee spent on one is the same as on the another
-the marginal utility from the last rupee of burger is the same as from the last shirt
-the total utility from one is the same as from the other
-none of the above

17.A movement on the demand curve will take place when there is
-a change in own price of the product
-a change in price of a substitute
-a change in consumer preferences
-an increase in per capita income

18.A firm is in equilibrium when
-marginal revenue is equal to marginal cost
-marginal revenue is more than marginal cost
-marginal cost of the firm is rising
-both conditions 1 and 2 are fulfilled

19.the law of diminishing marginal utility states that
-the total utility falls continuously additional unit of a product
-the marginal utility falls continuously with consumption additional unit of a product
-the average utility falls continuously with consumption additional unit of a product
-the marginal utility falls continuously with consumption total unit of a product

20.An increase in the money supply leads to a(n)
-decline in interest rates ,an increase in investment and an increase in aggregate demand
-decline in interest rate a decrease in investment and an increase in aggregate demand
-decline in interest rate an increase in investment and a decline in aggregate demand
-increase in interest rate an increase in investment and an increase in aggregate demand

21.If the economy experiences a contractionary gap and the RBI stimulates the economy
-The money supply is decreasing because the RBI makes open market sales
-The money supply is increasing because the RBI makes open market purchases
-The money supply is increasing because the RBI prints more money
-The money supply is decreasing because the RBI hoards money

22.when prices increase at a such speed that the value of money falls drastically is called as
-Headline inflation
-Core inflation
-Hyperinflation
-Stagflation

23.If marginal product of labour is lesser than average product of labour then average product of labour is
-Constant
-Decreasing
-Increasing
-Maximum

24.Cartel is
-a form of overt collusion
-a form of tacit collusion
-used to explain price rigidity
-non collusive oligopoly

25.To close a contractionary gap using fiscal policy, the government can
-Increase government spending by the size of the gap
-decrease government spending by the size of the gap
-increase government spending by less than the size of the gap
-decrease government spending by more than the size of the gap

26.The firm is a price taker under
-Perfect competition
-Oligopoly
-monopolistic competition
-all of these

27.Demand curve slopes downward due to
-income effect
-substitution effect
-diminishing marginal utility
-all of the above
28.Demand pull inflation is due to
-increase in money supply
-increase in purchasing power
-increasing in income with the population
-all of these

29.which of the following will not increase when net taxes decrease?
-saving
-disposable income
-consumption
-government expenditure

30.Total fixed cost includes cost of
-plant and machinery
-plant and machinery and depreciation cost of plant
-routine maintenance of plant
-plant and machinery and routine maintenance of
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Financial Accounting

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FINC512. Assignment

1.Which of the following is an operating item?
Interest paid
salry paid
share capital issued
2 . Accounting Standards are issued by which of the following entity, in India?
ICAI
SEBI
RBI
IFRS
3 . A business has paid the rent for the period Jan-March 2016 in June’2016, in which year financial statements this rent expenses will be recorded?
2015
2016
2017
All of the above
4 . Both assets and owner’s equity would be increased by __________________
capital brought in
Purchase of an asset on credit.
Payment of creditors.
Proprietors drawings.
5 . Who approves the financial statements of a company?
Auditors
Shareholders
Management
Board of Directors
6 . Which of the following can be categorized as discretionary Expense
Purchase
Salary
Repair & Maintenance
R&D Expense
7 . The Share Capital of a company is Rs 10 Cr divided in 10 Lac number of shares. Calculate the face value of share
Rs 100
Rs 1000
Rs10
Rs1
8 . Which of the following statement shows the financial position of a business entity as on date?
Income Statement
Balance Sheet
Trial Balance
Cash Flow Statement
9 . Which of the following self generated intangible asset can be recorded in books of account?
Goodwill
Technical Know-How
Software
All of the Above
10 . If manufacturing expenses are Rs 20000, interest expenses Rs 4000, cash sales is Rs 30000. Increase in inventory and debtors is Rs 5000 and Rs 7000 respectively. While increase in accounts payable is 9000. Calculate the cash flow from operations?
Rs 9000
Rs 3000
Rs 7000
Rs 12000
11 . Proceeds on the sale of fixed assets will be shown in which part of the cash flow statement, if indirect method is followed?
Operating Cash Flow
Financing Cash Flow
Investing Cash Flow
None of the above
12 . XYZ Ltd paid Salaries of Rs 200000 in the month of March’2016. Journalize the transaction.
Cash A’c Debited to Salary
Salary A/c Debited to Cash
Employees A/c Debited to Cash
Employees A/c Debited to Salary
13 . Security Premium Reserve is an example of ________________
Revenue Reserve
Capital Reserve
Reserve Capital
Revaluation Reserve

14 . Which of the following can be categorised as Revenue?
Sale of goods
Sale of Old Furniture
Dividend Received
All of the above
15 . In which of the following books, seprate account is maintained for each item?
Ledger
Accounting Equation
Trial Balance
Journal
16 . Credit sales for the year is Rs 100000 and closing debtors are Rs10000. Calculate the collection period of the firms?
10 days
36.5 days
27.39 days
None of the above

17 . Capital contributed by owners is recorded as liability as per which of the following concept?
Monetary Unit
Economic Entity
Going Concern
Dual Aspect

18 . ABC Ltd Purchased Machinery on 1st October 2017 at cost price of Rs 5 Lacs. There is no salvage value and estimated useful life of Machinery is 5 years. How much depreciation should be charged for Year 2017-18?
1 Lac
Zero
50000
None of these
19 . A new firm commenced business on 1st January 20016 and purchased goods costing Rs. 90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the end of the year the cost of goods still unsold was Rs. 12,000. Sales during the year Rs.1,20,000. What is the gross profit earned by the firm?
Rs 36000
Rs 30000
Rs 42000
Rs 38000
20 . Loss on the sale of Fixed Assets will be shown in which part of the cash flow statement, if indirect method is followed?
Operating Cash Flow
Financing Cash Flow
Investing Cash Flow
None of the above
21 . Which of the following is liquidity ratio
Debt to Equity Ratio
Return on Investment
Total Asset Turnover Ratio
Current Ratio

22 . In which of the following books, transactions are first time recorded?
Ledger
Accounting Equation
Trial Balance
Journal
23 . Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000. If Sales is Rs 35000 then calculate the Net Profit Margin?
0.2285
0.7714
0.51
0 0.0657
24 . Purchase of machinery against issue of shares will be shown in which part of the cash flow statement?
Operating Cash Flow
Financing Cash Flow
Investing Cash Flow
None of the above
25 . A credit sale of goods to Mohan should be debited to
Sales account
Mohan account
Goods account
Purchase account

26 . Which of the following is an financing item?
Interest paid
Salary paid
Dividend received
Share capital issued

27 . While preparing cash flow statements, the repayments of a loan during the year should be included under the heading of
Operating Cash Flow
Financing Cash Flow
Investing Cash Flow
None of the above

28 . The balance of cash account indicates______________
Net income for the period
Net loss for the period
Net cash on hand
Net worth of the business

29 . Which of the following statement shows the Net Profit/Loss earned by a business entity?
Income Statement
Balance Sheet
Trial Balance
Cash Flow Statement
30 . Every accounting transaction must at least affect -_________accounts?
One
Two
Three
Four
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Test-1 (2019) FNC-512
1. A business has paid the rent for the period Jan-March 2016 in Jllle 2016, in which year financial statements this rent expenses will be recorded?

2015
2016
2017
All of the above

2. Security Premium Reserve is an example of
Revenue Reserve
Capital Reserve
Reserve Capital
Revaluation Reserve
3. In which of the following books, separate account is maintained for each item?
Ledger
Accounting Equation
Trial Balance
Journal
4. Credit sales for the year is Rs 100000 and closing debtors are RslOOOO. Calculate the collection period of the firm
10 days
36.5 days
27.39 days
None of the above
5. Advance from Customers is a example of
Asset
Liability
lncome
Expense
6. Both assets and owner’s equity would be increased by
capital brought in
Purchase of an asset on credit.
Payment of creditors.
Proprietors drawings.
7. The balance cash account it indicates
Net income for the period
Net loss for the period
Net cash on hand
Net worth of the business

8. Capital continued by owners is recorded as liability as per which of the following concept.
Monetary Unit
Economic Entity
Going Concern
Dual Aspect
9. Which of the following can be categorized as discretionary Expense
Purchase
Salary
Repair & Maintenance
R&D Expense
10. Which of the following self-generated intangible asset can be recorded in books of account.
Goodwill
Technical Know-How
Software
All of the Above
11. On 1st April 2017 P Ltd sells 100000 shares of Dabur India Ltd to Q Ltd at Rs 400 per share (Market price on that day) with an agreement to repurchase the same at Rs 4 12 per share on 31st Dec 2017. How the transaction should be presented in financial statements of P Ltd
Sale of Investment
Sale of Shares
Borrowings
Investment
12. A credit sale of goods to Mohan should be credited to
Sales account
Mohan account
Goods account
Purchase account
13. Which of the following statement shows the financial position of a business entity as on date?
Income Statement
Balance Sheet
Trial Balance
Cash Flow Statement
14. XYZ Ltd paid Salaries of Rs 200000 in the month of March’2016. Journalize the transaction.
Cash Ale Debited to Salary
Salary Ale Debited to Cash
Employees Ale Debited to Cash
Employees Ale Debited to Salary
15. Proceeds on the sale of fixed assets will be shown in which part of the cash flow statement, if indirect method is followed?
Operating Cash Flow
Financing Cash Flow
Investing Cash Flow
None of the above
16. A credit sale of goods to Mohan should be debited to
Sales account
Mohan account
Goods account
Purchase account
17. Which of the following is a financing item?
Interest paid
salary paid
dividend received
share capital issued
18. Which of the following is basic accounting equation?
Capital-Liabilities =Assets
Assets + Liabilities = Capital
Assets+ Capital = Liabilities
Liabities+ Capital =Assets
19. Wages paid to workers must be debited to account
Wages
Machinary
Factory Expenses
Office Expenses
20. Which of the following is an example out Business liability?
Land
Building
Cash
Creditors
21. In which of the following firm structure liability of owners is limited
Sole Proprietorship
Ltd Liability Partnership
Pvt. Ltd Company
Public Ltd Company

22. Decline in the value of intangible assets in a given year is known as.
Depreciation
Amortization
Depletion
Any of the above_
23. If manufacturing expenses are Rs 20000, interest expenses Rs 4000, cash sales is Rs 30000. Increase in inventory and debtors is Rs 5000 and Rs 7000 respectively. While increase in accounts payable is 9000. Calculate the cash flow from operations?
Rs 9000
Rs 3000
Rs 7000
Rs 12000
24. Higher Debt-Equity ratio indicates
High Operating Risk
Low Operating Risk
High Financial Risk
Low Financial Risk
25. in which of the following firm structure compliance cost is maximum
Sole Proprietorship
Ltd Liability Partnership
Pvt. Ltd Company
Public Ltd Company
26. In which of the following form of business, income is taxed separately from its owners
Sole Proprietorship
Partnership
Corporation
All of the above

27. In which of the following statement, final balances of all the accounts are prepared in the form of a list
Ledger
Accounting Equation
Trial Balance
Journal

28. If total liabilities decreased by Rs20000 and stockholders’ equity increased by Rs5,000 during a period of time, then total assets ” must change by what amount and direction during that same time period?
Rs l5000 increase
Rs l5000 decrease
Rs 25000 increase
Rs 25000 decrease

29. ABC Ltd Purchased Machinery on 1st October 2017 at cost price of Rs 5 Lacs. There is no salvage value and estimated useful ” life of Machinery is 5 years. How much depreciation should be charged for Year 2017- 18?
1 Lac
Zero
50000
None of the above

30. While preparing cash flow statements, the repayments of a loan during the year should be included wider the heading of.
Operating Cash Flow
Financing Cash Flow
Investing Cash Flow
None of the above
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Assignment -2 ( 2019 ) FNC -512
1. Wages paid to workers must be debited to account
Wages
Machinary
Factory Expenses
Office Expenses
2. When a Liability is increased, it is recorded on the
Credit Side
Debit Side
Left Hand Side
Any of the above
3. Capital continued by owners is recorded as liability as per which of the following concept?
Monetary Unit
Economic Entity
Going Concern
Dual Aspect
4. Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000. If Sales is Rs 35000 then calculate the Net Profit Margin?

00.2285
00.77 14
00.51
00.0657
5. Credit sales for the year is Rs I 00000 and closing debtors are Rs I 0000. Calculate the collection period of the firm?
10 days
036.5 days
027.39 days
None of the above
6. On 1st April 2017 P Ltd sells 100000 shares of Dabur India Ltd to Q Ltd at Rs 400 per share (Market price on that day) with an agreement to repurchase the same at Rs 412 per share on 31st Dec 2017 . How the transaction should be presented in financial statements of P Ltd.
Sale of Investment
Sale of Shares
Borrowings
Investment
7. In order to reflect the efficiency in debtor’s management, Debtor turnover ratio should be. ?
lncreased
Decreased
Kept Constant
None of the above
8. Ram’s account in the accounts payable ledger has a Rs.2000 beginning balance. After a transaction for Rs.500 is posted from the plD’chasesjolnal, the balance in Ram’s account is __
1500 Credit
1500 Debit
2500 Credit
2500 it

9. credit sale of goods to Mohan should be credited to
Sales account
Mohan account
Goods account
Purchase account
10. Every accounting transaction must at least affect accounts?
One
Two
Three
four
11. loss on the sale of fixed assets will shown in which part of the cash flow statement . if indirect method is followed.
operating cash flow
financing cash flow
investing cash
none of the above
12. Advance from Customers is a example of ?
Asset
Liability
lncome
Expense

13. Both assets and owner ‘s equity would be increased by _
capital brought in
Purchase of an asset on credit.
Payment of creditors.
Proprietors drawings

14. Security Premiwn Reserve is an example of.
Revenue Reserve
Capital Reserve
Reserve Capital
Revaluation Reserve
15. A credit sale of goods to Mohan should be debited to __
Sales account
Mohan account
Goods account
Purchase account
16. Which of the following is an financing item
Interest paid
salary paid
dividend received
share capital issued

17. which of the following is an example ot business liability?
land
Building
Cash
Creditors
18. XYZ Ltd paid Salaries of Rs 200000 in the month of March’2016. Journalize the transaction
Cash Ale Debited to Salary
Salary Ale Debited to Cash
Employees Ale Debited to Cash
Employees Ale Debited to Salary
19. In which of the following firm structure liability of owners is unlimited
Sole Proprietorship
Ltd Liability Partnership
Pvt. Ltd Company
Public Ltd Company
20. which of the following is an operating item?
Interest paid
salary paid
dividend received
share capital issued
21. There was a fire in M Ltd Godown. It resulted into loss of Rs 5 Cr goods. However the insurance company accepted the claim of Rs 4 .5 Cr only. This will result in equity by Rs _
Increase, 4.5 Cr
Decrease, 0.5 Cr
Increase, 0.5 Cr
Decrease, 5 Cr
22. Who approves the financial statements of a company
Auditors
Shareholders
Management
Board of Directors
23. higher Debt-Equity ratio indicates
High Operating Risk
Low Operating Risk
High Financial Risk
Low Financial Risk

24. accounting Standards are issued by which of the following entity, in India?

ICAI
SEBI
RBI
IFRS
25. If Net Profit is Rs 10000, Preference Dividend is Rs 2000 and Number of Shares are 600, calculate the EPS?
16.66
20
13.33
None of the above
25. which of the following can be categorized as discretionary Expense
Purchase
Salary
Repair & Maintenance
R&D Expense

26. In which of the following statement, final balances of all the accounts are prepared in the form of a list?
Ledger
Accounting Equation
Trial Balance
Journal
27. Which of the following statement shows the financial position of a business entity as on date
Income Statement
Balance Sheet
Trial Balance
Cash Flow Statement

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QTMC513 Quantitative Methods

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QTMC 522 (2019)
Assignment Set – 1
1. The variance of a population is known to be 400. At 95% confidence, the margin of error will be
• 92 or less
• 4 or less
• 2 or less
• 29 or less
2. The p-value
• is the same as the Z statistic
• is a distance
• is a probability
• measures the number of standard deviations from the mean
3. In a cumulative relative frequency distribution, the last class will have a cumulative relative frequency equal to
• zero
• the total number of elements in the data set
• one
• 100
4. In hypothesis testing if the null hypothesis is rejected,
• the sample size has been too small
• the alternative hypothesis is true
• the data must have been accumulated incorrectly
• no conclusions can be drawn from the test
5. In hypothesis testing, the tentative assumption about the population parameter is
• either the null or the alternative
• None of these alternatives is correct.
• the alternative hypothesis
• the null hypothesis
6. In determining the sample size necessary to estimate a population proportion, which of the following information is not needed?
• the maximum margin of error that can be tolerated
• a preliminary estimate of the true population proportion P
• the confidence level required
• the mean of the population
7. For which of the following values of P is the value of P(I – P) maximized?
• P = 0.99
• P = 0.50
• P = 0.01
• P = 0.90
8. A 95% confidence interval for a population mean is determined to be 100 to 120. If the confidence coefficient is reduced to 0.90, the interval for µ
• becomes 0.1
• does not change
• becomes wider
• becomes narrower
9. In a random sample of 100 observations, P = 0.2. The 95.44% confidence interval for P is
• 120 to 0.280
• 134 to 0.266
• 164 to 0.236
• 122 to 0.278
10. In general, higher confidence levels provide
• narrower confidence intervals
• a smaller standard error
• wider confidence intervals
• unbiased estimates
11. The level of significance in hypothesis testing is the probability of
• None of these alternatives is correct.
• rejecting a true null hypothesis
• accepting a true null hypothesis
• accepting a false null hypothesis
12. As the number of degrees of freedom for a t distribution increases, the difference between the t distribution and the standard normal distribution
• becomes larger
• becomes smaller
• None of the above answers is correct.
• stays the same
13. In constructing a frequency distribution, as the number of classes are decreased, the class width
• remains unchanged
• decreases
• can increase or decrease depending on the data values
• increases
14. A tabular method that can be used to summarize the data on two variables simultaneously is called:
• an o give
• crosstabulation
• a histogram
• simultaneous equations
15. The absolute value of the difference between the point estimate and the population parameter it estimates is the
• precision
• error of confidence
• sampling error
• standard error
16. If we change a 95% confidence interval estimate to a 99% confidence interval estimate, we can expect
• the size of the confidence interval to increase
• the size of the confidence interval to decrease
• the size of the confidence interval to remain the same
• the sample size to increase
17. A cumulative relative frequency distribution shows
• the percentage of data items with values less than or equal to the upper limit of each class
• the percentage of data items with values less than or equal to the lower limit of each class
• the proportion of data items with values less than or equal to the lower limit of each class
• the proportion of data items with values less than or equal to the upper limit of each class
18. The t value with a 95% confidence and 24 degrees of freedom is
• 069
• 064
• 492
• 711
19. The sum of frequencies for all classes will always equal
• 1
• the number of classes
• the number of elements in a data set
• a value between 0 and 1
20. A researcher is gathering data from four geographical areas designated: South = 1; North = 2; East = 3; Vest = 4. The designated geographical regions represent
• either quantitative or qualitative data
• label data
• quantitative data
• qualitative data
21. In a cumulative percent frequency distribution, the last class will have a cumulative percent frequency equal to
• 100
• 1
• the total number of elements in the data set
• one
22. The ability of an interval estimate to contain the value of the population parameter is described by the
• degrees of freedom
• confidence level
• precise value of thepopulation mean m
• None of the above answers is correct.
23. If several frequency distributions are constructed from the same data set, the distribution with the widest class width will have the
• none of these
• most classes
• fewest classes
• same number of classes as the other distributions since all are constructed from the same data
24. An estimate of a population parameter that provides an interval of values believed to contain the value of the parameter is known as the
• interval estimate
• confidence level
• population estimate
• parameter value
25. The sum of the relative frequencies for all classes will always equal
• any value larger than one
• the number of classes
• the sample size
• one
26. A frequency distribution is a tabular summary of data showing the
• percentage of items in several classes
• fraction of items in several classes
• number of items in several classes
• relative percentage of items in several classes
27. In order to estimate the average time spent on the computer terminals per student at a local university, data were collected for a sample of 81 business students over a one week period Assume the population standard deviation is 1.2 hours. The standard error of the mean is
• 16
• 5
• 133
• 014
28. Whenever the population standard deviation is unknown and the population has a normal or near-normal distribution, which distribution is used in developing an interval estimation?
• z distribution
• standard distribution
• beta distribution
• t distribution
29. Fifteen percent of the students in a school of Business Administration are majoring in Economics, 20% in Finance, 35% in Management, and 30% in Accounting. The graphical device(s) which can be used to present these data is (are)
• only a pie chart
• a line graph
• both a bar graph and a pie chart
• only a bar graph
30. The confidence associated with an interval estimate is called the
• significance
• confidence level
• precision
• degree of association

Assignment Set – 2
1. A histogram is said to be skewed to the left if it has a
• longer tail to the right
• shorter tail to the right
• longer tail to the left
• shorter tail to the left
2. A cumulative relative frequency distribution shows
• The proportion of data items with values less than or equal to the upper limit of each class
• the proportion of data items with values less than or equal to the lower limit of each class
• the percentage of data items with values less than or equal to the upper limit of each class
• the percentage of data items with values less than or equal to the lower limit of each class
3. A researcher is gathering data from four geographical areas designated :South = I; North = 2; East = 3; West = 4. The designated geographical regions represent
• either quantitative or qualitative data
• qualitative data
• quantitative data
• label data
4. A frequency distribution is a tabular summary of data showing the
• fraction of items in several classes
• relative percentage of items in several classes
• percentage of items in several classes
• number of items in several classes
5. When the level of confidence increases, the confidence interval
• stays the same
• becomes narrower
• becomes wider
• cannot tell from the information given
6. The most common graphical presentation of quantitative data is a
• relative frequency
• pie chart
• bar graph
• histogram
7. A frequency distribution is
• a tabular summary of a set of data showing the frequency of items in each of several nonoverlapping classes
• a tabular summary of a set of data showing the relative frequency
• a graphical device for presenting qualitative data
• a graphical form of representing data
8. The confidence associated with an interval estimate is called the
• significance
• confidence level
• precision
• degree of association
9. The p-value
• measures the number of standard deviations from the mean
• is the same as the Z statistic
• is a distance
• is a probability
10. In constructing a frequency distribution, as the number of classes are decreased, the class width
• can increase or decrease depending on the data values
• remains unchanged
• decreases
• increases
11. We are interested in conducting a study in order to determine what percentage of voters of a state would vote for the incumbent governor. What is the minimum size sample needed to estimate the population proportion with a margin of error of 0.05 or less at 95% confidence?
• 100
• 200
• 196
• 58
12. In a random sample of 100 observations, P = 0.2. The 95.44% confidence interval for P is
• 120 to 0.280
• 134 to 0.266
• 122 to 0.278
• 164 to 0.236
13. An estimate of a population parameter that provides an interval of values believed to contain the value of the parameter is known as the
• confidence level
• population estimate
• interval estimate
• parameter value
14. The difference between the point estimate, such as the sample mean, and the value of the population parameter it estimates, such as the population mean, is known as the
• confidence level
• interval estimate
• parameter estimate
• sampling error
15. Whenever using the t distribution in estimation, we must assume that
• the sampling distribution is approximately normal
• the finite population correction factor is necessary
• the population is approximately normal
• the sample size is at least 30
16. The difference between the lower class limits of adjacent classes provides the
• class midpoint
• class width
• class limits
• number of classes
17. If a hypothesis is rejected at the 5% level of significance, it
• Will never be tested at the 1%level
• may be rejected or not rejected at the 1% level
• will always be accepted at the 1% level
• will always be rejected at the 1% level
18. For which of the following values of P is the value of P(I – P) maximized?
• P = 0.01
• P = 0.99
• P = 0.50
• P = 0.90
19. A probability statement about the sampling error is known as the
• precision
• confidence
• interval
• error
20. In general, higher confidence levels provide
• a smaller standard error
• wider confidence intervals
• unbiased estimates
• narrower confidence intervals
21. In hypothesis testing if the null hypothesis is rejected,
• the sample size has been too small
• no conclusions can be drawn from the test
• the data must have been accumulated incorrectly
• the alternative hypothesis is true
22. Qualitative data can be graphically represented by using a(n)
• bar graph
• frequency polygon
• histogram
• o give
23. The t value with a 95% confidence and 24 degrees of freedom is
• 711
• 069
• 492
• 064
24. A 95% confidence interval for a population mean is determined to be 100 to 120. If the confidence coefficient is reduced to 0.90, the interval for µ
• becomes 0.1
• becomes wider
• does not change
• becomes narrower
25. An interval estimate is a range of values used to estimate
• a sample statistic
• a population parameter
• the shape of the population’s distribution
• the sampling distribution
26. After computing a confidence interval, the user believes the results are meaningless because the width of the interval is too large. Which one of the following is the best recommendation?
• Discard the current data and try a different sample.
• Increase the level of confidence for the interval.
• Reduce the population variance.
• Increase the sample size.
27. In hypothesis testing, the tentative assumption about the population parameter is
• the null hypothesis
• the alternative hypothesis
• either the null or the alternative
• None of these alternatives is correct.
28. A situation in which conclusions based upon aggregated cross tabulation are different from unaggregated crosstabulation is known as
• Simpson’s rule
• wrong crosstabulation
• Simpson’s paradox
• aggregated crosstabulation
29. The sum of the relative frequencies for all classes will always equal
• any value larger than one
• the sample size
• one
• the number of classes
30. As the sample size increases, the sampling error
• increases
• None of the above answers is correct.
• decreases
• stays the same

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Economics

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Economics Test 1
Q1. The equation for calculation of Gross Domestic Product through expenditure approach is
Y=C+I+G+ (X-M)
Y=C+I+ (X-M)
Y=C+I+G (X-M)
Y=C+I+G+ (X+M)
Q2. Which of the following is true concerning the relationship between the marginal propensity to consume and the consumption function?
The smaller the MPC, the steeper the consumption function
The larger the MPC, the steeper the consumption function
The larger the MPC, the larger the MPS
The larger the MPC, the Higher the level of autonomous consumption
Q3. Macroeconomics does not comprise of
Growth of national income
Study of unemployment in a country
Employment of factor inputs by a firm
Inflation in a country
Q4. A decrease in demand for a good could mean that
The demand curve has shifted to the left
The demand curve has undergone a parallel shift to the right
Consumers are willing to pay a higher price for each quantity of the good
Consumers are willing to buy larger quantities of the good at each price
Q5. The cost of the factor inputs hired by the producer to produce final output is called as
Marginal cost
external cost
implicit cost
explicit cost
Q6. Cartel is
Used to explain price rigidity
A form of tacit collusion
A form of overt collusion
Non collusive oligopoly
Q7. Marginal utility is defined as the
Additional satisfaction gained from consuming one more unit of a product
Average amount of satisfaction gained from consuming a product
Total amount of satisfaction gained from consuming a product divided by the number of units consumed
Total amount of satisfaction gained from consuming a product
Q8. A firm earns maximum profit when
MC=ATC
TR is greater than TC by the larger amount
MC=MR
Total revenue equals total costs
Q9. If Marginal Product of labour is lesser than Average Product of labour, then Product of labour is
Constant
Increasing
Decreasing
Maximum
Q10. Which of the following would cause as increase in the velocity of money?
An increase in the money supply
A decrease in interest rates
An increase in demand for money
Increased use of credit cards
Q11. Which of the following describes a situation in which demand must be elastic?
Total revenue decreases by more than 15 percent when the price of corndogs rises by 15 percent
Total revenue increases by $15 when the price of corndogs rises by $15
Total revenue increases by 15 percent when the price of corndogs rises by 15 percent.
Total revenue increases by less than 15 percent when the price of corndogs rises by15 percent.

Q12. Price discrimination refers to
Selling a given product for different prices at two different points in time
any price above that which is equal to a minimum average total cost
the difference between the prices a purely competitive seller and a purely monopolistic selling would charge
the selling of a given product at different prices that do not reflect cost differences

Q13. Short run cost curves behavior is explained by
Economies of scale
Laws of returns
Law of variable proportions
Law of increasing returns
Q14. Which of the following industry most closely approximates the oligopoly model
Wheat wholesaler
Automobile
Services of doctors
Nuclear energy
Q15. In autarky,
Each country’s consumption possibilities are the same as its production possibilities
Equilibrium is attained with the maximum gains from specialization and trade
Equilibrium is attained with the maximum amount of international trade
A nation is governed by an individual with absolute authority

Q16. If future price changes were perfectly anticipated by both borrowers and lenders, what would happen to the real interest rate in the future if the price level changed?
It would not change
It would decrease
It would increase
It would decrease by the amount of the price increase
Q17. The percentage change in the demand for film divided by the percentage change in the price of cameras indicates
The price elasticity of demand for cameras
The cross-price elasticity of demand for photograph
The cross-price elasticity of demand between film and cameras
The price elasticity of demand for film
Q18. If a 12 % fall in price of burgers leads to a 3% increase in quantity demanded of burgers, then price elasticity would be
-1.25
-0.5
-4
-0.25
Q19. The reason that you don’t drink five cups of coffee at breakfast is that
The price of coffee rises as you buy more cups
The total utility of coffee rises as you consume more cups
The marginal utility of extra cups of coffee eventually diminishes
The marginal satisfaction derived from cups of coffee remains constant
Q20. Returns to scale depicts the relationship of an impact on output when there is a change
In all inputs simultaneously
In all inputs simultaneously and in different proportion
In all inputs simultaneously and in same proportion
None of the above
Q21. Demand pull inflation is due to
All of these
Increase in income with population
Increase in purchasing power
Increase in money supply
Q22. The law of demand refers to
A shift in the demand curve that occurs when a variable other than the good’s own price changes
A functional relationship between the various possible prices of a good and the quantity supplied by sellers of it per time period
The proposition that price and quantity demanded can be expected to be inversely related showing that consumers will be willing and able to buy more of a good at lower prices that they are at higher prices
The amounts of a good that consumers are willing and able to buy and other relevant variables such as income or the prices of other goods.
Q23. The simple spending multiplier is
1/(1-MPC)
1/MPC
-MPC/(1-MPC)
MPC/(1-MPC)
Q24. Oligopolistic industries are characterized by
Large firms and high entry barriers
A few dominant firms and low entry barriers
Large number of firms and low entry barriers
A few dominant firms and substantial entry barriers

Q25. The equilibrium quantity of aggregate output occurs when
Planned aggregate expenditure equals income generated from production
Actual aggregate expenditure equal real GDP
The economy reaches the full employment of labor
Inventories of good and services are increasing

Q26. The firm is a price taker under
All of these
Monopolistic competition
Perfect competition
oligopoly
Q27. The quantity theory of money states that
Since velocity is not stable, changes in the money supply have unpredictable impacts on income
Since velocity is reasonably stable, we can predict the effects of an increase in the money supply on employment
MV=PY
Since velocity is reasonably stable, we can predict the effects of an increase in the money supply on nominal income
Q28. When total utility is maximum Marginal Utility is
Falling and positive
Zero
Falling and negative
Rising
Q29. An isoquant is
Least cost combination
A locus of input combinations that give the same level of output
A locus of input combinations that give the different level of output
A locus of product combinations that give the same level of satisfaction

Q30. Under monopolistic competition
there is absence of cost of transportation
sellers have absolute control over price of the product
sellers control price through brand loyalty
buyers have perfect market information
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Economics Test 2

Q1. The demand curve faced by a pure monopolist
May be either more or less elastic than that faced by a single purely competitive firm
Is more elastic than that faced by a single purely competitive firm
Has the same elasticity as that faced by a single purely competitive firm
Is less elastic than that faced by a single purely competitive firm
Q2. The higher the anticipated inflation rate,
The less workers will ask for increase in wages, and the less firms will agree to pay
The more workers will ask for increase in wages, and the less firms will agree to pay
The more workers will ask for increase in wages, and the more firms will agree to pay
The higher the real wages increase offered by firms
Q3. A firm can earns maximum profit when
MC=ATC
TR is greater than TC by the larger amount
MC=MR
Total revenue equals total costs
Q4. Which of the following is assumed constant along the aggregate expenditure line?
Actual investment
Consumption
Unintended inventory adjustment
The price level
Q5. In choosing between burger and shirts, consumer increase their purchases of each until
The marginal utility from the last rupee of burger is the same as from the last shirt
The marginal utility from the last rupee spent on one is the same as the another
The total utility from one is the same as from the other
None of the above
Q6. Contractionary gap can be controlled by
Decrease in taxation and increase in public expenditure
Increase in taxation and increase in public expenditure
Increase in taxation and decrease in public expenditure
Decrease in taxation and decrease in public expenditure
Q7. If a 12 % fall in price of burgers leads to a 3% increase in quantity demanded of burgers, then price elasticity would be
-1.25
-0.5
-4
-0.25
Q8. For a perfectly competitive firm the average revenue
Is equal to marginal revenue
Is higher than marginal revenue
Is lower than total revenue
Coincides with total revenue
Q9. A decrease in demand for a good could mean that
The demand curve has undergone a parallel shift to the right
Consumers are willing to buy larger quantities of the good at each price
The demand curve has shifted to the left
Consumers are willing to pay a higher price for each quantity of the good
Q10. Utility is
Hard to measure because it is a subjective concept
Easily measure because it is an objective concept
Easily measure because it is a subjective concept
Easily measure because all people derive the same utility from consumption
Q11. In the long run, a monopolistic competitor
Any of above
Incurs losses
Reaps normal profits
Make economic profit
Q12. Which of the following industry most closely approximates the oligopoly model
Wheat wholesaler
Automobile
Services of doctors
Nuclear energy
Q13. The percentage change in the demand for film divided by the percentage change in the price of cameras indicates
The price elasticity of demand for cameras
The cross-price elasticity of demand for photograph
The cross-price elasticity of demand between film and cameras
The price elasticity of demand for film
Q14. A firm is in equilibrium when
Marginal revenue is more than marginal cost
Marginal revenue is equal to marginal cost
Both conditions 1 and 2 are fulfilled
Marginal cost of the firm is rising
Q15. Returns to scale depicts the relationship of an impact on output when there is a change
In all inputs simultaneously
In all inputs simultaneously and in different proportion
In all inputs simultaneously and in same proportion
None of the above
Q16. If an imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue
May be either greater or less than $35
Will be less than $35
Will be greater than $35
Will also be $35
Q17. Fiscal policy is concerned with
Government spending and money only
Government spending and taxation only
Government spending, taxation and money
Money and taxation only
Q18. The crowding in of private investment is associated with
A reduction in the level of government spending
Increased investment opportunities resulting from a withdrawal of foreign investors
Increased investment opportunities resulting from a decline in interest rates
More favorable business expectations resulting from an increase in aggregate demand induced by increased government borrowing
Q19. When economists say that people act as rational decision makers, that means
Once a pattern of behavior has been established, people tend to become set in their ways
They gather all relevant information before making their purchases
People rarely make errors when they are permitted to make transactions
People respond in predictable ways to changes in costs and benefits
Q20. GDP Price Index is calculated by formula
Real GDP/Nominal GDP*100
Nominal GDP/Real GDP
Nominal GDP/Real GDP*100
Real GDP/Nominal GDP
Q21. Gross Domestic Product can be calculated by adding ______in an accounting year
Expenditure approach
Adding income earned by all factors inputs
Adding output produced by all sectors
Any of these methods
Q22. Demand pull inflation is due to
All of these
Increase in income with population
Increase in purchasing power
Increase in money supply
Q23. If the economy experiences a contractionary gap and the RBI stimulates the economy.
The money supply is increasing because the RBI prints more money
The money supply is increasing because the RBI makes open-market purchases
The money supply is decreasing because the RBI makes open-market sales
The money supply is decreasing because the RBI hoards money
Q24. Gross domestic product is
The sum of money value of all intermediate goods and services produced within the domestic territories of a country during an accounting year
The aggregate final goods and services produced during an accounting year
The sum of money value of all final goods and services produced within the domestic territories of a country during an accounting year
The aggregate intermediate goods and services produced during an accounting year
Q25. Under perfect competition there are
Large number of buyers
Large number of buyers and sellers
Large number of sellers
Large number of buyers and sellers and selles are small in size
Q26. Price elasticity of demand is calculated as
The percentage change in price divided by the percentage change in quantity demanded
The percentage change in quantity demanded divided by the percentage change in price
The absolute change in quantity demanded divided by the absolute change in price
The absolute change in price divided by the absolute change in quantity demanded
Q27. If Marginal Product of labour is lesser than Average Product of labour then Average product of labour is
Constant
Increasing
Decreasing
Maximum
Q28. Macroeconomics does not comprise of
Growth of national income
Study of unemployment in a country
Employment of factor inputs by a firm
Inflation in a country

Q29. If the price charged by a firm is greater than average cost of production, the firm earns
Economic profit
Normal profit
Incurs losses
Any of these
Q30. When prices increase at such a speed that the value of money falls drastically is called as
Headline inflation
Hyperinflation
Core inflation
Stagflation
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Principles of Management

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Q1. In which of the following situations would a Gantt chart be appropriate to use?
Building a bridge
Installing a local area network for a computer system
Rebuilding communities destroyed by natural calamities
All of these
Q2. One of the benefits of planning is how it________.
Encourages people to work faster
Reduces employee turnover
Eliminates all discriminatory practices
Does none of these
Q3. Which of the following is an objective of ethics training?
Develop employee awareness about ethics
Teach employee a practical model of ethical decision making
Achieve credibility with employees
Achieve all of these
Q4. Caterpillar announced plans to cut its production of construction equipment due to forecasted increases increase in steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used _____ controls.
Feedforward
Feedback
Concurrent
stasis
Q5. Control is a cybernetic process because it_____.
Has a feedback loop
Is an intermittent process
Is the first management function
Uses automated benchmarks
Q6. Which of the following is NOT an example of a commonly used operations management tool?
Capacity planning
Linear programming
Scheduling systems
Target marketing
Q7. The ability to perform ______ increase in its importance to success as managers’ rise through the managerial ranks.
Interpersonal skills
Human skills
Conceptual skills
Information skills
Q8. _____is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks.
Organizational layout
Organizational process
Departmentalization
Job formatting
Q9. Doug has a low-paying job for a telecommunications company. Every day when he goes home from work, Doug puts a headset, a stapler, or something similar in his lunch box and takes it home with him. Doug sees nothing wrong with his behavior since he should. In terms of Kohlberg’s stages of moral development, Doug is operating at which level?
Conventional
Legally mandated
Preconventional
postconventional
Q10. A manufacturer of automatic locking devices shipped 20,000 devices to a car manufacturer that was unable to use them because of a design law. If manufacturer of the devices waited until the parts were returned before determining why it created unusable component parts, it would be using ____ control.
Feedforward
Feedback
Balanced
dynamic
Q11. The founder and CEO of medical products distributor, establishes ambitious goals for his employees and is confident that they will be able to achieve these goals. In term of the path-goal theory, this founder and CEO is exhibiting a (n) ___ type of leadership.
Participative
Achievement- oriented
Delegating
Empowering
Q12.

Q13. _____ integrity tests indirectly estimate employee honesty by measuring psychological traits
Overt
Psychographic-based
Covert
Personality-based
Q14. What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufactures?
Single-use plan
Contingency plan
Scenario plan
Standing plan
Q15.
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Q16. Large accounting agencies typically have separate department that deal with households, business, and governments. This allows them to better serve the needs of their clients, by using _______ departmentalization.
Matrix
Product
Customer
geographic
Q17. Job specialization can result in_____.
High job satisfaction
Employee boredom
Low employee turnover
Complicated job designs
Q18. An organization which is a _______in terms of it’s adaptive strategy would NOT follow a consistent strategy.
Defender
Pioneer
Analyzer
reactor
Q19. One method of weighing decision criteria uses_______, which is a process where each decision is compared directly to every other criterion.
Absolute comparisons
Relative comparisons
Valences
Minimum threshold rule

Q20. Hallmark has four departments. These departments are (1) Flowers and gifts, (2) Cards and E-cards, (3) Hallmark collectibles, and (4) photo albums and Scrapbooks. Hallmark uses _______ departmentalization.
Matrix
Product
Customer
geographic
Q21. ________ is the collection of activities that transform inputs into outputs that customer’s value.
Functionalization
Organizational structure
Production positioning
Organizational process
Q22. A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every weeks. The chain stores was able to set this standard through___________.
Evaluating the standard’s capacity to enable goal achievement
Benchmarking competitors
Listening to customers
Outsourcing
23. The ________ approach to decision-making is a method in which an individual or a subgroup is assigned the role a critic.
Dialectical inquiry
Groupthink
Devil’s advocacy
delphi
Q24. According to _________, the most effective management theory or idea depends on the kinds of problem or situations that managers we facing at a particular time and place.
Scientific management
The human relations approach
Administrative management
The contingency approach
Q25. Which of the following companies is most likely operating in a dynamic environment?
A video game manufacturer
A bakery
A brewery, winery, or distillery in the liquor industry
A manufacturer of per food
Q26. Fist-line managers will most likely have to:
Monitor the performance of corporate investments
Encourage, monitor and reward the perforomance of their employees
Determine how to deal with long-term environmental changes
Periodically monitor the company’s organizational culture
Q27. After a year as a manager, new managers typically realize their job is:
To be a troubleshooter
To manage tasks
just as they expected
People management
28. Which of the following is Not associated with Max Weber’s bureaucratic management?
Merit- based promotion
Span of management
Division of labor
Chain of command
Q29. The goal of scientific management is to_____.
Make sure workers did not consider their work boring or repetitive
Decreased wages for individual workers
Eliminate conflict between workers and management
Find the one best way to perform each task
Q30. According to Mary Parker Follett, _____ is an approach for dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party’s desires and objectives.
Resolution
Integration
Domination
Coercion
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Strategy MGTC521

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Test 1
Q1. A company with a single share of a large fast growing market
Dog
Cash cow
Star
Question mark
Q2. _is a portfolio strategy developed by Boston Consulting Group.
XYZ Matrix
BCG Matrix
DEF Matrix
ABC Matrix
Q3. Condition in the general environment if exploited effectively helps company achieve strategic competitiveness
Complementers
Strategy
Industry
Opportunity
Q4. Integrated and coordinated set of commitments and actions designed to exploit core competencies to gain competitive advantage is called
Stakeholders
Global economy
Strategy
Above average returns
Q5. Firms offering similar product operating in same market and same segment are called
Firms
Institutions
Competitors
Market
Q6. Firm that takes an initial competitive action
International
Competitive rivalary
First mover
competence
Q7. ______ is concerned with society’s attitude and culture values.
Technological segment
Sociocultural segment
Strategic group
Political segment
Q8. ____ is an assessment of the organizations strength and weaknesses in its internal environment and opportunities and strengths in the external environment.
Core capability
VALUE
SWOT Analysis
Capabilities
Q9. ________ provide the assistance necessary for the primary activities to take place.
Core capability
Competence
Experience curve
Support activity
Q10. __________ is composed of dimensions in the broader society that influences an industry and the firm within it.
General environment
Economic environment
Global segment
opportunity

Q11. __is set of actions a firm takes to produce goods perceived to be different.
Experience curve
Business level strategy
Differentiation strategy
Global segment
Q12. Assets that can be observed and quantified
Tangible resources
Intangible resources
Outsourcing
Value
Q13. Specifies the businesses in which the firm intends to compete and the customers it intends to serve
Capability
Profit pool
Mission
Vision
Q14. The central companies in a strategic group are
Distinctive competence
Core firms
Core capability
Experience curve
Q15. Exists when the firms goods or service exceed customer expectation
Market
Competition
Institutions
Quality
Q16. Set of actions taken to produce goods and service at the lowest cost
Business level strategy
Cost leadership strategy
TQM
Focus strategy
Q17. What a company can make do or perform better than its competitors
SWOT
VALUE
Distinctive competence
competence
Q18. ____ exits when the firms are able to sell above its competitive level.
Market power
Market
Market segmentation
Multimarket competition

Q19. A company with a large share of a slow growing market
Dog
Cash cow
Star
Question mark
Q20. Is measured by product performance characteristics and by its attributes for which customer are willing to pay
Capabilities
Outsourcing
Value
competence
Q21. A company with a small share of a slow growing market
Dog
Cash cow
Star
Question mark
Q22. Which of the following firm has the least resource similarity?
Fedex Vs UPS
Target Vs walmart
HO Vs Del
Small family restaurants V Pizza Hut
Q23. __is a broad strategy used to achieve strategic goals and guide the strategic alternatives.
Grand strategy
Pricing strategy
Business strategy
International strategy
Q23. Use of economies of scale lead to operational effencies
True
Not true
Not clear
Have less chances
Q25. _____ exists when the value created by business units working together exceeds the value created by same units working independently.
Stability
Diversification
Growth
Synergy
Q26. Markets in which the firms competitive advantage are moderate are called
Standard cycle markets
Fast cycle markets
Slow cycle markets
Competitive strategy
Q27. _an integrated and coordinated set of commitments and actions that firms use to gain competitive advantage by exploiting core competencies.
Business level strategy
TQM
Focus strategy
Market segmentation
Q28. Purchase of a company by another company
Diversification
Stability
Acquisition
Growth
Q29. Raymond brand producing only for men is a part of
Business level strategy
Cost leadership strategy
Competitive strategy
Focus strategy
Q30. __________is integrated set of actions taken to produce goods and services at lowest cost to that of competitors.
Business strategy
Cost leadership strategy
Competitive strategy
Differentiation strategy

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Test 2
Q1. _________ is a complex set of ideologies, symbols and core values shared throughout the firm and influences how firm conducts business refers to.
Global economy
Resources
Management process
Organizational culture
Q2. ______ is nature and direction of the economy in which a firm competes
Economic environoment
Technological segment
Demographic environoment
Physical environment
Q3. The purchase of a value creating activity from an external supplier is called
Intangible resources
Core capability
Capabilities
outsourcing
Q4. Intensified rivalry within an industry results in
Increased entry in the industry
Increased hiring by the industry
Increased total revenue by the industry
Decreased average profitability among industry

Q5. Purchase of a company by another company
Diversification
Stability
Growth
Acquisition
Q6. A company with a single share of a large fast growing market
Dog
Star
Cash cow
Question mark
Q7. ____ is an assessment of the organizations strength and weaknesses in its internal environment and opportunities and strengths in the external environment.
Core capability
VALUE
SWOT Analysis
Capabilities
Q8. The capacity for a set resources to perform a task or an activity
Capability
Profits
Vision
Mission
Q9. People located in different parts of the world using strategic management process
Political leaders
Forward people
Frequent fliers
Strategic leaders
Q10. ____ exists when the value created by business units working together exceeds the value created by same units working independently.
Synergy
Stability
Diversification
growth
Q11. _______ is a broad strategy used to achieve strategic goals and guide the strategic alternatives.
Grand strategy
Business strategy
International strategy
Pricing strategy
Q12. _____ is set of actions a firm takes to produce goods perceived to be different.
Experience curve
Business level strategy
Differentiation strategy
Global segment
Q13. A group of firms producing goods that are close substitutes is called
Demographic environoment
Global segment
Firm
Industry
Q14. Economy in which goods and services ,people skills and idea move freely
Social economy
Global economy
Big economy
Technological economy
Q15. The ongoing competitive action/response sequence between a firm and the competitor affects the performance of both firms is called
Strategic action
Tactical action
Awareness
Competitive rivalry
Q16. Raymond brand producing only for men is a part of
Business level strategy
Cost leadership strategy
Competitive strategy
Focus strategy
Q17. Competitive rivalry has the most effect on the firms ______ strategy.
Corporate level strategy
International
Business level strategy
Acquisition
Q18. ________ occurs when firms compete against each other in several products and geographical region.
Market segmentation
Multimarket competition
Competitive behavior
Corporate level strategy
Q19. _is a portfolio strategy developed by Boston Consulting Group.
XYZ Matrix
BCG Matrix
DEF Matrix
ABC Matrix
Q20. Which of the following firm has the least resource similarity?
Fedex Vs UPS
Target Vs walmart
HO Vs Del
Small family restaurants V Pizza Hut
Q21. _________ is a market based move that involves a significant commitment of organasitional resources difficult to implement and reverse.
Strategic action
Second mover
Tactical action
Late mover
Q22. _______ is continuous improvement of every process through use of data driven problem solving approaches
Demographic segment
TQM
Focus strategy
Market segmentation
Q23. Use of economies of scale lead to operational effencies
True
Not true
Not clear
Have less chances
Q24. _________ provide the assistance necessary for the primary activities to take place.
Core capability
Experience curve
Support activity
competence
Q25. A strategic or tactical action that the firm takes to counter the effects of a competitor is
Market segmentation
Competitive rivalry
A competitor response
Resource similarity
Q26. Process that cluster people with similar needs is called
Business strategy
Market segmentation
Demographic segment
Economic environoment
Q27. Investors uncertainty about the economic gains or losses that will result from a particular investment
Resources
Profit
Returns
Risk
Q28. ______ is a strategy that focuses on improving the way a company sells the same product to the same customers.
International strategy
Grand strategy
Stability strategy
Business strategy
Q29. Specifies the business or businesses in which the firm intends to compete and the customers it intends to serve
Vision
Mission
Profit pool
capability
Q30. _an integrated and coordinated set of commitments and actions that firms use to gain competitive advantage by exploiting core competencies.
Business level strategy
TQM
Focus strategy
Market segmentation
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