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1. This paper consists of Fifty multiple-choice type of questions.

2. At the commencement of examination, the question booklet will be given to you. In the
first 5 minutes, you are requested to open the booklet and compulsorily examine it as
below :
a. To have access to the Question Booklet, tear off the paper seal on the edge of this
cover page. Do not accept a booklet without sticker-seal and do not accept an
open booklet.
b. Tally the number of pages and number of questions in the booklet with the
information printed on the cover page. Faulty booklets due to pages/questions
missing or duplicate or not in serial order or any other discrepancy should be got
replaced immediately by a correct booklet from the invigilator within the period
of 5 minutes. Afterwards, neither the
c. Question Booklet will be replaced nor any extra time will be given.
d. After this verification is over, the OMR Sheet Number should be entered on this
Test Booklet.
3. Each item has four alternative responses marked (A), (B), (C) and (D). You have to
darken the circle as indicated below on the correct response against each item.
4. Your responses to the items are to be indicated in the OMR Sheet given inside the
Booklet only. If you mark at any place other than in the circle in the OMR Sheet, it will
not be evaluated.
5. Read instructions given inside carefully.
6. Rough Work is to be done in the end of this booklet.
7. If you write your Name, Roll Number, Phone Number or put any mark on any part of the
OMR Sheet, except for the space allotted for the relevant entries, which may disclose
your identity, or use abusive language or employ any other unfair means, you will render
yourself liable to disqualification.
8. You have to return the test question booklet and Original OMR Sheet to the invigilators
at the end of the examination compulsorily and must not carry it with you outside the
Examination Hall. You are, however, allowed to carry duplicate copy of OMR Sheet on
conclusion of examination.
9. Use only Blue/Black Ball point pen.
10. Use of any calculator or log table etc., is prohibited.
11. There are no negative marks for incorrect answers.

Based on our in depth analysis, our experts have created a mock test series of 1250 most
probable questions. This has been prepared after researching papers of last 10 years and
UGC prescribed syllabus.

These questions have a very high probability of appearing in actual exam.

We have written explanation of these questions in such a way that even if there is a
tangential question in actual exam, the students are able to answer that. With this
approach, our test series not only assesses but also teaches new concept with every
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Our questions have been very carefully chosen. For example, although Operations
Management syllabus is full of numericals, UGC has been asking numerical only on one
topic; Economic Order Quantity. Similarly one question appears almost every time on
Layout Planning. Similarly we see that hardly any question is asked on Markov
Analysis or Duality. Our experts have identified these insights after analyzing question
by question. Our motto is that student is able to clear the exam with minimum hours of
preparation.

In June 2012 UGC NET exam we had 82% of questions from our test series.
1

1. The level of strategy in which day to day


operational decisions are taken in a manufacturing
plant is called

A. Business level strategy


B. Functional level strategy
C. Corporate level strategy
D. None of the above

2. Strategic Intent concept was given by

A. Michael Porter
B. Robert Kaplan
C. C K Prahalad
D. Philips Kotler A. Product range
B. Industry growth rate
3. What are core competences? C. Business strength
D. Market share
A. Resources which critically underpin
competitive advantage and that others 6. The purpose of a SWOT analysis is to analyse:
cannot obtain.
B. Activities and processes needed to meet A. The business environment in which
customers' minimum requirements and an organisation operates.
therefore to continue to exist. B. The strategic capability of an
C. Key skills required for success in a organisation.
particular business. C. The business environment and the
D. Activities that underpin competitive strategic capability of an
advantage and are difficult for competitors organisation relative to its
to imitate or obtain. competitors.
D. External and organisational
4. The value chain is composed of primary & support environments.
activities. Which answer below provides the correct
components for primary activities? 7. Porter's generic strategies are:

A. Service, human resource management, A. Low price, differentiation, focus


marketing & sales, operations and outbound B. Cost leadership, differentiation, cost focus,
logistics. focus differentiation
B. Marketing & Sales, Operations, Outbound C. Price leadership, differentiation, focus
Logistics and Service. D. Low cost, differentiation, focus
C. Procurement, Firm Infrastructure, Human differentiation
Resource Management, Technology
Development and Marketing & Sales. 8. Who is author of book Innovation and
D. Inbound Logistics, Operations, Outbound Entrepreneurship ?
Logistics, Marketing & Sales and Service.
A. C K Prahlad
5. In the sketch of the BCG matrix, what is the label B. Hamel
of the horizontal axis? C. Philips Kotler
D. Peter Drucker

B. BIFR and AIFR


9. It is impossible for human beings to process and C. BBIFR and AAIFR
understand all the information necessary to meet D. BBIFR and AIFR
the test of rationality. But what they do is construct
simplified models that extract the essential features 14. Stewardship theory is related to:
from problems without capturing all of their
complexities. This behaviour is called: A. Capacity Planning
B. Corporate Governance
A. Bounded rationality C. Quality Management
B. Intrinsic task motivation D. Inventory Management
C. Available heuristic
D. Representative heuristic 15. Global Compact is an initiative by:

10. National Institute for Entrepreneurship and Small A. ILO


Business Development (NIESBUD) is located in: B. IFC
C. United Nations
A. Delhi D. World Bank
B. Hyderabad
C. Gandhinagar 16. For a company with an Executive Chairman, at
D. Noida least 50 per cent of the board should comprise
independent directors. In the case of a company
11. TIFAC (Technology Information, Forecasting and with a non-executive Chairman, at least one-third of
Assessment Council) created a Revolving Fund of the board should be independent directors. This is
30.00 crores for Technology Innovation and placed enforced by SEBI through:
it with
A. Clause 46
A. UGC B. Clause 47
B. SIDBI C. Clause 48
C. IDBI D. Clause 49
D. National Innovation University
17. ISO 14000 family of codes addresses:
12. NABARD stands for
A. Climate change issues
A. National Bank of Agriculture and Regional B. Water harvesting issues
Development C. Environmental issues
B. National Bank for Agriculture and Rural D. Worker welfare issues
Development
C. National Agricultural Bank for Rural 18. Pre-Conventional, Conventional and Post-
Development Conventional stages of Moral Development were
D. National Agricultural Bank for Regional given by:
Development
A. Schumpeter
13. Sick Industrial Companies (Special Provisions) B. Talcott Parsons
Act,1985 (SICA) provided for the constitution of C. Radcliffe Brown
two quasi-judicial bodies: D. Lawrence Kohlberg

A. BIFR and AAIFR

19. In a portfolio of three different stocks, which of the A. the risk-free rate.
following could not be true? B. the beta for the firm.
C. the earnings for the next time period.
A. The riskiness of the portfolio is less than the D. the market return expected for the time
riskiness of each stock held in isolation. period.
B. The riskiness of the portfolio is greater than
the riskiness of one or two of the stocks. 24. If a firm has a DOL of 5 at Q units, this tell us that:
C. The beta of the portfolio is less than the beta
of each of the individual stocks. A. if sales rise by 5%, EBIT will rise by 5%.
D. The beta of the portfolio is greater than the B. if sales rise by 1%, EBIT will rise by 1%.
beta of one or two of the individual stocks. C. if sales rise by 5%, EBIT will fall by 25%.
D. if sales rise by 1%, EBIT will rise by 5%.
20. When the market's required rate of return for a
particular bond is much less than its coupon rate, 25. A tender offer is
the bond is selling at:
A. a goodwill gesture by a "white knight."
A. a premium. B. a would-be acquirer's friendly takeover
B. a discount. attempt.
C. cannot be determined without more C. a would-be acquirer's offer to buy stock
information. directly from shareholders.
D. face value. D. viewed as sexual harassment when it occurs
in the workplace.
21. A profitability index of .85 for a project means that:
26. Which of the 'Big Five' personality dimensions has
A. the present value of benefits is 85% greater emerged as a particularly valid predictor of many
than the project's costs. aspects of work performance?
B. the project's NPV is greater than zero.
C. the project returns 85 cents in present value A. Emotional stability.
for each current dollar invested. B. Extraversion.
D. the payback period is less than one year. C. Conscientiousness.
D. Agreeableness.
22. Which of the following statements is correct?
27. What is meant by 360 degree appraisal?
A. If the NPV of a project is greater than 0, its
PI will equal 0. A. A system where a senior manager rates all
B. If the IRR of a project is 0%, its NPV, using line managers simultaneously.
a discount rate, k, greater than 0, will be 0. B. A system where the line manager rates
C. If the PI of a project is less than 1, its NPV subordinates simultaneously.
should be less than 0. C. A system where feedback is obtained from
D. If the IRR of a project is greater than the peers subordinates and supervisors.
discount rate, k, its PI will be less than 1 and D. A system where every employee rates
its NPV will be greater than 0. another employee chosen at random.

23. To compute the required rate of return for equity in 28. In recruitment and selection, what is meant by the
a company using the CAPM, it is necessary to term 'P-J fit'?
know all of the following EXCEPT:
A. Profession-job fit.

B. Person-job fit. 34. The sources of leader power are:


C. Practical-job fit.
D. Potential-job fit. A. Legitimate power
B. Reward power
29. Which of the motivation theory deals with why C. Coercive power
people are driven by particular needs at particular D. All of the above
times?
35. Which is the lowest order need according to
A. Freuds theory Maslow's need hierarchy theory?
B. Maslows theory
C. Herzbergs theory A. Physiological needs
D. None of these B. Safety needs
C. Social needs
30. Which type of market segmentation deals with the D. Esteem needs
Personality, life style, social class, value, etc?
36. Which of the following is not a type of
A. Geographic Segmentation departmentalization in organization?
B. Psychological variables
C. Behavioural Segmentation A. Functional departmentalization
D. Demographic Segmentation B. Product departmentalization
C. Customer departmentalization
31. Which type of Product Line Analysis occurs when a D. Price departmentalization
company lengthens its product line beyond the
current product range? 37. Which of these approaches argues that there is no
single best way to manage behavior?
A. Down Market stretch
B. Up Market stretch A. Hawthorne Experiment
C. Line Stretching B. Scientific Management
D. Two way stretch C. Hierarchy of needs
D. Contingency Theory
32. Which of the product mix pricing strategy deals
with the offering to sell optional or accessory 38. Which one of the following personality
products along with the main product? characteristics refers to an individuals generalized
belief about internal control versus external
A. Optional-Product Pricing control?
B. Captive-Product Pricing
C. By-Product Pricing A. locus of control
D. Product Bundle Pricing B. self-esteem
C. self-monitoring
33. Which of following 3Ps applies specifically to D. positive/negative affect
services only and not products?
39. According to human relations view of conflict
A. Promotion management, the conflict________
B. People
C. Price A. Can never be good for the organization.
D. Place B. Is a natural and inevitable outcome in a group
C. May not be bad
D. Both (B) and (C)

C. Division of Labour
40. Which of the following is true? D. Behavioural Approach

A. Large groups are good for gaining diverse Ans. B


Input, but smaller groups are better at doing
something productive with that input 45. With a chase demand strategy, which one of these
B. Small groups are good for gaining diverse statements is correct?
Input, but larger groups are better at doing
something productive with that input A. Throughput rates respond to changes in
C. Both large and small groups are good for demand
gaining diverse Input B. Processes are buffered through inventory
D. Both large and small groups are good at C. Investment in plant and equipment will
doing something productive with input probably be low
D. Outputs are stored until required
41. A female employee will always keep her family on
higher priority than her job is an example of: 46. Statistical Process Control is concerned with:

A. Selective Perception A. Measuring and controlling process


B. Job equity variations
C. Job Inequality B. Identifying the security needs of an
D. Job Selection Operations system
C. Determining the efficiency of an operations
42. Under the ABC system of inventory priorities a system
Class A item is: D. Inspecting goods before despatch

A. The 80% of high-value items that account 47. Two events are mutually exclusive if:
for around 20% the total stock value
B. The 20% of high-value items that account A. they are exclusively connected.
for around 20% the total stock value B. they cannot occur together.
C. The 80% of high-value items that account C. they exclusively include mutuality.
for around 80% the total stock value D. None of the above
D. The 20% of high-value items that account
for around 80% the total stock value 48. Two types of errors associated with hypothesis
testing are Type I and Type II. Type II error is
43. The lay out where the equipment, machinery, plant committed when:
and people move as necessary is known as:
A. we reject the null hypothesis whilst the
A. Process layout alternative hypothesis is true.
B. Product layout B. we reject a null hypothesis when it is true.
C. Cell layout C. we accept a null hypothesis when it is not
D. Fixed-position layout true.
D. we reject a null hypothesis when it is not
44. Frederick Winslow Taylor is best known for the true.
introduction of which approach to job design?
49. If the Pearson correlation co-efficient R is equal to 1
A. Ergonomics then:
B. Scientific Management

A. There is no relationship between the two


variables.
B. There is a negative relationship between the
two variables.
C. There is a positive relationship between the
two variables.
D. There is a perfect positive relationship
between the two variables.

50. Under what conditions do the binomial and Poisson


distributions give approximately the same results?

A. When p and q are equal


B. When p is small and n is small
C. When p is small and n is large
D. When p and q are equal and n is small

1. Ans B
Exp. Strategy can be formulated on three different levels: At top is Corporate level, at middle isBusiness unit
level and at bottom is Functional or departmental level. Functional strategy relates to a single functional
operation and the activities involved therein. This level is at the operating end of the organization. The decisions
at this level within the organization are described as tactical decisions. Functional strategy deals with a relatively
restricted plan providing objectives for specific function, allocation of resources among different operations
within the functional area and coordination between them for achievement of SBU and corporate level
objectives.

2. Ans C
Exp. The foundation for the strategic management is laid by the hierarchy of strategic intent. The concept of
strategic intent makes clear what an organization stands for. Hamel and C K Prahalad coined the term Strategic
Intent. C K Prahlad also coined core competency and bottom of pyramid concepts of strategic management.

3. Ans D
Exp. Core competencies are those capabilities that are critical to a business achieving competitive advantage.
This concept in management theory was originally advocated by CK Prahalad, and Gary Hamel. It fulfills three
key criteria: 1) provide access to a wide variety of markets, 2) contribute significantly to the end-product
benefits, 3) be difficult for competitors to imitate.

4. Ans. D
Exp. Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of
the competitive strength of the business. Michael Porter suggested that the activities of a business could be
grouped under two headings: Primary Activities - those that are directly concerned with creating and delivering a
product and Support Activities, which whilst they are not directly involved in production, may increase
effectiveness or efficiency (e.g. human resource management). Secondary activities are: Procurement, Human
Resource Management, Technology Development, Infrastructure

5. Ans. D
Exp. The BCG model proposes that for each business activity within the corporate portfolio, a separate strategy
must be developed depending on its location in a two by two matrix of high and low segments on each of the
above mentioned axes. Relative Market Share and Rate of Growth are plotted on two axes. Cash Cows are the
businesses with low growth rate and high market share. Dogs are with low business growth rate and the
companys relative market share is also low. Question Marks are like Dogs, with low market share but the
businesses have a high growth rate. Stars are businesses which have high growth rate and high market share.

6. Ans. C
Exp. A SWOT analysis summarises the key issues from the business environment and the strategic capability of
an organisation that are most likely to impact on strategy development. SWOT stands for S: Strength, W:
Weakness, O: Opportunity, T: Threat

7. Ans. B
Exp. Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage
and differentiation. By applying these strengths in either a broad or narrow scope, four generic strategies result:
cost leadership, differentiation, and cost focus and focus differentiation. These strategies are applied at the
business unit level. They are called generic strategies because they are not firm or industry dependent.

8. Ans. D

Exp. In his book Innovation and Entrepreneurship, Drucker discusses three different aspects of innovation and
entrepreneurship.

9. Ans. A
Constructing simplified models that extract the essential features from problems without capturing all of their
complexities is called bounded rationality. Availability heuristic is the tendency to base judgments on
information that is readily available. Representative heuristic causes individuals to match the likelihood of an
occurrence with something that they are familiar with. Intrinsic task motivation is the desire to work on
something because it is interesting, involving, exciting, satisfying, or personally challenging.

10. Ans D.
Exp. NIESBUD is located in Noida. Some of other institutions under MSME and frequently asked in exam are:
Khadi and Village Industries Commission, (KVIC), Head office in Mumbai
National Small Industrial Company Ltd (NSIC), Head office in New Delhi.
National Institute for Micro, Small and Medium Enterprises (NI-MSME), Located in Hyderabad
Indian Institute of Entrepreneurship (IIE), Located in Guwahati
Central Footwear Training Institute, Located in Chennai

11. Ans B
Exp. TIFAC (Technology Information, Forecasting and Assessment Council) created a Revolving Fund of 30.00
crores for Technology Innovation and placed it with SIDBI to provide assistance to MSMEs for development,
up-scaling, demonstration and commercialization of innovative technology based projects. The scheme has been
named SRIJAN.

12. Ans B
Exp. NABARD is the apex institution in the country which looks after the development of the cottage industry,
small industry and village industry, and other rural industries. It was established in 1982.

13. Ans. A
Exp. SICA provided for the constitution of two quasi-judicial bodies, that is, Board for Industrial and Financial
Reconstruction (BIFR) and Appellate Authority for Industrial and Financial Reconstruction (AAIFR). BIFR was
set up as an apex board to tackle industrial sickness and was entrusted with the work of taking appropriate
measures for revival and rehabilitation of potentially sick undertakings and for liquidation of non-viable
companies. AAIFR was constituted for hearing the appeals against the orders of the BIFR.

14. Ans. B
Exp. Stewardship theory assumes that managers are stewards whose behaviors are aligned with the objectives of
their principals. The theory argues and looks at a different form of motivation for managers drawn from
organizational theory. Managers are viewed as loyal to the company and interested in achieving high
performance. The dominant motive, which directs managers to accomplish their job, is their desire to perform
excellently. Specifically, managers are conceived as being motivated by a need to achieve, to gain intrinsic
satisfaction through successfully performing inherently challenging work, to exercise responsibility and
authority, and thereby to gain recognition from peers and bosses. Therefore, there are non-financial motivators
for managers.

15. Ans. C

Exp. The United Nations Global Compact, also known as Compact or UNGC, is a United Nations initiative to
encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their
implementation. It was launched in 2000.

16. Ans. D
Exp. Clause 49 of the Listing Agreement to the Indian stock exchange comes into effect from 2006. It has been
formulated for the improvement of corporate governance in all listed companies. As per Clause 49, for a
company with an Executive Chairman, at least 50 per cent of the board should comprise independent directors.
In the case of a company with a non-executive Chairman, at least one-third of the board should be independent
directors.

17. Ans. C
Exp. The ISO 14000 family addresses various aspects of environmental management. It provides practical tools
for companies and organizations looking to identify and control their environmental impact and constantly
improve their environmental performance. ISO 14001:2004 and ISO 14004:2004 focus on environmental
management systems. The other standards in the family focus on specific environmental aspects such as life
cycle analysis, communication and auditing.

18. Ans. D
Exp. According to Lawrence Kohlberg, conscience is only one of several ways in which ethical values are
represented in the personality. Kohlberg believes there are higher levels of moral development and these are
acquired in three stages Pre-conventional, Conventional and Post-Conventional

19. Ans. C
Exp. The beta of the portfolio is a weighted average of the individual securities betas, so it could not be less
than the betas of all of the stocks.

20. Ans. A
Exp. When required rate of return for a particular bond is much less than its coupon rate, the bond is selling at
premium. When is less, it is selling at discount. The face value of a bond is the amount of money that the firm
borrows and promises to repay on the maturity date.

21. Ans. C
Exp. Profitability index is the ratio of the PV of the future cash inflow to the PV of cash outflow, ie initial cost of
the project. If the profitability index is equal to or more than one, the proposal is accepted. If more than one
investment proposals, the one with the highest profitability index will be preferred. This method is more useful
in comparing projects with different cash outlay.

22. Ans. C
Exp. Net present value (NPV) is defined as the sum of the present values (PVs) of the individual cash flows of
the same entity. Thus NPV is positive if benefits (cash inflows) are more than (cash inflows) after considering
time value of money. Profitability Index (PI) is ratio of benefits and costs. It clearly shows that PI will be greater
than 1 when NPV is positive and less than one when NPV is negative.

23. Ans. C
Exp. To measure the cost of common stock by CAPM, it involves the following steps: 1)Estimate the risk-free
rate, 2) Estimate the stocks beta coefficient, b, which is an index of systematic (or non-diversifiable market)

risk. 3)3. Estimate the rate of return on the market portfolio 4) Estimate the required rate of return on the firms
stock, using the CAPM (or SML) equation:
)

24. Ans. D
Exp. The Degree of Operating Leverage (DOL) is the leverage ratio that sums up the effect of an amount of
operating leverage on the companys earnings before interests and taxes (EBIT). Operating Leverage takes into
account the proportion of fixed costs to variable costs in the operations of a business. If the degree of operating
leverage is high, it means that the earnings before interest and taxes would be unpredictable for the company,
even if all the other factors remain the same. The formula used for determining the Degree of Operating
Leverage or DOL is as follows: DOL = %Change in EBIT/% Change in Sales.

25. Ans. C
Exp. A tender offer is a proposal by company A (or its investors) to all current shareholders of company B to
tender their shares for sale at a certain price at a certain time. It is non-hostile takeover of another company.

26. Ans. C
Exp. "Big Five" factors of personality are five broad domains or dimensions of personality that are used to
describe human personality. The Big Five factors are: Openness (inventive/curious vs. consistent/cautious),
Conscientiousness (efficient/organized vs. easy-going/careless), Extraversion (outgoing/energetic vs.
solitary/reserved), Agreeableness (friendly/compassionate vs. cold/unkind), Neuroticism (sensitive/nervous vs.
secure/confident)

27. Ans. C
360 degree feedback, also known as "multi-rater feedback", is the most comprehensive appraisal where the
feedback about the employees performance comes from all the sources that come in contact with the employee
on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates,
team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can
provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.

28. Ans. B
Exp. Person Job Fit approach to recruitment and selection is based on the view that organisations should specify
the requirements of the job as closely as possible and then look for individuals whose personal attributes fit those
requirements. It is based on the assumption that human behaviour is determined by factors particular to the
individual, and the clear implication is that selection techniques should be concerned with accessing and
measuring these personal factors, which can then be compared with those required for the job.

29. Ans. B
Exp. Maslows theory: Human needs are hierarchical in nature and that a person must satisfy lower-order needs
before higher-order needs can be attended to, thus, when a lower-order need is satisfied it ceases to be a
motivator. Freuds theory: A consumer's buying preferences are dictated by unconscious motives and those
visual, auditory and tactile elements of a product may evoke emotions which stimulate or inhibit purchase.
Herzbergs theory: a theory of motivation developed by Henry Herzberg in which satisfiers (factors that cause
satisfaction) are distinguished from dissatisfiers (factors which cause dissatisfaction), thus, consumers will
compare the number and degree of satisfiers to the number and degree of dissatisfiers before making purchase
decisions.

30. Ans. B

Exp. Demographic Segmentation: Gender, age, income, housing type, and education level are common
demographic variables. Geographic segmentation refers to the classification of market into various geographical
areas. Psychological variables are Personality, life style, social class, value, etc. can also be used for market
segmentation. Behavioural Segmentation: Buyers are divided into groups on the basis of their knowledge,
attitude, use or response to a product.

31. Ans. C
Exp. Line Stretching is a product line extension where use of an established products brand name for a new item
in the same product category. Line Extensions occur when a company introduces additional items in the same
product category under the same brand name such as new flavours, forms, colours, added ingredients, package
sizes. Down Market stretch ahppens when a company may introduce a new product/brand/model on the lower
side of the market with lower price, lesser features lower quality or any other variable. In Up Market stretch the
company may introduce a new product/brand/model on the higher side of the market with more features, more
quality, higher price or adding any other new variable. Companies serving the middle market might decide to
stretch their line in both directions is called Two way stretch.

32. Ans. A
Exp. Optional-Product Pricing is pricing of optional or accessory products along with a main product.
Companies that make products that must be used along with a main product are using captive-product pricing.
By-product Pricing is pricing for by-products in order to make the main product's price more competitive.
Product bundle pricing is combining several products and offering the bundle at a reduced price.

33. Ans. B
Exp. 4 Ps of marketing are Product, Price, Place, promotion. There are 3 additional Ps in case of marketing of
services. 3 Ps exclusive to services are People, Process and Physical evidence.

34. Ans. D
Exp. Legitimate power comes from the belief that a person has the right to make demands, and expect
compliance and obedience from others. Reward power results from one person's ability to compensate another
for compliance. Expert power is based on a person's superior skill and knowledge. Another two sources of power
are Referent (Result of a person's perceived attractiveness, worthiness, and right to respect from others) and
Coercive (Belief that a person can punish others for noncompliance) powers.

35. Ans.A
Exp. According to Maslow, human beings are motivated by unsatisfied needs. Maslow's hierarchy of needs is
portrayed in the shape of a pyramid, with the largest and most fundamental levels of needs at the bottom, and the
need for self actualization at the top. The order of needs from bottom to top is Physiological needs, Safety
Needs, Social Needs, Esteem Needs and Self Actualization.

36. Ans.D
Exp. The five types of departmentalization are: functional, product, customer, geographical and process.
Functional departmentalization: Production department, HR department, Accounts department, Marketing
department. Product departmentalization: Shampoo department, Shop department, conditioner department.
Customer departmentalization: B2B, B2C. Geographical departmentalization: North India market, east India
market, South India market. Process departmentalization is practiced in many factories with assembly line. The
employees are grouped into a team to take care of a specific process.

37. Ans. D
Exp. According to contingency theory, there is no single best way to manage behavior while hawthorne
experiment argues that people want to be belonged and be recognized as individuals. Theory of scientific
management believes best management is a true science and theory of hierarchy of needs states the human
beings are motivated by unsatisfied needs

38. Ans. A
Exp. Locus of control is a theory in personality psychology referring to the extent to which individuals believe
that they can control events that affect them. A person's "locus" is conceptualized as either internal (the person
believes they can control their life) or external (meaning they believe that their decisions and life are controlled
by environmental factors which they cannot influence).

39. Ans. D
Exp. According to human relations view, conflict is a natural and inevitable outcome in any group and that it
need not be evil, but rather has the potential to be a positive force in determining group performance.

40. Ans. A
Exp. Size of a group affect the groups overall behavior. The evidence indicates, for instance, that smaller groups
are faster at completing tasks than are Larger ones. However, if the group . is engaged in problem solving, large
groups consistently get better marks than their smaller counterparts. Large groups are good for gaining diverse
Input, but smaller groups are better at doing something productive with that input.

41. Ans. A
Exp. Selective perception is the process to see and judge your employees on their needs, motivations, experience
background, and other personal characteristics rather than work performance. Job equity focus on the factor of
maintain equality in the job design.

42. Ans. D
The ABC analysis is a business term used to define an inventory categorization technique often used in materials
management. It is a mechanism for identifying items that will have a significant impact on overall inventory
cost, while also providing a mechanism for identifying different categories of stock that will require different
management and controls.

43. Ans. D
Exp. Fixed Position Layout is the layout for project type systems in which the major component is kept at a fixed
position and all other materials, components, tools, machines, workers etc. are brought and assembly or
fabrication is carried out. This type of layout is not used very commonly as the machines required for
manufacturing work are big and complicated. Examples are ship building.

44. Ans. B

45. Ans. A
Exp. The chase demand strategy matches the production plan to the demand pattern and absorbs variations in
demand by hiring and firing workers. During periods of low demand, production is cut back and workers are laid
off. During periods of high demand, production is increased and additional workers are hired. The cost of this
strategy is the cost of hiring and firing workers.

46. Ans. A
Exp. Statistical process control (SPC) is the application of statistical techniques to determine whether the output
of a process conforms to the product or service design. SPC is implemented via control charts that are used to
monitor the output of the process and indicate the presence of problems requiring further action.

47. Ans. B
Exp. In lay person's terms, two events are 'mutually exclusive' if they cannot occur at the same time. An example
is tossing a coin once, which can result in either heads or tails, but not both.

48. Ans. C
Exp. Type I error means that the null hypothesis that was true has been rejected. The Type II error is opposite,
i.e. the false null hypothesis that should have been rejected has in fact been accepted in favour of the alternative
hypothesis that is true.

49. Ans. D
Exp. The regression line goes through all the points plotted on a scatter diagram. In other words there is a perfect
(positive) fit so that all the variation is explained by the regression line. We use the term positive to indicate
that both variables move in the same direction.

50. Ans. C
Exp. When n is large and p is small, the Poisson and binomial distributions will yield approximately the same
results. What is considered "large" and "small" is not precisely defined, but a general rule of thumb is that n
should be equal to or greater than 20 and p equal to or less than 0.05.