PPM Objective Set 11

Q1: The minimum number of shareholders in a Public Limited Company is 

Answer

Answer: 7

Q2: The mionopoliliatic firm will be in equilibrium where 

Answer

Answer: Marginal revenue = Marginal cost

Q3: The mission 

Answer

Answer: Establishes general direction

Q4: The mission is a statement of 

Answer

Answer: Attitude

Q5: The mission statement clearly indicates 

Answer

Answer: All of these—a)Basic products
b)Basic market
c)Primary technology

Q6: The most common grand strategy is 

Answer

Answer: Turnaround

Q7: The most common method used for marketing of new securities is 

Answer

Answer: Direct sale to public through prospectus

Q8: The most common reason for the dissolution of a joint venture is that a syndicate is formed 

Answer

Answer: To accomplish a series of purposes

Q9: The most important advantage of a joint stock company form of business organisation is that 

Answer

Answer: It mobilises vast amount of financial resources

Q10: The most important advantage of the corporation to the stock holder is 

Answer

Answer: Limited liability

Q11: The most important economic function of new issue market is to 

Answer

Answer: Provide facilities for covering saving into investments

Q12: The most important test of solvency of business is calculated with the help of the following ratio 

Answer

Answer: Total assets

Q13: The most practical approach to advertising budgeting is 

Answer

Answer: Based on the task to be accomplished

Q14: The most rigorous test of liquidity is 

Answer

Answer: Acid test ratio

Q15: The most suitable cost system where the products differ in type of materials used and work performed is 

Answer

Answer: Job costing

Q16: The National Small Industries Corporation was set up in 

Answer

Answer: 1955

Q17: The need-hierachy theory of motivation is given by 

Answer

Answer: Maslow

Q18: The nine-cell CE matrix is an improvement over the four-cell BGG matrix because 

Answer

Answer: It eliminated the need to consider strategies for “average” business

Q19: The number of coples to be prepares for a bill lading are 

Answer

Answer: three

Q20: The number of members in a private company should not exceed 

Answer

Answer: 50

Q21: The number of partners in a partnership firm is limited to…. persons doing banking business 

Answer

Answer: 10

Q22: The number that divided a group in half is known as 

Answer

Answer: The median

Q23: The object of F.E.D.A.I is 

Answer

Answer: With the prior approval of the RBI, regulate foreign exchange dealings by framing rules for the conduct of exchange business

Q24: The objective of financial accounting is to provide information to individuals and organizations 

Answer

Answer: Within the business firm

Q25: The oldest form of business organisation is 

Answer

Answer: Sole partnership

Q26: The operating environment consists of 

Answer

Answer: All of these—a)Competitors
b)Labourers
c) Customers

Q27: The organizational structure that is considered to be separate from its owner is known as 

Answer

Answer: The corporation

Q28: The organizational theory which emphasizes human behaviour is the 

Answer

Answer: Neoclassical

Q29: The outline in monetary terms of a firm’s planned activities is called 

Answer

Answer: A budget

Q30: The owners of a company are subject to 

Answer

Answer: Unlimited liability

Q31: The partnership entity is 

Answer

Answer: Legal entity and accountable entity

Q32: The percentage of advertising messages in a medium by one brand among all messages for that product or services is called as 

Answer

Answer: Share of voice

Q33: The percentage of customers who name the competitor in response of the statement ‘Name the company from whom you would prefer to buy the product is referred as 

Answer

Answer: Share of voice

Q34: The person concerned with discipline and absenteeism of workers is called as 

Answer

Answer: Shop disciplinarian

Q35: The phrase ‘demonstration effect’ was coined by 

Answer

Answer: James Dussenberry

Q36: The poverty line is defined as 

Answer

Answer: The line is minimum caloric intake for bare subsistence

Q37: The present paid up capital of DICGC is 

Answer

Answer: Rs. 15 crores

Q38: The price of a share quoted in the stock exchange is cum, dividend when 

Answer

Answer: It is inclusive of dividend declared

Q39: The primary factor in retail targeting is 

Answer

Answer: Product

Q40: The primary function of an office is 

Answer

Answer: Making using and preserving records

Q41: The principle of subrogation applies to 

Answer

Answer: Fire insurance and marine insurance

Q42: The process of accounting includes 

Answer

Answer: All the above

Q43: The process of formulating a strategy is largely 

Answer

Answer: Grand strategy

Q44: The process used in salt mining is 

Answer

Answer: Extractive

Q45: The product for which there are few, if any major differences are 

Answer

Answer: Cluster products

Q46: The proportion of term liabilities to net worth is as curtained by 

Answer

Answer: Debt equity ratio

Q47: The purpose of a letter of credit is to 

Answer

Answer: Establish the bonafides of exporter

Q48: The purpose of a Memorandum of a company is to 

Answer

Answer: Inform the shareholders as to what the objects of the company are

Q49: The QWL approach has been voluntary in nature jointly undertaken as a mutual responsibility in 

Answer

Answer: USA

Q50: The rate at which RBI discounts approved bill of exchange is 

Answer

Answer: Discount rate

Q51: The real owners of a company are 

Answer

Answer: Equity shareholders

Q52: The remote environment includes 

Answer

Answer: Suppliers

Q53: The Reserve Bank is the agent of Central Government and all State Governments in India excepting that of 

Answer

Answer: Jammu and Kashmir

Q54: The results which an organization seeks over a multiyear period are its 

Answer

Answer: Grand strategies

Q55: The retail stores establishes its image as a leader in fashion price and wide merchandise selection, as well as superior service, or quality through 

Answer

Answer: Display advertising

Q56: The return on the capital employed ratio is determined by dividing 

Answer

Answer: Net profit after interest, tax and dividend by paid up share capital
Profit before interest, tax and dividend by total assets

Q57: The risk capital is provided by 

Answer

Answer: Equity shareholders

Q58: The role of ‘staff’ in line staff organisation is 

Answer

Answer: Advisory

Q59: The safest method of product pricing is 

Answer

Answer: Total cost method

Q60: The sales logic-behind an advertising message is known as 

Answer

Answer: Message benefit

Q61: The sales manager’s control over the sales persons activity can be maximised by the compensation system of 

Answer

Answer: Commission

Q62: The schedule of change in working capital is prepared with the help of 

Answer

Answer: Current assets and current liabilities

Q63: The significance of leadership stemp from 

Answer

Answer: Incompleteness of organisational design

Q64: The strategic management model is 

Answer

Answer: Prescriptive

Q65: The style of marketing relevant where there is and irregular demand is 

Answer

Answer: Synchro marketing

Q66: The success of a flexible budget depends upon careful study and classification of expense into 

Answer

Answer: Fixed, variable and semi-variable

Q67: The sum of the total exposure potential of a series of media vehicles expressed as a percentage of the audience population is referred as 

Answer

Answer: Total rating points

Q68: The term “Balance of trade” means 

Answer

Answer: The difference between the total cost of the imports and cost of exports of the country

Q69: The term “Bank money” denotes 

Answer

Answer: Demand deposits used as money i.e. deposits with drawable by cheques

Q70: The term “Blue chip” means 

Answer

Answer: Shared of progressive, soundly run Public Limited companies with excellent dividend record

Q71: The term “Cheap Money” is used to denote 

Answer

Answer: A situation where the banks and other financial institutions charge low rates of interest on their loans and advances

Q72: The term “Hallow Corporation” refers to the company with 

Answer

Answer: No vertical integration

Q73: The term “Hot money” means 

Answer

Answer: Short-term capital investments from the country to an other seeking safety, or less often, higher rate of interest

Q74: The term “Hyper-inflation” is used to denote 

Answer

Answer: A situation when inflation is the result of external factors

Q75: The term “Imprest System” is used in relation to 

Answer

Answer: Petty cash book

Q76: The term “liquid surplus” means 

Answer

Answer: Cash in hand and at bank

Q77: The term “Paper Gold” means 

Answer

Answer: Special Drawing Rights

Q78: The term “tangible net worth” means 

Answer

Answer: Equity plus reserves minus intangible assets

Q79: The term “Token money” means 

Answer

Answer: Coins where the value of metal in them is less than the value attached to them by law

Q80: The term ‘Capitalisation’ is used in relation to 

Answer

Answer: Joint stock companies

Q81: The term ‘funds’ as used in ‘funds flow statement’ means 

Answer

Answer: Current assets minus current liabilities

Q82: The term ‘Junk Mail’ refers to 

Answer

Answer: Direct marketing

Q83: The term ‘Kite Flying’ refers to 

Answer

Answer: Drawing, accepting of bills just to accommodate the other party without backing of any genuine trade transaction

Q84: The term ‘Merchant Banking’ connotes 

Answer

Answer: Service rendered by banks for merchants and traders

Q85: The term ‘working capital’ means 

Answer

Answer: Current assets minus current liabilities

Q86: The term annuity stands for 

Answer

Answer: Money paid each year to are tired person in return for a lumpsum

Q87: The term bench mark indicates 

Answer

Answer: Point of reference for assessment

Q88: The term current liabilities is used to describe such obligations which are paid within one year and 

Answer

Answer: Both—a)Out of current assets
b)By creating current liabilities

Q89: The term depletion is used in relation to 

Answer

Answer: Wasting assets

Q90: The term fixed assets include 

Answer

Answer: Long term investment

Q91: The term meritocracy stands for 

Answer

Answer: A merit based selection system

Q92: The term milkround, indicates 

Answer

Answer: Regular incentives

Q93: The term organisation means 

Answer

Answer: The process of assigning duties to individuals to achieve specified ends effectively

Q94: The term poaching means 

Answer

Answer: Enticing employees to work for another organization

Q95: The term psychometrics indicates 

Answer

Answer: Way of measuring intelligence and personality when the result is shown on a scale

Q96: The term sensitivity training indicates 

Answer

Answer: A training to develop special skills

Q97: The term show of hands stands for 

Answer

Answer: A trial of strength

Q98: The term used for new employees hired by management in order to cause regular workers to return by their positions is 

Answer

Answer: Yellow-dogs

Q99: The term vestibule training stands for 

Answer

Answer: Job rotation

Q100: The term watch dog body signifies 

Answer

Answer: A Govt. Deptt. To monitor business activities

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