PPM Objective Set 14

Q1: When a partner is guilty of fraud or negligence within the scope of his authority 

Answer

Answer: All partners are liable even if there is no agreement to this effect

Q2: When a partner wants to withdraw from a partnership, what happens 

Answer

Answer: The partnership may have to be dissolved and its assets sold on an emergency basis below their true value

Q3: When a partnership is dissolved 

Answer

Answer: In any case of death of any of the partner or

Q4: When a product is similar to other on the market the promotional effort should 

Answer

Answer: Differentiate the advertiser’s products from all others

Q5: When a right to purchase securities is acquired it is known as 

Answer

Answer: Put option

Q6: When a right to sell a security is acquired, it is known as 

Answer

Answer: Call option

Q7: When an act is ultra vires a company, an outsider dealing with the company 

Answer

Answer: Can hold the directors liable for breach of implied authority

Q8: When an existing company offers its shares for sale to the existing shareholders, it is known as 

Answer

Answer: Rights issue

Q9: When an individaul’s income rise (while everything else remains the same), his demand for a normal goods 

Answer

Answer: Rises

Q10: When business is sold to a company, shares and debentures received are distributed in 

Answer

Answer: The ratio of their capital standing after profit or loss on realisation has been transferred

Q11: When competition enters the market, the product life cycle for the originator of the product enters the — stage 

Answer

Answer: Competitive

Q12: When cotton ginning, cotton spinning and cotton weaving mills combine, it is known as 

Answer

Answer: Vertical combination

Q13: When custom duty is levied according to the measurement of goods, it is known as 

Answer

Answer: Ad-valorem duty

Q14: When debenture sinking fund is created 

Answer

Answer: Both accounts involved belong to non-current category

Q15: When exports exceed imports, the balance of trade is 

Answer

Answer: Favourable

Q16: When Last-in-First-out (LIFO) method is in use, the ending inventory is valued at the 

Answer

Answer: Oldest prices paid for merchandise

Q17: When material price fluctuate widely the method of pricing that gives absurd results is 

Answer

Answer: Simple average price

Q18: When preliminary expenses are written off, it results in the 

Answer

Answer: No flow of fund

Q19: When premises are owned, a change is lieu of rent is 

Answer

Answer: Imputed cost

Q20: When prices fluctuate widely, the method that will smooth out the effect of fluctuation is 

Answer

Answer: Weighted average

Q21: When sales items are interspersed with regular priced items, in the ad, it is referred to as 

Answer

Answer: Semi promotional advertising

Q22: When SEBI came into force 

Answer

Answer: 1992

Q23: When the Articles of Association does not authorise the change in the capital, then in order to alter the capital of a company 

Answer

Answer: ‘Articles’ should be altered

Q24: When the name transferress is not filled in the transfer deed, without filling in the name of the transferre it is called 

Answer

Answer: Blank transfers

Q25: When the penetration pricing method is used 

Answer

Answer: When the new product is likely to be highly priced sometimes and there is no elite market for the product

Q26: When the task method is used to plan a promotional budget, the first step is to 

Answer

Answer: Review last year’s budget

Q27: Where the aggressor commands superior resources and believes that a swift all sided attack will break the opponent’s will the suitable strategy is 

Answer

Answer: Frontal attack

Q28: Where the stationary layout is issued 

Answer

Answer: Layout where semi-finished or finished good are completely processed at one place

Q29: Which are considered persons of India origin 

Answer

Answer: Born in India

Q30: Which class of share holders are entitled to arrers of dividends 

Answer

Answer: Cumulative Preference Shareholders (CPS)

Q31: Which is a strong concept of classical theory 

Answer

Answer: Span of control

Q32: Which is called a naturalistic or an organic organisation 

Answer

Answer: Project

Q33: Which is called innovation in socio technical systems 

Answer

Answer: Similarities at the extremes

Q34: Which is called the second stage of industrial revolution 

Answer

Answer: Automation

Q35: Which is not a security of a company 

Answer

Answer: Fixed deposit receipt

Q36: Which is of primary concern from the standpoint of morale 

Answer

Answer: Voluntary employee turnover

Q37: Which method of costing is used in hospitals 

Answer

Answer: Unit costing

Q38: Which of the following accounts have only credit balance 

Answer

Answer: All of these—a)Reserve Fund account
b)Capital account
c)Share premium

Q39: Which of the following accounts is increased by debit entries 

Answer

Answer: All of these—a) Machinery account
b)Discount earned account
c)Purchases return account

Q40: Which of the following accounts will invariably have a debit balance 

Answer

Answer: Accounts payable

Q41: Which of the following are as makes the largest contribution to the national income in India 

Answer

Answer: Industry

Q42: Which of the following are components of organised sector of stock exchange 

Answer

Answer: Investors in securities

Q43: Which of the following are current liabilities 

Answer

Answer: Outstanding wages

Q44: Which of the following asserts the people tend to affiliate with one another because of spatial or geographical closeness 

Answer

Answer: Propinquity theory

Q45: Which of the following assets is not a quick current asset for the purpose of calculating acid test ratio 

Answer

Answer: Stock

Q46: Which of the following assets is not an intangible asset 

Answer

Answer: Claims for refund of cheques

Q47: Which of the following can be partner in a partnership firm 

Answer

Answer: A Public Limited Company

Q48: Which of the following companies may issue share warrants 

Answer

Answer: Both the above Public Ltd.co

Q49: Which of the following companies must file a statement in lieu of prospectus 

Answer

Answer: A public company which has not issued a prospectus

Q50: Which of the following document contains rules and regulations for internal management of the company 

Answer

Answer: Articles of Association

Q51: Which of the following document is known as ‘unalterable charter’ of the company 

Answer

Answer: Memorandum of Association

Q52: Which of the following document is not required for opening the account of a private limited company 

Answer

Answer: Certificate of commencement of business

Q53: Which of the following documents defines the relation of the company with the outside world 

Answer

Answer: Memorandum of Association

Q54: Which of the following does not describe a good objective 

Answer

Answer: Flexible

Q55: Which of the following does not result in the flow of fund 

Answer

Answer: Issue of bonus shares

Q56: Which of the following forms is recognised by law in India 

Answer

Answer: Holding company

Q57: Which of the following has implications for interpreting the behaviour of war atrocities 

Answer

Answer: Milgram’s obedience to authority study

Q58: Which of the following has refined Maslow’s theory by proposing a hierarchy of three needs 

Answer

Answer: Alderfer

Q59: Which of the following incentive methods of wage payment should be used for indirect workers 

Answer

Answer: None of these—(a) Rowan Plan (b) Taylor’s differential piece rate system (c) Hasley Plam

Q60: Which of the following industries are not suitable for use of multiple costing 

Answer

Answer: Paper mill

Q61: Which of the following is a business promotion 

Answer

Answer: Speciality advertising

Q62: Which of the following is a combination of firms in successive stages of manufacture in the same industry 

Answer

Answer: Vertical combination

Q63: Which of the following is a current liability 

Answer

Answer: Outstanding wages

Q64: Which of the following is a motivator of satisfier in Herzberg’s of motivation 

Answer

Answer: Advancement

Q65: Which of the following is a non-current asset 

Answer

Answer: Land

Q66: Which of the following is a non-current liability 

Answer

Answer: Long term loans

Q67: Which of the following is an a econometric mode 

Answer

Answer: Trend analysis

Q68: Which of the following is an accounting equation 

Answer

Answer: Assets = Capital + Liabilities
Capital = Assets – Liabilities

Q69: Which of the following is an effective technique of cost control 

Answer

Answer: Standard costing

Q70: Which of the following is an equation 

Answer

Answer: Capital + Liabilities – Assets = Zero

Q71: Which of the following is an example of a company incorporated by a special act of Parliament 

Answer

Answer: Industrial Finance Corporation of India Ltd

Q72: Which of the following is an extractive industry 

Answer

Answer: Hunting

Q73: Which of the following is associated with instrumental conditioning 

Answer

Answer: Hull

Q74: Which of the following is correct 

Answer

Answer: Opening stock + Purchases – Cost of goods sold = Closing stock

Q75: Which of the following is indispensible to the mission 

Answer

Answer: Primary goal

Q76: Which of the following is most similar to piecework 

Answer

Answer: Commission

Q77: Which of the following is not a current liability 

Answer

Answer: Minority interest

Q78: Which of the following is not a function of advertising agency 

Answer

Answer: Account management

Q79: Which of the following is not a function of the board of directors 

Answer

Answer: Supervise day-to-day operation of the business

Q80: Which of the following is not a long term source of finance 

Answer

Answer: Fixed deposits

Q81: Which of the following is not a manufacturing industry 

Answer

Answer: Mining

Q82: Which of the following is not a staff function 

Answer

Answer: Sales

Q83: Which of the following is not a type of strategic control 

Answer

Answer: Special alert control

Q84: Which of the following is not an advantage of committee organization 

Answer

Answer: Absence of individual responsibility for decisions and recommendations

Q85: Which of the following is not an economic activity 

Answer

Answer: A student playing cricket

Q86: Which of the following is not an element of firm’s immediate external environment 

Answer

Answer: Suppliers

Q87: Which of the following is not an ownership security 

Answer

Answer: Debentures

Q88: Which of the following is not correct 

Answer

Answer: Cost of goods sold – closing stock – Purchases = Opening stock

Q89: Which of the following is not false 

Answer

Answer: Closing stock + Cost of goods sold – Opening stock = Purchase

Q90: Which of the following is not the economic factor for the cases of poverty 

Answer

Answer: Mass literacy

Q91: Which of the following is the oldest type of organisation 

Answer

Answer: Line organisation

Q92: Which of the following is the top administrative organ of the company 

Answer

Answer: Board of director

Q93: Which of the following kinds of insurance, insurable interest should be present only at the time of loss subject matter 

Answer

Answer: Valued policy

Q94: Which of the following management functions are closely related 

Answer

Answer: Planning and control

Q95: Which of the following methods is not used for raising capital through the sale of new securities 

Answer

Answer: Stock exchange in placing

Q96: Which of the following pairs of commodities is an example of substitutes 

Answer

Answer: Mustard oil and coconut oil

Q97: Which of the following ratio is a favourable indication if it is low 

Answer

Answer: Operating ratio

Q98: Which of the following ratios is an overall measure of an unit’s profitability 

Answer

Answer: Return on capital employed

Q99: Which of the following results in the flow of funds 

Answer

Answer: Building sold on credit

Q100: Which of the following securities is not redeemable 

Answer

Answer: Equity shares