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Questions on Marketing Management
1. Assertion (A): Usually a company treats brand only as name and it misses the point of branding.
Reasoning (R): Brand name needs to be carefully managed so that its equity does not get depreciated.
(A) Both (A) and (R) are correct and (R) is the correct explanation of A
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)
(C) (A) is correct but (R) is incorrect
(D) (A) is incorrect but (R) is correct
2. A portfolio consisting of two risky securities can be made riskless i.e. σp = 0, if:
(A) the securities are perfectly positively correlated
(B) the securities are perfectly negatively correlated
(C) the correlation ranges between 0 to 1
(D) the correlation coefficient r = 0.5
3. Which one of the following is a record of country’s monetary transactions with the rest of the world, during a given period of time?
(A) International trade
(B) Balance of trade
(C) Balance of payment
(D) Current account
4. Appropriate meaning of compensable factors is:
(A) Common job characteristics that an organization is willing to pay for such as skill, efforts and responsibility etc
(B) A rise in pay based on performance
(C) Practice of using fewer pay grades having broader ranges than traditional compensation system
(D) Shows the relationship between the value of the job and average wage paid
5. In the case of only one variable factor in a production process, other factors assumed to be unchanging, if the total product is at its maximum, the corresponding marginal product is …………………. .
(A) also maximum
6. Poor quality lateral communication will result in which of the following?
(A) lack of direction
(B) lack of co-ordination
(C) lack of delegation
(D) lack of control
7. Advantages of transfer include all but …………………. .
(A) improves better use of human resources
(B) helps in managing dual career
(C) enhancing the individual’s motivation
(D) broadening the employees’ perspective
8. “Off the balance sheet financing” refers to financing through:
(A) Intercorporate deposits
(B) Public deposits
(C) Leasing arrangement
(D) Venture capital
9. The controllable variables a company puts together to satisfy a target group is called the ……………………. .
(A) marketing strategy
(B) marketing mix
(C) strategic planning
(D) marketing concept
10. Which of the following statements is true?
(1) An intermittent flow system is characterised by a streamlined flow of products in the operating system
(2) Continuous flow systems are characterised by mid volume, mid variety products/services
(3) Jumbled flow system is characterised by non-standard and complex flow patterns
(4) The nature of flow in operations has no impact on the process choices available to the operations manager
Choose the correct option:
11. The measure of how well the regression line fits the data is the:
(A) slope of regression line
(B) mean square error
(C) coefficient of determination
(D) standard error of the regression coefficient
12. Which of the following is not a support activity in Michael Porter’s value chain analysis model?
(A) Firm infrastructure
(C) Technology development
(D) After sales services
13. …………………….. is the payment method most often used in international trade which offers the exporter best assurance of being paid for the products sold internationally.
(A) Bill of lading
(B) Letter of credit
(C) Open account
(D) Bank draft
14. The method used to give new or present employees the skills they need to perform their jobs are called ……………………… .
15. Which of the following markets will be less competitive?
(A) High barriers to entry
(B) Presence of large number of substitutes
(C) Strong bargaining power of suppliers
(D) Strong bargaining power of distributors
16. The customer pages of a company on ‘Facebook’ is an example of:
(A) Viral marketing
(B) Social media marketing
(C) Network marketing
(D) Referral marketing
17. The type of financing in which the purchaser approaches the shareholders directly instead of the management to acquire interest in acquired firm is known as:
(A) Preference share financing
(B) Tender offer
(C) Deferred payment plan
(D) Ordinary share financing
18. Who proposed that a country produces and exports the product in which she has absolute advantage and import the rest of the products from other countries?
(A) David Ricardo
(B) Adam Smith
19. Who takes the advantage of leverage i.e. the possibility of large potential gains and large potential losses in the derivatives market?
20. When the price of petrol rises, demand for automobiles decreases because car and petrol are:
(A) Complementary goods
(B) Substitute goods
(C) Inferior goods
(D) Normal goods
21. Which of the HR functions is least affected by internationalisation?
(A) Succession planning
(B) Equal employment opportunities
22. The following is not an objective of wage incentive programme:
(A) Developing ownership interest
(B) Improving employee retention
(C) Reducing labour costs
(D) Facilitating the separation of employees
23. Firm A acquires firm B, MPS of B is Rs. 20 and EPS is Rs. 5. For an exchange ratio of 1.5: 1 what was the P/E ratio used in acquiring B?
24. Which of the following statements is not true for services?
(A) Most service products cannot be inventoried
(B) Intangible elements usually dominate value creation
(C) Operational inputs and outputs do not vary
(D) Customers may be involved in co-production
25. The product of ‘actual time’ ‘performance rating’ and ‘allowance factor’ is known as:
(A) Cycle time
(B) Standard task time
(C) Completion time per unit
(D) Setup time
26. Information system that monitors, the elementary activities and transactions of the organisations are:
(A) Management level systems
(B) Operational level systems
(C) Knowledge level systems
(D) Strategic level systems
27. A conglomerate diversification strategy involves …………………….. .
(A) Diversifying into related areas
(B) Diversifying into unrelated areas
(C) Joining hands with competitors
(D) Forging collaboration with foreign companies
28. On basis of the statements given below answer the question given:
(1) It is ethical to make exaggerated claims in advertisements
(2) It is ethical to degrade rival products in advertisements
(3) It is ethical to make false claims in advertisements
(4) Advertisements which are obscene are ethical
(A) Statements (3) and (4) are incorrect
(B) All statements (1), (2), (3) and (4) are incorrect
(C) Only statements (3) and (4) are incorrect
(D) Only statement (4) is incorrect
29. Which of the following statements is incorrect?
Ethical codes ……………….. .
(A) are statements of norms and beliefs of an organisation
(B) establish priorities between norms and beliefs
(C) should be updated periodically
(D) are considered as ‘window dressing’ by many employees
30. When looking at consumer’s income, marketers are most interested in:
(A) Inflationary income
(B) Disposable income
(C) Gross income
(D) Discretionary income
31. The goal of wealth management does not take into consideration:
(A) Risk related to uncertainty of returns
(B) Timing of expected returns
(C) Amount of returns expected
(D) Impact of competition on cash flows
32. Suppose country ‘A’ produces a new product which will be produced by country ‘B’ within a stipulated period of time. This gap in time period is called ……………….. .
(A) Time lag
(B) Demand lag
(C) Supply lag
(D) Imitation lag
33. Which one of the following entry models for international business has maximum risk but maximum reward also?
(C) Direct exporting
(D) Indirect exporting
34. Choose the correct option: Allowance given for using capital equipment for production is known as:
35. The first stage of conflict resolution is to:
(A) define the problem
(B) analyse the problem
(C) choose a solution
(D) think through possible solutions
36. Training objectives should be expressed in:
(A) Employee behaviour
(B) Needs assessment
(C) Employee reactions
(D) Subjective judgement
37. Which of the following is not an assumption of the MM theory for irrelevance of dividends?
(A) Irrational investors
(B) No tax discrimination on capital gains and dividends
(C) No transaction costs
(D) No floatation costs
38. The firm’s orientation characterised by the belief that ‘a good product will sell itself’ is a reflection of:
(A) Sales orientation
(B) Product orientation
(C) Relationship orientation
(D) Marketing orientation
39. Which of the following methods is used to measure correct demand?
(A) Market build up method
(B) Survey of buyer’s intentions
(C) Composite of sales force opinions
(D) Past sales analysis
40. In a bank customers arrive once in every 3 minutes. What is the probability of exactly 10 customers arriving at the bank within a time period of half an hour?
41. Two cards are drawn in succession from a standard 52 card deck. What is the probability that both the cards are aces if the cards are drawn without replacement?
42. Which among the following is not a distinctive competitive advantage for SSI’s?
(A) Ability to mobilize local resources
(B) Quick response to rapidly changing environment
(C) Better managerial control
(D) Economies of scale
43. Select the correct option: A teleological approach to business ethics proposes that the guiding principle should be:
44. Which of the following is not one of the main reasons for major changes in performance appraisal in recent years?
(A) Total quality management
(B) Knowledge management initiatives
(C) Government legislation
(D) Team work initiatives
45. Company ‘A’ is interested in finding out if the demand for a particular brand of detergent is sensitive to higher or lower prices. What type of research design would be most suitable to carry the research?
(A) Experimental Research Design
(B) Exploratory Research Design
(C) Descriptive Research Design
(D) Secondary Data Research
46. Which of the following statements is True?
(A) Forward exchange contracts are traded on at an organised exchange
(B) Future contracts are carried out through direct dealing between parties
(C) Leading and lagging is an internal technique of foreign exchange risk management
(D) Translation profits or losses must be reflected in the income statement
47. When the market forces reduce the external value of a currency, then the process is called ………………….. .
(C) Exchange rate depreciation
48. Employee orientation programme should be the concern of:
(A) top management
(B) the supervisor
(C) the HR department
(D) both the HR department and the supervisor
49. “Extra leg space” in aircraft and “services guarantee” are examples of:
(A) Demand-supply management strategies in services
(B) C.R.M. initiatives in services
(C) Tangibilising the intangibles in services
(D) Creative pricing in services
50. The OPEC operating at the international level is the case of a ………………………. .
(A) Holding company
(C) Multinational company