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Question Bank

KSET Management (Paper 2) Exam - English

Duration: 120 Β· Questions: 100 Β· Max Marks: 200 Β· Language: 3

View KSET Management 2026 Exam Page

Management

1
Indicate the correct code for the scope of managerial economics from the following :
(a) Demand Analysis
(b) Production and Cost Analysis
(c) Pricing and Investment Decisions
(d) Factor pricing Decisions
(e) Economic Environmental Analysis
     Codes :
  1. A.(a), (b), (c), (d)  
  2. B.(b), (c), (d), (e)
  3. C.(a), (b), (c), (e)  
  4. D.(a), (c), (d), (e)
2
Which one of the following will be the appropriate pricing strategy for a new product expecting an expanding market?
  1. A.Monopoly pricing
  2. B.Skimming pricing
  3. C.Penetrating pricing
  4. D.Differential pricing
3
Match the items of the List-I with those of the List-II and suggest the correct code from the following :
      List-I                                  List-II
(a) Loss Leader               (i) Locational price differentials
(b) Unchanged Pricing     (ii) Products with high initial demands
(c) Basing Point Pricing   (iii) Product line pricing     
(d) Skimming Pricing       (iv) Oligopoly pricing
    Code :
  1. A.(a)    (b)    (c)    (d)
    (i)    (ii)    (iii)    (iv)
  2. B.(iii)    (iv)    (i)    (ii)
  3. C.(iv)     (ii)    (i)    (iii)
  4. D.(iii)    (i)    (ii)    (iv)
4
In case the firm makes varying investments on the different investment projects, the appropriate project evaluation technique would be, which one of the following?
  1. A.Average annual rate of return technique
  2. B.Pay back period technique
  3. C.Net present value technique
  4. D.Profitability index technique
5
According to Henry Fayol, which one of the following combinations of qualities are required in a manager?
  1. A.Physical, mental, experience, educational and conceptual.
  2. B.Technical, human, conceptual, mental and moral.
  3. C.Physical, mental, moral, educational, technical and experience
  4. D.Mental, moral, conceptual, educational, technical and experience.
6
The following is the demand function :
Q =100-5P
What will be the point price elasticity of demand at price 10?
  1. A.2.00
  2. B.1.00
  3. C.0.85
  4. D.0.50
7
Match the items of List-1 with the items of List-2  and select the code of correct matching :
List-1
(a) sales revenue maximization
(b) maximization of a firm's growth rate
(c) maximization of managerial utility function
(d) Satisficing behaviour model
List-2
(1) Williamson's model
(2) Cyert-March Hypothesis
(3) Baumol's Theory
(4) Marri's Theory
  1. A.Codes:
    (a)   (b)   (c)   (d)
    (3)   (4)   (1)   (2)
  2. B.(1)  (2)  (4)  (3)
  3. C.(2)  (3)  (1)  (4)
  4. D.(4)  (3)  (2)  (1)
8
Assertion (A) : the perceived risk of operating a domestic firm in international environment is much higher.
Reason (R) : the international environment is more volatile and the domestic firm generally does not have full information about the environment.
  1. A.Codes :
    Both (A) and (R) are correct.
  2. B.Both (A) and (R) are incorrect.
  3. C.(A) is correct while (R) is incorrect.
  4. D.(A) is incorrect while (R) is correct.
9
Statement-1 : the accept-reject approach is adopted generally when a firm has a large amount of funds to invest in several projects at the same time.
Statement-2 : Both the NVP and the IRR methods of investment appraisal are based on discounted cash flow approach.
  1. A.Both the statements are correct.
  2. B.Both the statements are incorrect.
  3. C.Statement-1 is correct while statement-2 is incorrect.
  4. D.Statement-1 is incorrect while statement-2 is correct.
10
Which process is used by a person (perceiver) to deal with conflicting messages and conflicting data?
  1. A.Halo effect
  2. B.The process of checking
  3. C.Perceptual defence
  4. D.The process of reacting
11
Which one of the following assumptions is not related to consumer behaviour based on the Cardinal utility approach ?
  1. A.Rationality
  2. B.Diminishing marginal utility of money
  3. C.Utility cardinally measurable
  4. D.Maximization of satisfaction with limited money income
12
Statement 1 : a rectangular hyperbola shaped demand curve has uniform slopes on all its points.
Statement 2 : If the price elasticity is equal to Unity, the marginal revenue corresponds to zero.
  1. A.Codes :
    both the statements are correct.
  2. B.both the statements are incorrect.
  3. C.statement 1 is correct while Statement 2 is incorrect.
  4. D.Statement 1 is incorrect while Statement 2 is correct.
13
Match the items of list-1 with the items of list-2 and find the correct combination :
List-1 (Market Structure)
(a) Perfect competition
(b) Oligopoly
(c) Monopoly
(d) Monopolistic competition
List-2 (Nature of industry where prevalent)
(1) Aluminium and passenger cars
(2) public utilities like telephones and electricity
(3) manufacturing : T.V sets, refring-erators
(4) Farm Products : Grains
  1. A.Codes :
    (a)  (b)  (c)  (d)
    (1)  (2)  (3)  (4)
  2. B.(4)  (1)  (2)  (3)
  3. C.(3)  (4)  (1)  (2)
  4. D.(2)  (3)  (4)  (1)
14
Statement-1 : In general, the MVP and IRR methods lead to the some acceptance or rejection decision when a single project is involved.
Statement-2 : The inconsistency in ranking of competing projects as per the NVP and IRR methods lies in the implicit assumptions with regard to different rates of returns on re-investment of intermediate cash flows.
  1. A.Codes :
    both statements are.
  2. B.both statements are incorrect.
  3. C.Statement-1 is correct while Statement-2 is incorrect.
  4. D.Statement-1 is incorrect while Statement-2 is correct.
15
Which one of the following is not covered in macro-economics?
  1. A.performance of the entire economy
  2. B.price and output determination of a commodity
  3. C.factors and forces of Economics fluctuations
  4. D.Monetary and fiscal policies
16
If the demand for using the Noida Express way is given by :
Q = 40,000 - 2500 P
Where Q is the number of users (vehicles) and P is the amount of toll collected per unit who uses the express way. In light of this information which of the following is true :
  1. A.At P = Rs.6 and Q = 14000; demand is price inelastic.
  2. B.At P =  Rs.7 and Q = 16,500; demand is unitary elastic.
  3. C.At P = Rs. 4 and Q = 9500; demand is Price elastic.
  4. D.All of the above
17
If a 100 % scale -efficient plant has 92 % technical efficiency and 88.5 % allocative -efficiency, thrn its overall efficiency will be :
  1. A.88.5 %
  2. B.90.25 %
  3. C.93.0 %
  4. D.81.42 %
18
The market share data for an industry, comparison five companies, it's given below :
Company.                       Market Share (%)
 A.                                       35
 B.                                        25
 C.                                        18
 D.                                        12
E.                                       10
This  industry's three- firms Herfindahl-Hirschman index shall be :
  1. A.0.234
  2. B.0.217
  3. C.0.151
  4. D.0.0175
19
For an economy which consists of single automobile maker and that in Year 2014, 30000 vehicles are produced with an average price of 500000 lakh. For this economy what would be the increase in the nominal GDP for 2015 compared with 2014 with the 4 % greater automobile production and 8% inflation.
  1. A.4.0 %
  2. B.12.0 %
  3. C.6.0 %
  4. D.12.32 %
20
Demand Policies targeted to reduce the unemployment become ineffective in presence of the following :
  1. A.Vertical Phillips curve
  2. B.Money Illusion and ignorance among workers
  3. C.Horizontal Phillips curve
  4. D.None of the above
21
In the market- oriented system, for the allocation of resources which one the following is the most appropriate convevyor of information ?
  1. A.Finance Ministry
  2. B.Central Bank
  3. C.Market Price
  4. D.Advertisement Expenditure 
22
A company supplies 20 units of a particular products per month, at a price of Rs 10 per unit. Is price elasticity of supply is 5, how many units would be company supply at a price of Rs 15 ?
  1. A.50
  2. B.70
  3. C.40
  4. D.5
23
Which characteristic is not likely to be a part of perfect competition ?
  1. A.Absence of indepence
  2. B.Deadweight loss is non-existent
  3. C.Strong rivalry
  4. D.Absence of advertisement
24
Match the items given in List-I and List-II by considering which of the following are macroeconomic issues and which are macroeconomic ones :
           List-I.                                                                      List-II
a. The level of government revenue.                         (i) Microeconomic
b. The rate of inflation                                                (ii) Microeconomic
c. The price of T.V. set
d. The amount saved last year by households
  1. A.Codes :
    (a).             (b).            (c).             (d)
    (ii).              (i).             (i).             (ii)
  2. B.(ii).             (i).             (ii).             (i)
  3. C.(i).             (ii).            (ii).             (ii)
  4. D.(ii).           (ii).             (i).             (ii)
25
In the recent years, World economy has witnessed the unfluence of unconventional monetary policy of the U.S.A. This policy stanse is known as :
  1. A.Bank rate
  2. B.Taylor rule
  3. C.Reserve Requirement
  4. D.Quantitative easing
26
In the case the price (P), quantity (Q), and changes (Òˆ†) are represented by respective symbols given in the brackets, the price elasticity of demand (Ed) is measured by :
  1. A.Ed = Òˆ†Q / Òˆ†P
  2. B.Ed = (Òˆ†Q/Q)/( Òˆ†P/P)
  3. C.Ed = (Òˆ†P/P)/ (Òˆ†Q/Q)
  4. D.Ed = (Òˆ†P/P)/( Òˆ†Q/Q)
27
Law of Diminishing Return applies when the gaps among the successive 'multiple level of output' isoquants :
  1. A.decreases
  2. B.remains constant
  3. C.increases
  4. D.remains irregular
28
In case of the demand elasticity under imperfect competition in utility, the marginal revenue will be :
  1. A.more than utility, but less infinity.
  2. B.Equal to Unity
  3. C.less than Unity, but more than zero
  4. D.Equal to zero
29
Rice in general price level alongwith declining output in the economy is called ?
  1. A.Inflation
  2. B.Deflection
  3. C.Stageflation
  4. D.Demand -pull inflation
30
National income equilibrium is not at the level where :
  1. A.aggregate investment equal aggregate savings
  2. B.aggregate expenditure equal aggregate income
  3. C.Inflationary and deflationary gaps are absent
  4. D.aggregate consumption is constant
31
The Marshallian utility analysis is based on a less valid assumption of:
  1. A.Cardinal measurement of utility
  2. B.Constant marginal utility of money
  3. C.Diminishing marginal utility of goods
  4. D.Additivity of the utility 
32
An appropriate pricing strategy for a new product to be introduced in the market will be:
  1. A.Average/ Marginal cost-plus pricing
  2. B.Skimming/Penetrating pricing
  3. C.Product-line pricing
  4. D.Differential pricing 
33
Economic capacity of a plant represents the firm’s capability for: 
  1. A.Maximum physical output
  2. B.Maximum marginal output
  3. C.Break-even level of output and sale 
  4. D.Output that equates average and marginal costs
34
Which one of the following practices is not sought to be regulated under the Consumer Protection Act, 1986?
  1. A.Sales of defective goods
  2. B.Supply of services having some deficiency
  3. C.Misleading advertisements
  4. D.Goods supplied free of charge
35
The leadership prototype: 
  1. A.Is useful primarily for selection and training of employees
  2. B.Uses LPC (Lease Preferred Co-worker) as an important componen
  3. C.Depicts the image of a model leader
  4. D.Emphasizes leadership development
36
The sum of the value of all final goods and services produced within a country and net factor income from abroad is termed as:
  1. A.GNP
  2. B.Nominal GDP
  3. C.NNP
  4. D.Real GDP
37
If a firm raises Rs 1,00,000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that equates the present value of cash inflows with the present value of cash outflows is referred to as:
  1. A.Explicit cost
  2. B.Implicit cost
  3. C.Specific cost
  4. D.Future cost
38
The major objective of economists to monopolies is:
  1. A.Lack of technological progress in such industries
  2. B.The dangerous impact on democratic government
  3. C.The inability in an industry where there is a single producer
  4. D.The tendency to restrict output and charge higher price
39
Statement I :Demand for a commodity refers to quantity of the commodity 
demanded at a certain price during any particular period of time.
Statement II Contraction of demand is the result of increase in the price of the goods concerned.
  1. A.Both I and II are correct.
  2. B.Both I and II are incorrect.
  3. C.I is correct and II is incorrect.
  4. D.II is correct and I is incorrect. 
40
Match the items given in List-I with most suitable options given in List-II.List-I                                              List-II                                     
A.Rate of discount which equates the   (i) Pay back periodnet present value to zero                     
B.Ratio of present value of cash in-flows   (ii) Internal Rate of Returnto the cash outflow.                                          
C. Percentage of annual net income earned  (iii) Profitability IndexOn average fund invested in a project.                                    
d.Investment divided by annual net cash  (iv) Average Rate of Return
Codes:
  1. A.(a      (b)       (c)        (d)
    (iii)       (ii)        (iv)       (i)
  2. B.(iii)       (ii)        (i)         (iv)
  3. C.(i)         (iii)       (iv)       (i)
  4. D.(ii)        (iii)       (i)         (iv)
41
The term Opportunity Cost refers to:
  1. A.Variable cost
  2. B.Short-run cost 
  3. C.The cost forgone in favour of production of another product
  4. D.Cost related to an optimum level of production
42
If two commodities are complementary, then a rise in the price of one commodity will induce: 
  1. A.A rise in the price of the other commodity
  2. B.An upward shift of demand curve
  3. C.No shift in demand for the other commodity
  4. D.A backward shift in demand for the other commodity
43
What is the characteristic of a purely competitive market?
  1. A.Large number of buyers and sellers
  2. B.A few sellers
  3. C.A few buyers
  4. D.Abnormal profit
44
Willingness to pay minus actual payment is called:
  1. A.Consumer’s surplus
  2. B.Producer’s surplus
  3. C.Utility cost
  4. D.Supplier’s surplus
45
Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I                                              List-II                                     
Cost Function                          1.Kinky Demand Curve
Supply Function                      2. Isoquants
Production Function                3. Engineering Method
Oligopoly                                 4.Factor Prices 
Codes: 
  1. A.(a)       (b)       (c)        (d)
    3          4          2          1
  2. B.4          3          1          2
  3. C. 3          2          1          4
  4. D.1          2          3          4 
46
People who take the risks necessary to organize, manage and receive the financial profits and non-monetary rewards are called:
  1. A.Suppliers
  2. B.Employees
  3. C.Competitors
  4. D.Entrepreneurs
47
Benefits provided for temporary and permanent disability disfigurement, medical expenses and medical rehabilitation is referred to as:
  1. A.Fringe benefits
  2. B.Financial incentives
  3. C.Workers’ compensation
  4. D.None of the above
48
Cardinal measure of utility is required in:
  1. A.Utility Theory
  2. B.Indifference Curve Analysis
  3. C.Revealed Preference
  4. D.Inferior Goods                             
49
A Right-ward shift in Demand Curve indicates: 
  1. A.A decrease in supply
  2. B.An increase in quantity supplied
  3. C.An increase in supply over the previous year
  4. D.Law of Variable Proportions
50
Which of the following is the condition for equilibrium for Monopolist?
  1. A.MR = MC
  2. B.MC = AR
  3. C.MR = MC = Price
  4. D.AC = AR
51
Management is best defined as?
  1. A.Art of computer programming
  2. B.Process of planning, organizing, leading and controlling resources
  3. C.Only financial management
  4. D.Production of goods only
52
The primary function of management is?
  1. A.Advertising
  2. B.Profit distribution
  3. C.Purchasing raw materials
  4. D.Planning
53
Which is not a function of management?
  1. A.Planning
  2. B.Organizing
  3. C.Controlling
  4. D.Gaming
54
The father of Scientific Management is?
  1. A.Henry Fayol
  2. B.F.W. Taylor
  3. C.Max Weber
  4. D.Elton Mayo
55
Administrative management theory was developed by?
  1. A.Henry Fayol
  2. B.F.W. Taylor
  3. C.Peter Drucker
  4. D.Abraham Maslow
56
The main focus of scientific management is?
  1. A.Employee welfare
  2. B.Marketing strategy
  3. C.Human relations
  4. D.Efficiency and productivity
57
Management is considered both?
  1. A.Theory and fiction
  2. B.Science and art
  3. C.Law and policy
  4. D.Marketing and finance
58
Which approach emphasizes human behavior in organizations?
  1. A.Classical approach
  2. B.Human relations approach
  3. C.System approach
  4. D.Quantitative approach
59
The system approach to management views organization as?
  1. A.Closed system
  2. B.Random system
  3. C.Open system
  4. D.Static system
60
Planning means?
  1. A.Selling products
  2. B.Hiring employees
  3. C.Selecting future course of action
  4. D.Controlling finance
61
Organizing involves?
  1. A.Grouping activities and assigning tasks
  2. B.Setting goals
  3. C.Motivation only
  4. D.Forecasting sales
62
Leading in management refers to?
  1. A.Directing and motivating employees
  2. B.Buying assets
  3. C.Financial auditing
  4. D.Production scheduling
63
Controlling is concerned with?
  1. A.Recruiting employees
  2. B.Comparing actual performance with standards
  3. C.Product design
  4. D.Market research only
64
Management is required in?
  1. A.Only business organizations
  2. B.Only government offices
  3. C.Only factories
  4. D.Every organization
65
Who proposed the 14 principles of management?
  1. A.Fayol
  2. B.Taylor
  3. C.Mayo
  4. D.Weber
66
Division of work leads to?
  1. A.Specialization
  2. B.Inefficiency
  3. C.Confusion
  4. D.Loss
67
Authority in management refers to?
  1. A.Right to give orders
  2. B.Responsibility to obey
  3. C.Punishment system
  4. D.Financial power only
68
Unity of command means?
  1. A.One employee, many bosses
  2. B.Multiple departments
  3. C.One employee should receive orders from one superior
  4. D.Group decision making only
69
Span of control refers to?
  1. A.Number of products
  2. B.Number of subordinates a manager can supervise
  3. C.Marketing area
  4. D.Production cost
70
Management is a continuous process because?
  1. A.It is fixed
  2. B.It is optional
  3. C.It is seasonal
  4. D.It never ends
71
Which is not a managerial skill?
  1. A.Technical skill
  2. B.Human skill
  3. C.Mechanical skill
  4. D.Conceptual skill
72
Conceptual skill is important for?
  1. A.Lower level managers
  2. B.Workers
  3. C.Top level managers
  4. D.Technicians
73
Technical skill is more important at?
  1. A.Top level
  2. B.Lower level
  3. C.Middle level
  4. D.Board level only
74
Human skills involve?
  1. A.Machine handling
  2. B.Dealing with people
  3. C.Financial planning
  4. D.Legal compliance
75
Management is goal oriented because?
  1. A.It ignores targets
  2. B.It focuses on achieving organizational objectives
  3. C.It avoids planning
  4. D.It only observes
76
The classical theory of management emphasizes?
  1. A.Informal relations
  2. B.Random decision making
  3. C.Emotional behavior
  4. D.Structure and efficiency
77
Bureaucratic management theory was given by?
  1. A.Max Weber
  2. B.Fayol
  3. C.Taylor
  4. D.Mayo
78
Human relations approach was developed after?
  1. A.Industrial Revolution
  2. B.World War I
  3. C.Hawthorne studies
  4. D.IT revolution
79
Motivation is mainly related to?
  1. A.Machines
  2. B.Raw materials
  3. C.Finance
  4. D.Human behavior
80
Decision making is a part of?
  1. A.Planning
  2. B.Organizing
  3. C.Staffing only
  4. D.All managerial functions
81
Coordination means?
  1. A.Integrating efforts of individuals
  2. B.Increasing cost
  3. C.Reducing production
  4. D.Hiring employees
82
Efficiency means?
  1. A.Doing right things
  2. B.Random output
  3. C.Ignoring goals
  4. D.Doing things right
83
Effectiveness means?
  1. A.Doing things right
  2. B.Achieving goals
  3. C.Reducing cost only
  4. D.Increasing waste
84
Management is dynamic because?
  1. A.It is fixed
  2. B.It changes with environment
  3. C.It is static
  4. D.It is mechanical
85
Which is external environment factor?
  1. A.Employees
  2. B.Internal policies
  3. C.Managers
  4. D.Customers
86
The role of a manager includes?
  1. A.Interpersonal role
  2. B.Informational role
  3. C.All of the above
  4. D.Decisional role
87
Mintzberg identified managerial roles as?
  1. A.3 categories
  2. B.5 categories
  3. C.14 principles
  4. D.10 roles
88
Planning helps in?
  1. A.Increasing confusion
  2. B.Reducing uncertainty
  3. C.Avoiding goals
  4. D.Ignoring strategy
89
Strategic management is related to?
  1. A.Long-term objectives
  2. B.Short-term decisions
  3. C.Daily operations
  4. D.HR records
90
Middle management is responsible for?
  1. A.Policy making
  2. B.Only production
  3. C.Implementing top-level plans
  4. D.External marketing only
91
Lower management is also called?
  1. A.Supervisory management
  2. B.Top management
  3. C.Strategic management
  4. D.Board management
92
Management is universal because?
  1. A.It is industry-specific
  2. B.It is country-specific
  3. C.It applies everywhere
  4. D.It is optional
93
The principle of unity of direction means?
  1. A.Many plans
  2. B.One activity, one plan
  3. C.No direction
  4. D.Random control
94
Scalar chain refers to?
  1. A.Financial chain
  2. B.Production line
  3. C.Line of authority
  4. D.Marketing chain
95
Discipline in management means?
  1. A.Freedom without rules
  2. B.Ignoring policies
  3. C.Obedience to rules
  4. D.No supervision
96
Equity in management refers to?
  1. A.Strict punishment
  2. B.Equal salary only
  3. C.Fair treatment
  4. D.Profit sharing
97
Initiative means?
  1. A.Following orders only
  2. B.Taking independent actions
  3. C.Ignoring rules
  4. D.Avoiding work
98
Stability of tenure means?
  1. A.Frequent job changes
  2. B.Contract termination
  3. C.Temporary work
  4. D.Job security
99
Management is essential because?
  1. A.It increases disorder
  2. B.It reduces coordination
  3. C.It avoids planning
  4. D.It helps achieve objectives efficiently
100
A manager’s responsibility includes?
  1. A.Only planning
  2. B.Only controlling
  3. C.Only hiring staff
  4. D.Achieving organizational goals