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Business Administration Paper – 2007

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1) A decision is a choice made between two or more alternatives. TruE.

2) Frank Gilbreth is known as father of Scientific Management. FalsE.

3) The responsibility for organizational planning rests with middle level management.
TruE.

4) The Hawthrone Experiments found that people were more concerned with preserving the work
group than with maximizing their pay. TruE.

5) Selling concept assumes that heavy selling and promotional efforts are needed to stimulate
more demand for the product. TruE.

6) Any paid form of non-personal presentation and promotion of ideas, goods or services by
identified sponsor is known as public relation. FalsE.

7) Market Segmentation is concerned with dividing the market demographically and
geographically. FalsE.

8) Joint Venturing is a form of entering foreign markets by joining with foreign companies to
produce or market a product or service. FalsE.

9) Another name of cash flow is accounting profit. FalsE.

10) The Financial Manager has full control over his firm‟s stock price. FalsE.

11) Systematic risk can be diversified away by adding more securities to a portfolio.
FalsE.

12) Discounting is the process of finding present value. TruE.

13) Extreme division of labour leads to result in:

A. Motivation
B. Boredom
C. Decreased work skill
D. Non-specialization
E. None of these

14) Fayol defines 14 principles of management. Which of the following is not one of those
principles?

A. Scalar chain
B. Espirit de corps
C. Centralization
D. Directedness of command
E. None of these

15) An example of pre-control established by management would be:

A. Rules
B. Policies
C. Budgets
D. All of these

16) Firm‟s credit policy usually includes establishing:

A. Credit standards
B. Credit terms
C. Collection policy
D. All of these

17) Liquidity ratios are computed by using information from:

A. Balance Sheet
B. Income statement
C. Cash flow Statement
D. Both A. and B.

18) Conservative working capital management strategies involve:

A. Low risk, Low return
B. Low risk, High return
C. High risk, High return
D. High risk, Low return

19) Product life cycle has the following stages:

A. Introduction and Maturity
B. Growth and Maturity
C. Introduction, Maturity and Decline
D. Introduction, Growth, Maturity and Decline

20) Which product is most likely to be purchased through routine decision-making?

A. Car
B. Desk
C. Soft Drink
D. Shirt
E. None of these