CA INTER EIS-SM 400 MCQs

(Q-1). Most businesses and Web sites that collect
personal information should have a ___________ that
discloses how the personal information provided by
the person will be used.
(a) Piracy Policy
(b) Identity Policy
(c) Privacy Policy
(d) Security Policy
(Q-2). ______________ is the use of video cameras to
monitor activities of individuals, such as employees or
individuals in public locations, for work-related or
crime-prevention purposes.
(a) Machine Learning
(b) Encryption Technique
(c) Logical Access Control
(d) Video surveillance
(Q-3). The data on the _________ USB flash drive
cannot be accessed until the user enters the
appropriate PIN or password.
(a) Encrypted
(b) Registered
(c) Controlled
(d) Indexed
(Q-4). Users who want their desktop computers to
remain powered up when the electricity goes off
should use ___________.
(a) Voltage controller
(b) Surge suppressor
(c) Voltage meter
(d) UPS
(Q-5). ____________ are small programs that take care
of software-specific problems, or bugs, such as security
holes.
(a) Backups
(b) Coding
(c) Beta release
(d) Patches
(Q-6). ____________ is a generic term that refers to
any type of malicious software.
(a) Spamware
(b) Spyware
(c) Malware
(d) Ransomware
(Q-7). Today many automobile and technology related
companies are developing the self-driving autonomous
vehicles, unmanned drones etc. According to you,
which of the following two technologies have made it
possible?
(a) Cloud Computing, Grid Computing
(b) Data Mining, Data Warehousing
(c) Artificial Intelligence, Machine Learning
(d) Internet of Things (IoT), Mobile Computing
(Q-8). ______________ focuses on the development of
computer programs that can change when exposed to
new data.
(a) Machine Learning
(b) Mobile Computing
(c) Internet of Things (IoT)
(d) Machine Computing
(Q-9). A huge oil spill from an oil well run by British
Petroleum, one of largest oil companies in world,
resulted in an assessed environmental damage of
about USD 20 Billion. The company expanded an
amount of USD 2 Billion on promotional ads informing
the world that it is an environmentally friendly
company. The promotional ads were done to prevent
company from which damage?
(a) Strategic
(b) Operational
(c) Financial
(d) Reputational
(Q-10). A store supplies goods only on receipt of
advance payment. Once payment is received, an
intimation to customer is sent for receipt of payment.
This is a good example of ____________.
(a) Supply Chain Management
(b) Customer Relationship Management
(c) Order to Cash Cycle
(d) Enterprise Management System
(Q-11). An amount of ₹100 is to be written off as same
is not recovered from customer since last three years.
Which voucher is best suited for this?
(a) Journal
(b) Sales
(c) Purchases
(d) Contra

(Q-12). Enterprise Resource Planning (ERP) systems
shall have the following controls, except __________.
(a) General Controls
(b) Application Controls
(c) Management Controls
(d) Business Continuity Controls
(Q-13). In flowchart, the decision symbol is denoted by
____________.
(a) Diamond
(b) Circle
(c) Rectangle Box
(d) Square
(Q-14). While making online payments, use of virtual
keyboard saves a person from the risk of _________.
(a) Web Defacement
(b) Hacking
(c) Credit card fraud
(d) Phishing
(Q-15). Material Management module of ERP system
handles material handling. Which module of ERP
system, shall deal with Inventory Valuation as per AS-2
on "Inventory Valuation"?
(a) Financial
(b) Controlling
(c) Production
(d) Human Resources
(Q-16). A report indicating increasing cash sales over a
period of time can be best classified as ______.
(a) Management Information Systems (MIS)
(b) Receipt and payment
(c) Cash and fund flow
(d) Balance Sheet and Profit/Loss Account
(Q-17). Which Database Model has inverted tree like
structure?
(a) Hierarchical Database Model
(b) Networth Database Model
(c) Relationship Database Model
(d) Object oriented Database Model
(Q-18). The capability of a computer network to
recover from a conflict for some common resource is
called as ___________.
(a) Routing
(b) Bandwidth
(c) Resilience
(d) Contention
(Q-19). Saving bank interest of ₹2,345.28 is credited as
₹2,345.20 to customer account, the balance ₹0.08
being credited to a fraudster account. This technique is
best called as ______________.
(a) Salami
(b) Spoofing
(c) Bomb
(d) Christmas Card
(Q-20). Concurrent Auditor of a bank felt that some
changes have been made to advance master data. He
uses an audit technique to identify such suspicious
transactions. This technique shall be defined as:
(a) Continuous and Intermittent Simulation (CIS)
(b) System Control Audit Review File (SCARF)
(c) Audit Hook
(d) Integrated Test Facility (ITF)
(Q-21). Present day E-commerce revolution, WWW
and emerging technologies have one key common
factor. Tick it.
(a) Hard work
(b) Government
(c) User
(d) Internet

(Q-22). Which is not a common services model
Network as a Service (NaaS)?
(a) Virtual Private Network (VPN)
(b) Bandwidth on Demand (BOD)
(c) Mobile Virtual Network (MVN)
(d) VoIP
(Q-23). For an organisation that is subject to changing
business needs, which network architecture would be
preferred?
(a) Two Tier
(b) Three Tier
(c) Any of Two
(d) None of the Two
(Q-24). Which of the following is a modern method of
Digital payment?
(a) Mobile Wallet
(b) E-Wallet
(c) Net Banking
(d) Cards
(Q-25). Which technology solution is provided by the
banks to a company that is paying dividend to its
shareholders?
(a) ECS Credit
(b) ECS Debit
(c) MICR
(d) CBS
(Q-26). Which server offers a computer network
services to allow clients to make indirect network
connections to another network connection?
(a) Web Server
(b) Database Server
(c) Application Server
(d) Proxy server
(Q-27). While defining Risk, the person is not likely to
refer to which terms in its definition.
(a) Vulnerability
(b) Threats
(c) Impact
(d) Asset
(Q-28). In case of disaster, an entity not having a proper
back-up of data is faced with huge business risk. The
same risk is dealt in which accounting standard issued
by ICAI.
(a) AS - 2
(b) AS - 1
(c) AS - 9
(d) AS - 28
(Q-29). Under which IT Offence, punishment is given
for statement given below: "Whoever fraudulently or
dishonestly make use of electronic signature, password
or any other unique identification feature of any other
person."
(a) Section 66- B
(b) Section 66- C
(c) Section 66- D
(d) Section 66- E
(Q-30). Inadequate Security leads to __________.
(a) Vulnerability
(b) Threats
(c) Risk
(d) Impact
(Q-31). Where in a CBS architecture does ATM / POS
switch reside?
(a) Client
(b) Channel Server
(c) Application Server
(d) Host Database Server
(Q-32). You have recently taken on a Travel agency as
your client. You are familiarizing yourself with the
agency & its operations. You are told that they use
network of computers which are designed as per Bus
topology. You realize then that the agency's computer
system involves ____________.
(a) A single hub connecting all nodes
(b) Connection of computers in a way where two
immediate nodes connected with each other
(c) Connection of all the computers on a single
backbone cable
(d) Connection of every node to every other node
(Q-33). An enterprise is configuring its accounting and
financial system software for fixing its monthly budgets
for expenses. A heated argument is going on among
the functional executives regarding the issue about
when to fix the budget for any head. Help management
in deciding on when to create budgets.
(a) After 6 months from today based on the
average expenses

(b) Today itself based on past years’ experience
and future projected increase
(c) Cannot be fixed today as future is uncertain
(d) Today itself based on future projections for
expenses of the organisation
(Q-34). A very renowned model is features in an
advertisement of a Washing Machine of Everyday
Electronics Pvt. Ltd. where she emphasizes that this
Washing Machine can be operated and controlled from
anywhere through an app which the user can
download and install from the play store in his mobile
phone. This is perfect example of _____________
technology.
(a) Cloud Computing
(b) Internet of Things (IoT)
(c) Artificial Intelligence
(d) Grid Computing
(Q-35). Any message that is being converted into
unintelligible form is considered to be in the _______.
(a) Ciphertext form
(b) Plaintext form
(c) Understandable form
(d) Coded form
(Q-36). Considering the Business Process Automation
concept, __________ ensures that data is only
available to persons who have right to see the same
while _____________ ensures that no un-authorized
amendments can be made in the data.
(a) Confidentiality, Availability
(b) Confidentiality, Integrity
(c) Integrity, Confidentiality
(d) Integrity, Availability
(Q-37). The accuracy of source document like
___________ can be improved if it is __________ &
______________?
(a) Sales invoice, Purchase order, Serially numbered
(b) Purchase order, serially numbered, Properly
designed
(c) Purchase order, Properly designed, Sales invoice
(d) Sales invoice, properly designed, Purchase order
(Q-38). An aspiring CA in his interview was asked to
provide correct sequence of the following sub-
processes that represent Accounting Process Flow. The
sub processes are - (1) Source Document, (2) Financial
Statement, (3) Adjustments (4) Ledger, (5) Adjusted
Trial Balance, (6) Closing Entries, (7) Journal and (8)
Trial Balance. What should be the answer?
(a) (1)-(2)-(3)-(4)-(5)-(6)-(7)-(8)
(b) (4)-(3)-(7)-(6)-(1)-(2)-(8)-(5)
(c) (1)-(7)-(4)-(8)-(3)-(5)-(6)-(2)
(d) (8)-(5)-(3)-(1)-(2)-(4)-(6)-(7)
(Q-39). Which of the following statements shows the
contrast between data & information in consideration
of financial and accounting system?
(a) Data is the output of a financial and accounting
system
(b) Information is the primary output of a financial
and accounting system
(c) Financial and accounting system mainly uses
semi-processed or processed data as input
(d) Data and information stand at equal footing in
financial and accounting system
(Q-40). Pick the ODD one out.
(a) PayU Money
(b) Razorpay
(c) Instamojo
(d) Neverpay
(Q-41). Identify which of the following is not a source
of concern with regards to the use of public cloud
computing service.
(a) Confidentiality
(b) Privacy
(c) Efficiency
(d) Availability
(Q-42). Name, Name of Parents, Address, Blood Group,
Gender, Date of Birth, etc. is the personal data of the
user and not expected to change very frequently.
_____________ is generally not typed by the user and
it is selected from the available list. On the other hand,
____________ is typed by the user and not selected
from available list.
(a) Configuration Data, Master Data
(b) Configuration Data, Transaction Data
(c) Master Data, Transaction Data
(d) Transaction Data, Master Data
(Q-43). A materials requisition order document is to be
prepared for purchase department from inventory file
and the materials file, both of which are stored on a
hard drive of the computer system. Which of the
following diagrams represents this activity?

(Q-44). Mr. Ankur Tyagi is a consistent topper in his
school as well as college. After completing his
graduation from a science stream college, he got
immediate placement with one of the India’s largest IT
company on a very attractive salary and other benefits.
The main job responsibility of Mr. Ankur is to develop
the logical and physical designs of data models for the
applications used by the company. Mr. Ankur must be
a _____________ in the company.
(a) Database Administrator
(b) Database Analyst
(c) Database Architect
(d) Software Tester
(Q-45). Bills of Materials (BoM) is an important feature
for any Enterprise Resource Planning or ERP software.
The sub-system where a BoM is located is _________.
(a) Manufacturing
(b) Financials
(c) Projects
(d) Human Resource Management
(Q-46). Cryptography technology deals with programs
for transforming data into cipher text that are
meaningless to anyone, who does not possess the
authentication to access the respective system
resource or file. Cryptography technology plays a very
important role in network security. A cryptographic
technique encrypts data into cryptograms. A
Cryptographic algorithm _____________.
(a) Must be difficult to use but easy to crack
(b) Must be easy both to use and crack
(c) Must be easy to use but difficult to crack
(d) Must be difficult to use as well as to crack
(Q-47). In today’s competitive world, employees have
become one of the most important strategic assets of
the organisation. Happy employees, Lower IT budget,
Increased employee efficiency etc. could be the
advantage attributed to ____________________.
(a) Artificial Intelligence (AI)
(c) Internet of Things (IoT)
(d) Bring Your Own Device (BYOD)
(Q-48). SCARF stands for _____________ and VoIP
stands for _______________.
(a) System Control Audit Report File, Voice Over
Internet Programme
(b) System Control Audit Review File, Voice Over
Internet Programme
(c) System Control Audit Review File, Voice Over
Internet Protocol
(d) System Control Audit Review Format, Voice
Over Internet Protocol
(Q-49). The main job responsibility of Mr. Anil Sharma
is to design of security controls and systems such as
authentication, audit logging, intrusion detection
systems, intrusion prevention systems, and firewalls.
Mr. Anil Sharma must be a _____________ in the
company.
(a) Security Architect
(b) Security Engineer
(c) Database Architect
(d) Controls Analyst
(Q-50). To enhance automation, a company defines re-
order levels for regular consumption of raw material
items in their ERP system. Once an item hits Re-order
Level, the system creates a purchase requisition for
Economic Order Quantity (EOQ) / Re-Order Quantity
(ROQ) and emails the same to selected vendors asking
them to send quotations. This method of doing
business can be best defined as ______________.

(a) Business Process Automation
(b) Business Process Integration
(c) Business Process Upgrade
(d) Business Process Module
(Q-51). There are various types of memories used in
the computer system some of which are permanent in
nature while some of them are temporary or
fluctuating. There is also a memory known as cache
memory which is very expensive but found in most of
the modern computing devices like desktop, laptop
computers etc. Secondary memory ____________.
(a) Is a large, slow memory which is no longer used
in computers
(b) Random Access Memory (RAM) is an example
of Secondary Storage device
(c) Is a greater capacity memory which is volatile
in nature
(d) Is a greater capacity memory which is non-
volatile in nature
(Q-52). Indian fertilizer industry depends on subsidies.
The Government has evolved a complicated
mechanism for deciding the subsidy level for each type
of fertilizer depending upon various factors like price of
the raw material, exchange rate, conversion costs, etc.
The industry association are considering some kind of
cloud computing facility but as the cost involved is very
high, they have finally decided to establish a cloud
where each participant can share the computing
resources. Such a cloud facility would be most likely to
be a ___________ and it would be safer than
_____________.
(a) Public Cloud, Private Cloud
(b) Private Cloud, Public Cloud
(c) Community Cloud, Public Cloud
(d) Hybrid Cloud, Public Cloud
(Q-53). As per _________, if any person, dishonestly,
or fraudulently, does any act referred to in ________,
he shall be punishable with imprisonment for a term
which may extend to _____________ or with fine
which may extend to ₹5 Lakh or with both.
(a) Section 43, Section 66, 2 Years
(b) Section 66, Section 18, 5 Years
(c) Section 66, Section 43, 3 Years
(d) Section 65, Section 43, 5 Years
(Q-54). Under __________ & _____________ of
Prevention of Money Laundering Act, every banking
company, financial institution and intermediary is
required to maintain a record of transactions as may be
prescribed by rules and furnish information to the
Director within such time as may be prescribed.
(a) Section 13, Rule 4
(b) Section 12, Rule 3
(c) Section 12, Rule 4
(d) Section 12, Section 18
(Q-55). In computer network, a vulnerability is best
defined as _______________.
(a) Risk to system
(b) Weakness of controls
(c) Value of risk
(d) Possible Threat
(Q-56). You have signed on for an audit of an Internet
service provider (ISP) which advertises itself as the
most reliable service provider. What kind of network
topology do you think the ISP have?
(a) Ring topology
(b) Star topology
(c) Mesh topology
(d) Bus topology
(Q-57). A new system has been developed that ensures
that as soon as inventory level goes below re-order
level in Inventory System, a purchase requisition is
generated from Purchase System. Which testing
method shall be best suited to check whether the two
systems are working properly?
(a) Unit Testing
(b) Program Testing
(c) Integration Testing
(d) Whole-of-Program Testing
(Q-58). Which of the following given combination is not
a violation of maker - Checker Rule for the Internal
Control in the organisation?
(a) Cashier is also a Ledger Writer
(b) Auditor acting as Implementation Consultant
(c) System Developer acting as a System Quality
Control Personnel
(d) Auditor Suggesting Controls
(Q-59). Pick the odd one out.
(a) Amazon Alexa
(b) Boss Speakers
(c) Apple Siri

(d) Google Talk
(Q-60). Which objective of the Business Process
Automation (BPA) is achieved using Passwords in
Information Systems?
(a) Confidentiality
(b) Integrity
(c) Timeliness
(d) Availability
(Q-61). ____________ of ____________ defines
‘money laundering’ as: “whosoever directly or
indirectly attempts to indulge or knowingly assists or
knowingly is a party or is actually involved in any
process or activity connected with the proceeds of
crime and projecting it as untainted property shall be
guilty of the offence of money-laundering”.
(a) Section 2, FEMA Act, 1999
(b) Section 3, PML Act, 2002
(c) Section 12, RBI Act, 1934
(d) Section 12, PML Act, 2002
(Q-62). A Bank has updated its existing Corer Banking
Systems (CBS) system to a new version. It is found that
the new system is not automatically sending monthly
Bank Statements to its customers. The same feature
was available in the previous system. This error is result
of mistake in which step?
(a) Design
(b) Planning
(c) Implementation
(d) Maintenance
(Q-63). Database is a collection of Data. Various
database models are used. The database models
having using a primary key is ___________.
(a) OODBMS
(b) RDBMS
(c) Network Database Model
(d) Hierarchical Database Model
(Q-64). Driverless cars are the future of personal
transportation. Many companies have been testing
these cars on roads across the world. Few fatalities
have been caused by these driverless cars. The culprits
are not yet booked. This reflects which risk of AI as a
technology being used in driverless cars.
(a) The police investigations are poor
(b) AI is not human
(c) Law is not able to meet the requirements of
technology
(d) No one is responsible
(Q-65). Pick the ODD one out.
(a) Accounting Information System
(b) Input
(c) Output
(d) Process
(Q-66). An element that has contributed to e-
commerce success is payment gateways. One that
does not fall in the definition is _________.
(a) SBI Buddy
(b) HDFC Zapp
(c) Paytm
(d) Cash On Delivery
(Q-67). Entity-Relationship (ER) Diagram, Data Flow
Diagram, Flowcharts all use graphical symbols. All
symbols given are used in all three except one.
(Q-68). Under the Asynchronous attacks in a
telecommunication network system, __________
involves spying on information being transmitted over
communication network.
(a) Wire-tapping
(b) Data Leakage
(c) Subversive Attacks
(d) Piggybacking
(Q-69). A Bank ABC gave an undertaking to the third
party, supplier of goods to pay amount of ₹2 crore to
him on behalf of a businessman Mr. X provided the
terms and conditions of the undertaking are complied
with. This service of banks is known ___________.
(a) Issuing letter of Guarantee
(b) Issuing letter of Comfort
(c) Issuing letter of Credit
(d) Issuing letter of Understanding
(Q-70). Which among the following is not a feature of
secondary memory?
(a) Non-volatile in nature
(b) Slowest memory compared to others

(c) Has the largest storage capacity
(d) Costs more compared to others
(Q-71). Which of the following memory is usually
measured in Tera Bytes?
(a) Random Access Memory
(b) Cache Memory
(c) Register
(d) Secondary Memory
(Q-72). Which among the following is not a type of
Read Only Memory?
(a) PROM
(b) EPROM
(c) EEPROM
(d) EROM
(Q-73). ____________ provides capabilities required
to support enterprise software systems.
(a) Information Worker Software
(b) Enterprise Infrastructure Software
(c) Content Access Software
(d) Media Development Software
(Q-74). ________ is the application software where
multiple applications are bundled together and sold.
(a) Application Suits
(c) Content Access Software
(Q-75). Enterprise Resource Planning software is most
likely to be classified into:
(c) Enterprise Software
(Q-76). Video editing software is most likely to be
classified into:
(c) Enterprise Software
(Q-77). A memory of the size of 4 Mega Byte is most
likely to be a _____________.
(a) Random Access Memory
(b) Cache Memory
(c) Register
(d) Secondary Memory
(Q-78). Which of the following is in-correct?
(a) Hardware is tangible portion of the computer
systems
(b) Input devices are devices through which we
interact with the systems
(c) CPU consists of two functional units
(d) Registers are high speed memory within CPU
(Q-79). Which of following statement is incorrect?
(a) Storage Registers temporarily stores data
being sent to or coming from system memory
(b) Internal memory includes Processer Registers
and Cache Memory
(c) RAM is volatile in nature where Information is
lost as soon as power is turned off
(d) Modifying the contents of RAM is difficult
(Q-80). Which of the following is incorrect?
(a) Each computer system must have a system
software to function
(b) Application software are optional & user might
need them as per his requirements
(c) ROM is volatile in nature where Information is
lost as soon as power is turned off
(d) Modifying the contents of RAM is not difficult
(Q-81). ________ can function without _________.
(a) Application software, System software
(b) System software, Application software
(c) Operating system, System software
(d) Application software, operating system
(Q-82). __________ needs _________ to operate.
(a) Application software, System software
(b) System software, Application software
(c) Operating system, Application software
(d) System software, operating system
(Q-83). EPROM stands for ____________________.
(a) Erasable Programmable Read-Only Memory
(b) Electronically Programed Read-Only Memory
(c) Erasable Programmed Read-Only Memory
(d) Easily Programmable Read-Only Memory
(Q-84). _______ is independent of ____________.
(a) Software, Hardware
(b) Hardware, Software
(c) Hardware, Application software

(d) Application software, Hardware
(Q-85). Which of following statement is in-correct?
(a) Primary memory devices are faster than
secondary memory devices
(b) RAM is an example of Volatile memory
(c) RAM can be static or dynamic
(d) ROM is an example of volatile memory
(Q-86). Which of the following statement is in-correct?
(a) Public cloud is a shared cloud computing
service which can be accessed by any one on
the pay per usages basis
(b) Amazon Web Services is a Public Cloud
(c) Cache memory is a type of primary memory
(d) Private cloud is established and used by the
company itself
(a) Public cloud services are very scalable
(b) Private cloud services are used on pay-per-
usages basis
(c) Community cloud option is cheaper and secure
(d) Private cloud is used by the company itself
(a) Hierarchical database model implements one
to one & one to many relationship
(b) Network database Model permits many to
many relationship also
(c) Private cloud is very secure
(d) Public cloud don’t have any security risks
(Q-89). Ignorance of end users can cause _________ in
the system.
(a) Threat
(b) Vulnerability
(c) Difficulties
(d) Technical glitches
(Q-90). What is a Hub?
(a) Hardware device with multiport connectivity
(b) Have intelligence in interpreting data received
(c) Expensive device for transportation of data
between devices
(d) Connects LANs and amplifies data
(Q-91). What is a Switch?
(a) It does not offer intelligence in interpreting
data received by it
(b) It increases congestion & slows up the network
(c) It is a special type of hub with additional layer
of intelligence which reads the MAC address
(d) It is a alternative of network interface card
(Q-92). Mathematical function used for encryption &
decryption is ______________.
(a) Binomial analysis
(b) Cryptographic Algorithm
(c) Transcription Algorithm
(d) Exponential function
(Q-93). A school system send a SMS to parent's of
student if attendance has not been marked on school's
bio‐metric attendance system. This is a good example
of ___________.
(a) Enterprise Information System
(b) Biometric System
(c) Business Process Automation
(d) Business Process
(Q-94). All but one can be used as an input as well as
an output device.
(a) Keyboard
(b) Printer
(c) ATM Monitor
(d) Scanner
(Q-95). A hacker Mr. C duplicates the login procedure
of an employee of an organization ABC Ltd.; captures
the user's password and attempts for the system's
crash. Name the type of the attack.
(a) Subversive Threat
(b) Wire Tapping
(c) Sabotage
(d) Spoofing
(Q-96). Mr. A is an employee of XYZ company. He sends
an email through his laptop to the client and pretends
to be the Managing Director of the company. He
informs the client to pay future payments in the
employee Mr. A's account. Under which section will A
be punished?
(a) Section 66A
(b) Section 66B
(c) Section 66C
(d) Section 66D
(Q-97). Among the emerging technologies, the ones
which are environmentally sustainable are the ones

which will survive the test of time. Such technologies
are being designated by a key term called _________.
(a) Cloud Computing
(b) Green Computing
(c) Mobile Computing
(d) Hybrid Computing
(Q-98). In an accounting system, an accountant has
rights to create as well as modify vouchers. This feature
raises the risk assessment by auditor to higher level. As
an auditor, you need to define which principle has not
been followed?
(a) Confidentiality
(b) Segregation of Duty (SoD)
(c) Availability
(d) Integrity
(Q-99). Auditor, to check whether the control in an
accounting application restricting payment in excess of
₹10,000 in cash is working or not, creates a dummy
voucher. This act of auditor would classify as which
concurrent audit technique?
(a) Snapshot
(b) Integrated Test Facility (ITF)
(c) SCARF
(d) Continuous and Intermittent Simulation (CIS)
(Q-100). An MNC based in Japan acquired an Indian
company. The day acquisition was implemented the
MNC replaces all systems in the Indian Company with
a brand B systems whereas Indian Company was using
brand A systems. Above scenarios show that replacing
systems can be a huge cost. In today's competitive
environment it may not be possible for all companies
to bear such expenses, so they allow employees to use
their own systems rather than changing the same with
a specific brand. This way of working is called as
________________.
(a) Cloud Computing
(c) Bring Your Own Device (BYOD)
(d) Grid Computing
(Q-101). IT Act 2000 was amended in 2008 to introduce
Section 43 A which pertains to ______.
(a) casting responsibility on government
(b) casting responsibility on body corporates
(c) casting responsibility to protect sensitive
personal information
(d) casting responsibility on body corporates to
protect sensitive personal information
(Q-102). Which of the following cloud provides a
highest level of security and privacy to the user?
(a) Private Cloud
(b) Public Cloud
(c) Hybrid Cloud
(d) Community Cloud
(Q-103). Which of the following statement is not true
for Computer based Information Systems?
(a) System work for predetermined objectives &
system is designed & developed accordingly
(b) System has several interrelated and
interdependent subsystems or components
(c) The goal of individual subsystem is of highest
priority than the goal of the entire system
(d) The way a subsystem works with another
subsystem is called interaction
(Q-104). Business Continuity Planning by nature is a
type of ______________.
(a) Compensatory Control
(b) Detective Control
(c) Corrective Control
(d) Preventive Control
(Q-105). ABC Ltd. is Digital Signature issuing company
based in Dehradun. It has outsourced its Core
Infrastructure of Digital Signature Infrastructure
repository to PQR Ltd. which provides IT Infrastructure
Hosting services to its customers. PQR Ltd. has
provided separate space and servers within its office
premises for ABC's application, database and network
hosting and no other company is sharing that
infrastructure. Which type of cloud service is used by
ABC Ltd.?
(a) On-Premise Private Cloud
(b) Outsourced Private Cloud
(c) Public Cloud
(d) Hybrid Cloud
(Q-106). _________ is the act of following an
authorized person through a secured door or
electronically attaching to an authorized
telecommunication link that intercepts and alters
transmissions.
(a) Piggybacking
(b) Denial of Service

(c) Data Leakage
(d) Wire Tapping
(Q-107). Is the statement “Public cloud are highly
scalable and affordable but less secure” true?
(a) No, less scalable that private cloud
(b) No, more secure than private cloud
(c) Yes, but require stringent SLAs
(d) No, there is very limited number of users of the
entity who can participate in public cloud
(Q-108). Which of the following is not an example of
Detective Controls?
(a) Hash Totals
(b) Duplicate checking of calculations
(c) Cash counts and bank reconciliation
(d) Backup procedure
(Q-109). Under Application Controls, ________ are
responsible for computing, sorting, classifying and
summarizing the data.
(a) Boundary Controls
(b) Communication Controls
(c) Output Controls
(d) Processing Controls
(Q-110). Suggest the control required to address the
concerns raised with the following risk ‐ "As everybody
is connected to a single system and central database,
in case of failure of system, the whole business may
come to stand still & may get affected."
(a) This can be controlled and monitored by
having proper and updated backup of data as
well as alternate hardware arrangements.
(b) This can be controlled by removing redundant
data, using techniques like data warehousing
and updating hardware on a continuous basis.
(c) Access rights need to be defined carefully and
to be given on "Need to know" and "Need to
do" basis only.
(d) This can be controlled and minimized with the
help of proper staff training system, having
help manuals, having backup plans for staff
turnover etc.
(Q-111). Suggest the control required to address the
concerns raised with the following risk ‐ "As entire data
is maintained centrally, gradually the data size
becomes more and more and it may reduce the speed
of entire operation."
(a) This can be controlled and monitored by
having proper and updated backup of data as
well as alternate hardware arrangements.
(b) This can be controlled by removing redundant
data, using techniques like data warehousing
and updating hardware on a continuous basis.
(c) Access rights need to be defined carefully and
to be given on "Need to know" and "Need to
do" basis only.
(d) This can be controlled and minimized with the
help of proper staff training system, having
help manuals, having backup plans for staff
turnover etc.
(Q-112). Today more and more companies are using
BCP. A Business Continuity Plan (BCP) is an example of
______________ control.
(a) Managerial
(b) Application
(c) Preventive
(d) None of the above
(Q-113). In telecommunication network, ________ is
the act of following an authorized person through a
secured door or electronically attaching to an
authorized telecommunication link that intercepts and
alters transmissions. This involves intercepting
communication between the operating system and the
user & modifying them or substituting new messages.
(a) Wire tapping
(b) Piggybacking
(c) Subversive attacks
(d) Data Leakage
(Q-114). As a telecommunication network operator,
which internetworking device will you suggest to your
client for regenerating the signal over the same
network before the signal becomes too weak or
corrupted?
(a) Bridge
(b) Router
(c) Hub
(d) Repeater
(Q-115). One amongst the list is a not a threat.
(a) Virus
(b) Trojan
(c) Worm
(d) Firewall

(Q-116). In a three‐tier architecture, which layer is
responsible for performing certain validations like, if
user is authorised to request the transaction or not?
(a) Application Layer
(b) Presentation Layer
(c) Database Layer
(d) Session Layer
(Q-117). Mr. X entered into a contract with Mr. Y for
purchase of house hold products via online stores on
Cash on Delivery (CoD). As per the terms, it was to be
delivered within 3 days of the order placed. Due to
delivery on the fourth day, Mr. X denied for the
performance of the contract. This can be said to be a
____________.
(a) Risk associated with controls
(b) Risk associated with security
(c) Risk associated with transaction
(d) Risk associated with e-Commerce
(Q-118). Under Data Resource Management Controls,
__________ controls are designed to prevent
unauthorized individual from viewing, retrieving,
computing or destroying the entity's data in any
organization.
(a) Access
(b) Backup
(c) Concurrency
(d) Quality
(Q-119). Name the Module in ERP - Business Process
Modules that includes the software designed
specifically for production planning & management.
(a) Production Planning
(b) Material Management
(c) Sales and Distribution Module
(d) Supply Chain Module
(Q-120). Which of the following does not form part of
Human Resource (HR) Management?
(a) Training and Development
(b) Career Development
(c) Leadership Management
(d) Invoicing
(Q-121). In his work place, an employee Mr. X wants to
maintain a record of physical receipts of goods
purchased from a vendor Mr. G in his Accounting
System. Which Voucher type shall he use?
(a) Delivery Note
(b) Receipt Note
(c) Sales
(d) Purchase
(Q-122). In a 3-Tier Architecture, name the layer that is
responsible of receiving the inputs from the users and
perform certain validations.
(a) Application Layer
(b) Database Layer
(c) Operating System Layer
(d) Network Layer
(Q-123). Which feature of Operating Systems helps in
allocating resources to make optimum utilization of
resources?
(a) User Interface
(b) Memory Management
(c) File Management
(d) Task Management
(Q-124). Installation of the Firewalls by a company in
the telecommunication network is a classic example of
_______________ controls under Information
Systems' Controls.
(a) Managerial
(b) Application
(c) Preventive
(d) Corrective
(Q-125). Provide the correct sequence of phases of
Program Development Life Cycle. (1) Operations and
Maintenance, (2) Coding, (3) Control, (4) Design, (5)
Testing and (6) Planning
(a) (4)-(6)-(2)-(3)-(1)-(5)
(b) (6)-(3)-(4)-(2)-(5)-(1)
(c) (1)-(6)-(3)-(5)-(4)-(2)
(d) (3)-(5)-(2)-(1)-(6)-(4)
(Q-126). In ABC, financial institution, the authorised
officials identified existence of numerous accounts
numbers of inactive accounts in their usage data of
active customers. Complaint was reported to their IT
team. Which type of controls can be exercised by the
IT Team in the given case?
(a) Corrective Controls
(b) Preventive Controls
(c) Detective Controls
(d) Compensatory Controls

(Q-127). An organisation ABC used to make payment of
the salaries to its employees by transferring of funds to
their saving accounts. This mode of transfer made by
an ABC is ___________.
(a) Remittances
(b) ECS Credit
(c) ECS Debit
(d) Deposits
(Q-128). Mr. Mysterious used to chat on Internet under
the name of Ms. Ritu Kumari. He also gave her landline
telephone number for further chatting. Ms. Ritu was a
senior executive of the credit rating information
sources of India Ltd. Mr. Mysterious was employed as
financial analyst but had been forced to terminate the
job earlier. Ritu started receiving mischievous calls. In
the light of the given facts, state the liability of Mr.
Mysterious within the purview of the Information
Technology Act, 2000.
(a) Punishable for offence of web defacement
(b) Punishable for phishing and email scam
(c) Theft of confidential information
(d) Harassment via fake public profile on social
networking site
(Q-129). X through his computer steals the data saved
in Y’s computer of valuable customers of ABC Ltd. X
sold this data to the competitor of ABC Ltd. This act of
X is _________.
(a) Source code theft
(b) Theft of confidential information
(c) Credit Card Fraud
(d) Web Defacement
(Q-130). Which of the following is not a rule to be
followed while Voucher Numbering?
(a) Voucher number must be unique
(b) A voucher number may either have prefix or
suffix or both
(c) Voucher numbers may be numbered randomly
as per the discretion of the company
(d) Every voucher type shall have a separate
numbering series
for Internal Control System?
(a) Facilitates the effectiveness and efficiency of
operations
(b) Helps safeguarding the assets of the entity
(c) Assists compliance with applicable laws and
regulations
(d) Ensure reliability of only Internal Financial
Reporting & not External Financial Reporting
(Q-132). Which of the following is not a technique of
Cryptography?
(a) Transposition
(b) Substitution
(c) Product Cipher
(d) Transcription
(Q-133). In an ERP System, which of the following is not
true about integration of Modules with Financial and
Accounting System?
(a) Master data across all modules must be same
(b) Common transaction data must be shared with
other modules wherever required
(c) Common Voucher types to be used for each
module for easy integration of department
recording it
(d) Separate Voucher types to be used for each
module for easy identification of department
recording it
(Q-134). Tick the incorrect statement.
(a) In Relational Database model, the named
columns of the relation are called Domain
(b) In Relational Database model, a Relation is a
table with rows and columns
(c) In Relational Database model, the named
columns of the relation are called Attributes
(d) In Relational Database model, the Domain is
the set of the values an attribute can take
(Q-135). In the computer network, the packet
switching refers to:
(a) all packets pass through a common path.
(b) all packets arrive at the destination out of
order.
(c) the receiving device restores the packets in the
same order it receives them.
(d) all packets arrive at the destination in order.
(Q-136). Which of the following is not a type of Data
Resource Management Controls under Managerial
Controls?
(a) Existence Controls
(b) Concurrency Controls
(c) Production Controls

(d) Quality Controls
(Q-137). Which of the following does not fit into best
practices while dealing with passwords in order to
avoid system failures?
(a) Periodic change of passwords
(b) Unlimited number of entry attempts
(c) Minimum password length
(d) Hashing of passwords
(Q-138). Under emerging BYOD (Bring your Own
Device) Threats, _______________ risk refers to the
data lost from stolen or lost devices.
(a) Network
(b) Application
(c) Device
(d) Implementation
(Q-139). Which activity is not incorporated during audit
of Environmental Controls?
(a) Backup Power
(b) Water Detection
(c) Fire detection and Suppression
(d) Guards and Dogs
(Q-140). As an Information Systems Auditor, mention
the activity that does not form part of audit of Logical
Access Controls?
(a) Access Violations
(b) Intrusion Detection and Prevention
(c) Backup Power
(d) Shared Accounts
(Q-141). During an audit of financial transactions in an
enterprise XYZ, it was found that simple errors of data
entry were occurring when two digits that were either
individual or part of larger sequence of numbers were
reversed when posting a transaction. Which type of
error is this?
(a) Addition Error
(b) Truncation Error
(c) Substitution Error
(d) Transposition Error
(Q-142). While Auditing the Input Controls in an
enterprise ABC, which of the following controls will not
fall under the purview of Input Controls?
(a) Source Document Controls
(b) Data Coding Controls
(c) Boundary Controls
(d) Batch Controls
(Q-143). Mr. A visited an e-commerce website and
placed an order for a pair of shoes. He made his
payment of ₹2,000 through credit card and received a
confirmation mail on his registered email-id. With
respect to e-commerce architecture, which layer of the
software is he working on?
(a) Database Layer
(b) Application Layer
(c) Presentation Layer
(d) Client Layer
(Q-144). Identify the incorrect statement.
(a) A Proxy Server is a computer that offers a
computer network service to allow clients to
make indirect network connections to other
network services
(b) Information Security implies Confidentiality,
Integrity and Availability of information
(c) Any Application Software has primarily four
gateways through which enterprise can
control functioning, access and use various
menus & function of software. Configuration,
Masters, Transactions, Reports
(d) Section 66-C of Information Technology Act,
2000 provides for punishment for cheating by
personation by using computer resource
(Q-145). An amount of ₹650 is to be written off as same
is not recovered from customer since last so many
years. Which voucher is best suited for the transaction?
(a) Journal
(b) Sales
(c) Purchase
(d) Contra
(Q-146). When the risk for procure to pay (P2P) process
flow is the inaccurate changes to the supplier master
file, what should be the most appropriate control
objective?
(a) All valid changes to the supplier master file are
input and processed
(b) Changes to supplier master file are accurate
(c) Changes to the supplier master file are
processed in a timely manner
(d) Supplier master file data remain up to date
(Q-147). Orange Ltd. has developed a mobile phone
which is unique for its simplicity and ease of use.

During tests, it finds that the product is really robust
and rarely fails. The industry norm is that mobile phone
manufacturers offer customers the reliable after sales
service and including repair. After a lot of
introspection, the company decides that the
probability of failure of their product was so low and it
would not be worthwhile to invest in a network of
servicing facilities. They decided, instead to offer a free
replacement in the event of failure of their product and
they used this as a marketing strategy for their product
and it turned out to be a roaring success. What type of
risk management strategy has the company adopted in
this case?
(a) Avoid the risk
(b) Share the risk
(c) Accept the risk
(d) Reduce the risk
(Q-148). Agro India Ltd. markets agro chemicals which
is used by farmers when they perceive a pest attack
and would like to act immediately to save their crop.
Hence, prompt and speedy availability is the main
driver for sales of this product. The company, which
had its manufacturing facility located in South India,
found that it is unable to meet the demand from the
Northern States owing to their inability to reach their
product in time. Since the market size being lost out
was substantial as compared to the cost of setting up a
new plant, they ultimately decide to set up a new
manufacturing facility in Punjab which could ensure
timely availability of product so to meet some of the
demand. What type of risk management strategy has
the company adopted in this case?
(a) Avoid the risk
(b) Share the risk
(c) Accept the risk
(d) Reduce the risk
(Q-149). Which of the following statement is most
closely relates to XBRL?
(a) A technology tool that is becoming outdated
(b) An international standard business reporting
language that has streamlined the business
reporting task both across the organisation
and across the globe
(c) An international standard business reporting
language with a vast taxonomy but limited
corporate usages
(d) An international standard business reporting
language having cross-currency constraints
(Q-150). Consider the following statements about
General Compliances:
(i) These are the compliances applicable across
entities
(ii) Tax related laws are most likely to be general
compliances in nature
(iii) Non-compliance with general compliances
doesn’t involve any monetary penalties
(iv) Over the years, the number of general
compliances is either stagnant or falling
Which of the above statements are correct?
(a) (i), (ii) & (iii) Only
(b) (i) & (ii) Only
(c) (ii), (iii) & (iv) Only
(d) (ii) & (iv) Only
Specific Compliances:
(i) These are not applicable across all entities but
applicable to specific entities only
(ii) Direct Tax related laws are most likely to be
specific compliances in nature
(iii) Non-compliance with specific compliances is
usually less serious concern than the non-
compliance with the general compliances
(iv) Usually the same department of the entity
handles the matter of general and specific
compliances
(b) (i) & (ii) Only
(d) (i) & (iv) Only

(Q-152). If Cash ledger is grouped under Indirect
income, __________________.
(a) It shall be displayed in profit and loss account
(b) It shall still be considered in balance sheet as it
is a cash ledger
(c) Software shall show error message
(d) None of above
(Q-153). Identify the ODD among the following?
(a) Spoofing
(b) Logic Bomb
(c) Trap doors
(d) Data leakage
(Q-154). ___________ occur in the environment where
data can be moved asynchronously across the
telecommunication line.
(a) Asynchronous attack
(b) Synchronous attack
(c) Malware attack
(d) Data feeding attack
(Q-155). Which of the following attack involves leaking
of information from computers by dumping files to
paper or stealing information?
(a) Data leakage
(b) Subversive attacks
(c) Wire tapping
(d) Piggybacking
(Q-156). ___________ can provide intruders with the
important information about the messages being
transmitted.
(a) Data leakage
(c) Wire tapping
(d) Piggybacking
(Q-157). __________ involves spying on information
being transmitted over communication network.
(a) Data leakage
(c) Wire tapping
(d) Piggybacking
(Q-158). Which of the following is not a type of logical
access control?
(a) Firepaths controls
(b) Operating system access control
(c) Network access control
(d) User access management
(Q-159). Consider the following statements about the
Asynchronous Attacks:
(i) Wiretapping is one of asynchronous attack
which involves following an authorized person
through a secured door
(ii) Trap door is not a type of asynchronous attacks
(iii) Subversive attacks can provide intruders with
important information about messages being
transmitted
(iv) Data that is waiting to be transmitted are liable
to the unauthorized access called Synchronous
Attack
(b) (i) & (iv) Only
(d) (ii) & (iii) Only
(Q-160). Under Application Controls, __________
maintains chronology of events that occur when a user
attempts to gain access to and employ systems
resources.
(a) Boundary Controls
(b) Input Controls
(c) Communication Controls
(Q-161). Under Application Controls, __________
maintains the chronology of events that occur either to
the database definition or the database itself.
(a) Output Controls
(b) Input Controls
(c) Database Controls
(Q-162). Under the Application Controls, __________
maintains the chronology of events that occur from the
time the content of the output is determined until the
time users complete their disposal of the output.
(a) Output Controls
(b) Input Controls
(Q-163). Under the Application Controls, __________
maintains the chronology of events from the time data

is received from the input or communication
subsystem to the time data is dispatched to the
database, communication, or output subsystems.
(a) Output Controls
(b) Input Controls
(Q-164). To function properly, organisation needs a
proper mechanism to distribute the rights and
responsibilities among the various users. This is called
________________.
(a) Organisational policies
(b) Organisational culture
(c) Organisational leadership
(d) Organisational structure
(Q-165). Organisational structure once established
may have to be changed due to several factors. Which
of the following is not a factor that may cause the
organisational structure to get changed?
(a) Short- and long-term objectives
(b) Market conditions
(c) Regulation
(d) Career advancement
(Q-166). Which of the following statement is incorrect
about the organisational structure?
(a) To function properly, organisation needs a
proper organisational structure
(b) Organisational structure is a living structure
that is established once in the lifetime
(c) Available talent is one of the reasons that may
cause the changes in the organisational
structure of the entity
(d) New regulations may cause the entity to make
changes in its organisational structure
(Q-167). In the context of organisational structure, CPO
stands for ______________.
(a) Chief Policy Officer
(b) Chief Protection Officer
(c) Chief Privacy Officer
(d) Chief Programming Officer
(Q-168). In the context of organisational structure, CIO
stands for ______________.
(a) Chief Intelligence Officer
(b) Chief Investigation Officer
(c) Chief Information Officer
(d) Chief Intellectual Officer
(Q-169). In the context of organisational structure, CSO
stands for ______________.
(a) Chief Software Officer
(b) Chief Security Officer
(c) Chief System Officer
(d) Chief Storage Officer
(Q-170). In the context of organisational structure, CTO
stands for ______________.
(a) Chief Telecom Officer
(b) Chief Technical Officer
(c) Chief Transmission Officer
(d) Chief Tele-communication Officer
(Q-171). In the context of organisational structure,
CISO stands for ______________.
(a) Chief Information System Officer
(b) Chief Intelligence Security Officer
(c) Chief Information Security Officer
(d) Chief Information Software Officer
(Q-172). Which of the following job position is not
covered under the Executive Management team of
organisational IT structure?
(a) Chief Information Officer
(c) Chief Security Officer
(d) Chief Media Librarian
(Q-173). Positions in the _____________ in the
organisational IT structure are involved in design,
development, and testing of the software applications
of the organisation.
(a) Network Management
(b) Data Management
(c) Software Development
(d) Systems Management
(Q-174). Positions in the ___________ in the
organisational IT structure are involved in developing
& implementing database design and databases
maintenance.
(b) Data Management

organisational IT structure are involved in designing,
building, monitoring, and maintaining voice and data
communications networks.
(b) General Operations
organisational IT structure are responsible for
architecture, design, building, and maintenance of
servers and operating systems.
(a) General Operations
(b) Data Management
organisational IT structure are responsible for day-to-
day operational tasks related to networks, servers,
databases, and applications.
(b) Security Operations
designing, building, and monitoring security systems
and security controls, to ensure the confidentiality,
integrity, and availability of information systems.
(b) Security Operations
covered under the General Operations team of
(a) Operations Manager
(b) Media Librarian
(c) Systems Operator
(d) Systems Administrator
covered under the Security Operations team of
(b) Security Engineer
(c) Security Auditor
(d) Systems Operator
covered under the Systems Management team of
(a) Systems Architect
(b) Systems Engineer
(c) Systems Operator
(d) Storage Engineer
covered under the Network Management team of
(a) Network Architect
(b) Network Engineer
(c) Network Administrator
(d) Network Auditor
(Q-183). Positions in the ____________ in the
providing front line support services.
(a) Security Desk
(b) Help Desk
(c) Service Desk
(d) Systems Desk
(Q-184). ___________ position is responsible for
providing front line user support services to personnel
in the organization.
(a) Security Desk Analyst
(b) Help Desk Analyst
(c) Technical Support Analyst
(d) Systems Desk Analyst
providing technical support services to other IT
personnel and customers.
(a) Security Desk Analyst
(b) Help Desk Analyst
(c) Technical Support Analyst
(d) Systems Desk Analyst
performing internal audits of IT controls to ensure that
they are operating properly.
(a) Security Auditor
(b) System Auditor
(c) Support Auditor

(d) Information Systems Auditor
(Q-187). ___________ position is responsible for the
design of security controls and systems such as
authentication, audit logging, intrusion detection
systems, intrusion prevention systems, and firewalls.
(b) Systems Architect
(c) Network Architect
(d) Database Architect
overall architecture of systems (servers) both in terms
of the internal architecture of a system, as well as the
relationship between systems.
(Q-189). ___________ position designs data and voice
networks and designs changes and upgrades to the
network as needed.
developing the logical and physical designs of data
models for the applications.
(Q-191). Job titles in the IT field should be consistent
across the organizations. Which of the following is not
a reason for the same?
(a) Recruiting
(b) Compensation baselining
(c) System Analysis
(d) Career advancement
maintaining & tracking backup tape and other media.
(a) Data Librarian
(b) Media Librarian
(c) System Librarian
(d) Database Librarian
(Q-193). ______________ position is responsible for
designing, building & maintaining the storage
subsystems.
(a) Storage Engineer
(b) Data Engineer
(c) System Engineer
(d) Database Engineer
(Q-194). ___________ position works with different
telecommunications technologies such as data circuits,
phone systems etc.
(a) Network Engineer
(b) Telecom Engineer
(c) System Engineer
(Q-195). ___________ position performs tasks that are
junior to the database administrator like carrying out
routine data maintenance and monitoring tasks.
(a) Database Architect
(c) Database Administrator
(Q-196). ___________ builds and maintains databases
designed by database architect. They also monitors
databases performance & troubleshoots problems.
(a) Database Architect
(c) Database Administrator
monitoring batch jobs, data entry work, and other
tasks to make sure that they are operating correctly.
(a) Control Architect
(b) Control Analyst
(c) Control Administrator
(d) Control Engineer
(Q-198). ___________ position may be responsible for
examining the health of networks, systems, and
databases and for this, he develops operational
procedures, sets and monitors the operations schedule
and maintains operations records.
(a) Operations Architect
(b) Operations Analyst
(c) Operations Administrator
(d) Operations Engineer

(Q-199). ___________ conduct tests to ensure the
software created by developers is fit for purpose.
(a) Data Tester
(b) Software Tester
(c) System Tester
(d) Operations Tester
protection and use of personal information and mostly
found in the companies that collect & store sensitive
information for large numbers of persons.
(a) Chief Security Officer
(b) Chief Protection Officer
(d) Chief Publication Officer
(Q-201). ___________ is responsible for all aspects of
security, including information security, physical
security etc.
(d) Chief Information Security Officer
(Q-202). ___________ is position is responsible for all
aspects of data-related security. It includes incident
management, disaster recovery, vulnerability
management etc.
(Q-203). ___________ is position is responsible for an
organization‘s overall technology strategy.
(Q-204). SOD stands for ________________.
(a) Seclusion of Duty
(b) Segregation of Duty
(c) Selection of Duties
(d) System of Duty
(Q-205). The concept of ____________ ensures that
single individuals do not possess excess privileges that
could result in unauthorized activities.
(a) Users Management
(b) Segregation of Duty
(c) Identity Separation
(d) Reduce access privileges
(Q-206). Which of the following is not a SOD control?
(a) Transaction Authorization
(b) Split custody of high-value assets
(c) Periodic reviews
(d) Reduce access privileges
(Q-207). Segregation of Duties helps to reduce the
possibility of a person being both the __________ and
the ___________ of the frauds committed.
(a) Creator, Originator
(b) Preparator, Manager
(c) Preparator, Identifier
(d) Preparator, Concealer
(Q-208). For mitigating SOD issue, management can:
(a) Reduce access privileges:
(b) Introduce a new mitigating control
(c) Have periodic reviews
(d) Both (a) & (b)
(Q-209). Consider the following statements about the
segregation of duties:
(i) Segregation of duty plays an important role in
the internal control mechanism
(ii) Having the split custody of high-value assets
has no role in segregation of duties
(iii) Transaction authorization is an important
segregation of duty control
(iv) When segregation of duties issue arises in the
company, management can introduce a new
mitigating control
(b) (ii) & (iv) Only
(c) (i), (iii) & (iv) Only
(d) (i) & (iii) Only
(Q-210). __________ is a form of banking that can be
done with the help of normal feature phone even
without internet connection.
(a) AEPS
(b) BHIM UPI
(c) USSD
(d) UDSS

(Q-211). In an inter-university competition on Artificial
Intelligence, four students develop software which
perform the following different functions. Which of the
following is most likely to be an Artificial Intelligence
software?
(a) Calculation software which arrives at the
arithmetic total of figures keyed in
(b) A password system which allows access based
upon entry of the correct password
(c) Predictive & self-learning word-processor
(d) A software which accepts dates only in
numeric format dates
(Q-212). Online virtual assistants like Siri or Alexa are
capable of executing commands given through natural
voice because of __________ technology.
(a) Structured Query Language
(c) Artificial Intelligence
(d) Internet of Things (IoT)
(Q-213). In the large organisations, AI generally means
_________ & BI means ________________.
(a) Advanced Intelligence, Basic Intelligence
(b) Advanced Intelligence, Business Intelligence
(c) Artificial Intelligence, Business Intelligence
(d) Artificial Intelligence, Basic Intelligence
(Q-214). Today many automobile and technology
related companies are developing the self-driving
autonomous vehicles, unmanned drones etc.
According to you, which of the following two
technologies have made it possible?
(e) Cloud Computing, Grid Computing
(f) Data Mining, Data Warehousing
(g) Artificial Intelligence, Machine Learning
(h) Internet of Things (IoT), Mobile Computing
(Q-215). ______________ focuses on the development
of computer programs that can change itself when
exposed to new data or circumstances without being
explicitly programmed.
(e) Machine Learning
(f) Mobile Computing
(g) Internet of Things (IoT)
(h) Machine Computing
(Q-216). Which of the following is the closest
description of Artificial intelligence?
(a) Putting your intelligence into Computer
(b) Programming with your own intelligence
(c) Making a Machine intelligent
(d) Using an intelligent software
artificial intelligence (AI) & machine learning:
(i) Artificial intelligence and machine learning are
related technologies
(ii) Search engines like Google search, online
assistant like Apple Siri, Amazon Alexa etc. also
uses these technologies
(iii) With the passage of time, these technologies
are getting irrelevant
(iv) Though very useful, both AI and machine
learning have their security concerns
(a) (i), (ii) & (iv) Only
(Q-218). Consumer Protection Act, ___________.
(a) 2000
(b) 1999
(c) 1986
(d) 1992
(Q-219). Foreign Trade (Development and Regulation)
Act, ___________.
(a) 1993
(b) 1994
(c) 1986
(d) 1992
(Q-220). The Competition Act, ___________.
(a) 2000
(b) 2005
(c) 2002
(d) 1992
(Q-221). Web 3.0 is also known as _____________.
(a) The social web
(b) The systematic web
(c) The semantic web
(d) The sensitive web
(Q-222). __________ is considered as next logical
evolution of internet and web technologies.
(a)
(b)
(c)
(d)

(a) Web 2.0
(b) Web 3.0
(c) Web Next
(d) Web 2.1
(Q-223). CRT stands for ___________ & LCD stands for
____________.
(a) Crystal Ray Tube, Liquid Crystal Display
(b) Cathode Ray Tube, Liquid Crystal Display
(c) Cathode Ray Tube, Light Crystal Display
(d) Cathode Ray Tube, Liquid Cathode Display
(Q-224). Web 3.0 is a ____________________.
(a) Read only web
(b) Read and write web
(c) Read and execute web
(d) Read, write and execute web
(Q-225). The component of Web 3.0 are ___________
and _____________.
(a) Semantic web, Systematic web
(b) Semantic web, Context web
(c) Semantic web, Web services
(d) Context web, Web services
(Q-226). The websites like Facebook, Twitter, YouTube
etc. are based on _________ technology.
(a) Web 2.0
(b) Web 3.0
(c) Web Evolved
(d) Web 2.1
(Q-227). There is __________ user interaction in case
of web 3.0 websites.
(a) Almost nil
(b) Moderate
(c) Very high
(d) Very basic
(Q-228). Pick the incorrect statement about Web 3.0?
(a) It works on semantic web technology
(b) Web 3.0 is more connected and intelligent web
using machine learning, AI etc.
(c) It is also called the social web
(d) Main programing language of web 3.0 are RDF,
OWL etc.
(Q-229). Consider the following statements about Web
3.0:
(i) It is the second generation of web which works
on read, write and execute concept
(ii) Two of the components of web 3.0 are
semantic web and web services
(iii) It is considered as next logical evolution of
internet and web technologies
(iv) It works on user behaviour and providing web
content depending upon the interest of
individual users
(a) (i), (ii) & (iv) Only
(Q-230). There is one-to-one marketing in case of
____________.
(a) Traditional commerce
(b) Physical commerce
(c) E-commerce
(d) Retail commerce

1 (c) 31 (b)
2 (d) 32 (c)
3 (a) 33 (b)
4 (d) 34 (b)
5 (d) 35 (a)
6 (c) 36 (b)
7 (c) 37 (b)
8 (a) 38 (c)
9 (d) 39 (b)
10 (b) 40 (d)
11 (a) 41 (c)
12 (d) 42 (c)
13 (a) 43 (d)
14 (c) 44 (c)
15 (b) 45 (a)
16 (a) 46 (c)
17 (a) 47 (d)
18 (d) 48 (c)
19 (a) 49 (a)
20 (c) 50 (a)
21 (d) 51 (d)
22 (d) 52 (c)
23 (b) 53 (c)
24 (a) 54 (b)
25 (b) 55 (b)
26 (d) 56 (c)
27 (c) 57 (c)
28 (b) 58 (d)
29 (b) 59 (b)
30 (a) 60 (a)
61 (b) 106 (a)
62 (a) 107 (c)
63 (b) 108 (d)
64 (c) 109 (d)
65 (a) 110 (a)
66 (d) 111 (b)
67 (b) 112 (d)
68 (a) 113 (b)
69 (c) 114 (d)
70 (d) 115 (d)
71 (d) 116 (a)
72 (d) 117 (d)
73 (b) 118 (a)
74 (a) 119 (a)
75 (c) 120 (d)
76 (d) 121 (b)
77 (b) 122 (a)
78 (c) 123 (d)
79 (d) 124 (c)
80 (c) 125 (b)
81 (b) 126 (c)
82 (a) 127 (c)
83 (c) 128 (d)
84 (b) 129 (b)
85 (d) 130 (c)
86 (c) 131 (d)
87 (b) 132 (d)
88 (d) 133 (c)
89 (b) 134 (a)
90 (a) 135 (b)
91 (c) 136 (c)
92 (b) 137 (b)
93 (c) 138 (c)
94 (c) 139 (d)
95 (d) 140 (c)
96 (d) 141 (d)
97 (b) 142 (c)
98 (b) 143 (b)
99 (b) 144 (d)
100 (c) 145 (a)
101 (d) 146 (b)
102 (a) 147 (c)
103 (c) 148 (d)
104 (c) 149 (b)
105 (b) 150 (b)

151 (d) 196 (c)
152 (a) 197 (b)
153 (a) 198 (b)
154 (a) 199 (b)
155 (a) 200 (c)
156 (b) 201 (a)
157 (c) 202 (d)
158 (a) 203 (b)
159 (d) 204 (b)
160 (a) 205 (b)
161 (c) 206 (d)
162 (a) 207 (d)
163 (d) 208 (d)
164 (d) 209 (c)
165 (d) 210 (c)
166 (b) 211 (c)
167 (c) 212 (c)
168 (c) 213 (c)
169 (b) 214 (c)
170 (b) 215 (a)
171 (c) 216 (c)
172 (d) 217 (a)
173 (c) 218 (c)
174 (b) 219 (d)
175 (a) 220 (c)
176 (d) 221 (c)
177 (a) 222 (b)
178 (b) 223 (b)
179 (d) 224 (d)
180 (d) 225 (c)
181 (c) 226 (b)
182 (d) 227 (c)
183 (c) 228 (c)
184 (b) 229 (c)
185 (c) 230 (c)
186 (a)
187 (a)
188 (b)
189 (c)
190 (d)
191 (c)
192 (b)
193 (a)
194 (b)
195 (b)

(Q-1). Which strategy seeks to increase market share
of present products or services in present markets
through greater marketing efforts?
(a) Market Penetration
(b) Market Development
(c) Backward Integration
(d) Product Development
(Q-2). When a domestic company first begins to export
to Japan, it is an example of ___________.
(a) Horizontal Integration
(b) Backward Integration
(c) Concentric Diversification
(d) Market Development
(Q-3). Which strategy generally entails large research
and development expenditures on the existing product
so to refine it or upgrade it but for the existing
customers and market?
(b) Retrenchment
(c) Product Development
(d) Market Development
(Q-4). All of the following situations are conducive to
market development except:
(a) When new untapped markets exist
(b) Organization has excess production capacity
(c) When an organization’s domestic industry is
becoming rapidly global in scope
(d) When organization operates in high-growth
industry
(Q-5). Which strategy is appropriate when organization
competes in an industry characterized by rapid
technological developments?
(b) Retrenchment
(d) Liquidation
(Q-6). Which strategy should an organization adopt if it
competes in an industry having no growth or very slow-
growth for a very long time?
(a) Forward Integration
(b) Related Diversification
(c) Liquidation
(d) Unrelated Diversification
(Q-7). Which of the following is not an example of
when an organization should adopt an unrelated
diversification strategy?
(a) When revenues derived from organization’s
current products or services would increase
significantly by adding the new unrelated
products or services
(b) When organization’s present channels of
distribution can be used to market the new and
unrelated products to the customers
(c) When new products is going to have positive
effect on the organization’s present products
(d) When organization has weak and ineffective
management team
(Q-8). Indus Mart, a country wide retail chain store is
closing one-third of its stores and eliminating 30,000
jobs in an attempt to avert liquidation. It would be an
example of __________.
(a) Stability
(b) Backward integration
(c) Retrenchment
(d) Forward integration
(Q-9). What kind of strategy is retrenchment?
(a) A turnaround strategy
(b) An expansion strategy
(c) A diversification strategy
(d) An offensive strategy
(Q-10). Retrenchment would be an effective strategy
when an organization ___________.
(a) Has grown so quickly that it need to spend
some time in consolidating its business
(b) Is one of the strongest competitors in the
industry it operates in
(c) Is plagued by inefficiency, low profitability, low
employee morale, external pressure etc.
(d) Has decided to capitalize on opportunities by
taking advantages of its strengths
(Q-11). Which strategy should be implemented when a
division is responsible for organization’s consistently
overall poor performance?
(a) Liquidation Strategy
(b) Divestment Strategy
(c) Integration Strategy
(d) Cost Leadership Strategy

(Q-12). Selling off the entire assets of a company in
parts is called ____________.
(a) Turnaround
(b) Divestment
(c) Diversification
(d) Liquidation
(Q-13). According to Michael Porter, which strategy
offers products or services to a small range of
customers at the lowest possible price available on the
market?
(a) Broad Low-Cost
(b) Low-Cost Focus
(c) Best-Value Focus
(d) Focused Differentiation
(Q-14). Under which of the following situation would a
cost leadership strategy be effective?
(a) When there are many ways to differentiate the
product or service and many buyers perceive
these differences as having value
(b) When buyer needs and uses are diverse
(c) When technological change is fast paced and
market competition revolves around the
rapidly evolving product features
(d) When the products of rival sellers are
essentially identical and supplies are readily
available from any sellers
(Q-15). Under which of the following situation would a
differentiation strategy be especially effective?
(a) When the target market is composed of buyers
who do not consider differentiating features as
of much value
(b) When the products of rival sellers are
essentially identical and supplies are readily
available from any available seller
(c) When technological change is fast paced and
competition in the market revolves around
rapidly evolving product features
(d) When industry do not offer much scope for the
differentiating features and attributes
(Q-16). When two or more companies enters into a
temporary partnership or consortium for the purpose
of capitalizing some opportunity, it is known as
_______________.
(a) Retrenchment
(b) Joint venture
(c) Alliances
(d) Both (b) & (c)
(Q-17). All of the following falls under the scope of joint
venture or strategic alliances except:
(a) R&D partnerships
(b) Cross-branding agreements
(c) Cross-manufacturing agreements
(d) Developing proprietary patents
(Q-18). Which of the following is not a reason of the
failure of joint ventures?
(a) Managers who must collaborate in operating the
venture successfully are not involved in
managing the venture
(b) The venture may not be supported equally by
both the partners
(c) The venture may benefit the partnering
companies but not benefiting the customers who
then complain about poor service or criticize the
companies in social media
(d) Stakeholders of both the partner companies are
equally satisfied
(Q-19). When two organizations of about equal size
unite to form one enterprise, which of these occurs?
(a) Takeover
(b) Merger
(c) Acquisition
(d) Leveraged Buyout
(Q-20). Mergers and acquisitions are created for all of
the following reasons except to __________.
(a) Gain new technology
(b) Reduce overall tax obligations
(c) Gain economies of scale
(d) Increase the total number of employees
(Q-21). Which of the following statement best
describes a company's competitive strategy?
(a) What its strategy should be in the functional
areas as R&D, production, sales, human
resource, finance etc.
(b) Its efforts to change its position on the industry's
strategic group map
(c) .Become cost leader in the market by offering the
low-cost products to a broad range of customers
(d) Management's game plan for competing
successfully in the competitive marketplace

(Q-22). Which of the following is the situation that
leads to competitive advantage to the entity?
(a) It is the acknowledged leader in the industry in
terms of market share
(b) It has more financial resources than its rivals
(c) It has a strong balance sheet and low debt
(d) It has some type of edge over rivals in terms of
attracting customers
(Q-23). Which of the following is not one of the generic
competitive strategies recommended by Michael
Porter?
(a) Low-cost provider strategy
(b) Broad differentiation strategy
(c) Focused low-cost provider strategy
(d) Market share dominator strategy
(Q-24). Which one of the following strategy is typically
the best strategy for a company to employ?
(a) Low-cost leadership strategy
(b) Broad differentiation strategy
(c) Focused low-cost provider strategy
(d) There is no such thing as a best strategy and it
will depend upon competitive conditions and
company's own strength & weaknesses
(Q-25). You are considering to acquire a company
named Ben Ltd. It has not grown much in recent years
probably because the industry it operates in is flat for
a quite long time. However due to very low debt and a
strong market share, it generates a huge amount of
cash. According to BCG Matrix, Ben Ltd. would be
considered a ____________.
(a) Cash Cow
(b) Star
(c) Question Mark
(d) Dog
(Q-26). Recently, you acquired a company that
manufactures transmission satellites used in the cable
television market. The transmission satellites industry
is profitable and growing at a rapid pace, however
currently the company you acquired has a very limited
market share. As per the BGC Matrix, the company you
purchased will be considered as a ___________.
(a) Cash Cow
(b) Star
(c) Question Mark
(d) Dog
(Q-27). B Ltd., a large FMCG group is considering to
diversify in the fast food and beverages industry. This
industry is already having many large players with
thousands of fast food and beverages outlets. B Ltd. is
considering to acquire a local coffee-shop chain with 25
outlets in the city. B Ltd. don’t see the growing very
much, but the deal could be obtained at a very
attractive price. As per BCG matrix, the coffee chain will
be labelled as a _____________.
(a) Cash Cow
(b) Star
(c) Question Mark
(d) Dog
(Q-28). You are the owner of InstaRock Ltd. that
manufactures and sells consumer electronics items.
Your oldest supplier, Apple Co. is a family-owned firm.
Recently, the firm’s president, Mohan Das made the
decision to retire. To his disappointment, none of his
two children stepped forward to take his place in the
company. Mr. Mohan is concerned that if he sells his
company to a larger entity, many of his employees will
lose their jobs. You approach him to buy Apple Co. and
continue its current operations. Should your offer be
accepted, InstaRock Ltd. would be undertaking a
___________ strategy.
(a) Concentric Diversification
(b) Horizontally Integration
(c) Forward vertical integration
(d) Backward vertical integration
(Q-29). You are the owner of KKC Restaurants, a large
fast food chain having nation-wide operations. You’ve
decided to purchase the controlling interest in the
Oriental fast-food restaurants having a restaurant
chain of over 500 restaurants. This move by KKC
Restaurants represents _________ strategy.
(a) Unrelated Diversification
(Q-30). You are the owner of Delicious Food Plaza, a
large fast food chain having nation-wide operations.
You decide to purchase a small hardware company as
it represents a good investment opportunity due to the
growing real-estate development activities. This is an
example of _____________.
(a) Unrelated Diversification

(Q-31). Akashay Kumar runs a successful company that
sells home gardening tools and equipment’s. He is
approached by a competitor who is nearing retirement
age. The competitor is interested in selling his business
to Akashay. For Akashay, this would be a __________
strategy.
(a) Unrelated diversification
(b) Horizontal integration
(c) Vertical integration
(d) Concentric diversification
(Q-32). Mukesh Kumar runs a successful company that
sells home gardening tools and equipment’s. He is
approached by a company that sells the seeds and
fertilizers for the home garden plants and flowers. If
Akashay acquires that company, this would be a
__________ strategy.
(a) Unrelated diversification
(b) Horizontal integration
(c) Vertical integration
(d) Concentric diversification
(Q-33). Once a company has assessed all the five forces
of competitive pressure and determined the threats
and opportunities that exist in the current
environment, then it should select an appropriate
competitive strategy. Porter outlines three “generic”
strategies namely cost leadership, differentiation, and
____________.
(a) Niche
(b) Differentiation
(c) Focus
(d) Stuck in the middle
(Q-34). The strategic management process is a:
(a) Set of activities, steps, plans, procedures and
methods that guarantees to prevent the
organizational failure
(b) Process concerned with a firm's resources,
capabilities, and competencies, but not the
conditions in its external environment
(c) Set of activities that to date have not been used
successfully in the not-for-profit sector
(d) Dynamic process involving set of planning,
commitments, decisions, and actions related to
the firm
(Q-35). Which of the following statement best refers
the Strategic mission?
(a) is a statement of a firm's unique purpose and
scope of operations
(b) is an internally focused statement of the
organization's societal and ethical goals
(c) specifies the industry in which the firm intends to
compete
(d) is developed by a firm before the firm develops
its strategic intent
(Q-36). Switching costs refer to the ___________.
(a) Cost to a producer to exchange equipment in a
facility when a new technologies emerge
(b) Cost of changing the firm's strategic group
(c) Costs suppliers incur when selling to a different
customer
(d) Readjustments related costs customers incur
when buying from a different supplier
(Q-37). Suppliers are powerful when:
(a) Substitutes are readily available
(b) Nature of product sold is not crucial to the
buyer’s needs
(c) They represents a credible threat of forward
integration
(d) They are highly fragmented in nature
(Q-38). Buyers are powerful when:
(a) There is not a threat of backward integration
(b) They are not a significant purchaser of the
supplier's output
(c) There are no switching costs
(d) The buyers are fragmented in nature
(Q-39). Upper limits on the prices a firm can charge are
impacted by _____________
(a) Total costs of production
(b) The cost of related substitute products
(c) Variable costs of production
(d) Customer’s switching costs
(Q-40). Tangible resources of organisation include:
(a) Assets such as know-how
(b) Assets that can be seen and quantified
(c) Organizational culture
(d) Firm's reputation
(Q-41). Firm adopting cost leadership strategy should
provide the goods or services with features that are:

(a) Acceptable to customers
(b) Unique in the market
(c) Highly valued by the customer
(d) Able to meet unique needs of the customer
(Q-42). When the costs of supplies increase in the
industry, the low-cost leader may __________.
(a) Continue competing with rivals on the basis of
product’s unique features and attributes
(b) Lose customers as a result of price increases
(c) Make find it difficult to survive in the market
(d) Be able to bear the higher input prices and
continue to earn the average returns
(Q-43). The risks of a cost leadership strategy includes
____________.
(a) Competitors may imitate the successful cost
leadership strategy
(b) Technology breakthroughs may make cost-
leadership strategy ineffective
(c) Customers may not value the differentiating
features and pay the premium prices
(d) Both (a) and (b)
(Q-44). A differentiation strategy provides products
that customers perceive as having ___________.
(a) Acceptable features
(b) Features of little value relative
(c) Features for which customer will pay low price
(d) Features that are unique for the customers
and for which they are willing to pay a
premium price
(Q-45). The differentiation strategy can be effective in
dealing with the existing competitors in an industry
because ___________.
(a) Customers will seek out the lowest price
product available in the market
(b) Customers of differentiated products are
sensitive to price increases
(c) Customers are loyal to the brands that are
differentiated in meaningful ways
(d) Differentiation strategy may be copied by the
competitors if it proves successful
(Q-46). When implementing a focus strategy, the firm
seeks ______________.
(a) To be the lowest cost producer in an industry
(b) To offer products with unique features or
attributes for which customers will be willing
to pay a premium price
(c) To undercut the competitor in terms of price
(d) To serve the specialized needs of a specific
market segment
(Q-47). Which of the following statement is best
associated with the nine-cell matrix?
(a) Indicates which businesses are the cash cows
or dogs
(b) Indicates what strategic alternative entity
should opt based on industry life cycle and
firms competitive position in the market
(c) Useful for deciding which businesses should
have high, medium or low priorities in
allocating the corporate resources
(d) Indicates what should be growth strategy
based on the product market combination of
the entity
(Q-48). Which of the following statement best
describes a "cash cow" type of business?
(a) Generates high returns on investment and
operates in a high growth industry
(b) Is very profitable with low no long-term debt
but operates with low market share
(c) Generates positive cash flows over and above
its requirements, thus can be used for
financing new acquisitions, investments
(d) Struggles to generate enough cash flow in the
high growth market
(Q-49). Conglomerate diversification is another name
for which of the following?

(a) Related diversification
(b) Unrelated diversification
(c) Portfolio diversification
(d) Integrated diversification
(Q-50). Under which of the following strategies entity
sells its existing products with no modifications to
existing customers with new marketing strategies?
(a) Market development
(b) Market penetration
(c) Horizontal integration
(d) Product development
(Q-51). An example of _____________ strategy is to
establish website to sell directly to consumers.
(a) Backward Integration
(b) Conglomerate Diversification
(c) Concentric Diversification
(d) Forward Integration
(Q-52). Which of the following is not an appropriate
situation for pursuing liquidation?
(a) When divestment strategy adopted but
proved to unsuccessful
(b) When organization's only remaining feasible
alternative is bankruptcy
(c) When stockholders of the firm can minimize
their losses by selling the firm's assets
(d) When the organization has successfully
implemented retrenchment strategy
(Q-53). A strategy that occurs when two or more
companies form a temporary partnership or
association for capitalizing on some opportunity is
called ____________.
(a) Merger
(b) Joint Venture
(c) Acquisition
(d) Takeover
(Q-54). _________ includes increasing the number of
salespersons, increasing advertising expenditures,
offering extensive sales promotion items or increasing
publicity efforts so to increase the market share of the
organisation’s products or services.
(a) Market Development
(b) Product development
(c) Horizontal integration
(d) Market penetration
(Q-55). Question mark in the BCG Matrix refers an
investment, which ___________.
(a) Yields low current income but has bright
growth prospects
(b) Yields high current income and has bright
growth prospects
(c) Yields high current income and has bleak
growth prospects
(d) Yields low current income and has bleak
growth prospects
(Q-56). Which of the following statement describes
Benchmarking the best?
(a) The analytical tool to identify high cost
activities in the organisation
(b) The search for industries best practices that
lead to superior performance
(c) The cost reduction schemes that helps the
entity to become cost leader in the market
(d) The framework that creates a linkage of the
organisation with its suppliers & customers
(Q-57). The essential ingredients of Business Process
Re-engineering are:
(a) Continuous improvements of products,
processes and technologies
(b) Planning in the areas of technologies, research
and development etc.
(c) Fundamental rethinking and radical redesign
of processes to achieve dramatic results
(d) Adopting industries best practices that lead to
superior performance
(Q-58). A company’s actual strategy is _________.
(a) Mostly hidden to outside view and is known
.only to the corporate-level managers
(b) Planned well in advance and deviates little
.from the planned set of actions
(c) Mostly a function of the strategies being used
by rival companies particularly those
companies that are industry leaders
(d) Partly proactive and partly reactive to the
.changing circumstances
(Q-59). The strategy of the TATA Group in India could
be viewed as a good example of ____________.
(a) Conglomerate Diversification
(c) Cost Leadership

(d) Concentric Diversification
(Q-60). The Product Market matrix comprising of
Strategies of Penetration, Market Development,
Product Development and Diversification was first
formulated by _____________.
(a) Igor Ansoff
(b) Peter Drucker
(c) Michael Porter
(d) Ramen Andrews
(Q-61). If an organisation acquires its supplier to get
the better control over its supply chain, it is an example
of ____________.
(a) Horizontal integration
(b) Forwards vertical integration
(c) Backwards vertical integration
(d) Concentric integration
(Q-62). In product life cycle, ‘cash cows’ indicates:
(a) High share, high growth, negative cash flow
(b) Low share, low growth, negative cash flow
(c) High share, low growth, positive cash flow
(c) Low share, high growth, positive cash flow
(Q-63). The ADL Portfolio Matrix suggested by Arthur
D. Little consists of __________ cells.
(a) Nine
(b) Six
(c) Eighteen
(d) Twenty
(Q-64). As per __________, ‘Dominant’ position
denotes a situation where the Business enjoys a
monopoly position or has very strong position.
(a) BCG Matrix
(b) GE Nine Cell Matrix
(c) Michael Porter Five Forces Model
(d) ADL Matrix
(Q-65). The existence of price-wars in the airline
industry in indicates __________.
(a) Customers are relatively weak because of the
high switching costs
(b) Industry is moving towards decline phase
(c) Competitive rivalry in the industry is intense
(d) Economy is moving towards recession and it is
an early warning signal of it
(Q-66). Which of the following cannot be the treated
as a strength of an organization?
(a) Good Industrial relations
(b) Incentives from State Government
(c) Financially very sound
(d) Raw materials source at a distance
(Q-67). Amul Ltd. produces a popular flavored milk
called Amul Cool Milk. Amul has launched new
advertisement campaign that says, ‘Have Amul Cool
Milk with tea and coffee too’. Amul Ltd. is most
probably pursuing _______________ strategy.
(a) Market Development
(b) Product Development
(c) Market Penetration
(d) Diversification
(Q-68). Consider the following statements:
(i) Competitive strategy is designed to help firms
achieve competitive advantage
(ii) Growth share matrix is popularly used for
resource allocation
(iii) Core competence is a unique strength of
organization which is also shared by others
(iv) Liquidation is the last resort option for a
business
(a) (i), (ii), (iii), (iv)
(b) (i), (ii), (iii), only
(c) (i), (ii), (iv) only
(d) (i), (iv) only
(Q-69). Mr. Amar is the manager of a small sports retail
chain Reebee. Reebee is trying hard to better position
itself in the sports industry and get profitable. He has
investigated the company's internal resources and
situational factors, as well as factors and trends in the
competitive sports retail chain market. Which of the
following has Amar completed?
(a) SWOT Analysis
(b) Business Portfolio Analysis
(c) Business Life Cycle Analysis
(d) Marketing Mix Analysis
(Q-70). When the four Ps are compared to the four Cs,
product and place are called _________ and
_________, respectively.
(a) Convenience; Customer Solution

(b) Customer Cost; Convenience
(c) Communication; Customer Solution
(d) Customer Solution; Convenience
(Q-71). Ms. Sunita is the director of marketing for Surya
Ltd., a company that sells industrial vehicles and heavy
construction machines. She is developing a marketing
plan to cover the next five to seven years of the
company. Which of the following is an uncontrollable
factor that Ms. Sunita must consider in her marketing
plan?
(a) Distribution factors
(b) Economic factors
(c) Promotional factors
(d) Warranty and after sales services factors
(Q-72). Family Mega Mart is facing a tough time and is
planning to lower prices in an effort to encourage
customers to visit more often, spend more time and
spend more money during each visit. What type of
strategy is Family Mega Mart planning?
(d) Customer Development
(Q-73). Amarpreet Manufacturing’s is a fast-growing
iron tools and equipment maker based in Andhra
Pradesh. It has five manufacturing facilities and
currently operating in twenty-six states of the country.
Its main product segment includes industrial tools,
home tools, industrial electronic and home electronics
division. Till now Amarpreet Manufacturing’s has
appointed four different managers who have managed
the different product groups of the company.
Considering the further growth opportunity,
Amarpreet Manufacturing’s is considering to
reorganize itself based on the areas it serves and
decided to curtail the managers from existing four to
three to head the North, East and Central divisions of
the company. Amarpreet Manufacturing is currently
using _______________ organisational structure and is
evaluating _______________ organisational structure.
(a) Functional, Division by Product
(b) Division by Product, Division by Geography
(c) Division by Geography, Division by Customer
(d) Division by Product, Functional
(Q-74). Fun & Family Ltd. began as a small amusement
park in 1988. With nothing more than few basic water
games, fun-rides, and an ice cream stand, Fun & Family
grew into a very popular family attraction with a theme
park, variety of water shows, variety of amazing rides,
a multi-cuisine restaurant, and an outdoor performing
arts theater. Today, thousands of families and children
of all ages, and even senior citizens enjoy visiting Fun &
Family. Apart from the ever-growing number of family
visitors, hundreds of companies hold their annual
company picnics for employees here. Fun & Family Ltd.
is also getting huge number of advance booking for the
corporate annual general meetings as well as a
wedding destination. Considering the huge growth
opportunity, the company is planning aggressive
expansion strategy with at least 4 to 5 new theme
parks and is considering to commit the investment of
₹8 Thousand to ₹10 Thousand crores. Into which of the
following quadrant of the BCG matrix does Fun &
Family fall?
(a) Star
(b) Question mark
(c) Cash-cow
(d) Dog
(Q-75). Through SWOT analysis organisations identify
their strengths, weaknesses, opportunities and
threats. While conducting the SWOT Analysis
managers are often not able to come to terms with the
strategic choices that the outcomes demand. In these
situations, TOWS matrix plays an important role and
helps the entity in selecting a suitable strategy. As per
TOWS Matrix, a company is in the best strategic
position if it in in ________________ position?
(a) SO
(b) ST
(c) WT
(d) WO
(Q-76). Family, Fun & You Ltd. began as a small
amusement park in 1990. With nothing more than few
basic water games, fun-rides, and an ice cream stand,
Family, Fun & You grew into a very popular family
attraction with a theme park, variety of water shows,
variety of amazing rides, a multi-cuisine restaurant,
and an outdoor arts theater. Today, thousands of
families and children of all ages, and enjoy visiting
Family, Fun & You. Apart from the ever-growing
number of family visitors, hundreds of companies hold
their annual company picnics for employees here.
Family, Fun & You Ltd. is also getting huge number of
advance booking for the corporate annual general

meetings as well as a wedding destination. The
company is planning aggressive expansion strategy
with at least 4 to 5 new theme parks and is considering
to commit the investment ranging from ₹5,000 Crores
to ₹7,000 crores. Which of the following would be
classified as an opportunity in a SWOT analysis of
Family, Fun & You Ltd.?
(a) A rival amusement park announces plans to
expand itself significantly
(b) A new luxury hotel is being constructed in the
area where Family, Fun & You servers, with
the aim of luring more high-spending families
on vacation
(c) Its employees are enthusiastic, young & very
customer friendly
(d) Family, Fun & You plans to further diversify its
offerings by beginning a three-week summer
camp for primary school students
(Q-77). The pharmaceuticals division of Lifelong
Healthcare Ltd. holds a low market share but operates
in high-growth market. Lifelong Healthcare Ltd. is
exploring the ways it could increase the market share
of its pharmaceuticals division. Currently as per BCG
Matrix, the pharmaceuticals division is most likely to be
classified as __________. In order to increase market
share, managers would be most likely to decide which
of the following course of action?
(a) Dog, Hold pharmaceuticals division's share
(b) Question Mark, Implement harvest strategy
(c) Question Mark, Use money from a cash cow
division to invest in pharmaceuticals division
(d) Question Mark, Divest the SBU
(Q-78). ‘Determinants Analysis’ falls in the purview of
______________.
(a) External competitive strategy analysis
(b) Internal competitive strategy analysis
(c) Strategic risk
(d) Competitive landscape
(Q-79). ‘Customer Analysis’ and ‘Market Analysis’ are
the part of ______________.
(a) Internal analysis
(b) Strategy identification and selection
(c) External Analysis
(d) None of the above
(Q-80). Geographical Diversification, Product
diversification and Entry Mode are the domains of:
(a) Functional Strategy
(b) Business Strategy
(c) Corporate Strategy
(d) All of the Above
(Q-81). Which of the following bases of competitive
advantage is more sustainable:
(a) A customer perceived benefit based
competitive advantage
(b) Price-based competitive advantage
(c) Cost-based competitive advantage
(d) Revenue based competitive advantage
(Q-82). Entering into a ‘project contract’ by MNCs is an
example of _____________.
(a) Partial Ownership Alliance
(b) Joint Venture Alliance
(c) Equity Alliance
(d) Joint Ownership Alliance
(Q-83). Which of the following is true of a transnational
Corporation?
(a) They have subsidiaries but do not have
centralized management system
(b) They have no subsidiaries but have centralized
management system
(c) They do not have subsidiaries and do not have
centralized management system
(d) They have subsidiaries and have centralized
management system
(Q-84). Which of these basic questions should a vision
statement answer?
(a) What is our business?
(b) Who are our competitors?
(c) Where we are to go?
(d) Why do we exist?
(Q-85). The competencies or skills that a firm employs
to transform inputs into outputs are:
(a) Tangible resources
(b) Intangible resources
(c) Organizational capabilities
(d) Reputational resources
(Q-86). The most probable time to pursue a harvest
strategy is in a situation of ____________.
(a) High growth
(b) Decline in the market life cycle
(c) Strong competitive advantage

(d) Mergers and acquisitions
(Q-87). A narrow market focus is to a differentiation-
based strategy as a ___________.
(a) Broadly-defined target market is to a cost
leadership strategy
(b) Growth market is to a cost-based strategy
(c) Technological innovation is to a cost-based
strategy
(d) Growth is to a differentiation strategy
(Q-88). Vertical integration may be beneficial when:
(a) Lower transaction costs and improved
coordination are vital and achievable through
vertical integration
(b) Flexibility is reduced, providing a more
stationary position in the competitive
environment
(c) Various specializations will be lost
(d) The minimum efficient scales of two
corporations are different
(Q-89). Individual investors are reliant on upon the
organisation's managers to ___________.
(a) Maximize short-term returns in the form of
dividends
(b) Add value to their investments in a way that
the stockholders could not accomplish on
their own
(c) Achieve risk reduction at a lower cost than
stockholders could obtain on their own
(d) Diversify the stockholder's investments in
order to reduce risk
(Q-90). When to organisations combine to increase
their strength and financial gains along with breaking
the trade barriers is called ___________.
(a) Hostile takeover
(b) Liquidation
(c) Merger
(d) Acquisition
(Q-91). Which of the following is not true for SBUs?
(a) It is relevant for multi-product, multi-business
enterprises
(b) It provides for more control at enterprise level
with centralized strategic planning
(c) SBU has its own set of competitors
(d) SBUs can be created for units at distant
geographical locations
(Q-92). Best-cost provider strategy is related to
providing customers more value for money by:
(a) Highlighting on the low cost & low-quality
difference
(b) Emphasizing on the low cost & better-quality
difference
(c) Producing high cost & low-quality difference
(d) Managing high cost & low-quality difference
(Q-93). Arrange divestment, liquidation, stability and
turnaround strategies in order of preference for
adoption by a typical organisation.
(a) Turnaround, stability, liquidation & divestment
(b) Divestment, liquidation, stability & turnaround
(c) Stability, turnaround, liquidation & divestment
(d) Stability, turnaround, divestment & liquidation
(Q-94). Which of the following is not true for the core
competency?
(a) It distinguishes a company competitively
(b) It is a source of competitive advantage
(c) It is an individual skill and separate technique
(d) It is often visible in the form of organizational
functions
strategic management?
(i) Strategic management provides framework for
major decisions
(ii) Strategic management helps to enhance the
longevity of the business
(iii) Strategic management is inexpensive process
(iv) Strategic management helps organisation to
be more reactive than proactive
Which of the following statements are correct?
(a) (i) and (ii)
(b) (i), (ii) and (iii)
(c) (i), (ii) and (iv)
(d) (i), (iii) and (iv)
with regards to strategy?
(a) Strategy reduces uncertainty
(b) Strategy is long range blueprint of desired
position
(c) Strategy relates organisations to the external
environment
(d) Strategy is perfect and flawless

CA INTER EIS-SM 400 MCQs

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to CA INTER EIS-SM 400 MCQs

Similar to CA INTER EIS-SM 400 MCQs (20)

Recently uploaded

Recently uploaded (20)

CA INTER EIS-SM 400 MCQs