Super Sure MCQs on ManagementCommerce PART 14.pdf

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SUPER SURE MCQs ON
MANAGEMENT/COMMERCE
PART - 14
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Assertion (A):The return received by the investor in the case of zero coupon
bonds is the difference between the redemption value and the face value at which
the bond was purchased.
Reason (R):Minimal interest is paid to the investor in the case of zero coupon
bonds, which is equal to the risk of government bonds.
(a) (A) and (R) are correct and (R) is the correct explanation of (A)
(b) (A) and (R) are correct but (R) is not the correct explanation of (A)
(c) (A) is incorrect, but (R) is correct
(d) (A) is correct, but (R) is incorrect
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Correct Option/Answer: (d) (A) is correct, but (R) is incorrect
Explanation: The assertion is correct as the return received by the
investor in the case of zero coupon bonds is the difference between
the redemption value and the face value at which the bond was
purchased. The reason is incorrect as no interest is paid to the
investor in the case of zero coupon bonds.

Assertion (A):Walter assumes that there is no change in the earnings per share
and the dividend per share. The life of the firm is perpetual.
Reason (R): Financing is done through retained earnings under the Walter model
of dividend theory.

Correct Option/Answer:
(b) (A) and (R) are correct but (R) is not the correct explanation of
(A)
Explanation: Both assertion and reason are correct but reason doesn’t explain the
assertion. Walter assumes that there is no change in earnings per share and
dividend per share. The life of the firm is perpetual. Financing is done through
retained earnings under the Walter model of dividend theory. Both statements
are assumptions of the Walter Model. Therefore, option (b) is the correct answer.

Assertion (A):Packman defence is a technique under which the
targeted firm tries to defeat and acquire an acquiring firm.
Reason (R): The company might use its war chest that is kept for
uncertainties in order to defeat the acquiring firm.
Codes:

Correct Option/Answer: (a) (A) and (R) are correct and (R) is the
correct explanation of (A)
Explanation: Both assertion and reason are correct as the reason explains the
assertion correctly. This is because packman defence is a technique under which
the targeted firm tries to defeat and acquire an acquiring firm. The company
might use its war chest, which is kept for uncertainties in order to defeat the
acquiring firm.
Therefore, option (a) is the correct answer.

What Is the Pac-Man Defense?
The Pac-Man defense is a defensive tactic used by a targeted firm in a hostile
takeover situation. In a Pac-Man defense, the target firm then tries to acquire the
company that has made a hostile takeover attempt.
What is the meaning of Pac-Man defense?
The Pac-Man defense is a defensive tactic used by a targeted firm in a hostile
takeover situation. In a Pac-Man defense, the target firm then tries to acquire the
company that has made a hostile takeover attempt.
What is a Pac-Man strategy?
Pac-Man is a hostile takeover defense tactic that involves the target company
attempting to acquire control of the company that bid for it. ... Implementing a
Pac-Man strategy costs a lot of money and can result in a company taking on too
much debt and being forced to sell off assets.

What is a poison pill defense?
A poison pill is a defense tactic utilized by a target company to prevent or
discourage hostile takeover attempts. Poison pills allow existing shareholders the
right to purchase additional shares at a discount, effectively diluting the
ownership interest of a new, hostile party.
A poison pill is a defense tactic utilized by a target company to prevent or
discourage hostile takeover attempts. Poison pills allow existing shareholders the
right to purchase additional shares at a discount, effectively diluting the
ownership interest of a new, hostile party.

Match the following:
Codes 1 2 3 4
(a) B A C D
(b) A B D C
(c) B C A D
(d) A C D B
List I List II
1. World Bank A. 1944
2. IDA B. 1960
3. IFC C. 1956
4. WTO D. 1995

Correct Option/Answer: (b) 1-A, 2-B, 3-C, 4-D
The World Bank was developed in 1944. International Development Association
(IDA) was developed in 1960. International Financial Corporation was developed
in 1956. The World Trade Organisation (WTO) was developed in 1995. Therefore,
option (b) is the correct answer.
List I List II
1. World Bank A. 1944
2. IDA B. 1960
3. IFC C. 1956
4. WTO D. 1995

Statement I: The derivatives have the advantage of hedging risk
exposure and have low risk.
Statement II: Derivatives can be speculative and can have a
counterparty failure.
Options:
(a) Statement I is correct, but statement II is incorrect
(b) Statement II is correct, but statement I is incorrect
(c) Both statements are correct
(d) Both statements are incorrect

Correct Option/Answer: (b) Statement II is correct, but statement I
is incorrect
Explanation: Statement one is incorrect as the derivatives have the
advantage of hedging risk exposure and have high risk. Statement
two is correct as the derivatives can be speculative and can have a
counterparty failure.

A derivative is a contract between two or more parties whose value is based on
an agreed-upon underlying financial asset (like a security) or set of assets (like an
index). Common underlying instruments include bonds, commodities, currencies,
interest rates, market indexes, and stocks.
What is meant by derivative market?
The derivatives market refers to the financial market for financial instruments
such as futures contracts or options that are based on the values of their
underlying assets.
The best examples of derivative markets are currency futures and options U.S.
and other developed countries. ... Although the volume of futures market is still
smaller than the forward market but is growing at a rapid pace. Inter-bank call
market and International Money market are all parts of the foreign Exchange
Market.

What is the advantage of derivatives?
Market-efficiency
It is considered that derivatives increase the efficiency of financial
markets. By using derivative contracts, one can replicate the payoff
of the assets. Therefore, the prices of the underlying asset and the
associated derivative tend to be in equilibrium to avoid arbitrage.

What are the advantages of derivatives and what are the criticisms
against derivatives?
There are some operational advantages to the derivative
market: Derivatives have lower transaction costs than transacting
in the equivalent underlying asset. Derivatives markets typically
have greater liquidity than the underlying market. Derivatives allow
short positions to be entered into easily.

Statement I: Turnaround strategy, disinvestment and liquidation are the three
types of expansion corporate strategies.
Statement II: Use of multiple strategies in order to achieve the desired results is
known as combination strategy.
Options:

is incorrect
Explanation: The first statement is incorrect as turnaround strategy,
disinvestment and liquidation are the three types of retrenchment
corporate strategies. The second statement is correct because the
use of multiple strategies in order to achieve the desired results is
known as a combination strategy.

Statement I: The culture of the organisation influences the soft areas under the
McKinsey 7S Framework.
Statement II: The hard areas under the McKinsey 7S Framework are easy for the
management to change and influence.
Options:

Correct Option/Answer:(c) Both statements are correct
Explanation: The culture of the organisation influences the soft
areas under the McKinsey 7S Framework. The hard areas under the
McKinsey 7S Framework are easy for the management to change
and influence.
Therefore, both statements are correct.

What is McKinsey 7S Model explain briefly?
The McKinsey 7S Model refers to a tool that analyzes a company's
“organizational design.” The goal of the model is to depict how effectiveness can
be achieved in an organization through the interactions of seven key elements –
Structure, Strategy, Skill, System, Shared Values, Style, and Staff.
The McKinsey 7S Model is an organizational tool that assesses the wellbeing of
seven internal factors of an organization as a means of determining whether a
company has the structural support to be successful.

Arrange the following steps in the correct order of evaluating the strategy.
1. Analysing Variance
2. Taking corrective action
3. Measurement of performance
4. Fixed benchmark of performance
Options:
(a) 4, 3, 2 and 1
(b) 3, 4, 1 and 2
(c)1, 3, 4 and 2
(d) 4, 3, 1 and 2

Correct Option/Answer: (d) 4, 3, 1 and 2
Explanation: The steps involved in strategy evaluation are as follows:
1. Fixed Benchmark of Performance
2. Measurement of Performance
3. Analysing Variance
4. Taking Corrective Action

Statement I: The cash cows under the BCG Matrix are treated and known as
former stars in the growing market.
Statement II: The dogs under the BCG Matrix are considered as organisations with
a weak market share in the high growing market.
Options:

Correct Option/Answer: (a) Statement I is correct, but statement II
is incorrect
Explanation: The first statement is correct as the cash cows under
the BCG Matrix are treated and known as former stars in the
growing market. Statement two is incorrect as the dogs under the
BCG Matrix are considered as organisations with a weak market
share in a weak growing market. Therefore, option (a) is the correct
answer.

Which of the following options correctly expands the acronym
“PESTEL”?
Options:
(a) Political, Ecological, Security, Technological, Environmental and Legal
(b) Political, Ecological, Social, Technological, Environmental and Legal
(c) Political, Economic, Social, Technological, Environmental and Legal
(d) Political, Economic, Security, Technological, Environmental and Legal

Correct Option/Answer: (c) Political, Economic, Social,
Technological, Environmental and Legal
Explanation: PESTEL Analysis is an external analysis under strategy
analysis that is used to scan the external environment or the macro-
environmental factors. The acronym PESTLE states Political,
Economic, Social, Technological, Environmental and Legal
Environment.

Which of the following concepts of marketing focuses on capturing
the growth by customer share and loyalty?
Options:
(a) Production Concept
(b) Product Concept
(c) Customer Concept
(d) Societal Marketing Concept

Correct Option/Answer: (c) Customer Concept
Explanation: The customer concept of marketing focuses on the fact
that market share can be captured by gaining the loyalty of the
customers; this can be done by treating them appropriately and
providing them with after-sales service.

Statement 1: Segmenting the market on the basis of people’s behaviour is known
as behavioural segmentation. It can be on the basis of user status, usage rate, and
loyalty status.
Statement 2: The market segmentation should be complex and highly segmented
such that the target audience is identified properly.
Codes:
(a) Both statements are correct
(b) Only statement 1 is correct
(c) Only statement 2 is correct

Correct Option/Answer: (b) Only statement 1 is correct
Explanation: The first statement is correct as segmenting the market
on the basis of people’s behaviour is known as behavioural
segmentation. It can be on the basis of user status, usage rate, and
loyalty status. The second statement is incorrect as the market
segmentation should be easily accessible and servable. It should be
compatible and not complex.

Assertion (A):New products are being manufactured and introduced
when the product reaches the stage of maturity.
Reason (R): Maturity is the stage at which the demand exceeds the
supply.
Codes:

Explanation:
Maturity is the stage at which the supply exceeds the demand.
Therefore, the assertion is correct but reason is incorrect and option
(d) is the correct answer.

Assertion (A): Luxury products are sold to customers under a
skimming pricing policy.
Reason (R): In the beginning, the products are sold at a higher price
to people with high status and later the middle- income group is
targeted.
Codes:

Explanation: Luxury products are sold to customers with the
skimming pricing policy. The products are sold at a higher price in
the beginning for the people with a high status; later, the middle
income group is targeted.
Therefore, both assertion and reason are correct and the reason
explains the assertion correctly.

Which among the following is/are the tool(s) of sales promotion?
1. Samples
2. Frequency programs
3. Prizes
4. Personal selling
5. Advertisement banners
Options:
(a) 2, 3 and 4
(b) 1, 2 and 5
(c) 1, 2 and 3
(d) 3, 4 and 5

Correct Option/Answer: (c) 1, 2 and 3
Explanation: The tools of sales promotion include the following:
1. Samples
2. Refunds
3. Price Packs
4. Premium
5. Frequency Programs
6. Prizes
7. Patronage Awards
8. Free Trails
9. Product Warranties
10. Tie-in Promotions
11. Cross Promotion
12. Demonstrations

Which of the following state(s) the factor(s)that influence consumer behaviour?
1. Cultural Factors
2. Social Factors
3. Personal Factors
4. Legal Factors
Options:
(a)3 and 4
(b)1, 2 and 4
(c)1, 2, 3 and 4
(d) 1, 2 and 3

Correct Option/Answer: (d) 1, 2 and 3
Explanation: The factors influencing consumer behaviour include the
following:
1. Cultural Factors
2. Social Factors
3. Personal Factors
4. Psychological Factors

Statement I: Professor Francesco M Nicosia developed the Nicosia Model of
consumer behaviour in 1966.
Statement II: The model is divided into four major fields, namely the firm’s and
customer’s attribute, search and evaluation, the act of purchase and the feedback
of the sales results.
Options:

Correct Option/Answer: (c) Both statements are correct
Explanation: Both the statements are correct as Professor Francesco
M Nicosia developed the Nicosia Model of consumer behaviour in
1966. The model is divided into four major fields, namely the firm’s
and customer’s attribute, search and evaluation, the act of purchase
and the feedback of sales results.

Which among the following levels of Keller’s Brand Equity Model
signifies, “Who are you”?
Options:
(a) Brand Identity
(b) Brand Meaning
(c) Brand Resonance
(d) Brand Response

Correct Option/Answer: (a) Brand Identity
Explanation: The model of Keller’s Brand Equity has four levels in
order to understand the brand.
The four levels of Keller’ Brand Equity Model are as follows:
1. Brand Identity signifies “Who are you?”
2. Brand Meaning signifies “What are you?”
3. Brand Response signifies “What about you?”
4. Brand Resonance

Statement I: Production, inventory, price, transportation and information are the
five drivers of supply chain management.
Statement II: The efficient supply chain helps in boosting the customer service to
have a strong position in the market.
Options:

is incorrect
Explanation: The first statement is incorrect as production,
inventory, location, transportation and information are the five
drivers of supply chain management.
The second statement is correct as an efficient supply chain helps in
boosting the customer service to have a strong position in the
market.

Which among the following includes the introduction of new
flavours, colours or packaged sizes?
Options:
(a) Multi Branding
(b) Co-branding
(c) Brand Extension
(d) Line Extension

Correct Option/Answer: (d) Line Extension
Explanation: The brand strategy decision can take place by line
extension, brand extension, multi-brand and co-branding.
Introducing new flavours, colours or packaged sizes of the products
that already exist in the market is included in line extension.

Assertion (A):Educating can be a marketing strategy of service firms as providing
knowledge and educating about the offered services is important.
Reason (R): The demonstration strategies can be in the form of seminars,
webinars or lunch meetings.
Codes:

Correct Option/Answer:(d) (A) is correct, but (R) is incorrect
Explanation: The assertion is correct but the reason is incorrect as
educating can be a marketing strategy of the service firms as
providing knowledge and education about the offered services is
important. The education of marketing strategies can be in the form
of seminars, webinars or lunch meetings.

Assertion (A): The focus of the company is to build a strong relationship with
every customer as this would help them in increasing their sales.
Reason (R): Offering loyalty points, special discounts, connecting the customers
through social networking sites are examples of different strategies that are used
for building customer relationships.
Codes:

Explanation: The focus of the company is to build a strong relationship with every
customer as this would help them in increasing their sales. Offering loyalty points,
special discounts, connecting the customers through social networking sites are
examples of different strategies that are used for building customer relationships.
Therefore, both assertion and reason are correct and option (a) is the correct
answer.

Statement I: A speciality store is a type of retail outlet with a narrow product line
and deep assortments.
Statement II: Supermarket is a type of retail outlet in which the products are
large, low cost and have a low margin and a high volume.
Codes:

Correct Option/Answer:(c) Both statements are correct
Explanation: Both statements are correct as the speciality store is a
type of retail outlet with a narrow product line and deep
assortments. The supermarket is a type of retail outlet in which the
products are large, low cost and have a low margin and a high
volume.

What is the correct full form of COBRA?
Options:
(a) Consumers Online Brand Related Adventure
(b) Consumer’s Offline Brand Related Activities
(c) Consumer’s Online and Bearer Related Activities
(d) Consumers Online Brand Related Activities

Correct Option/Answer: (d)Consumers Online Brand Related
Activities
Explanation: Consumers Online Brand Related Activities is the
correct full form of COBRA. It is a method that is used by the
advertisers in order to promote the product.

Match the following:
Codes:
A B C D
(a) 4 1 2 3
(b) 3 1 2 4
(c) 1 3 2 4
(d) 2 1 3 4
List 1 List-2
Longer Payment Terms Providing free of cost services
Warranties and Discounts Stretching loans for a longer period.
Special Event Pricing Offering special prices in special seasons to attract customers
Psychological Discounting Setting a high artificial price and then offering discounts

Correct Option/Answer: (d) A-2, B-1, C-3, D-4
Longer payment terms mean stretching loans for a longer period in order to lower
the monthly instalments. Warranties and discounts mean providing free of cost
services. Special event pricing is a type of pricing under which special prices are
offered in special seasons to attract customers. Psychological discounting includes
setting a high artificial price and then offering discounts.
List 1 List-2
A. Longer Payment Terms 2. Stretching loans for a longer period
B. Warranties and Discounts 1. Providing free of cost services
C. Special Event Pricing 3. Offering special prices in special seasons to
attract customers
D. Psychological Discounting 4. Setting a high artificial price and then
offering discounts

Which among the following options is incorrect for primary data?
Options:
(a) Questionnaires is an example
(b) Original data
(c) Cost of data collection is high
(d) Saves time

Correct Option/Answer: (d) Saves time
Explanation: Primary data can be understood as original data that
has a high cost of data collection. It is time consuming and involves
a huge collection cost. A questionnaire is an example of primary
data. The data collected is reliable as well as creditable. Controlling
the quality of data is in their hands.

Calculate the arithmetic mean of the data given below.
(a) 325.52
(b) 350.54
(c) 343.33
(d) 320.45
Class Interval X F
50-150 100 4
150-250 200 6
250-350 300 3
350-450 400 7
450-550 500 10

Correct Option/Answer: (c) 343.33
Mean = Sigma Xf/ Sigma f
Mean = 10,300/30
Mean = 343.33
Class Interval X F Xf
50-150 100 4 400
150-250 200 6 1200
250-350 300 3 900
350-450 400 7 2800
450-550 500 10 5000
TOTAL 10,300

Which among the following is the correct formula for testing a
sample by the Chi-square test?
Options:
A. Summation of (E-O)2/ E
B. Summation of (O-E)2/ O
C. Summation of (E-O)2/ O
D. Summation of (O-E)2/ E

Correct Option/Answer: (d) Summation of (O-E)2/ E
Explanation:
The formula to test a sample by the Chi-square test is as follows:
Summation of (O-E)2/ E
Where, O stands for observed frequency and E stands for expected
frequency. It is used in calculating the goodness of fit.

Statement I: The numbers of trials under binomial distribution are independent of
each other.
Statement II: The probability of success is determined by p, while the probability
of failure is determined by (1-p).
Options:

Explanation: Both statements are correct as the numbers of trials
under binomial distribution are independent of each other. The
probability of success is determined by p, while the probability of
failure is determined by q = (1-p).

Which of the following comprises non-probability sampling?
1. Quota Sampling
2. Snowball Sampling
3. Cluster Sampling
4. Convenience Sampling
Options:
(a) 2 and 4
(b)1 and 4
(c) 1, 3 and 4
(d) 1, 2 and 4

Correct Option/Answer: (d) 1, 2 and 4
Explanation: The non-probability sampling technique comprises of the following:
1. Convenience Sampling
2. Judgement Sampling
3. Quota Sampling
4. Snowball Sampling
Probability sampling techniques consists of the following:
1. Simple Random Sampling
2. Stratified Sampling
3. Cluster Sampling
4. Systematic Sampling
5. Multistage Sampling

Which of the following modules of ERP handles the methods and
procedures of collecting raw material?
Options:
A. Sales and Marketing
B. Purchase
C. Human Resource
D. Inventory

Correct Option/Answer: (b) Purchase
Explanation: Under Enterprise Resource Planning, the purchase
module handles all the methods and procedures that are related to
the process of collecting raw materials or items in the organisation.
The ERP Modules include supply chain management, sales and
marketing, purchase, human resource, inventory and finance and
accounting.

Statement I: Under group layout, team attitude and job
enlargement tend to occur.
Statement II: Under process layout, specialised supervision is not
possible.
Options:

Correct Option/Answer: (b) Statement I is correct, but statement II
is incorrect
Explanation: Statement one is correct as under group layout, team
attitude and job enlargement tend to occur. Statement two is
incorrect as under process layout, specialised supervision is possible.

Assertion (A): SOT helps in delay delivery and the generation of cash.
Reason (R): Liquidity is maintained under SOT as cash might stick at jobs that are
long and do not generate cash.
Codes:

Correct Option/Answer: (c) (A) is incorrect, but (R) is correct
Explanation: Assertion is incorrect as the Shortest Operation in Time
(SOT) helps in quick delivery and generation of cash as liquidity is
maintained under SOT considering the cash might stick at jobs that
are long and do not generate cash. Therefore, the reason is correct
but the assertion is incorrect.

Statement I: International business provides the potential for growth in foreign
countries that helps in attaining higher profits.
Statement II: International business helps in removing the constraints of the
domestic market.
Options:

Explanation: Both statements are correct as an international
business provides the potential for growth in foreign countries,
which helps in attaining higher profits. International business helps
in removing the constraints of the domestic market.

Which among the following state(s) are the advantages of
international business?
Options:
(a) Benefit to consumers
(b) Over specialisation
(c) Both (a) and (b)
(d) Can lead to starvation

Correct Option/Answer: (a) Benefit to consumers
Explanation: The advantages of international business include the
following:
1. Import of goods which the country is not able to produce
2. Maximum utilisation of resources
3. Benefit to consumers
4. Trade fluctuations are removed
5. International trade brings goodwill and peace among nations
6. Surplus produce is utilised

Who among the following developed the theory of factor
endowment?
Options:
(a) Raymond Vernon
(b) Heckscher-Ohlin
(c) David Ricardo
(d) Adam Smith

Correct Option/Answer: (b) Heckscher-Ohlin
Explanation: The international trade theory of factor endowment is
developed by Heckscher-Ohlin, the product life cycle theory was
developed by Raymond Vernon. The theory of comparative cost is
given by David Ricardo. The theory of absolute advantage is given by
Adam Smith.

Which among the following is/are the type(s) of foreign investment?
Options:
(a) FDI
(b) FPI
(c) FII
(d) All of the above

Correct Option/Answer: (d) All of the above
Explanation: The types of foreign investment are as follows:
1. Foreign Direct Investment (FDI)
2. Foreign Portfolio Investment (FPI)
3. Foreign Institutional Investment (FII)

What is meant by foreign direct investment FDI?
A foreign direct investment (FDI) is an investment made by a firm or individual in
one country into business interests located in another country.
Generally, FDI takes place when an investor establishes foreign business
operations or acquires foreign business assets in a foreign company.
A foreign direct investment is an investment in the form of a controlling ownership
in a business in one country by an entity based in another country. It is thus
distinguished from a foreign portfolio investment by a notion of direct control.

What is a foreign portfolio investment?
Foreign portfolio investment (FPI) consists of securities and other financial assets
held by investors in another country. It does not provide the investor with direct
ownership of a company's assets and is relatively liquid depending on the volatility
of the market.
A foreign portfolio investment is a grouping of assets such as stocks, bonds, and
cash equivalents. Portfolio investments are held directly by an investor or
managed by financial professionals.

What is FDI FII?
It can come in two forms: foreign direct investment (FDI) and foreign institutional
investment (FII). Foreign direct investment involves in direct production activities
and is also of a medium- to long-term nature. But foreign institutional investment
is a short-term investment, mostly in the financial markets.
A foreign institutional investor (FII) is an investor or investment fund investing in
a country outside of the one in which it is registered or headquartered. The term
foreign institutional investor is probably most commonly used in India, where it
refers to outside entities investing in the nation's financial markets.

Foreign Portfolio Investment (FPI) is similar to FDI in a way that this is also direct
investment but investment in only financial assets such as stocks, bonds etc. of a
company located in another country. ... Foreign Institutional Investor (FII) is an
investor of group of investors who bring FPIs.

Which among the following state(s) the feature(s) of MIS?
Options:
(a) Manages Data
(b) Operation Control
(c) Structural Decisions
(d) All of the above

Correct Option/Answer: (d) All of the above
Explanation: The features of Management Information System (MIS) are as
follows:
1. Summary Information
2. Operation Control
3. Focus on Internal Information
4. Manages Data
5. Structural Decision

Which among the following documents under import documentation is
prepared by the importer in the prescribed form under the Bill of Entry
Regulations, 1971?
Options:
(a) Certificate of Measurement
(b) Freight Declaration
(c) Transport Documentation
(d) Bill of Entry

Correct Option/Answer: (d) Bill of Entry
Explanation: Bill of entry is a document that is prepared by a clearing agent or an
importer in the form prescribed under the Bill of Entry Regulation, 1971. The
import duty is paid by the importer and such details are provided in the
document. Therefore, option (d) is correct.

Statement I: Export Promotion Capital Good (EPCG), Duty Entitlement Passbook
Scheme (DEPB), Market Development Assistance (MDA) are incentives and
schemes for exports.
Statement II: Companies that have exports up to Rs 40 crore are eligible for MDA
assistance.
Options:

Correct Option/Answer: (a) Statement I is correct, but statement II is incorrect
Explanation: Statement one is correct as Export Promotion Capital Good (EPCG),
Duty Entitlement Passbook Scheme (DEPB), and Market Development Assistance
(MDA) are incentives and schemes for exports. Statement two is incorrect as
companies that have exports up to Rs 30 crore are eligible for MDA assistance.

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods
including spares for pre production, production and post production at zero duty
subject to an export obligation of 6 times of duty saved on capital goods imported
under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue.
DEPB (Duty Entitlement Pass Book ) is an export incentive scheme of Indian
Government provided to Exporters in India. Duty Entitlement Pass Book Scheme
(DEPB) is an export incentive scheme. The objective of DEPB is to neutralise the
incidence of Customs duty on the import content of the export product.

What is market development assistance scheme?
A Market Development Assistance Scheme is currently operated by the Ministry
of Commerce with a view to encourage exporters (including MSME exporters) to
access and develop overseas markets. The scheme offers funding for participation
in international fairs, study tours abroad, trade delegations, publicity, etc.

Assertion (A): IMF has an objective that it shorter the duration and controls the
disequilibrium in BOP.
Reason (R): The exchange stability is promoted and international monetary
cooperation is promoted.
Codes:
(c) Both (A) and (R) are incorrect

Correct Option/Answer:
Explanation: Both assertion and reason are correct but reason doesn’t explain the
assertion as the two statements given above are the objectives of IMF. IMF has
the objective that it shorter the duration and controls the disequilibrium in BOP.
The exchange stability is promoted and international monetary cooperation is
promoted.

Assertion (A): DSS enhances the procedure of making decisions at the enterprise
and managerial level.
Reason (R): Decisions are of two types, namely programmable and non-
programmable. The programmable decisions are computerised while the non-
programmable decisions are predetermined.
Codes:

Explanation: DSS enhances the procedure of making decisions at the enterprise
and managerial level. The decisions are of two types, namely programmable and
non-programmable. The programmable decisions are computerised while the
non-programmable decisions are not predetermined.
Therefore, option (d) is the correct answer.

Which of the following types of entrepreneurs are not open to change or
creativity?
Options:
(a) Drone entrepreneur
(b) Fabian entrepreneur
(c) Induced entrepreneur
(d) Cognitive entrepreneur

Correct Option/Answer: (a)Drone entrepreneur
Explanation: The word entrepreneur is derived from a French word that means “to
undertake.” Drone entrepreneurs are people who are not open to creativity or
change. Such people are not very successful as they continue following traditional
methods.

Assertion (A): The theory of model personality is developed byCocharn and is a
social theory of supply of entrepreneurs.
Reason (R): Emphasis is placed on role expectation, cultural values and social
sanctions.
Codes:

Correct Option/Answer: (a) (A) and (R) are correct and (R) is the correct
explanation of (A)
Explanation: The theory of model personality is developed by Cocharnand is a
social theory of supply of entrepreneurs. Emphasis is placed on role expectation,
cultural values and social sanctions.
Therefore, both assertion and reason are correct and the reason correctly explains
the assertion.

Assertion (A): The person that has a clear vision and is action-oriented is known
as an intrapreneur.
Reason (R): The intrapreneurial grid developed by Pinchot states that a person
with high action and low vision is an ideal generator but a person with high action
and high vision is intrapreneur.
Codes:

Correct Option/Answer: (d) (A) is correct, but (R) is
incorrect
Explanation: The assertion is correct because the person who is action- oriented
and has a high vision is known as an intrapreneur. The reason is incorrect as the
intrapreneurial grid developed by Pinchot states that a person with high action
and low vision is a valuable worker but a person with high action and high vision is
an intrapreneur. Therefore, option (d) is the correct answer.

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