FM Test No.5 Q.

4 The grapevine is
valuable as a barometer of
Q.1 Who has analyzed public opinion in the
leadership in terms of circular organization is said by:
response? A. Barnard
A. C.I. Barnard B. Simon *
B. Mooney C. Norbert Weiner
C. M.P. Follett* D. Keith Davis
D. Millet
Q.5 Which type of
Q.2 Political responsiveness communication is called as
quality of leadership was publics relations?
highlighted by : A. Across communication
A. Terry B. Inter-personal
B. Barnard communication
C. Appleby* C. Internal communication
D. Millet D. External communication*

Q.3 Communication is defined Q.6 The first administrative

as shared understanding of a theorist who gave a
shared purpose by: meaningful solution to the
A. Millet* problem of communication is:
B. Tead A. Barnard
C. Barnard B. Taylor
D. Simon C. Simon
D. Fayol*

1
 B. Barnard
Q.7 Who among the following C. Simon*
developed the most widely D. Weiner
used model of communication
process: Q.10 The first theorist who
A. Barnard developed communication as
B. Simon a significant aspect of
C. Norbert Weiner organizational behavior is:
D. Shannon and Weaver* A. Fayol
B. Simon
Q.8 Who among the following C. Norbert Wiener
contributed to the growth of D. Barnard*
contemporary approach to
communication? Q.11 According to Herzberg,
A. Barnard the most important Hygiene
B. Fayol factor is :
C. Simon A. Company policy and
D. Weiner * administration.
B. Achievement
Q.9 Who views C. Salary *
communication as a process D. Working conditions
whereby decisional premises
are transmitted from one Q.12 Who of the following
member of an organization to stated that Simon has not
another? recognized the role of
A. Fayol

2
intuition, tradition and faith in 1) Victor Vroom
decision making? 2) Herald Kelly
A. Norton E Long 3) McGregor
B. Charles Lindblom 4) Porter-Lawler
C. Yehezkel Dror A. 1, 2, 3 and 4
D. Chris Argyris * B. 1, 2 and 3
C. 1, 2 and 4 *
Q.13 Which of the following D. 2 and 4
are correct regarding
Herzbergs Hygiene factors? Q.15 Arrange Mastows Need
1) They are external to the Hierarchy in descending
job. order:
2) They reflect the Adam 1. Social
nature of man. 2. Self-Actualization
3) They are related to the job 3. Physiological
content. 4. Ego
4) They improve the 5. Security
performance of individuals. A. 3, 5, 1, 4, 2
A. 1 and 2* B. 3, 5, 1, 2, 4
B. 1, 3 and 4 C. 2, 4, 1, 3, 5
C. 1 and 3 D. 2, 4, 1, 5, 3 *
D. 1, 2 and 3
Q.16 The central principle
Q.14 The process theories of which derives from
motivation includes the McGregors Theory Y is :
models of A. Direction and control

3
B. Coordination 1) It is based on
C. Scalar principle psychoanalysis.
D. Integration * 2) It is the first theory of
motivation.
Q.17 Which of the following 3) It was published in 1942.
are true about Herzbergs 4) It is not based on the idea
motivators? of prepotency of needs.
1. They are related to the job A. 1, 2 and 4
content. B. 1, 2 and 3
2. Their presence leads to C. 2, 3 and 4
satisfaction. D. Only 1*
3. Their absence leads to
dissatisfaction. Q.19 The first major exponent
4. They reflect the Abraham of the traditional or classical
nature of man. theory of motivation is:
5. They reflect the Adam A. Maslow
nature of man. B. Fayol
A. 1, 2, 3 and 4 C. Taylor *
B. 1, 2, 3 and 5 D. McGregor
C. 1, 2 and 5
D. 1, 2 and 4 * Q.20 According to Maslow:
1. Human needs are always
Q. 18 Which of the following is conscious.
/ are true about Maslows 2. Social and esteem needs
theory? are of higher order.

4
3. A satisfied need does not 1) Average human being
motivate. dislikes work and will try to
4. Man is a perpetually avoid it.
wanting animal. 2) Most people must be
A. 1, 2 and 4 coerced, controlled, directed,
B. 2, 3 and 4 and so on.
C. 1, 3 and 4 3) Commitment to objectives
D. 3 and 4 * is a function of the rewards
associated with their
Q.21 Which of the following achievement.
according to Herzberg, are not 4) Average human beings
the motivators ? avoid responsibility and want
1) Responsibility security.
2) Recognition. A. 1, 2, 3 and 4
3) Interpersonal relations B. 1, 2 and 4 *
4) Work itself C. 1, 3 and 4
5) Working conditions D. 1 and 2
A. 1, 2 and 4
B. 1, 2 and 3 Q.23 Arrange the following
C. 3 and 5 * theories of motivation in a
D. 2, 4 and 5 chronological order:
1) Expectancy theory
Q.22 Which of the following 2) ERG Theory
statements are true about the 3) Theory X and Theory Y
assumptions of Theory X: 4) Maturity immaturity
Theory

5
5) Equity Theory C. Logical positivism *
A. 3, 2, 1, 4, 5 D. Satisfying
B. 3, 4, 5, 1, 2
C. 4, 3, 1, 5, 2* Q.26 Who of the following
D. 4, 1, 3, 5, 2 characterized the theories of
Herzberg and Maslow as
Q.24 According to Barnard, Major Wrong theories?
which of the following are the A. Wabha and Birdwell
main functions of leadership? B. Bass and Barret
1) The control of the C. Donald P Schwab
instrumentality of action. D. Michael Nash *
2) The determination of
objectives. Q.27 The trait Theory of
3) The stimulation of leadership was advocated by:
coordinated action 1) Millet
4) The manipulation of means 2) Barnard
A. 2 and 3 3) Likert
B. 1 and 3 4) Follett
C. 2 and 4 5) Ordway Tead
D. 1, 2, 3 and 4* 6) Terry
A. 1, 2, 5, and 6 *
Q.25 Simon proposed a new B. 2, 3, 4 and 6
concept of administration C. 1, 2, 4 and 5
based on the methodology of: D. 1, 2 and 4
A. Decision making
B. Bounded rationality

6
Q.28 Which of the following is 3. They imply Abraham nature
the first systematic study on of man.
leadership? 4. They serve as a take-off
A. Michigan University point for motivation
Leadership Studies 5. They imply Adama nature
B. Managerial Grid of man
C. Ohio State University A. 1, 2, 4 and 5*
Leadership Studies B. 1, 2, 3 and 4
D. Iowa University Leadership C. 1, 2 and 5
Studies* D. 1, 2 and 3

Q.29 The contingency model Q.31 According to the

of leadership effectiveness Contingency Model of
was propounded in: leadership effectiveness, the
A. 1964 effectiveness of the leader is
B. 1973 contingent upon which of the
C. 1967* following factors?
D. 1968 1. Characteristics of the
subordinates.
Q.30 Which of the following 2. The task structure
are true about Herzbergs 3. The leader member
Hygiene factors? relations
1. They prevent dissatisfaction 4. Environmental pressures
2. They are related to job 5. The leaders position power
context. A. 1, 2 and 5
B. 2, 3, and 4

7
C. 3, 4 and 5 Assertion: Leadership is
D. 2, 3 and 5* indispensable for the
successful functioning of an
Q.32 Which one of the organization.
following pairs is not correctly Reason: It is the ultimate act
matched? which brings to success all the
A. Herzberg - Job potential that is in an
enrichment organization and its people.
B. McGregor Scanlon plan A. Both Assertion (A) and
C.Alderfer Critical Incident Reason (R) are true and R is
Method * the correct explanation of A. *
D. Maslow- Psychoanalysis B. Both Assertion (A) and
Reason (R) are true but R is
Q.33 Which of the following not the correct explanation of
theories of leadership is based A.
on Expectancy Theory C. Assertion is true and
motivation? Reason is false.
A. Three Dimensional Model D. Assertion is false and
B. Life Cycle Model Reason is true.
C. Path Goal Model *
D. Decision Participation Q.35 Answer the following
Model questions by using the codes
given below.
Q.34 Answer the following Assertion: According to
questions by using the codes Herzberg, the opposite of job
given below. satisfaction is not job

8
dissatisfaction, but rather no Reason: He advocated the
job satisfaction. concept of job enlargement.
Reason: He found that the A. Both Assertion (A) and
factors involved in producing Reason (R) are true and R is
job satisfaction are separate the correct explanation of A.
and distinct from the factors B. Both Assertion (A) and
that lead to job Reason (R) are true but R is
dissatisfaction. not the correct explanation of
A. Both Assertion (A) and A.
Reason (R) are true and R is C. Assertion is true and
the correct explanation of A. * Reason is false.*
B. Both Assertion (A) and D. Assertion is false and
Reason (R) are true but R is Reason is true.
not the correct explanation of
A. Q.37 Answer the following
C. Assertion is true and questions by using the codes
Reason is false. given below.
D. Assertion is false and
Reason is true. Assertion: Communication is
the passing of information in
Q.36 Answer the following the organization.
questions by using the codes
given below. Reason: Communication is the
Assertion: Herzbergs bloodstream of every
contribution to work organization.
motivation is substantial.

9
A. Both Assertion (A) and A. Both Assertion (A) and
Reason (R) are true and R is Reason (R) are true and R is
the correct explanation of A. the correct explanation of A.
B. Both Assertion (A) and B. Both Assertion (A) and
Reason (R) are true but R is Reason (R) are true but R is
not the correct explanation of not the correct explanation of
A. A.
C. Assertion is true and C. Assertion is true and
Reason is false. Reason is false.*
D. Assertion is false and D. Assertion is false and
Reason is true.* Reason is true.

Q.38 Answer the following

questions by using the codes Q.39 Answer the following
given below. questions by using the codes
given below.
Assertion: The set of
assumptions of the Theory X Assertion: According to
are diametrically opposite to Herzberg, the hygiene factors
those of Theory Y. prevent dissatisfaction.

Reason: Theory X represents Reason: They are associated

the behavioral approach to with the job context.
management, while Thoery Y
represents classical approach.

10
A. Both Assertion (A) and A. Both Assertion (A) and
Reason (R) are true and R is Reason (R) are true and R is
the correct explanation of A.* the correct explanation of A.*
B. Both Assertion (A) and B. Both Assertion (A) and
Reason (R) are true but R is Reason (R) are true but R is
not the correct explanation of not the correct explanation of
A. A.
C. Assertion is true and C. Assertion is true and
Reason is false. Reason is false.
D. Assertion is false and D. Assertion is false and
Reason is true. Reason is true.

Q.40 Answer the following Q.41 Answer the following

questions by using the codes questions by using the codes
given below. given below.
Assertion: C I Barnard does
not emphasize on the Assertion: Maslows Need
intellectual capacity of a Hierarchy is the first
leader. systematic conceptual model
of human motivation.
Reason: He believes that it
hinders responsibility and Reason: He explained that
decisiveness in the leaser. human needs influence
human behavior.

11
A. Both Assertion (A) and A. Both Assertion (A) and
Reason (R) are true and R is Reason (R) are true and R is
the correct explanation of A. the correct explanation of A.*
B. Both Assertion (A) and B. Both Assertion (A) and
Reason (R) are true but R is Reason (R) are true but R is
not the correct explanation of not the correct explanation of
A.* A.
C. Assertion is true and C. Assertion is true and
Reason is false. Reason is false.
D. Assertion is false and D. Assertion is false and
Reason is true. Reason is true.

Q.42 Answer the following Q.43 Answer the following

questions by using the codes questions by using the codes
given below. given below.

Assertion: The terms leader Assertion: Management

and manager are not Information System (MIS)
necessarily inter-changeable. assists the managers in
problem solving decision-
Reason: A leader is not making and strategic
necessarily required to planning.
perform all the functions of a
manager. Reasons: The MIS involves
generating, processing and
transmitting information.

12
 Reason: The underlying aim of
A. Both Assertion (A) and communication is a meeting
Reason (R) are true and R is of minds on common issues.
the correct explanation of A.*
B. Both Assertion (A) and A. Both Assertion (A) and
Reason (R) are true but R is Reason (R) are true and R is
not the correct explanation of the correct explanation of A.*
A. B. Both Assertion (A) and
C. Assertion is true and Reason (R) are true but R is
Reason is false. not the correct explanation of
D. Assertion is false and A.
Reason is true. C. Assertion is true and
Reason is false.
D. Assertion is false and
Q.44 Answer the following Reason is true.
questions by using the codes
given below. Q.45 Answer the following
questions by using the codes
Assertion: The term given below.
communication has a wider
connotation than imparting Assertion: According to
knowledge or transmitting Herbert A. Simon, without
information. communication there can be
no organization.

13
Reason: He views
communication as a process Reason: To Simon, the
whereby decisional premises grapevine is built around
are transmitted from one social relationships of the
member of an organization to members of the organization.
another.
A. Both Assertion (A) and
A. Both Assertion (A) and Reason (R) are true and R is
Reason (R) are true and R is the correct explanation of A.
the correct explanation of A.* B. Both Assertion (A) and
B. Both Assertion (A) and Reason (R) are true but R is
Reason (R) are true but R is not the correct explanation of
not the correct explanation of A.
A. C. Assertion is true and
C. Assertion is true and Reason is false.
Reason is false. D. Assertion is false and
D. Assertion is false and Reason is true.*
Reason is true.

47) Match the Pairs.

Q. 46 Answer the following List I
questions by using the codes a. Three Dimensional Model
given below. of Leadership
Assertion: Unlike Barnard, b. ERG Model of Motivation
Simon places emphasis on c. Contingency Theory of
grapevine. Leadership

14
d. Bounded Rationality B. a4 b5 c1 d2
Model of Decision Making C. a3 b4 c1 d2*
List II D. a3 b4 c2 d1
1. Alderer
2. Simon Q.49 Match the Pairs.
3. Reddins List I
4. Fiedler a. Alderfer
b. Maslow
A. a4 b3 c1 d2 c. Herzberg
B. a3 b4 c2 d1 d. McGregor
C. a3 b1 c4 d2* List II
D. a1 b3 c2 d4 1. Job enrichment
2. Job enlargement
Q. 48 Match the Pairs. 3. Theory X and Theory Y
List I 4. ERG Theory
a. Operant Conditioning 5. Hierarchy of Needs
b. Maturity Immaturity
c. Equity Theory A. a2 b3 c1 d4
d. Theory Z B. a3 b2 c4 d5
List II C. a4 b5 c2 d3
1. Stacy Adams D. a4 b5 c1 d3*
2. William Ouchi
3. Skinner Q.50 Match the Pairs.
4. Argyris List- I
5. Edwin Locke a. Management by
A. a4 b2 c3 d5 objectives

15
b. Expectancy or VIE 2. Seeing things only as
Theory dichotomies
c. Achievement motive 3. Expectation determine
d. Performance communication content
Satisfaction Theory 4. Refusing additional
List II information.
1. Victor Vroom
2. McClelland A. a3 b2 c4 d1
3. Porter Lawler B. a4 b2 c3 d1
4. Herald Kelley C. a2 b4 c1 d3*
5. Peter Drucker D. a3 b4 c1 d2
A. a4 b2 c3 d1
B. a4 b1 c2 d3 Q. 52 Match the Pairs.
C. a5 b1 c2 d3* List I
D. a5 b2 c3 d1 a. Barnard
c. Weiner
Q. 51 Match the Pairs. c. Rodolf Flesh
List- I d. Simon
a. Halo Effect
b. Dogmatism List II
c. Filtering 1. All official
d. Stereotyping communications develop a
List - II curiously legalistic ring,
1. Manipulation of humorously called
information Gobbledygook language.

16
2. Informal communication 3. Gangplank
system in built around social 4. Noise
relationship of the members A. a3 b4 c2 d1
of the organization. B. a3 b1 c4 d2*
3. Communication C. a3 b2 c4 d1
techniques shape the form D. a3 b4 c1 d2
and the internal economy of
organization. Q. 54 Match the Pairs.
4. Entropy is a measure of List I
the tendency of a system to a. The underlying aim of
disintegrate and information is communication is a meeting
an antidote to it. of minds on common issues.
A. a2 b4 c3 d1 b. Communication is the
B. a2 b4 c1 d3 blood stream of an
C. a3 b4 c2 d1 administrative organization.
D. a3 b4 c1 d2* c. A communication that
cannot be understood can
Q.53 Match the Pairs. have no authority
List I d. Communication is the
a. Fayol heart of management.
b. Simon List II
c. Shannon 1. Barnard
d. Weiner 2. Pififfner
List II 3. Tead
1. Grapevine 4. Millet
2. Cybernetics 5. Simon

17
A. a4 b3 c5 d2 a. Mooney
B. a2 b4 c3 d5 b. Millet
C. a3 b4 c1 d2 * c. Follett
D. a3 b2 c4 d1 d. Katz and Khan
List II
Q. 55 Match the Pairs. 1. The essential
List I circumstances of leadership
a. Continuum of Leadership are political and institutional.
Styles 2. Leadership is the form
b. Three- Dimensional that authority assumes when
Model of Leadership it enters into process.
c. Managerial Grid 3. Leadership goes
d. Decision Participation beyond routine and taps
Model of Leadership bases of power beyond those
List : II that are organizationally
1. Philip Yetton decreed.
2. Tannenbaum 4. We now think of the
3. W. Reddin leader as being influenced by
4. Blake his group.
5. Kurt Lewin A. a2 b1 c4 d3*
A. a3 b1 c2 d5 B. a2 b4 c3 d1
B. a5 b3 c1 d4 C. a4 b3 c1 d2
C. a2 b4 c1 d5 D. a3 b4 c2 d1
D. a2 b3 c4 d1*
Q. 56 Match the Pairs. Q.57 Match the Pairs.
List- I List I

18
a. Leadership is often made b. March
or broken by circumstance c. Simon
b. A person is born with the d. Barnard
talent for personal List II
leadership : he must learn 1. Organizational and
management leadership. personal decisions
c. We should think not only 2. Generic and unique
of what the leader does to the decisions
group, but also of what the 3. Greshams Law of
group does to the leader. Planning
d. Leadership depends 4. Programmed and non-
upon the individual, the programmed decisions
followers and the conditions. A. a4 b3 c1 d2
List II B. a2 b3 c4 d1*
1. Allen C. a2 b1 c3 d4
2. Follett D. a4 b2 c1 d3
3. Barnard
4. Millet Q.59 Match the Pairs.
A. a2 b3 c1 d4 List I
B. a2 b4 c3 d1 a. What are the
C. a2 b4 c3 d1 alternatives?
D. a4 b1 c2 d3* b. What is the problem?
c. Which alternative is
Q.58 Match the Pairs. best?
List I List II
a. Drucker 1. Choice activity

19
2. Design activity 2. Secklor- Hudson
3. Intelligence activity 3. Barnard
4. Simon
A. a1 b3 c2 A. a4 b3 c2 d1
B. a2 b1 c3 B. a3 b4 c1 d2
C. a3 b2 c1 C. a4 b1 c2 d3
D. a2 b3 c1* D. a3 b1 c4 d2*

Q. 61 Match the Pairs.

List I
Q. 60 Match the Pairs. a. Communication is the
List I blood stream of an
a. The processes of administrative organization.
decision are largely b. Communication
techniques for narrowing techniques shape the form
choice and the internal economy of
b. The optimum rational organization.
choice between alternative c. The grapevine is
courses of action. valuable as a barometer of
c. Selection of one behavior public opinion in the
alternative from two or more organization.
possible alternatives. d. Communication is the
d. Twelve factors or bases heart of management.
of decision making List II (Authors)
List II 1. H.A. Simon
1. Terry 2. Pfiffner

20
3. Millet B. a4 b5 c1 d3*
4. Ordway Tead C. a4 b3 c2 d5
5. C I Barnard. D. a5 b4 c1 d3
A. a3 b5 c1 d4
B. a2 b4 c5 d1 Q. 63 Match the Pairs.
C. a3 b5 c1 d2* List I (Theories of
D. a4 b1 c5 d3 motivation)
a. Goal Setting Theory
Q. 62 Match the Pairs. b. Equity Theory
List-I (Books/Articles) c. Attribution Theory
a. The Science of Muddling d. Theory Z
Through List II (Profounder)
b. Mixed Scanning: A Third 1. Stacy Adams
Approach to Decision 2. William Ouchi and Alfred
making Jaeger
c. Functions of the 3. Edwin Locke
Executive 4. Harold Kelley
d. Models of man 5. Porter and Lawler
A. a4 b1 c3 d5
List II B. a3 b1 c4 d2*
1. C.I. Barnard C. a4 b5 c3 d2
2. Y. Dror D. a3 b4 c1 d5
3. H.A. Simon Q. 64 Match the Pairs.
4. Charles Lindblom List I (Books)
5. Amitai Etzioni a. The practice of
A. a5 b4 c1 d2 Management

21
b. Motivation and d. Impoverished, country
Personality club, task, middle of the road,
c. The Human Side of and team
Enterprise List II
d. Work and the Nature of 1. Life cycle / Situational
man Theory
List II (Authors) 2. Managerial Grid
1. Herzberg 3. Path Goal theory
2. McGregor 4. Contingency Model
3. Drucker 5. Continuum of Leadership
4. Maslow behavior.
5. Alderfer A. a4 b1 c5 d3
A. a3 b1 c2 d5 B. a4 b3 c2 d5
B. a5 b1 c4 d2 C. a3 b5 c1 d2*
C. a5 b2 c3 d4 D. a3 b5 c4 d2
D. a3 b4 c2 d1*
Q. 66 Match the Pairs.
Q. 65 Match the Pairs. List I (Terms)
List-I (Leadership styles) a. Self actualization
a. Directive, supportive, b. Vertical job-loading
participative and achievement c. Achievement motive
oriented. d. Valence, instrumentality
b. Boss centred and and expectancy.
subordinate centred List II (Associated with)
c. Telling, selling, 1. Victor Vroom
participating and delegating 2. Abraham Maslow

22
3. Krut Goldstein
4. McClelland Q. 68. Match the Pairs.
5. Herzberg. List I (Terms)
A. a2 b4 c5 d3 a. Entropy
B. a4 b1 c2 d3 b. Grapevine
C. a3 b5 c4 d1* c. Gobbledygook
D. a3 b5 c2 d1 d. Noise
List II (Associated with)
Q. 67 Match the Pairs. 1. Keith Davis
List I (persons) 2. Shannon and Weaver
a. William Reddin 3. Herbert Simon
b. Hersey and Blandchard 4. Norbert Weiner
c. Victor Vroom and Philip 5. Rudolf Flesch
Yetton A. a2 b3 c4 d2
d. Martin Evans and Robert B. a2 b3 c5 d4
House C. a4 b1 c5 d2*
List II (Associated with) D. a4 b3 c2 d4
1. Keith Davis
2. Shannon and Weaver Q. 69. Match the Pairs.
3. Herbert Simon List-I (Studies / Models)
4. Norbert Weiner a. Michigan University
5. Rudolf Flesch Leadership Studies
A. a3 b1 c4 d2* b. Iowa University
B. a4 b3 c2 d1 Leadership Studies.
C. a4 b2 c5 d3 c. Managerial Grid
D. a3 b1 c4 d5

23
d. Ohio State University D. Stacy Adams: Process
Leadership Studies theory of motivation.
List II (Persons Associated)
1. E.A. Fleishmen, E.F. Q.71 The Ministry of
Harris and H.E. Burtt Corporate Affairs, Government
2. Rensis Likert and his of India, has set up National
associates. Foundation for Corporate
3. Kurt Lewin, Ronald Lippit Governance (NFCG) in
and Ralph White, partnership with which of the
4. Robbert Tannebaum and following organizations?
warren Schmidt. 1. Confederation of Indian
5. Robert Blake and Jane Industry (CII).
Mouton 2. Institute of Company
A. a2 b3 c4 d1 Secretaries of India (ICSI)
B. a3 b4 c2 d5 3. Institute of Chartered
C. a3 b1 c5 d4 Accountants of India (ICAI).
D a2 b3 c5 d1* A. 1, 2
B. 1, 3
Q.70 Which of the following C. 2, 3
pairs is incorrectly matched? D. All*
A. McGregor: Content theory
of motivation. Q.72 The Governing Council of
B. Porter and Lawler: Process NFCG works at the apex level
theory of motivation for policy making. It is chaired
C. Victor Vroom: Content by the
theory of motivation *

24
A. Hon'ble Minister for governance has been
Corporate Affairs, Government highlighted because of the
of India* frequently occurring scams
B. President CII since 1991 due to emergence
C. President ICSI of the concept of
D. President ICAI liberalization. Identify related
Scams.
Q.73 Which of the following 1. Harshad Mehta Scam
organization has defined 2. Ketan Parekh Scam
Corporate Governance as the 3. UTI Scam
system by which business 4. Vanishing Company Scam
corporations are directed and 5. Bhansali Scam
controlled, it means A. 1, 2, 4
according to them it is a B. 1, 3, 4
structure which specifies the C. 2, 3, 5
distribution of rights and D. All*
responsibilities among
different participants in the Q.75 As a result of several
corporations. scams in India a need has
A. OECD* arisen to bring reforms, in
B.IMF response to that, reforms
C. World Bank begun in India in 1991. The
D. UN most important event in the
field of investor protection in
Q.74 In the Indian context, the India was the establishment of
need for corporate Securities and Exchange

25
Board of India (SEBI) in 1992. recommendations of the said
Corporate governance is a committee?
multi-faceted subject. 1. Moving towards
A. 12, April 1992* international norms in income
B. 12, May 1992 recognition and provisioning
C. 12, June 1992 and other related aspects of
D. 12, July 1992 accounting.
2. Liberalization of entry and
Q.76 Which of the following exit norms leading to the
committees are related to establishment of several New
Corporate Governance? Private Sector Banks and
1. Naresh Chandra Committee entry of a number of new
2. Narayana Murthy Foreign Banks
Committee 3. Freeing of deposits and
A. Only 1 lending rates (except the
B. Only 2 saving deposits rate)
C. Both Correct* Allowing Public Sector Banks
D. Both Incorrect access to public equity
markets for raising capital and
Q.77 The Committee on diluting the government stake
Financial System (1991) more 4. Greater transparency and
popularly known as the disclosure standards in
Narasimham Committee financial reporting
prepared blue print of the A. 1, 2, 4
reforms. Which of the B. 1, 3, 4
following are C. 2, 3

26
D. All* Capital Adequacy framework,
known as Basel Capital
Q.78 Today the banks are Accord, with a minimum
governed by the capital adequacy of 8 percent.
1. Banking Regulation Act, A. 1987
1949 B. 1988*
2. Reserve Bank of India Act, C. 1989
1934 D. 1990
3. Foreign Exchange
Management Act, 1999 Q.80 The New Basel Capital
4. Payment and Settlement Accord in April ____, to replace
Systems Act, 2007 the Basel Capital Accord,
A. 1, 2, 4 which re-enforces the need for
B. 1, 3, 4 capital adequacy
C. 2, 3 requirements under the
D. All* current conventions. This
accord is commonly known as
Q.79 The Basel Committee on Basel II and is currently under
Banking Supervision is a finalization.
committee, of banking A. 2001
supervisory authorities, B. 2002
established by the Central C. 2003*
Bank Governors of the G10 D. 2004
developed countries in 1975.
The Committee in ____ Q.81 Which of of the following
introduced the Concept of are recent steps taken by

27
Banks in India for Corporate according to the instrumental
Governance are: approach?
1. Introduction of non A. Peer recognition
executive members on the B. Promotion
Board C. Greater freedom
2. Constitution of various D. Economic reward*
Committees like Management
Committee, Audit Committee, Q.83 Which of the following
Investors Grievances motivators is the most basic
Committee, ALM Committee need in Maslow's hierarchy?
etc. A. Safety
3. Gradual implementation of B. Belonging
prudential norms as C. Physiological*
prescribed by RBI D. Esteem
4. Introduction of Citizens
Charter in Banks Q.84 Which one of the
5. Implementation of Know following is a feature of
Your customer (KYC) concept McGregor's Theory X?
A. 1, 2, 4 A. Workers enjoy
B. 1, 3, 4 responsibility.
C. 2, 3, 5 B. Workers view physical and
D. All* mental effort as a natural part
of work.
Q.82 What are workers C. Workers like to show
primarily motivated by initiative.

28
D. Workers like to be directed. B. Instrumental
* C. Classical
D. Contingency

Q.85 Hygiene factors are

associated with which writer? Q.88 Of what is worker
A. Frederick Hertzberg* autonomy in decision making
B. D.C. McClelland an example?
C. Abraham Maslow A. Worker freedom
D. Douglas McGregor B. Greater worker negotiation
C. Worker empowerment*
Q.86 Of what is individual D. Increased worker power
freedom to schedule work an
example? Q.89 To what does emotional
A. Job design intelligence refers?
B. Job enrichment* A. How people view and
C. Job rate understand the world.
D. Job planning B. How people view and
understand themselves.
C. How people view and
Q.87 What theory is built understand others.
around the principle that D. How people view and
'people make choices understand themselves and
regarding how to behave others. *
based on values and beliefs'?
A. Expectancy*

29
Q.90 How does lateral C. The best outcome for the
communication in an majority of people*
organization occur? D. The least worst outcome
A. Information passes for everybody
upwards.
B. Information passes Q.93 Who was a major
downwards. protagonist of utilitarianism?
C. Information is a two-way A. John Stuart Mill*
process. B. Thomas Hobbes
D. Information passes C. Karl Marx
between different D. Adam Smith
departments and functions. *
Q.94 Individualism as a
Q.91 What is the richest form guiding moral philosophy was
of information? advocated by which
A. Telephone economist?
B. Face-to-face* A. John Kenneth Galbraith
C. E-mail B. John Maynard Keynes
D. Video conference C. Milton Friedman*
D. Alfred Marshall
Q.92 By which principle is
utilitarianism defined? Q.95 Which is not a
A. Equality for everyone characteristic of corporate
B. Maximization of outcomes social responsibility?
for individuals A. Product safety
B. Consumer rights

30
C. Environmental policies C. Someone who benefits from
D. Price-fixing* illegal or unethical acts
D. Someone who devises
Q.96 What is a normative illegal or unethical acts
perspective?
A. The way things are.
B. The way things are going to Q.99 What is the term for a
be. process that enables an
C. The way things should be. * organisation to assess and
D. The way things were. demonstrate its social,
economic, and environmental
Q.97 Which of these factors is benefits and limitation?
not one of the competing A. Social plan
responsibilities that influence B. Social strategy
corporate social C. Social audit*
responsibility? D. Social account
A. Ethical
B. Economic Q.100 What is the overriding
C. Discretionary philosophy underpinning the
D. Technical* strategic direction of an
organization?
Q.98 What is a whistleblower? A. Vision statement
A. Someone who reports B. Mission statement*
illegal or unethical acts* C. Strategy statement
B. Someone who commits D. Business statement
illegal or unethical acts

31
32