APSET Paper 2 Mock Test - 2 (Management) - AP TET MCQ

The extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs are known as brand imagery. Brand imagery is the tangible or intangible elements that consumers associate with a brand. It could be a package, an experience, a small, a feeling, a taste, and so on. Brand imagery is visual, auditory, olfactory, or tactile.

Weighted-factor Approach to strategic incentive management is a technique to evaluate competing alternatives by scoring each offer against a series of criteria that are weighted to reflect the importance to the final decision. The technique is often used as part of bid evaluation in the procurement process, as it allows a transparent and defensible decision-making trail.
According to Weighted-factor Approach to strategic incentive management, if for any strategic business unit, return on assets is 25%, cash flow is 25%, strategic funds programs (developmental expenses) is 25% and market share increase is also 25%, then this will fall in Medium Growth.

DUPONT analysis examines the return on assets analysing profit margin, total asset turnover. It was created by the DuPont Corporation in the 1920s.
Return on Assets = 
Here, net profit margin shows the operating efficiency and assets turnover shows the asset use efficiency.

An assumption about certain characteristics of a population.
If it specifies values for every parameter of a population, it is called a simple hypothesis.
Hypothesis generally means a mere assumption or supposition to be proved or disproved.
It provides the basis for investigation and ensures proper direction in which the study should proceed.
So, a statement about a population developed for the purpose of testing is called hypothesis.

Applet is a self-contained internet program designed to be used in a specific environment. It is also known as Java applet, written in Java programming language. Applet does not monopolize the user’s attention. It’s not full featured application program and this are easily accessible.
An Applet does not run independently. You can run it with the help of mobile devices.

Utility is a level of satisfaction one gets from using particular product. Utility from one product is differed from other product and thus utility curve too. 1st statement says that a person can have one utility curve for one situation and a quite different one for the next situation. So, it is a correct statement.
Linear utility curves shows bundles of goods in which consumers are indifference. Consumers get the same satisfaction from buying any of the products. So, if the business executive have linear utility curve then he can effectively use the expected monetary value as their decision criterion. So, this is also a correct statement.
And therefore Both the statements are true.

Creating ethical standards in the workplace is the foundation for happy employees and satisfied customers. When ethical standards are set forth clearly and without ambiguity, fewer human resources issue arise, morale picks up and productivity increases. The ethical standards in the workplace are partially set by laws and regulations and partially by the moral standards the company seeks to live by. If a company is seeking ethical standard, it must purport to public disclosure and publishing.

The CAPM was developed in the early 1960s by William Sharpe (1964), Jack Treynor (1962), John Lintner (1965) and Jan Mossin (1966). The CAPM is based on the idea that not all risks should affect asset prices.

In order to develop greater customer satisfaction and an improvement in the quality of processes, the Kaizen method presents some techniques and tools that must be implemented in the company, these are:

• Total productive maintenance system (TPM): this technique is developed within work teams, to help them achieve their maximum efficiency potential, trying to prevent any situation that damages their processes.
• Total quality management system (TQM): this technique is used for continuous improvement in the control and management of a company’s processes, with a global vision of the entire system integrating all the workers involved in them.
• Suggestion system: With this technique, all workers are involved in improvement processes through suggestions. Being able to count on the vision of the workers about the processes of the company, changes the perspective absolutely, allowing them to observe other points that should be improved.
• Quality control circles: This technique is focused on developing small groups of work and reflection, where employees propose changes, improvements or solutions for the various problems encountered in the production processes of the company.

Hence, the correct answer is Increased Quantity.

Determining Metrics in competency mapping:

• An organization can more clearly define competencies by assigning metrics to them.
• A common example of a metric is a sales quota that indicates an employee's performance expectations.
• While a sales quota is just a number, it closely relates to competencies like interpersonal skills, negotiation, and active listening.
• If an employee reaches their quota or comes close, the employer can better understand the employee's ability to perform their job. 

Hence, the correct answer is Sales target achieved.

Macroeconomics is a branch of economics that focuses on the behaviour and decision-making of an economy as a whole. The important macroeconomic aggregates are:

• Aggregate Consumption
• Gross Domestic Capital Formation
• Gross Domestic Savings and GNP

Macroeconomists study aggregated indicators to understand how the whole economy functions and develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, government spending, and international trade. These variables taken as a whole comprise a grouping of variables that are referred to as economic indicators. These indicators, which are classified as leading, lagging and coincident relative to their predictive capability, in combination with one another provide economists with a directional attribution for the economy.

Section 291 of the Indian Companies Act, 1956 provides that the Board of Directors of a company is entitled to exercise all such powers and to do all such acts and things as the company is authorised to exercise and do. This means that the powers of the Board of Directors are co-extensive with those of the company.
(a) The power to make calls on shareholders in respect of money unpaid on their shares
(b) The power to authorise the buy back of shares
(c) The power to issue debentures
(d) The power to borrow monies otherwise than on debentures
(e) The power to invest the funds of the company
(f) The power to make loans
(g) The power to forfeit shares
Directors don't have powers to borrow monies exceeding the aggregate of the paid-up capital of the company and its free reserves.

Capital budgeting is the process that a business uses to determine which proposed fixed asset purchases it should accept, and which should be declined. There are different methods adopted for capital budgeting.
Payback period method of capital budgeting focuses on liquidity of a project. This method refers to the period in which the proposal will generate cash to recover the initial investment made. It purely emphasises on the cash inflows, economic life of the project and the investment made in the project, with no consideration to time value of money. Through this method selection of a proposal is based on the earning capacity of the project.

The major difference in skill requirements between middle and top managers is that top managers generally require higher level conceptual skills but less technical skills than middle managers.Hence, from above discussion, we can infer that option (d) is correct.

Scientific Management Theory:

• It is a management philosophy that was first introduced by Frederick Winslow Taylor in the late 1800s.
• It is based on the idea that there is always a scientific way to manage an organization i.e. using data and statistics to identify the most efficient way of conducting business.
• Taylor described his principles in order to make people understand how to choose the one best way to increase productivity.
• Scientific management is also known as “Taylorism.” 

Administrative management theory

• It is also one type of classical management theory and is a way to organize things in a systematic manner.
• The systematic way includes clearly defined tasks, division of labor and a hierarchical structure of the organizations.
• It was given by Henri Fayol

Bureaucratic Management:

• Max Weber, a German scientist, defines bureaucracy as a highly structured, formalized, and also an impersonal organization.
• He also instituted the belief that an organization must have a defined hierarchical structure and clear rules, regulations, and lines of authority which govern it.​

Therefore we can say that the correct answer is (A), (B) and (C) only.

Business Analysis is popular to many company owners with the functions to analyse, examine data, and figure out the most appropriate plan or priority for the company to achieve their goals. There are several analytical tools used to support businessmen to perform a business analysis. SWOT analysis is one such tool. SWOT analysis is a strategic planning technique used to help a person or organisation to identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.

If a hypothesis attempts to nullify the difference between two sample means (by suggesting that the difference is of no statistical significance), it is called a null hypothesis.
Null hypothesis denoted by .
It is a statement that the value of a population parameter is equal to some claimed value.
So, any hypothesis which is tested for the purpose of rejection under the assumption that it is true is called null hypothesis.

Modern Customer-oriented Organization Chart:

• Traditionally, the organization chart composed of the top management being given the most importance, the middle management was secondary and issued orders to the front-liners who interacted with customers; thus customers were the last standing in the organizational pyramid and top management made all the decisions.
• Nowadays, customers being the king, it is based on the customer that new products are decided.
• Customers get the complete attention of the organization, and even the top management listens to them.
• Thus, the customers became the apex and the traditional organization chart took a 180-degree turn. 

• In modern customer-oriented organizational design, the entity at the top is customers.
• The front liners have also received importance as they interact regularly with customers and the fundamentals of 360-degree feedback have been brought.
• The front liners are followed by the middle management and finally by the top management.
• Now, the marketing process starts with the question, "What will the customers like or want?"
• Customers are even ready to pay extra money for the extra value they get.
• Once an organization starts thinking "What will my customers need and how can I improve value" then they are the ways determined by modern customer-oriented organizational chart. 

Therefore, in the modern customer-organization chart, the entity at the top are customers.

A complementary good is a good whose use is related to the use of an associated or paired good. Two goods (A and B) are complementary if using more of good A requires the use of more of good B. For example, the demand for one good (printers) generates demand for the other (ink cartridges). If the price of printer increases, then there will be decrease in demand of printer and hence there will be a backward shift in demand for the ink cartridges.

The control cycle is the iterative process of planning, monitoring outcomes, assessing results, and making revisions. Control cycle is based on following steps:
Adjustment → Action → Feedback → Evaluation

The internal sources of recruitment mean hiring people from within the organisation. The transfer, promotion, and employee referrals are the common forms of the internal sources of recruitment.

The cost of equity is the return a company requires to decide if an investment meets capital return requirements.
The cost of equity can be measured as
Re = 
Where, Re = cost of equity
D₁ = yearly dividend per share
P₀ = share price
g = growth rate

Objectives provide direction, serve as standards for evaluating performance and motivate members of the organisation. Objectives are short-term and medium-term goals that an organisation seeks to accomplish. An organisation's objectives play a large part in developing organisational policies and determining the allocation of organisational resources.

Selection of specific media, where the advertisements will be run and when they will be run, to reach the target market is called Media Planning. It is the process of identifying and selecting media outlets – mainly newspapers, magazines, websites, TV and radio stations, and outdoor placement.

• Economic policy refers to the action that governments takes in the economic field is called economic policy.
• It covers the systems for setting levels of taxation, government budgets, money supply and interest rates.
• It also related to labour market, national ownership and many other areas of government interventions into the economy.
• Many factors of economic policy can be divided into either fiscal policy which deals with government actions regarding taxation or spending or monetary policy.

• One of the main purposes of conducting job analysis is to prepare job descriptions and job specifications which help to hire the right quality of workforce into an organization.
• Job analysis includes oraganisational analysis, collection of job data, preparation of job description, job specification, report making, approval, Its implementation in HR planning.

Service marketing mix is a combination of the various elements of services marketing that companies use to communicate their organizational and brand message to customers.
The 7 p’s is also called as marketing mix, the broad levels of marketing decision includes namely:

• Product
• Price
• Promotion
• Place
• People
• Process
• Physical evidence

Marketing Plan is not a part of that.

A stereotype is a fixed, overly generalised belief about a certain group or class of people that is used in social psychology. Stereotyping implies that an individual possesses a wide range of characteristics and abilities that we presume all members of that group share. For instance, a "hells angel" biker wears leather clothing.

Important Points

Stereotyping: 

• A stereotype is a preconceived idea that is fixed and overly generalised about a certain group or class of individuals.
• These presumptions rest on the false assumption that each member of the group shares a particular set of traits.
• Many stereotypes are a direct result of numerous political, social, or economic events and have a lengthy and occasionally contentious history.
• Making assumptions about a person or group of individuals based on criteria such as gender, race, religion, or physical characteristics is known as stereotyping.

The correct answer is   Ed= ∆Q/ Q  ÷  ∆P/P.

• Price Elasticity of Demand can be defined as the degree to which the effective desire for a commodity changes as the Price of that commodity varies.
• Generally, it has been observed that willingness to buy a certain commodity changes as those things become more expensive.
• The Price change of a commodity also affects its Demand. 
• We can find the Elasticity of Demand, or the responsive degree of Demand by comparing the percentage of change in Price with the quantity of the Demand of that commodity.
• The Price Elasticity of Demand can be defined as an economic measure of the change in the quantity demanded or purchased of the product concerning its Price change.

Mathematically, the Price Elasticity of the Demand formula can be explained as:

 Price Elasticity of Demand = % Change in Quantity Demanded % Change in Price

OR 

Ed = ∆Q/ Q  ÷  ∆P/P
Hence, Price elasticity of demand for a product is measured by Ed = ∆Q/ Q  ÷  ∆P/P

Mission Statement:

• A mission statement is used by a company to explain, in simple and concise terms, its purpose(s) for being.
• It is usually one sentence or a short paragraph, explaining a company's culture, values, and ethics.
• Mission statements serve several purposes, including motivating employees and reassuring investors of the company's future.
• To craft a mission statement, consider how your company impacts customers, donors, investors, or your community and why you strive to help these parties.

Vision Statement: 

• A vision statement describes what a company desires to achieve in the long run, generally in a time frame of five to ten years, or sometimes even longer.
• It depicts a vision of what the company will look like in the future and sets a defined direction for the planning and execution of corporate-level strategies.
• In simple terms, a vision statement is a written document that describes where an organization is going and what it will look like when it gets there.

Important Points

Relationship between Mission and Vision Statement: 

• The Mission Statement concentrates on the present; it defines the customer(s), and critical processes and it informs you about the desired level of performance.
• The Vision Statement focuses on the future; it is a source of inspiration and motivation.
• Thus, Statement I is incorrect. 
• A mission statement defines the organization's business, its objectives, and how it will reach these objectives.
• A vision statement details where the organization aspires to go. 
• Thus, Statement II is correct. 

Hence, the correct answer is Statement I is incorrect, Statement II is correct.