TS SET Paper 2 Mock Test - 2 (Management) - TS TET MCQ

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.

In order to take consistent decision about store decor, product assortment media, price and service level advertising messages the marketer needs to firstly define the target market.
It involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings.
Then, Profile the target market by segmenting the business customers by a different set of characteristics, including size of business, industry sector and location.

The success of marketing communication depends upon the extent to which messages engage their audiences. These audiences can be seen to fall into three main groups.
Customers: these may be consumers or they may be end user organizations.
Channel members: each organization is part of a network of other organizations such as suppliers, retailers, wholesalers; value added resellers, distributors, and other retailers, who join together, often freely, to make the product or service available to end users.
General stakeholders: organizations and people who either influence, or are influenced, by the organization. These may be shareholders, the financial community, trade unions, employees, local community, or others.
So, answer is customers, channel members and general stakeholders.

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.

Green Marketing principles relate to the Preservation Of The Environment.

• Green marketing refers to the practice of developing and advertising products based on their real or perceived environmental sustainability.
• Green Marketing is a relatively new concept, which involves the promotion of products and services which are safe for the environment.
• It involves the development, manufacturing, promotion, distribution, consumption, and disposal of the products and services in a sustainable fashion so that the least damage is caused to nature.
• The primary aim of green marketing is to reduce the adverse effects of the products and their consumption and disposal, on the environment.
• This means that the products and services are either eco-friendly or produced in an eco-friendly manner, which does not harm the environment.
• Examples of green marketing include advertising the reduced emissions associated with a product’s manufacturing process, or the use of post-consumer recycled materials for a product's packaging.
• Some companies also may market themselves as being environmentally conscious companies by donating a portion of their sales proceeds to environmental initiatives, such as tree planting.
• Green marketing is typically practiced by companies that are committed to sustainable development and corporate social responsibility. 

Transactional leadership is a style of leadership in which leaders promote compliance by followers through both rewards and punishments.

Transformational leadership is a leadership style in which leaders try changing organisation by creating and communicating a vision. The organisation encourages, inspires and motivates employees to innovate and create change that will help grow and shape the future success of the company.

Charismatic leadership is basically the method of encouraging particular behaviours in others by way of influencing, dint of personality and charm. Charismatic leaders motivate followers to get things done or improve the way certain things are done.

Situational leadership refers to when the leader or manager of an organisation must modify his style to fit the development level of the followers he is trying to influence. With situational leadership, it is up to the leader to change his style, not the follower to adapt to the leader's style.

Predatory pricing is the illegal act of setting prices low in an attempt to eliminate the competition. Predatory pricing violates antitrust law, as it makes markets more vulnerable to a monopoly. Such pricing was introduced by Competition Commission of India (CCI) in India.

Cognitive dissonance is a consumer buying decision process. It is the state of mind that holds opposing, and even irreconcilable ideas, at the same time.

Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread. This theory was given by Everett M. Rogers in 1962.

'Marketing myopia' is a term coined by Theodore Levitt. A business suffers from marketing myopia when a company views marketing strictly from the standpoint of selling a specific product rather than from the standpoint of fulfilling customer needs.

Ansoff’s matrix is a strategic marketing tool used to plan for Business growth.

• The Ansoff Growth Matrix is also known as the Ansoff Product-Market Growth matrix or the four ways to Grow a Business model.
• Ansoff’s matrix helps management identify business growth opportunities.

The four growth options of the Ansoff Growth Matrix:

• Market Penetration
• Market Development
• Product Development
• Diversification

There are three major methods of pretesting for evaluating advertising effectiveness:

Consumer feedback method: This method asks consumers for their reactions to a proposed advertisement

Portfolio tests: consumers view or listen to portfolio of advertisements and then asked to recall all the ads and their content, aided or un aided by the interviewer. Recall level indicates an ad’s visibility to stand out.

Laboratory tests: This method uses equipment to measure physiological reactions – heartbeat, blood pressure, pupil dilation, perspiration to an ad to indicate their moment of liking.

So, 1,2 and 3 is correct. Alpha tests are not the methods of pretesting for evaluating advertising effectiveness.

Definition of Cycle Time: The total time from the beginning to the end of your process, as defined by you and your customer. Cycle time includes process time, during which a unit is acted upon to bring it closer to an output, and delay time, during which a unit of work is spent waiting to take the next action.

The most likely objective to be set for the video recorder range is to divest.

• Demand for video recorder has almost completely disappeared with the adoption of DVD players.
• Divestment is a strategy that is considered when a business is not making suitable profits.
• Another organisations values the business higher than the current organization’s owner.

Leverage:

• Leverage is a company’s capacity to utilize new resources or assets to make better returns or diminish costs.
• Leverage is a reason that is influential for any organization is extremely huge.
• As a rule, leverage implies the impact of one variable over another.
• There are three proportions of leverage that are financial leverage, operating leverage, and combined leverage.
• The financial leverage assesses the impact of interest costs, while the operating leverage estimates the impact of fixed costs.

Key Points

• The usage of such sources of assets that convey fixed monetary charges or financial in an organization’s monetary structure to procure more profit from speculation is known as financial leverage.
• The degree of financial leverage (DFL) is utilized to gauge the impact on earnings per share (EPS) because of the adjustment of firms’ working benefit or operating profit, for example, EBIT.
• At the point when an organization utilizes obligation assets in its capital construction having fixed monetary charges as interest, it is said that the firm utilized monetary influence.
• The DFL depends on interest and money charges; in the event that these expenses are higher, DFL will likewise be higher, which will, at last, bring about the monetary gamble of the organization.

Important Points

The formula to calculate the degree of financial Leverage is: 

DFL = % Change in EPS / % Change in EBIT

Or

DFL = EBIT/ EBT

Hence, Degree of financial leverage is defined as the percentage change in EPS due to a given percentage change in EBIT.

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.

Rate of return (ROR) is a technique of capital budgeting. A rate of return (ROR) is the gain or loss of an investment over a certain period of time. In case of merger, purchase consideration is the agreed amount which transferee company (purchasing company) pays to the transferor company (vendor company) in exchange for the ownership of the transfer or company. It may be in form of cash, shares or any other assets as agreed between both the companies. Diminishing balance method is a technique of depreciation. According to the diminishing balance method, depreciation is charged at a fixed percentage on the book value of the asset. As the book value reduces every year, it is also known as the reducing balance method or written-down value method. Fifo method is used for stock valuation. The first in, first out (fifo) method of stock valuation is a cost flow assumption that the first goods purchased are also the first goods sold. In most companies, this assumption closely matches the actual flow of goods, and so is considered the most theoretically correct inventory valuation method.

Organizational Culture is the collection of shared beliefs, values, rituals, stories, myths and specialized language that foster a feeling of community among organization members.\

It is distinctive in nature, as each organization has its own management philosophy, mission and objectives etcHence from above discussion, we can infer that option (b) is not a characteristic of Organizational Culture.

Options (a), (c), (d) are all characteristics of Organizational Culture.

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.

The correct answer is Only (a).

HRD) is an essence of management of any organization is to utilize effectively all the available human and physical resources, financial and technological resources.

• HRD is concerned with the development of human capac­ity.
  • Human capacity or human potential includes-aptitude, knowledge, values, skills of HR, responsiveness, loyalty and commitment, transparency, leadership development.
• Aptitude refers to the potential for learn­ing or acquiring a specific skill.
  • It also differs from intelli­gence which refers to a person’s general potential to find solutions to problems, thinks ideally, adapts to changing situations, and gain from experience.

Concept:

• Dispersion refers to the variations of the items around themselves or around an average.
• If the variation is more between two items then the dispersion is also more.

Explanation:

• There are different types of dispersion:
  • Range
  • Semi-interquartile range
  • Variance
  • Standard deviation.
• The standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Meaning of qualitative research:

• Qualitative research involves collecting and analyzing non-numerical data (e.g., text, video, or audio) to understand concepts, opinions, or experiences.
• It can be used to gather in-depth insights into a problem or generate new ideas for research.
• Qualitative research relies on data obtained by the researcher from first-hand observation, interviews, questionnaires, focus groups, participant-observation, recordings made in natural settings, documents, and artefacts.
• Qualitative methods include ethnography, grounded theory, discourse analysis, and interpretative phenomenological analysis.
• The data sources include in-depth interviews, focus groups, standardized interviews, and artefacts such as books or works of art. The case study method exemplifies qualitative researchers' preference for depth, detail, and context.
• It is concerned with understanding human behaviour from the informant’s perspective.
• It is focused on the development of hypotheses and theories.

Qualitative research method

Each of the research approaches involves using one or more data collection methods. These are some of the most common qualitative methods:

• Observations: recording what you have seen, heard, or encountered in detailed field notes.
• Interviews: personally asking people questions in one-on-one conversations.
• Focus groups: asking questions and generating discussion among a group of people.
• Surveys: distributing questionnaires with open-ended questions.
• Secondary research: collecting existing data in the form of texts, images, audio or video recordings, etc.

Disadvantages of qualitative research

• The real-world setting often makes qualitative research unreliable because of uncontrolled factors that affect the data.
• Due to the researcher’s primary role in analyzing and interpreting data, qualitative research cannot be replicated. 
• Small samples are often used to gather detailed data about specific contexts. Despite rigorous analysis procedures, it is difficult to draw generalizable conclusions because the data may be biased and unrepresentative of the wider population.
• Although software can be used to manage and record large amounts of text, data analysis often has to be checked or performed manually.

Conclusion:

• Qualitative Research is primarily exploratory research.
• It is used to gain an understanding of underlying reasons, opinions, and motivations.
• It provides insights into the problem or helps to develop ideas or hypotheses for potential quantitative research.
• This method is not only about “what” people think but also “why” they think so.
• Qualitative Research is also used to uncover trends in thought and opinions, and dive deeper into the problem. But this kind of research cannot be carried out in the controlled conditions.

Hence, from the above discussion, we come to the conclusion that option (1) is correct.

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 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

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.

• Online marketing is booming and part of ecommerce where instead of visiting shop customer buy the product online.
• Hence, a website which is user-friendly, regularly updated, provides product’s graphical image and product’s price is competitive will attract the customer more to shop.
• It is a set of powerful tools and methodologies used for promoting products and services through the internet.
• Also known as internet, web, digital and search engine marketing.

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.

A joint venture is a business arrangement in which two or more firms come together to form a new business unit or partnership. In a joint venture, the participating firms contribute resources such as capital, assets, expertise, or technology and share the ownership, risk, returns, and governance of the venture.

The purpose of a joint venture is usually to combine the strengths and resources of the participating firms to pursue a specific business opportunity or goal. This could include entering a new market, developing a new product, sharing research and development costs, or accessing new technologies or distribution channels.

In a joint venture, the participating firms typically establish a separate legal entity or partnership to conduct the business operations. This entity operates independently and is governed by its own management structure, which may include representatives from each participating firm. The profits, losses, and liabilities of the joint venture are shared among the participating firms based on the agreed-upon terms and ownership stakes.

Joint ventures can be established for a specific project or for a longer-term strategic partnership. They can be formed between companies in the same industry or across different industries, and they can be domestic or international in nature.

The main advantages of a joint venture include sharing costs and risks, accessing new markets or technologies, leveraging complementary expertise, and pooling resources. However, joint ventures also require careful planning, negotiation, and ongoing management to ensure that the interests and objectives of all participating firms are aligned and that potential conflicts are properly addressed.

Demographic segmentation is one of the most common segmentation practices among marketers. Demographic segmentation divides the market on the basis of demographic variables like age, gender, marital status, family size, income, religion, race and occupation.
Poverty is not used by marketers as a variable for demographic segmentation.

The Standards of Weights and Measures (Packaged Commodities) Rules, 1977 have been introduced under the Standard of Weights and Measures Act, 1976. The Standards of Weights and Measures provide for the labelling rules relating to packaged commodities.
Statement i is false because brand equity is a function of brand awareness and not brand preference.
Statement ii is false as a product line extension is the use of an established product brand name for a new item in the same product category and it tends to lengthen overtime.
Statement iv is false because AIDA model is an advertising model but not relevant to physical distribution. AIDA stands for Attention, Interest, Desire, and Action.

Business marketers

• Business marketers who sell their products and services to another firm 
• it's either for resale or to support their own system
• they deal with only business firms not with end consumers
• who deal with limited numbers of individual firms 
• Due care and precautions are required during communication happens with another firm 

Consumer marketer

• Consumer marketer  who sells goods and services between organizations and potential customers
• a relatively large number of people  involved 
• mass marketing is a key strategy used in consumer marketing
• Compared to business marketing focused communication is less
• in consumer marketing the geographical characteristics are focussed area this includes the market size, climate, and population density of the different regions are taken into consideration

Hence the correct answer is geographically concentrated buyers