TS SET Paper 2 Mock Test - 1 (Management) - TS TET MCQ

A current account transaction has been defined as a transaction other than capital account transaction.
This means that all transactions that do not alter assets or liabilities outside India of residents or assets or liabilities in India of non-residents are termed as current account transactions.
FEMA allows free selling/drawal of foreign exchange to/from authorised dealer (AD); however, it empowers the Union government to notify certain restrictions for current account remittances, in consultation with the Reserve Bank of India (RBI).
So, Under FEMA all current account transactions are free unless specifically restricted.

Therefore, from the above explanation, it is clear that option b) is the correct answer.

Business level managers are the managers for a particular business line in the organisation, for example finance, marketing and production departments. Business level managers translate the strategies from corporate level management into actions at the business level. Business level managers are responsible for formulating the strategies to achieve the organisational goals.

Preference share is the kind of share on which shareholders receives the fixed amount of dividend before it is paid to equity shareholders.

There are different types of preference share.

Out of which participating preference share are those who receives fixed amount of dividend as well as additional dividend based on some predetermined condition like in case if the amount of dividends that common shareholders receive exceeds a specified per-share amount.

They may also have the right to share in the surplus assets of the company on its winding up.

The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

Quick Reference. Are 'overarching' competencies that are relevant to a wide range of work settings and which facilitate adaptation and flexibility on the part of the organization. Meta-competencies are usually said to include learning, adapting, anticipating, and creating change.

Balanced Scorecard:

• The term balanced scorecard (BSC) refers to a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes.
• The balanced scorecard includes financial measures that tell the results of actions already taken.
• It complements the financial measures with operational measures on customer satisfaction, internal processes, and the organization’s innovation and improvement activities—operational measures that are the drivers of future financial performance.

Hence, a balanced Scorecard includes both Financial measures and Operational measures.

Cross culture is a concept that recognizes the differences among business people of different nations, backgrounds, and ethnicities, and the importance of bridging them.

• With globalization, cross-cultural education has become critically important to businesses.
• Business people working abroad need to learn subtle differences in style and substance in order to be effective.

Important Points

• A field of study, cross-cultural communication, has emerged to define and understand the many ways the different peoples of the world communicate with each other verbally and non-verbally.
• The concept of cross-culture is becoming critically important with the globalization of businesses.
• Many companies that seek to expand the markets for their products devote substantial resources to training employees on how to communicate and interact effectively with those from other cultures.
• International companies and MNCs have employees from various nationalities. National companies have employees from different cultural backgrounds. 

Hence, Cross-cultural behavior is impertinent in all of the above (International, National, and Multinational organizations). 

Behaviours developed through the reinforcement of successive approximations to the eventual desired behaviour are called shaped behaviours and the process is called shaping.

Cross-functional groups that operate across space, time and organisational boundaries with members who communicate mainly through information technologies are called virtual teams.

For virtual teams to perform well, three enabling conditions need to be established:

• Shared understanding
• Integration
• Mutual trust

Benefits of virtual teams include reduction in travelling expenses, inclusion of more people in labour pool, decrease in air pollution; moroever, physical handicaps are not a concern.

Deep discount bonds are very similar to zero coupon bonds. Only, these bonds are issued at deep discounts against the face value. For example - A bond having a face value of Rs. 1000 is sold at a price of Rs. 600. Notice that the amount of discount given to the buyer is of Rs. 400 (Certainly a deep discount, as the name suggests). These bonds are sold at a discounted value and on maturity, face value of the bond is paid to the investors.

Centroid Method is used for factor analysis. It extracts the largest sum of absolute loadings for each factor in turn. It is defined by linear combinations in which all weights are either +1.0 or -1.0.
Hierarchical Method is used for Cluster Analysis. Hierarchical cluster analysis is an algorithm that groups similar objects into groups called clusters.
Multiple Regression is the relationship between a single metric dependent and two or more independent variables. It is used when we want to predict the value of a variable based on the value of two or more other variables. The variable we want to predict is called the dependent variable (or sometimes, the outcome, target or criterion variable).
Multivariate analysis of variance (MANOVA) is a procedure for comparing multivariate sample means. As a multivariate procedure, it is used when there are two or more dependent variables, and is often followed by significance tests involving individual dependent variables separately.

The promotional mix describes a blend of promotional variables chosen by marketers to help a firm reach its goals. It has been identified as a subset of the marketing mix. Activities identified as elements of the promotional mix vary, but typically include the following:
1) Advertising
2) Publicity
3) Personal selling
4) Sales promotion

Manager Inventory Chart is a partial organization chart that shows managerial positions, current incumbents, potential replacements for each position, and the age of each person.

However, it does not show the position to which a manager may be promoted.

Hence, option (c) is not an advantage of Manager Inventory Chart.

Options (a), (b), (d) are all advantages of Manager Inventory Chart.

According to the Tannenbaum and Schmidt Leadership model, the statement that would be most accurate regarding someone exhibiting behavior toward right of the continuum of leader behaviours is option (b), i.e., He would be more likely to ask the group to make a decision.

The main function of educational management is to make educational institution more effective And efficient. Effectiveness of any institution is perceived in terms of achievement of goals, development of its people, growth of the institution and impact on the community.

Decision making is the heart of the management process. It may be defined as the process of making choices from among several alternatives. The ability to make timely decisions, to exercise independent judgement and to gain positive results is the basic nature of effective decision making.

Decision making at various levels of the Institutional Management Cycle:

• Planning: It includes the vision of the institution such as strategic objectives, policies and guidelines and criteria for measuring the progress.
• Organizing: When the plan and guidelines are in place, the whole operational system needs to be organized. The decisions at this stage includes budget allocation, school calendar, procedures for leaves, substitution, creation of task group, etc.
• Implementing: At this level, each stakeholder will take decisions related to their own role and scope of work in the institution.

In large scale decisions, educational management is concerned with the operational practices of the educational organization involved in imparting education.

Various techniques are involved in reaching sound and rational policy decisions and in converting policy proposals into policy. A variety of techniques and tools are used for improving and enhancing the policy formulation process. Some of the techniques include:

Cost-benefit Analysis; l

Economic Forecasting; l

Operations Research and Systems Analysis; and l

PPBS Approach. i)

Cost-benefit Analysis:

• Cost-benefit analysis is a very useful technique which is used in the fields of economics, mathematics, statistics, operations research, etc.
• This technique is of great help to the policymakers while framing gender-specific policies and offers advice on the formulation and development of public policy.
• The costs of a policy or programme are calculated and set against the benefits it can offer to women. Thus the potential benefit of the policy is calculated.
• This technique helps the policymaker to opt for a policy or programme which offers the maximum net benefit to women.
• Critics argue that everything cannot be quantified. While framing policies for promoting gender equity and equality, values are involved more than calculations. It would be difficult to make calculations for a subject of value.

Economic Forecasting:

• Forecasting models were developed by the Organization for Economic Cooperation and Development (OECD) in the 1960s and 1970s in order to forecast trends.
• Most governments have a model of the national economy which is used to show the impact of policy changes on the economy. Such models have a strategic role to play in formulating economic policies.
• With the information and knowledge that is available, this model brings out various assumptions and suggests alternatives to try out. For example, if the government likes to know ‘what would be the effect if the income of women increases by 2 per cent?’ such a forecasting model would be helpful to the government in choosing the policy alternative.
• The forecast might come up with various assumptions like it would contribute to economic welfare, growth of the individual or improved standard of living, etc.
• Forecasting helps in justifying policy and expenditure plans and is also useful to explore various policy alternatives. However, it should also be noted that forecasting may not be accurate at all times.  

Operations Research and Systems Analysis:

• Operations Research (OR), Systems Analysis and Decision Analysis are other important techniques in policy formulation.
• These techniques according to Dror, share the following characteristics:
  • A bias for action and improvement;
  • The values of ‘rationality’ and ‘efficiency’;
  • Utilization of quantitative models; and
  • Holistic view and examination of all relevant variables. 
• The purpose of the OR approach is to help policymakers to determine policy and actions in a scientific manner.
• These techniques help a policymaker to choose a course of action by investigating the problem and selecting the alternatives in the light of their consequences.
• They have a wide application in government, especially in health, social services, law enforcement, etc. iv)

PPBS Approach:

• The Planning-Programming-Budgeting System (PPBS) was first adopted in the US in the 1960s both for increasing administrative performance and for improving the policymaking process in the military field.
• The technique of PPBS was promoted as a means for improving policymaking and performance throughout the national government mechanisms. This was helpful in designing budgeting and policymaking.
• The overall purpose of PPBS was to create rationality in the budgeting process, by requiring administrators to plan long-range organizational goals and establish programmes to attain the goals.
• With the use of PPBS, the budgeting process is evaluated at every step.
• PPBS enables a thorough examination of goals related to a policy or programme. Then, analysis of alternatives is made to find the most effective way of achieving programme/policy objectives at least cost.
• PPBS tries to review the outcome of the policy/programme at every stage. For example, the stipulated objectives of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) towards women and its contribution favouring women can be reviewed from time to time through PPBS.

F.W. Taylor has done the following studies for improving the production process:

• Time Study: Time study is the technique of observing and recording the time required by a workman of reasonable skills and ability to perform each element of the tasks in a job.
• Motion Study: Motion study is a technique which involves close observations of the movement of body and limbs of an individual required to perform a job.
• Fatigue Study: Fatigue study helps in maintaining the operational efficiency of the workers.

The Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The internal rate of return is a discount rate that makes the net present value (NPV) of all cash flow from a particular project equal to zero.

Market risk is the risk that the value of an investment will decrease due to changes in market factors. Market risk is sometimes called systematic risk because it relates to factors, such as a recession, that impact the entire market. They are also known as non-diversifiable risk as these cannot be reduced by diversification.

• In the year 1986 the GOI enacted the consumer protection act.
• It’s providing for a system for the protection of consumer rights and the redressal of consumer dispute.
• Includes: Individual domestic customers, societies and non for profit organisations.
• Excludes: Commercial Customers fully.

Vestibule Training is a term for near-the-job training, as it offers access to something new (learning).
In this training factory schools were created, due to the industrial revolution, in which workers were trained in classrooms within the factory walls
That is theoretical training is given in the classroom while the practical work is conducted on the production line.
OJT means on the job training.
BARS mean bartending school training.

• Correlation is independent of change of scale and origin both. Correlation denotes co-variability between the variables.
• Regression is a relative measure of relationship between variables. Regression is independent to change its origin but not scale.
• Both techniques are used to determine the relationship between two variables. Correlation shows positive relation while regression inverse relation.

Directing motivates members of the organization to work in the best interests of the organization.
Directing is said to be a process in which the managers instruct, guide, and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of the management process. 

The highlighted aspect of the corporate environment in the aforementioned instance is the Social Environment.

The social environment refers to the factors and influences related to society and human interactions that affect the business environment. In this case, the practice of ordering food from outside and then shifting to making food at home during the lockdown highlights the impact on different market industries due to changes in people's social behavior.

The social environment includes factors such as cultural norms, consumer behavior, social trends, and lifestyle changes. The shift to making food at home reflects changes in consumer behavior and lifestyle due to the lockdown. This change in behavior directly affects industries such as restaurants, food delivery services, and other related market sectors. The demand for ordering food from outside decreased, and people started cooking at home, leading to a decline in sales and revenue for businesses in the food industry.

Therefore, the social environment is the aspect of the corporate environment that is highlighted in this instance.

The defenders of the sustainability approach toward Corporate Social Responsibility (CSR) point out that all economic activity exists within a biosphere that supports all life.

• Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. 
• By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.
• To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.

In microeconomics, marginal revenue (MR) is the additional revenue that will be generated by increasing product sales by one unit. In a perfectly competitive market, the additional revenue generated by selling an additional unit of a good is equal to the price the firm is able to charge the buyer of the good.

According to the concept of financial signalling, management behavior results in new debt issue being recorded as Non-event news by investors. In this case company makes a commitment to pay interest on the debt.
It means company is in stable position. But when the amount of future debt is reduced investors may feel that company is not in stable position. The study shows that it does occur in real life.

It is a statistical tool that aims to eliminate defects, founded by Bill smith when he was working at Motorola INC in 1986,
it provides methods to improve the business by reducing the defects of the products. 

Main features 

• The technique ensures the rate of a defect in million is limited to 3.4.
• The decision can be taken on the basis of realistic data
• Decreasing defects and thereby reducing variation

Process:

• Define the causes of the process problem 
• Measure the important aspects of the current problem  
• Analyze the data 
• Improve the process 
• Establish 

Hence the correct answer is Measure→ Analyze → Improve → Establish.

Components of CRM technology:

• Sales Force Automation.
• Human Resource Management.
• Lead Management.
• Front-office solutions.
• Customer Service
• Marketing
• Workflow Automation
• Enterprise Application Integrations.