TS SET Paper 2 Mock Test - 5 (Management) - TS TET MCQ

Liquidation value is the likely price of an asset when it is allowed insufficient time to sell on the open market, thereby reducing its exposure to potential buyers. Liquidation value is typically lower than fair market value.
Liquidation value may be either the result of a forced liquidation or an orderly liquidation. Either value assumes that the sale is consummated by a seller who is compelled to sell and assumes an exposure period which is less than market normal.

• A Trade union is an organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests.
• The main object of trade union is to maintaining or improving the conditions of their employment. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.
• So, a trade union is on organisation of workers for their demand.

• The operant conditioning or learning approach to behavior is based on the law of effect. B. F. Skinner (1938) coined the term operant conditioning; Operant conditioning is a type of learning in which the strength of a behavior is modified by its consequences, such as reward or punishment
• According to the law, the behavior that has positive consequence tend to be repeated, while negative consequence behavior will not be repeated in any organization. Like behavior results in reward or promotion will be repeated and behavior results in punishment, demotion will not be repeated.

Main function of reserve bank of India is to regulate the issue of bank notes and to take care of monetary stability of country.
Industrial Development Bank of India (IDBI) mainly deals with planning, promotion and development of industry only whereas Small Industrial Development Bank of India (SIDBI) is exclusively for development of small scale industries.
The main objective of National Entrepreneurship Board is promotion of entrepreneurship for encouraging self-employment. It is apex body for formulating the policy in respect of entrepreneurship development.

• The first important idea about how advertising works was based on how the personal selling process works.
• Developed by Strong, the AIDA model has become extremely well known and used by many practitioners.
• AIDA refers to the need to first create awareness, secondly generate interest, then drive desire, from which action (a sale) emerges.

Principles Of Service Marketing Management Interview Questions ... pricing, distribution, advertising, and competition); it's hard to isolate the effects these ... Service companies must identify the right quality initiatives and execute them effectively. Customers' expectations play a critical role in their service experiences and evaluations.

Convenience sampling (also known as grab sampling, accidental sampling, or opportunity sampling) is a type of non-probability sampling that involves the sample being drawn from that part of the population that is close to hand.
This type of sampling is most useful for pilot testing.
Since here we are talking about people who are available readily and are in fact at close to hand and can be easily recruited.
So, they fall in the convenience sampling category.

The process of standardizing jobs by laying down rules and procedures to be adhered to is called Formalisation.

• ​Process standardization refers to the organization of different tasks, approaches, and administrative steps in a business, as well as their formalization and documentation.
• An advantage of formalization is that it makes employee behaviour more predictable.
• As a result, employees handle issues uniformly throughout the company, which promotes consistency in behaviour.

Price rigidity refers to a situation where the prices of goods or services remain the same or constant over some time. In such cases, the prices do not change in response to shifts in supply and demand conditions in the market.

Price rigidity can occur due to various reasons, such as government regulations, long-term contracts, industry standards, or the behavior of firms in response to market conditions. It means that even if there are changes in production costs, input prices, or demand for the product, the price charged by the sellers remains unchanged.

Price flexibility, on the other hand, refers to the ability of prices to adjust freely in response to changes in market conditions. In a flexible price system, prices are responsive to shifts in supply and demand, allowing them to fluctuate and reach an equilibrium level. Price flexibility is typically associated with competitive markets where there are no barriers to entry or exit and no significant market power held by individual firms.

In the context of the given options, price rigidity is the correct term that describes a situation where prices remain constant over time. Price flexibility, on the other hand, would indicate a situation where prices are able to change in response to market dynamics.

Organizational culture refers to the beliefs and values that have existed in an organization for a long time, and to the beliefs of the staff and the foreseen value of their work that will influence their attitudes and behavior. Managers usually adjust their leadership behavior to accomplish the mission of the organization, and this could influence the employees' job satisfaction. 

Important Points

• Symbiotic relationships are common in nature; one creature's survival depends on a reciprocal relationship with others.
• Under a symbiotic system, management provides the requisite coordination, planning, financing, and leadership functions that increase organizational worth when associates perform well.
• Bureaucratic leadership can be defined as a system of management that follows a hierarchy where official duties are fixed.
• Employees in this form of leadership are expected to follow specific rules and authority created by their superiors.

Hence, according to some cultures, the relationship between management and employees is both symbiotic and bureaucratic. 

The Neoclassical Theory is the extended version of the classical theory, wherein the behavioural sciences get included into the management. Neoclassical organisation theory emphasises flat structure of organisation. A flat organisation refers to an organisation structure with few or no levels of management between management and staff level employees. The flat organisation supervises employees less while promoting their increased involvement in the decision-making process.

The firm's investment and financing decisions are unavoidable and continuous. In order to make them rational, the firm must have a goal. Two financial objectives predominate amongst many objectives.
These are:
1. Profit maximisation
2. Shareholders' Wealth Maximisation (SWM)
Shareholders' Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.

In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders. The manager, acting as the agent for the shareholders, or principals, is supposed to make decisions that will maximise shareholders' wealth even though it is in the manager's best interest to maximise his own wealth.

Sampling plan is a technique of statistical quality control used for product control. A sampling plan is a term widely used in research studies that provide an outline on the basis of which research is conducted. It tells which category is to be surveyed, what should be the sample size and how the respondents should be chosen out of the population.

The correct answer is Scientific method.

Idea generation: 

• A good idea decides the success of an enterprise. 
• An idea should be implementable. It should be innovative 
• Idea generation techniques can be helpful in many problem-solving, product development or innovation-based work processes. 
• Idea generation techniques are activities and approaches that can help people process and analyze their thoughts in order to think of new inventions, solutions or designs. 

Key Points

Methods of Idea Generation: 

• Focus Groups: Groups of individuals providing information in structured formats.
• Brain Storming: A group method for obtaining new ideas and solutions.
• Problem inventory analysis: A method for obtaining new ideas and solutions by focusing on problems.
• Creative problem solving: A method for obtaining new ideas focusing on parameters.
• Reverse Brain Storming: A group method for obtaining new ideas focusing on the negative.
• Synectics: A method for individuals to solve problems through one of the four analogy mechanisms: Personal, Direct, Symbiotic, and Fantasy
• Gordon Method: A method for developing new ideas when the individuals are unaware of the problem.
• Checklist method: Develop a new idea through a list of related issues.
• Free Association: Developing a new idea through a chain of the word association.
• Forced Relationships: Developing a new idea by looking at product combinations.
• Collective notebook method: Developing a new idea by group members regularly recording ideas.
• Heuristics: Developing a new idea through a thought process progression.
• Scientific method: Developing a new idea through inquiry and testing.
• Value analysis: Developing a new idea by evaluating the worth of aspects of ideas.
• Attribute listing: Developing a new idea by looking at the positive and negative attributes.
• Matrix Charting: Developing a new idea by listing important elements on attribute axes of a chart.
• Big dream approach: Developing a new idea by thinking about constraints.
• Parameter Analysis: Developing a new idea by focusing on parameter identification and creative synthesis.

Hence, Developing a new idea through inquiry and testing is called scientific method.

Consumer buying process consists of sequential steps the consumer follows to arrive at the final buying decisions. Mostly, consumers follow a typical buying process. Marketer must know how consumers reach the final decision to buy the product.
According to Philip Kotler, the typical buying process involves five stages the consumer passes through described as under:

The major approaches utilized by managers to induce employees to accomplish the planned actions associated with implementation should normally include all of the given options except coercion.

Coercion is a party acting in an involuntary manner by use of threats or force. It involves a set of various types of forceful actions that violate the free will of an individual to induce the desired response. The purpose of coercion is to substitute one's aims to those of the victim. For this reason, many social philosophers have considered coercion as the polar opposite of freedom.

The information attribute which is prepared or presented to users often enough to be up-to-date is known as information frequency.

A procedure is a series of interrelated sequential steps that can be used to respond to a well-structured problem. (a) Rules are statements of actions that must be taken or not taken in a given situation. (b) A policy is defined as a general guideline for taking an action. (c) A budget is a statement that outlines the expected results of a given future period in numerical terms.

CRM aids in customer satisfaction and satisfied customers remain loyal to the business, spreading good word-of-mouth as well.
This can be accomplished by fostering customer engagement via social networking sites, online and offline polls, interactive blogs, and various other mobile and web platforms.

Management level system-

• Management-level systems support managerial tasks like monitoring, controlling, decision-making, and administration. 
• Systems at the management level typically deliver reports at set intervals rather than real-time data.
• A good example is a relocation control system that tracks the money spent by employees across the company on things like house hunting, home loans, and actual relocation.
• Non-routine decisions can be aided by certain management-level systems.

A macro-environment is the condition that exists in the economy as a whole, rather than in a particular sector or region. The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces.

Market segmentation is the process of dividing prospective consumers into different groups depending on factors like demographics, behaviour and various characteristics. Market segmentation helps companies better understand and market to specific groups of consumers that have similar interests, needs and habits. Before a company decides to target a particular market segment, some important factors like market size, growth rate, structural attractiveness are to be examined against organisation's objectives and resources.

• As per the four stages of product life cycle product has a good demand till maturity stage but at a decline stage demand starts shrinking as product become too old and customer switches to another product which leads to decision whether to maintain, harvest or drop the product based on demand for the product and market competition.
• So, the company takes decision whether to maintain, harvest or drop the product at decline stage.

1. Pareto analysis

• It is a formal technique useful where many possible courses of action are competing for attention. In essence, the problem-solver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one.
• Pareto analysis is a creative way of looking at causes of problems because it helps stimulate thinking and organize thoughts. However, it can be limited by its exclusion of possibly important problems that may be small initially, but which grow with time. In terms of inventory management, the Pareto principle can be declared as 20% of inventory items by type account for 80% of annual consumption value.

2. The net income (NI) 

• This approach is also called the traditional approach.
• This is an approach in which both costs of debt and equity are independent of capital structure. The components which are involved in it are constant and don't depend on how much debt the firm is using. This theory was proposed by David Durand.

3. Net operating income

• It measures an income-producing property's profitability before adding in any costs from financing or taxes.
• The operating expenses used in the NOI metric can be manipulated if a property owner defers or accelerates certain income or expense items.
• The NOI metric does not include capital expenditures.

4. Miller – Orr Model

• It deals with cash inflows/outflows that change on a daily basis.
• The model works in terms of upper and lower control limits, and a target cash balance. As long as the cash balance remains within the control limits the firm will make no transaction.

Therefore, the correct match is:

Hence Option d is the correct answer.

Statement given in option 2 is incorrect because term loan from bank is not used to pay dividends to shareholders on time. Term loans can be given on an individual basis, but are often used for small business loans. The ability to repay over a long period of time is attractive for new or expanding enterprises, as the assumption is that they will increase their profit over time. Term loans are a good way of quickly increasing capital in order to raise a business' supply capabilities or range. For instance, some new companies may use a term loan to buy company vehicles or rent more space for their operations.

Selling the products only through a single wholesaler or retailer is called exclusive distribution strategy. The advantage of an exclusive approach is that the manufacturer retains greater control over the distribution process. In exclusive arrangements, the distributor is expected to work closely with the manufacturer and add value to the product through service level, after sales care or client support services.

In small group communication, different types of communication flow can be observed, and all of the options listed - circular flow with feedback, centralized flow with feedback, and chain flow with feedback - are valid forms of communication within a small group.

• Circular flow with feedback: In this type of communication, group members communicate with each other in a circular pattern, where each member has an opportunity to share their thoughts or ideas. Feedback is provided by other group members, creating a continuous flow of communication within the group.
• Centralized flow with feedback: In this type of communication, the group's communication is centralized around a leader or a central figure. The leader directs the communication flow, and other group members provide feedback or contribute to the discussion based on the leader's direction.
• Chain flow with feedback: This type of communication involves a sequential flow of information, where each group member communicates with the next member in line. Feedback is provided at each step, allowing for continuous interaction and input from all group members.

All three communication flows can be observed in small group settings, depending on the dynamics and structure of the group. Therefore, the correct answer is (D) All a., b., and c. are correct.

Assertion (A) : Factors influencing changes in strategic management may be internal or external to the business organization. Some of these factors include management functions, structural transformations, competition, socio-economic factors, laws and technology.

Reasoning (R) : A survey is a data collection tool used to gather information about individuals. Surveys are commonly used in psychology research to collect self-report data from study participants. A survey may focus on factual information about individuals, or it might aim to obtain the opinions of the survey takers.

Collaborative CRM (Customer Relationship Management) focuses on managing and enhancing relationships with external stakeholders in the value chain. It involves actively engaging and collaborating with customers, suppliers, partners, and other external stakeholders to create value and achieve mutual benefits.

Collaborative CRM facilitates communication, information sharing, and collaboration between a company and its external stakeholders. It enables organizations to work closely with customers and partners, gather feedback, co-create solutions, and build long-term relationships.

This approach recognizes that successful businesses do not operate in isolation but are part of a larger network of relationships and interactions. By effectively managing relationships with external stakeholders, companies can improve customer satisfaction, loyalty, and retention, as well as strengthen their overall value proposition in the market.

Analytical CRM (Option a) primarily focuses on analyzing customer data and generating insights to support marketing and sales strategies. It is more internally focused and aims to improve internal decision-making processes.

eCRM (Option b) refers to electronic or online CRM, which involves using digital channels to manage customer relationships. It can encompass various CRM functionalities but does not specifically emphasize relationship management with external stakeholders in the value chain.

EAI (Option d) stands for Enterprise Application Integration, which focuses on integrating different software applications within an organization to improve data flow and information sharing. It is not specifically associated with relationship management with external stakeholders in the value chain.

Therefore, option c, Collaborative CRM, is the most relevant choice when it comes to relationship management with external stakeholders in the value chain.

The Marketing Concept:

• Most successful organizations have adopted this concept as it is based on the "right" principle.
• The marketing concept refers to the use of marketing data to focus on the needs and wants of customers in order to develop marketing strategies that not only satisfy the needs of the customer but also accomplish the objectives and goals of the organization.
• An organization generally uses this concept when it identifies the buyer's needs and then it produces the goods, services, and ideas that satisfy them.
• The marketing concept is oriented towards pleasing customers by offering value.
• The marketing concept specifically involves the following:
  • Focusing on the needs and wants of the customers so the organization can distinguish its product(s) from competitors’ offerings. Products can be goods, services, or ideas.
  • Integrating all of the organization’s activities, including production and promotion, to satisfy these wants and needs.
  • Achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly.
• An organization that truly utilizes the marketing concept uses the data about the potential customers from the very inception of the product to create the best good, service, or idea possible, as well as marketing strategies to support it.

Therefore the statement that reflects the marketing concept is "We don't have a marketing department, we have a customer department".