1. The Board of directors of Medex Pharma Ltd. decided to issue debentures worth ₹40 lakhs in order to finance a major Research and Development project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at the same time it would increase the Earnings per share. The reason that will justify the above situation is:

 a) Unfavourable financial leverage, as the financial risk will be higher.

 b) Unfavourable financial leverage, as return on investment is lower than the cost of debt.

 c) Favourable financial leverage as debt is easily available

 d) Favourable financial leverage, as return on investment is higher than cost of debt

 2. A bottle of Anti- dandruff shampoo mentions ' Clean your hair and get rid of dandruff in one squeeze'. The product related decision involved is

a) Branding 

b) Product quality

c) Packaging 

d) Labelling

 3. With the presence of women in the workforce, there has been a shift towards formal wear, increased demand of electronic gadgets and increase in demand of cosmetics. The related dimension of business environment referred in the above lines is:

 a) Technological environment. 

b) Social environment

 c) Political environment. 

d) Economic environment 

 4. Name the function of marketing which is effective in bringing repeat sales from the customers and developing brand loyalty for a product.

 a) Standardization and grading

 b) Promotion

 c) Customer support services

 d) Packaging and labelling 

 5. SEBI calls for information and issues a show cause notice to stock exchange and its officials seeking explanation and conducting audit and enquiry. Which function is SEBI performing?

 a) Regulatory function b) Development function c) Protective function d) Both a) and c)

6. Identify the point of significance of management illustrated in the picture.

 a) Management helps in achieving group goals

 b) Management helps in achieving personal objectives

 c) Management helps in development of society

 d) Management increases efficiency 

 7. The allocative function of Financial market helps in ________

 a) Bringing transparency in trading procedure

 b) Earning higher rate of return to household sector

 c) Better functioning of depository

 d) Determining the prices of securities 

 8. IND Dyechem Ltd. is a chemical manufacturing company producing dyes and pigments both for domestic and international market. It has enjoyed a considerable market share but lately, it has been facing problems in terms of target sales and customer satisfaction. This is due to the reason that new entrants have emerged with better technology and competitive pricing. The Chairman of the company addressed this issue in the departmental meeting. The production head, Mr. Kamble, advised the Chairman to revamp the system and take immediate necessary actions to rectify the problem so that 1 sales are achieved as per the plans. Identify the relevant function of management being discussed here.

a) Organising 

b) Staffing

 b) Controlling

d) Planning

 9. Choose the incorrect statement about pricing objectives as a factor affecting the price of a product.

 a) If a firm's objective is to maximize profits in the short run, it should charge maximum price for its products.

 b) If a firm's objective is to capture market share, it should keep low price of its product.

 c) If a firm wants to attain product quality leadership, it should charge lower prices.

 d) If a firm is facing problems in survival due to stiff competition, it may offer discount on its products. 

 10. Read the following statements: Assertion (A) and Reason(R). Choose the correct alternative from those given below: ASSERTION (A): Management is concerned with efficient use of resources. REASONING (R): For management both efficiency and effectiveness need to be balanced. Alternatives:

 a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

 c) Assertion (A) is true but Reason (R) is False

 d) Assertion (A) is False but Reason (R) is True

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