Friday, January 6, 2012

Management Quiz - 20

1. When a junior employee tells a manager what he thinks of the manager has just asked him to do, and be sure that he understood the same correctly, the junior employee is using
[A]Selective perception

2. The communication process is made up of various components. The _____ is the actual physical product from the source encoding.

3. Organizations practice control in a number of different areas and at different levels. Managers need to consider the types of control that they wish to use. With regard to the time element of controls, which of the following controls monitors activities while they are being carried out?

4. Control is an essential part of every organization; it is exercised to ensure that what is done is what is intended. The control function plays an important role, right from the top level to the bottom level of an organization. Although control systems must be tailored to specific situations, such systems generally follow the same basic process. Identify the sequence of different steps in controlling.
I. Measurement of performance.
II. Comparison of actual and standard.
III. Analysis of causes of deviation.
IV. Actual performance.
V. Corrective action plan.
[A](III), (IV), (V), (I) and (II) above
[B](II), (III), (IV), (V) and (I) above
[C](I), (II), (IV), (III) and (V) above
[D](IV), (I), (II), (III) and (V) above

5. Ratio analysis, the process of determining and evaluating financial ratios is a major tool in assessing the significance of various financial data. There are various ratios, which are used in the analysis of financial data. One among them is the debt service coverage ratio. Which of the following is indicated by the debt service coverage ratio?
[A]Excess of current assets over current liabilities
[B]Number of times the value of fixed assets covers the amount of loan
[C]Number of times the company’s earnings cover the payment of interest and repayment of principal of long debt
[D]Effective utilization of assets

6. Budget is a formal quantitative statement of resources allocated for planned activities over stipulated periods of time. In this regard, which of the following types of budgets is commonly expressed in physical units and includes types and capacities of machines and availability of raw materials?
[A]Sales budget
[B]Cash budget
[C]Cost budget
[D]Production budget

7. Which of the following is not true about Management Information System (MIS)?
[A]It can be defined as an integrated, user-machine system for providing information to support managerial, operational and decision-making functions in an organization
[B]Many of the terms used in MIS are imprecise and controversial
[C]It incorporates a limited variety of knowledge areas
[D]MIS problems are not easy to define or structure

8. Controlling is the management function that is aimed at regulating organizational activities so that actual performance conforms to expected organizational standards and goals. In this regard, which of the following types is a self-regulating control system, which once put into operation can automatically monitor the situation?
[A]Strategic control system
[B]Tactical control system
[C]Operational control system
[D]Cybernetic control system

9. If you were looking to investigate how productive your assets were in meeting short-term obligations, you would be most likely to use which of the following ratios?
[A]Current ratio
[B]Inventory turnover
[C]Debt ratio
[D]Return on investment

10. Ratio analysis helps a manager compare the performance of the organization with its previous performance or the performance of its competitors. Which of the following is a ratio of creditors’ contribution to that of the owners?
[A]Current ratio
[B]Debt-equity ratio
[C]Return on investment (ROI)
[D]Net profit margin

11. Rohan, a new recruit in Solaris Systems, perceives that his outcomes (pay, perks etc.) are lower as compared to his inputs (qualifications, experience etc.) in relation to his colleagues. Which of the following theories of motivation explains this phenomenon?
[A]Need hierarchy
[B]Two-factor model
[C]Equity theory
[D]Expectancy theory

12. Which control system helps manager to regulate and supply inputs to obtain maximum production without any interruption?
[A]Budgetary control
[B]Financial control
[C]Quality control
[D]Inventory control

13. Ketan has just been asked to type up a report in two days using a software program he has never seen before. Furthermore, fifteen graphs, bar charts, and pie charts are an integral part of the report. He will have to use a color printer in a different department because their department does not have one. Ketan wonders if he will be able to get his project accomplished on time and in the format wanted by his manager. This is an example of which variable in Vroom's expectancy theory?
[A]Effort-performance linkage
[B]Performance-reward linkage
[C]Effort-reward linkage

14. Operations management (OM) may be defined as the total set of managerial activities employed by the organization to transform resource inputs into product outputs. Operations management is the management of direct resources (like manpower, technology, capital, equipment and information) that are required to produce the goods and services provided by an organization. Which of the following statements is true regarding Operations Management?
[A]Operations managers are not found in the service sector
[B]Operations management concerns only the input stage of product development
[C]The outputs of the operations system include both goods and services
[D]Labour is part of the transformation stage and is not considered an input

15. The history of operations research shows that more attention has been given to inventory control rather than any other practical area of operations and there are different types of inventory controls like Economic Order Quantity, Kanban, Just In Time etc. Which of the following would generally not be associated with a successful JIT program?
[A]Well-organized receiving and handling of materials purchased from suppliers
[B]Strong management commitment
[C]Suppliers located in diverse and distant locations
[D]High quality of materials purchased from suppliers