GENERAL STUDIES PRACTICE QUESTIONS

1. The proper system for education is:
(a) The present examination-system
(b) The examination-system with books
(c) Semester system
(d) Objective question paper
Ans. (c)
2. Hypothesis can not be stated in:
(a) Null and question form terms
(b) Declarative terms
(c) General terms.
(d) Directional terms
Ans. (c)
3. Satellite communication works through:
(a) Radar
(b) Transponder
(c) Receptor
(d) Transmitter
Ans. (b)
4. Computer can:
(a) Process both quantitative and qualitative information
(b) Store huge information
(c) Process information and fast accurately
(d) All of the above
Ans. (d)
5. Informal communication network with in the organization is known as:
(a) Grape vine communication
(b) Interpersonal communication
(c) Mass communication
(d) Interpersonal communication
Ans. (a)
6. Linear programming models solve problems dealing with:
(a) Relatives and absolutes
(b) Routes and mixes
(c) Dispersions and similarities
(d) Rupees and percentages
Ans. (b)
7. Hierarchy has been described as the Scalar process by:
(a) L. D. White
(b) P. H. Appleby
(c) Mooney and Reilley
(d) Gullick and Urwick
Ans. (d)
8. Henry Fayol supports the:
(a) Humanistic approach
(b) Mechanistic approach
(c) Organic approach
(d) Scientific approach
Ans. (b)
9. The main focus of Human Relations theory is on:
(a) Formal organization
(b) Informal organization
(c) Individual
(d) Participatory decision making
Ans. (c)
10. Environment is synonymous with:
(a) Task
(b) Relations
(c) People
(d) Situational variables
Ans. (d)
11. An organization principle based upon divisions of Labour is called:
(a) Line organization
(b) Functional organization
(c) Informal organization
(d) None of the above
Ans. (b)
12. In the organization, authority flows in a vertical line:
(a) From the top downward
(b) From the bottom upward
(c) Both ways downward and upward
(d) None of these
Ans. (a)
13. Match the following:
A. Advisory function 1. Staff executives
B. Manpower development 2. Directing
C. Guiding function 3. Line executives
D. Managerial authority 4. Staffing
Codes:
A B C D
(a) 1 4 3 2
(b) 1 3 4 2
(c) 2 3 4 1
(d) 2 1 3 4
Ans. (b)
14. Dorwin Cartwright and Alvin Zander identified the following two
variables:
(i) Employee-oriented
(ii) Production-oriented
(iii) Goal-oriented
(iv) Group -oriented
The correct code is:
(a) (i) and (U)
(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (i) and (iv)
Ans. (c)
15. Quantitative techniques used to solve business problems are called:
(a) operations management
(b) operation science
(c) operation research
(d) management operation
Ans. (c)
16. Assertion (A): A tenet of scientific management is co-operation and
harmony between workers and managers.
Reason (R): Taylor believed in participative management.
In the context of the above two statements which one of the following is
correct?
(a) A and R are true and R is the correct explanation of A.
(b) A and R are true but R is not the correct explanation of A.
(c) A is true but R is false
(d) A is false but R is true.
Ans. (c)
17. Assertion (A): According to Taylor, one of the best way of doing
each task leads to increase in productivity in organization.
Reason (R): It was the management’s responsibility alone to find out
this one of the best way.
Codes:
(a) A and R are true and R is the correct explanation of A.
(b) A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans. (b)

18. Which of the following creates time utility?
(a) Farmer
(b) Carpenter
(c) Trader
(d) Driver
Ans. (c)
19. Match the following:
A. Responsiveness of demand to change in price 1. Income elasticity of
demand
B. Responsiveness of demand to change in tastes 2. Price elasticity of
demand
C. Responsiveness of demand to change in income 3. Cross elasticity of
demand
D. Responsiveness of demand to change in price 4. Taste elasticity of demand
of related goods.
Codes:
A B C D
(a) 1 2 3 4
(b) 4 3 1 2
(c) 3 4 2 1
(d) 2 4 1 3
Ans. (d)
20. Assertion (A): The theory and hypotheses of Argyris suggest no
relationship between personal development of the individual and the
organizational situation.
Reason (R): The principles and characteristics of a formal organization,
in the opinion of Argyris, are incongruent to the needs of adult human
beings.
Codes:
(a) A and R are true and R is the correct explanation of A.
(b) A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Ans. (d)
21. Management by objectives is implemented in an organization by
stages, one such stage action planning, includes:
I. Assigning responsibilities for achieving objectives
II. Choosing strategies appropriate to the objectives
III. Allocating resources for achieving objectives
IV. Scheduling specific activities to achieve maximum resource utilization
Identify from th following combinations the correct sequence in which
the action planning stages are implemented
(a) I, II, III, IV
(b) II, III, IV, I
(c) III, IV, I, II
(d) II, I, III, IV
Ans. (d)
22. What is BIS?
(a) Business Information System
(b) Business of Industrial Sale
(c) Bureau of Indian Standard
(d) None of the above
Ans. (c))
23. Match List-I (Activity) with List-Il (Associated organization) and
select the correct answer by using the codes given below the lists:
List-I List-II
A. Mutual fund 1. Stock exchange
B. Public issue of capital 2. Assets management company
C. Forward trading 3. Merchant banking
D. Option pricing 4. Forex market
Codes:
A B C D
(a) 3 2 4 1
(b) 3 2 1 4
(c) 2 3 1 4
(d) 2 3 4 1
Ans. (d)
24. Which of the following are the methods of market new issues of
securities?
I. Listing of securities
II. Jobbers and brokers
III. Private placement of securities
IV. Privileged subscriptions
Select the correct answer using the codes given below.
Codes:
(a) I and II
(b) II and III
(c) III and IV
(d) I, II, III, and IV
Ans. (c)
25. SEBI was established in:
(a) 1993
(b) 1992
(c) 1988
(d) 1990
Ans. (c)
26. Increase in net RBI credit for central government represents:
(a) Budgetary Deficit
(b) Revenue Deficit
(c) Fiscal Deficit
(d) Monetized Deficit
Ans. (d)
27. The famous book “The Philosophy of Management” was written by:
(a) Henry Fayol
(b) Oliver Scheldon
(c) F. W. Taylor
(d) Urwick
Ans. (b)
28. Arrange the following ingredients of communication process in the
proper order:
1. Message
2. Receiver
3. Encoder
4. Channel
5. Decoder
(a) 1, 3, 2, 5, 4
(b) 1, 3, 4, 2, 5
(c) 3, 1, 4, 5, 2
(d) 3, 1, 2, 4, 5
Ans. (c)
29. Marginal Revenue will be negative if the demand is:
(a) Relatively elastic
(b) Unitary elastic
(c) Relatively inelastic
(d) Perfectly elastic
Ans. (c)
30. Price control; is one of the monopoly regulations which is most
advantageous for:
(a) The producer
(b) The consumer
(c) The government
(d) The seller
Ans. (b)
31. Which one of the following is considered as the first principle of
organization?
(a) Delegation
(b) Co-ordination
(c) Unity of command
(d) Supervision
Ans. (b)
32. Find the odd one out:
(a) Human relations theory
(b) Informal functioning
(c) Humanistic theory
(d) Structural theory
Ans. (d)
33. The real aim of production is:
(a) To create material goods
(b) To eliminate poverty
(c) To satisfy people’s wants
(d) To provide basic necessities.
Ans. (c)
34. At the point of inflexion, the marginal utility is:
(a) Increasing
(c) Maximum
(b) Decreasing
(d) Negative
Ans. (c)
35. “Production” may be defined as an act of:
(a) Creating utility
(b) Earning profit
(c) Destroying utility
(d) Providing services
Ans. (a)
36. The Scientific Management stressed upon:
1. Rationality
2. Specialization
3. Technical Competence
4. Predictability
Select the correct code:
(a) 1 and 2
(b) 1, 2 and 3
(c) 2, 3 and 4
(d) l, 2, 3 and 4
Ans. (d)
37. Arrange the Maslow’s Need Hierarchy in the descending order:
1. Social
2. Self-Actualization
3. Physiological
4. Ego
5. Security
(a) 3, 5, 1, 4, 2
(b) 3, 5, 1, 2, 4
(c) 2, 4, 1, 3, 5
(d) 2, 4, 1, 5, 3
Ans. (d)
38. According to which theory, leadership is multi dimensional?
(a) Behavioural Theory
(b) Situational Theory
(c) Trait Theory
(d) None of the above
Ans. (b)
39. Which of the following according to Hertzberg are not the motivators?
1. Responsibility
2. Recognition
3. Interpersonal relations
4. Work itself
Ans. (c)
40. The practice of placing a candidate at the right job is:
(a) Selection
(b) Placement
(c) Interview
(d) None of these
Ans. (a)
41. Selection process in any organization is usually proceeded by the
preparation of:
(a) Human resources audit
(b) Operations audit
(c) Human resources inventory
(d) Human resources accounting
Ans. (c)
42. A written statement of the main duties and responsibilities which a
particular job entails is called:
(a) Job analysis
(b) Job specification
(c) Job description
(d) Job evaluation
Ans. (c)
43. Partnership is a form of business organization in which business
debts can be recovered from:
(a) The managing partners
(b) MI the managers and partners
(c) The firm and the managers
(d) The firm and all the partners
Ans. (d)
44. The main objective of Stock Exchange is to:
(a) Provide facilities for speculation
(b) Safeguard the interest of investors
(c) Help in the capital formation in the country
(d) Provide a ready market for securities
Ans. (b)
45. Contango charge is paid by a:
(a) Bull speculator to bear speculator
(b) Bear speculator to bull speculator
(c) Lame duck to bull speculator
(d) Bull to lane duck speculator
Ans. (a)
46. MRTP Act came into force in:
(a) 1969
(b) 1970
(c) 1971
(d) 1980

47. Dumping is an example of:
(a) Monopolistic practice in international trade
(b) Monopoly in international trade
(c) Oligopoly in international trade
(d) Perfect competition in international trade
Ans. (a)
48. A critical activity is defined as one whose:
(a) Total float is zero
(b) Free float is zero
(c) Duration is the longest
(d) None of the above
Ans. (a)
49.‘t’ Distribution was discovered by:
(a) Karl Pearson
(b) Fisher
(c) Laplace
(d) Gosset
Ans. (d)
50. Scheduled bank is that bank which is:
(a) Nationalized
(b) Not nationalized
(c) Bared at foreign country
(d) Include in the second schedule of RBI
Ans. (d)