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					                      Kamran Revision Kit.
                        F1 ACCA.
                  ACCOUNTANT IN BUSINESS
                       March 2011.




                                                    Dedicated to

                                    Shazia Zuberi.




 These MCQs are only helpful to you if you have study and focus on the text book completely. Just only memorizing them
will not help you as we all known that in exams examiner never ask text book questions or definition. You must understand
the underline content. Then only you will be able to pass the exam. We grantee you if you pass these 1107 total MCQs by
                     even 40 percent marks. You will easily clear your F1 in CBE or paper base exam.




                                         Author Kamran Ahmed.
                                                                                                                        1
Chapter 1a. Business Organization and Structure and Strategy.
1. An Organization is a social arrangement which pursues collective goals, which controls its own performance.
A. True
B. False.

2. Organization is not preoccupied with performance.
A. True
B. False.

3. Organization accumulates and share knowledge.
A. True
B. False.

4. Organization enable people to be more ………………………………
A. Limited
B. Educated
C. Productive
D. None of the above.

5. Public sector companies are owned by the …………………………………
A. Foreigner
B. Locals
C. Government
D. NGOs.

6. The organization who converting one resources into another are …………………………….. E.g. Coal into electric.
A. Manufacturing
B. Service industry
C. Retail and distribution
D. Energy Sector.

7. Retailing and Distributors companies extract and refine raw material.
A. True
B. False.

8. …………………………………. Include retailing, distribution, transport, banking, various business services (e.g. Accountancy,
advertising) and public services such as education, medicine etc.
A. Agriculture
B. Manufacturing
C. Energy
D. Intellectual production
E. Service industries

9. Intellectual production companies produce food and beverage products.
A. True
B. False

10. Private Sector companies are owned by the central or local government or agencies.
A. True
B. False



                                                                                                                      2
11. Limited companies term limited liabilities means ………………………………………..
A .Risk is generally restricted to the amount that they have invested in the company
B. Risk is linked to investor personal holdings.
C. That the funds they invest in the company are secured.
D. None of the above.

12. A limited company has a separate legal personality from its owners (shareholders).
A. True
B. False.

13. The ownership and control of a limited company are not legally separate even though they may be vested in the same
individual or individuals.
A. True
B. False.

14. …………………………………………. Controls management and staff, and is accountable to the shareholders, but it has
responsibilities towards both groups – owners and employees alike.
A. Internal Auditors
B. Government agencies
C. NGOs
D. Board of Directors.

15. ……………………………………. Usually consists of career managers who are recruited to operate the business, and are
accountable to the board.
A. External Auditors
B. Internal Auditors
C. Operational management
D. Support Staff.

16. Public limited companies are also known as public sector companies.
A. True               B. False

17. Which of the following is not the advantage of a limited company?
A. Separate legal personality
B. No restrictions on size.
C. Limited Liability
D. Ownership is legally separate from control.
E. Compliance cost.

18. Cooperative are owned by …………………………… who share profit.
A. Workers or Customers
B. Govt. And NGOs
C. Owners and Management
D. None of the above.

19. An organization which is owned by its member rather than outside investors are called …………………
A. Co operatives
B. Limited Company
C. Public Sector Companies
D. Mutual Association or Funds

20. Public sector companies can raise funds from which of the following ways?
A. Raising taxes
                                                                                                                    3
B. Making charges (service charges etc)
C. Borrowing
D. All of the above.

21. Public sector has a problem that they have to pay high rates for their borrowing from their lenders.
A. True
B. False

22. NGOs are directly linked with the local or central government and their prime aim is to make profits.
A. True
B. False

23. Mintzberg’s believes that all organizations can be analyzed into ……………………. Components.
A. 2
B. 4
C. 5
D. 7.

24. Which of the following is component of Mintzberg’s organization model?
A. Strategic apex
B. Techno structure
C. Support staff
D. Operating core
E. All of the above.

25. Strategic apex is the individual who carry out basic work in the organization.
A. True
B. False

26. …………………… are the managers and the management structure work between the strategic apex and operating core.
A. Strategic apex
B. Operating core
C. Support staff.
D. Middle line.

27. Support staff is the help staff in the organization, such as secretarial, cleaning, repair and maintenance staff work.
A. True
B. False

28. Techno structure is staff without direct line management responsibilities, but who provide technical support. That is
IT and Accounts.
A. True
B. False

29. When organization is sub-divided into specialist departments, with each department specializing in a particular type
of activity. E.g. marketing, finance and production. This type of departments are known as
A. Geographic
B. Product / brand
C. Functional
D. Hybrid




                                                                                                                             4
30. One of the disadvantages of Geographical departmentation is its causes duplication and inconsistency in policy.
A. True
B. False

31. …………………………………. Is the division of a business into autonomous regions or product businesses, each with its own
revenues, expenditures and capital asset purchase programmers?’
A. Decentralized
B. Divisionalisation
C. Hybrid
D. Functional.

32. SBU stands for Standard business Understanding.
A. True
B. False.

33. Successful Divisionalisation requires certain key conditions. State which of the following is correct?
A. Must have properly delegated authority
B. Must be large enough to support the quantity and quality of management its need.
C. Must have potential of growth in its own area of operation.
D. Should be scope and challenge in the job of the management of each unit.
E. All of the above .      F. None of the above.

34. Hybrid Structure are ………………………………………………………..
A. Functional Departmentation
B. Divisional Departmentation
C. Have both Functional and Departmental structure at the same management level
D. Mix of all Structures.

35. A simple structure is also known as entrepreneurial structure.
A. True
B. False

36. Which of the following are not the characteristics of simple structure?
A. Wide span of control
B. No middle line or hierarchy
C. Centralized system of command.
D. Group and consciences decision making.
E. Direct control over operating core.

37. ………………………………….. Organizations have an increase use of part time and temporary contracts of employment.
A. Centralize
B. Shamrock organization
C. Matrix
D. Hybrid.

38. Handy called shamrock as flexible firm.
A. True
B. False.

39. Shamrock organization has a fix employment no even in the time of recession or slow growth. They pay heavy
amount on pensions, holiday pay and health insurance.
A. True
B. False.
                                                                                                                      5
40. Shamrock organization self employed professionals are …………………………… (Give 2 best answers)
A. Permanent employee of the company.
B. Top management executives
C. Hired on contact on a project by project basis
D. They are paid in fee for results than of salary.

41. Span of control is also called and known as span of management.
A. True
B. False.

42. Span of control means ………………………………………..
A. Level of management in the organization
B. No of superior looking after one job
C. No of subordinate directly reports to its manager / superior.
D. No of managers responsible for internal control.

43. If manager have 7 subordinate the span of control will be 8.
A. True
B. False.

44. More non supervisory work on the manger will result in a narrow span of control.
A. True
B. False.

45. A tall organization with many management levels has a wide span of control.
A. True
B. False.

46. Scalar Chain means. ………………………………………………
A. No of subordinate reporting to a manager
B. The chain of command from most junior to senior
C. The chain of command from top to bottom
D. The chain of command from most senior to most junior.

47. Delayering is the reduction of the number of management levels from bottom to top.
A. True
B. False.

48. Delayering would:
A. Make an organization taller
B. Make an organization flatter
C. Make no effect.
D. None of the above.

49. In a small organization the span of control will be narrow because the numbers of employees are limited.
A. True
B. False.

50. Narrow span of control mean strict and close monitoring of subordinates which result in de-motivation of employees.
A. True
B. False.



                                                                                                                      6
51. Which of the following is not the level of strategy in the organization?
A. Corporate strategy
B. Business Strategy
C. Expenditure Strategy
D. Operational / Functional Strategy.

52. The distinction between corporate and business strategy arises because of the development of the divisionalised
business organization, which typically has a corporate centre and a number of strategic business units (SBUs).
A. True
B. False

53. The strategy which concerned with what type of business the organization is in is called ………………………
A. Business Strategy
B. Corporate Strategy
C. Market Strategy
D. Functional Strategy.

54. Corporate strategy has a long term impact.
A. True
B. False

55. …………………………………. Mean how an organization approaches a particular product area.
A. Market Strategy
B. Corporate Strategy
C. Employees Management
D. Business Strategy.

56. …………………………. Is a Company division, product line within a division, or single product or company brand that has
an objective and mission different from other company business and that can be marketed independently from the rest
of the company?
A. Operational Strategy
B. Limited Company
C. Strategic business units or SBUs
D. Public Sector Co.

57. …………………………….. Deal with specialized areas of activity.
A. Functional / Operational Strategy
B. Business Strategy
C. Strategic business units or SBUs
D. Public Sector Co.

58. Strategic management is carried out by the senior management and is concerned with direction setting, policy
making and crisis handling it have time frame for implication of 3 to 5 years.
A. True
B. False

59. Operational management (carried out by supervisors and operatives) is concerned with routine activities to carry out
tactical plans. Decisions at this level would deal with short term matters.
A. True
B. False




                                                                                                                       7
60. Tactical management (carried out by middle management) is concerned with establishing means to the corporate
ends, mobilizing resources and innovating (finding new ways to achieve business goals). Decisions made at this level
would have medium term implications.
A. True
B. False.

61. Organizations enable ……………………….: by bringing together two individuals their combined output will exceed their
output if they continued working separately.
A. Synergy
B. Accountability
C. Productivity
D. None of the above.

62. Their a different way that an organization can be different from each other. Which one of the following is incorrect?
A. Ownership / control
B. Activity / legal status
C. Profit and non profitable
D. No of worker and managers
E. Size / source of finance / technology.

63. ………………………………. Are the organizations which acquire raw material and by the application of labor and technology
turn them into product. Or in other words they add value to their purchase.
A. Service industries
B. Agriculture
C. Energy
D. Manufacturing.

64. Cooperatives are owned by workers or customer, which of the following feature is not belongs to it?
A. Open membership
B. Cooperative dissolves if any member quit.
C. Democratic control (one member, one vote)
D. Distribution of the surplus in proportion to purchases
E. Promotion of education.

65. A……………………… span of control results in each manager supervising a small number of employees.
A. Small or narrow
B. Large or wide
C. Tiny
D. None of the above.

66. A …………………… of management occurs when more subordinates report directly to a given manager.
A. Small or narrow
B. Large or wide
C. Tiny
D. None of the above.

67. A …………………………….allows a manager to communicate quickly with the employees under them and control them
more easily
A. Large or wide span of control
B. Small or narrow span of control




                                                                                                                            8
68. …………………………… span of control is economical for the company.
A. Large or wide span of control
B. Small or narrow span of control

69. One of the advantages of the narrow span of control is that its required low management skills.
A. True.
B. False.

70. ………………………………. Span of control is faster and reach the top management in quick time.
A. Large or wide span of control
B. Small or narrow span of control

71. Which of the following is not a part of shamrock organization flower diagram?
A. Self employed professionals
B. Contingent work force.
C. Techno structure.
D. Consumer
E. Professionals.

72. ………………… is recognized in law as a person that can own assets and owe money in its own name. It’s separate in the
law from its owners.
A. Proprietor ship
B. Sole traders
C. Limited company
D. None of the above.

73. The ……………………………… in large companies allows the directors and managers to run the company on their behalf.
A. None executive directors
B. Shareholders
C. Employee’s of the company
D. Customers and civil society.

74. …………………….. is not a criminal activity. It’s allow multinational groups of companies to legitimately to avoid the
payment of tax.
A. Tax evasion
B. Tax service
C. Tax system
D. Tax avoidance.

75. The accounting department is subdivided into three parts. Which of the following is incorrect?
A. Financial accounting
B. Management accounting
C. Treasury or finance dept.
D. Financial advisory dept.

76. Public sector companies are ultimately accountable to ……………………………………..
A. United Nations
B. Prime minister
C. Finance Minister
D. Parliament.




                                                                                                                       9
77. Shamrock organization. …………………………. Pay is tied to organizational performance.
A. Contingent work force.
B. Self Employed.
C. Professional core
D. None of the above.

78. Shamrock organization. ………………………. Are temporary and part time worker who will experience short periods of
employment and long period of unemployment?
A. Contingent work force.
B. Self Employed.
C. Professional core
D. None of the above

79. Which of the following is not the example of Public Sector Company?
A. Government hospital.
B. Government Collages.
C. Wall mart store
D. Police department.

80. NGO and Charities are not required to produce accounts in law.
A. True.
B. False.




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                                                                                                                10
Answers of Chapter 1a.
 1            A        16          B         31 B 46 D 61 A 76                                                              D
 2            B        17          E.        32 B 47 A 62 D 77                                                              C
 3            A        18          A.        33 E 48 B 63 D 78                                                              A
 4            C        19          D         34 C 49 A 64 B 79                                                              C
 5            C        20          D         35 A 50 A. 65 A 80                                                             B
 6            D        21          B         36 D 51 C 66 B 81
 7            B        22          B         37 B 52 A 67 B 82
 8            E        23          C         38 A 53 B 68 A 83
 9            B        24          E         39 B 54 A 69 A 84
 10           B        25          B         40 CD 55 D 70 A 85
 11           A        26          D         41 A 56 C 71 C 86
 12           A        27          A         42 C 57 A 72 C 87
 13           B        28          A         43 B 58 A 73 B 88
 14           D        29          C         44 A 59 A 74 D 89
 15           C        30          A         45 B 60 A 75 D 90
Explanation.
2. Organization is preoccupied with performance.
7. Retail and Dist companies delivering goods to the end users. Above is the definition of manufacturing co.
9. False. They produce software, publishing, films, music etc.
10. Private sector is owned by individuals and others. Govt. Owned public sector companies.
13. The ownership and control of a limited company are legally separate.
16. Public limited is private sector while public sector is govt. Owned companies.
17. Compliance cost one of the disadvantages of the limited co.
18. Co-operatives are businesses owned by their workers or customers, who share the profits.
21. They get advantage of low interest from bank because they are backed up by Govt.
22. They have no link with Govt. And they are none profitable organization.
25. Strategic apex is the top management in the organization. Basic work is done by the operational core.
32. SBU stands for Strategic business unit.
33. Simple structure is a one man show. The apex control and direct all, thing move around him.
36. Simple system there is no middle management. Strategic apexes make all decision.
39. They allow rapid downsizing in slow growth, and safe all expenditure.
43. No then the span of control will also be 7.
45. More level of management result in narrow span of control. Or week span of control.
49. Because in narrow span of control manger control very few subordinates.
67. A narrow span of control allows a manager to communicate quickly with the employees under them and control them more easily
68. It costs less money to run a wider span of control because a business does not need to employ as many managers.
69. It requires a higher level of management skill to control a greater number of employees, so there is less management skill required
70. There are less layers of management to pass a message through, so the message reaches more employees faster.
74. Tax evasion is a criminal activity. Its involve breaking of law for not declaring the income to save tax.
80. They are required to.




                                                                                                                                          11
Chapter 1b. Departments and functions
1. Which of the following is not the element of marketing mix?
A. Product
B. Price
C. Quality
D. Promotion
E. Place

2. Marketing mix is also referred as …………………………
A. 3Ps
B. 4Ps
C. 5Qs
D. 3S

3. A ……………………… product is a product essential or main features.
A. Core product
B. Augmentations
C. Class
D. Form / type

4. Additional benefits which are not directly associated with the product but are complementary with the product are
A. Product Gift
B. Core product
C. Marketing mix
D. Augmentation

5. Product form refers to the different type of product with in a product class. E.g. Car, truck, van, bus etc.
A. True
B. False.

6. …………………………. Is a low price charged to persuade as many people as possible to buy the product in its early stage or
at the time of introduction of the new product?
A. Skimming
B. Penetration pricing
C. Loot sale
D. Stock out sale.

7. ……………………………… is a price which gave company the highest level of profit or company enjoy abnormal profit.
Which restrict lot of people to afford it?
A. Limited time offer
B. Penetration pricing
C. Limited edition.
D. Skimming

8. Price is a weapon against ………………………………..
A. Traders
B. Customers
C. Workers
D. Competitors



                                                                                                                       12
9. When most of the administration work is carried out by the HQ this type of act is known as ………………
A. Head office interference.
B. De-Centralized
C. Centralization
D. Security/control.

10. Which of the following is the role of the finance function?
A. Raising funds
B. Recording and controlling
C. Provide information to the managers
D. Reporting to the stakeholders
E. All of the above.

11. Following are the duties of the financial management. Which one is correct?
A. Investment decisions
B. Financing decisions (how to pay for investment)
C. Dividend decisions
D. Operating decisions which effect profit.
E. All of the above.

12. Management of finance means book keeping, cash handling, invoicing and other financial documentation, in short
accounting.
A. True
B. False

13. ……………………….. Is a market for trading short term financial instruments, bills of exchange and certificates of
deposits?
A. Stock Exchange
B. Bond Exchange
C. Forex Exchange.
D. Money market.

14. Retained earnings mean expectation of profit in coming years.
A. True
B. False.

15. The international money and capital market deal in euro commercial papers, euro bonds, and euro currency
borrowing.
A. True
B. False.

16. According to law, Directors of the company are not responsible for preparing the book of accounts along with detail
of assets and liabilities and the details notes.
A. True
B. False.

17. Working capital consists of the following. State the one which is incorrect?
A. Cash
B. Account receivable
C. Cost of goods sold.
D. Accounts payable
E. Inventory



                                                                                                                      13
18. Large companies are not required to disclose their policies on paying suppliers in their annual financial statement.
A. True
B. False

19. The prime objective of R&D is to do product research not market research.
A. True
B. False

20. ……………………………….. Deal with organization, staffing levels, motivation, employee relations and employee services.
A. Accounts Department
B. Administration
C. R&D
D. HR Department.

21. Which of the following is/are not objectives of human resource management?
A. To meet the organization’s social and legal responsibilities relating to the human resource.
B. To manage an organization’s relationship with its customers
C. To develop human resources that will respond effectively to change.
D. To obtain and develop the HR required by the organization.
E. To create and maintain a co-operative climate of relationship with the organization.

22. Which of the following is false statement about the HRM importance?
A. Its increase productivity by effective training.
B. Its enhance group working by developing multi skilled teams.
C. Its help accounts department in recording transactions.
D. Its reduce staff turnover.

23. Selection is important to ensure the organization obtains people with the qualities and skills required.
A. True
B. False.

24. ……………………………. Enables targets to be set that contribute to the achievement of the overall strategic objectives of
the organization.
A. Selection
B. Interview
C. Learning
D. Appraisal.

25. The reward system should motivate and ensure valued staffs are retained.
A. True
B. False.

26. Downsizing, Training and retraining are not a part of a HR plan.
A. True
B. False.

27. Centralized organization is a one in which authority is concentrated on different places.
A. True
B. False


28. Which of the following are not the advantages of Centralization?
A. Decision are made at one placed and are easy to implement
B. Senior managers can take a wider view of the problem or task or objective

                                                                                                                           14
C. Improve motivation of Jr. Managers as they get chance to take responsibility.
D. Quality of decision due to experts and skills on top level
E. Crisis is handling more quickly and effectively.
F. Policy and procedures are standardizing all over the organization.

29. Which one of the following is potential advantage of decentralization? (PP)
A. Greater control by senior management
B. Risk reduction in relation to operational decision-making
C. More accountability at lower levels
D. Consistency of decision-making across the organization

30. One of the greater advantages of centralized system is that management is in a better position to understand the
local and geographical problems.
A. True
B. False

31. De-centralization is more effective and important in a rapid changing market for decision making.
A. True
B. False

32. Because of communication technology it is now easy for the local management to take decision in decentralized
organization with the help of data and info available from Head office.
A. True
B. False

33. The board of directors of a limited company is an example of ………………………………………. Committee.
A. Standing committee.
B. Ad hoc committee
C. Joint committee
D. Executive committee.

34. ………………………….. Committee has the power to govern or administer.
A. Sub committee
B. Joint committee
C. Executive committee
D. Management committee.

35. ……………………………. Are formed for a particular purpose on a permanent basis. Their role is to deal with routine
business delegated to them at weekly or monthly meetings.
A. Management Committee
B. Standing committees
C. Executive Committee
D. Ad hoc Committee

36………………… Committee formed for a specific task or objective, and dissolved after the completion of the task or
achievement of the objective.
A. Standing committee.
B. Ad hoc committee
C. Joint committee
D. Executive committee.




                                                                                                                       15
37. A committee that is a subset of a larger committee is called a subcommittee. Or which is appoint by the committee
it’s self to solve or help in some of its own work.
A. True
B. False

38. ……………………… is original research to obtain new scientific or technical knowledge or understanding.
A. Applied Research
B. Development Research
C. Pure Research
D. Process Research

39. ……………………………….. Is the use of existing scientific and technical knowledge to produce new and improved product
or systems?
A. Pure Research
B. Process Research
C. Product Research
D. Development Research

40. …………………………. Research is also like the pure research but have a particular aims or subject.
A. Process
B. Product
C. Development
D. Applied

41. Process research is based on creating new products and developing existing ones.
A. True
B. False

42. Which of the following is not the purchasing mix?
A. Quality
B. Quantity
C. Price
D. Promotion
E. Delivery

43. Purchasing is 'the acquisition of material resources and business services for use by the organization.
A. True
B. False.

44. Production management. Which of the following is not the long term decision?
A. Selection of equipment and process
B. Job design and method
C. Inventory control.
D. Factory location and lay out
E. Ensuring the right no of employee’s.

45. Production management. Which of the following in not the short term decision?
A. Production and control
B. Selection of equipment and factory.
C. Quality control / maintenance
D. Inventory control / labor control



                                                                                                                        16
46. Services are tangible in nature and can be stored.
A. True
B. False

47. Selected kind of services purchases results in transfer of property.
A. True
B. False.

48. The……………………… function manages an organization’s relationships with its customers.
A. H R
B. Production
C. Sales
D. Marketing.

49. Marketing support the direct sales force by mean of telemarketing, respond to inquiries, and customer data
management etc. It also supports the sales by providing brochures and catalogues to the customers.
A. True
B. False

50. Customers will buy whatever we produce – our job is to make as many as we can'. (Demand exceeds available
supply.) Is an example of ………………………………………………….
A. Market orientation
B. Sales orientation
C. Product orientation
D. Production orientation.

51. Customers are naturally sales resistant so the product must be sold actively and aggressively and customers must be
persuaded to buy them is an example of sales orientation.
A. True
B. False

52. Product orientation, a variant of production orientation means ………………………………………………..
A. Customers are naturally sales resistant so the product must be sold actively and aggressively and customers must be
persuaded to buy them
B. Customers will buy whatever we produce – our job is to make as many as we can
C. Add more features to the product – demand will pick up
D. None of the above.

53. Research is further divided into 3 parts. Which of the following is incorrect?
A. Pure research
B. Applied research
C. Development Research
D. Functional Research.

 54. Process research involves attention to how the goods/services are produced. Process research has these aspects.
State the incorrect.
A. Processes
B. Productivity
C. Planning
D. Quantity
E. Quality Management.



                                                                                                                         17
55. Marketing activities in organizations can be grouped broadly into four roles. Which of the following is incorrect?
A. Sales Support.
B. Feed back.
C. Marketing Communication
D. Operational management.
E. Strategic management.

56. Marketing orientation means. ……………………………………………
A. Add more features to the product – demand will pick up'. Such firms do not research what customers actually want.
B. Customers are naturally sales resistant so the product must be sold actively and aggressively and customers must be persuaded to buy them.
C. Customers will buy whatever we produce – our job is to make as many as we can'
D. The key task of the organization is to determine the needs, wants and values of a target market and to adapt the
organization to delivering the desired satisfactions more effectively and efficiently than its competitors.

57. Marketing management aims to ensure the company is pursuing effective policies to promote its products, markets
and distribution channels. This involves exercising strategic control of marketing, and the means to apply strategic control
is known as the……………………………
A. Marketing Audit.
B. Sales Audit.
C. Internal Audit.
D. Corporate Audit.

58. AIDA stands for……………………………………..
A. Awareness, Interest, Desire and Attitude.
B. Accountability, Information, Desire and Action
C. Awareness, Interest, Desire, Action
D. None of the above.

59. ABC Corporation hired three members in the account department under the post of 1. Financial Accountant. 2.
Management accountant. 2. Treasurer. Which of the following two are the responsibilities of financial accountant?
A. Prepare the financial statement for the company.
B. Budget analysis and control.
C. Invest surplus cash funds in the money market.
D. Provide accounting reports and data to other departments.

60. Which of the following are not the duties of the committee secretary?
A. Fixing the date and time of the meeting
B. Choosing and preparing the location of the meeting
C. Arranging entertainment activity for the members.
D. Preparing and issuing various documents




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Answers of Chapter. 1b.
  1      C      11       E       21       B      31       A      41 B 51 A
  2      B      12       A       22       C      32       A      42 D 52 C
  3      A      13       D       23       A      33       D      43 A 53 D
  4      D      14       B       24       D      34       C      44 C 54 D
  5      A      15       A       25       A      35       B      45 B 55 B
  6      B      16       B       26       B      36       B      46 B 56 D
  7      D      17       C       27       B      37       A      47 B 57 A
  8      D      18       B.      28       C      38       C      48 D 58 C
  9      C      19       A       29       C      39       D      49 A 59 AD
 10      E      20       D       30       B      40       D      50 D 60 C
Explanation.
14. Profit earned by the company kept with it for future needs.
16. It’s the responsibility of the director to prepare the books of the company.
18. No they are required to do so.
19. The real work is product. They will also do market work but mandatory.
26. They are part of HR plan
27. Authority is at one place.
30. Locals problem are better solved in De-Centralized system.
41. Process research is to improve the method of making things. Mean reducing steps and improving quality.




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                                                                                                         19
Chapter 2. Information technology and system
1. Information should be obtained at any cost, regardless of its benefits.
A. True
B. False.

2. The quality of good information is described in a mnemonic as “ACCURATE”.
A. True
B. False.

3. Information that is not needed for a decision should be omitted, no matter how 'interesting' it may be.
A. True
B. False.

4. Executive support system and Executive information system are two different things?
A. True
B. False

5. Executive support system is an information system for ………………………………………… executives.
A. Junior
B. Middle line
C. Senior
D. None of the above.

6. (ESS) Executive support system pool data from …………………………….
A. Internal Sources
B. External Sources
C. Out Sources
D. Both internal and external.

7. Management information system provides information to management, of a routine or non-routine nature, by
analyzing data and converting it into organized information.
A. True
B. False.

8. Management information system mainly rely information which collected from ……………………………………..
A. Internal Sources
B. External Sources
C. Out Sources
D. Both internal and external

9. ……………………………………. Is an internal computer system within an organization that uses the internet to link distance
terminal to main or central server? Or network is used to connect to the main system of the organization.
A. Internet
B. Extranet
C. Intranets
D. Cable and wire.

10. Intranet system cannot connect to other systems or terminals by internet.
A. True
B. False



                                                                                                               20
11. Intranet is a mini version of internet.
A. True
B. False.

12. ………………………. Is a system which allows organization external users such as supplier or customers to access the
main/other network system with a valid username and password on all areas which are permitted to visit or viewed?
A. Internet
B. Extranet
C. Intranets
D. Cable and wire.

13. Extranet is an advance version of intranet with special features.
A. True
B. False.

14. Management information system (MIS) provide structured information (Organized information) and have an internal
focus.
A. True
B. False.

15. Decision support system (DSS) are system that provide support for managers in making decision for
………………………….. Problems.
A. Structured
B. Visible
C. Documented
D. Unstructured or Semi structured.

16. Spread sheet is an example of …………………………………. System, it is also flexible and user friendly and helpful in
decision making.
A. Management information system
B. Expert System
C. Decision support System
D. Knowledge work system.

17. Legal advice system, investment advice system, medical diagnosis system and tax advice system are the example of.
A. Management info system
B. Transaction processing system
C. Knowledge work system
D. Expert system

18. Expert system is a ……………………………..
A. Computer system which help in productivity rise
B. Computer system which help to educate people
C. Computer software with artificial intelligence of expertise.
D. Record and perform routine transactions.

19. Expert system used database of facts and rules for decision making. Eg bank credit approval system.
A. True
B. False.

20. ………………………. Are information systems that facilitate the creation and integration of new knowledge into an
organization?
A. Management info system
                                                                                                                    21
B. Transaction processing system
C. Knowledge work system
D. Expert system

21. Which of the following are not the examples of Office Automation System (OAS).
A. Word processing, desktop publishing, and digital filing systems
B. E-mail, voice mail, videoconferencing, groupware, intranets, schedulers
C. Spreadsheets, desktop databases
D. Personal Security system.

22. Staff themselves are one of the prime source of internal information.
A. True
B. False.

23. ………………………………… is a process of gathering, analyzing, and dispensing information for tactical or strategic
purposes
A. Physical information
B. Internet
C. Environmental scanning
D. Management information system

24. Research and development (R & D) work often relies on information about other R & D work being done by another
company or by government institutions.
A. True
B. False

25. …………………………..focuses attention on those items where performance differs significantly from standard or budget.
A. Exception reporting
B. Internal Audit
C. Environmental scanning
D. External Audit.

26. Gordon works in the accounts department of a retail business. He and his colleagues are looking at the sales figures
for various types of clothing. The director asks them to use exception reporting to summaries their findings. Which of the
following correctly defines the concept of ‘exception reporting’ within a business context? (BPP RK)
A. The reporting of exceptional events, outside the normal course of events.
B. The analysis of those items where performance differs significantly from standard or budget.
C. The preparation of reports on routine matters on an ‘ad hoc’ basis.
D. The scrutiny of all data as a matter of course saves in exceptional circumstances

27. Organization required information for a range of purposes. Which of the following is incorrect?
A. Planning
B. Controlling
C. Decision Making
D. Entertainment.

28. Data consists of numbers, letters and symbols and relates to facts, events and transactions.
A. True
B. False

29. Information about personnel will be linked to the…………………….. System.
A. Production
B. Accounting
                                                                                                                        22
C. Auditing
D. Payroll

30. Database management system (DBMS) is best describe as …………………………………………………..
A. Database that is used to record old records
B. Tool needs to increase productivity and effective internal control.
C. Is a type of Database auditing which work as a check and balance for data security?
D. Software that manages a database dealing with all aspect of access of data, file maintenance and data security.

31. Which of the following about database advantages are not correct?
A. Database avoids duplication of data.
B. New software can easily be linked with the data base to create new reports etc.
C. There are no problem about data security and privacy.
D. Data can be process as per the requirement of the user
E. Confecting of date in different departments is reduce.

32. Standard software available for creating simple database are very costly as compare to organization self created
database.
A. True
B. False

33. The ……………………… is a global network connecting million of computer. It is used to send and received information
from any location.
A. Intranet
B. Extranet
C. Internet.
D. Cable.

34. ………………………………….. Consist of data analysis models, and may have access to database to extract data for analysis.
It should provide the user with information about a number of different alternatives or different possible outcome.
A. Management information system
B. Expert System
C. Decision support System
D. Knowledge work system.

35. Environment auditing and environmental scanning are two names of one thing.
A. True
B. False.

36. Which one of the following is not the characteristic of a database?
A. It should be shared
B. It should be providing for the need and requirement of different users when needed.
C. It is a deemed to safe and secure in any condition including physical and technical.
D. It should have the capacity to overcome future needs. Or have the tendency to update in future.

37. Database has the tendency to overcome any error by human posting. It automatically detects the error and beef
alert.
A. True
B. False.

38. Data and information come from both inside and outside sources of an organization.
A. True
B. False.
                                                                                                                       23
39. The measures an organization can take to protect information and information systems can be classified into which
three of the following?
A. Security controls
B. Disclosure controls
C. Integrity controls
D. Contingency control.

40. An expert system always provides the correct solution to a problem.
A. True
B. False.

41. Which one of the following is incorrect source of environmental scanning information?
A. Consultants and other information bureau
B. Newspaper and other magazines.
C. Libraries and other electronics data source.
D. Company internal data information
E. The government.

42. A …………………………… is a collection of structural data.
A. Database
B. Database management system
C. Work sheet
D. Module.

43. A …………………………. performs and records routine transactions, at an operational level.
A. Executive Support System (ESS)
B. Knowledge Work System (KWS)
C. Decision Support System (DSS)
D. Transaction Processing System (TPS)

44. An ESS is a strategic-level system and DSS a management-level system
A. True.
B. False.

45. ……………….. is the system by which organizations are directed and controlled by their senior officers.
A. Corporate governance
B. Strategic management
C. Executive directorship
D. Internal controls

46. S.R.T University installs a main frame computer in its IT department which has 45 terminals. Each terminal leads to
different officials of the university, from where they can access installed information. External users are not allowed to
use this system. Employees can also access internet for office use through this system. This is known as………….. System.
A. Intranet
B. Extranet
C. Internet.
D. Cable net.



47. Sigma distributors have installed a computer at its main office which can be connected via internet. Sigma has 235
different dealers. All dealers have given a valid user name and password so they can access authorized area and their
account status from their offices and gave online orders and check inventory levels etc. Sigma has no online website.
What kind of system is this?
                                                                                                                         24
A. Intranet
B. Extranet
C. Internet.
D. Cable net.

48. Management / Tactical information is required to deal with cash flow forecasts and working capital management.
A. True.
B. False.

49. ………………………… is help to performed in typical office such as document management, facilitating communication
and managing data.
A. Knowledge Work System.
B. Expert System.
C. Decision Support System.
D. Office Automation System.

50. Sophisticated software’s, accounting programs, and others skill and knowledge base programs are an example of
A. Knowledge Work System.
B. Expert System.
C. Decision Support System.
D. Office Automation System.

51. ……………………………. Systems are used at operational level for routine processing of data items and transactions. That
is inventory system and sales/purchase order processing system.
A. Knowledge Work System.
B. Expert System.
C. Transaction processing system.
D. Office Automation System.




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Answers of Chapter. 2.

         1 B               11         A       21        D       31        C       41         D       51         C
         2 A               12         B       22        A       32        B       42         A
         3 A               13         A       23        C       33        C       43         D
         4 B               14         A       24        A       34        C       44         A
         5 C               15         D       25        A       35        B       45         A
         6 D               16         C       26        B       36        C       46         A
         7 A               17         D       27        D       37        B       47         B
         8 A               18         C       28        A       38        A       48         A
         9 C               19         A       29        D       39        B       49         D
        10 B               20         C       30        D       40        B       50         A
Explanation.
1. Information should be cost effective.
4. ESS is also called EIS.
10. False because in large organization data is held in one place and it is connected by internet.
16. Because it have analytical capabilities.
37. Database gave results what is entered. If you put garbage it gave you the same. It is not self corrected.
41. Environmental scanning gather information from outside not from inside.




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                   Chapter 3. Influences on organization culture.
1. ………………………. Is the collective programming of the mind which distinguishes the members of one category of people
from another?
A. Organization
B. Community
C. Culture
D. Values

2. Power culture is also known as …………………………………… culture.
A. Role
B. Task
C. Club
D. Personal

3. ………………………………. Is the GOD of power culture?
A. Athena
B. Dionysus
C. Apollo
D. Zeus

4. Power Culture is best considered for ……………………………. Organization.
A. Limited Companies
B. Large organizations
C. Government owned
D. Small size entrepreneurial Org.

5. Power Culture. Control remains in the central point. Organization is capable of adopting change quickly.
A. True.
B. False.

6. No matter how long the size of the organization power culture remains strong and effective.
A. True
B. False.

7. ………………………….. Culture is also known as bureaucracy culture.
A. Role
B. Task
C. Power
D. Personal

8. …………………… is the GOD of role culture.
A. Athena
B. Dionysus
C. Apollo
D. Zeus

9. The Responsibilities of each individual are defined by the job in the role culture, worker are not allowed to over step
their limits.
A. True
B. False.



                                                                                                                             27
10. Role / Apollo organizations are very effective in small working group or small companies.
A. True
B. False

11. Task culture is also known as ……………………………………
A. Athena
B. Dionysus
C. Apollo
D. Zeus

12. In the task culture the focus is on the other things i:e rules, procedures, and system.
A. True
B. False

13. Task culture (Athena) there is a clear leader to control the project team or role team.
A. True
B. False

14. Task culture is very cheap and economical.
A. True
B. False.

15. Task culture is well suited to an organization that is continually facing new problems and challenges. IT and
Knowledge base etc.
A. True
B. False.

16. Personal culture is also known as …………………………………………….
A. Athena
B. Role
C. Existential culture
D. Power culture.

17. Power culture the entire organization structure is built around one individual or a group of individuals. The rest of the
organization exists to serve the needs of the central individual.
A. True
B. False.

18. …………………………….. Is the GOD of personal culture.
A. Athena
B. Dionysus
C. Apollo
D. Zeus

19. ……………………… refers to the way in which power is dispersed within the organization.
A. Uncertainty avoidance
B. Individualism
C. Masculinity
D. Power distance.

20. When subordinate expect involvement and participation in the decision making in power culture is known as
A. Low power distance culture
B. High power distance culture.
                                                                                                                          28
21. High power distance culture expects more decentralization and top-down chain of command with no supervision.
A. True
B. False.

22. When the interest of the individual come before the collective interest of the group this is called
A. Uncertainty avoidance
B. Masculinity
C. Individualism
D. Power Distance.

23. Which of the following is not the type of culture Harrison classified in his type of cultures?
A. Power Culture
B. Masculinity
C. Role Culture
D. Task
E. Personal culture.

24. Which of the following is not the model of Hofstede’s model?
A. Power distance
B. Uncertainty avoidance
C. Task Culture
D. Individualism
E. Masculinity.

25. When a group feels threatened and endangered by unexpected and unfamiliar happenings is called
A. Power distance
B. Uncertainty avoidance
C. Task Culture
D. Individualism

26. Uncertainty avoidance organization have written rules & regulation, specialists & experts, and standardization.
A. True
B. False

27. Value of modesty, tenderness, consensus, focus on relationships and quality of working are quality of a man.
A. True
B. False.

28. An informal organization never exists alongside the formal one.
A. True
B. False.

29. The ………………………………… organization is a network of personal and social relationships.
A. Formal
B. Informal
C. Stakeholder
D. None of the above.

30. Which of the following are not the features of informal organization?
A. Its accepts social relationship and grouping within or cross formal structure.
B. It’s have informal way of communication. Grapevine, bush telegraph or others.
C. Its working style are bureaucrative
D. Power influence structures.
                                                                                                                      29
31. The focus of the informal organization are people not the work.
A. True
B. False.

32. Which of the following are the benefits of informal organization?
A. Employees are satisfied, lack of absenteeism and low turnover.
B. Informal org. Gave knowledge to its worker through informal networks.
C. Speed of the informal org. Is very fast and effective as compare to formal one.
D. All of the above.

33. Informal work practice may cut corners, violating safety or quality assurance measures.
A. True
B. False.

34. …………………………. Are those individuals or groups that, potentially, have an interest in what the organization does.
A. General people
B. Investors
C. Auditors
D. Stakeholders.

35. Which of the following is not the type of stake holder?
A. Internal
B. Connected
C. Observer
D. External.

36. Internal stake holders are the government, community and pressure groups.
A. True
B. False.

37. Which of the following are the connected stakeholders of the company?
A. Government, community and pressure groups
B. Employees and management of the company
C. Suppliers, bankers, customers and shareholders
D. Police, NGOs and Army.

38. A primary stakeholder is one whose financial or personal situation is correlated directly with the performance of a
business. There are 2 type of primary stakeholders first is internal and other is connected.
A. True
B. False.

39. Secondary stake holders are called external stakeholders who have no direct link in personal or finance in the
company.
A. True
B. False
40. Stakeholders and shareholder of the company mean the same
A. True
B. False

41. Power of the stakeholder. The key players are found in the group D those are key customers and decision makers.
A. True
B. False.


                                                                                                                          30
42. Power of the stakeholders. The stakeholder in the group C (large institute and shareholders) should be kept satisfied
because?
A. They love to have knowledge
B. They are in the high power and high interest zone
C. They can move to level A at any time
D. Then can move to the key player level D at any time.

43. The stakeholder in the level B (community and charity) is not important at all.
A. True
B. False.

44. Culture develops over time and can change instantly as a result of single major event. E.g. death of the owner etc.
a. True
b. False.

45. Which of the following is not the culture classified by Harrison.
A. Power Culture
B. Role Culture
C. Power Distance.
D. Task Culture
E. Existential or Person culture.

46. Which of the following is also called as club or spider web culture.
A. Power Culture
B. Role Culture
C. Task Culture
D. Existential or Person culture.

47. Which of the following statement about power culture is incorrect?
A. The organization is capable of adapting quickly to changes.
B. Personal influence decrease as the size of the organization grows over 20 people.
C. Leader has direct communication with rest of the employee’s.
D. These type of organization have strict bureaucratic rules and regulations.
E. These Organizations are club of like minded people introduce by like minded people.

48. Army, Navy, Air Force, Police and intelligence agencies are example of …………………………… culture.
A. Power Culture
B. Role Culture
C. Task Culture
D. Existential or Person culture.

49. Role culture organization relay on formal communication rather than informal communications and are best for large
formal organizations.
A. True.
B. False.

50. Blue soft corp. has a task to develop a banking software for one of its client. Mr. James was the project in charge
while Mr. Remand was the lead programmer. Staff respect and accept the authority of Mr. Remand because of its skills
and knowledge he have and shown in this project rather than the project in charge. What kind of culture is blue soft corp. is?
A. Power Culture
B. Role Culture
C. Task Culture
D. Existential or Person culture.
                                                                                                                           31
51. IT companies, knowledge base companies, construction and building companies are the example of
A. Power Culture
B. Role Culture
C. Task Culture
D. Existential or Person culture.




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Answers of Chapter. 3.

  1        C        11        A       21        B       31 A             41         A       51        C
  2        C        12        B       22        C       32 D             42         D       52
  3        D        13        B       23        B       33 A             43         B       53
  4        D        14        B       24        C       34 D             44         A       54
  5        A        15        A       25        B       35 C             45         C       55
  6        B        16        C       26        A       36 B             46         A       56
  7        A        17        A       27        B       37 C             47         D       57
  8        C        18        B       28        B       38 A             48         B       58
  9        A        19        D       29        B       39 A             49         A       59
  10       B        20        A       30        C       40 B             50         C       60
Explanation.
6. Power culture is effective if the size is under or near 20 people.
10. Best for stable organization when large and when the work is predictable.
12. In Task culture the main focus is on the task to complete it in the best effective way.
13. There is no dominated or clear leader.
14. Task culture is expensive because expert charge market price.
21. Greater Centralization and top down chain of command and closer supervision.
27. These are the qualities of a men / masculinity.
28. It’s always exists with the formal one.
37. Internal stakeholders are the company employees and the management.
38. Stakeholder has link in personal or finance like employee or bank. While shareholders are the owner of the co.
43. They are important and they should be kept informed.




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                                                                                                                     33
Chapter 4. Ethical considerations.
1 …………………………. Played a very important role in development of the rules for the individuals and many of them are
still in place today.
A. Sports
B. Culture
C. Religion
D. Tribe.

2. There are three main sources of rules that regulate behavior of individuals and businesses. State the one which is
incorrect.
A. The law
B. Non-legal rules and regulation
C. Ethics
D. Customs

3. Ethical behavior is seen as the highest level of behavior that society expects.
A. True
B. False

4. All managers have a duty of faithful service to the external purpose of the organization and this lies most heavily on
the shoulders of those at the …………………………………………..
A. Internal auditors
B. Strategic apex
C. External auditors
D. Accountant Dept.

5. Organization are autonomous, they exist to serve their own purpose or those of their senior managers or
management.
A. True
B. False

6. ………………………… is a set of moral principles to guide behavior.
A. Rules
B. Ethics
C. Laws
D. Regulation

7. Ethical thinking is also influenced by the concepts of virtue and rights.
A. True
B. False

8. …………………………………… consists of the customs, attitudes, beliefs and education of society as a whole, or of different
groups in society.
A. Political environment
B. Ethical environment
C. Social environment
D. Corporate environment

9. ………………………………….. Environment consists of a set or sets of well-established rules of personal and organizational
behavior.

                                                                                                                            34
A. Corporate
B. Social
C. Political
D. Ethical

10. Political environment is in which an organization operates consists of laws, regulations and government agencies.
A. True
B. False.

11. The certainty of legal rules strongly exists in ethical theory?
A. True
B. False

12. The term Deontology means ……………………………. In Greek.
A. Fraud
B. Rules
C. Duty
D. Teeth and Gums.

13. The concept of Utilitarianism was propounded by ………………………………
A. Kent
B. Maxwell
C. Herzberg
D. Jeremy Bentham.

14. Kent believe that ………………………………..
A. Rule should not be followed if their results are not favored.
B. Rules should only be followed if they suit you
C. Rules must be obeyed no matter what the consequences may be.
D. Rules and regulations are not important at all.

15. Rights and Virtues mean that individuals have natural inherent rights that should not be abused.
A. True
B. False

16. In production and product : ………………. Have the responsibility to ensure that public and their own employees are
protected from danger.
A. Internal auditors
B .Mentors
C. Trainers
D. Managers.

17. …………………………… refer to the payments for service to which a company is not legally entitled. E.g. Donation for
election to political party.
A. Extortion
B. Grease money
C. Bribery
D. Gifts.

18. Peter is a project director in ENL limited. He was facing problem in obtaining the NOC from the local authority to start
it works which his company was legally entitle. The Local officer was asking some money to speed up the process which
was given 1000 $ by Peter.
The act of the Peter is an example of ……………………………………
                                                                                                                         35
A. Extortion
B. Grease money
C. Bribery
D. Gifts.

19. Organization social responsibility action is likely to have an adverse effect on shareholders' interests.
A. True
B. False.

20. Social responsibility hit shareholder interest in the following way. Select the one incorrect.
A. Additional cost in order to protect environment and implement safety laws.
B. Resources utilize on social objective which reduce funds, productivity and profits.
C. Diversion of employee efforts in work.
D. Its increase short term stock price
E. Diversion of funds in social projects.

21. An environmental audit is useful in assessing which particular areas of your business impact on the environment, and
to what extent. An audit is also an effective risk management tool which enables you to check how effectively your
business acts in accordance with environmental legislation.
A. True
B. False.

22. Environment auditing and environmental scanning are two names of one thing.
A. True
B. False.

23. In ethical climate of an organization leader set an example. Senior manager are also symbolic managers.
A. True
B. False.

24. ………………………………… means that company should acts with in the letter of the law, and that violations are
prevented, detected and punished.
A. Ethical practice
B. Integrity based program
C. Compliance based approached
D. None of the above.

25. Only professional accountants not students are expected to behave in accordance with the professional code of
ethics, and to maintain standards of moral behavior that are expected from a professional body.
A. True
B. False.

26. Whistle blower is a person who ……………………………………………………..
A. Use to blower whistles while working
B. Warn you when there is a fire or other emergency in the organization
C. Disturb the worker with his poor habits
D. Disclosure by an employee of illegal, immoral or illegitimate practice on the part of the organization or body of people.

27. What is the key reason for an accountant to act or behave ethically?
A. The accountant impression and personality will increase.
B. In order to secure this job it is required to do so.
C. This ethical behavior serves to protect the public interest.
D. To avoid accountability.
                                                                                                                         36
28. A set of guidance are given in order to understand an individual judge whether or not they are acting ethically in
particular condition are called …………………………………….
A. Rules of Business
B. Code of Conduct / Ethics
C. Principles
D. Regulations.

29. ……………………………………………….. Is an international body representing all the major accountancy bodies across the
world. Its mission is to develop the high standards of professional accountants and enhance the quality of services they
provide.
A. IFAC
B. GAAP
C. IAS
D. ACCA.

30. IFAC ………………………………….. Establish a code of ethics.
A. Audit committee
B. Ethic’s committee
C. Regulation committee
D. Accountants committee.

31. Which of the following one is not the professional quality of an accountant?
A. Independence
B. Skepticism
C. Accountability
D. Respect
E. Social responsibility.

32. An Accountant should complete it work without bias or prejudice and should also be seen independent.
A. True
B. False.

33. Which of the following is the personal quality of an accountant? State the one incorrect.
A. Reliability and Respect
B. Courtesy
C. Responsibility and Timeliness
D. Skepticism

34. Organization founder acts and habits can influence the organization culture.
A. True.
B. False.

35. The law is the minimum level of behavior required any standard of behavior below it is considered illegal and
warrants punishment by society.
A. True.
B. False.

36. Society we live in can exist without rules and standards.
A. True.
B. False.




                                                                                                                         37
37. Managers have a fiduciary responsibility (or duty of faithful service) in this respect and their behavior must always
reflect it.
A. True.
B. False.

38. Is this possible that a manager who didn’t get any material benefit themselves can still held responsible for not
fulfilling the principle of fiduciary duty.
A. True.
B. False.

39. Ethics in organization. Companies have to follow legal standards, or else they will be ……………………
A. No law in order in the organization.
B. Poor production and quality issues.
C. Subject to fine by authorities and their officers might also face similar charges.
D. A big cut in the corporate earnings.

40. Ethics in organization. Some time managers have to do some payments to government or municipal officials who
have the power to help or hinder the payers operation. Which one of the following is not correct?
A. Extortion.
B. Bribery
C. Grease money
D. Govt. Taxes
E. Gifts.

41. Whistle blowing frequently involves financial benefits for the whistleblower.
A. True.
B. False.

42. Key reasons for accountants to behave ethically: State the one incorrect?
A. Ethical issues may be a matter of law and regulation and accountants are expected to apply them
B. The profession requires members to conduct themselves and provide services to the public according to certain
standards. By upholding these standards, the profession’s reputation and standing is protected
C. Accountant has a fear for losing his job.
D. An accountant’s ethical behavior serves to protect the public interest.




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                                                                                                                            38
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Answer Chapter 4. Ethical considerations.

   1        C       11         B         21        A       31 D              41         B      51
   2        D       12         C         22        B       32 A              42         C      52
   3        A       13         D         23        A       33 D              43                53
   4        B       14         C         24        C       34 A              44                54
   5        B       15         A         25        B       35 A              45                55
   6        B       16         D         26        D       36 B              46                56
   7        A       17         C         27        C       37 A              47                57
   8        C       18         B         28        B       38 A              48                58
   9        D       19         A         29        A       39 C              49                59
  10        A       20         D.        30        B       40 D              50                60
Explanation.
5. They exit to serve the external purpose and managers are responsible for it.
12. The certainty of legal rules does not exist in ethical theory
19. Because its reduce profit and increase cost. E.g. Water treatment plant.
22. False Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic
purposes
25. Both must follow.
27. A is also a good choice but C is the best one.
33. RRRTC. Remember none of the professional quality start with these 5 letters. Just remember RRRTC.
38. Yes because some time they do certain things that gave them inner satisfaction and those result as negative for the
org.
42. Whistle blowing frequently involves financial loss for the whistleblower.




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                                                                                                                         39
Chapter 5. Corporate governance and social responsibility.
1. Stewards are the owner of a company. They are not accountable to anyone.
A. True
B. False

2. Shareholders of the company can dismiss the steward or the executive management of the company.
A. True
B. False.

3. Shareholder of the company received relevant information of the company by …………………………….. Source.
A. News papers and magazines
B. TV or News channels
C. Emails or by stock exchanges
D. Audited accounts / annual reports.

4. Agency theory of management states that managers …………………………………………………….
A. Should manage the organization that will benefit the stake holders
B. Should manage the organization that will benefit the Shareholders only
C. Management seeks to service their own interest and only look after the performance of the company.
D. Manager has the duty of care, for all the stake holders and share holder of the company.

5. ………………………… states that management has a duty of care, not just to the owners of the company in terms of
maximizing shareholder value, but also to the wider community of interest, or stakeholders.
A. Stewardship theory
B. Agency Theory
C. Stakeholder theory
D. Governance theory.

6. …………………………… is the system by which organization are directed and controlled by senior officers or management.
A. Procedure
B. M I S
C. Corporate governance.
D. Operational management.

7. Which of the following is not the feather of poor corporate governance?
A. Dominate by single individual / Lack of involvement of the board
B. Lack of adequate control function / Lack of supervision
C. Lack of independent scrutiny / lack of contact with shareholders
D. Emphasis on short term profitability / Misleading accounts and information
E. None of the Above.

8. In few cases it is observed that Board is dominated by a single senior executive while other members merely acting like
a rubber stamp.
A. True
B. False.

9. In most countries, what is the usual purpose of codes of practice on corporate governance? (BPP)
A. To establish legally binding requirements to which all companies must adhere
B. To set down detailed rules to regulate the ways in which companies must operate
C. To provide guidance on the standards of best practice that company should adopt
D. To provide a comprehensive framework for management and administration

                                                                                                                       40
10. The performance of the Director in the board cannot be assessed by the board.
A. True
B. False.

11. One tier board is also known as unitary system.
A. True
B. False.

12. …………………………… is the type of board in which board of directors are legally charged with the responsibility of
govern the company.
A. One tier board / unitary system.
B. Two tier board
C. Non Executive board
D. Supervisory board.

13. …………………………system there is an executive management board of directors and this is monitored by a supervisory
board of directors.
A. Single type BOD
B. One tier board / unitary system
C. Supervisory board
D. Two tier board

14. Which of the following task should not to be performed by the board of directors?
A. Monitoring the C.E.O and overseeing strategy
B. Monitoring the human capital including training, morale, and remuneration etc.
C. Monitoring risk and control system.
D. Interfere management daily business operations.

15. The board of directors should be of same knowledge and work experience to have a uniform policy.
A. True
B. False.

16. Member of the board of Director. Directors are needless to have relevant expertise in industry, company function
area and governance.
A. True
B. False

17. Member of the BOD are recommended by the …………………………….. Committee.
A. Director
B. Audit
C. Nomination
D. Security

18. Higgs report stresses that it is the responsibility both of the Chair to decide what information should be made
available, and directors to satisfy themselves that they have appropriate information of sufficient quality to make sound
judgments.
A. True
B. False.

19. Higgs report suggests that the appraisal of the board performance should be done 4 times a year.
A. True
B. False.


                                                                                                                       41
20. Directors of a company are accountable to …………………………………. Of the company.
A. Management
B. CEO
C. Share holders
D. General Public.

21. What is the key risk associate, if the director’s accountability is associate to its performance?
A. That he will get angry
B. Over work will cause negative effect on this heath.
C. Interference in other people work.
D. Attention being diverted away from making the company profitable, potentially damaging the long-term success of the
business

22. Non-executive directors have executive (managerial) responsibilities.
A. True
B. False

23 …………………………. Are responsible for determining appropriate levels of remuneration for executive directors and
other senior managers.
A. Directors
B. Non Executive Directors
C. Board of executives
D. Senior management

24. Audit and remuneration committee should have equal member of executive and non executive directors.
A. True
B. False.

25. Remuneration committee should also decide the fees and benefits for the NEDs.
A. True
B. False.

26. Non executive directors are entitled to get pension after retirement.
A. True
B. False.

27. The nomination committee should consist of a majority of ……………………………………..
A. Non-executive directors
B. Executive directors
C. Independent / Outsource experts
D. CEO and Chairman.

28. ………………………………….Can provide help and assistance in the case of any problem facing by the external auditors.
A. Government
B. Employees union
C. Internal auditors
D. Audit committee.

29. External auditors are appointed and remove by the …………………………….. Committee of the board of directors.
A. Accounts committee
B. Risk control
C. Audit committee
D. Nomination committee.
                                                                                                                   42
30. Which of the following is not the duty of the audit committee?
A. Review of the financial statement
B. Liaison with external auditors / review of internal auditor
C. Review of the internal control / Investigation
D. Review of the financial risk or risk management.
E. None of the above.

31. Which of the following is not the social responsibility strategy?
A. Proactive
B. Reactive
C. Defense
D. Accommodation
E. Feedback.

32. …………………………. Strategy in which company takes full responsibility of its product and in case of any defect it fix it
before complain.
A. Proactive
B. Reactive
C. Defense
D. Accommodation

33. ……………………….. Strategy in which company take action regarding its complain only when it came in the notice of the
govt. Consumer or regulators. Else it keeps things going on.
A. Proactive
B. Reactive
C. Defense
D. Accommodation

34. According to the stakeholder view, CSR is in the long-term interests of shareholders because it helps to secure
stakeholder support, access to resources, sustainable business relationships and so on
A. True.
B. False.

35. Which of the following is not the driving force for the development of corporate governance?
A. Increasing internationalization and globalization.
B. Differential treatment of domestic and foreign investors.
C. Concerning over financial reporting.
D. High profile corporate scandals.
E. Empowerment of lower management.

36. The board that meet irregularly or fail to consider systematically the organization’s activity and risk are sign of.
A. Good corporate governance.
B. Lack of none executive directors participation.
C. Weakness and ineffectiveness.
D. Normal activity.

37. Rapid turnover of staff in the accounting or control department will results into …………………………………
A. Creating new vacancies for fresh graduates.
B. Out of turn promotions and rise in salary.
C. Put extra work load on the sales and recovery team.
D. Make control more difficult because of lack of continuity.



                                                                                                                           43
38. Time has proved that the principle of employee’s supervision by senior management has failed to reduce or control
large losses for the organization. Employee’s incompetence, negligence and fraudulent activity cannot be control by
supervision.
A. True.
B. False.

39. Segregation of duties of key roles can play an important role in effective corporate governance.
A. True.
B. False.

40. Remuneration packages regardless to the results or performance of the directors has resulted into poor performance
and lack of touch with the interest of the other shareholders in the company.
A. True.
B. False.

41. What is the ultimate risk of poor corporate governance?
A. Company will have a poor internal control structure.
B. Board of director will consider for outsourcing internal control department.
C. Shareholders will start selling their shares in the capital market.
D. May results in bankruptcy or may be even closed by govt. authorities due to serious regulatory breaches etc.

42. What is the responsibility of a Public Oversight Board? (PP)
A. The establishment of detailed rules on internal audit procedures
B. The commissioning of financial reporting standards
C. The creation of legislation relating to accounting standards
D. The monitoring and enforcement of legal and compliance standards

43. Board of Directors should take the following decisions. Which of the following one is incorrect?
A. Mergers and takeovers.
B. Acquisitions and disposals of large or valuable assets.
C. Material purchases and determines minimum inventory level.
D. Investments / Bank borrowings / Capital projects.
E. Repayment of foreign currency transactions etc.

44. Corporate governance gave permission to the none-executive directors to take part in share options scheme.
A. True.
B. False.

45. Accounts should show the remuneration policy, pension rights and the packages of individual directors.
A. True.
B. False.

46. Nomination committee of the board of directors should totally consist of none-executive directors.
A. True.
B. False.

47. Audit committee and remuneration committee should have equal numbers of executive Directors and N.E.Ds.
A. True.
B. False.

48. The appointment of the NEDs is done by the nomination committee.
A. True.
B. False.

                                                                                                                    44
49. Sustainability reporting in the financial accounts mean……..
A. That the company should disclose about its future plans.
B. About its going concern.
C. Social transformation, ethical, safety, health and environment management policies and practices.
D. About getting information from internal and external sources.

50. Sustainability reporting is also known as social responsibility report.
A. True.
B. False.

51. Social responsibility and ethical behavior are not the same things.
A. True.
B. False.

52. Ethics are values and principles that society expects companies and individuals to follow.
A. True.
B. False.

53. Which of the following are not the strategies for the social responsibility? State the one incorrect?
A. Proactive strategy.
B. Reactive strategy.
C. Defense strategy.
D. Corporate strategy.
E. Accommodation strategy.




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                                                                                                            45
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Answer Chapter 5.
 1       B      11       A      21       D      31       E      41       D      51       A
 2       A      12       A      22       B      32       A      42       D      52       A
 3       D      13       D      23       B      33       B      43       C      53       D
 4       C      14       D      24       B      34       A      44       B      54
 5       C      15       B      25       B      35       E      45       A      55
 6       C      16       B      26       B      36       C      46       B      56
 7       E      17       C      27       A      37       D      47       B      57
 8       A      18       A      28       D      38       B      48       B      58
 9       C      19       B      29       C      39       A      49       C      59
 10      B      20       C      30       E      40       A      50       A      60
Explanation.
1. They are the executive managers and accountable to shareholders.
10. Their performance can be check.
15. Should have a mix bag of knowledge and experience.
16. Should have industry knowledge and expertise.
19. It should be done only once a year.
22. Non-executive directors have no executive (managerial) responsibilities
24. These both committees should have only NEDs
26. NEDs will not get any pension after retired.
38. Supervision has turn in reduction of employee’s poor performance related issues.
46. There should be a mix of both Directors and N.E.Ds with N.E.Ds in majority.
47. These both committees are totally consist of NEDs.
48. The nomination committee only recommends the names to the BOD. Their appointment is done by the
board.




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                                                                                                      46
    Chapter 6. The micro economic environment.
1. ……………………….. Mean that the expenditure, output and income will all have the same total value.
A. Circular flow of income
B. Circular flow of expenditure
C. Cash flow
D. Balance of payment.

2. Which of the following is not the withdrawal from the circular flow of income?
A. Import
B. Savings
C. Taxation / expenditure
D. Investments

3. Which of the following is not the injection in the circular flow of income?
A. Investment
B. Saving
C. Export
D. Govt. Spending

4. Saving is different from investment. Saving means withdrawal of money from the circulation.
A. True
B. False

5. Economy normally remains in the stable state.
A. True
B. False.

6. Economy is influence by many factors. Which of the following is the best answer?
A. Investment level
B. The multiplier effect and confidence
C. Inflation and saving
D. Interest and exchange rate
E. All of the above.

7. Total expenditure in the economy is one way of measuring the national income.
A. True
B. False.

8. The two main problem for the economy are inflation and ………………………………..
A. Savings
B. Investments
C. Taxes
D. Unemployment.

9. The total demand in the economy for goods and services is called the …………………………..
A. Demand
B. Demand and supply
C. Aggregate demand
D. Total demand.




                                                                                                  47
10. ……………………………… refers to the ability of the economy to produce goods and services.
A. Total production
B. Aggregate demand
C. Inflation
D. Aggregate supply.

11. When the total demand for goods and services in the economy is equal to the half the supply of goods and services in
the economy this is known as equilibrium level of the national income.
A. True
B. False.

12. Aggregate supply is positive related to the price level.
A. True
B. False

13. …………………….. Is a combination of unacceptably high unemployment and unacceptably high inflation.
A. Inflation
B. Deflation
C. Stagflation
D. Inflationary gap

14. Business cycle is also known as trade cycle or economic cycle.
A. True
B. False.

15. Which of the following is the stage/phase of business cycle?
A. Recession
B. Depression
C. Recovery and Boom
D. All of the above.

16. The fall in national income is called recession.
A. True
B. False.

17. Recession tends to occur slowly, while recovery is typically a quicker process.
A. True
B. False

18. …………………………….. Refer to economy wide fluctuation in the production or economic activity over several months or
year.
A. Depression
B. Business cycle / trade cycle
C. Stagflation
D. Deflationary gap.

19. …………………………… redistribute income and wealth.
A. Stagflation
B. Inflation
C. Deflation
D. None



                                                                                                                     48
20. In Inflation the person who owed money have advantage over the lender.
A. True
B. False.

21. In a country where rate of inflation is higher its imports will be expensive and exports will be cheaper.
A. True
B. False

22. Inflation affects the exchange rate.
A. True
B. False.

23. …………………. Decline the purchase power of the money.
A. Expenses
B. Boom
C. Inflation
D. Deflation.

24. Healthy economy requires no inflation.
A. True
B. False.

25. A consumer price index (CPI) is based on a chosen 'basket' of items which consumers purchase.
A. True
B. False

26. Which of the following is indicated by the CPI data? Choose the best answer given below.
A. Indicator of inflationary pressure in the economy
B. Benchmark for wages negotiations
C. Determine annual increase in Govt. Benefits payments.
D. All of the above
E. None of the above.

27. When inflation become excessively high it is called ……………………………………..
A. CPI
B. RPI
C. Fiscal Pressure
D. Hyperinflation.

28. Retail price index is also stated as RPI.
A. True
B. False

29. ……………………………………..measures the percentage changes month by month in the average level of prices of the
commodities and services, including housing cost.
A. Consumer price index
B. Inflation rate
C. Retail price index
D. Benchmark index.

30. In the case of abnormal inflation people are unwilling to use money and forced to go back to………………………..
A. Leverage system
B. Future Trading system
                                                                                                                49
C. Barter system
D. Gold system.

31. ………………………………………. Inflation resulting from a persistent excess of aggregate demand over aggregate supply.
Supply reaches a limit on capacity at the full employment level.
A. Cost push inflation
B. Demand pulls inflation
C. Import cost factors
D. Expectations

32. ………………………………..inflation resulting from an increase in the costs of production of goods and services, e.g.
Through escalating prices of imported raw materials or from wage increases.
A. Cost push inflation
B. Demand pulls inflation
C. Import cost factors
D. Expectations

33. When inflation becomes a relatively permanent feature of rise in price and wages it is called wage-price spiral.
A. True
B. False.

34. Inflation can be brought in control by reducing the rate of growth of money supply.
A. True
B. False.

35. ………………………… unemployment is when an employee has left one job in order to start at another. If there is a gap of
time between leaving one top and starting the next.
A. Structural unemployment.
B. Frictional unemployment.
C. Transitional unemployment.
D. Cyclical unemployment.

36. Seasonal employment and frictional unemployment are long term.
A. True
B. False

37. Frictional unemployment is sometimes also called as search unemployment.
A. True
B. False

38…………………………………. Is caused due to the un-satisfaction of working or other condition to the employee and from
the employer point of view when he fail to get skill full worker for its work.
A. Structural unemployment.
B. Frictional unemployment.
C. Transitional unemployment.
D. Cyclical unemployment.

39. …………………… is the type of unemployment which occurs due to a long term or significant change in the
condition/structure of an industry. That is closure of a mining industry.
A. Frictional unemployment.
B. Transitional unemployment.
C. Cyclical unemployment.
D. Structural unemployment.

                                                                                                                       50
40. It is impossible to create more jobs without reducing unemployment.
A. True
B. False

41. Technological unemployment adds to the structural unemployment or it’s a form of Structural unemployment.
A. True
B. False

42. …………………………………….. Occurs due to the implication of new technology or machine takes over human workers.
A. Frictional unemployment.
B. Transitional unemployment.
C. Technological unemployment.
D. Structural unemployment.

43. Structural unemployment, technological unemployment, and cyclical unemployment are all short term, and Less
serious.
 A. True
B. False.

44. ……………………… unemployment occurs in the downswing of an economy in between two boom.
A. Frictional unemployment.
B. Transitional unemployment.
C. Cyclical unemployment.
D. Structural unemployment

45…………………is the increase of per capita of GDP or other measure of aggregate income. Its often measured as the rate
of change in real GDP.
A. Fiscal policy
B. Balance of payment
C. Trade deficit.
D. Economic growth.

46. Economic growth may be balanced when all sectors of the economy expand together or unbalanced.
A. True
B. False.

47. ……is the annual percentage increase in national output, which typically fluctuates in accordance with the trade cycle.
A. Potential economic growth.
B. Actual economic growth.
C. G D P
D. Human Capital.

48. Potential economic growth is the rate at which the economy would grow if all resources (eg people and machinery)
were utilized
A. True.
B. False.

49. Sustained economic growth depends heavily on an adequate level of new ………………………………..
A. Workers
B. Experts
C. Sources
D. Investment.


                                                                                                                       51
50. The rate of extraction of natural resources will have no impact on the rate of growth.
A. True
B. False

51. The use of new technology results in a very fast economic growth.
A. True
B. False.

52. Higher growth requires a cut in consumption. (See explanation)
A. True
B. False.

53. Microeconomic policy objectives are related to which of the following? Or what are the key objectives of MEP.
A. Economic growth.
B. Inflation and unemployment
C. Balance of payment
D. All of the above.

54. Economic growth implies increase in National income. Increases due to rise of prices is also a real economic growth.
A. True
B. False.

55. Does full employment means everyone who need a job have a one all the time?
A. True
B. False.

56. Creating full employment may lead to decreased inflation rates.
A. True
B. False

57. Taxes have no effect on consumer purchasing power.
A. True
B. False.

58. Government's most important economic role is the ……………………….. Relating to business.
A. Procedure
B. Decision making
C. Legal system
D. None of the above.

59. Governments can rise ………………………………….. To protect domestic industry.
A. Interest rates
B. Working hours
C. Wages
D. Trade barriers

60. Which of the following is the area covered under the fiscal policy, state the one incorrect?
A. Taxation
B. Public borrowing
C. Banking
D. Public spending.



                                                                                                                      52
61. When government plans what it wants to spend and so how much it needs to raise in income or by borrowing this
called ……………..
A. Balance of payment.
B. Trade policy
C. Monetary policy
D. Fiscal policy.

62. When the government is injecting money into the economy, this is known as expansionary policy.
A. True
B. False.

63. When budget is surplus this is called contractionary policy or reducing the size of the money by taking money out of
the economy.
 A. True
B. False.

64. A ……………………………… is paid direct by a person to the Revenue authority.
A. Indirect tax
B. Donation
C. Direct tax
D. None of the above.

65. An ……………………………. Is collected by the Revenue authority from an intermediary (a supplier) who then attempts to
pass on the tax to consumers in the price of goods they sell.
A. Indirect tax
B. Donation
C. Direct tax
D. None of the above.

66. Which of the following is not the type of Indirect tax?
A. Regressive tax
B. Proportional tax
C. Progressive tax
D. Capital gain tax.

67. A………………………. Takes a higher proportion of a poor person's salary than of a rich person's. Television licenses and
road tax are examples.
A. Regressive tax
B. Proportional tax
C. Progressive tax
D. Capital value tax.

68…………………….. Takes the same proportion of income in tax from all levels of income.
A. Regressive tax
B. Proportional tax
C. Progressive tax
D. Capital value tax.

69. …………………………….. Takes a higher proportion of income in tax as income rises.
A. Proportional tax.
B. Capital gain tax
C. Regressive tax
D. Progressive tax
                                                                                                                       53
70. A specific tax is charged as a fixed sum per 100 units sold.
A. True
B. False.

71. A sales tax is a consumption tax charged at the point of purchase for certain goods and services.
A. True
B. False

72. Direct taxes are progressive or proportional taxes.
A. True
B. False.

73. Monetary policy covers the following areas of the government policy? State the one incorrect.
A. Money supply
B. Interest rates and exchange rates.
C. Monetary system and availability of credit.
D. Public borrowing and spending.

74. High inflation brings economic uncertainty.
A. True
B. False.

75. ……………………. Is known as accounting records of all monetary transition between a country and the rest of the world.
A. Fiscal policy
B. Balance of payment
C. Balance of trade
D. Monetary policy.

76. Which of the following increase national income?
A. Taxation
B. Imports
C. Government spending and investment
D. Savings.

77. Experts advice that ………………………. Can put, breaks on the inflation.
A. Fiscal policy
B. Balance of payment
C. Exchange rate
D. Monetary policy.

78. The other name of balance of trade is balance of payment.
A. True
B. False.

79. ………………………………………. The difference between the value of goods and services exported out of a country and the
value of goods and services imported into the country.
A. Balance of payment
B. Monetary policy
C. Balance of Trade
D. International trades.




                                                                                                                 54
80. A balance of trade deficit is most unfavorable to domestic producers in competition with the imports, but it can also
be favorable to domestic consumers to buy exports products at lower prices.
A. True
B. False

81. If the country is having deficit in its current account (balance of payment) what are the consequences it may suffer?
(any two)
A. It has to borrow more and more from aboard to meet the difference. Encourage more to invest In Govt. Bonds etc.
B. It has to sell its foreign or local assets to the foreign investors.
C. Its exchange rate will rise and will have a good impact on its exports.
D. It will result in the reduction of interest rates.

82. A positive current account balance means that the country is importing more goods and services than it is exporting.
A. True
B. False.

83. Which of the following is not the category of Balance of payment in which it records its transaction?
A. Current account
B. Capital account
C. Financial account
D. Exchange account

84. Balance of Payment. Goods, services, income and current transfers are recorded in current account.
A. True
B. False.

85. Balance of payment. In the financial account, physical assets such as a building or a factory are recorded.
A. True
B. False.

86. Balance of payment. Assets pertaining to international monetary flows of, for example, business or portfolio
investments, are recorded in
A. Current account
B. Capital account
C. Financial account
D. Exchange account

87. Devaluation of currency will not help to reduce the current account deficit.
A. True
B. False.

88. A lower discount rate makes borrowing less expensive and increases the money supply.
A. True
B. False

89. The government of XYZ has taken the following steps.
1. The government will increase it public spending in health and education by 20 percent
2. That Government will issue Local currency bonds for local public to finance its deficit.
3. That the rate of taxation will be reducing by 1 percent to increase demand. What kind of policy is this?
A. Monetary policy
B. Trade policy
C. Exchange policy
D. Fiscal policy.
                                                                                                                        55
90. Following steps are taken the government below. What are they called? Give the best one.
1. Buying government bonds from the public puts money into circulation by paying investors who hold these bonds.
2. The interest rates will be reducing by 100 basis points.
3. The exchange rate will be reducing by 2 percent.
4. Bank margin on credit will be eased.
A. Fiscal policy
B. Exchange policy
C. Trade policy
D. Monetary policy.

91. In economics the multiplier effects mean …………………….
A. All investment and expenditures are added
B. Combination of monetary and fiscal policy.
C. Injection of certain size leads to a much larger increase in national income.
D. None of the above.

92. Aggregate demand made from several components of the circular flow. Import is one of the main components of
aggregate demand.
A. True.
B. False.

93. Which of the following one is not the factor of unemployment?
A. Redundancies
B. Voluntary quitting the job.
C. School leaving without jobs.
D. Lay-offs.

94. Rehmat was hired by a mango farmer to pick mangoes from the tree. Rehmat was employed on the farm for 2
months till the mango picking season last later he has to wait for next 3 months for the orange picking season till he will
remain unemployed. What type of unemployment is this?
A. Seasonal unemployment.
B. Frictional unemployment.
C. Transitional unemployment
D. Cyclical unemployment.

95. When an employee leave on job in order to start the other. The gap of unemployment between the two jobs is known
as ……………………..
A. Frictional unemployment.
B. Transitional unemployment.
C. Technological unemployment.
D. Structural unemployment.

96. Tariq textile use to employee large number of employee’s for its cotton unit. For the last 2 years almost 35% of
employees was dismiss due to poor cotton crop in the country and the textile units was in a decline due to high prices of
raw material. What type of unemployment is this?
A. Frictional unemployment.
B. Transitional unemployment.
C. Technological unemployment.
D. Structural unemployment.




                                                                                                                          56
97. Formal planning of fiscal policy is usually done once a year and is set out in the budget.
A. True.
B. False.

98. When government reduce the size of the money supply by taking money out of the economy, or its income is more
than its expenditures it is called ………………………………………
A. Fiscal policy
B. Expansionary policy
C. Economic policy
D. Contractionary policy.

99. When government increase the size of its money supply by injecting money into the economy. Or its income is less
than its expenditures it is called. …………………………………….
A. Fiscal policy
B. Expansionary policy
C. Economic policy
D. Contractionary policy.

100. Technological progress is divided into three important types. Which of the following is incorrect?
A. Capital saving.
B. Neutral
C. Labor saving.
D. Potential output.




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Answer Chapter 6.
 1          A        16         A       31         B       46        A        61       D         76       C         91             C
 2          D        17         B       32         A       47        B        62       A         77       D         92             B
 3          B        18         B       33         A       48        A        63       A         78       B         93             C
 4          A        19         B       34         A       49        D        64       C         79       C         94             A
 5          B        20         A       35         C       50        B        65       A         80       A         95             B
 6          E        21         B       36         B       51        A        66       D         81       AB        96             D
 7          A        22         A       37         A       52        A        67       A         82       B         97             A
 8          D        23         C       38         B       53        D        68       B         83       D         98             D
 9          C        24         B       39         D       54        B        69       D.        84       A         99             B
 10         D        25         A       40         B       55        B        70       B         85       B         100            D
 11         B        26         D       41         A       56        B        71       A         86       C
 12         A        27         D       42         C       57        B        72       A         87       B
 13         C        28         A       43         B       58        C        73       D         88       A
 14         A        29         C       44         C       59        D        74       A         89       D
 15         D        30         C       45         D       60        C        75       B         90       D
Explanation.
5. Its rarely in a stable state.
11. The total demand for goods and services in the economy is equal to the total supply of goods and services in the economy
17. Recession tends to occur quickly, while recovery is typically a slower process.
20. Because the value of money reduce.
21. Imports will be cheap and export will be expensive.
24. Its required some inflation.
36. Seasonal employment and frictional unemployment will be short-term
40. T is possible to create more jobs without reducing unemployment.
43. Structural unemployment, technological unemployment, and cyclical unemployment are all longer term, and more serious.
50. The rate of extraction of natural resources will impose a limit on the rate of growth
52. Firms need to invest more and this requires financing. This finance can only come from higher savings which in turn require the population to
consume less
54. Increase in National income due to increase in price is not a real national income.
55. Full employment does not mean that everyone who wants a job has one all the time, but it does mean that unemployment levels are low, and
involuntary unemployment is short-term.
56. Creating full employment may lead to increased inflation rates.
57. Taxation affects consumers' purchasing power.
70. A specific tax is charged as a fixed sum per unit sold.
73. Public borrowing and spending are the feature of fiscal policy.
78. The difference between the value of goods and services exported out of a country and the value of goods and services imported into the country is
balance of trade. While balance of payment is the total accountings record (import and exp) of a single country with the rest of the world and its
difference.
82. A positive current account balance means that the country is exporting more goods and services than it is importing.
85. In the capital account, physical assets such as a building or a factory are recorded
87. Its help to reduce the current account deficit.
92. Aggregate demand = (consumption + investment+ Govt. Investment + export) Minus (-) imports.




                                                                                                                                                   58
Chapter 7. The business environment.
1. The political environment is of particular importance in …………………………………. Trades.
A. Domestic
B. International
C. Barter
D. None of the above.

2. The …………………………………………….. Was set up to promote free trade and resolve disputes between trading partners.
A. European union.
B. Asian Trade
C. Euro Zone
D. World Trade Organization.

3. The theory of comparative advantage suggests that free trade is the best way to promote global economic growth
and, by implication, domestic prosperity. People should be free to buy and sell goods and services anywhere in the world
A. True
B. False

4. Retirement ages for men and women are being …………………………. In UK.
A. Different
B. Subject to their health and condition
C. Equalized
D. None of the above.

5. Organization offer and encourage retirement on the following reasons. State the one incorrect.
A. Promotion opportunities for younger workers
B. Earlier retirement is an alternative to redundancy
C. The age structure of an organization become unbalanced
D. The cost of providing pensions rise with age.
E. None of the above

6. When an employee leaves the organization it is important to ……………………………………………
A. To have a farewell party
B. To gave him a certification of its work.
C. To take advice from his experience
D. To take an exit interview to find out the reason of exit.

7. The period of notice required for the employee to leave the job should be set out in the………………………………..
A. Notice board of the company.
B. Should be on the desire of the worker
C. Contract of employment.
D. None of the above.

8. The European Union operates a single European market, allowing for the free movement of labor, goods and services,
and free competition.
A. True
B. False.

9. The termination of an employee contract by the employer is not considered as dismissal in UK.
A. True
B. False.

                                                                                                                      59
10. ………………………………… is a dismissal when the worker quit the job due to the employer conduct breach the
employment contract.
A. Redundancy
B. Voluntarily dismissal.
C. Constructive dismissal
D. Arbitrary dismissal.

11. An employee is entitled to a ………………………………. Of the reasons for dismissal.
A. Written statement.
B. Oral statement.
C. Not entitle
D. None of the above.

12. …………………………………….. Is dismissal that breaches the contract of employment? Or a situation in which an
employee's contract of employment has been terminated by the employer in circumstances where the termination
breaches one or more terms of the contract of employment
A. Arbitrary dismissal
B. Redundancy
C. Wrongful dismissal
D. None of the above.

13. Wrongful dismissal also called wrongful termination or wrongful discharge.
A. True
B. False.

14. When an employee is dismissed without any fair or justify reason by the employer is called a ……………………………..
A. Arbitrary dismissal / unfair dismissal.
B. Redundancy
C. Wrongful dismissal
D. None of the above.

15. The purpose of ……………………………… is mainly to provide protection to employees, against unfair treatment or
exploitation by employer.
A. Exploitation law
B. Corporate law
C. General laws
D. Employment law.

16. When an employer is found guilty of unfair dismissal. He is required to ……………………………………. (Give 2 answers)
A. Say sorry to the employee.
B. Pay him the substantial compensation
C. Re-employ him on the job.
D. Fired is fired no need for anything.

17. Redundancy is not an unfair dismissal.
A. True
B. False.

18. Which of the following case redundancy is not treated as dismissal?
A. When the owner has decided to close the company completely.
B. When the section in which he employed is closed permanently.
C. When due to new technology and equipment or govt. Action work is not required?
D. When the employer dismiss without any good reason.
                                                                                                                 60
19. Which of the following case employer is entitled to pay compensation to the employee in the case of redundancy?
A. When he has offer suitable transfer and employee reject it without good reason.
B. When worker conduct deserve dismissal without notice. Or principle violation of contract.
C. When the owner has decided to close the company completely
D. The employee is of pensionable age or over, or has less than two years' continuous employment

20. ABC Corporation has decided to dismiss 2 employees out of 6 who are no longer required due to the installation of
new computerized machine which will reduce the work. Which if the 2 will be dismissed by the company?
A. The most senior 2 of the company as they are near to the age of retirement.
B. One from the senior and one from the junior.
C. Both from the middle so both junior and senior will protected.
D. The most recent hired.

21. …………………………………. Is required to provide a safe place of work for their employees.
A. Supervisor
B. Owner / employer
C. Government
D. Town administration.

22. A safe place of work is where employees are not exposed to unreasonable physical dangers or unreasonable risk of
health.
A. True
B. False.

23. …………………………………… has the ultimate responsibility for health and safety of workers in a limited company.
A. C E O
B. Directors
C. Managers
D. Board of Directors.

24. Which of the following is not the duty of an employee?
A. Take care of them self and the others close to them
B. Allow the employer to carry out his or her duty or enforcing safety rules.
C. To handle machines and tools carefully and to do its own work as per rules.
D. Inform the managers or owner about possible occurring problems.
E. None of the above.

25. Accident should be report on a ……………………………………
A. Notice board
B. Corner office
C. Accident report form
D. News paper and magazines.

26. Serious accidents which result in death or major injury or at-least 3 days off work for the victim such all should be
notified to the………………
A. Accounts department
B. Health and safety executive.
C. Company doctor
D. Supervisor.

27. ……………………….. Is the right of the individual not to suffer unauthorized disclosure of information?
A. Privacy
B. Secrets
                                                                                                                            61
C. Safety
D. Reporting

28. The data protection act provides protection to the private individuals and companies.
A. True
B. False.

29. Which of the following are the features of a health and safety policy? Select the incorrect one.
A. Statement of principles / Training requirements
B. Detail of safety procedures / detailed instructions on how to use equipment
C. Compliance with the law
D. None of the above.

30. Computerized data belongs to individuals can be misused and easily be transferred to unauthorized third party at
high speed and low cost.
A. True
B. False

31. Data about organizations are also come under the classification of personal data.
A. True
B. False.

32. ……………………. Is information about a living individual, including expressions of opinion about him or her.
A. Personal data
B. Corporate data
C. Computerized data.
D. Government data.

33. Data protection principles. Personal data shall be accurate and, where necessary, kept up to date.
A. True
B. False.

34. Which of the following statement about the rights of data subject is not correct?
A. In the case of unauthorized disclosure, destruction, or distress caused data subject can claim compensation in the court of law.
B. He can ask the court to correct the data belongs to him in case of incorrect.
C. Data subject can apply the court to obtain access (mean to view the details) to the data which he or she is subject.
D. S(he) can sue the data holder for any damage cause due to his misuse of data causing any damage.
E. Data holder can obtain the data and disclose it publicly.

35. Population and labor market. Increasing birth rate mean less labor and falling death rate mean more young people.
A. True
B. False.

36. Woman’s are more in work because of. Which of the following statement is incorrect?
A. More part time jobs
B. Rising male unemployment as many industries which employed men have declined
C. The growth of the service sector
D. An increase in the average age at which women have children
E. None of the above.

37. Information technology makes the information processing work of middle managers redundant (extra).
A. True
B. False.
                                                                                                                                      62
38. …………………………. Is the contracting out of specified operations or services to an external vendor or service provider.
A. Outsourcing.
B. Contract.
C. SBU
D. Decentralization.

39. Which of the following is not a type of outsource? Select the one incorrect.
A. Ad-hoc
B. Project base management
C. Partial / Total
D. Standing.

40. ………………………. Is an organization that has no physical hub or centre of operation. Its outsource almost all of its work
and only few people are in the center to look after the company.
A. Centralized Organization
B. Decentralization organization
C. Virtual organization / Virtual Company.
D. Multination organization.

41. The virtual company has been made possible by development in …………………………………………..
A. Bio technology
B. Engineering
C. I T Technology.
D. Print and electronic media.

42. PANCAT Company was having difficulty in maintaining company accounting record. On an advice they make a
contract with MS Hashmi and Sons to prepare and maintain their accounting records on permanent basis. What do we
called this contract?
A. Business deal
B. Outsource or Total outsource
C. Franchise
D. Royalty.

43. One of the advantage of outsourcing is all the confidential information about the company is safe and secured.
A. True
B. False.

44. If a business organization operates in a market where there are no significant competitors. It is called
A. Oligopoly
B. Perfect competition
C. Monopoly.
D. Welfare

45. In a competitive market environment companies charge higher prices and make larger profit then it would in a
monopoly.
A. True
B. False.

46. Which of the following are the five competitive forces influences the state of competition in the industry? State the
one incorrect.
A. The threat of new entrants to the industry
B. The threat of substitute products or services
C. The bargaining power of customers
                                                                                                                            63
D. The bargaining power of suppliers
E. The rivalry amongst current competitors in the industry
F. None of the above.

47. A new entrant into an industry will …………………………………………………….
A. Will diversify into other industry and will not make any difference.
B. Act and adopt same policies as other do and will have no impact.
C. Will have no impact on the capacity and competition
D. Will bring extra capacity and competition.

48. Economics of scale means that the companies produce and sell an item in large quantities at low cost by reducing
their average cost.
A. True
B. False

49. Which of the following are the barriers of entry in a competitive force into a new industry?
A. Economics of scale
B. Capital investment requirement.
C. Government regulation
D. Switching cost.
E. All of the above
F. None of the above.

50. Which of the below factor is not true in respect of bargaining power of supplier that he can charge high prices of its
supplies?
A. Supplier will have a less bargain position if there are more companies to provide material.
B. The threat of new supplier enters in the industry or substitute products
C. When the switching cost of the user / customer is low.
D. The importance of the product to the customer. Mean is it essential to him
E. If the customer is totally depended on the supplier.

51. Which of the following about the bargain power of the customer is incorrect?
A. How much the customer buys?
B. How critical the product is to the customer’s own business
C. Switching costs (i.e. The cost of switching supplier)
D. Whether the products are standard items (hence easily copied) or specialized
E. If there is a monopoly, customer is in a better position to get product cheaply.

52. ………………………. Are the means by which a firm creates value in its products.
A. Research
B. Development
C. Value activities
D. Creativity.

53. Porter identified the chain of activities in the primary value chain. Which of the one is incorrect?
A. Inbound logistics
B. Operations
C. Outbound logistics.
D. Feed back.
E. Marketing, sales and service.




                                                                                                                             64
54. According to Porter there are three generic strategies for competitive. Which one is false?
A. Cost leadership
B. Inhibitors.
C. Differentiation
D. Focus

55. Cost leadership means being the lowest cost producer in the industry as a whole.
A. True
B. False

56…………………….. Is the exploitation of a product or service which the industry as a whole believes to be unique.
A. Differentiation
B. Focus
C. Cost leadership
D. None of the above.

57. Porter’s generic strategies. Which of the following is corrects in term of focus?
1. Providing goods and/or services at lower cost (cost-focus)
2. Providing a differentiated product or service (differentiation-focus)
A. 1 only
B. 2 only
C. 1 and 2
D. None

58. Which of the following is not a legitimate method of influencing government policy in the interests of a business?
A. Employing lobbyists to put the organization’s case to ministers or civil servants
B. Giving lawmakers non-executive directorships
C. Offering financial incentives to public officials to use their influence on the organization’s behalf
D. Attempting to influence public opinion, to put pressure on the legislative agenda

59. A ………………………. is a tentative government report of a proposal without any commitment to action; the first step in
changing the law
A. Red paper
B. Yellow Paper
C. White paper
D. Green Paper.

60. ………………………………………. is an authoritative report or guide that is often oriented toward a particular issue or
problem. They are used to educate readers and help people make decisions, and are often requested and used in politics,
policy, business, and technical fields. Green paper is the first step toward its production.
A. Red paper
B. Yellow Paper
C. White paper
D. Green Paper.

61. Ageism, also called age discrimination.
A. True.
B. False.



62. ……………………………. is the stereotyping of, prejudice against or discrimination against an individual due to his or her
age. Usually this refers to older people, those aged 50 years or older, though it can also related to young professionals,
teens and even children.
                                                                                                                             65
A. Ageism.
B. Redundancy
C. Equalized
D. None of the above.

63. There is no such thing as a fixed term contract of employment.
A. True.
B. False.

64. Under employment protection legislation, the employee has to prove that he has been dismissed. on the other hand
it is also to the employer to prove that the dismissal was fair.
A. True
B. False.

65. M.I.K Electronics’ decide to offer redundancy to 2 of its employee’s out of 12. Which of the two should they when all
of them doing the same work?
A. 4 of them having 15 years of service and have excellent record.
B. 2 of them are working for last 5 years but can do all sort of work
C. 4 of them are woman and working for the last 3 years.
D. 2 of them was hired 3 months earlier.

66. Accidents due to the result of statutory duty cannot be sued.
A. True.
B. False.

67. …………………………………should be carried out regularly to prevent accidents.
A. Internal audit.
B. Staff medical checkup.
C. Risk audit or sampling
D. None of the above.

68. Personal data include all information about deceased people too.
A. True.
B. False.

69. When company have planned to dismiss few employee. The best option is LIFO or to dismissed the newcomer before
long serving people.
A. True.
B. False.

70. Porter’s Value Chain. Which of the following is not belongs to the support activities of the value chain?
A. Firm infrastructure
B. H R Management
C. Marketing and sales.
D. Technology development
E. Procurement.




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                          Answer Chapter 7.
   1          B         16        BC         31          B         46          F        61          A
   2          D         17         A         32          A         47          D        62          A
   3          A         18        D          33          A         48          A        63          A
   4          C         19         C         34          E         49          E        64          A
   5          E         20        D          35          B         50          C        65          D
   6          D         21         B         36          E         51          E        66          B
   7          C         22         A         37          A         52          C        67          C
   8          A         23        D          38          A         53          D        68          B
   9          B         24         E         39          D         54          B        69          A
  10          C         25         C         40          C         55          A        70          C
  11          A         26         B         41          C         56          A        71
  12          C         27         A         42          B         57          C        72
  13          A         28         B         43          B         58          C        73
  14          A         29        D          44          C         59          D        74
  15          D         30         A         45          B         60          C        75
09. It is considered as dismissal.
 28. Data protection act provide security to the individuals only.
31. Data about organizations is not personal data
35. Increasing birth rates mean more young people and falling death rates mean more elderly people.
43. A company may have highly confidential information and to let outsiders handle it could be seen as risky in
commercial and/or legal terms.
45. In a competitive market company charge very low margin. Because lots of small companies are providing similar
products.
65. The organization should follow the LIFO method if the employees are not vital for the company.
66. This can be sued. Because it means that the duty has to be performed.
68. Personal data is subject to living individual only……




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  Chapter 8. History and Role of Accounting......Part C.
1. The financial manager is Responsible for ...................... And ........................ Of a Company.
A. Banking and Cash
B. Raising funds and Controlling financial
C. Purchases and production
D. Data and reports

2. When Auditors are agree with the Financial Statement prepaid by the Company they issue a.................... Report
A. Uncorrected Report
B. Qualified Report
C. Management attention report
D. Unqualified Report.

3. Internal Auditors are ............................... Of the company.
A. Cops
B. Non Executive Directors
C. Financial advisors
D. Employees.

4. Internal Auditors report on the effectiveness of .................................system.
A. Security
B. Internal control
C. Legal
D. External credit Control.

5. ................................... Are required by law to prepare and publish accounts annually.
A. Sole proprietorship
B. Partnership
C. Limited Companies
D. Everyone who do trade.

6 . …………………………….is a way of recording, analyzing and summarizing transactions of a business.
A. Accounting
B. Auditing
C. Statistics
D. Corporate Reporting.

7. The Transaction are recorded in …………………..
A. Book of Credit Entry
B. General Record book
C. Book of Prime Entry
D. Cash book.

8. Transaction are analyzed and posted in Inventory ledger
A. True
B. False.

9. Final Transitions are Summarized in the ……………………
A. Bank statement
B. Financial Statement.
C. Profit and loss Account.
D. Purchase Register.
                                                                                                                         68
10. Accounts are produce to aid management in planning, control and Decision making, and to comply with statutory
Regulation.
A. True
B. False.

11. 1494............................... Explained the first written double entry system of book keeping.
A. Karl Marks
B. Leonardo de venci
C. Luca Pacioli
D. Mintzberg’s.

12. Some companies provide voluntarily specially prepared financial information for the issue for their employees this
report is called. ...........................................
A. Auditor Report
B. Performance Report
C. Worker Stake and benefit Report
D. Employees Report

13. The head of Accounts Department post in UK is usually called. .............................
A. Chief Accountant.
B. Management Accountant.
C. Chartered Accountant.
D. Finance Director.

14. What are the Responsibilities of Financial Controller? Gave the best answer.
A. Routine Accounting
B. Provide Accounting Report for the other Departments
C. Cashier duties and cash control
D. All of the above
E. None of the above

15. Which one of the following is not the job of Management Accountant?
A. Cost accounting
B. Prepare Financial Statement for the Stake holders
C. Budgets and budgetary control
D. Financial management of projects

16. Which of the following is not the duty of Treasurer?
A. Budgets and Cost accounting.
B. Rising Funds
C. Cash flow control
D. Investing surplus funds on the money market.

17. Financial statement is prepared on the basis of no of......................... Concept
A. Fundamental Accounting
B. Accrual
C. Future Profitability
D. Corporate law

18. Many Figures in the financial statement are derived from the application of........................ In putting fundamental
accounting concept into practice
A. Judgment
B. Going Concern
                                                                                                                                 69
C. Accruals
D. Trust.

19. The Statement of financial position must give a .................... View of the state affair of the company as at the end of
the financial year.
A. Complete
B. Accountable
C. True and Fair
D. Lawful

20. Proper Financial control ensures that the business is adequately.......................... To meet its obligations.
A. Financed
B. Balanced
C. Ready
D. Accountant.

21. Teeming and lading mean where Receipts for customers are misappropriated and this is then covered up by
misposting future receipts.
A. True
B. False.

22. A ...................... Is a program which deal with one particular part of a business accounting system
A. Software
B. Module
C. Record
D. Inventory System

23. Which of the following is not a Module of accounting system?
A. Payables ledger
B. Payroll
C. Electric Generator
D. Report Generator

24. Set of Several Modules is known as......................
A. Pairs
B. Module system
C. Data base
D. Suite.

25. When financial statement is prepared with too much detail it is also a ……………………………..
A. A defect which can cause difficulties of understanding
B. Quality of account
C. Standard system of presenting accounting records
D. None of the above.

26. Which of the following is not the section of financial accounts department?
A. Payroll
B. Research and development
C. Purchase ledger
D. Sales ledger and credit control.




                                                                                                                                70
27. One of the key responsibility of the internal auditor is to control the risk of ……………………. And ………………………….
A. Theft
B. Fraud
C. Error
D. Accounting Errors

28. Accounting Standard (and company law) prescribe that a company should ……………………………………………………
A. Prepare accounts on the basis and needs of its requirement.
B. Prepare accounts to show positive activities in the company.
C. Prepare accounts that not disappoint the stake holders.
D. Produce accounts to be presented to the shareholders.

29. Financial management is a separate discipline from both management and financial accounting?
A. True
B. False.

30. Which of the following are not the decisions of the financial managers?
A. Should the firm borrow from a bank or raise funds by issuing right shares.
B. Should the company spend money on the new technology and machinery?
C. How much should be paid as a dividend and bonus.
D. How much credit and discount to paid to the customers.
E. What will be the new recruitment policy of the company?

31. IASB was setup in 1973 to work for the improvement and harmonization of financial reporting.
A. True
B. False

32. What does GAAP stand for?
A. Group audit and accountancy policy
B. Generally accepted audit policy
C. Generally accepted accounting principles
D. Guidelines for accepted accounting principles

33. Accounting standards fails to eliminate subjectivity.
A. True
B. False

34. Accounting concepts are applied by individuals using their subjective judgment.
A. True
B. False

35. Once the goods have been dispatched to the customer. Responsibility then passes to the …………………………………….to
invoice the customer for the goods and to ensure that payment is received.
A. Production department
B. H.R department
C. Purchasing department
D. Accounts department.

36. Which of the following personnel in an organization would not be involved in the purchase of materials?
A. Credit controller
B. Accountant
C. Stores manager
D. Purchasing manager
                                                                                                                71
37. Financial control procedures exist specifically to ensure that. State the one which is incorrect.
A. Financial transactions are properly carried out
B. The assets of the business are safeguarded
C. Accurate and timely management information is produced
D. Effective human recourse will be adopted for best results.

38. Following are the weakness of effective financial control? State the one which is incorrect.
A. Customer fails to pay in time.
B. Supplier are not paid in time
C. Effective credit control procedure.
D. Unauthorized purchases being made.
E. Cash and cheques are being missing.

39. Which of the following are the standing data in the payroll files? Gave the best 2 answers?
A. Personal details
B. Rate of pay
C. Details of deduction
D. Gross pay to date / tax to date.
E. Holidays details
F. Pension contribution etc.

40. Clock card / time sheet and amount of bonus are the two main inputs in wages system of the payroll system.
A. True
B. False.

41. Which of the following are not the user of the financial statement and accounting information?
A. Managers of the company
B. Shareholders of the company
C. Print & electronic media and social websites, blogs etc.
D. Employees and lenders to the company.
E. General public, govt. Suppliers and customers of the company.

42. The separation of ownership and control refers to the situation where the owners of the company are always
different people then the director of the company.
A. True                B. False.

43. ……………………………….. Is the system by which companies are directed and controlled?
A. Board of directors
B. Management information system
C. Computerized accounting system
D. Corporate governance.

44. The innovation perspective reports mean ………………………………………………….
A. The traditional information of profits, capital employed and etc.
B. How well customer s wants have been satisfied
C. Internal efficiency of the business.
D. On the development of new products and service.

45. ……………………………………. Means the traditional information of profits, capital employed etc.
A. Customer perspective report
B. Internal perspective report
C. Financial perspective report
D. Innovation perspective report
                                                                                                                 72
46. …………………………… means expanding the traditional reporting framework to take into account ecological
(environment) and social performance in addition to financial performance.
A. Ecological reporting
B. Triple bottom line reporting.
C. Total reporting
D. Shareholder and stakeholder reporting.

47. Triple bottom line reporting is also known as "people, planet, profit" or "the three pillars.
A. True
B. False.

48. A smaller company should have at least ……………………….. None executive directors? Gave the best answer.
A. Half
B. One third of total Directors
C. Minimum 4 of them
D. At least 2 of them.

49. Do you think that a recent retired director finance of a company can be appointed as the NED of the same company?
A. No, it is not allowed in law
B. Yes he can because he is a natural person now.
C. Yes but the board has to gave a valid reason of its selection along with the assurance that he will remain neutral as NED.
D. He has served the company as finance director. He can’t hold this office.

50. The whole board of directors should determine the remuneration of the NEDs, or the board could delegate this
responsibility to a sub-committee of the same board.
A. True
B. False

51. The company’s annual report should describe the work of the ……………………………….
A. Internal auditors
B. Audit committee.
C. Rumination committee.
D. Internal and risk control.

52. Internal audit is not required by law.
A. True                 B. False.

53. The main role of the external auditor is to advice the management on whether the organization has a sound system
of internal control?
A. True
B. False.

54. Internal auditor covers all area of an organization. Operations, administration, billing, finance and all others have to
be checked by them.
A. True
B. False.

55. …………………… have the responsibility to advice and make recommendations on the internal control and corporate
governance.
A. External auditors
B. Outsource advisors
C. Manager Operations
D. Internal auditors
                                                                                                                           73
56. Company …………………….. Have a legal requirement to produce true and fair annual financial statement.
A. Accountants
B. External auditors
C. Internal auditors
D. Directors.

57. ……………………… haves an unavoidable independence problem. They can be influenced by the top management.
A. Accountants
B. External auditors
C. Internal auditors
D. Directors

58. Only certain people are legally allowed to be internal auditor by law.
a. True
b. False.

59. The …………………………. Are usually appoints by the shareholders. And they also reports to the shareholders.
A. Accountants
B. External auditors
C. Internal auditors
D. Directors

60. Can a company hire an external auditing firm to do its internal audit?
A. Yes
B. No.

61. The principles of accounting in manual accounting are different from computerized accounting system.
A. True.
B. False.

62. Computer base accounting system is generally very bulky both to handle and to store.
A. True.
B. False.

63. The preparation and filing of accounts by limited companies each year is required by which of the following? (Past Exam)
A. Codes of corporate governance
B. National legislation
C. International Accounting Standards

64. Spreadsheets too can often used both in financial accounting and cost accounting.
A. True.
B. False.

65. In term of technology which of the following come first in order of invention.
1. Digital Computer
2. Calculator
3. Spread Sheet.
A. 1, 3 and 2
B. 2, 3 and 1.
C. 1, 2 and 3
D. 2, 1 and 3.



                                                                                                                           74
66. A database may be described as a 'pool' of data, which can be used by any number of applications. Its use is not
restricted to the accounts department.
A. True.
B. False.

67. Which of the following is not the module of an accounting package? Gave the best answer?
A. Invoicing
B. Inventory
C. Receivables ledger
D. Payables ledger
E. All of the above.




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                                                                                                                       75
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Answers of Chapter 8. History and Role of Accounting
 1           AB         13           D         25           A          37         D           49           C         61     B
 2           D          14           D         26           B          38         C           50           A         62     B
 3           D          15           B         27          BC          39         DE          51           B         63     B
 4            B         16           A         28          D           40         A           52           A         64     A
 5           C          17           B         29           A          41         C           53           B         65     D
 6            A         18           A         30           E          42         A           54           A         66     A
 7           C          19           C         31           A          43         D           55           D         67     E
 8            B         20           A         32           C          44         D           56           D         68
 9            B         21           A         33           B          45         C           57           C         69
 10           A         22           B         34           A          46         B           58           B         70
 11          C          23           C         35          D           47         A           59           B         71
 12          D          24           D         36           A          48         D           60           A         72
Explanation.
8. Transactions are finally posted in Journal Ledger.
15. Preparing F/S is the responsibility of Accountant that is financial controller
16. Budgets and Cost accounting are the duty of management accountant.
25. Too much detail will make reader lost and harder to understand.
30. This is the responsibility of HR department.
36. Credit Controller deals with sales credit etc.
53. This is the role of the internal auditor. The role of the external auditor is to give its opinion to the shareholder.
58. Internal auditor can be any one. Only external auditor should be a chartered accountant by law.
61. They both have the same principles.
62. Manual system is bulky not the computerized. It can even come in a single USB drive.




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                                                                                                                                76
     Chapter 9. Control, Security and Audit.
1. Control is the result of proper planning, ............................. And ................................
A. Organizing
B. Marketing Polices
C. Employment Tasks
D. Directing of Management
E. Auditing.

2. The internal control system comprise of the ........................... And ..................................
A. Control Accounting
B. Control Auditing
C. Control Procedures
D. Control Environment

3. Internal Control may be incorporated within the................................... System
A. Management reporting
B. Computerized Accounting
C. Staff Attendance
D. Taxation

4. Which of the following are the key objectives of Internal Control System? Select the best answer.
A. Prevention and Detection of Fraud and Error
B. The timely preparation of reliable financial information system
C. The accuracy and completeness of the accounting records
D. The safeguarding of Assets
E. All of the above.

5. The Control environment is the overall .................... , ................ And .................... Of Directors and management
regarding internal control and their importance in the entry
A. Awareness
B. Attitude
C. Action
D. Reaction
E. Interest

6. ......................... Provide the background against which the various other controls are operated.
A. Management Control
B. Risk Control
C. Auditor Control
D. Control Environment.
E. Control Account.

7. .................. Are those policies and procedures in addition to the control environment which are established to achieve
the entity’s specific objectives.
A. Control Accounting
B. Control Auditing
C. Control Procedures
D. Control Environment

8. Which of the following are the Classifications of internal control procedure? Select the best answer.
A. Administration

                                                                                                                                         77
B. Accounting
C. Prevent
D. Detect
E. Correct
F. All of the above
G. None of the above.

9. Control Design to prevent errors from happening in the first place. I.e. Checking invoices from suppliers against goods
received notes before paying the invoices. This is the example of ..................... Control.
A. Correct
B. Detect
C. Prevent
D. Administrative.

10. Designed identify errors once they have happened. I.e. Bank reconciliation and physical checks of inventory against
inventory records. Are example of .............................. Control procedure.
A. Detect
B. Prevent
C. Correct
D. Discretionary

11....................... Controls are designed to minimize or negate the defect of errors... E.g. back up of computer input at the
end of the day.
A. Backup
B. Correct
C. Accounting
D. Detect.
E. Prevent.

12. .......................... Control is required by law and imposed by external authorities.
A. General
B. Mandated
C. Discretionary
D. Voluntary.

13. .................... Controls are provided automatically by the system and cannot be overridden. E.g. entering a pin in ATM
A. Financial
B. Manual
C. General
D. Non- Discretionary

14. A .................... Is a list that is drawn up before any processing takes place?
A. Post list
B. Pre List
C. Total List
D. Job list.

15. Acknowledgment of work means Person who carries out a particular job should acknowledge their work by getting
the signature of its senior manager
A. True
B. False



                                                                                                                                78
16. Funds and property of the company should be kept under proper custody. Access to assets should be limited
to........................
A. Directors
B. None Executive Directors
C. Authorized personal.
D. Bankers or lenders

17. ................. Is a part of internal control system?
A. External Audit.
B. Management investigation
C. Special Checking team
D. Internal Audit

18. Internal Audit need is depending on the following (state which is the wrong one.)
A. Problem with the internal Control system
B. An increased number of unexplained or unacceptable events
C. Cost benefit considerations
D. When management is satisfied with the internal control system.

19. Internal Auditors seeks to monitor the financial activity of a company only.
A. True
B. False

20. Operation Audit is also known as management, efficiency or value for money audit.
A. True
B. False

21. ........................ Objective is to monitoring of management's performance at every level to ensure optimal functioning
according to pre determine data.
A. Management Investigation
B. Operational Audit
C. System Audit
D. Transactions Audit

22. ........................ Is based on a testing and evaluation of the internal controls within an organization so that those
controls may be relied on to ensure that resources are being managed effectively and information provided accurately
A. System Audit
B. Value of Money
C. Operational Audit
D. Social Audit.

23. Which of the following is not a type of Internal Audit?
A. Management Investigation
B. Operational Audit
C. Legal Audit
D. Transactions Audit
E. Social Audit.
F. System Audit.

24. ............................ Seeks evidence that the internal controls are being applied as prescribed.
A. Compliance Test
B. Substantive Test
C. Error detection Test                       D. Productivity test.
                                                                                                                                  79
25. ........................... Test is used to check the entries in the figures in accounts. They are used to discover errors and
omissions.
A. Error and Omission
B. Accounts
C. Casting
D. Substantive

26. A Transactions or Probity Audit aims to detect fraud and uses only substantive tests.
A. True
B. False

27. Internal Auditors are Answerable and Accountable to...................
A. Senior Manager.
B. Senior Auditor
C. Company Financial Head
D. Highest Executive Level

28. This is wrong Perception that Independence is vital for the work and productivity for Internal Auditors.
A. True
B. False

29. External Auditor has a much wider scope then the Internal Auditors.
A. True
B. False

30. External Auditors works relates to the Operations of the Organization.
A. True
B. False.

31. The external auditors do not have a specific duty to detect fraud.
A. True
B. False.

32. A .............. Can be maintained of unauthorized attempts to gain access to a computer system.
A. Database
B. Log
C. Password
D. Register

33. It is in practice.................... To prevent all threats cost effectively.
A. Impossible
B. Possible
C. Logical
D. Practical.

34. Physical access control is design to prevent...................... Getting near to computer equipment or storage media.
A. Managers
B. IT Workers
C. Intruders
D. Operators.



                                                                                                                                     80
35. An ................... Is a record showing who has accessed a computer system and what operations he has perform.
A. A Fraud Trial
B. Password Trial
C. Computer Trial
D. Audit Trail

36. The internal auditors are not required to consider fraud.
A. True
B. False

37. The intention of the Audit Trial is to ..................... And.....................
A. Detect Fraud
B. Detect input and output record
C. Identify User
D. Identify errors
E. System performance.

38. An Audit trial should be provided so that every transaction on a file contain a...........................
A. Audit Mark
B. Unique Reference
C. Internal control ref.
D. Software Ver. Detail

39. Archiving provide a legally acceptable ......................... While freeing up.......................
A. Accountability
B. Password
C. Business History
D. Employees time
E. Hard disk space.

40. Archiving mean moving data from primary storage to..........................
A. Short term storage.
B. Paper Storage
C. Computer logs
D. Portable media or long term Storage.

41. A Contingency is an unscheduled interruption of computing services that requires measures outside the day to day
routine operation procedure.
A. True
B. False

42. A …………………………….. Audit aims to detect fraud and uses only substantive tests.
A. Transactions or probity
B. Compliance
C. Working Audit
D. Tax Audit.

43. To whom is the external auditor primarily accountable?
A. The directors of the company
B. The Company as a separate entity
C. The shareholders of the company
D. The employees of the company


                                                                                                                        81
44. An organization has a policy of checking all invoices from suppliers against goods received notes before paying the
invoices.
This is an example of what type of control procedure?
A. Accounting controls
B. Correct controls
C. Detect controls
D. Prevent controls

45. Below are few factors that influenced the control environment. Which of the following one is incorrect?
A. Management attitude toward control.
B. Organization Structure.
C. Stakeholder perception.
D. Values and ability of employee’s.

46. Control Environment. Which of the two control classifications are related to reduce of risk associated to computer
environment?
A. General.
B. Application.
C. Manual.
D. Voluntary.

47. ……………………….are the controls which are subject to human discretion.
A. General.
B. Application.
C. Manual.
D. Discretionary.

48. Arithmetical internal check includes the following three steps. Which of the following is not correct?
A. Pre-list.
B. Post-list.
C. Segregate tasks
D. Control total.

49. The main responsibility of the external auditor is to ensure that the financial statements of the client are
A. Accurate and free from bias.
B. Should reach the Govt. Authorities on time.
C. Should have a detail report on the performance of internal auditors performance
D. Gave a true and fair view of the company activities.

50. External auditor should also see whether the management and the directors has act on the recommendations of the
internal auditors in their report about the weakness and other areas of the company.
A. True.
B. False.

51. One of the main responsibilities of the external auditor is to ensure that company complies with the regulations
relating to preparing the financial statement on time and submit the copy to the govt. authorities.
A. True.
B. False.

52. Substantive test are tests by an auditor to establish whether a figure in the financial statement is correct or not.
A. True.
B. False.


                                                                                                                           82
53. Physical threats to computer security may be natural or man made.
A. True.
B. False.

54. Destruction of data can be even more costly than the destruction of hardware. Company data is more important than
hardware.
A. True.
B. False.

55. Physical access of intruders to the computer equipment and data can be control by the following way. State the one
incorrect?
A. Personal control like security guards or watch man etc.
B. Door locks and Cameras
C. Sign of no entry.
D. Intruders Alarms.

56. Modern computer equipments are safe from theft due to their extra large size.
A. True.
B. False.

57. Which of the following two are the most important aspect of physical access control to the computer equipment.
A. Personal control like security guards or watch man etc.
B. Door locks
C. Card entry system. .
D. Intruders Alarms

58. …………………….in the context of security is preserved when data is the same as in source documents and has not been
accidentally or intentionally altered destroyed or disclosed.
A. System integrity
B. Risk control
C. Data redundancy.
D. Data integrity

59. …………………………….. Mean a same data in two or more places. System database through data integration
reduce/delete duplicate data.
A. System integrity
B. Risk control
C. Data redundancy.
D. Data integrity

60. Back-up control in computer data protection aims to maintain system and data integrity.
A. True.
B. False.

61. A ……………………….can provide a restorable history from one day to several years, depending on the needs of the
business.
A. Old unused computer.
B. Tape rotation scheme
C. Physical hard copies of record.
D. Company accountant.

62. The key objective of the internal Audit is to protect and report for the benefits of the stakeholders.
A. True.                           B. False.
                                                                                                                     83
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Answer for Chapter 9. Control, Security and Audit
 1 AD 11 B 21 B 31 A 41 A 51                                                                         B       61 B
 2 CD 12 B 22 A 32 B 42 A 52                                                                         A       62 B
 3  B 13 D 23 C 33 A 43 C 53                                                                         A       63
 4  E 14 B 24 A 34 C 44 D 54                                                                         A       64
 5 ABC 15 B 25 D 35 D 45 C 55                                                                        C       65
 6  D 16 C 26 A 36 B 46 AB 56                                                                        B
 7  C 17 D 27 D 37 AD 47 D 57                                                                       BC
 8  F 18 D 28 B 38 B 48 C 58                                                                        D
 9  C 19 B 29 B 39 CE 49 A 59                                                                        C
 10 A 20 A 30 B 40 D 50 A 60                                                                         A
Explanation
15. He or she should do sign or Rubber stamp etc belonging to him
19. Internal Auditors seeks to monitor all aspects of the business.
28. It is vital for the Internal Auditors that they must be independent and free from all pressures.
29. Internal Auditor has a much wider scope.
30. External Auditor have nothing to do with the operations of the business their job is to report the stake holders about
the full and fair presentation of financial statement
31. It is the duty of the internal auditors to detect Frauds. While in the process of audit due to their work and amylases if
they find any fraud or error then they can gave their opinion.
36. This is their duty
56. Modern computer are very small in size and portable in nature.
62. The internal audit is for the management not for the shareholders.




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                                                                                                                           84
Chapter 10. Identifying and preventing fraud.
1. ......................... A false representation of fact make with the knowledge of its falsity or without belief in its truth.
A. Truth
B. Fraud
C. Theft
D. Error.

2. Payroll fraud, conspiracy with other parties and stealing company assets are..................... Frauds.
A. Common
B. Technical
C. Careless
D. Intentional.

3. Pilfer items of inventory including sales item, office stationery, and computer paper etc are........................
A. Employees right
B. Teeming and lading
C. Trivial lost
D. Theft of inventory. / Unsophisticated fraud.

4. Where a fictitious member of staff is been added to the salary list. This type of fraud is known as. ....................
A. Employee fraud
B. Bogus fraud
C. Payroll fraud
D. Work force fraud.

5. Teeming and lading is the method of fraud done in the sales ledger or sales department
A. True
B. False.

6. Fictitious customer’s fraud this is not necessary that the employee must have responsibility for taking goods order as
well as the authority to approve a new customer for credit.
A. True
B. False

7. Mexter Limited has given sales executive a sales limit of 5000 $ for new client sales promotion. Arif was a sales
executive in mexter limited. He take order for 4500 $ from a new client kessler traders which have no previous record
with the company. Arif left the job later company found that no such client physically exits. Company mark 4500 as bad
expense. What type of fraud is this......................................
A. Theft of inventory
B. Collusion with customer
C. Fictitious customer
D. Promotion fraud.

8. Kim is a senior manager in dany ltd. He billed this company for the consultancy charges which was never provided. The
bill was for 1200 $ and was in the name of xebox limited which was owned by Kim himself. What type of fraud this is?
A. Teeming and lading
B. Collusion with customer
C. Fictitious customer
D. Bogus supply of goods or service.



                                                                                                                                     85
9. Billas the purchase executive in Halex industries collude with the supplier for the supply of 2000 bags of fertilizer which
was actually supplied 1800 and billed for 2000 and later was paid for the same as billed. What type of fraud is this?
A. Bogus supply for goods and service
B. Fictitious supplier
C. Paying for goods not received.
D. Theft of inventory.

10. Understates the rate of depreciation will have no impact on the profits and book value of the company.
A. True
B. False.

11. The financial head of Pilado co. Decided to show poor financial result for the company this year. In order to do so,
which of the following option he will not choose.
A. Over valuation of the closing inventory
B. Understated the depreciation charges
C. Overstate the expenses
D. Over state the purchases.

12. What are the 3 prerequisites for fraud? State the one incorrect.
A. Dishonesty
B. Manipulation knowledge
C. Motivation
D. Opportunity.

13. .................... Define as an individual tendency to act in a way which is contravening accepted ethical, social,
organizational and legal norms for fair and honest dealing.
A. Cheating
B. Dishonesty
C. Criminal
D. Illegal activity.

14. Karen was senior accountant in Lexberg soft. In love of getting expensive and new model mercedize benz and to be
well known in the society the execute a high value cash theft. This is the perfect example of theft of cash fraud due to
dishonesty. Can you tell which factor of dishonesty is this?
A. Cultural factor
B. Personal factor
C. Social factor
D. Criminal factor.

15. Which of the following is not the high fraud risk indicator?
A. Lack of integrity
B. Excessive pressures
C. Poor control system
D. Effective system of transaction authorizations.
E. Unusual transaction
F. Lack of audit evidence.

16. The trend of ................... May reduce the degree of supervision exercised in many organization without putting
anything in its place.
A. Audit
B. Internal control
C. Delayering
D. Span of control.
                                                                                                                            86
17. Is this true that few industries are particular exposed to certain type of fraud in which they exist.
A. True
B. False

18. Which of the following is not the internal factor of fraud in an organization?
A. Changed operating environment                   b. New personal
C. Rapid growth                                    d. New technology
E. New or upgraded M.I.S                            f. Effective internal check / control.
G. New products                                    h. Corporate restriction / overseas operations

19. Delo craft company profit for the years shows significantly high then the rest of the industry standards firm. What will
be the possible frauds may be the reason of his margin deviation.
A. Manipulation of the accounting records
B. Collusion with the existing customers
C. Creation of fictitious customer
D. Understated depreciation
E. None of the above.
F. All of the above.

20. Sidra energy shows a rapid decline in the company profits which was under performing relative to competitors which
of the following is not the case of fraud relate to this case
A. Indication of theft
B. Collusion with suppliers
C. Deliberate errors in account records.
D. Understated inventory.

21. Organization with complex group structures including numerous domestic and overseas subsidiaries and branches are
not susceptible to fraud
A. True
B. False.

22. A sheer size of the group can offer low opportunities to lose transactions or to hide things in intercompany account.
A. True                  B. False.

23. Vast staff numbers contribute to a certain degree of employee anonymity making it easier to conceal fraudulent
activities.
A. True
B. False.

24. As per personal risk states which of the following are the clues that indicate that a person is engaging in fraud?
A. Secretive behavior
B. Expensive life styles
C. Long hours or untaken holidays.
D. Autocratic management style
E. Lack of division of duty and law staff morale
F. All of the above.

25. If the results of a company are overstated which of the following is incorrect?
A. Retained profits will be lower than believed
B. Incorrect decisions will be made for expansions
C. Distribute too much profit to the shareholder
D. The share price of the company move downward
                                                                                                                         87
26. If the results of a company are understated which of the following is incorrect?
A. The share price of the company drops down.
B. Banks and financial institutes will give loan on high interest rates.
C. Company will pay dividends and bonuses to shareholders
D. The company will pay low tax to govt.
E. The negative publicity will impact the public perceptions.

27. Prevention of fraud must be an integral part of ..................................... Choose the best possible answer.
A. Corporate strategy.
B. Internal audit
C. External audit
D. Administrative strategy.

28. Due to downsizing which of the following will affects the company internal control?
A. Company will have better production
B. Segregation of duties
C. Narrow span of control
D. Profits will be higher.

29. Effective control system should have the quality of .............................. Fraud. Choose the best answer.
A. Avoid
B. Reduce
C. Investigate
D. Detecting
E. Detecting and investigate.

30. Personal factors such as extensive authority result into weaker / controlled mangers.
A. True
B. False.

31. Organization factor such as unclear structure of responsibility / lack of supervision of remote location will reduce the
risk of fraud.
A. True
B. False

32. Strategy factors such as lack of business strategy or great emphasis being placed on reward will results in high risk of
fraud.
 a. True
B. False

33. Appropriate documentation requirement for all transactions will not reduce high risk of fraud.
A. True
B. False

34. Fraud officer should talk to staff confidentially and provide advice with the permission of the senior management.
A. True
B. False.

35. External auditors are not required to report all instance of fraud to the management.
A. True
B. False.



                                                                                                                             88
36. External auditors should also report to management for any material information or weakness in the accounting and
internal control system.
A. True
B. False.

37. In limited companies the prime responsibility for preventing and detecting fraud is on the shoulders of.....................
A. Senior managers
B. External auditors
C. Directors
D. Non executive directors.

38. The responsibility of the external auditors is only to express an opinion upon whether the financial statements give a
true and fair view of the company financials situation and results.
A. True
B. False.

39. A fraud which has been designed to escape detection from auditors is known as.
A. Unsophisticated frauds
B. Common frauds.
C. Criminal frauds.
D. Sophisticated frauds.

40. If in the case of fraud the auditors consider that matter should be reported to an appropriate authority in public
interest. They request that the ........................... Should make the report.
A. Management
B. Directors
C. Government
D. Security and exchange commission.

41. Bestcom industries external auditor extracts a massive fraud in the company financial statement. The auditor’s
further finds that the key directors and N.E.Ds are also involve in the fraud. What should they do in the public interest?
A. They should report the police.
B. They should do public protest.
C. They should inform the print and electronic media.
D. They should make a qualify report for stake holders / stock holders.

42. When fraud occurs what steps should management takes to investigating and dealing with the consequences of
frauds that have occurred.
A. Ensuring the security of the record
B. Securing of the assets.
C. Suspending suspected staff
D. Changing computer passwords
E. All of the above
F. None of the above.

43. Sales made just before year end can be deliberately over-invoiced and credit notes issued with an apology at the start
of the New Year. This will enhance turnover and profit during the year just ended. This is called.
A. Window dressing
B. Credit fraud
C. Sales error
D. Accounts error.



                                                                                                                               89
44. ............................ Is an unintentional mistake.
A. Fraud
B. Misstatement
C. Error
D. None of the above

45. Window dressing and cooking of books are examples of financial statement fraud.
A. True
B. False.

46. Following are some of the fraud done by the employees of the company. Select the one incorrect.
A. Teaming and leading
B. Payroll fraud
C. Purchase ledger fraud
D. False billing fraud.

47. The selling of intellectual property that is plans and information about new upcoming products to competitor are
normally done by.........
A. Accounting staff
B. General worker
C. Higher management
D. Information technology staff.

48. Which of the following is not a sales ledger fraud?
A. Stealing receipts from the debtors and later writing them as bad debt.
B. Window dressing.
C. Pocketing the proceeds of cash sales and never entering them in sales ledger
D. Teaming and leading.

49. A fraud in which payment from one debtor is pocketed by fraudster and on the next day he shows the receipt from
another debtor payment in the first one. This is the example of.........................
A. Teaming and leading
B. Inventory fraud
C. Payroll fraud
D. Purchase fraud.

50. Teaming and leading is normally happened in the sales system. Do you think it can also happen in purchases system?
A. True
B. False.

51. A strategy for investigating and dealing with the consequences of suspected or identified fraud is called a fraud
response plan.
A. True.
b. False.

52. ………………………………… should act on signs of dishonesty by senior executive management.
A. Internal auditors.
B. External auditors.
C. Non-executive directors.
D. Employee’s union.




                                                                                                                        90
53. ……………………………. Should review the organization performance in fraud prevention and report any suspicious
matters to the board.
A. Internal auditors.
B. External auditors.
C. Non-executive directors.
D. Audit committee of BOD.

54. Remuneration related to performance on the basis of profit is an effective tool to control fraud.
A. True.
B. False.

55. The directors of the company and the senior management are not responsible for preventing and detecting fraud
internally and externally.
A. True.
B. False.




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Answer for Chapter 10. Identifying and Preventing Fraud.

 1           B         13          B        25           D        37          C         49          A        61
 2           A         14          B        26           C        38          A         50          A        62
 3           D         15          D        27           A        39          D         51          A        63
 4           C         16          C        28           B        40          B         52          C        64
 5           A         17          A        29           E        41          D         53          D        65
 6           B         18          F        30           A        42          E         54          B        66
 7           C         19          F        31           B        43          A         55          B        67
 8           D         20          D        32           A        44          C         56                   68
 9           C         21          B        33           B        45          A         57                   69
 10          B         22          A        34           B        46          D         58                   70
 11          B         23          A        35           B        47          C         59                   71
 12          B         24          F        36           A        48          B         60                   72
Explanation
5         Teeming and lading is the best known methods of fraud in the sales ledger area
6         Must have it. If someone else gave authority it will detect the scam.
7         Arif has the permission to take order and approve credit.
8         This needs senior staff, falsely invoice and goods or service never supplied. And also personal or friend company.
9         Collude with supplier and received less items then billed.
10        Understating Expense will show high profits in accounts.
11        This will result in the increase of income.
14        Cultural Factors are National or familial Values. These are for herself.
17        Yes there are certain types of fraud associated to some industry
20        Understating Inventory will result in High Gross margins.
21        They are more capable of frauds.
30        Dominant manager will do thing they way he do.
33        This will reduce the chance of fraud as document will check on different stages.
34        Fraud officer is free to talk and gave advice to staff.
35        They are required to report all frauds to the management.
54        This is one of the prime reasons of frauds.
56         They are.




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                                                                                                                               92
Chapter 11. Leading and managing people. Part E.
1. The management of the company is accountable to ........................................
A. The owner
B. Share holders
C. Govt. In the case of Public ltd
D. All of the above.

2. The Definition of Management as per Stewart is ..................................
A. Getting things done through other people
B. Experts who run a company
C. People who act on behalf of the stake holders

3. Organization is defined as. “a Social arrangement for the controlled performance of collective goals."
A. True
B. False

4. Organization Definition suggest that Somebody have to look after the interest of the ...................... And other ...............
A. Government
B. NGOs
C. Organization Owners
D. Stake holders.

5. ............................ Have to be set for the Organization
A. Objectives
B. Principles
C. Rules and Regulations
D. Guidelines

6. Its the role of the manager to take ......................... And ................. People to get things done.
A. Challenge.
B. Responsibility
C. Motivate
D. Organize

7. Authority is the Decision making discretion given to the managers while responsibility is the obligation to perform
duties.
A. True
B. False.

8. Power is the right to do something while Authority is the ability to do something.
A. True
B. False.

9. ............................. Is the liability of a person to discharge duties and obligation to do something.
A. Rules
B. Responsibility
C. Authority
D. Accountability.



10. ......................... In known as when a superior gives to a subordinate the discretion to make decisions within a certain
sphere of influence.
                                                                                                                                     93
A. Delegation of Authority
B. Responsibility
C. Subordinate Power and rights
D. Liability of Worker.

11. Without.......................... A formal organization could not exist.
A. Responsibility
B. Progress
C. Internal Audit
D. Delegation.

12. Peter is the CEO of FX Securities. He appoints John as a Senior Sales officer in the Green Sales zone of the company
with complete authority. John gave his subordinate David the Delegation of Authority for Sales in particular area. If due
to poor work of david company suffer who is accountable?
A. Only David
B. CEO Peter
C. John and Peter (CEO)
D. John and David.

13. According to Harzberg Responsibility is an important factor of job Satisfaction and motivation.
A. True
B. False.

14. The power with disruptive attitude and behavior to stop something from happening is ............................. Power
A. Coercive
B. Referent
C. Negative
D. Physical

15. What kind of power is used by a manager who promises a pay increase if productivity rises?
A. Reward Power
B. Referent Power
C. Coercive Power
D. Physical Power.

16. Roger Warn his Subordinate that if the assignment didn't finish on time we will be fired. What type of power is this?
A. Position power
B. Expert power
C. Coercive Power
D. Referent power.

17. Position power is also called as ......................
A. Negative power
B. Legitimate power
C. Referent power
D. Legal power.

18. Which of the following is not the power belongs to Middle Managers.
A. Expert power
B. Negative power
C. Reward power
D. Coercive power.


                                                                                                                              94
19. Managers have no Role in working planning, resource allocation and project management.
A. True
B. False.

20. Considering tasks in order of importance for achieving objectives and meeting deadlines is called.
A. Task Sequencing
B. Prioritization
C. Above both
D. None of the above.

21. Project planning is not generally a repetitive activity.....
A. True
B. False.

22. Project generally (state which one is incorrect)
A. Have specific start and end points
B. Have unlimited time to complete.
C. Have a well defined objectives, cost and schedules
D. Cut across organizational and functional boundaries

23. The job of the project management is to foresee as many ................................ As possible and to plan, organize and
co ordinate and control activities.
A. Opportunities
B. Projects
C. Contingencies
D. Possibilities.

24. Henri Fayol was a German Industrialist ( 1841 -1905 )
A. True
B. False.

25. Which of the one not belong to Henri Fayol Five functions of management.?
A. Planning                              b. Organizing
C. Communicating                         d. Commanding
E. Co-ordinating                         f. Controlling.

26. Supervision is the interface between ............................ And .............................
A. Internal Auditors
B. External Auditors
C. Operational Core
D. Management.
E. N E Ds.

27. Operational Core are ................................ Workers
A. Non-management
B. Management
C. Technical Management
D. Scientific Management.

28. Supervisor is the....................... Level of management
A. Upper
B. Middle
C. Lower                       D. Lowest. / front line
                                                                                                                                     95
29. Supervisor spends much of its time on managerial aspects of this job then technical / operational work.
A. True
B. False.

30. Management is about Coping with complexity its functions are to do with logic, structure, analysis and control, and
are aimed at producing order, consistency and predictability.
A. True
B. False.

31. Leadership is about coping with change its activities include creating a sense of direction, communicating strategy,
and energizing, inspiring and motivating others to translate the vision into action.
A. True
B. False.

32. Leadership can only be exercised over ............................
A. Activities
B. Projects
C. Peoples
D. Resources

33. Management can be exercised over. Indicate which one of the following is not correct.
A. Peoples
B. Activities
C. Projects
D. Resources
E. Non-personal things.

34. ...................... Theory is based on analyzing the personality characteristics or preference of Successful leaders.
A. Trait
B. Style
C. Contingency
4. Situational.

35. Leadership style is the cluster of leadership behavior that is used in different ways in different situation.
A. True
B. False.

36. Which of the following is not the style of Ashridge management model?
A. Tell (autocratic)
B. Sell (persuasive)
C. Decide.
D. Join (Democratic)
E. Consult

37. Ashridge Studies found that Subordinates preferred the ......................... Style of leadership.
A. Consult
B. Sell
C. Decide
D. Join
E. Tell




                                                                                                                               96
38. Frederick W Taylor was pioneered the ........................... Management.
A. Human Resource
B. Functional
C. Administrative
D. Scientific.

39. Position power is also known as legitimized power.
A. True.
B. False.

40. Which type of power is associated with line authority?
A. Physical power
B. Resource power
C. Legitimate power
D. Expert power




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Answer 11. Leading and managing people
  1           D            11           D         21            A            31           A
  2           A            12           D         22            B            32           C
  3           A            13           A         23            C            33           A
  4          CD            14           C         24            B            34           A
  5           A            15           A         25            C            35           A
  6          BD            16           C         26           CD            36           C
  7           A            17           B         27            A            37           A
  8           B            18           D         28            D            38           D
  9           B            19           B         29            B            39           A
  10          A            20           C         30            A            40           C




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                                                                                                  98
     Chapter 12. Individuals Groups and teams
1. A group of people who have common interest. Meet in and outside of the organization to exchange information or get
together and have a frequent fluctuating in members. This type of group is known as ..................................
A. Formal Groups
B. Working Groups
C. Informal Groups
D. In and out Groups

2. When incompatibility occurs due to worker personality what option managers have. State the one not correct.
A. Restore compatibility
B. Time will make him perfect.
C. Achieve a compromise
D. Remove the incompatible personality.

3. The process in which brain selects and organizes information in order to make sense of it is known as ....................
A. Reaction
B. Perception
C. Behavior
D. Personality.

4. The individual standpoint on working, work conditions, colleagues, the task, the organization and management is
known as Attitude at Work.
A. True
B. False.

5. Karen is a sale represent in Total Corporation. She is not happy with the working conditions, environment, and work
load and manager expectations. On other hand Seela show a very pleasant attitude with her friends at work. She listen to
the managers and try to convince them her point, she take orders from the customers and wish them greeting. She is
positive to all workers. What kind of attitude both are feeling.
A. Karen showing negative attitude to work
B. Karen showing negative attitude at work
C. Seela showing positive attitude at work
D. Seela showing positive attitude to work.

6. The type of intelligence deal with patterns and connections. Mostly used by Artist and Designers etc is
called........................
A. Practical Intelligence
B. Analytics Intelligence
C. Emotional Intelligence
D. Spatial Intelligence

7. Intra-personal Intelligence is empathy, understanding of emotional needs of other, influence, conflict resolution, and
co-operation.
A. True
B. False.

8. When you are expected to operate in two roles at once. This is called.........................
A. Role Set
B. Role ambiguity
C. Role incompatibility / Role conflict
D. Role signs.

                                                                                                                                99
9. Role ambiguity may occur if you exactly known what role you are operating in a given time.
A. True
B. False.

10. A collection of people with same rank and interest is an example of....................
A. Team
B. Organization
C. Group
D. Force

11 Personality is the total pattern of characteristic ways of........................ (Which one is not the right answers?)
A. Thinking.
B. Feeling
C. Behaving
D. Reacting.

12. Sony Corp Select a group of 15 members whose Job is to develop a new Laptop of Touch feature. The team will be
held responsible to the R&D Director for this task. These people took 9 months to complete their task and enjoy working
as a team. This is an example of........................
A. Formal Group
B. Team Work
C. Informal Group
D. Task Group.

13. Peter make a team for its project in which he select different people from different department who are best in their
field. The propose of the team is to share their knowledge and to reach to consensus about a product development.
What kind of team is this?
A. Project team
B. Multi-disciplinary Team
C. Product or task Team
D. Multi Skilled team

14. Samsung Corporation selects 12 people from its factory who can perform multiple tasks at any time. The team
manager used different combination on the project and found all members can do and produce best result. What kind of
team is this?
A. Multi-disciplinary Team
B. Product or task Team
C. Virtual Team
D. Multi Skilled team

15. A team of expert use information and communication technology to interact with each other while working from
distance or remote areas is ...................... Team.
A. Multi-disciplinary Team
B. Nine roll Team
C. Virtual Team
D. Multi Skilled team

16. Belbin says " Ideally team members should perform a ............................. Of roles.
A. Delegated act
B. Balanced mix
C. Lay out
D. Principle Performa.


                                                                                                                              100
17. Belbin model have.................... Roles
A. 7
B. 4
C. 8
D .9

18 . A team member with Creative, imaginative character who have the tendency of solving difficult problems is a
........................ Belbin role.
A. Shaper
B. Plant
C. Specialist
D. Coordinator

19. Kaven is a team chair person of X group. The Group leader finds that he is very confident person and promotes
decision making, on other hand the delegated duties he gave to him he perform them with great care and excellence.
Which of the following role is kaven?
A. Team worker
B. Specialist
C. Plant
D. Coordinator

20. A role that listens builds, averts friction, and calms the waters is Shaper.
A. True
B. False

21. Team must have 9 member because this is requirement says Balbin.
A. True
B. False.

22. Individual are likely to be more................................ In some roles than in others.
A. Successful
B. Happy
C. Frustrated
D. Enjoyment.

23. Team member can switch to ......................... Role if required.
A. Previous
B. Desired
C. Backup
D. None.

24. Belbin suggest that an ideal team should represent a ............................... Of all roles
A. Backup
B. Balance / mix
C. Presentation
D. Layout.

25. Team members make similar type of contribution in the area of task performance and team maintenance.
A. True
B. False.

26. .......................... Have developed a helpful categorization of the type of contribution people can make to team
discussion and decision making.
                                                                                                                             101
A. Rackham and Morgan
B. Belbin
C. Tuckman
D. Mitzberg

27. Putting obstacles in the way of proposal, without offering any alternate is known as.
A. Shutting out behavior
B. Bringing in behavior
C. Blocking / Difficulty Stating
D. Proposing.

28. Interrupting or overriding others taking over e.g. Nonsense let move onto something else we are wasting time
A. Proposing.
B. Bringing in behavior
C. Blocking / Difficulty Stating
D. Shutting out behavior

29. Checking whether points have been understood. Or make it clear like... Is that car will work that’s way am i right. ? Is
example of?
A. Testing understanding
B. Giving information
C. Summarizing
D. Seeking information.

30. Four Stages of group / team development were identified by .................................
A. Belbin
B. Tuckman’s
C. Rackham
D. Buchanan

31. When Group members gather together and introduce them self each of one try to impress with their personality and
love to find about the others. New ideas are shared and leader is yet not decided. E.g. Few members are shy and not
participating. Which of the four stage of Tuckman it this?
A. Storming
B. Norming
C. Forming
D. Performing

32. The stage of group forming in which people start lots of about their idea. Conflicts between team members are more
open or less. Changes are made in Objective, procedure along with group norms. Trust and confidence b/w the member
increase. E.g. Two of the group arguing as to whose idea is the best.
A. Forming
B. Performing
C. Dorming
D. Storming

33. A process where activity being located every one known about their role and work. Method of work and time scale
has been introduce. Individuals are now ready for go.
A. Storming
B. Norming
C. Forming
D. Performing


                                                                                                                         102
34. A time came on group where group become static (stop) now team looks back into self-maintenance at the expense
of the task. E.g. Progress becomes static.
A. Forming
B. Adjourning.
C. Dorming
D. Storming

35. As per Team solidarity................................... Should be expressed and then resolved.
A. Danger
B. Disagreements
C. Agreements
D. Theories.

36. .......................... Occurs when groups are highly cohesive and when they are under considerable pressure to make a
quality decision.
A. Problem
B. Group Test
C. Groupthink
D. Dorming

37. A team can be evaluated on the basis of ...................... And ........................ Factors, covering its operations and its
output, and team member satisfaction.
A. Quantifiable
B. Hard work
C. Qualitative
D. Management.

38. High level of Absenteeism is a characteristic of effective team. ?
A. True
B. False.

39. Labor Accidents are low in an effective team
A. True
B. False.

40. In an ineffective team ideas are shared for the benefits of team.
A. True
B. False.

41. Communication between the team members are free and open in Ineffective team.
A. True           B. False.

42. The task of the team leader is to built a ............................ Team
A. Strong
B. Successful / effective
C. Safe
D. Big.

43. Team based reward may be used to encourage ............................ And mutual....................................
A. Motivation
B. Co-operation
C. Understanding
D. Accountability.
                                                                                                                                           103
44. Individual performance award may act in favor of team cooperation and performance.
A. True
B. False.

45. Profit sharing schemes are based on the distribution of a ................................. Related to profit.
A. Medals
B. Gifts
C. Pool of Cash
D. Certificates.

46. Employee Share Option means giving staff the right to acquire share in the employing company at .................. Price.
A. Attractive
B. Cost plus Premium
C. Zero Value
D. Market Value.

47. The fifth stage which has been added to Tuckman’s four stages of team development is ……………………………
A. Warming
B. Reforming
C. Dorming
D. Leading

48. At which stage of team development according to Tuckman’s, will the effectiveness of work be at the lowest point?
A. Forming
B. Storming
C. Norming
D. Performing.

49. There are three main issues in the development of a team. Which one of the following is incorrect?
A. Team identity
B. Team solidarity
C. Team Outlines
D. Shared objectives

50. A team cannot be evaluated on the basis of quantifiable and qualitative factor covering its operations and its output.
A. True
B. False




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                                                                                                                           104
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Answer for Chapter 12. Individuals, groups and teams
   1  C 11                         C        21          B         31 C 41 B
   2  B 12                         A        22          A         32 D 42 B
   3  B 13                         B        23          C         33 B 43 BD
   4  B 14                         D        24          B         34 C 44 B
   5 AC 15                         C        25          B         35 B 45 C
   6 D 16                          B        26          A         36 C 46 A
   7  B 17                         D        27          C         37 AC 47 C
   8  C 18                         B        28          D         38 B 48 B
   9  B 19                         D        29          A         39 A 49 C
  10 C 20                          B        30          B         40 B 50 B
Explanation
1 This is the explanation of informal groups see page 292 at 2.3
2 Managers have 3 options to deal with personal issues with compatibility
4 Attitude at work mean who he behave with other individuals, politics, education or religion
7 These are all related to inter personal intelligence.
9 Role Ambiguity occurs when have no knowledge about its role or act.
11 Behaving is not in the definition. See page 288 1.1
18 Plant role have Creative, imaginative, unorthodox and solves difficult problems
19 Coordinator (chairman) is mature, confident, a good chairperson and clarifies goals and delegates well
20 Shaper is Challenging, dynamic who drive and overcome obstacles. While Team worker is the one who averts friction
21 Team can have any number of members as per its need.
25 Team members make different type of contribution as per Rackham and Morgan studies.
38 Effective team have low worker absents as all workers are satisfied.
40 No ideas are owned by individual for their own benefit
41 There is an extreme mistrust so no one share its information with other.
44 Every one will hide information and try to prove himself to get reward




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                                                                                                                 105
   Chapter 13. Motivation individuals and groups.
1. Organization is in a position to offer some of the................................... People might seek.
A. Satisfaction
B. Education
C. Entertainment
D. Activity

2. If people needs are being met and goals being fulfilled at work? They will more likely to have a .................................
Attitude at work.
A. Neutral
B. Soft
C. Negative
D. Positive.

3. To achieve the positive attitude at work Organization have to fulfill workers …………………… and …………………………
A. Needs
B. Wishes
C. Hopes
D. Goals

4. The impact of ……………………….. On job satisfaction and morale on performance are difficult to measure.
A. Management
B. Conflict
C. Culture
D. Motivation.

5. Motivation is about getting extra levels of …………………………. And …………………………. From employees, over and above
mere compliance with rules and procedures.
A. Over time
B. Performance
C. Commitment
D. Hard work.

6. Low Morale implies a state of ……………………………………………
A. Satisfaction
B. Unpleasantness
C. Unhappiness
D. Dissatisfaction

7. Low Production and High labor turnover are not a reliable indicator of ……………………………………….
A. Work lost
B. Environmental issues.
C. Low Morale
D. Bad Manager

8. Low Labor Turnover is an excellent example of high morale of workers?
A. True
B. False.

9. Workers Perception about their job satisfaction can be indicated by mean of a ……………………………….. Surveys.
A. Compliance
B. General.
                                                                                                                                    106
C. Internal Audit.
D. Attitude.

10. What are the things that motivate peoples are called ………………………………………….. Theories.
A. Motivate theory
B. Content Theory
C. Process Theory
D. Kinetic Theory.

11. Herzberg’s two factor theory and Maslow’s hierarchy are the example of …………………………………… Theory.
A. Motivate theory
B. Process Theory
C. Content Theory
D. Kinetic Theory.

12. Process Theories ask the question. Which one is correct?
A. How can people be motivated?
B. Why people are unsatisfied
C. Why people are motivated
D. What are the things that motivate people?

13. Following 2 are the example of Process theories.
A. Herzberg’s two factor theory
B. Expectancy theory
C. Maslow Hierarchy Theory
D. Handy motivation calculus.

14. Abraham Maslow described ……………………………. Innate human needs.
A. Five
B. Seven
C. Eleven
D. Three.

15. The need for ……………………………………. Can rarely be satisfied.
A. Love / Social Needs
B. Esteem needs
C. Physiological needs
D. Self Actualization

16. According to Maslow each level of need is ………………………………. Until satisfied and only then next level of need can
become a motive factor.
A. Dominant
B. Important
C. Completed
D. None.

17. As per Maslow ………………………….. Requirements are not met, the human body simply cannot continue to function.
They are the basic needs of human e.g. Food, Shelter and cloths.
A. Love / Social Needs
B. Esteem needs
C. Physiological needs
D. Self Actualization


                                                                                                               107
18. What are the other 2 needs which are Maslow Described? Those are not in this diagram
A. Freedom of enquiry and expression needs
B. Knowledge and understanding needs
C. Physiological needs
D. Self Actualization

19. Safety need are the needs for security of work, unemployment and against sick. How can Organization overcome
them? Select the best 2.
A. By Verbal Assurance
B. By Management behavior
C. Employment Legislation
D. Arrangement for Pension Security and ill treatments.

20. Social needs are the needs to.........................................
A. Have picnic and party every Sunday
B. Have 5 % extra pay
C. Have Freedom to enquiry and expression
D. Interact with other people or Groups.

21. Esteem needs are Ego needs.
A. True
B. False

22. Maslow says that the management must make sure that .............................. Needs should satisfied before they try to
motivate employee with initiative aimed at the satisfaction of higher level needs.
A. Esteem needs
B. Love / social needs
C. Low level needs
D. Entertainment need.

23. Deferred gratification means people are prepared to ignore current suffering for the promise of future benefits?
A. True
B. False.

24. Altruistic behavior refer to the meanings that people never sacrifice their own needs for others?
A. True
B. False.

25. Herzberg's two factor are ......................... And ....................................
A. Salary factor
B. Education
C. Hygiene factor
D. Motivator factor.

26. Hygiene factor are to do with the.............................. And .................................................
A. Environment
B. Health
C. Conditions of work
D. Extra time activities.

27. Inadequate hygiene factors will cause Satisfaction with work.
A. True
B. False.
                                                                                                                            108
28. The need of personal growth in Herzberg theory is satisfied by .................................... Factor
A. Hygiene
B. Medical Treatment
C. Motivator
D. Environment.

29. A lack of motivator factors will encourage employees to concentrate on the ..........................
A. Employee turnover
B. Company internal matters
C. Govt. Enforcement Agencies.
D. Hygiene factors.

30. Following are the evidence of poor motivator. Which of the following is incorrect?
A. Low productivity
B. Poor Quality
C. Employees Strikes
D. Job security

31. Herzberg's theory says that management should pay special attention on hygiene factors such as pay and conditions.
A. True                 B. False

32. Herzberg suggested three types of job design which would offer job satisfaction through enhanced motivator factors.
State the two which are incorrect.
A. Job Redundancy
B. Job enlargement
C. Job Dismissal
D. Job Rotation
E. Job enrichment

33. The theory for predicting the strength of an individual's motivation to put in effort at work is .............................
Theory
A. Herzberg‘s 2 factor theory
B. Vroom’s Expectancy Theory
C. Maslow's Theory
D. McGregor’s Theory of X and Y

34. Vroom's Expectancy equation is................................................
A. V = E x F
B. E = F x E
C. F = V x E x F
D. F = V x E

35. The two factors of Vroom's theory are ........................ And ................................
A. Force
B. Valence
C. Expectancy
D. Pay

36. McGregor explains two sets of assumptions about people at work. Which is called ................. And ............... Theory
A. Theory of XY
B. Theory of X
C . Theory of F = V x E
D. Theory of Y
                                                                                                                                     109
37. Theory X suggests that most people like work and responsibility and will do both if possible.
A. True
B. False

38. The theory X suggests that manager should use .............................. Tools to control workers.
A. Fear
B. Punishment
C. Direction
D. All of the above

39. Theory Y suggests that physical and mental effort in work is as natural as play or rest.
A. True
B. False.

40. Incentive is the ................................... Of a reward.
A. Alternate
B. Promise or Offer
C. Punishment
D. Poor Result.

41. ............................. Rewards are separate from the job itself or Outside the control of an Individual itself.
A. Extrinsic Rewards
B. Intrinsic Rewards
C. Achievement Reward
D. Excellence Reward

42. ..........................rewards include the satisfaction that comes from completing a piece of work, the status that certain
jobs convey, and the feeling of achievement that comes from doing a difficult job well.
A. Achievement Reward
B. Intrinsic Rewards
C. Extrinsic Rewards
D. Year End Reward

43. Cash bonus, basic pay, share option scheme, pension and medical benefits are the example of .................................
Rewards
A. Misc Rewards
B. Intrinsic Rewards
C. Extrinsic Rewards
D. Year End Reward

44. The ...................................system is refers to the system of extrinsic rewards that an organization can give to its
employee. The best examples are pay and promotion.
A. Reward System
B. Review system
C. Incentive system
D. Pay and promotion system

45. Micro Design jobs are best described as.
A. The complete process is Reduce to very few levels
B. Job is divided into small level of sequential task.
C. Jobs are done with the help of Micro scope
D. Very little Resources are used.


                                                                                                                                      110
46. Micro Design of Job is a micro division of labor.
A. True
B. False

47. Excessive job simplification leads to lower quality, through inattention and loss of morale.
A. True
B. False.

48. Vertical Extension of Job into greater level of responsibility means Job ..............................................
A. Job enlargement
B. Job Scarification
C. Job rotation
D. Job enrichment.

49. Job enrichment means empowerment of workers, and active role in decision making and planning.
A. True
B. False

50. Job Enlargement is term which refer to ..................
A. Widen jobs by increasing no of operation in which a job holder is involved.
B. Job which have to complete with lots of Product processing
C. A very large or lengthy job.
D. Job which need to be complete with large no of people.

51. Job Enlargement with contradicts the principles of specialization and the division of labor whereby work is divided
into small units
A. True
B. False.

52. ........................... Is the planned transfer of staff from one job to another to increase task variety.
A. Job Enrichment
B. Job Enlargement
C. Job Rotation
D. Job optimization

53. ............................. Is given when a particular area of performance needs to be improved helping the individual to
identify what needs to be changed and how this might be done
A. Constructive Feedback
B. Development Feedback
C. Motivational Feedback
D. Performance Feedback.

54. Motivational feedback is used to reward and reinforce positive behavior and performance by praising and
encouraging the individual.
A. True
B. False.

55. How is pay determined? Job evaluation. The salary structure is based on ........................, and not on the personal
merit of the job-holder.
A. Market Supply and Demand.
B. Worker Skills
C. Job Content
D. Contacts with Manager.
                                                                                                                                  111
56. What is the term PRP means?
A. Performance Related Pay
B. People Reality Pay
C. Public Reward Procedure

57. Rewards are only monetary not others.
A. True
B. False.

58. ……………………………….. Rewards are psychological rather than material and relate to the concept of job satisfaction.
A. Achievement Reward
B. Intrinsic Rewards
C. Extrinsic Rewards
D. Year End Reward

59. Job itself can be a motivator or a cause of dissatisfaction.
A. True
B. False.

60. According to the Herzberg’s two factor theory. Pay is a motivator factor.
A. True
B. False.

61. Herzberg’s two factor theory. Which of the following one is not a hygiene factor?
A. Company policy and administration.
B. Salary or pay / Job security
C. The quality of supervision / working condition.
D. A sense of Achievement / Growth in the job.

62. Herzberg’s two factor theory. Which of the following one is not a motivator factor?
A. Status / Advancement / work itself.
B. Growth in a job / sense of achievement.
C. Challenging work / Responsibility.
D. Salary / job security / working conditions.
E. Recognition by colleagues and management.

63. Management should pay attention on the motivator factor. Lack of motivator factor will lead workers to concentrate
on hygiene factor.
A. True
B. False.

64. McGregor’s Theory of X and Y. Which of the following statement about X theory is not correct?
A. The average person dislikes work and will avoid having to do any if at all possible.
B. Individuals must force to work toward the organization objective, with the threat of punishment for not working properly.
C. The average person prefers to be directed and wants to avoid responsibility, wants security more than anything else.
D. Putting effort in work is as natural as play or rest.

65. Vroom’s expectancy theory. The strength of his preference for a certain outcome, Vroom called this …………………….
A. Force
B. Valence
C. Expectancy
D. Reward.


                                                                                                                        112
66. Vroom’s expectancy theory. Expectancy is also known as subjective probability.
A. True.
B. False.

67. Vroom’s expectancy theory. Expectation that the outcome will in fact result from a certain behavior. Vroom called
this ……………………..
A. Force
B. Valence
C. Expectancy
D. Reward.

68. Which of the following one is the incorrect extrinsic reward?
A. Salary
B. Bonus
C. Additional ten gallon gasoline each month.
D. Employee of the month award.

69. Which of the following one is not the advantage of reward system?
A. Encourage people to fill job vacancies and not leave.
B. Increase willingness to accept change and flexibility.
C. Motivate: that is, increase commitment and effort.
D. None of the above.

70. Pay is only one of several intrinsic and extrinsic rewards offered by work.
A. True.
B. False.

71. Following are the benefits of the performance related pay (PRP). State the one incorrect?
A. Improves commitment and capability
B. Complements other HR initiatives
C. Improves focus on the business's performance objectives
D. Encouraging short-term focus and target-hitting (rather than improvements)
E. Encourages two-way communication
F. Greater supervisory responsibility

72. Following are the potential problem related to performance related pay (PRP). State the one incorrect?
A. Subjectivity of awards for less measurable criteria (eg 'teamwork')
B. Improves focus on the business's performance objectives
C. Encouraging short-term focus and target-hitting (rather than improvements)
D. Divisive/against team working (if awards are individual)
E. Difficulties gaining union acceptance (if perceived to erode basic pay)

73. Constructive performance feedback is not important in job satisfaction and motivation.
A. True.
B. False.

74. Job rotation is a 'sequential' extension of the job
A. True.
B. False.

75. Herzberg's two-factor theory. The need for personal growth is satisfied by motivator factors.
A. True.
B. False.
                                                                                                                    113
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Answer Chapter 13.
  1   A 16 A                               31 B 46                         A        61         D
  2   D 17 C                               32 AC 47                        A        62         D
  3 AD 18 AB                               33 B 48                         D        63         A
  4   D 19 CD                              34 D 49                         A        64         D
  5 BC 20 D                                35 BC 50                        A        65         B
  6   D 21 A                               36 BD 51                        A        66         A
  7   C 22 C                               37 B 52                         C        67         C
  8   B 23 A                               38 D 53                         B        68         D
  9   D 24 B                               39 A 54                         A        69         D
 10 B 25 CD                                40 B 55                         C        70         A
 11 C 26 AC                                41 A 56                         A        71         D
 12 A 27 B                                 42 B 57                         B        72         B
 13 BD 28 C                                43 C 58                         B        73         B
 14 A 29 D                                 44 A 59                         A        74         A
 15 D 30 D                                 45 B 60                         B        75         A
Explanation
 8. Low labor turnover have no connection with high morale.
25. It refers that people will sacrifices their need for other.
27. It will case dissatisfied to worker.
31. He says that management should not pay attention on hygiene.
37. It’s suggest that most people dislike work. Management should force them to work
43. These are all example of extrinsic award that management can gave and out of control of the worker.
60. Pay is the Hygiene factor.
73. Constructive performance feedback is important in job satisfaction and motivation.




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                                                                                                          114
     Chapter 14. Personal effectiveness and communication.
1. ..................................... Is the process of allocating time to tasks in the most effective manner.
A. Scheduling
B. Programming
C. Time Management
D. Management.

2. For effective time management................. And ........................... Must be recognized and distinguished.
A. Urgency
B. Time
C. Work
D. Importance.

3. Urgent is not always the same as ...................................
A. Valuable
B. Workable
C. Important.
D. Urgency

4. Action plan should be ............................
A. Verbal
B. In mind
C. Recorded
D. Written.

5. A personal development plan is a .......................................... Action plan for an individual.
A. Target
B. Formal
C. Informal
D. Routine.

6. CPD means continuing professional development?
A. True            B. False.

7. Employees should put off all large, difficult and unpleasant tasks because they are large, difficult and unpleasant.
A. True            B. False

8. Managers should be available to everyone all the time and should attend its phone all the time?
A. True            B. False.

9. ............................. Task involves ordering tasks in order of preference or priority.
A. Selection
B. Important
C. Urgent
D. Prioritization

10. Task Urgent nor important should be ........................... Or .............................
A. Done later
B. Remain in Queue
C. Delegated
D. Binned

                                                                                                                          115
11. Allocation work to people and machines is called as .........................................
A. Task Sequencing
B. Work loading.
C. Time Scheduling
D. Activity Scheduling

12. Determining the order in which activity are performed are called ...................................
A. Prioritizing
B. Activity scheduling
C. Task sequencing
D. All of the above.

13. Keynes was a director of ABC Corporation he informed Peter that he has to Install the software tomorrow at 9.30
sharp, on other hand he informed Sam that they have to go to the printer and at 7 and make its repair done. What is
Keynes doing?
A. Time Scheduling
B. Timetabling
C. None of the above
D. Both of the above.

14. Digital information is information in a coded (binary) formed
A. True.
B. False

15. EDI stands for Electronic Database Identification
A. True
B. False

16. Manager use DSS or Decision Support system to do ..........................................
A. Time management
B. Internal Control
C. Decision Making
D. Drawing Making.

17. Which of the following is the example of OAS or Office Automation System?
A. Word processing system
B. Database Systems for desktop pcs
C. Electronic Filing System
D. System with email, and link to internet.
E. All of the above.

18. Mentoring is a short term relation and normally a senior in job relations. His job is to simply help in job area only.
A. True
B. False.

19. Following are the area which is covered by a mentor or mentoring
A. Teaching
B. Counselor
C. Role model
D. Supporter
E. Encourager
F. All of the above.


                                                                                                                             116
20. Kaven is a trainee in Ora Soft Corp. He had been put under the guidance of Senior Production Manager John Aliven.
John will show Kaven how to perform task and to provide guidance in tackling them. What is the role of John here?
A. Mentor
B. Counseling
C. Coaching
D. Manager.

21. Gloria has the responsibility to work with selected management trainees in her organization. Her objective is to help
the trainees over the medium to long-term with their personal career development. Supporting and encouraging them to
fulfill their potential is an integral part of her role. Gloria has no involvement in the technical content of the trainee
managers’ work. Which of the following roles does Gloria fulfill? (Pilot Paper Question)
A. Mentor
B. Instructor
C. Buddy
D. Counselor

22. ....................................... Is a purposeful relationship in which one person helps another to help himself.
A. Mentor
B. Instructor
C. Buddy
D. Counselor

23. Dany Corp. Was receiving no of complains from their Managers that worker s are having problems like stress,
depression, sense of frustration or lack of job satisfaction. Some workers were reported with bad behavior at work while
two workers was facing problem in their private life which effecting their work. Dr. David Keller was hired by the
company to look in this matter and to provide help and support to the worker to help themselves.
What is the role of Dr. David Keller?
A. Mentor
B. Counselor
C. Coach
D. Doctor.

24. During Counseling the information like fraud and sexual harassments should also be kept confidential.
A. True
B. False.

25. Communication is a .................. Way process involving the transmission or exchange of information and the provision
of feedback.
A. One way
B. Two way
C. Multiple
D. Direct

26. .............................. Is required for planning, Coordination and control.
A. Communication
B. Idea
C. English
D. Computer software

27. Communication in an organization flow ............................................
A. Upward
B. Downward
C. Sideways
                                                                                                                              117
D. Diagonally.
E. All of the above.

28. .................................. Communication flow up and down the scalar chain from superior to subordinate and back.
A. Horizontal
B. Lateral
C. Formal
D. Vertical

29. Horizontal communication is also known as .................................... Communication
A. Direct
B. Indirect
C. Lateral
D. Up and down.

30. Poor quality lateral communication will result in which of the following? (Pilot Paper)
A. Lack of direction
B. Lack of coordination
C. Lack of delegation
D. Lack of control

31. The purpose of the Vertical Communication are .
1. To gave instruction / direction
2. To delegate responsibilities
3. To control the activities of the Subordinates
4. To coordinate activity of groups and individual
5. To develop and maintain social relationship at work.

A. 1 2 and 5
B. 1 4 and 5
C. 1 3 and 4
D. 1 2 and 3.

32. .................................... Communication flow in the same level or same rank of people in same section or department
or different section and different department.
A. Vertical
B. Scalar Chain
C. Free
D. Lateral / Horizontal.

33. Interdepartmental communication by people of different ranks may be described as .......................................
A. Diagonal Communication
B. Vertical Communication
C. Horizontal Communication
D. Lateral Communication

34. Which of the following is the fastest and lowest job satisfaction communication pattern?
A. Chain
B. Circle
C. Wheel
D. The Y



                                                                                                                                118
35. Which of the following is the slowest and the highest job satisfaction communication pattern.
A. Chain
B. Circle
C. Wheel
D. The Y

36. Peter sends an email to Oria her subordinate for doing some work. Oria fail to do the same because the content of
the massage was unclear and she fail to understand the language used by Peter.
What type of problem did Oria face?
A. Noise
B. Distortion
C. Error
D. Coded and Encoded.

37. Jane having problem in this landline phone and she cannot understand the message of its boss or Jane having a bad
head pain and she can’t concentrate on the message because of the pain. What type of problem Jane experienced?
A. Noise
B. Bad Understanding
C. Distortion
D. Medium error.

38. Effective communication: the right person receives the right information in the right way at any time.
A. True
B. False

39. Ahmed is asked to send a copy of the approved budget from Karachi office to Islamabad office in maximum 30 hours.
Which of the following method he should use to make it an effective communication? Assuming all are safe.
A. By aero plane costing 5000 but reach in 6 hours.
B. By courier costing 150 reaching in 24 hour.
C. By local mail costing 15 but in 72 hour.
D. By hand via train costing 1000 but in 32 hour.

40. The formal pattern of communication in an organization is always supplemented by an informal one which is normally
known as.
A. Chit chats.
B. Bulletin
C. Free news.
D. Grapevine.

41. Which of the following statement is not associated with grapevine?
A. Its act very fast and quick
B. Its operates in the work place not out
C. Its active when formal communication is active
D. Its carry true and correct information
E. Reduce stress, anxiety and social problems

42. Grapevine fills the gap created by an ineffective formal communication system.
A. True
B. False.

43. Grapevine is offended called as Rumor or Gossip.
A. True
B. False.
                                                                                                                    119
44. Informal communication supplements the formal system.
A. True
B. False.

45. ........................... Is an important data-gathering technique.
A. Sound
B. Sign
C. Volume
D. Observation

46. Technical words or term used cause communication barrier of misunderstanding. Tech words are also called.
A. Jargon
B. Coded
C. Signs
D. Misc

47. Which of the following is not Barriers of Communication?
A. Distortion or Noise
B. Lack of subject knowledge / Diff of Language.
C. Overload, stress and Tension or lack of trust.
D. Effective communication / Clear understanding
E. Difference in Geographical, social, radical and Education background
F. Medium failure / Shutdown or Technical problem

48. .............................. Barriers are caused by interpersonal matters and the inability of the sender and recipient to
communicate properly.
A. Technical Barrier
B. Personal Barrier
C. System barrier
D. Medium barrier.

49. Faults in the transmission system, information overload and the geographical distance between the sender and
recipient are known as Technical barriers.
A. True
B. False.

50. Reporting by exception should operate to prevent information overload on managers.
A. True
B. False

51. Communication between superiors and subordinates will be improved when interpersonal trust does not exist.
A. True
B. False

52. What method of communication is used to increase commitment and understanding of work force?
A. Telephone
B. Team briefing
C. Notice board
D. Email

53. KT Corporation needs to spread information to reach a large membership spread over a large area. What kind of
method they will adopt to do so?
A. Conference
                                                                                                                                   120
B. Email
C. Letter
D. Report

54. Notice board is use to...........................
A. Formal and confidential communication
B. External communication / confidential written record
C. Explain complex facts and arguments.
D. Transmit information cheaply to a large number of people.

55. .................................. Method of communication is used to explain complex facts and arguments.
A. Email
B. Letter
C. Report
D. Interview.

56. Interview is used for formal and confidential communication.
A. True                 B. False.

57. Letter is used to reach large number of people in several sites and country.
A. True                  B. False.

58. Tasks both urgent and important should be ……………………………………………
A. Done as the deadline came closer.
B. Done with regular speed of work.
C. Should be done now but should be given less time.
D. Should be done with a now and gave a fair amount of time.

59. A job is said to be important on other task if it satisfied the following. State the one incorrect.
A. Its add value to the organizations output.
B. It comes from a source deserving high priority, such as a customer or senior manager.
C. Its belongs to the normal course of work, can easily be left for other time.
D. The potential consequences of failure are long term, difficult to reverse, far reaching and costly.

60. When a telephone call is answered a recorded message tells the caller to dial the desire extension or hold for the
operator. This is the example of …………………………………………
A. Mobile communication
B. Video conferencing
C. Voice messaging system
D. Computer bulletin board.

61. ……………………… needs to be an expert in the trainee’s professional field.
A. Mentor
B. Counselor
C. Coach
D. Doctor.

62. ………………………….. Are often drawn from other areas of the organization, covering a wide range of function and are
usually in a senior position.
A. Mentor
B. Counselor
C. Coach
D. Doctor.
                                                                                                                         121
63. In business organization, ……………………………… is particularly valuable in grooming individuals for senior management
positions.
A. Mentoring
B. Coaching
C. Counseling
D. None of the above.

64. The aim of ………………………………… is to address and resolve specific problems, usually of a personal nature, where
other methods of dealing with the problem have failed or nonexistent.
A. Mentoring
B. Coaching
C. Counseling
D. None of the above.

65. Problem that an employee experience outside work or its personal life which effects on work performance cannot be
resolve by counseling.
A. True
B. False.

66. ……………………… help people to help themselves. It is also non directive.
A. Mentoring
B. Coaching
C. Counseling
D. None of the above.

67. A yawn, applause, clenched fists, fidgeting; smile, a smart dress and firm handshake are the example of …
A. Listening
B. Interpersonal skills
C. The grapevine
D. Non verbal communication or body language.

68. When a person is given too much information to digest in the time available. This is known as ……………………
A. Distortion
B. Overload
C. Differences
D. Misunderstanding.

69. Interpersonal difficulties can hamper communication.
a. True
b. False.

70. The method of communication which reaches large number of people in several sites and countries with accuracy is
A. Telephone
B. Letter
C. Email
D. Report

71. In the type of communication where everyone can communicate with each other in a democratic work group or team
project is called?
A. Wheel communication
B. All Channel communication
C. Chain communication.
D. Circle communication.
                                                                                                                  122
72. The ……………………………….. Communication is the quickest and most efficient but it is not suitable for the formal
communication structure.
A. Wheel communication
B. All Channel communication
C. Chain communication.
D. Circle communication.

73. A chain communication structure is likely to be slow and inefficient. The ability of the head to send the message to
the tail depends on the efficiency and competence of the middle chain.
A. True.
B. False.

74. ……………………… is the communication system in which all messages go directly to or from the person in the centre. If
any one need to send a message to other it must go to the centre person in order to go further.
A. Wheel communication.
B. All channel communication.
C. Chain communication.
D. Circle communication.

75. Which of the following are the centralized patterns of communication? Select the one incorrect.
A. Wheel.
B. Chain
C. Circle and all purpose.
D. Y Channel.

76. A personal development plan is a clear developmental action plan for an individual which incorporates a wide set of
developmental opportunities, including formal training.
A. True.
B. False.

77. A job will be important compared to other tasks, if it satisfies at least one of three conditions. State the one
incorrect?
A. It adds value to the organization’s output.
B. It comes from a source deserving high priority, such as a customer or senior manager.
C. If its return some sort of monetary reward to the employee.
D. The potential consequences of failure are long-term, difficult to reverse, far reaching and costly.

78. Company KKY has install new technology processing plant in their factory due to which now they can easily operate
their factor from 120 employees to 75 employees. They have decided to reduce their work force to 75. What is the
correct word for this act?
A. Delayering
B. Hiring and firing
C. Downsizing.
D. Upgrading.

79. One of the advantages of Digital network over analogue network is that they support better data transmission and
higher transmission speed with less chances of data corruption.
A. True.
B. False.




                                                                                                                       123
80. ……………………………………..consists of a central mailbox or area on a computer server where people can deposit
messages for everyone to see, and, in turn, read what other people have left in the system.
A. Mobile communication.
B. A computer bulletin board.
C. Electronic data interchange.
D. Video conferencing.

81. …………………………………………is the use of computer and communications technology to conduct meetings.
A. Mobile communication.
B. A computer bulletin board.
C. Electronic data interchange.
D. Video conferencing.

82. ……………………………………………………answer and route telephone calls. Typically, when a call is answered a recorded
message tells the caller to dial the extension required, or to hold if they want to speak to the operator.
A. Mobile communication.
B. Voice messaging systems
C. Electronic data interchange.
D. Video conferencing.

83. The grapevine usually operates at the place of work and outside it.
A. True.
B. False.

84. The working of the grapevine is selective: information is not divulged randomly.
A. True.
B. False.

85. …………………………………………….. Reach large number of people in several cites/countries in quick time.
A. Letter
B. Fax
C. Telegram
D. Email.




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Answer Chapter 14. Personal effectiveness and communication.

   1            C         16           C          31           D          46   A   61   C      76         A
   2          AD          17           E          32           D          47   D   62   A      77         C
   3           C          18           B          33           A          48   B   63   A      78         C
   4           D          19           F          34           C          49   A   64   C      79         A
   5           B          20           C          35           B          50   A   65   B      80         B
   6           A          21           A          36           B          51   B   66   C      81         D
   7           B          22           D          37           A          52   B   67   D      82         B
   8           B          23           B          38           B          53   A   68   B      83         B
   9           D          24           B          39           B          54   D   69   A      84         A
  10          CD          25           B          40           D          55   C   70   C      85         D
  11           B          26           A          41           D          56   A   71   B
  12           D          27           E          42           B          57   B   72   B
  13           D          28           D          43           A          58   D   73   A
  14           A          29           C          44           A          59   C   74   A
  15           B          30           B          45           D          60   C   75   C
Explanation.
83. The grapevine usually operates at the place of work and not outside it.




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                                                                                                              125
Chapter 15. Recruitment and selection.
1. The process of recruitment should be a part of the organization ‘s ………………………………… plan.
A. Investment
B. Human Resource
C. Future
D. Internal Control

2. People are major Organizational ………………………………… and must be managed as such.
A. Asset
B. Planning
C. Resource
D. Value.

3. Effective recruitment practices ensure that a firm has enough people…………………………………….
A. To serve the Directors.
B. Security needs.
C. Others Work.
D. With the right skills.

4. The overall aim of the recruitment and selection process in an organization is to obtain the …………………….employees
required to fulfill the objectives of the organization.
A. Quantity and quality
B. Strong and powerful
C. Beautiful and handsome
D. Militant

5. The process of recruitment is divided into three parts. Which of the following is not correct?
A. Defining requirements
B. Thinking about employees.
C. Attracting applicants
D. Selecting

6. Recruitment (and training) issues are ………………… to the business …………………………...
A. Major
B. Central
C. Strategy
D. Future.

7. The recruitment process involves ………………. And ……….……., sometimes with the help of recruitment consultants.
A. Personal specialists
B. Directors
C. CEO
D. Line Managers

8. ………………………………… are responsible for Human resources (HR) planning.
A. Worker
B. Outsource Labor
C. Line manager
D. Directors / senior managers



                                                                                                                126
9. Which of the following are the responsibilities of line manager?
A. Notifying Vacancies or issuing a job requisition
B. Advising on skill requirements and attributes required
C. Selection interviewing with HR
D. Having final say on the selection decision
E. All of the above.

10. ………………………………………… The statement of the component task, duties, objective and standards involved or
required for the job.
A. Person Specification
B. General Specification
C. Job Specification
D. Average Specification

11. The job description in term of the kind of person needed / Suitable to perform the job is called ……………….
A. General Specification
B. Person Specification
C. Job Specification
D. Average Specification

12. Notifying applicants of the results of the selection process is the ……………………stage of the combined recruitment and
selection process.
A. Final
B. First
C. Middle
D. Second Last

13. Emile gave an advertise in the news paper that their company need a person who is capable of doing work on heavy
electrical voltage lines on the grid station. He should also know how to operate heavy Welding machine. He will be paid
35,000 and need to work 8 hour daily. What kind of specification is this?
A. Job Specification
B. Person Specification

14. Woolf Schooling system gave an advertise on the newspaper for a lady teacher. Teacher should be soft and polite in
speaking and should be a mother so she can handle kinder garden aged children’s. Teacher should be at least 40 years of
age and have a teaching qualification. What kind of specification is this?
A. Job Specification
B. Person Specification

15. Which of the following is not the person specification features?
A. Qualifications,
B. Work experience
C. Age / Physical Characteristics
D. Specific Ability like Reading / Speaking power
E. Duties / objectives / standards.

16. ……………………….. Determine the requirements for the job.
A. Job Card
B. Job Enlargement.
C. Job analysis
D. Job Enrichment



                                                                                                                    127
17. ……………………………………. Is the ability to do something?
A. Workaholic
B. Physical Attitude
C. General Knowledge
D. Competence

18. Intellectual Competence area includes. Which of the following is incorrect?
A. Strategic Perspective
B. Flexibility / Coping with change
C. Planning and organization
D. Analytical judgment

19. Which of the following 2 are the methods of re-designing a job?
A. Job Specification
B. Job enrichment
C. Job enlargement
D. Job description

20. Which of the following is not the content of the job description?
A. The job title.
B. The name and the department in which job is located.
C. Part time or Full time job details
D. The purpose and objective of the job
E. Financial information about the Company.
F. The responsibilities associated with the job.

21. Multi-skilling means Flexibility is not expected.
A. True
B. False.

22. A role definition is wider than a job description?
A. True
B. False.

23. The seven point plan was given by.
A. Alec Rodgers
B. Mintzberg’s
C. Bilbin
D. Vroom’s

24. CIPD stands for Chartered institute of personal development.
A. True.
B. False.

25. As per the CIPD code of Rules Before applying for references, potential employers
A. Must ask the Local Govt. for permission.
B. No need to ask any one
C. No need to ask the applicant.
D. Must secure permission of the applicant

26. Deny Limited needs a Quality Control Manager in their production department. They already have 4 Assistant
managers who were working in the company for the last 2 year. Company in order to achieve a head start performance in
the new position what it should do?
                                                                                                                 128
A. Should recruit someone from outside the company.
B. Should take the outsource option
C. Should give promotion to one of its Assistance manager as QC Manager within the company.
D. Should wait till some it find best for this job.

27. Internal promotions help an Organization to develop Staff Development, develop people careers and build morale.
A. True
B. False.

28. Job Advertising is aimed to fulfill legal requirement and not to attract quality applicants for the job.
A. True.
B. False.

29. Which of the following is not the Quality of a good job advertisement?
A. Concise
B. Attractive
C. Positive and honest
D. Disclosure of Confidential information.
E. Relevant and appropriate to the job and the applicant.

30. Kenco Company is looking to hire an interpreter for their international clients. Company wishes that the post should
be filled with in the company labor pool. What advertising media company should use to fulfill this task?
A. They should publish advertising in the local news paper
B. They should contact the job centers for this.
C. They should publish advertisement in the in-house magazine or Notice board.
D. Use National electronic media for this task.

31. M.I.K Electric Company have a vacancy of senior manager production in their cable department, for this job they
need a person who have at least 5 year experience in the same post. The management was informed that it is difficult to
get the required skilled person from the local area. What advertising media company should use from the following to fill
this job?
A. Publish it in the National News papers
B. Publish it in the Local News papers
C. Notice board / in-house magazine.
D. Publish in weekly General Magazine

32. What method of selection is used by most companies for hiring an employee?
A. References
B. Work Sampling
C. Interviews
D. Cognitive tests

33. What type of Questions is in which candidate has to reply in Yes or No.
A. Open Questions
B. Probing Question
C. Leading Question
D. Closed Questions

34. Selection test can only be used before Interviews.
A. True
B. False



                                                                                                                     129
35. Which of the following is not a type of Selection test?
A. Proficiency, attainment or competence test
B. Intelligence test
C. Aptitude test
D. Tolerance test.
E. Personality test

36. Mark international need a typist for their office. The required candidate should be perfect in typing and shorthand
and should had a typing speed of 50 WPM. For this purpose company ask Mr. James to take selected candidate typing
skill test. What type of selection test he should conduct to find the best one.
A. Intelligence Test
B. Aptitude test
C. Proficiency, attainment or competence test.
D. General knowledge test.

37. …………………………….. Type of test is taken in which worker is required to demonstrate work output.
A. Work Sampling
B. Time Test
C. Confidence test
D. Aptitude test.

38. JS investment need an employee in their office who is very sharp in solving logical conditions, who have the ability to
think and answer quickly and should also have a very good memory. In order to judge such candidate what type of test
they should take to find their required person.
A. Competence test
B. Personality test
C. Intelligence test
D. Work Sampling

39. Attainment test (proficiency test) is also known as …………………………………..
A. Personality test
B. Competence test
C. Aptitude test
D. Intelligence test.

40. …………………………….. Aims to describe aspects of a person's character that remain stable throughout that person's
lifetime, the individual's character pattern of behavior, thoughts, and feelings. Normally asked in MCQs about the
candidates likes and dislikes, what they will do in a particular situation their preference and attitude and so on
A. Competence test
B. Intelligence test
C. General Knowledge Test
D. Personality test.

41. There is always a direct relationship between ability in the test and ability in the job?
A. True
B. False.

42. Arif Habib Limited publishes a job advertisement for the post of senior manager production. The required candidate
should be cool and capable of handling work pressures. Only the CEO of the company Mr. Watson was taking interview of
applicant Mr. James Clark who he thinks is best for the job. Suddenly James feels that Mr. Watson has start asking
question in aggressive manners and criticizing on the reply of Mr. Clarks. What kind of Interview is this?
A. Panel Interview
B. Board Interview
                                                                                                                        130
C. Stress / Face to Face interview
D. Face to Face interview.

43. What is the type of interview in which large no of individual or groups are interested to take the interview of the
candidate?
A. Board Interview
B. Panel Interview
C. Stress Interview
D. Face to Face / Individual interview

44. …………………………………… is also known and called as assessment centers.
A. Board Interviews
B. Cognitive tests
C. Asses method
D. Group assessments

45. Group assessment tends to be used for posts requiring leadership, communication or team working skills in a
candidate.
A. True
B. False.

46. Lucky Cements Manager HR was taking an interview of their new possible senior manager stores. After the interview
the HR manager ask the candidate to provide reference about his previous job(s), period of employment, pay, and
circumstances of leaving. What kind of Reference the HR is asking from the candidate?
A. Personal information
B. Experience Information
C. Factual Information
D. General Information.

47. At least …………………………… employer references are desirable, providing necessary factual information, and
comparison of personal views.
A. 1
B. 2
C. 4.
D. 5

48. The …………………….. Defines what resources the organization needs to meet its objectives and what source of labor
(internal and external) are available.
A. Human resource planning
B. Outsource decision
C. Job specification
D. Person specification.

49. The role of Human resource function in recruitment and selection will be the following. State the one incorrect?
A. Assessing needs for human resources (HR planning)
B. Maintaining records of people employed
C. Keeping in touch with trends in the labor market
D. Ensuring the organization complies with equal opportunities and other legislation
E. Provide help and assistance in production and planning.
F. Preliminary interviews and selection testing




                                                                                                                          131
50. Which of the following is not the type of an interview?
A. Individual (one to one).
B. Interview panels.
C. Standard interview.
D. Selection board.

51. Which of the following method of selection of a candidate returns the best predict about the candidate abilities?
A. Work sampling
B. Personality test
C. Interview
D. References.

52. Detail personal information like religion, medical history, place of birth, family background, etc should be called no
matter it is important on not for selection process.
A. True
B. False

53. When an organization needs unskilled labor ……………………….is the best source to hire them.
A. Local newspaper
B. National newspaper
C. Job centers
D. In-house magazines and publication.

54. Managerial jobs may merit local advertisement while semi skilled jobs may only required national advertisement for
job adds.
A. True
B. False.

55. Unsuccessful applicants should be informed by ……………………………………………….
A. There is no need to inform them.
B. Company should call them and gave them briefing for their failure.
C. Their names and address should be published in national newspaper.
D. Standard letter with a simple reason that they are not considered.

56. When an interviewer encourage the candidate to gave a brief answer so he can keep the interview in flow and have
the chance to judge, he asks …………………………………… question.
A. Open
B. Closed
C. Leading
D. Problem solving.

57. When an interviewer put a case in front of a candidate, and asks him what he will do if he has to deal with this. It is a
…………………question.
A. Open
B. Closed
C. Leading
D. Problem solving

58. One-to-one and face-to-face interviews are two different stages of an interview process. Or are different techniques
of interview.
A. True
B. False.


                                                                                                                          132
59. ……………………………….. Consist of series of tests, interviews and group situations over a period of two days involving
small no of candidates.
A. Intelligence test
B. Competence or attainment test
C. Assessment center.
D. Adaptability competence.

60. Assessment center are also known as group assessment.
A. True.
B. False.

61.Job design involves looking at the current jobs in an organization or department, and considering whether they can be
altered or designed in a way that give more fulfillment and greater experience to the job holder.
A. True
B. False.




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Answer Chapter 15.
 1            B           11           B           21             B   31   A   41        B      51         A
 2            C           12           A           22             A   32   C   42        C      52         B
 3           D            13           A           23             A   33   D   43        A      53         C
 4            A           14           B           24             A   34   B   44        D      54         B
 5            B           15           E           25             D   35   D   45        A      55         D
 6           BC           16           C           26             C   36   C   46        C      56         A
 7           AD           17          D            27             A   37   A   47        B      57         D
 8           D            18           B           28             B   38   C   48        A      58         B
 9            E           19          BC           29             D   39   B   49        E      59         C
 10           C           20           E           30             C   40   D   50        C      60         A
                                                                                                61         A
Explanation.
35. Selection test can be taken before for after the interview.




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                                                                                                               134
    Chapter 16. Diversity and equal opportunities.
1. ………………… refers to the general principle that every individual should have the same opportunity to make the best
of their abilities at work.
A. Working Rights
B. Equal opportunities.
C. Different opportunities
D. Management Control.

2. Earnings surveys report that across all occupations, women are still earning …………………… % of male earnings in the
same occupational group.
A. 20 – 40
B. Less than 50
C. 60 – 70
D. Only 50

3. The TUC reports that the level of unemployment for …………………… communities in the UK is significantly higher than
for the white population.
A. Black and Asians
B. American and Germans
C. Only Blacks
D. Only Asians

4. The principle of equal opportunities gave as the right to discriminate on the basis of sex and religion belief.
A. True
B. False.

5. The principle of equal opportunities explains that employers should discriminate between workers and applicants for
the jobs only on the basis of. Give the answer which is incorrect.
A. Ability
B. Experience
C. Potential
D. Sexual orientation

6. Shamir Industries and chemicals HR manager was considering applications for the post of office assistance. HR
manager offer a female candidate a pay of 3500 per month while for the same job he offer male candidate 4250. The act
of the HR manager is …………………………..
A. Justified and as per Law
B. Positive discrimination which is allowed?
C. Discrimination on the ground of Sex and unlawful
D. Discrimination is not applicable on pay and sex

7. KT Corporation promotion committee recommend Mr. Peter promotion as Senior manager IT against Mrs. Iris Divito
who appear, proved and more qualified and competent to be a better manager then Peter. Do you think the act of the
committee is correct? And what type of discrimination is this?
 A. Yes
B. No.
C. Direct
D. Indirect.



8. Susan was dismissed from her job when it was come in the knowledge of the MD that she got married last week. What
type of Discrimination is this?
                                                                                                                     135
A. Direct
B. Indirect
C. Victimization
D. Harassment

9. Dany Corporation gave an ad in the newspaper that they want a candidate for the job of manager production who is
6.4 feet tall and on continues job for the last 5 years. What type of Discrimination is this?
A. Direct
B. Indirect
C. Victimization
D. Harassment

10. The management of Schon Garments has issue a circular that all their production supervisors (both men and woman)
will do compulsory late sitting on job. Is this an Indirect Discrimination against women who have responsibilities of family
and children and can’t give extra time to job?
A. True
B. False.

11. Amenda a technical supervisor at Wrestler Auto Car’s inform its Director Production that the senior manager Joseph
has used low quality material in the back lights of its new model car “ Esteem VXR “. After a week company arrange a 3
days’ work shop for its technical supervisor’s staff to get update for the latest technique and knowledge. Joseph allowing
all but Amenda to attend the workshop and gave a reason that he thinks she is not fit for this workshop. What kind or
type of Discrimination is this?
A. Direct
B. Indirect
C. Victimization
D. Harassment

12. …………………………. Is the use of threatening, intimidator, offensive or abusive language or behavior.
A. Direct
B. Indirect
C. Victimization
D. Harassment

13. ………………………………………. Is also known as Affirmative action?
A. Harassment
B. Positive Discrimination.
C. Victimization
D. Sexual orientation.

14. The employer may also be forced to make reasonable adjustments to working arrangements or to the physical
features of premises where these constitute a disadvantage to disabled people.
A. True
B. False.

15. 1. Rockwell Corporation gave an ad in the English newspaper for the job of support worker in English / Chinese
language. The objective of the company is to encourage minority Asians to apply for this post. 2. The same company
arranges special awareness implementing training for women in management skills. The both steps by the company are
known as ………………………………………………
A. Minority / Gender Help program
B. Minority / Gender action
C. Non Discrimination internal Control
D. Positive action
                                                                                                                        136
16. ………………………………… is the process of taking active steps to encourage people from disadvantaged groups to apply
for jobs and training, and to compete for vacancies.
A. Positive Discrimination
B. Indirect Support
C. Positive action.
D. Equal Rights.

17. …………………………… is where one group is treated less favorably than another.
A. Harassment
B. Positive Discrimination.
C. Victimization
D. Overt discrimination.

18. Positive action and positive discrimination are same things.
a. True
b. False.

19. Kamran need to employee a typist for its office, of that purpose he place an advertisement in a men’s health club
notice board. This is an example of ……………………………………..
A. Direct discrimination.
B. Indirect discrimination.
C. Victimization
D. Harassment.

20. John is a very kind manager and he try to keep its organization an equal opportunity employer. But on other hand it
was also notice that he use to make inappropriate jokes and fun to the ladies workers. Do you think this act is come
under discrimination on ground of sex / gender?
A. Yes
B. No.

21. Hank Company gave an ad in a local newspaper for the post of sales staff. In the advertisement the company states
that it will prefer to newly qualified or fresh graduates with the max age limit of 25. Do you think its an example of direct
discrimination.
A. True.
B. False.

22. Employer can ask a woman about its plan to have a family or chance of having a baby during a job interview because
it can cause problem for its work.
A. True.
B. False.

23. Employers can only discriminate between employees and applicants for job only on the basis of the following. State
the incorrect one.
A. Ability.
B. Experience.
C. Age.
D. Potential.

24. Example of discrimination on the ground of sex includes. State the one incorrect.
A. Consistently selecting a man to fill a job vacancy in preference of woman.
B. Giving promotion to a man rather than a woman who is better qualified and experience.
C. Paying men more salary then woman for the same job.
D. Providing special training and course to woman to overcome sexual harassment.
                                                                                                                         137
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Answers Chapter 16. Diversity and equal opportunities
       1                B                  9                  B                17                  D
       2                C                 10                  A                18                  B
       3                A                 11                  C                19                  B
       4                B                 12                  D                20                  A
       5               D                  13                  B                21                  A
       6                C                 14                  A                22                  B
       7               BC                 15                  D                23                  C
       8                A                 16                  C                24                  D

Explanation.
4. The principle of equal opp. State there should be no discrimination on the basis of sex and religion beliefs.
6. Difference of pay for the same post and same job due to gender is a direct discrimination on Sex ground.
7. Because this is an act of Direct Discrimination. She was not considering because of gender or Sex issue.
8. Sex and Marital is one of the conditions of Direct Discrimination.
9. This is an example of Indirect Discrimination. See Emile Woolf page 342.
10. True because woman can't work late because they have family and children responsibilities to met.




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                                                                                                                   138
    Chapter 17. Training and development.
1. The term ………………………………….. Is also known as experience curve.
A. Learning curve
B. Expert Curve
C. Teaching Curve
D. None of the above.

2. The term learning curve or experience curve is used to describe the ………………………………… process.
A. Teaching
B. Understanding
C. Learning
D. All of the above.

3. The learning process comes to an end when the individual ………………………………………………………
A. Stop learning from the teacher.
B. Is fully familiar with the work.
C. Taking interest in other work
D. Get bored with the job.

4. Learning Theory States that Individual should be …………………………….. To learn.
A. Forced
B. Asked
C. Punished
D. Motivated.

5. Different people have …………………………… learning styles or preferences.
A. Opposite.
B. Different.
C. Similar.
D. Their own.

6. Peter Honey and Alan Mumford have drawn up a popular classification of …………………. Learning styles.
A. 4
B. 2
C. 6
D. 5.

7. Which of the following is not the learning style of Peter Honey and Alan Mumford?
A. Theorists
B. Reflectors
C. Followers
D. Activists
E. Pragmatists.

8. …………………………….. Individual learn by doing and acting. They like to have their hand dirty, are excited by
participation and pressure such as new project, tend to rush something without due preparation.
A. Theorists
B. Reflectors
C. Pragmatists
D. Activists.

                                                                                                            139
9. ………………………………. Individual likes to see how theory is put into practice in the real world. They find abstract
theories and concepts of no use unless they can see their relevance to practical action. They also discard new idea which
only required some development.
A. Theorists
B. Reflectors
C. Pragmatists
D. Activists

10. ………………………………. Individuals like to understand the theory that supports the practice. They learn with facts,
concepts and models.
A. Theorists
B. Reflectors
C. Pragmatists
D. Activists

11. ……………………………………. Individuals learn by observing and thinking about what he has seen. They prefer to avoid
jumping in to a task, and prefer to watch from sideline. Need to work at their own pace. Find learning difficult if forced
into a hurried program.
A. Theorists
B. Reflectors
C. Pragmatists
D. Activists

12. The Kolb Learning Cycle can be summarized into following parts. A. Experiencing B. Reflecting. C. Developing
Concepts. D. Acting.
A. True
B. False.

13. The ……………………………….. Is an organization that facilitates the learning of all its members, acquisition and sharing of
knowledge , in order continuously and strategically to transform itself in response to a rapid changing and uncertain
environment.
A. Practical Organization
B. Experience Organization
C. Learning organization
D. Theorists Organization.

14. ……………………………………………….. Is one method by which an organization may seek to improve the performance of its
staff?
A. Punishment
B. Training and development
C. Over age Employment
D. Entertainment and Fun.

15. The learning by doing approach based on Kolb’s learning cycle begins with act. Put the following stages of the cycle
into the correct order.
1. Suggest principles 2. Apply principles 3. Analyze action. 4. Act
A. 1 2 3 4
B. 2 1 4 3
C. 3 2 1 4
D. 4 3 1 2




                                                                                                                         140
16. ……………………. Is 'the growth or realization of a person's ability and potential through the provision of learning and
educational experiences'.
A. Training
B. Development
C. Education
D. Learning

17. ……………………………….. Is defined as that knowledge acquired gradually, by learning and instruction.
A. Skills
B. Development
C. Experience
D. Education.

18. Education and training have no similarity between each other. Education cannot be an element in training.
A. True
B. False.

19. There are similarities between training and development, and training can be an element in the development of an
individual.
A. True
B. False

20. ………………………….. Improve basic knowledge, skills and attitudes while ……………………………. Is related to a work
environment and improving performance at work.
A. Education
B. Development
C. Attitude
D. Training.

21. Effective Training can by itself improve performance problems arising out of:
 Bad management, Poor job design, Poor equipment, workplace layout or work organization, Lack of aptitude or
intelligence, Poor motivation (training gives a person the ability, but not necessarily willingness)
A. True
B. False.

22. One of the drawback of Self assessment for training is that employee’s may be reluctant to admit to performance
deficiencies.
A. True
B. False.

23. ……………………. May be defined as the gap between what people should be achieving and what they actually are
achieving.
A. Training
B. Self Assessment
C. Training needs
D. Training Period.

24. Training needs are also known as Learning Gaps.
A. True
B. False.




                                                                                                                      141
25. Skill Audit is also known as ……………………………….. Audit.
A. Internal Audit
B. Human Resources Audit.
C. Internal Testing
D. Personal Audit.

26. To determine the comprehensive current level of competence, skill, knowledge in the workforce. Companies conduct
a ………………….. Audit.
A. Internal Audit
B. External Audit
C. Internal Testing
D. Skill Audit or Human Resources Audit.

27. ……………………………………... Is a course in which employee work in the company take one day a week their class in a
local collage or training center for theoretical learning?
A. Day Release
B. Block Revision
C. Computer base Training
D. E-learning.

28. ……………………… course allow six month of collage and six month of work, in rotation, for two or three year.
A. Distance learning
B. Sandwich courses
C. Block release
D. E-learning

29. E-learning is not a computer base learning program.
A. True
B. False

30. Computer base training (CBT) is also called as Computer- assisted learning (CAL).
A. True               B. False.

31. …………………………………. Maximizes transfer of learning by incorporating it into ‘real’ work.
A. Off the job Training
B. Routine Training
C. Special Training
D. On the job training

32. …………………………………..an individual is promoted into his/her superior's position whilst the superior is absent. This
gives the individual a chance to experience the demands of a more senior position.
A. Full time promotion
B. Job Enlargement
C. Temporary promotion
D. Job Enrichment

33. OGDC Chief Manager production appoint for a time being Mr. Jawed as Assistance to Senior Manager production Mr.
Kamil in order gain experience for it’s the new position and to learn new or more demanding role. What is the Method of
Training is that?
A. Temporary Promotion.
B. Assistant to positions or Work Shadowing
C. Project Work
D. Job rotation.
                                                                                                                   142
34. Induction is the process where a person is formally introduced and integrated into an organization or system.
A. True
B. False.

35. Which type of training minimizes risk but does not always support transfer of learning to the job?
A. On-the-job training
B. Off-the-job training
C. Normal Training
D. Risk Training

36. Induction is not an ongoing process.
A. True
B. False.

37. Responsibility of the training and development lies not on the employer but on the individual it’s self. Mean that
people should seek to develop their own interest.
A. True
B. False.

38. ………………………………. Department is centrally concerned with developing individual.
A. Production
B. Administration
C. Stores
D. Human Resources

39. ……………………………….. Work’s with Human Resource Department for training and development of the employees.
A. Production Managers
B. Directors
C. Line Managers
D. Auditors.

40. Helix Pharmacy Transfer its accountant to work with its sales team for the period of 4 months in order to spend some
time away from the normal working environment in the other department as part of the project. This is an example of
A. Secondment
B. Temporary promotion.
C. Transfer.
D. Expel.

41. ………………………………….. Means observing the result of the course and measuring weather the training objectives have
been achieved.
A. Evaluation of Training
B. Objectivity of course
C. Validation of Training
D. Training Overview.

42. Evaluation of training means …………………………………..
A. Identifying the training needs of the department or section
B. Comparing the costs of the scheme against the assessed benefits.
C. Organizing training program where required
D. Calculating overall cost and overheads on teachers and others




                                                                                                                         143
43. When an organization attempts to improve managerial effectiveness through a planned and deliberate learning
process. For example offering its junior managers a MBA Degree program, or plan to increase their managerial
responsibility is a part of ……………………………….
A. Career Development
B. Senior Development
C. System Development
D. Management Development.

44. Which of the following is a stage in Kolb’s learning cycle?
A. Positive experience
B. Concrete experience
C. Active experience
D. Cement experience

45. …………………………. Is a process of learning through experience and doing work?
A. Development
B. Training
C. Education
D. None of the above.

46. Secondment is also known as temporary promotion. Or they both mean the same.
A. True
B. False.

47. Job rotation and secondment also mean the same.
A. True.
B. False.

48. Job enrichment, also called as horizontal job enlargement.
A. True.
B. False.

49. Vertical job enlargement is also called job enlargement.
A. True.
B. False.




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       Answer Chapter 17. Training and development.
   1           A        11          B         21          B         31          D         41          C
   2           C        12          A         22          A         32          C         42          B
   3           B        13          C         23          C         33          B         43          D
   4           D        14          B         24          A         34          A         44          B
   5           B        15         D          25          B         35          B         45          A
   6           A        16          B         26          D         36          B         46          B
   7           C        17         D          27          A         37          A         47          B
   8           D        18          B         28          B         38          D         48          B
   9           C        19          A         29          B         39          C         49          A
  10           A        20         AD         30          A         40          A
Explanation.
46. Secondment means to send someone to other department other than its original work area for a change. While T.P
mean Job enrichment.
47. Job rotation means to transfer one person after some time to other area of the same department. While secondment
mean to other dept.
48. Its means vertical job enlargement.




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                                                                                                                145
                 Chapter 18. Performance Appraisal.
1. …………………………………………… means of getting better results by managing performance within an agreed framework
of goals, standards and competence requirements
A. Performance Evaluation
B. Standardization
C. Effective Framework
D. Performance management.

2. Performance Management is an ongoing activity in an organization.
A. True
B. False.

3. Performance Management is evenly effective if individuals, unit and organization have different goals or unshared
understanding or if all are not integrated on same points.
A. True
B. False.

4. The aim of the performance management is that…..
A. People should work hard for their personal goals
B. People should be well utilized on per hour working basis
C. People should realize their potential and max their contribution to the Org.
D. People should provide alternate career opportunities.

5. For effective motivation and learning it is essential that people should …………………………………………………..
A. Know what exactly their objectives are
B. What is the principle of effective work program?
C. How to balance work and personal life.
D. None of the above.

6. Which of the following is not a component of appraisal?
A. Reward Review
B. Performance review
C. Profitability review.
D. Potential review.

7. A process in which the management discuss the performance of an employee and decide about their bonuses or pay
increase is ………………….
A. Performance Report
B. Reward Review
C. Pay and Bonus Review
D. Productivity Review.

8. The management of the Star Electric Cable Company was looking into the performance of its area sales manager Mr.
Bean. In the last appraisal it was set that the cable sale for this region by Mr. Bean will be 2300 cables per month. At the
end of the year management find that the target was successfully achieved and Mr. Bean has over reached its accepted
target. Management also set a new target for the next year of 2500 cables per month. What type of appraisal system
check is this?
A. Target and Performance
B. Reward Review
C. Potential Review
D. Performance Review.

                                                                                                                         146
9. A process in which management see what type of level or work an individual is capable of or its need any training or
development in its area or what kind of benefits company can take from him in future is a …………………………………….
Review.
A. Potential Review.
B. Reward Review
C. Pay and Bonus Review
D. Productivity Review.

10. A formal appraisal system offers the employee an opportunity to discuss his future prospects, ambitions, and a basis
for considering pay and reward in return of its work and efforts.
A. True
B. False.

11. Which one of the following is NOT a purpose of appraisal?
A. To identify performance levels
B. To assess development needs
C. To encourage communication between manager and employee
D. To highlight employees’ weaknesses

12. Which of the following is NOT the Objective of appraisal system?
A. Establishing the key or main results for individual over a period of time.
B. Improving Communication between different levels of management.
C. Identifying potential candidate for promotion.
D. What an individual has to do in a job. / Target Setting
E. Production / Marketing planning.

13. Following are some appraisal techniques. State the one which is not correct.
A. Employee assessment.
B. Guided Assessment
C. Grading Assessment
D. Behavioral Method
E. Result Oriented Scheme.

14. A method of appraisal in which an employee is assess on the basis of specific targets and standards of performance
agreed in advance by manager and the subordinated together. Car sales target was set 12 per month is it achieve by the
subordinate or not and on what time. Is an example of …………………………………………………
A. Grading
B. Overall assessment
C. Result Oriented Scheme
D. Guided Assessment.

15. A technique in which the managers use its judgments about the appraisal. There is no consistency of the criteria and
area of assessment. In this method the managers are not convey clear in effective judgments in writing. Is an example of
…………………………………………………………….
A. Grading
B. Behavioral method
C. Result Oriented
D. Overall assessment.

16. Mr. Kamal Sales executive of Shah Sons Limited was evaluating his own performance for the target he sets for
himself. He determines that this effort in the sales and marketing was not good, which was the reason he found himself
behind the sales target from rest of the employee in the company. If we call it an appraisal what kind of appraisal system
is this?
                                                                                                                      147
A. Sales and target system
B. Reconciliation of Goals
C. Self appraisal
D. None of the above.

17. Which of the following is not the advantage of Self appraisal?
A. Save the manager’s time
B. Increase Responsibility
C. Reconciles the goals
D. Reduce Corporate Cost

18. People are often are the best judges of their own performance and always perform a fair and clear appraisal?
A. True
B. False.

19. Which of the following is not the approach of the appraisal interviews? Choose the incorrect one.
A. Tell and sell style
B. Tell and listen style
C. Problem solving style
D. 360 degrees approach.
E. Q&A style

20. The appraisal manager try to dominate the employee and it is a one way communication system. What appraisal style
is this?
A. Tell and sell.
B. Tell and listen style.
C. Problem solving style.
D. 360 degrees approach.

21. Deny Corporation appraisal manager tell its Quality control manager that he has to bring improvement in this work
and in his department performance in next 3 months, appraiser also criticizes on their current behavior. He was also
given new targets to meet in the allotted time. Appraiser dominates the QC manager and forced him to accept the
decision. What kind of appraisal style is this?
A. Tell and listen style
B. 360 degree style
C. Tell and sell style
D. Problem solving style.

22. The appraisal style in which the appraiser gave its subordinate the chance to respond to its problem and also take
interest in his suggestion, try to find out its expectations and aims and does not try to dominate the interview. This is a
……………………………………….. Appraisal style?
A. Tell and sell.
B. Tell and listen style.
C. Problem solving style.
D. 360 degrees approach.

23. Which of the following are the incorrect reasons for problem in appraisal practice?
A. Employee thinks that this is just an informal chat with the management.
B. Employee thinks that it’s gave the managers the chance to criticize on the employees.
C. It’s only a one side communication where managers dominate their terms and instruct orders.
D. Some beliefs that its only a 12 month exercise or an annual event with no benefits.
E. This is just a mean of paper work for the personal or HR department. It’s mean nothing.
F. None of the above.
                                                                                                                          148
24. Which of the following appraisal system is best considered by employees said “Maier’s “?
A. Tell and sell style
B. Tell and listen style
C. Problem solving Style
D. None of the above.

25. Repeated criticism had the worst effect on subsequent performance of individual who had little self-confidence.
A. True
B. False.

26. Upward appraisal means ………………………………………………………………………………..
A. Directors of the company rate their employees.
B. Managers are rated buy their subordinates.
C. Managers rate their subordinate with the help of outsource experts
D. Outsource expert’s rate the employees of the company.

27. Upward appraisal may also be used by organizations that are seeking to ‘……………………….’ their employees.
A. Control
B. Limit
C. Empower
D. Reward

28. Which of the following is the disadvantage of upward appraisal? State the one which is correct.
A. Subordinate tends to known their senior better then senior known their subordinate.
B. Subordinate rating is more reliable. More Subordinate better results.
C. Superior management has a better understanding about their junior problems with their behavior and conduct.
D. Senior take the rating positively and act in the light of the rating with no revenge in future.

29. When customers of the company take part in the appraisal system to some degree along with the management it is
called …………………
A. Upward Appraisal
B. Downward Appraisal
C. Customer Appraisal
D. 360 degree system

30. When upward, downward, customers and others take active part in appraisal it is known as
…………………………………………
A. Upward Appraisal
B. Downward Appraisal
C. Public Appraisal
D. 360 degree system

31. Which of the following does not take part in the 360 degree appraisal system?
A. Immediate Managers
B. Family members and friends
C. Subordinates and Customers.
D. Coworkers and peers

32. 360 degree appraisal system is also known as multi-source appraisal.
A. True
B. False.


                                                                                                                      149
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Answers chapter 18.
    1            D            11            D           21             C             31 B
    2            A            12            E           22             B             32 A
    3            B            13            A           23             F
    4            C            14            C           24             C
    5            A            15            D           25             A
    6            C            16            C           26             B
    7            B            17            D           27             C
    8            D            18            B           28             D
    9            A            19            E           29             C
   10            A            20            A           30             D

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