CA Inter EIS SM Multiple Choice Questions – CA Inter EIS SM Notes is designed strictly as per the latest syllabus and exam pattern.
CA Inter EIS SM Multiple Choice Questions
Case Study 8
A bank XYZ has many branches all over India. They provide major products and services through its various branches. However, the competent authority intends to bring all the branches together under one umbrella and make it centralized. Crosys is a leading Information technology company in India offering quality software products and services both in the domestic and international markets. The Bank has signed a strategic IT partnership with Crosys. Accordingly, XYZ Bank has licensed Prosys Banking software which includes Banksoft – the Core Banking Solution, eConnect – the Financial Middleware, and eBanker – the Internet Banking Solution. XYZ Bank intends to deploy Banksoft across 3000 branches over the next 2 years.
Question 1.
Based on the above case scenario, answer the following questions:
(a) Regulatory compliance
(b) Information Accuracy
(c) Resource optimization
(d) Customer centric
Answer:
(b) Information Accuracy
Question 2.
Which one of the following is not an example of CBS Software?
(a) Finacle
(b) FinnOnc
(c) Oracle
(d) BankMate
Answer:
(c) Oracle
Question 3.
Branch Banking is a _____
(a) Back End Applications
(b) Front End Applications
(c) Integrated Applications
(d) Non-Integrated Applications
Answer:
(b) Front End Applications
Question 4.
Which one of the following is not a Key Aspect in built into Architecture of CBS?
(a) Regulatory compliance
(b) Information Accuracy
(c) Resource optimization
(d) Customer centric
Answer:
(b) Information Accuracy
Question 5.
This Server performs necessary operations and this updates the account of the customer.
(a) Database Server
(b) Application Server
(c) Web Server
(d) Proxy Server
Answer:
(b) Application Server
Question 6.
A client connects to the____________ server, and then requests a connection, file, or other resource available on a different server.
(a) Database Server
(b) Application Server
(c) Web Server
(d) Proxy Server
Answer:
(d) Proxy Server
Application Based
Multiple Choice Questions
Question 1.
Under Asynchronous attacks in a telecommunication network system, ____ involves spying on information being transmitted over communication network.
(a) Wire-tapping
(b) Data Leakage
(c) Subversive Attacks
(d) Piggybacking
Answer:
(a) Wire-tapping
Question 2.
A Bank ABC gave an undertaking to the third party, supplier of goods/ services to pay amount of Rs. 2 crore to him on behalf of a businessman Mr. X; provided the terms and conditions of the undertaking are complied with. This service of banks is known as –
(a) Issuing letter of Guarantee
(b) Issuing letter of Comfort
(c) Issuing letter of Credit
(d) Issuing letter of Understanding
Answer:
(c) Issuing letter of Credit
Question 3.
An aspiring CA in his interview was asked to provide correct sequence of the following sub-processes that represent Accounting Process Flow. The sub-processes are –
(1)Source Document,
(2) Financial Statement,
(3) Adjustments
(4) Ledger,
(5) Adjusted Trial Balance,
(6) Closing Entries,
(7) Journal and
(8) Trial Balance.
What should be the answer?
(a) (1 )-(2)-(3)-(4)-(5)-(6)-(7)-(8)
(b) (4)-(3)-(7)-(6)-( 1 )-(2)-(8)-(5)
(c) (1 )-(7)-(4)-(8)-(3)-(5)-(6)-(2)
(d) (8)-(5)-(3)-( 1 )-(2)-(4)-(6)-(7)
Answer:
(c) (1 )-(7)-(4)-(8)-(3)-(5)-(6)-(2)
Question 4.
In an organization, there are certain risks that would prevent an organization from accomplishing its objectives and meeting its goals. These are referred as ____ risks.
(a) Operational
(b) Strategic
(c) Financial
(d) Reputational
Answer:
(b) Strategic
Question 5.
Mr. A visited an e-commerce website and placed an order for a pair of shoes. He made his payment of Rs. 2,000 through credit card and received a confirmation mail on his registered email-id. With respect to e-commerce architecture, which layer of the software is he working on?
(a) Database Layer
(b) Application Layer
(c) Presentation Layer
(d) Client Layer
Answer:
(b) Application Layer
Question 6.
Which of the following statement is incorrect?
(a) A Proxy Server is a computer that offers a computer network service to allow clients to make indirect network connections to other network services.
(b) The term Information Security refers to ensure Confidentiality, Integrity and Availability of infor mation.
(c) Any Application Software has primarily four gateways through which enterprise can control functioning, access and use the various menus and functions of the software – Configuration, Masters, Transactions and Reports.
(d) Section 66C of Information Tech-nology Act, 2000 provides for the punishment for cheating by person-ation by using computer resource.
Answer:
(d) Section 66C of Information Tech-nology Act, 2000 provides for the punishment for cheating by person-ation by using computer resource.
Question 7.
An amount of ₹ 100 is to be written off as same is not recovered from customer since last three years. Which voucher is best suited for the transaction?
(a) Journal
(b) Sales
(c) Purchase
(d) Contra
Answer:
(a) Journal
Question 8.
While doing a concurrent audit in a bank, Mr. X noticed that some changes have been made to advance master data files of the database. He uses an audit technique to identify such suspicious transactions. This technique shall be defined as ___.
(a) Continuous and Intermittent Sim-ulation (CIS)
(b) System Control Audit Review File (SCARF)
(c) Audit Hook
(d) Integrated Test Facility (ITF)
Answer:
(c) Audit Hook
Question 9.
During an audit of financial transactions in an enterprise XYZ, it was found that simple errors of data entry were occurring when two digit that were either individual or part of larger sequence of number were reversed when posting a transaction. Which type of error is this?
(a) Addition Error
(b) Truncation Error
(c) Substitution Error
(d) Transposition Error
Answer:
(d) Transposition Error
Question 10.
While auditing the input controls in an enterprise ABC, which of the following controls will not fall under the purview of input controls?
(a) Source Document Controls
(b) Data Coding Controls
(c) Boundary Control
(d) Batch Controls
Answer:
(c) Boundary Control
Question 11.
Which are the controls that are responsible for maintaining a chronology of the events from the time a sender dispatches a message to the time a receiver obtains the message?
(a) Boundary Controls
(b) Communication Controls
(c) Input Controls
(d) Database Controls
Answer:
(b) Communication Controls
Question 12.
In ABC, financial institution, the authorized officials identified existence of numerous accounts numbers of inactive accounts in their usage data of active customers. Complaint was reported to their IT team. Which type of controls can be exercised by the IT Team in the given case?
(a) Corrective controls
(b) Detective Controls
(c) Preventive controls
(d) Compensatory Controls
Answer:
(b) Detective Controls
Question 13.
Mr. X entered into a contract with Mr. Y for purchase of house hold products via online stores on Cash on Delivery (CoD). As per the terms, it was to be delivered within 3 days of the order placed. Due to delivery on the fourth day, Mr. X denied for the performance of the contract. This can be said to be a ___.
(a) Risk associated with controls
(b) Risk associated with security
(c) Risk associated with transaction
(d) Risk associated with e-Commerce
Answer:
(d) Risk associated with e-Commerce
Question 14.
XBL bank gave an undertaking to the third party for the supply of goods/ services to pay amount of Rs. 2 crore on behalf of the Mr. X, a business man, provided the terms and conditions of the undertaking are complied with this services of banks is known as-
(a) Issuing letter of guarantee
(b) Issuing letter of Comfort
(c) Issuing letter of credit
(d) Issuing letter of understanding
Answer:
(c) Issuing letter of credit
Question 15.
Under Data Resources Manage-ment Controls, ____ Controls are designed to prevent unauthorized individual from viewing, retrieving, computing or destroying the entity’s data in any organization.
(a) Access
(b) Backup
(c) Concurrency
(d) Quality
Answer:
(a) Access
Question 16.
Name the Module in ERP – Business Process Modules that includes the software designs specifically for production planning and management.
(a) Production Planning
(b) Material Management
(c) Sales and Distribution Module
(d) Supply Chain Module
Answer:
(a) Production Planning
Question 17.
Which of the following does not form part of Human Resources (HR) Management?
(a) Training and Development
(b) Career Development
(c) Leadership Management
(d) Invoicing
Answer:
(d) Invoicing
Question 18.
In this work place, an employee Mr. X wants to maintain a record of physical receipts of goods purchased from a vendor Mr. G in his Accounting System. Which Voucher type shall he use?
(a) Delivery Note
(b) Receipt Note
(c) Sales
(d) Purchase
Answer:
(b) Receipt Note
Question 19.
Which of the following transactions are not recorded in the Voucher Type “Contra” of the Accounting System?
(a) Cash deposit in bank
(b) Cash withdrawal from bank
(c) Cash transfer from one location to another
(d) Recording of all types of trading sales by any mode
Answer:
(d) Recording of all types of trading sales by any mode
Question 20.
In 3-Tier Architecture, name the layer that is responsible of receiving the inputs from the users and perform certain validations.
(a) Application Layer
(b) Database Layer
(c) Operating System Layer
(d) Network Layer
Answer:
(a) Application Layer
Question 21.
An aspiring CA in his interview CA in his interview CA was asked to provide correct sequence of the following sub-processes that represent Accounting Process Flow. The sub-processes are
(1) Source Document,
(2) Financial Statement,
(3) Adjustments
(4) Ledger
(5) Adjusted Trail Balance,
(6) Closing Entries,
(7) Journal and
(8) Trail Balance. What should be the answer?
(a) (1 )-(2)-(3)-(4)-(5)-(6)-(7)-(8)
(b) (4)-(3)-(7)-(6)-(l)-(2)-(8)-(5)
(c) (1)-(7)-(4)-(8)-(3)-(5)-(6)-(2)
(d) (8)-(5)-(3)-(l)-(2)-(4)-(6)-(7)
Answer:
(c) (1)-(7)-(4)-(8)-(3)-(5)-(6)-(2)
Question 22.
Which feature of operating system helps in allocating resources to make optimum utilization of resources?
(a) User Interface
(b) Memory Management
(c) File Management
(d) Task Management
Answer:
(d) Task Management
Question 23.
“Installation of Firewalls” in telecommunication network is a classic example of ____ controls under
Information System’ Controls.
(a) Managerial
(b) Application
(c) Preventive
(d) Corrective
Answer:
(c) Preventive
Question 24.
Which features of operating System Controls how memory is accessed and also maximizes the memory availability and storages?
(a) User Interface
(b) Memory Management
(c) File Management
(d) Task Management
Answer:
(b) Memory Management
Question 25.
Under Asynchronous attacks in telecommunication network systems, involves spying on information
being transmitted over communication network.
(a) Wire-tapping
(b) Data leakage
(c) Subversive attacks
(d) Piggybacking
Answer:
(a) Wire-tapping
Question 26.
Provide the correct sequences of phase of Program Development Life Cycle.
(1) operations and maintenance,
(2) coding,
(3) control,
(4) Design,
(5) testing and
(6) planning
(a) (4)-(6)-(2)-(3)-(1)-(5)
(b) (6)-(3)-(4)-(2)-(5)-( 1)
(c) (1)-(6)-(3)-(5)-(4)-(2)
(d) (3)-(5)-(2)-(1)-(6)-(4)
Answer:
(b) (6)-(3)-(4)-(2)-(5)-( 1)
Question 27.
In ABC, financial institution, the authorized official identified of numerous accounts numbers of inactive in their usage data of active customers. Complaint was reported to their it team. Which type of controls can be exercise by the IT Team in the given case?
(a) Corrective Controls
(b) Preventive Controls
(c) Detective Controls
(d) Compensatory Controls
Answer:
(c) Detective Controls
Question 28.
Mr. Hope of Delhi ordered raw material for manufacturing of products for domestic use from supplier in j Kolkata. Service to deliver the raw material was fixed “within 10 days from j the date of order”. State the subsequent stage of order to cash cycle-
(a) Collections
(b) Invoicing
(c) Delivery Note
(d) Order Fulfilment
Answer:
(c) Delivery Note
Question 29.
An organization ABC used to make payment of the salaries to its employees by transferring of funds to their saving accounts. This mode of transfer made by an ABC is ____.
(a) Remittances
(b) ECS Credit
(c) ECS Debit
(d) Deposits
Answer:
(c) ECS Debit
Question 30.
Mr. Mysterious used to chat on internet under the name of Mrs. Ritu. He also her landline telephone number for further for chatting. Ms. Ritu was a senior executive of the credit rating information sources of India Ltd. Mr. Mysterious was employed as financial analyst but had been forced to terminate the job earlier. Ritu started receiving mischievous calls. In the light of the given facts, state the liability of Mr. Mysterious within the purview of the Information Technology Act, 2000.
(a) Punishable for offence related to web defacement
(b) Punishable for phishing and email scam
(c) Theft of confidential information
(d) Harassment via fake public on social networking site.
Answer:
(d) Harassment via fake public on social networking site.
Question 31.
X through his computer steals the data saved in Y’s computer of valuable customers of ABC Ltd. X sold this data to the competitor of ABC Ltd. This act of X is ____.
(a) Source code theft
(b) Theft of confidential information
(c) Email Account hacking
(d) Hacking
Answer:
(d) Hacking
Question 32.
Which of the following is not a rule to be followed while Voucher Numbering?
(a) Voucher number must be unique
(b) A voucher number may either have prefix or suffix or both
(c) Voucher numbers may be num bered randomly
(d) Every voucher type shall have a separate numbering series.
Answer:
(c) Voucher numbers may be num bered randomly
Question 33.
Which of the following statement is not type for internal control system?
(a) Facilitates the effectiveness and efficiency of operations.
(b) helps safeguarding the assets of the entity.
(c) Assist compliance is required in . flowchart, it can be easily done.
(d) Helps ensure the reliability of only internal financial reporting and not external financial reporting.
Answer:
(d) Helps ensure the reliability of only internal financial reporting and not external financial reporting.
Question 34.
Which of the following is not an advantage of flowchart?
(a) If any modification is required in a flowchart, it can be easily done.
(b) It’s a blueprint of a system that can be broken down into detailed parts of a study.
(c) Acts as a guide during the system analysis and program preparation phase.
(d) Aid in communicating the facts as of a business problem to those whose skills are needed for arriving at the solution.
Answer:
(a) If any modification is required in a flowchart, it can be easily done.
Question 35.
Arrange sequentially the following steps involved in general ledger process?
(i) Posting of transactions.
(ii) Reviewing transaction
(iii) Generating financial reports
(iv) Entering financial transaction into the system.
(v) Approving transactions.
(a) (iv), (i), (ii), (v), (iii)
(b) (i), (ii), (iii), (iv), (v)
(c) (iv), (ii), (v), (i) (iii)
(d) (v), (iv), (i), (iii), (ii)
Answer:
(c) (iv), (ii), (v), (i) (iii)
Question 36.
Arrange sequentially the activities involved in sales and distribution module?
(i) Inventory Sourcing
(ii) Payments
(iii) Billing
(iv) Pre-Sales Activities
(v) Sales Order Processing
(vi) Delivery
(a) (i), (ii), (vi), (iv), (v), (iii)
(b) (iv), (v), (i), (vi), (iii), (ii)
(c) (iv), (v), (i), (it), (vi), (iii)
(d) (i), (vi), (ii), (vi), (iii), (iv)
Answer:
(b) (iv), (v), (i), (vi), (iii), (ii)
Question 37.
Which of the following is not a technique of Cryptography?
(a) Transposition
(b) Substitution
(c) Product Cipher
(d) Transcription
Answer:
(d) Transcription
Question 38.
In an ERP System, which of the following is not true about integration of Modules with Financial and Account System?
(a) Master data across all the modules must be same.
(b) Common transaction data must be shared with other modules wher ever required.
(c) Common Voucher types to be used for each module for easy integra tion of department recording it.
(d) Separate Voucher types for each module for easy identification of department recording it.
Answer:
(c) Common Voucher types to be used for each module for easy integra tion of department recording it.
Question 39.
Tick the incorrect statement
(a) In Relation Database model, the named columns of the relation are called Domain.
(b) In Relation Database model, a re-lationship is a table with rows and columns
(c) In Relation Database model, the named columns of the relation are called attributes.
(d) In Relation Database model, the domain is the set of the values an attribute can take.
Answer:
(a) In Relation Database model, the named columns of the relation are called Domain.
Question 40.
In computer network packet switching, __________
(a) All packets pass through a common path.
(b) All packets arrive at the destination out of order.
(c) The receiving device restores the packets in the same order it re ceives them.
(d) All packets arrive at the destination in order.
Answer:
(b) All packets arrive at the destination out of order.
Question 41.
Which of the following is not a type Data Resource Management Controls under Managerial Controls?
(a) Existence Controls
(b) Concurrency Controls
(c) Production Controls
(d) Quality Control
Answer:
(c) Production Controls
Question 42.
Which of the following does not fit into best practices while dealing with passwords in order to avoid system failures?
(a) Periodic change of passwords
(b) Unlimited number of entry attempts
(c) Minimum password length
(d) Hashing of passwords
Answer:
(b) Unlimited number of entry attempts
Question 43.
Under emerging BYOD (Bring your Own Device) Threats, ____ risk refers to the data lost from stolen or lost devices.
(a) Network
(b) Application
(c) Device
(d) Implementation
Answer:
(c) Device
Question 44.
In Cloud Computing, which of the following instance of Software as a Service (SaaS) allows users to explore functionally of Web services such as Google Maps, Payroll Processing, and credit card processing services?
(a) API as a service (APIaaS)
(b) Testing as a Service (TaaS)
(c) Email as a service (EaaS)
(d) Data as a service (DaaS)
Answer:
(a) API as a service (APIaaS)
Question 45.
Which activity is not incorporated | during audit of Environment Controls?
(a) Backup Power
(b) Water Detection
(c) Fire detection and Suppression
(d) Guards and Dogs
Answer:
(d) Guards and Dogs
Question 46.
As an Information Systems Auditor, mention the activity that does not form part of audit of Logical Access Controls?
(a) Access violations
(b) Intrusion Detection and Prevention
(c) Backup Power
(d) Shared Accounts
Answer:
(c) Backup Power
Question 47.
In a three-tier architecture, which layer is responsible for performing certain validations like, if the user is authorized to request the transaction or not?
(a) Application Layer
(b) Presentation Layer
(c) Database Layer
(d) Session Layer
Answer:
(a) Application Layer
Question 48.
Suggest the control required to address the concerns raised with the following risk – “As everybody is connected to a single system and central database, in case of failure of system, the whole business may come to stand and may get affected badly.”
(a) This can be controlled and monitored by having proper and updated backup of data as well as alternate hardware/internet arrangements,
(b) This can be controlled by removing redundant data, using techniques like data warehousing and updat- 21 ing hardware on a continuous basis.
(c) Access rights need to be defined carefully and to be given on “need to know” and “Need to do” basis only.
(d) This can be controlled and min-imized with the help of proper training system, having help man-uals, having backup plans for staff turnover etc.
Answer:
(a) This can be controlled and monitored by having proper and updated backup of data as well as alternate hardware/internet arrangements
Question 49.
Suggest the control required to address the concerns raised with the following risk – “As data is maintained centrally the data size becomes more and more and it may reduce the speed i of operation.”
(a) This can be controlled and mon-itored by having proper and updated backup of data as well as alternate hardware/internet arrangements.
(b) This can be controlled by removing redundant data, using techniques like data warehousing and updat-ing hardware on a continuous basis.
(c) Access rights need to be defined carefully and to be given on “Need to know” and “Need to do” basis only.
(d) This can be controlled and min-imized with the help of proper staff training system, having help manuals, having backup plans for staff turnover etc.
Answer:
(b) This can be controlled by removing redundant data, using techniques like data warehousing and updat-ing hardware on a continuous basis.
Question 50.
In an Accounting Business Process Cycle, arrange the sub-processes in order.
(i) Journal
(ii) Ledger
(iii) Financial Statement
(iv) Closing Entries
(v) Source Document
(vi) Trial Balance
(vii) Adjusted Trial Balance
(viii) Adjustments
(a) (v), (i), (vii), (iii), (ii), (iv), (vi), (viii)
(b) (i), (ii), (iii), (viii), (vii), (vi), (v), (iv)
(c) (v), (i), (ii), (vi), (viii), (vii), (iv), (iii)
(d) (ii), (i), (v), (viii), (iv), (iii), (vi), (vii)
Answer:
(b) (i), (ii), (iii), (viii), (vii), (vi), (v), (iv)
Question 51.
As a telecommunication network operator, which internet working device will you suggest for regenerating the signal over the same network before the signal becomes too w eak or corrupted?
(a) Bridge
(b) Router
(c) Hub
(d) Repeater
Answer:
(d) Repeater
Question 52.
In this transmission mode, the data flows in one direction, but not both at the same time. Which transmission modes are referring to?
(a) Simplex
(b) Half-Duplex
(c) Duplex
(d) Packet switching
Answer:
(b) Half-Duplex
Question 53.
A business Continuity Plan (BCP) is an example of ____.
(a) Managerial
(b) Application
(c) Preventive
(d) Corrective
Answer:
(d) Corrective
Question 54.
In telecommunication network, ____ is the act of following an authorized person through a secured door or electronically attaching to an authorized telecommunication link that intercepts and alters transmissions. This involves intercepting communication between the operating system and the user and modifying them or substituting new messages.
(a) Wire tapping
(b) Piggybacking
(c) Subversive attacks
(d) Data Leakage
Answer:
(b) Piggybacking
Question 55.
One amongst the list is a not a threat.
(a) Virus
(b) Trojan
(c) Worm
(d) Firewall
Answer:
(d) Firewall
Question 56.
Which type of risk a company becomes vulnerable to when it adopts Bring Your Own Device (BYOD)?
(a) Confidentially Risk
(b) Device Risk
(c) Application Risk
(d) Implementation Risk
Answer:
(a) Confidentially Risk
Question 57.
Database Management System (DBMS) helps the organization to do various operations on the files.
(a) Adding or deleting files from data-base
(b) Inserting or modifying existing files
(c) Retrieving or deleting data from existing files
(d) Duplicating Files
Answer:
(d) Duplicating Files
Question 58.
A bank shares financial data of borrower with third party without constant of borrower. The bank has
violated _____ of sensitive Information and Personal Data Rules, 2011.
(a) Rule 3
(b) Rule 4
(c) Rule 5
(d) Rule 6
Answer:
(c) Rule 5
Question 59.
To enhance automation, a company defines re-order levels for regular consumption of raw material items in their ERP system. Once an item hits Re-order Level, the system creates a purchase requisition for Economic Order Quantity(EOQ)/Re-Order Quantity (ROQ) and emails the same to selected vendors asking them to send quotations. This method of doing business can be best defined as ____.
(a) Business Process Automation
(b) Business Process Integration
(c) Business Process Upgrade
(d) Business Process Module
Answer:
(a) Business Process Automation
Question 60.
A new system has been developed that ensures that as soon as inventory level goes below re-order level in INVENTORY SYSTEM, a purchase requisition is generated from PURCHASE SYSTEM. Which testing method shall be best suited to check whether the two systems are working properly?
(a) Unit Testing
(b) Program Testing
(c) Integration Testing
(d) Whole-of-Program Testing
Answer:
(c) Integration Testing
Question 61.
A Bank has updated its existing Corer Banking Systems (CBS) system to a new version. It is found that the new system is not automatically sending monthly Bank Statements to its custom-ers. The same feature was available in the previous system. This error is result of mistake in which step?
(a) Design
(b) Planning
(c) Implementation
(d) Maintenance
Answer:
(a) Design
Question 62.
An enterprise is configuring TALLY 9.1 ERP system for fixing monthly budgets for expenses. A heated argument is going on the issue of when to fix budget for any head. Please help management in deciding on when to create budgets.
(a) After 3 months from today based on the average expenses
(b) Today itself based on past years’ experience and future projected increase
(c) Cannot be fixed today
(d) Today itself based on future pro-jections for expenses
Answer:
(b) Today itself based on past years’ experience and future projected increase
Question 63.
Mr. X features in an advertisement of an Air conditioner of brand Z where he emphasizes that this Air Conditioner can be all controlled through a mobile.
This is perfect example of ____ technology.
(a) Cloud Computing
(b) Internet of Things (IoT)
(c) Artificial Intelligence
(d) Bring Your Own Device (BYOD)
Answer:
(b) Internet of Things (IoT)
Question 64.
Which objective of Business Process Automation (BPA) is achieved using Passwords in Information Systems?
(a) Confidentiality
(b) Integrity
(c) Timeliness
(d) Availability
Answer:
(a) Confidentiality
Question 65.
The most critical resource for an Enterprise Resource Planning (ERP) System is ____.
(a) Hardware
(b) Data
(c) Software
(d) People
Answer:
(b) Data
Question 66.
In computer networking, best example of a device working on HALF DUPLEX transmission mode is ____.
(a) Radio
(b) Television
(c) Mobile
(d) Walkie – Talkie
Answer:
(d) Walkie – Talkie
Question 67.
In computer network, a vulnerability is best defined as _____.
(a) Risk to system
(b) Weakness of controls
(c) Value of risk
(d) Possible Threat
Answer:
(b) Weakness of controls
Question 68.
Which of the following combination is not a violation of maker – Checker Rule for Internal Control?
(a) Cashier is also a Ledger Writer
(b) Auditor acting as an Implementa-tion Consultant
(c) System Developer acting as a Sys-tem Quality Control Personnel
(d) Auditor Suggesting Controls
Answer:
(d) Auditor Suggesting Controls
Question 69.
Auditor of a company finds that management policy of cash expenses limit of Rs. 5,000 is not being adhered to. There are many violations of the same during the year. Auditor of the company shall report on same under which clause of Companies Act, 2013?
(a) 134(4)
(b) 143(3)
(c) 134(3)
(d) 143(4)
Answer:
(b) 143(3)
Question 70.
Bills of Materials (BoM) is an important feature for any ERP software. The sub-system where a BoM is located is ____.
(a) Manufacturing
(b) Financials
(c) Projects
(d) Human Resource Management
Answer:
(a) Manufacturing
Question 71.
Database is a collection of Data. Various database models are used. The database models having using a primary key is ______.
(a) OODBMS
(b) RDBMS
(c) Network Database Model
(d) Hierarchical Database Model
Answer:
(b) RDBMS
Question 72.
Driverless cars are the future of personal transportation technology. Many companies have been testing these cars on roads across the world. Few fatalities have been caused by these driverless cars. The culprits are not yet booked. This reflects which risk of AI as a technology being used in driverless cars.
(a) The police investigations are poor.
(b) AI is not human.
(c) The law is not being able to meet the requirements of technology.
(d) No one is responsible
Answer:
(c) The law is not being able to meet the requirements of technology.
Question 73.
A company has purchased a luxury yacht in Monte Carlo from sale of property worth Rs. 100 crores. The sale was executed in cash and money was taken out of India through dubious means. This transaction is a money laundering act by the company. Purchase of luxury yacht is best classified as ________.
(a) Application
(b) Placement
(c) Integration
(d) Layering
Answer:
(c) Integration
Question 74.
Entity-Relationship (ER) Diagram, Data Flow Diagram, Flowcharts all use graphical symbols. All symbols given are used in all three except one.
Answer:
(b)
Question 75.
Pick the ODD one out.
(a) Accounting Information System
(b) Input
(c) Output
(d) Process
Answer:
(a) Accounting Information System
Question 76.
Pick the odd one out.
(a) Amazon Alexa
(b) Boss Speakers
(c) Apple Siri
(d) Google Talk
Answer:
(b) Boss Speakers
Question 77.
An element that has contributed to e-commerce success is payment gateways. One that does not fall in the definition is _____.
(a) SBI Buddy
(b) HDFCZapp
(c) Paytm
(d) Cash On Delivery
Answer:
(d) Cash On Delivery
Question 78.
In Core banking Systems, a ____ server is a computer that offers a computer network service to allow clients to make indirect network connections to other network services.
(a) ATM
(b) Network
(c) Proxy
(d) Internet Banking
Answer:
(c) Proxy
Strategic Management Integrated Case Studies
Case Study 1
Veggie Restaurant and Sai Restaurant are successfully competing in the business of ready to eat snacks in Delhi. Veggie Restaurant has been pioneer in introducing innovative products. These products will give them good sale. However, Sai Restaurant will introduce similar products in reaction to the products introduced by the Veggie Restaurant Foods taking away the advantage gained by the former.
Also Veggie Restaurant understands the importance of Strategic Management and has developed Strategic Vision, set the objectives and crafted the strategy.
To implement appropriate Strategy, Veggie Restaurant has hired expert Strategic Planners to analyse external and internal environment.
Soon the business of Veggie Restaurant result in expansion and multiple branches were opened. To formulate the Strategies at different levels became the necessity for Veggie Restaurant.
Based on the above case scenario, answer the multiple choice questions which are as follows:
Question 1.
Which one of the following is not a level of Strategy formulation for Veggie Restaurant?
(a) Corporate level
(b) Business level
(c) Divisional Level
(d) Functional level
Answer:
(c) Divisional Level
Question 2.
Which of the following is not a limitation of Strategic Management?
(a) It is difficult to understand the complex environment and exactly pinpoint how it will shape-up in future.
(b) Optimum utilization of resources is not possible due to too much planning
(c) Strategic management is a costly process.
(d) Difficult to clearly estimate the competitive responses
Answer:
(b) Optimum utilization of resources is not possible due to too much planning
Question 3.
Sai Restaurant is following which of the following strategy?
(a) Proactive
(b) Reactive
(c) Aggressive
(d) Differentiation
Answer:
(b) Reactive
Question 4.
If resources of Veggie Restaurant permit, it is better to be ____ rather than reactive.
(a) Proactive
(b) Reactive
(c) Aggressive
(d) Positive
Answer:
(b) Reactive
Question 5.
Strategic management helps the organization to develop certain core competencies and competitive advantages that would facilitate assist in its fight for survival and growth. This statement is:
(a) Advantage of Strategic Manage-ment
(b) Importance of Strategic Manage-ment
(c) Limitation of Strategic Manage-ment
(d) None of the above
Answer:
(b) Importance of Strategic Manage-ment
Case Study 2
Trepsico Trito Company is one of the most famous brands in food and beverages industry in the world. It has seventeen food and beverage brands worth more than 100 crores. Trepsico Trito, Crisppy Chips (subsidiary), Tasty Chips (acquisition), Tangy (joint venture), Twisters (acquisition), and Threshold drink are just some of the household names that Trepsico Trito Company manages.
Trepsico Trito’s mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. Convenient F&B defines Trepsico Trito’s business. Trepsico Trito’s vision is articulated as achieving business and financial success while leaving a positive imprint on society – delivering what it calls Performance with Purpose. For example, Trepsico Trito India’s Agri program presently benefits over 24,000 farmers across 14 states through various Agri and sourcing initiatives. All the potato used in Crisppy Chips and Tasty Chips is grown in India and sourced from Indian farmers. Through its 360-degree farmer connect initiatives for potato cultivation, Trepsico Trito provides training and seed support, advanced plant protection programs, and assured buy-back with reasonable returns. Besides backward integration with farmers it has invested in cold storages along its supply chain. Since 2009 it has been Water Positive by conserving, utilising and managing this important resource in a sustainable manner.
The company is geographically diverse too. Trepsico Trito operates all around the world- only 50 per cent of its sales come from the United States and Canada.
Given this breadth of business and market scope, Trepsico Trito faces a variety of strategic scenarios: capitalizing on scale advantage in its core brand where it is a global leader; building businesses in fast-developing and unpredictable markets, categories, and products more so on account of shifts in consumer behaviour such as a greater focus on healthy living away from its “star” carbonated beverages and “cash cow” fried snacks businesses; the need for greater experimentation and innovation, for example in new flavours of chips to create and capitalize on newer sources of growth.
It is not inconceivable that Trepsico Trito’s different businesses at different times go through different stages of strategy thus necessitating a portfolio approach to strategy formulation with reference to market/business growth and market share such as BCG Matrix. While it competes fiercely with Chilled drink in different countries, it proactively fosters strategic partnerships with quick service restaurants and multiplex players.
Based on the above Case Scenario, answer the Multiple Choice Questions which are as follows:
Question 1.
Match the columns in respect of the following elements of the strategic intent and their descriptions:
| Column A | Column B |
| (i) Vision | (a) Product-Market Configuration |
| (ii) Business Model | (b) The way business is conducted |
| (iii) Business Definition | (c) Aspiration for a desired future |
| (iv) Mission | (d) The scope of Business |
(a) (i)-(a); (ii)-(b); (iii)-(c); (iv)-(d)
(b) (i)—(b); (ii)-(c); (iii)—(d); (iv)-(a)
(c) (i)—(c); (ii)-(b); (iii)-(d); (iv)-(a)
(d) (i—(d); (ii)-(c); (iii’)-(b); (iv)-(a)
Answer:
(c) (i)—(c); (ii)-(b); (iii)-(d); (iv)-(a)
Question 2.
State the two dimensions implied by portfolio approach to strategy formulation in Trepsico Trito’s experiences are:
(a) Vision and Mission
(b) Food Business and Beverages Business
(c) Market Growth and Relative Market Share
(d) Performance and Purpose
Answer:
(c) Market Growth and Relative Market Share
Question 3.
The business/product portfolio classification implied by BCG Matrix comprises which of the following combinations?
(a) Growth; Stability; Retrenchment; Turnaround
(b) Weakness-Threat; Weakness-Op portunity; Strength-Opportunity; Strength-Threat
(c) Cash-Cows; Stars; Question Marks; Dogs
(d) Market Penetration; Product De velopment; Market Development; Diversification
Answer:
(c) Cash-Cows; Stars; Question Marks; Dogs
Question 4.
Which of the following may be cited as instances of collaborative approach/ strategic alliance Trepsico Trito follows in its strategy?
(a) Diversification from carbonated drinks to.fruit juices
(b) Diversification from fried to baked chips
(c) Partnerships with quick service restaurants and multiplexes
(d) Diversification into breakfast ce-reals
Answer:
(c) Partnerships with quick service restaurants and multiplexes
Question 5.
Which of the following is the most correct corporate level strategic alternative by the overall strategic direction evident from Trepsico Trito’s corporate strategy?
(a) Growth/Expansion strategy
(b) Stability strategy
(c) Retrenchment strategy
(d) Turnaround strategy
Answer:
(a) Growth/Expansion strategy
Case Study 3
Connect Private Limited, a Mumbai based company is launching a smartphone, under the brand name of Poppy. The company recognizes plethora of options that customers have from Chinese manufacturers flooding the smartphone landscape. With recent COVID-19 pandemic hurting the global sentiment towards Chinese products, the company plans to play on the patriotic card and advertise Poppy as the “Desi” smartphone of India.
Strategic Arm of the company undertook an industry analysis and reported, that, budget phone segment was overtaken by the Chinese brands completely; however, the low segment of smartphones was still open for exploration. Thus, the company planned to enter the market with two models, Poppy A and Poppy B, priced at Rs. 4,499 and Rs. 5,499.
The company is also aware that their product can easily be imitated at same costing as well as pricing, and thus the very essence of their product can be lost. A team of marketing professionals was hired to tackle this issue. The solution they suggested was to take the first mover advantage by spending huge sums in advertising and promotion.
Based on sound consciousness of the competition from huge money backed international players, the company decided to manufacture smartphone covers and accessories with the same “Desi” tag, along with Poppy Smartphones. This shall help them mitigate the risk of being completely thrown out of business. Consequently, they invested a fairly good amount in manufacturing of these accessories.
The investors made it an objective for the team to reach an annual sales volume of 15,000 handsets and 70,000 pieces of accessories. The accessories sales surpassed the expectations by a fairly good margin. However, Poppy A and Poppy B did not receive the much anticipated response and the leadership decided to reduce the scope and focus purely on accessories business going forward.
With a new focus on accessories production, the “Desi” tag will still play an important part in the success. However, they need to ensure creation of strong barriers to entry for domestic players, and for that, they have plans to increase the production to enormous levels. This shall reduce their unit cost, thus, eliminating the new entrants due to extremely competitive pricing.
Based on the above case scenario, answer the multiple choice questions which are as follows:
Question 1.
Connect Private Limited, entered a saturated market of smartphones, after a due market study of understanding the competitive landscape. Put the below steps in correct sequence of understanding thecompetitivelandscape.
(I) Understanding the competitors
(II) Determining strengths and weak-nesses of the competitors
(III) Identify the competitors
(IV) Put all information gathered to-gether
(a) (I), (III), (II), (IV)
(b) (III), (I), (II), (IV)
(c) (II), (III), (IV),(I)
(d) (I), (III), (II), (IV)
Answer:
(b) (III), (I), (II), (IV)
Question 2.
Annual sales volume as an objective by the investors was crucial to establish the company in the market. In which stage of strategic management are such annual objectives especially important?
(a) Formulation
(b) Control
(c) Evaluation
(d) Implementation
Answer:
(d) Implementation
Question 3.
Following the sales numbers reported at the end of year, the leadership took a serious strategic stand point to move forward and shift to a new core business which was more profitable. Under which of the following category of business strategy can this decision be categorized?
(a) Retrenchment strategy
(b) Strategic alliance
(c) Diversification strategy
(d) Market development
Answer:
(a) Retrenchment strategy
Question 4.
After getting results from the market, accessories business of the company can be classified under which category of BCG’s growth share matrix?
(a) Star
(b) Question mark
(c) Cash cow
(d) Dog
Answer:
(c) Cash cow
Question 5.
In the second phase of shifting the business focus to peripheral accessories production, Connect Private Limited has planned setting up entries to barrier for its potential competitors. Which of the following barrier have they planned to implement?
(a) Capital requirement
(b) Product differentiation
(c) Access to distribution channels
(d) Economies of scale
Answer:
(d) Economies of scale
Case Study 4
Manoj Kumar is having his own medium size factory in Mumbai, manufacturing hardware consisting handles, hinges, tower bolts and so on. He has a staff of more than 220 employees in his organization. One of the leading brands of Hardware seller in India is rebranding and selling the material from his factory. Manoj Kumar believes in close supervision and takes all major and minor decisions in the organization.
However, a Strategic Consultant Mr. Arjun advised Manoj Kumar to concentrate mainly on strategic decisions which will have wide implications.
Mr. Arjun also advised Manoj to have clear Vision and Mission and formulate a Mission statement which will have to achieve the Strategic Intent of the Business. Mr. Arjun explained about the importance of Strategic Intent and how Strategic Intent gives an idea of what the organization desires to attain in future.
Based on the above case scenario, answer the multiple choice questions which are as follows:
Question 1.
State which of the point may be considered while writing a mission statement for the company of Manoj Kumar:
(a) The mission of a company should be to make profit.
(b) The mission of a company should not be to make profit.
(c) The mission of a company should not be unique
(d) The mission of a company should cover all aspects of organization
Answer:
(b) The mission of a company should not be to make profit.
Question 2.
Which one of the following is not a strategic element of Strategic Vision?
(a) Strategic vision delineates Organi-sation’s aspirations for the business
(b) Coming up with a mission state-ment that defines what business the company is presently in and conveys the essence of “Who we are and where we are now?”
(c) Using the mission statement as basis for deciding on a long-term course making choices about “Where we are going?”
(d) Communicating the strategic vision in clear, exciting terms that would arouse organization wide commit-ment.
Answer:
(a) Strategic vision delineates Organi-sation’s aspirations for the business
Question 3.
“It seeks to explain the business undertaken by the firm, with respect to the customer needs, target markets, and alternative technologies”. This statement belongs to one of the element of Strategic Intent:
(a) Mission
(b) Business Definition
(c) Vision
(d) Goals and Objectives
Answer:
(b) Business Definition
Question 4.
One of the dimensions of Strategic Decisions describes Strategic decisions involve commitment of _________
(a) Time
(b) Money
(c) Organizational Resources
(d) Strategic Intent
Answer:
(c) Organizational Resources
Question 5.
_____ is an answer to the basic question ‘what business are we in and what we do’.
(a) Vision
(b) Strategic Intent
(c) Mission
(d) Objectives
Answer:
(c) Mission
Case Study 5
Babulal started his FMCG Company “Babulal Mart” in the year 2001. Until the year 2007, Babulal was having only one shop under his company.
But after 2007, Babulal changed his strategy and focused on delegating the responsibilities and started opening more branches.
By the year 2019, Babulal Mart were having 63 Branches all over India. But due to the pandemic in 2020; many of the branches of were not working in a profitable position and Mr. Babulal consulted you to help his company come out of the tough situation.
Unfortunately, in the year 2022, “Babulal Mart” decided to closed down its 15 branches.
Later on, in the year 2023, Mr. Babulal started considering the purchase of a number of farms that provides them with a significant amount of its fresh produce. Babulal Mart feels that by purchasing the farms, it will have greater control over its supply chain.
Babulal Mart is also interested in acquiring another company located in Mumbai which is into making TV Serials.
Based on the above case scenario, answer the multiple choice questions which are as follows:
Question 1.
Until the year 2007, Babulal Mart was following which strategy?
(a) Concentric
(b) Expansion
(c) Stability
(d) Retrenchment
Answer:
(c) Stability
Question 2.
From the years 2007 to 2019, Babulal mart followed which strategy?
(a) Concentric
(b) Expansion
(c) Stability
(d) Retrenchment
Answer:
(b) Expansion
Question 3.
Mr. Babulal considering the pur chase of a number of farms that provides them with a significant amount of its fresh produce signifies which type of Diversification?
(a) Horizontally integrated diversifi-cation
(b) Concentric diversification
(c) Backward Integration
(d) Forward Integration
Answer:
(c) Backward Integration
Question 4.
Babulal Mart is also interested in acquiring another company located in Mumbai which is into making TV Serials.
(a) Vertically integrated diversification
(b) Horizontally integrated diversification
(c) Concentric diversificalion
(d) Conglomerate diversification
Answer:
(d) Conglomerate diversification
Question 5.
Directional strategy, also called as _____
(a) Stability Strategy
(b) Expansion Strategy
(c) Grand Strategy
(d) Divestment Strategy
Answer:
(c) Grand Strategy
Case Study 6
Four friends Mr. A, Mr. B, Mr. C, Mr. D formed 4 different companies A Ltd., B Ltd., C Ltd., D Ltd.
Mr. A makes all major decisions directly and monitors all activities of A Ltd.
B Ltd. has significantly diminished the role played by specialist managers of the middle management, by replacing many tasks of the middle management through Artificial Intelligence.
In C Ltd., functional and product forms are combined simultaneously at the same level of the organization. Employees have two superiors, a product or project manager and a functional manager.
D Ltd. has organized structure by product and services.
Based on the above case scenario, answer the multiple choice questions which are as follows:
Question 1.
Organization Structure followed by A Ltd. is—
(a) Functional Structure
(b) Simple Structure
(c) Hourglass Structure
(d) SBU Structure
Answer:
(b) Simple Structure
Question 2.
Organization Structure followed by B Ltd. is—
(a) Functional Structure
(b) Divisional Structure
(c) Hourglass Structure
(d) SBU Structure
Answer:
(c) Hourglass Structure
Question 3.
Organization Structure followed by C Ltd. is—
(a) Functional Structure
(b) Matrix Structure
(c) Hourglass Structure
(d) SBU Structure
Answer:
(b) Matrix Structure
Question 4.
Organization Structure followed by D Ltd. is—
(a) Functional Structure
(b) Simplè Structure
(c) Divisional Structure
(d) SBU Structure
Answer:
(c) Divisional Structure
Question 5.
This is not one of the phase proposed by Davis and Lawrence for development of matrix structure.
(a) Cross-functional task forces
(b) Functional Matrix
(c) Product/brand management
(d) Mature matrix
Answer:
(b) Functional Matrix
Application Based
Multiple Choice Questions
Question 1.
Which of the following statements correctly explain strategic management?
i Strategic management provides framework for major decisions.
ii Strategic management helps to en-hance the longevity of the business.
iii Strategic management is an inex-pensive process.
iv. Strategic management helps or-ganisation to be more reactive than proactive.
(a) (i) and (ii)
(b) (i), (ii) and (iii)
(c) (i), (ii) and (iv)
(d) (i), (iii) and (iv)
Answer:
(a) (i) and (ii)
Question 2.
Which of the following is not true for core competency:
(a) It distinguishes a company com-petitively.
(b) It is a source of competitive advan-tage.
(c) It is an individual skill and separate technique
(d) It is often visible in the form of organizational functions.
Answer:
(c) It is an individual skill and separate technique
Question 3.
Statement that is typically focused on present business scope and broadly describes an organizations present capabilities, customer focus, activities, and business makeup is:
(a) Vision
(b) Mission
(c) Strategy
(d) Goals
Answer:
(b) Mission
Question 4.
Arrange divestment, liquidation, stability and turnaround strategies in order of preference for adoption by a typical organisation.
(a) Turnaround, stability, liquidation and divestment.
(b) Divestment, liquidation, stability and turnaround.
(c) Stability, turnaround, liquidation and divestment.
(d) Stability, turnaround, divestment and liquidation.
Answer:
(d) Stability, turnaround, divestment and liquidation.
Question 5.
Best-cost provider strategy is related to providing customers more value for money by:
(a) Highlighting low cost and low quality difference.
(b) Emphasizing low cost and better quality difference.
(c) Producing high cost and low quality difference.
(d) Managing high cost and low quality difference.
Answer:
(b) Emphasizing low cost and better quality difference.
Question 6.
Supply chain refers to the linkages between:
(a) Suppliers
(b) Logistics
(c) Customers
(d) All the above
Answer:
(d) All the above
Question 7.
Which of the following is not true for SBUs
(a) It is relevant for multi-product, multi-business enterprises.
(b) It provides for more control at enterprise level with centralised strategic planning.
(c) A SBU has its own set of competi-tors.
(d) SBUs can be created for units at distant geographical locations.
Answer:
(b) It provides for more control at enterprise level with centralised strategic planning.
Question 8.
Strategy evaluation is difficult on account of following trends, except:
(a) There is dramatic increase in the environment’s complexity.
(b) It is difficult to predict future.
(c) Firms have unlimited resources.
(d) Obsolescence is rapid.
Answer:
(c) Firms have unlimited resources.
Question 9.
Acquisition of another organisation that was using your product in their manufacturing is:
(a) Horizontal integrated diversification
(b) Forward integrated diversification
(c) Backward integrated diversification
(d) conglomerate diversification
Answer:
(b) Forward integrated diversification
Question 10.
Porter’ cost leadership is a ______ strategy
(a) Functional level
(b) Business level
(c) Corporate level
(d) Implementation
Answer:
(b) Business level
Question 11.
Strategy is-
(a) Proactive in action
(b) Reactive in action
(c) A blend of proactive and reactive actions
(d) None of the above
Answer:
(c) A blend of proactive and reactive actions
Question 12.
‘Strategic group mapping’ helps in-
(a) Identifying the strongest rival com-panies
(b) Identifying weakest rival companies
(c) Identifying weakest and strongest rival companies
(d) None of the above
Answer:
(c) Identifying weakest and strongest rival companies
Question 13.
In which phase of strategic man-agement are annual objectives especially important?
(a) Formulation
(b) Control
(c) Evaluation
(d) Implementation
Answer:
(d) Implementation
Question 14.
Retrenchment strategy in the organization can be explained as
(a) Reducing trenches (gaps) created between individuals.
(b) Divesting a major product line or market.
(c) Removal of employees from job through the process of reorgani-zation.
(d) Removal of employees from job in one business to relocate them in other business.
Answer:
(b) Divesting a major product line or market.
Question 15.
Differentiation Strategy can be achieved by following measures:
1. Match products with tastes and preferences of customers.
2. Elevate the performance of the product.
3. Rapid product innovation Which of the above is true?
(a) (1) and (2)
(b) (1) and (3)
(c) (2) and (3)
(d) (1), (2) and (3)
Answer:
(d) (1), (2) and (3)
Question 16.
Supply chain refers to the linkages between:
(a) Suppliers
(b) Customers
(c) Manufacturers
(d) All the above
Answer:
(d) All the above
Question 17.
An entrepreneur is one who:
(a) Initiates and innovates a new con-cept.
(b) Does not recognize and utilizes opportunities.
(c) Does not want to face risks and uncertainties.
(d) None of these.
Answer:
(a) Initiates and innovates a new con-cept.
Question 18.
After an earnest attempt to bring in a strategic change in your organization, you the operational head of XYZ Ltd., succeeded but still your organization couldn’t achieve the desired competitive position in the market. Out of the follow-ing what could be the reason?
(a) Strategy Formulation
(b) Strategy Model
(c) Strategy Implementation
(d) Strategy Decision
Answer:
(c) Strategy Implementation
Question 19.
Which of the following are respon-sible for formulating and developing realistic and attainable strategies?
(a) Corporate level and business level managers
(b) Corporate level and functional level managers
(c) Functional managers and business level managers
(d) Corporate level managers, business level managers and functional level managers
Answer:
(d) Corporate level managers, business level managers and functional level managers
Question 20.
A tool by which management identifies and evaluates the various businesses that make up a company is termed as:
(a) Value Chain Analysis
(b) Portfolio Analysis
(c) Competition Analysis
(d) Strategic Analysis
Answer:
(b) Portfolio Analysis
Question 21.
Which one is not the element of strategic intent?
(a) Business model
(b) Vision
(c) Business definition
(d) Business standard
Answer:
(d) Business standard
Question 22.
Vertical integration may be bene-ficial when—
(a) Lower transaction costs and improved coordination are vital and achievable through vertical integration.
(b) Flexibility is reduced, providing a more stationary position in the competitive environment.
(c) Various segregated specializations will be combined.
(d) The minimum efficient scales of two corporations are different.
Answer:
(a) Lower transaction costs and improved coordination are vital and achievable through vertical integration.
Question 23.
Competitive rivalry has the most effect on the firm’s – strategies than the firm’s other strategies.
(a) Business level
(b) Corporate level
(c) Functional level
(d) All of these
Answer:
(a) Business level
Question 24.
The marketing strategy which is used to reduce or shift the demand is:
(a) Enlightened Marketing
(b) Synchro-Marketing
(c) Place Marketing
(d) Demarketing
Answer:
(d) Demarketing
Question 25.
In strategic management, there are two main styles of leadership. These are transformational and:
(a) Transparent
(b) Transitional
(c) Translational
(d) Transactional
Answer:
(d) Transactional
Question 26.
You being the core strategist of your company, entrusted with bringing about strategic change in your company, how will you initiate “unfreezing of the situation”?
(a) Promoting new ideas throughout the organization
(b) Promoting compliance throughout the organization
(c) Promoting change in process throughout the organization
(d) None of the above
Answer:
(a) Promoting new ideas throughout the organization
Question 27.
Velvet Limited is a full-service airline. The company is making the fol-lowing decisions:
i. Should a ‘no-frills’, ‘low-fare’ sub-sidiary be set-up?
ii. If it is set-up, how should the cabin staff be recruited?
Which of the above decisions will be taken by corporate level managers?
(a) Only (i)
(b) Only (ii)
(c) (i) & (ii)
(d) Neither (i) nor (ii)
Answer:
(a) Only (i)
Question 28.
Training Co. operates a network of accounting training centres through out Europe, the US and Australia. The business intends to enter developing markets in order to drive growth and has now decided to enter India which is 7,500 kilometres from the Training Co.’s UK headquarters. The Board has suggested that it will require externally focused management information to move into India. Which of the following is an external factor(s) that the Board should consider while implementing its strategy?
(a) Key local rivals and their strengths and weaknesses
(b) Courses are suitable for this market
(c) Timing of the courses (Public hol-idays, religious festivals, etc. to be avoided)
(d) All of the above
Answer:
(d) All of the above
Question 29.
GetWellSoon Limited is a health provider and has only large, edge of town hospitals. It is considering setting-up additional small city centre clinics ca pable of treating less-serious day cases. Which of the following will fall under “Strategy Implementation”?
(a) Acquiring and fitting out clinics
(b) Hiring and/or transferring staff
(c) Publicity, so that patients know where and when to go
(d) Liaison with general practitioners and the main hospitals
(a) Only (d)
(b) (b) & (d)
(c) (a), (b)&(d)
(d) (a), (b), (c) & (d)
Answer:
(d) (a), (b), (c) & (d)
Question 30.
A person who searched for business opportunity and starts a new enterprise to make use of that opportunity called
(a) Employee
(b) Entrepreneur
(c) Intrapreneur
(d) Investor
Answer:
(b) Entrepreneur
Question 31.
The Niche strategy is the best way to enter a:
(a) New market
(b) Growing market
(c) Matured market
(d) None of the above
Answer:
(c) Matured market
Question 32.
Human resource management has been accepted as a strategic partner in the formulation of organization’s strat egies and in the implementation of such strategies through human resource plan-ning, employment, training, appraisal and reward systems. Factors that influence on employee competence are:
i. Recruitment and selection
ii. Training
iii Appraisal of performance
iv. Compensation
(a) i, ii & iii
(b) ii, iii & iv
(c) i, ii, iii & iv
(d) iii & iv
Answer:
(c) i, ii, iii & iv
Question 33.
Perscopter, a manufacturer of private helicopter offers unique features that fulfil the demands of a narrow market. It competes in market based on its uniqueness and custom-oriented private helicopters. Perscopter provides limited number of high-end helicopters with ultimate features. Which business strategy is being followed by Perscopter?
(a) Differentiation
(b) Focused differentiation
(c) Cost leadership
(d) Focused cost leadership
Answer:
(b) Focused differentiation
Question 34.
Which of the following is more radical organisation design and is also called as non-structure which virtually eliminates in-house business functions and outsources many of them?
(a) Network structure
(b) Strategic business unit
(c) Hourglass structure
(d) Simple structure
Answer:
(a) Network structure
Question 35.
The process of creating, maintain ing, and enhancing strong, value-laden relationships with customers and other stakeholder is:
(a) Social marketing
(b) Augmented marketing
(c) Direct marketing
(d) Relationship marketing
Answer:
(d) Relationship marketing
Question 36.
Gennex industries are analyzing the technological forces for the firm which 1 may provide it opportunities and threats for which of the following stage/s of strategic management process?
(a) Strategy formulation
(b) Strategy implementation
(c) Strategy evaluation
(d) All of the above
Answer:
(d) All of the above
Question 37.
Strategic management allows an organization to be more:
(a) Authoritative
(b) Participative
(c) Commanding
(d) Proactive
Answer:
(d) Proactive
Question 38.
Which of the following is correct?
(a) Strategy is always pragmatic and not flexible
(b) Strategy is not always perfect, flawless and optimal
(c) Strategy is always perfect, flawless and optimal
(d) Strategy is always flexible but not pragmatic
Answer:
(b) Strategy is not always perfect, flawless and optimal
Question 39.
Which of the following are respon-sible for formulating and developing realistic and attainable strategies?
(a) Corporate level and business level managers
(b) Corporateleveland functional level managers
(c) Functional level managers and business level managers
(d) Corporate level managers, business level managers and functional level managers
Answer:
(d) Corporate level managers, business level managers and functional level managers
Question 40.
Competitive landscape requires the application of:
(a) Competitive advantage
(b) Competitive strategy
(c) Competitive acumen
(d) Competitive intelligence
Answer:
(d) Competitive intelligence
Question 41.
Which one is not the element of strategic intent?
(a) Business model
(b) Vision
(c) Business definition
(d) Business standard
Answer:
(d) Business standard
Question 42.
If suppliers are unreliable or too costly, which of these strategies may be appropriate?
(a) Horizontal integration
(b) Backward integration
(c) Market penetration
(d) Forward integration
Answer:
(b) Backward integration
Question 43.
In Michael Porter’s generic strate-gy emphasizes producing standardized products at a very low per unit-cost for consumers who are price sensitive.
(a) Cheap leadership
(b) Inferior product leadership
(c) Cost leadership
(d) Cost benefit
Answer:
(c) Cost leadership
Question 44.
A campaign advocating the mes-sage of ‘save water’ is:
(a) Services Marketing
(b) Holistic Marketing
(c) Social Marketing
(d) Direct Marketing
Answer:
(c) Social Marketing
Question 45.
____ leadership style may be appropriate in turbulent environment.
(a) Transactional
(b) Transformational
(c) Autocratic
(d) None of these
Answer:
(b) Transformational
Question 46.
The purpose of strategy evaluation is to:
(a) increase the budget annually
(b) alert management to problems or potential problems
(c) make budget changes
(d) evaluate employees’ performance
Answer:
(b) alert management to problems or potential problems
Question 47.
Strategic management can be effectively used by NGOs to:
(a) Use resource effectively
(b) Raise funds
(c) Achieve goals
(d) All the above
Answer:
(d) All the above
Question 48.
Anything that a firm does especially well compared to rival firms is referred to as—
(a) Competitive advantage
(b) Comparative advantage
(c) Opportunity cost
(d) Sustainable advantage
Answer:
(a) Competitive advantage
Question 49.
What is the first step in the comprehensive strategic -management model?
(a) Developing vision and mission statements
(b) Performing external audits
(c) Measuring and evaluating perfor-mance
(d) Establishing long-term objectives
Answer:
(a) Developing vision and mission statements
Question 50.
Which strategy is implemented after the failure of turnaround strategy?
(a) Expansion strategy
(b) Diversification strategy
(c) Divestment strategy
(d) Growth strategy
Answer:
(c) Divestment strategy
Question 51.
Best-cost provider strategy involves providing customers more value for the money by emphasizing:
(a) Low cost and low quality difference
(b) Low cost and better quality differ-ence
(c) High cost and low quality difference
(d) High cost and better quality differ-ence
Answer:
(b) Low cost and better quality differ-ence
Question 52.
Fora new product, an organization may choose:
(a) Skimming pricing strategy
(b) Penetration pricing strategy
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)
Question 53.
A person who searched for business opportunity and starts a new enterprise to make use of that opportunity is called
(a) Employee
(b) Entrepreneur
(c) Intrapreneur
(d) Investor
Answer:
(b) Entrepreneur
Question 54.
Competitive landscape requires the application of-
(a) Competitive advantage
(b) Competitive strategy
(c) Competitive acumen
(d) Competitive intelligence
Answer:
(d) Competitive intelligence
Question 55.
‘Determinants Analysis’ falls in the purview of-
(a) External competitive strategy anal-ysis
(b) Internal competitive strategy anal-ysis
(c) Strategic risk
(d) Competitive landscape
Answer:
(a) External competitive strategy anal-ysis
Question 56.
The concept of ‘core competence’ has been advocated by-
(a) Gary Hamel and Peter Drucker
(b) C.K. Prahlad and Gary Hamel
(c) C.K. Prahlad and Michael Porter
(d) C.K. Prahlad and Peter Drucker
Answer:
(b) C.K. Prahlad and Gary Hamel
Question 57.
Corporate level strategy is con-cerned with the following-
(a) How do we want to compete?
(b) Where do we want to compete?
(c) How to support the strategy imple-mentation?
(d) all of the above
Answer:
(b) Where do we want to compete?
Question 58.
‘Customer Analysis’ and ‘Market Analysis’ are the part of-
(a) Internal analysis
(b) Strategy identification and selec tion
(c) External analysis
(d) None of the above
Answer:
(c) External analysis
Question 59.
‘Strategic group mapping’ involves-
(a) Identifying the strongest rival com-panies
(b) Identifying weakest rival compa nies
(c) Identifying weakest and strongest rival companies
(d) None of above
Answer:
(c) Identifying weakest and strongest rival companies
Question 60.
‘Attractiveness of firms’ while conducting industry analysis should be seen in-
(a) Relative terms
(b) Absolute terms
(c) Comparative terms
(d) all of the above
Answer:
(a) Relative terms
Question 61.
Which of the following is true of a transnational corporation:
(a) They have subsidiaries but do not have centralized management system
(b) They have no subsidiaries but have centralized management system
(c) They do not have subsidiaries and do not have centralized manage ment system
(d) They have subsidiaries and have a centralized management system
Answer:
(c) They do not have subsidiaries and do not have centralized manage ment system
Question 62.
A campaign advocating the mes-sage of ‘SAVE WATER’ is:
(a) Services Marketing
(b) Holistic Marketing
(c) Social Marketing
(d) Direct Marketing
Answer:
(c) Social Marketing
Question 63.
Entering into a ‘contract’ by MNCs is an example of:
(a) Partial Ownership Alliance
(b) Joint Venture Alliance
(c) Non-Equity Alliance
(d) Joint Ownership Alliance
Answer:
(c) Non-Equity Alliance
Question 64.
‘Competitor’s Differentiation’, Customer Value and ‘Application of Competitiveness’ are the three important areas of:
(a) Value chain analysis
(b) Business process Re-engineering
(c) Competitors Analysis
(d) Core Competence Concept
Answer:
(d) Core Competence Concept
Question 65.
“Inbound and Outbound logistics” are related to:
(a) Supply Chain Management
(b) Logistics Management
(c) Value Chain Analysis
(d) All of the above
Answer:
(b) Logistics Management
Question 66.
A tool by which management identi fies and evaluates the various businesses that make up a company is termed as:
(a) Value Chain Analysis
(b) Portfolio Analysis
(c) Competitive Analysis
(d) Strategic Analysis
Answer:
(a) Value Chain Analysis
Question 67.
‘Build,’ ‘Hold,’ Harvest,’ and ‘Divest’ are the strategies pursued in:
(a) Boston Consulting Group Growth Share Matrix
(b) Value chain analysis
(c) Managerial grid matrix
(d) Ansoff’s product matrix growth matrix
Answer:
(b) Value chain analysis
Question 68.
The low growth, low share busi-nesses in BCG matrix are:
(a) Cows
(b) Dogs
(c) Cats
(d) Question marks
Answer:
(b) Dogs
Question 69.
An advertisement says, ‘Have Roo- hafza with milk and lassi too.’ Which strategy is the company trying to use:
(a) Market Development
(b) Product Development
(c) Market penetration
(d) all of the above
Answer:
(c) Market penetration
Question 70.
ADL matrix has been propounded by:
(a) Arthur D. Lowey
(b) Arthur D. Little
(c) Arthur D. Levin
(d) Arthur D. Louise
Answer:
(b) Arthur D. Little
Question 71.
Geographical Diversification, prod-uct diversification and Entry Mode are the domains of:
(a) Functional Strategy
(b) Business Strategy
(c) Corporate Strategy
(d) all of the above
Answer:
(c) Corporate Strategy
Question 72.
Which of the following bases of competitive advantage is/are more sustainable:
(a) Benefit-based competitive advan tage
(b) price-based competitive advantage
(c) Cost-based competitive advantage
(d) all of the above
Answer:
(a) Benefit-based competitive advantage
Question 73.
The Niche strategy is the best way to enter a:
(a) New market
(b) Growing market
(c) Matured market
(d) None of the above
Answer:
(c) Matured market