Management Screening Test

What are the primary functions of commerce in an economy?

• A) Production and Consumption

• B) Trade and Aiding Services

• C) Accounting and Finance

• D) Manufacturing and Marketing

2. Differentiate between 'trade' and 'commerce' with examples.

• A) Trade is buying and selling; commerce includes supportive services

• B) Trade is only for goods; commerce is only for services

• C) Trade is a broader term; commerce is limited to exchanges

• D) There is no difference between trade and commerce

3. Explain the concept of 'opportunity cost' and its significance in decision-making.

• A) The additional cost of producing one more unit

• B) The profit foregone from the next best alternative

• C) The sunk cost incurred during production

• D) The budgeted cost for a specific project

4. What is the 'law of demand'? Discuss factors that can cause a shift in the demand curve.

• A) Higher prices lead to lower demand

• B) Prices have no effect on demand

• C) Higher demand leads to higher prices

• D) Demand is unaffected by consumer income

5. What are the advantages and disadvantages of a partnership firm compared to a sole proprietorship?

• A) Lower risk and higher profits

• B) Shared responsibility and shared profits

• C) Unlimited liability and no ownership transfer

• D) Total ownership control and lower investment

6. Define 'corporate governance' and explain its importance in business organizations.

• A) A system for setting company goals

• B) The process of managing employees

• C) A framework for ethical and accountable management

• D) The study of market positioning strategies

7. Describe Maslow's hierarchy of needs and its relevance to employee motivation.

• A) A set of basic needs arranged in order of priority

• B) A framework only used in psychology, not business

• C) An irrelevant theory in modern management

• D) A financial theory on investment risks

8. What is 'group dynamics,' and how does it impact productivity in an organization?

• A) The way individuals are promoted in a group

• B) The study of employee backgrounds

• C) The interactions and relationships within groups

• D) A company’s strategy for market competition

9. Explain Henri Fayol's 14 principles of management. Give an example of how one principle is applied in practice.

• A) A theory focused on market segmentation

• B) A framework for structured management practices

• C) A process only relevant in finance management

• D) A human resource theory on team-building

10. Discuss the difference between 'strategic planning' and 'operational planning'.

• A) Strategic planning is short-term; operational planning is long-term

• B) Operational planning is broader in scope

• C) Strategic planning focuses on long-term goals, operational on daily activities

• D) Operational planning has no relation to strategic goals