Given below is the list of SET B Exam Asked Question so far Do check these out before your Final MCQ Exam so that you can Excel in the exam without any issue these question were prepared by MANMOHAN GUPTA do give them your Thanks.
Set B Important Question
Sr No. | Questions | Answers |
1 | Which of the following is part of the ‘Soft S’ in McKinsey’s 7S framework? a) Strategy b) Systems c) Structure d) Skills | Skills |
2 | Which of following statements are incorrect in regard to Argenti’s A score model. 1. Mistakes and defects not inter-related. 2. Threshold is Kept at score of 45. 3. There are three underlying groups (dimensions) i.e., Mistakes, Defects and Symptoms of failure. | Both 1 and 2 only |
3 | The Ease of Value for money Framework | Economy, Efficiency, Effectivenss |
4 | 2 extra Es in Value for money (VFM)? | Equity, Ethics |
5 | Maximise ratio of input of resources & output of goods, services or other material. | efficiency |
6 | Which one are not challenging assessment of effectiveness a) Define what constitute litter | Answer is in from other 3 option |
7 | Case Study: A company has four products (S, P, A, N) with different tag lines: Product S: Why Pay more When you Payless Product P: Conservation, Preservation & Sustain Product A: You get what you pay for Product N: Safety First | |
8 | a) Which one cost leadership strategy? | Why Pay more When you Payless (Product S) |
9 | b) Which one is product differentiation strategy? | You get what you pay for (Product A) |
10 | c) Which product emphasizes a differentiation strategy based on environmental sustainability? | Conservation, Preservation & Sustain (Product P) |
11 | d) Which product emphasizes safety as its primary differentiating factor? | Safety First (Product N) |
12 | Which of the following is not a reason to use the concept of Learning Curve? | Introducing new technology |
13 | Sales Rs. 4,00,000; Variable Cost Rs. 3,00,000; Fixed Cost Rs. 75,000; Investments Rs. 1,50,000 and desired 20% on investments. What is residual income? | -5000 |
14 | Strategic Control means | Read from SM |
15 | Which Price Strategy involve setting a low initial price to quickly gain large market share? | Penetration pricing |
16 | Premium Price Strategy is when a) Price are high & demand elastic b) price are high & demand inelastic c) price are low & demand elastic | – |
17 | Pricing strategy of combining package with manufacturing coupon or rebate? | Mixed Bundling |
18 | Case Study: A service company, ServicePro Inc., has implemented the Building Block Model to enhance its performance measurement system. The model focuses on dimensions, standards, and rewards. | |
19 | a) Which of the following is a determinant under the Building Block Model? 1) Flexibility 2) Equity 3) Clear communication 4) Controllability | Flexibility |
20 | b) In the Building Block Model, what characteristic should performance measures possess to be considered equitable? | They should be challenging for all parts of the business equally |
21 | c) ServicePro Inc. sets a target to achieve four product innovations per year rather than simply “”innovate””. This target exemplifies which characteristic of standards in the Building Block Model? | Ownership |
22 | d) What is a key benefit of using the Building Block Model in performance measurement? | It aligns performance measures with strategic goals and employee motivation |
23 | Turnover increase is which dimension of building block model? | Financial Performance |
24 | Disruptive innovation refers to | the process of transforming an expensive or highly sophisticated product, offering, or service into one that is simpler, more affordable, and accessible to a broader population. |
25 | Disruptive innovation can be classified as | Low end disruption and new market disruption |
26 | Incubators means in a company | help startup by developing its strong idea into a viable product It work on a fee-basis as opposed to taking an equity stake in the startup. |
27 | Rework cost can classified as | Internal failure cost |
28 | Type of report Integrates scope, schedule, and cost performance using earned value management techniques | Earned Value Report |
29 | Type of report that Captures the state of the activity at a particular point or project at a particular point in its life cycle. | Status Report |
30 | Case Study: Coal… Ltd. is a leading company involved in the mining and production of coal. The company operates in a highly regulated industry with significant capital investments required for exploration and mining operations. | |
31 | a) Identify the level of threat of new entrants. | Low |
32 | b) Identify level of threat of substitute if allocation of new coal block to steel, thermal & other industries? | High |
33 | c) Analyze the intensity of competitive rivalry within the coal mining industry. | Very High |
34 | d) Assess the bargaining power of suppliers in the coal mining industry. | Low |
35 | Case Study: Match the following on Porter’s five forces: a) The industry requires significant capital investments for new firms to enter. b) Large volume purchases by power plants give them significant negotiating power c) The presence of alternative energy sources like natural gas and renewables. d) Numerous coal mining companies compete aggressively for market share. e) Standardized inputs and multiple suppliers reduce supplier leverage. | a) Threat of New Entrants b) Bargaining Power of Buyers c) Threat of Substitutes d) Competitive Rivalry e) Bargaining Power of Suppliers |
36 | Case study related to Optimum price level (SM page. 6.37) Demand for Different price level given. Direct material, Direct labour, Variable cost, Fixed Cost data also given. Q. Calculate Price at which profit is maximum Q. If company sells at lowest possible price, DL cost will come down by 10% because of learning curve effect. Calculate revised profit. | |
37 | Which of these doesn’t affect market share variance a) sales efforts, b) successful marketing strategy, c) learning curve effect. | Learning curve effect |
38 | Case study : Reverse Calculation of OEE OEE % & Availability %, data related to working normal working time, break time, good units, total units etc were given. Q Calculate Performance % Q Calculate Quality % Q Calculate ideal cycle time | |
39 | In a manufacturing environment, if a machine has an Availability of 90%, a Performance of 85%, and a Quality of 95%, what is the Overall Equipment Effectiveness (OEE)? | 72.68% |
40 | A company reduced the price of its product to throw away the competitor from market. This pricing strategy is called? | Predatory Pricing |
41 | What describes the “Free Model” in disruptive business models? | A business model where the core product is free for a large number of users, but premium features are sold to a smaller subset. |
42 | Find out correct sentence about freemium – a) basic version is free & upgraded version is at premium, b) freemiums are free forever for basic versions & customers cant get full product c) offers free version for limited time. | A) |
43 | Business model in which the company applies lock system limiting customers options. | Service ecosystem model |
44 | Which of the following is an example of the “Subscription Model”? | An e-commerce platform charging a monthly fee for exclusive access to deals |
45 | A company sold Printers cheaply to build demand for high-margin printer cartridges. Which model is followed by co? | Razorblade business model – also known for cross subsidization |
46 | What is the primary characteristic of a hyper-competitive market? | High level of rivalry among the players |
47 | Which of the following is a strategic response to hyper-competition according to D’Aveni’s 7S framework? | Shifting the rules of the market |
48 | Order of ADAPTED Balanced scorecard? | 1)Customer, 2)Financial, 3) Internal, 4) Innovation learning |
49 | Which financial performance measure arguably has strong correlation with shareholders wealth? | Economic value addition |
50 | Case Study: Two divisions (Division A and Division B) have the following financial data: Division A: Operating Profit: ₹5,00,000 Capital Employed: ₹20,00,000 Division B: Operating Profit: ₹4,00,000 Capital Employed: ₹16,00,000 Company’s Cost of Capital (CoC): 10% | |
51 | a) Calculate the ROI for Division A and Division B. | Division A: 25%, Division B: 25% |
52 | b) Calculate the RI for Division A and Division B. | Division A: ₹3,00,000, Division B: ₹2,40,000 |
53 | c) Identify the correct statement about RI and ROI. | ROI is a relative measure, and RI is an absolute measure. |
54 | d) Given the current ROI of both divisions and the CoC, identify the correct statement (from an ROI perspective). | Division A manager will reject the project if its ROI < Division A’s ROI, but the project should be accepted if its ROI > Company’s ROI. |
55 | Which coefficient has more weight in Z score? | X3 (EBIT/ Total Assets) |
56 | Zscore is helpful in predicting what? | Bankruptcy |
57 | A Co was heavy engineering company involved in setting up & installing P&M having more than 350 offices in India with 2000 direct employees. From this, Identify the org structure of the company? | Divisional Structure |
58 | Formula to calculate no of relations & cross relations. | n(n-1)/2 & n(n-1) |
59 | ESG full form | Envirnmental, Social & Corporate governance |
60 | Multi-national organizations try to maximize profits by using transfer pricing as a tool to reduce the tax impact on earnings. Where, the supplying division is in a country with tax rate, the transfer price will be set lower in – order to reflect higher earnings (resulting from lower purchase cost) in the purchasing division, which has a tax rate. | Higher tax rate & Lower tax rate respectively |
61 | Pareto principle based upon the law of | Diminishing returns |
62 | Question related to types of E Commerce Model | – |
63 | Full Form of STEEPLE | social, technological, economic, environmental, political, legal, and ethical |
64 | Full Form of SMART. | Strategic Measurement Analysis and Reporting Technique |
65 | Full form of SBU. | Strategic Business Unit |
66 | Level 2 in performance pyramid shows what?? | In order to achieve corporate vision, the initial focus is on the attainment of CSFs related to market and finance at the SBU or division level. |
67 | Objective of Level 1? | organisation defines how long-term success and competitive advantage will be attained. |
68 | Which is superior against other in performance pyramid & Balanced scorecard. | Performance Pyramid |
69 | Limitation as compared to performance prism | Performance pyramid consider as only shareholder and customer whereas Performance Prism Model considers the expectations and contributions of all the stakeholders as core |
70 | Aim of JIT | reduce inventory holding costs and increase inventory turnover |
71 | What are primary objective of Just-in-Time (JIT) inventory management? | Minimizing inventory levels |
72 | Which of the following best describes a key benefit of implementing Just-in-Time (JIT) systems? | Reduced waste and improved efficiency |
73 | Limitation of Network or Virtual Organisation | reducing management’s control and the reliability of partners |
74 | Meaning of Matrix organisation | Read from SM |
75 | Disclosure in ESR reporting | shed light on a company’s ESG activities while improving investor transparency and inspiring peerorganizations |
76 | Deciding the selling price of the new product in market is the most difficult decision. While doing the variance analysis, the manager of the sales and marketing department of the company is interested to know which of the following is not responsible for Sales Price Variance – a) Higher discounts given to customers in order to encourage bulk purchases b) Failure to satisfy demand due to production difficulties c) Better sales price realization d) Market conditions or economic conditions forcing changes in prices across the industry | B) |
77 | Which of the following does Kaizen improvement process not focus on? | Improvement by innovation |
78 | Case Study: XYZ Ltd- South Korean Branch and Brazilian Branch, procuring through internal transfers 250000 units @35000, Variable cost is 30000, an external party offer is available to Brazilian branch, now company has asked South korean branch (transferor) to look into the matter. | |
79 | Q1 Calculate local consumption tax (tax rate, forex rate given) | – |
80 | Q2 Net P/L to South Korean Subsidiary | – |
81 | Q3 Net Benefit/ Deficit to company | – |
82 | Identification of Preventive or Appraisal cost | – |
83 | Identify business model – when two people interact and buy. | Ecommerce |
84 | Question related to Case Study: Why company failed? | technology not adapted due to management style or due to cost leadership thus not invested in tech |
85 | Radical one off changes to inborne ops and process | Process Re-engineering |
86 | Identification of Company Model: The company will charge them a fee to upgrade to a more comprehensive offer. To gain access to additional features or an upgraded version, users must pay a set fee to the company. | Freemium |
87 | Strategic cost Management help in | Managing cost (reduce cost) & alligning them to strategies |
88 | Identifying On-Demand Model. | Swiggy & Zomato |
89 | How does the “On Demand Model” disrupt traditional business models? | By charging a premium for instant access to products and services. |
90 | Difference Between Planning & Operational Variance | A Planning Variance simply compares a revised standard to the original standard whereas Operational Variance simply compares the actual results against the revised amount |
91 | Case Study: XYZ Ltd. operates in the consumer electronics industry and has adopted two distinct competitive strategies for its product lines: cost leadership and product differentiation. For its basic line of smartphones, XYZ Ltd. focuses on cost leadership, aiming to become the lowest-cost producer in the industry. For its premium line of smartphones, XYZ Ltd. emphasizes product differentiation by offering unique features and superior quality. | |
92 | a) Which strategy is XYZ Ltd. using for its basic line of smartphones? | Cost Leadership |
93 | b) What is the primary objective of a cost leadership strategy? | To become the lowest-cost producer in the industry |
94 | c) Which of the following features is most likely associated with XYZ Ltd.’s premium line of smartphones? | Unique features and superior quality |
95 | d) What is a key characteristic of a product differentiation strategy? | Unique product attributes that create value for customers |
96 | e) Which of the following is a potential risk of the cost leadership strategy for XYZ Ltd.? | Competitors imitating cost reduction strategies |
97 | f) In the context of XYZ Ltd., what could be a potential benefit of implementing a product differentiation strategy for its premium line? | Increased brand loyalty and customer retention |
98 | g) If XYZ Ltd. wants to maintain its cost leadership strategy, which of the following actions should it prioritize? | Reducing overhead costs and improving operational efficiency |
99 | h) What could be a significant challenge for XYZ Ltd. when pursuing a product differentiation strategy in a highly competitive market? | Keeping up with frequent technological advancements |
100 | Case Study: ABC Ltd. is a global manufacturing company looking to expand its operations in a new international market. The company’s strategic team conducts a STEEPLE analysis to understand the various external factors that might impact their decision. The analysis covers: Social Factors: Increasing demand for eco-friendly products among consumers. Technological Factors: Rapid advancements in manufacturing technology. Economic Factors: Fluctuating exchange rates and inflation rates in the target market. Environmental Factors: Stricter environmental regulations and sustainability initiatives. Political Factors: Political stability and government policies favoring foreign investments. Legal Factors: Compliance with international trade laws and local labor laws. Ethical Factors: Corporate social responsibility and ethical labor practices. | |
101 | a) Which of the following is an example of a Social factor in the STEEPLE analysis for ABC Ltd? | Increasing demand for eco-friendly products |
102 | b) How might rapid advancements in manufacturing technology, a Technological factor, impact ABC Ltd.’s decision to expand? | By reducing production costs and improving efficiency |
103 | c) What type of factor is “”stricter environmental regulations”” in the context of the STEEPLE analysis for ABC Ltd.? | Environmental |
104 | d) Which factor in the STEEPLE analysis would involve assessing the compliance with international trade laws and local labor laws? | Legal |
105 | Case Study: DEF Ltd. is a company operating in the consumer electronics industry. The strategic management team at DEF Ltd. uses Porter’s Five Forces Model to analyze the competitive environment and to develop strategies for maintaining its market position. The analysis covers: Threat of New Entrants: The industry has high barriers to entry due to significant capital investment requirements and strong brand loyalty among consumers. Bargaining Power of Suppliers: There are few suppliers of critical components, giving suppliers considerable power over prices. Bargaining Power of Buyers: Buyers have a moderate amount of power due to the availability of alternative brands and the increasing access to market information. Threat of Substitute Products: The threat is high due to rapid technological advancements and the availability of alternative electronic products. Industry Rivalry: Competition is intense among existing players, with aggressive marketing and | |
frequent product innovations. | ||
106 | a) Which of the following factors is considered under the “”Threat of New Entrants”” in Porter’s Five Forces Model? | Significant capital investment requirements |
107 | b) What effect does the high bargaining power of suppliers have on DEF Ltd.’s operations? | It puts upward pressure on production costs |
108 | c) Why is the threat of substitute products considered high for DEF Ltd.? | Because of rapid technological advancements |
109 | d) What is the primary reason for intense industry rivalry in the consumer electronics market as faced by DEF Ltd.? | Aggressive marketing and frequent product innovations |
110 | e) How does moderate bargaining power of buyers impact DEF Ltd.? | It forces DEF Ltd. to focus on customer satisfaction and competitive pricing |
111 | f) Which of the strategies can DEF Ltd. use to mitigate the threat of new entrants? | Enhancing brand loyalty through marketing |
112 | Case Study: A service level agreement (SLA) has been established between XYZ Company and its client. The agreement includes a gain-sharing arrangement based on cost savings achieved over three years. The cost savings realized in each year are as follows: Year 1: ₹1,00,000 Year 2: ₹1,50,000 Year 3: ₹2,00,000 | |
113 | a) What is the total cost savings achieved over the three years? | 450000 |
114 | b) If the gain-sharing ratio is 50:50, how much does XYZ Company receive from the total savings? | 225000 |
115 | c) For Year 2, with a gain-sharing ratio of 40:60 between Client & XYZ, what is the client’s share of the cost savings? | 60000 |
116 | d) Assuming the total cost savings in Year 3 are shared in a 30:70 ratio, how much does XYZ Company receive? | 140000 |
117 | Case Study: Raya Health Care Limited, a leading healthcare service provider in Mumbai, is outsourcing its CT scan and MRI services to Livlife, an international chain of diagnostic centres. Livlife promises to provide radiologist reports within 24 hours. The agreement includes: Cost savings generated in the first year will be retained by Livlife. Cost savings generated in the second and third years will be shared between Raya and Livlife at a ratio of 30%:70%. Cost savings generated in the fourth year will be passed to Raya. Additional Data: The total cost savings generated in each of the first four years are as follows: Year 1: ₹1,00,000 Year 2: ₹2,00,000 Year 3: ₹3,00,000 Year 4: ₹4,00,000 | |
118 | a) How much cost savings is attributable to Company 1 (Raya Health Care Limited) in the second and third years combined? | ₹ 1,50,000 |
119 | b) How much cost savings is attributable to Company 2 (Livlife) in the second and third years combined? | ₹ 3,50,000 |
120 | c) What is the total amount of cost savings generated in the fourth year? | ₹ 4,00,000 |
121 | d) What is the cumulative amount of cost savings retained by Livlife over the four years? | ₹ 4,50,000 |
122 | Case Study: ABS Company: Total calls: 12,000 Calls answered within the threshold limit: 11,500 Abandoned calls: 300 RBS Company: Total calls: 9,500 Calls answered within the threshold limit: 8,000 Abandoned calls: 250 | 95/20 for ABS: This likely means that 95% of the calls should be answered within 20 seconds. 90/15 for RBS: This likely means that 90% of the calls should be answered within 15 seconds. |
123 | a) What is SLA threshold & what is threshold time? | It is Activity response time specified in agreement. Threshold Time: For ABS, the threshold is 20 seconds. For RBS, the threshold is 15 seconds. |
124 | b) What is the SLA threshold in percentage for ABS and RBS? | 95% and 90% |
125 | c) Compute the Service Level (SL)? | ABS: 98.29% RBS: 86.49% |
126 | Which of the following is NOT a component of the Cost of Quality (COQ)? a) Prevention Costs b) Appraisal Costs c) External Failure Costs d) Market Share Costs | Market Share Cost |
127 | Who popularized the concept of the Cost of Quality in his book “Quality Is Free”? | Philip B. Crosby |
128 | Which of the following costs is associated with the prevention of poor quality in products and services? | Prevention Cost |
129 | What type of cost is associated with defects that are found before the customer receives the product or service? | Internal Failure Costs |
130 | Case Study: JK Ltd. produces and sells a single product. Presently, the company has an annual external failure cost of ₹440,000 and an internal failure cost of ₹850,000. The company considers implementing a new quality control system, which would result in an annual prevention cost of ₹560,000 and an appraisal cost of ₹70,000. The new system is expected to reduce external and internal failure costs by ₹100,000 and ₹410,000 respectively. All other activities and costs will remain unchanged. | |
131 | a) What will be the total cost of quality (COQ) after implementing the new quality control system? | ₹ 15,90,000 |
132 | b) Based on the new system, should JK Ltd. implement the new quality control system? | Yes, it results in a cost saving. |
133 | Case Study: ABC Ltd. implemented Just-in-Time (JIT) inventory management. The following changes were observed post implementation: Reduction in inventory holding costs by 30% Increase in on-time delivery from 85% to 95% Decrease in production lead time by 40% Improvement in product quality, reducing defects by 20% | |
134 | a) What was the initial inventory holding cost if it was reduced by ₹60,000 after a 30% reduction? | ₹ 2,00,000 |
135 | b) What is the new on-time delivery rate after JIT implementation? | 85% |
136 | c) If the initial production lead time was 10 days, what is the new lead time after a 40% reduction? | 6 days |
137 | d) If the defect rate was initially 5%, what is the new defect rate after a 20% improvement? | 4% |
138 | Case Study: DEF Manufacturing has decided to implement Just-in-Time (JIT) inventory management to streamline their production process and reduce costs. Before implementing JIT, the company held an average inventory worth ₹500,000. Post-implementation, several changes were observed: Inventory holding costs reduced by 25% Production lead time decreased from 12 days to 7 days On-time delivery rate improved from 80% to 92% The defect rate decreased from 6% to 3% | |
139 | a) What is the amount of reduction in inventory holding costs post-JIT implementation? | ₹ 1,25,000 |
140 | b) What is the new inventory holding cost after the reduction? | ₹ 3,75,000 |
141 | c) By how many days did the production lead time decrease after implementing JIT? | 5 days |
142 | d) What is the percentage improvement in the on-time delivery rate? | 12% |
143 | e) What is the percentage decrease in the defect rate? | 3% |
144 | Which of the following best describes blockchain technology? | A system that records public transactions, or blocks, in multiple records known as chains, linked by peer- to-peer connections. |
145 | Sigma Cast & Pig Moulder (SC&PM) Limited has the following financial details: Working Capital: ₹4,200 crores Total Assets: ₹3,500 crores Retained Earnings: ₹800 crores EBIT: ₹6,500 crores Market Value of Equity: ₹7,000 crores Total Liabilities: ₹5,000 crores Sales: ₹8,300 crores Calculate the Altman Z-Score for SC&PM Limited.(manuacturing) | 11.097 |
146 | How many main dimensions does Argenti’s A-Score model include? | Three |
147 | In the Triple Bottom Line framework, which aspect would NOT be reported under the “People” bottom line? | Net income |
148 | The number of inpatient hospital deaths decreased 8% from 776 in 2022 to 715 in 2023. This metric falls under which bottom line? | Social (People) |
149 | Case Study: A company, EcoMinds Ltd., has undertaken several initiatives towards sustainability. The company’s operations impact the environment and society and are focused on long-term economic viability. | |
150 | a) Which of the following is an example of the “Planet” bottom line in the Triple Bottom Line framework? | Implementing a recycling program for waste materials |
151 | b) Which metric would be most relevant to the “”People”” bottom line in the Triple Bottom Line framework? a) Net profit margin b) Employee turnover rate c) Energy consumption d) Return on investment (ROI) | Employee turnover rate |
152 | c) EcoMinds Ltd. reported the following initiatives: constructing a solar-powered warehouse and reducing plastic usage in packaging. Under which bottom line would these initiatives be classified? | Planet |
153 | d) What is the primary goal of the Triple Bottom Line framework? | Measuring a company’s performance in financial, social, and environmental terms |
154 | Case Study: Water Utilities Services (WUS) is involved in water distribution and water bottle operations. The company’s performance is evaluated using Economic Value Added (EVA) and the Return on Capital Employed (ROCE) set by the regulator at 7.00%. Data Provided: Revenue from Water Distribution Operation (WDO): ₹555 Crore Revenue from Water Bottle Operation (WBO): ₹186 Crore Operating Cost for WDO: ₹460 Crore Operating Cost for WBO: ₹119 Crore Finance Charges: ₹46 Crore Tax Rate: 30% Capital Employed as per Regulator for WDO: ₹1,558 Crore | |
155 | a) Calculate the Economic Value Added (EVA) for WUS | ₹5.98 Crore {EVA=NOPAT−(WACC×Capital Employed) NOPAT=Operating Profit−Tax} |
156 | b) Assess whether WUS complies with its acceptable ROCE level set by the regulator | No, ROCE is below 7.00% |
157 | c) Identify a method to improve WUS’s profitability. | Increase NOPAT or reduce capital employed |
158 | Case Study: Match the following: a) Task Environemnt in context of capability i.e., resources, core competences b) Culture, beliefs, and assumptions of the organisation c) Environment in context of competitors, markets,regulations, d) Stakeholders’ influence and expectations | a) Strengths and Weaknesses b) Vision and Values c) Opportunities and Threats d) Mission and Objectives |
159 | Performance pyramid called as SMART | – |
160 | Identify level of Bargaining price of buyer & Supplier | – |
161 | ROI: Suborganisation & relative RI: absolute | – |
162 | DLT (Distributed ledger technology) is a decentralized database with many members. The digital ledger’s data is extremely secure | – |
163 | MCQ related to ” Which is not covered under Hyper Disruptive Model” (SM page no. 5.29) | – |
164 | IT/IM Strategy not implemented due to which reason? | – |