Multiple Choice Questions (Unit-3)

1. The main purpose of a Quality Circle is to ____

(a) Solve workplace problems through teamwork
(b) Conduct financial audits
(c) Replace management
(d) Supervise marketing activities
Ans: (a) Solve workplace problems through teamwork
2. Quality Circles operate on the principle of ____
(a) Hierarchical control
(b) Employee participation and empowerment
(c) Autocratic leadership
(d) External consultancy
Ans: (b) Employee participation and empowerment
3. The concept of Quality Circles originated in ____
(a) USA
(b) Japan
(c) Germany
(d) India
Ans: (b) Japan
4. The founder of the Quality Circle concept is ____
(a) Kaoru Ishikawa
(b) W. Edwards Deming
(c) Joseph Juran
(d) F.W. Taylor
Ans: (a) Kaoru Ishikawa
5. A typical Quality Circle includes ____
(a) 5-10 members from the same department
(b) Only managers
(c) Outsiders and consultants
(d) Directors and shareholders
Ans: (a) 5-10 members from the same department
6. Quality Circles aim at ____
(a) Developing creativity and problem-solving skills
(b) Punishing poor performers
(c) Cutting salaries
(d) Reducing communication
Ans: (a) Developing creativity and problem-solving skills
7. The main outcome of a Quality Circle meeting is ____
(a) New rules
(b) Suggestions for improvement
(c) Promotions
 (d) Financial reports
Ans: (b) Suggestions for improvement
8. Which of these tools is often used in Quality Circles?
(a) Fishbone diagram
(b) Balance sheet
(c) SWOT matrix only
(d) Ledger book
Ans: (a) Fishbone diagram
9. Quality Circle activities enhance ____
(a) Motivation and teamwork
(b) Isolation among workers
(c) Political influence
(d) Financial accounting
Ans: (a) Motivation and teamwork
10. Quality Circles were first introduced in India at ____
(a) BHEL
(b) Tata Steel
(c) Indian Railways
(d) Hindustan Motors
Ans: (b) Tata Steel
11. The ultimate benefit of Quality Circles is ____
(a) Improved quality and productivity
(b) Higher bureaucracy
(c) Increased absenteeism
(d) Less employee involvement
Ans: (a) Improved quality and productivity
12. Quality Circles promote which management approach ____
(a) Bottom-up
(b) Top-down
(c) Centralized
(d) Bureaucratic
Ans: (a) Bottom-up
13. The term Kaizen means ____
(a) Continuous improvement
(b) Sudden innovation
(c) Large-scale change
(d) Temporary solution
Ans: (a) Continuous improvement
14. Kaizen is a concept developed in ____
(a) China
(b) Japan
(c) USA

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 (d) France
Ans: (b) Japan
15. The philosophy of Kaizen emphasizes ____
(a) Small improvements made regularly
(b) Major one-time reforms
(c) Only technology upgrades
(d) Top management control
Ans: (a) Small improvements made regularly
16. Which statement is TRUE about Kaizen?
(a) It depends only on expensive equipment
(b) It requires employee involvement at all levels
(c) It ignores small changes
(d) It is used only in manufacturing
Ans: (b) It requires employee involvement at all levels
17. The main goal of Kaizen is to ____
(a) Maintain current standards
(b) Achieve continuous betterment
(c) Increase cost
(d) Focus on individuals only
Ans: (b) Achieve continuous betterment
18. Which Japanese management practice is closely related to Kaizen?
(a) Just-in-Time (JIT)
(b) Benchmarking
(c) Outsourcing
(d) Downsizing
Ans: (a) Just-in-Time (JIT)
19. A good example of Kaizen is ____
(a) Re-arranging tools to save motion time
(b) Hiring more supervisors
(c) Conducting annual party
(d) Ignoring small defects
Ans: (a) Re-arranging tools to save motion time
20. Kaizen primarily depends on ____
(a) Continuous employee suggestions
(b) Large investments
(c) Expensive consultants
(d) High turnover
Ans: (a) Continuous employee suggestions
21. Which of the following is NOT a principle of Kaizen?
(a) Involve everyone
(b) Think improvement every day
(c) Blame employees for mistakes

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 (d) Eliminate waste
Ans: (c) Blame employees for mistakes
22. The PDCA cycle (Plan-Do-Check-Act) is often associated with ____
(a) Kaizen
(b) TQM
(c) Six Sigma
(d) Both A and B
Ans: (d) Both A and B
23. Six Sigma aims to ____
(a) Reduce defects and variation
(b) Increase wastage
(c) Limit employee participation
(d) Focus on hierarchy
Ans: (a) Reduce defects and variation
24. Six Sigma was developed by ____
(a) Motorola
(b) Toyota
(c) General Electric
(d) Ford
Ans: (a) Motorola
25. The statistical goal of Six Sigma is ____
(a) 3.4 defects per million opportunities
(b) 100 defects per million
(c) 99% accuracy
(d) Zero defects
Ans: (a) 3.4 defects per million opportunities
26. The term “Sigma” represents ____
(a) Standard deviation
(b) Mean value
(c) Frequency
(d) Total quality
Ans: (a) Standard deviation
27. The DMAIC cycle stands for ____
(a) Define, Measure, Analyze, Improve, Control
(b) Design, Manage, Apply, Implement, Control
(c) Direct, Motivate, Assess, Improve, Conclude
(d) Define, Monitor, Act, Integrate, Conclude
Ans: (a) Define, Measure, Analyze, Improve, Control
28. Six Sigma focuses on ____
(a) Data-driven decision-making
(b) Guesswork
(c) Top-level authority only

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 (d) Financial auditing
Ans: (a) Data-driven decision-making
29. In Six Sigma, Green Belts are ____
(a) Employees trained to support improvement projects
(b) Senior executives
(c) Accountants
(d) Temporary workers
Ans: (a) Employees trained to support improvement projects
30. Black Belts in Six Sigma are ____
(a) Team leaders and experts who mentor others
(b) New interns
(c) Managers of HR department
(d) Outsiders
Ans: (a) Team leaders and experts who mentor others
31. Master Black Belt refers to ____
(a) Person who leads Six Sigma program company-wide
(b) Marketing executive
(c) Junior trainee
(d) None of these
Ans: (a) Person who leads Six Sigma program company-wide
32. The main focus of Six Sigma is ____
(a) Customer satisfaction through defect prevention
(b) Product advertising
(c) Financial reporting
(d) Staff reduction
Ans: (a) Customer satisfaction through defect prevention
33. Six Sigma projects use which key tool?
(a) Statistical analysis
(b) Astrology
(c) Random guessing
(d) Marketing mix
Ans: (a) Statistical analysis
34. Which company popularized Six Sigma after Motorola?
(a) General Electric (GE)
(b) Toyota
(c) Sony
(d) Apple
Ans: (a) General Electric (GE)
35. In Six Sigma, process capability is measured in terms of ____
(a) Sigma levels
(b) Mean deviation
(c) Cost per unit

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 (d) Time only
Ans: (a) Sigma levels
36. The ultimate goal of Six Sigma is to achieve ____
(a) 99.99966% accuracy
(b) 80% efficiency
(c) Average quality
(d) Maximum supervision
Ans: (a) 99.99966% accuracy
37. TQM stands for ____
(a) Total Quality Management
(b) Technical Quality Measurement
(c) Team Quality Monitoring
(d) Total Quantity Management
Ans: (a) Total Quality Management
38. The key objective of TQM is ____
(a) Continuous improvement and customer satisfaction
(b) Cost cutting only
(c) Bureaucratic control
(d) Quick profit
Ans: (a) Continuous improvement and customer satisfaction
39. The foundation of TQM lies in ____
(a) Quality at every stage
(b) Inspection only
(c) Blaming workers
(d) Reducing production
Ans: (a) Quality at every stage
40. TQM requires participation of ____
(a) All employees
(b) Only managers
(c) Only production staff
(d) External consultants
Ans: (a) All employees
41. The famous 14 points of quality management were proposed by ____
(a) W. Edwards Deming
(b) Joseph Juran
(c) Kaoru Ishikawa
(d) Philip Crosby
Ans: (a) W. Edwards Deming
42. “Fitness for use” definition of quality was given by ____
(a) Juran
(b) Deming
(c) Taylor

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 (d) Crosby
Ans: (a) Juran
43. The “Zero Defect” concept was given by ____
(a) Philip Crosby
(b) Ishikawa
(c) Juran
(d) Deming
Ans: (a) Philip Crosby
44. The core principle of TQM is ____
(a) Doing things right the first time
(b) Reworking after errors
(c) Blaming others
(d) Ignoring feedback
Ans: (a) Doing things right the first time
45. TQM promotes ____
(a) Customer-driven organization
(b) Profit-driven only
(c) Technology-driven only
(d) Manager-driven
Ans: (a) Customer-driven organization
46. TQM emphasizes the use of ____
(a) Quality tools like Pareto chart, Histogram, Check Sheet
(b) Financial tools
(c) Advertising campaigns
(d) Stock analysis
Ans: (a) Quality tools like Pareto chart, Histogram, Check Sheet
47. Which of the following is NOT an element of TQM?
(a) Continuous improvement
(b) Employee participation
(c) Customer focus
(d) Rigid hierarchy
Ans: (d) Rigid hierarchy
48. The Plan-Do-Check-Act (PDCA) cycle is used in TQM for ____
(a) Continuous improvement
(b) Marketing
(c) Recruitment
(d) Financial planning
Ans: (a) Continuous improvement
49. Which of the following is a benefit of TQM?
(a) Improved morale and productivity
(b) More errors
(c) Reduced teamwork

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 (d) Lower customer satisfaction
Ans: (a) Improved morale and productivity
50. The ultimate aim of TQM is to achieve ____
(a) Long-term customer loyalty and organizational excellence
(b) Short-term gains
(c) Maximum supervision
(d) Minimum employee involvement
Ans: (a) Long-term customer loyalty and organizational excellence
51. The main purpose of 5S is to ____
(a) Increase sales
(b) Organize the workplace and improve efficiency
(c) Hire more workers
(d) Reduce salaries
Ans: (b) Organize the workplace and improve efficiency
52. 5S originated in which country?
(a) China
(b) USA
(c) Japan
(d) Germany
Ans: (c) Japan
53. In 5S, “Seiri” stands for ____
(a) Set in order
(b) Sort – remove unnecessary items
(c) Shine – clean the area
(d) Sustain – maintain standards
Ans: (b) Sort – remove unnecessary items
54. The second “S”, “Seiton” means ____
(a) Standardize
(b) Set things in order for easy access
(c) Shine the workplace
(d) Sustain improvements
Ans: (b) Set things in order for easy access
55. “Seiso” refers to ____
(a) Keeping the workplace neat and clean
(b) Sorting out materials
(c) Labeling items
(d) Conducting audits
Ans: (a) Keeping the workplace neat and clean
56. The fourth “S”, “Seiketsu” means ____
(a) Shining tools
(b) Standardizing procedures
(c) Sustaining improvements

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 (d) Sorting and discarding waste
Ans: (b) Standardizing procedures
57. The fifth “S”, “Shitsuke” means ____
(a) Sorting
(b) Discipline and sustaining the habit of 5S
(c) Supervising workers
(d) Scheduling production
Ans: (b) Discipline and sustaining the habit of 5S
58. The main benefit of 5S is ____
(a) Lower product quality
(b) Clean, safe and efficient workplace
(c) Increased paperwork
(d) Less teamwork
Ans: (b) Clean, safe and efficient workplace
59. Which of the following is NOT part of the 5S system?
(a) Seiri
(b) Seiso
(c) Shitsuke
(d) Six Sigma
Ans: (d) Six Sigma
60. The 5S method is most closely related to ____
(a) Lean manufacturing and continuous improvement
(b) Advertising strategy
(c) Finance and accounting
(d) Marketing management
Ans: (a) Lean manufacturing and continuous improvement
61. A red tag is commonly used during which 5S stage?
(a) Seiketsu
(b) Seiri (Sorting)
(c) Seiso
(d) Shitsuke
Ans: (b) Seiri (Sorting)
62. The goal of “Set in Order” is to ____
(a) Arrange items so they are easy to find and return
(b) Store everything randomly
(c) Remove all tools from the area
(d) Paint the walls
Ans: (a) Arrange items so they are easy to find and return
63. Regular cleaning, inspection and maintenance belong to which 5S?
(a) Seiso (Shine)
(b) Seiketsu (Standardize)
(c) Shitsuke (Sustain)

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 (d) Seiri (Sort)
Ans: (a) Seiso (Shine)
64. 5S helps to eliminate which of the following wastes?
(a) Overproduction
(b) Unnecessary motion and time waste
(c) Marketing costs
(d) None of these
Ans: (b) Unnecessary motion and time waste
65. The ultimate goal of 5S is to ____
(a) Create a culture of discipline and continuous improvement
(b) Maintain paperwork
(c) Focus only on profits
(d) Reduce product design
Ans: (a) Create a culture of discipline and continuous improvement
66. The word “Kanban” is derived from which language?
(a) English
(b) Japanese
(c) Chinese
(d) Korean
Ans: (b) Japanese
67. The meaning of “Kanban” is ____
(a) Visual signal or card
(b) Machine maintenance
(c) Work scheduling software
(d) Raw material storage
Ans: (a) Visual signal or card
68. The Kanban system was first developed by ____
(a) Motorola
(b) Toyota Motor Corporation
(c) Ford Motor Company
(d) General Electric
Ans: (b) Toyota Motor Corporation
69. Kanban is mainly used in which production system?
(a) Just-in-Time (JIT)
(b) Mass production
(c) Batch production
(d) Project-based production
Ans: (a) Just-in-Time (JIT)
70. The main purpose of a Kanban system is to ____
(a) Increase inventory levels
(b) Control production and material flow visually
(c) Increase paperwork

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 (d) Delay production
Ans: (b) Control production and material flow visually
71. In the Kanban method, each card represents ____
(a) A maintenance report
(b) A production order or part requirement
(c) A customer complaint
(d) A financial record
Ans: (b) A production order or part requirement
72. Kanban helps in achieving which of the following?
(a) Overproduction
(b) Continuous flow and reduced waste
(c) Maximum storage
(d) Increased downtime
Ans: (b) Continuous flow and reduced waste
73. Which of the following best describes the Kanban principle?
(a) Push system of production
(b) Pull system of production
(c) Mixed system
(d) Random system
Ans: (b) Pull system of production
74. In a pull-based Kanban system ____
(a) Work is started only when there is demand from the next process
(b) Production continues regardless of demand
(c) Raw materials are ordered in bulk
(d) Workers guess production levels
Ans: (a) Work is started only when there is demand from the next process
75. The two-card Kanban system consists of ____
(a) Transport Kanban and Production Kanban
(b) Delivery Kanban and Finance Kanban
(c) Planning Kanban and Cost Kanban
(d) Service Kanban and Product Kanban
Ans: (a) Transport Kanban and Production Kanban
76. Kanban is mainly used to ____
(a) Signal the need to move materials or produce parts
(b) Replace supervisors
(c) Increase inspection frequency
(d) Eliminate teamwork
Ans: (a) Signal the need to move materials or produce parts
77. Which of the following is NOT an advantage of Kanban?
(a) Reduces inventory
(b) Improves workflow
(c) Increases lead time

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 (d) Promotes flexibility
Ans: (c) Increases lead time
78. Kanban cards can be replaced by which modern equivalent?
(a) Digital dashboards or software signals
(b) Printed posters
(c) Telephone calls
(d) Emails only
Ans: (a) Digital dashboards or software signals
79. The Kanban system supports which key Lean concept?
(a) Continuous improvement and waste reduction
(b) Increasing buffer stock
(c) Hiring more managers
(d) Making forecasts only
Ans: (a) Continuous improvement and waste reduction
80. The main goal of Kanban in production is to ____
(a) Produce only what is needed, when it is needed
(b) Produce maximum quantity regardless of demand
(c) Stop production frequently
(d) Store large quantities of finished goods
Ans: (a) Produce only what is needed, when it is needed
81. TPM stands for ____
(a) Total Product Maintenance
(b) Total Productive Maintenance
(c) Total Process Management
(d) Total Preventive Management
Ans: (b) Total Productive Maintenance
82. The main objective of TPM is to ____
(a) Increase machine breakdowns
(b) Maximize equipment efficiency and eliminate losses
(c) Increase supervision
(d) Reduce operator involvement
Ans: (b) Maximize equipment efficiency and eliminate losses
83. TPM was first introduced in ____
(a) USA
(b) Germany
(c) Japan
(d) India
Ans: (c) Japan
84. TPM originated from which company?
(a) Toyota
(b) Nippon Denso (a Toyota group company)
(c) Ford Motors

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 (d) Honda
Ans: (b) Nippon Denso (a Toyota group company)
85. TPM is a part of which management philosophy?
(a) Lean Manufacturing and Total Quality Management (TQM)
(b) Financial Management
(c) Marketing Management
(d) Personnel Management
Ans: (a) Lean Manufacturing and Total Quality Management (TQM)
86. The ultimate goal of TPM is to achieve ____
(a) Zero accidents, zero defects and zero breakdowns
(b) 50% reduction in production
(c) Higher machine downtime
(d) Overproduction
Ans: (a) Zero accidents, zero defects and zero breakdowns
87. The key concept of TPM is ____
(a) Maintenance is the job of only the maintenance department
(b) Every employee is responsible for maintenance and care of equipment
(c) Only engineers maintain equipment
(d) Maintenance after failure only
Ans: (b) Every employee is responsible for maintenance and care of equipment
88. TPM focuses on improving ____
(a) Overall Equipment Effectiveness (OEE)
(b) Financial performance
(c) Worker absenteeism
(d) Marketing promotion
Ans: (a) Overall Equipment Effectiveness (OEE)
89. TPM emphasizes which type of maintenance?
(a) Breakdown maintenance
(b) Preventive and Autonomous Maintenance
(c) Emergency maintenance
(d) External maintenance only
Ans: (b) Preventive and Autonomous Maintenance
90. The TPM concept includes how many major pillars?
(a) 3
(b) 5
(c) 8
(d) 10
Ans: (c) 8
91. Which of the following is NOT one of the 8 pillars of TPM?
(a) Autonomous Maintenance
(b) Focused Improvement
(c) Product Design

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 (d) Education and Training
Ans: (c) Product Design
92. The first pillar of TPM, “Autonomous Maintenance”, means ____
(a) Operators clean, inspect and maintain their own machines
(b) Only maintenance staff clean machines
(c) Maintenance is ignored
(d) Outsiders repair machines
Ans: (a) Operators clean, inspect and maintain their own machines
93. Which of the following is a key benefit of TPM?
(a) Reduced downtime and improved productivity
(b) Increased waste
(c) Higher defect rate
(d) More accidents
Ans: (a) Reduced downtime and improved productivity
94. The formula for Overall Equipment Effectiveness (OEE) involves ____
(a) Availability × Performance × Quality
(b) Quantity × Time × Speed
(c) Cost × Profit × Turnover
(d) Safety × Speed × Staff
Ans: (a) Availability × Performance × Quality
95. TPM aims to create a work culture of ____
(a) Reactive maintenance
(b) Proactive participation and ownership by all employees
(c) Blaming maintenance staff
(d) Minimal operator training
Ans: (b) Proactive participation and ownership by all employees
96. The main objective of Lean Manufacturing is to ____
(a) Reduce workforce
(b) Eliminate waste and improve value to the customer
(c) Increase paperwork
(d) Expand inventory
Ans: (b) Eliminate waste and improve value to the customer
97. Lean Manufacturing originated from which company?
(a) Ford Motors
(b) Toyota Motor Corporation
(c) General Electric
(d) Motorola
Ans: (b) Toyota Motor Corporation
98. The Toyota Production System (TPS) is the foundation of ____
(a) Total Quality Management
(b) Lean Manufacturing
(c) Six Sigma

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 (d) Kaizen only
Ans: (b) Lean Manufacturing
99. The Japanese term “Muda” refers to ____
(a) Improvement
(b) Waste or non-value-added activity
(c) Speed
(d) Quality control
Ans: (b) Waste or non-value-added activity
100. How many types of waste (Muda) are identified in Lean?
(a) 3
(b) 5
(c) 7
(d) 9
Ans: (c) 7
101. Which of the following is NOT one of the seven wastes in Lean?
(a) Overproduction
(b) Waiting time
(c) Product design
(d) Defects
Ans: (c) Product design
102. The Lean principle that focuses on “producing only what is needed when it is
needed” is known as ____
(a) JIT (Just-in-Time)
(b) TQM
(c) MRP
(d) ERP
Ans: (a) JIT (Just-in-Time)
103. The goal of Lean is to ____
(a) Maximize value and minimize waste
(b) Increase working hours
(c) Increase costs
(d) Hire more managers
Ans: (a) Maximize value and minimize waste
104. Which of the following is an example of “Overproduction” waste?
(a) Producing extra units before customer demand
(b) Cleaning the machine daily
(c) Inspecting the product for defects
(d) Transporting finished goods
Ans: (a) Producing extra units before customer demand
105. The 5S system (Sort, Set in order, Shine, Standardize, Sustain) supports Lean by
____
(a) Maintaining a clean, organized and efficient workplace
(b) Increasing storage space
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 (c) Adding paperwork
(d) Reducing employee motivation
Ans: (a) Maintaining a clean, organized and efficient workplace
106. “Kaizen” in Lean Manufacturing means ____
(a) Continuous small improvements
(b) Large one-time changes
(c) Employee termination
(d) External outsourcing
Ans: (a) Continuous small improvements
107. Which of the following tools is used to map the flow of materials and information
in Lean?
(a) Value Stream Mapping (VSM)
(b) PERT Chart
(c) Gantt Chart
(d) SWOT Analysis
Ans: (a) Value Stream Mapping (VSM)
108. Kanban in Lean Manufacturing is a ____
(a) Visual signal system to control production and inventory
(b) Financial control system
(c) Marketing plan
(d) Quality inspection tool
Ans: (a) Visual signal system to control production and inventory
109. Which Lean concept focuses on reducing setup changeover time?
(a) SMED (Single Minute Exchange of Dies)
(b) TQM
(c) TPM
(d) OEE
Ans: (a) SMED (Single Minute Exchange of Dies)
110. The “Pull System” in Lean means ____
(a) Producing only when the next process or customer needs it
(b) Producing in advance
(c) Pushing all products to the next stage
(d) Ignoring demand
Ans: (a) Producing only when the next process or customer needs it
111. “Poka-Yoke” is a Lean tool used for ____
(a) Mistake-proofing to prevent errors
(b) Increasing machine speed
(c) Product promotion
(d) Hiring employees
Ans: (a) Mistake-proofing to prevent errors
112. The term “Jidoka” refers to ____
(a) Automation with a human touch – stopping production when defects occur
(b) Continuous improvement
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 (c) Reducing human involvement
(d) Increasing automation only
Ans: (a) Automation with a human touch – stopping production when defects occur
113. “Takt Time” in Lean Manufacturing represents ____
(a) The rate at which products must be made to meet customer demand
(b) The total lead time
(c) Break time of workers
(d) Setup time of machines
Ans: (a) The rate at which products must be made to meet customer demand
114. The Lean metric “Lead Time” refers to ____
(a) Time taken to hire an employee
(b) Total time from order to delivery to the customer
(c) Machine idle time
(d) Training duration
Ans: (b) Total time from order to delivery to the customer
115. The ultimate goal of Lean Manufacturing is to achieve ____
(a) Customer satisfaction through waste-free, efficient operations
(b) Maximum paperwork and inspection
(c) Overproduction and stockpiling
(d) Minimum automation
Ans: (a) Customer satisfaction through waste-free, efficient operations
116. The term “ISO” stands for ____
(a) International Service Organization
(b) International Standards Organization
(c) International Organization for Standardization
(d) Industrial Standards Office
Ans: (c) International Organization for Standardization
117. The main purpose of ISO standards is to ____
(a) Increase product prices
(b) Ensure quality, safety and efficiency of products and services
(c) Control employees
(d) Promote advertising
Ans: (b) Ensure quality, safety and efficiency of products and services
118. ISO standards are developed and published by ____
(a) United Nations
(b) International Organization for Standardization (Geneva, Switzerland)
(c) World Trade Organization
(d) World Bank
Ans: (b) International Organization for Standardization (Geneva, Switzerland)
119. The ISO organization was established in the year ____
(a) 1945
(b) 1947
(c) 1950
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 (d) 1965
Ans: (b) 1947
120. ISO standards are applied to ____
(a) Only large industries
(b) All types of organizations – small, medium or large
(c) Only manufacturing companies
(d) Only government departments
Ans: (b) All types of organizations – small, medium or large
121. The primary aim of Quality Standards is to ____
(a) Ensure uniformity, reliability and customer satisfaction
(b) Increase paperwork
(c) Limit innovation
(d) Reduce employee skills
Ans: (a) Ensure uniformity, reliability and customer satisfaction
122. ISO 9001 relates to which aspect of management?
(a) Environmental management
(b) Quality management system (QMS)
(c) Financial management
(d) Safety management
Ans: (b) Quality management system (QMS)
123. A company certified under ISO 9001 must focus on ____
(a) Customer satisfaction and continuous improvement
(b) Advertising and sales promotion
(c) Only production volume
(d) Employee layoffs
Ans: (a) Customer satisfaction and continuous improvement
124. The latest version of ISO 9001 standard (as of 2025) is ____
(a) ISO 9001:2008
(b) ISO 9001:2015
(c) ISO 9001:2020
(d) ISO 9001:2023
Ans: (b) ISO 9001:2015
125. The benefit of implementing ISO quality standards is ____
(a) Global recognition, better efficiency and improved customer confidence
(b) Higher taxation
(c) Increased cost only
(d) Reduction in safety
Ans: (a) Global recognition, better efficiency and improved customer confidence
126. ISO 9001:2015 is related to ____
(a) Environmental management
(b) Quality Management System (QMS)
(c) Financial auditing

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 (d) Safety standards
Ans: (b) Quality Management System (QMS)
127. The primary goal of ISO 9001:2015 is to ____
(a) Increase product cost
(b) Ensure consistent quality and customer satisfaction
(c) Promote marketing
(d) Increase paperwork
Ans: (b) Ensure consistent quality and customer satisfaction
128. ISO 9001 is developed and published by ____
(a) United Nations
(b) International Organization for Standardization (ISO), Geneva
(c) World Bank
(d) Indian Bureau of Standards
Ans: (b) International Organization for Standardization (ISO), Geneva
129. ISO 9001:2016 focuses on ____
(a) Customer satisfaction and continual improvement
(b) Increasing workforce
(c) Government regulations
(d) Inventory control only
Ans: (a) Customer satisfaction and continual improvement
130. The “9001” in ISO 9001:2016 refers to ____
(a) A specific family of quality management standards
(b) Energy efficiency code
(c) Safety policy number
(d) Industry license
Ans: (a) A specific family of quality management standards
131. Quality Management Principles (QMPs) in ISO 9001:2016 include all EXCEPT
____
(a) Customer focus
(b) Leadership
(c) Supplier monopoly
(d) Continuous improvement
Ans: (c) Supplier monopoly
132. ISO 9001:2016 replaced which earlier version?
(a) ISO 9001:2000
(b) ISO 9001:2008
(c) ISO 9001:2012
(d) ISO 9001:2014
Ans: (b) ISO 9001:2008
133. The key clause in ISO 9001:2016 that deals with understanding organizational
context is ____
(a) Clause 4
(b) Clause 5
19
 (c) Clause 7
(d) Clause 9
Ans: (a) Clause 4
134. Clause 5 of ISO 9001:2016 mainly deals with ____
(a) Leadership and commitment
(b) Planning
(c) Support and resources
(d) Operation
Ans: (a) Leadership and commitment
135. The term “PDCA cycle” in ISO 9001:2016 stands for ____
(a) Plan, Do, Check, Act
(b) Prepare, Deliver, Control, Approve
(c) Produce, Develop, Create, Apply
(d) Plan, Design, Communicate, Act
Ans: (a) Plan, Do, Check, Act
136. Which clause in ISO 9001:2016 covers “Performance Evaluation”?
(a) Clause 5
(b) Clause 7
(c) Clause 9
(d) Clause 10
Ans: (c) Clause 9
137. The principle “Evidence-Based Decision Making” in ISO 9001:2016 means ____
(a) Decisions should be based on data and analysis
(b) Decisions should be emotional
(c) Decisions should follow hierarchy only
(d) Decisions should be delayed
Ans: (a) Decisions should be based on data and analysis
138. ISO 9001:2016 is applicable to ____
(a) Only manufacturing companies
(b) All types of organizations, regardless of size or sector
(c) Only government offices
(d) Only large MNCs
Ans: (b) All types of organizations, regardless of size or sector
139. The main benefit of ISO 9001:2016 certification is ____
(a) Increased customer trust and global recognition
(b) More documentation
(c) Higher taxes
(d) Less process control
Ans: (a) Increased customer trust and global recognition
140. Continual improvement in ISO 9001:2016 is ensured through ____
(a) Monitoring, analysis and corrective action
(b) Only annual review
(c) Random changes
20
 (d) Employee turnover
Ans: (a) Monitoring, analysis and corrective action
141. ISO 14000 series standards relate to ____
(a) Quality management
(b) Environmental management
(c) Safety management
(d) Financial auditing
Ans: (b) Environmental management
142. The main objective of ISO 14000 is to ____
(a) Increase production
(b) Reduce environmental impact and promote sustainable practices
(c) Promote advertising
(d) Regulate product pricing
Ans: (b) Reduce environmental impact and promote sustainable practices
143. The ISO 14000 family provides guidelines for ____
(a) Environmental Management Systems (EMS)
(b) Human Resource Development
(c) Financial Accounting
(d) Marketing Strategy
Ans: (a) Environmental Management Systems (EMS)
144. ISO 14001 is the standard that specifies ____
(a) Requirements for an Environmental Management System
(b) Occupational Safety Procedures
(c) Quality Control Guidelines
(d) Product Design Standards
Ans: (a) Requirements for an Environmental Management System
145. ISO 14000 standards are issued by ____
(a) World Bank
(b) International Organization for Standardization (ISO), Geneva
(c) United Nations
(d) Bureau of Indian Standards
Ans: (b) International Organization for Standardization (ISO), Geneva
146. The primary benefit of ISO 14000 certification is ____
(a) Better environmental performance and compliance with legal requirements
(b) Higher taxation
(c) Reduced employee involvement
(d) Increased waste
Ans: (a) Better environmental performance and compliance with legal requirements
147. ISO 14000 focuses mainly on ____
(a) Managing processes that affect the environment
(b) Advertising new products
(c) Increasing production speed

21
 (d) Controlling employee behavior
Ans: (a) Managing processes that affect the environment
148. Which of the following is NOT a benefit of ISO 14000?
(a) Reduction in pollution and waste
(b) Improved company reputation
(c) Higher energy consumption
(d) Legal compliance
Ans: (c) Higher energy consumption
149. The core philosophy of ISO 14000 is based on ____
(a) Continuous environmental improvement and prevention of pollution
(b) Short-term profits
(c) Marketing and branding
(d) Financial investment growth
Ans: (a) Continuous environmental improvement and prevention of pollution
150. ISO 14000 standards apply to ____
(a) Only large industries
(b) All types and sizes of organizations
(c) Government organizations only
(d) Chemical industries only
Ans: (b) All types and sizes of organizations
151. The PDCA (Plan-Do-Check-Act) cycle used in ISO 14000 helps in ____
(a) Continuous improvement of environmental performance
(b) Increasing paperwork
(c) Reducing training needs
(d) Delaying projects
Ans: (a) Continuous improvement of environmental performance
152. Which of the following is an example of ISO 14000 implementation?
(a) Recycling industrial waste and reducing emissions
(b) Increasing packaging waste
(c) Ignoring environmental laws
(d) Expanding factory emissions
Ans: (a) Recycling industrial waste and reducing emissions
153. OSHA stands for ____
(a) Occupational Safety and Health Administration
(b) Office of Safety and Health Association
(c) Occupational Service and Human Authority
(d) Organization of Safety and Health Agencies
Ans: (a) Occupational Safety and Health Administration
154. The main purpose of OSHA is to ____
(a) Promote industrial production
(b) Ensure safe and healthy working conditions for employees
(c) Manage business profits

22
 (d) Reduce working hours
Ans: (b) Ensure safe and healthy working conditions for employees
155. OSHA was established in which year?
(a) 1969
(b) 1970
(c) 1975
(d) 1980
Ans: (b) 1970
156. OSHA functions under which U.S. government department?
(a) Department of Commerce
(b) Department of Labor
(c) Department of Finance
(d) Department of Health and Human Services
Ans: (b) Department of Labor
157. The OSHA Act of 1970 gives employees the right to ____
(a) Higher wages
(b) Safe workplace and freedom to report hazards without fear
(c) Flexible working hours
(d) More vacations
Ans: (b) Safe workplace and freedom to report hazards without fear
158. The OSHA 2020 standards emphasize ____
(a) COVID-19 workplace safety and health guidelines
(b) Product marketing regulations
(c) Environmental management
(d) Tax reforms
Ans: (a) COVID-19 workplace safety and health guidelines
159. Under OSHA, employers are responsible for ____
(a) Providing a workplace free from recognized hazards
(b) Deciding employees’ salaries
(c) Handling only production tasks
(d) Promoting tourism
Ans: (a) Providing a workplace free from recognized hazards
160. OSHA inspections may occur ____
(a) Only once in 10 years
(b) Without advance notice, based on complaints or accidents
(c) Only after management approval
(d) Only during office hours
Ans: (b) Without advance notice, based on complaints or accidents
161. The OSHA 2020 guidelines require employers to ____
(a) Maintain proper ventilation, PPE use and social distancing during pandemics
(b) Increase working hours
(c) Cancel safety training
(d) Ignore hazard reports
23
 Ans: (a) Maintain proper ventilation, PPE use and social distancing during
pandemics
162. The ultimate aim of OSHA is to ____
(a) Prevent workplace injuries, illnesses and deaths
(b) Increase factory output
(c) Enforce environmental laws
(d) Reduce salaries
Ans: (a) Prevent workplace injuries, illnesses and deaths
163. ERP stands for ____
(a) Enterprise Resource Planning
(b) Enterprise Retail Program
(c) Electronic Resource Platform
(d) Enterprise Record Processing
Ans: (a) Enterprise Resource Planning
164. The main objective of ERP is to ____
(a) Automate payroll only
(b) Integrate all business functions into a single system
(c) Control only production activities
(d) Reduce employee count
Ans: (b) Integrate all business functions into a single system
165. ERP systems help organizations by ____
(a) Managing isolated data
(b) Integrating information across departments like finance, HR and production
(c) Increasing paperwork
(d) Restricting communication
Ans: (b) Integrating information across departments like finance, HR and
production
166. ERP integrates which of the following business functions?
(a) Finance and accounting
(b) Human resources
(c) Production and inventory
(d) All of the above
Ans: (d) All of the above
167. One of the key advantages of ERP is ____
(a) Real-time data sharing and decision-making
(b) Duplication of records
(c) Lack of coordination
(d) Increased manual work
Ans: (a) Real-time data sharing and decision-making
168. The first generation of ERP systems evolved from ____
(a) MRP (Material Requirements Planning) and MRP II
(b) CRM systems
(c) MIS reports
24
 (d) Financial accounting packages
Ans: (a) MRP (Material Requirements Planning) and MRP II
169. Which of the following is NOT a characteristic of ERP?
(a) Integrated database
(b) Modular structure
(c) Manual data entry only
(d) Real-time processing
Ans: (c) Manual data entry only
170. ERP is mainly used to ____
(a) Enhance coordination between departments
(b) Maintain isolated records
(c) Focus on a single department
(d) Replace computers
Ans: (a) Enhance coordination between departments
171. Which of the following is a major vendor of ERP software?
(a) SAP
(b) Adobe
(c) Facebook
(d) Google
Ans: (a) SAP
172. Examples of popular ERP software include ____
(a) SAP, Oracle, Microsoft Dynamics
(b) Instagram, Twitter, WhatsApp
(c) Canva, Zoom, YouTube
(d) Excel, PowerPoint, Word
Ans: (a) SAP, Oracle, Microsoft Dynamics
173. One major challenge in ERP implementation is ____
(a) High cost and employee resistance to change
(b) Lack of data
(c) Too much automation
(d) Low internet speed
Ans: (a) High cost and employee resistance to change
174. The main benefit of implementing ERP in organizations is ____
(a) Better resource utilization, transparency and efficiency
(b) Increased manual workload
(c) Higher departmental conflicts
(d) Data duplication
Ans: (a) Better resource utilization, transparency and efficiency
175. Service quality refers to ____
(a) The cost of production
(b) The degree to which a service meets or exceeds customer expectations
(c) The number of employees in a company

25
 (d) The physical size of a business
Ans: (b) The degree to which a service meets or exceeds customer expectations
176. The most widely used model to measure service quality is ____
(a) SERVQUAL Model
(b) BCG Matrix
(c) SWOT Model
(d) Maslow Model
Ans: (a) SERVQUAL Model
177. SERVQUAL Model was developed by ____
(a) Philip Kotler
(b) Parasuraman, Zeithaml and Berry
(c) Kaoru Ishikawa
(d) W. Edwards Deming
Ans: (b) Parasuraman, Zeithaml and Berry
178. Which of the following is NOT one of the five dimensions of service quality in the
SERVQUAL model?
(a) Reliability
(b) Responsiveness
(c) Tangibles
(d) Profitability
Ans: (d) Profitability
179. The five dimensions of service quality are ____
(a) Reliability, Assurance, Tangibles, Empathy and Responsiveness
(b) Planning, Organizing, Staffing, Directing, Controlling
(c) Time, Cost, Quality, Quantity, Speed
(d) Motivation, Leadership, Communication, Vision, Innovation
Ans: (a) Reliability, Assurance, Tangibles, Empathy and Responsiveness
180. Customer satisfaction can be defined as ____
(a) A customer’s feeling when service performance matches or exceeds expectations
(b) The number of customers in a company
(c) The company’s profit margin
(d) The cost of production
Ans: (a) A customer’s feeling when service performance matches or exceeds
expectations
181. Which factor has the greatest influence on customer satisfaction?
(a) Service quality and employee behavior
(b) Advertisement
(c) Product packaging
(d) Price discounts alone
Ans: (a) Service quality and employee behavior
182. A dissatisfied customer is most likely to ____
(a) Recommend the service to others
(b) Switch to a competitor and share negative feedback
26
 (c) Increase company profits
(d) Ignore service experience
Ans: (b) Switch to a competitor and share negative feedback
183. “Servicescape” refers to ____
(a) The physical environment in which a service is delivered
(b) Online marketing of products
(c) A landscape design company
(d) Employee turnover rate
Ans: (a) The physical environment in which a service is delivered
184. Examples of elements in a “Servicescape” include ____
(a) Lighting, layout, color, signage and music in a service setting
(b) Sales reports and graphs
(c) Staff salaries
(d) Company policies only
Ans: (a) Lighting, layout, color, signage and music in a service setting
185. The purpose of designing an effective Servicescape is to ____
(a) Influence customer perception, comfort and satisfaction
(b) Increase product storage
(c) Reduce employee training
(d) Promote financial auditing
Ans: (a) Influence customer perception, comfort and satisfaction
186. The relationship between service quality and customer satisfaction is ____
(a) Direct—higher service quality leads to greater satisfaction
(b) Inverse—higher quality reduces satisfaction
(c) Unrelated
(d) Based only on price
Ans: (a) Direct—higher service quality leads to greater satisfaction

27
Multiple Choice Questions (Unit-4)
1. Marketing Management mainly involves ____
(a) Only selling products
(b) Planning, organizing, directing and controlling marketing activities
(c) Managing only finance and production
(d) Delivering services without profit
Ans: (b) Planning, organizing, directing and controlling marketing activities
2. The main aim of marketing management is to ____
(a) Increase costs
(b) Satisfy customer needs and achieve business goals
(c) Produce as much as possible without demand
(d) Focus only on pricing
Ans: (b) Satisfy customer needs and achieve business goals
3. Who defined marketing management as “the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services”?
(a) Peter Drucker
(b) Philip Kotler
(c) Henry Fayol
(d) F.W. Taylor
Ans: (b) Philip Kotler
4. According to Stanton, marketing management involves ____
(a) Only advertising and sales
(b) Planning, organizing, directing and controlling exchange activities
(c) Financial decision-making
(d) Human resource management
Ans: (b) Planning, organizing, directing and controlling exchange activities
5. Marketing management connects the company with ____
(a) The government
(b) The suppliers
(c) The customers
(d) The employees only
Ans: (c) The customers
6. Marketing management focuses on building ____
(a) Machinery
(b) Strong customer relationships
(c) Employee unions
(d) Government ties
Ans: (b) Strong customer relationships
7. In simple terms, marketing management means ____
(a) Managing only advertisements
(b) Managing all marketing activities for business success
28
 (c) Controlling employee attendance
(d) Creating only product designs
Ans: (b) Managing all marketing activities for business success
8. The heart of business success, according to marketing management, is ____
(a) Production
(b) Marketing
(c) Finance
(d) Accounting
Ans: (b) Marketing
9. The first step in effective marketing management is ____
(a) Fixing the product
(b) Identifying customer needs
(c) Advertising
(d) Recruiting employees
Ans: (b) Identifying customer needs
10. Marketing management helps in creating demand through ____
(a) Promotions and advertising
(b) Cost cutting
(c) Employee training
(d) Office maintenance
Ans: (a) Promotions and advertising
11. Marketing management encourages companies to develop ____
(a) Outdated products
(b) New and innovative products
(c) Only cheap products
(d) Products with no packaging
Ans: (b) New and innovative products
12. Efficient distribution in marketing ensures products reach ____
(a) Suppliers on time
(b) Customers at the right place and right time
(c) Government agencies
(d) Competitors
Ans: (b) Customers at the right place and right time
13. Customer satisfaction and loyalty are achieved by ____
(a) Ignoring customer feedback
(b) Overcharging customers
(c) Providing value and good relationships
(d) Avoiding service after sales
Ans: (c) Providing value and good relationships
14. Marketing helps in facing competition by ____
(a) Copying competitors’ products
(b) Studying the market and developing better strategies
(c) Ignoring customer needs
29
 (d) Reducing product quality
Ans: (b) Studying the market and developing better strategies
15. Which of the following is a contribution of marketing to the economy?
(a) Job creation and trade growth
(b) Reduction in innovation
(c) Lower employment
(d) Limiting product variety
Ans: (a) Job creation and trade growth
16. Marketing management helps in efficient use of resources by ____
(a) Focusing only on profitable markets
(b) Ignoring customer feedback
(c) Using manpower randomly
(d) Producing more than required
Ans: (a) Focusing only on profitable markets
17. Brand image building through marketing means ____
(a) Creating a negative reputation
(b) Building a positive public perception
(c) Focusing only on pricing
(d) Avoiding advertisements
Ans: (b) Building a positive public perception
18. The 7Ps model was expanded from the original ____
(a) 3 Ps
(b) 4 Ps
(c) 5 Ps
(d) 6 Ps
Ans: (b) 4 Ps
19. Which of the following is NOT part of the marketing mix?
(a) Product
(b) People
(c) Promotion
(d) Partnership
Ans: (d) Partnership
20. “Product” in marketing mix refers to ____
(a) Advertising methods
(b) Goods or services offered to customers
(c) Company profit goals
(d) Employee performance
Ans: (b) Goods or services offered to customers
21. “Price” in the 7 Ps represents ____
(a) Company investment
(b) Amount customers pay for the product
(c) Employee salary

30
 (d) Factory cost only
Ans: (b) Amount customers pay for the product
22. “Place” in marketing refers to ____
(a) Location where products are stored only
(b) Distribution channels used to reach customers
(c) Only retail shops
(d) Manufacturing plants
Ans: (b) Distribution channels used to reach customers
23. Which element of the 7 Ps involves advertising, sales promotion and public relations?
(a) Product
(b) Promotion
(c) Process
(d) People
Ans: (b) Promotion
24. “People” in the marketing mix includes ____
(a) Only customers
(b) Employees, sales staff and service providers
(c) Only management
(d) Suppliers
Ans: (b) Employees, sales staff and service providers
25. “Physical Evidence” in marketing refers to ____
(a) Tangible elements that represent service quality
(b) Company budget
(c) Human behavior
(d) Legal proof
Ans: (a) Tangible elements that represent service quality
26. In marketing, “needs” are defined as ____
(a) Things that people desire for luxury
(b) Basic human requirements for survival and well-being
(c) Cultural preferences
(d) Marketing products sold by companies
Ans: (b) Basic human requirements for survival and well-being
27. Which of the following is NOT a basic human need?
(a) Food
(b) Shelter
(c) Respect
(d) Television
Ans: (d) Television
28. Wants are best described as ____
(a) The same for all humans
(b) Specific preferences influenced by culture and personality
(c) Completely independent of needs

31
 (d) Fixed and unchanging
Ans: (b) Specific preferences influenced by culture and personality
29. When a person has both desire and ability to pay for a product, it is called ____
(a) Need
(b) Want
(c) Demand
(d) Expectation
Ans: (c) Demand
30. According to marketing principles, the starting point of marketing is ____
(a) The product
(b) The promotion
(c) Understanding customer needs
(d) The distribution channel
Ans: (c) Understanding customer needs
31. A person feels hungry – this is an example of ____
(a) A want
(b) A demand
(c) A need
(d) A product
Ans: (c) A need
32. A customer wanting to buy a pizza instead of home-cooked food shows ____
(a) A need
(b) A want
(c) A demand
(d) A desire
Ans: (b) A want
33. When someone orders a Domino’s pizza using their salary money, it becomes a ____
(a) Need
(b) Want
(c) Demand
(d) Preference
Ans: (c) Demand
34. Which statement correctly shows the relationship between the three?
(a) Demand → Want → Need
(b) Need → Want → Demand
(c) Want → Demand → Need
(d) Need → Demand → Want
Ans: (b) Need → Want → Demand
35. Marketing begins not with products but with ____
(a) Pricing
(b) Advertising
(c) Customer needs

32
 (d) Profit
Ans: (c) Customer needs
36. A customer saying, “I want a cheap mobile phone”, refers to ____
(a) Secret need
(b) Stated need
(c) Delight need
(d) Unstated need
Ans: (b) Stated need
37. A customer actually requiring a durable, long-lasting mobile phone refers to a ____
(a) Real need
(b) Stated need
(c) Secret need
(d) Hidden want
Ans: (a) Real need
38. A customer expecting good after-sales service but not mentioning it shows ____
(a) Unstated need
(b) Stated need
(c) Real need
(d) Delight need
Ans: (a) Unstated need
39. Getting free accessories or surprise gifts with a product represents ____
(a) Secret need
(b) Delight need
(c) Real need
(d) Stated need
Ans: (b) Delight need
40. Buying a premium brand for status or recognition indicates a ____
(a) Secret need
(b) Real need
(c) Stated need
(d) Unstated need
Ans: (a) Secret need
41. Understanding customer needs is the ____ of marketing.
(a) End point
(b) Foundation
(c) Optional part
(d) Final step
Ans: (b) Foundation
42. Identifying needs and wants helps companies in ____
(a) Guessing demand
(b) Developing products that meet real expectations
(c) Increasing production only

33
 (d) Avoiding product innovation
Ans: (b) Developing products that meet real expectations
43. When marketers understand true customer needs, they can ____
(a) Reduce business risk
(b) Increase confusion
(c) Waste resources
(d) Ignore feedback
Ans: (a) Reduce business risk
44. Different customer groups with different needs and wants help in ____
(a) Advertising only
(b) Market segmentation and targeting
(c) Cost control
(d) Product packaging
Ans: (b) Market segmentation and targeting
45. A company that meets customer needs better than competitors gains ____
(a) Customer dissatisfaction
(b) Competitive advantage
(c) Legal risk
(d) Market confusion
Ans: (b) Competitive advantage
46. In the smartphone market, the need is for ____
(a) A particular brand
(b) Communication and connectivity
(c) Entertainment only
(d) Brand recognition
Ans: (b) Communication and connectivity
47. The want in the smartphone market example is ____
(a) Owning any phone
(b) A smartphone with camera and internet
(c) Having no phone
(d) Using a landline
Ans: (b) A smartphone with camera and internet
48. The demand in the smartphone example occurs when ____
(a) The customer has no money
(b) The customer purchases an iPhone or Samsung
(c) The customer just browses online
(d) The customer asks for product details
Ans: (b) The customer purchases an iPhone or Samsung
49. The main difference between want and demand is ____
(a) Want has financial support; demand does not
(b) Demand has willingness and ability to pay; want may not
(c) Both are same

34
 (d) Demand is emotional; want is practical
Ans: (b) Demand has willingness and ability to pay; want may not
50. Marketers study needs, wants and demands primarily to ____
(a) Produce what is easiest
(b) Force customers to buy
(c) Design products that satisfy real human requirements
(d) Focus only on profit
Ans: (c) Design products that satisfy real human requirements
51. Marketing is mainly concerned with ____
(a) Producing goods only
(b) Promoting and selling products or services
(c) Accounting and finance
(d) Hiring employees
Ans: (b) Promoting and selling products or services
52. The main difference between traditional and digital marketing is ____
(a) Target audience
(b) Use of the internet and technology
(c) Company size
(d) Type of product sold
Ans: (b) Use of the internet and technology
53. Both traditional and digital marketing aim to ____
(a) Reduce customer engagement
(b) Reach customers and increase sales
(c) Eliminate advertising
(d) Focus only on local areas
Ans: (b) Reach customers and increase sales
54. Traditional marketing refers to ____
(a) Online promotion through websites
(b) Offline promotion using print, radio and TV
(c) Email and social media marketing
(d) Mobile app advertising
Ans: (b) Offline promotion using print, radio and TV
55. Which of the following is NOT a traditional marketing method?
(a) Television commercials
(b) Newspapers
(c) Search engine optimization
(d) Billboards
Ans: (c) Search engine optimization
56. Direct marketing in traditional methods includes ____
(a) Door-to-door sales and phone calls
(b) Social media posts
(c) YouTube ads

35
 (d) Website pop-ups
Ans: (a) Door-to-door sales and phone calls
57. Outdoor advertising includes ____
(a) Brochures
(b) TV commercials
(c) Billboards and posters
(d) Email newsletters
Ans: (c) Billboards and posters
58. Which of the following is an advantage of traditional marketing?
(a) High flexibility
(b) Builds trust through personal contact
(c) Global reach
(d) Real-time feedback
Ans: (b) Builds trust through personal contact
59. One major limitation of traditional marketing is ____
(a) It’s cheap and fast
(b) It’s difficult to measure results
(c) It’s mostly online
(d) It requires no manpower
Ans: (b) It’s difficult to measure results
60. Traditional marketing is most suitable for ____
(a) Businesses targeting a local audience
(b) Online-only companies
(c) Global e-commerce firms
(d) Virtual reality advertising
Ans: (a) Businesses targeting a local audience
61. Digital marketing promotes products through ____
(a) Offline methods
(b) The internet and digital platforms
(c) Physical stores
(d) Newspapers
Ans: (b) The internet and digital platforms
62. Which of the following is NOT a method of digital marketing?
(a) Search Engine Optimization (SEO)
(b) Radio advertising
(c) Email marketing
(d) Social media marketing
Ans: (b) Radio advertising
63. Social media marketing uses platforms such as ____
(a) Facebook, Instagram and YouTube
(b) Newspapers and magazines
(c) Radio and TV

36
 (d) Door-to-door sales
Ans: (a) Facebook, Instagram and YouTube
64. SEO in digital marketing helps to ____
(a) Increase website visibility on search engines
(b) Design attractive posters
(c) Print advertisements
(d) Reduce website traffic
Ans: (a) Increase website visibility on search engines
65. Pay-Per-Click (PPC) advertising means ____
(a) Paying employees per task
(b) Paying only when users click your advertisement
(c) Paying for TV commercials
(d) Paying for product packaging
Ans: (b) Paying only when users click your advertisement
66. An advantage of digital marketing is ____
(a) Expensive and time-consuming
(b) Hard to measure performance
(c) Real-time feedback and analytics
(d) No global access
Ans: (c) Real-time feedback and analytics
67. Which of the following is a limitation of digital marketing?
(a) Requires internet access and digital skills
(b) Limited customer engagement
(c) High printing costs
(d) Hard to target specific audiences
Ans: (a) Requires internet access and digital skills
68. Influencer marketing refers to ____
(a) Hiring famous personalities on social media to promote products
(b) Sending flyers to houses
(c) Radio promotion
(d) Buying billboard space
Ans: (a) Hiring famous personalities on social media to promote products
69. Mobile marketing involves ____
(a) Only email campaigns
(b) SMS, app notifications and mobile ads
(c) Door-to-door campaigns
(d) TV sponsorships
Ans: (b) SMS, app notifications and mobile ads
70. Traditional marketing provides mostly ____
(a) One-way communication
(b) Two-way interaction
(c) Real-time feedback

37
 (d) Personalized experience
Ans: (a) One-way communication
71. Digital marketing provides ____
(a) One-way communication
(b) Limited reach
(c) Two-way communication and engagement
(d) Only local advertising
Ans: (c) Two-way communication and engagement
72. Which of the following has higher flexibility?
(a) Traditional marketing
(b) Digital marketing
(c) Both are equal
(d) None
Ans: (b) Digital marketing
73. Measuring results and analytics are easier in ____
(a) Traditional marketing
(b) Digital marketing
(c) Both are same
(d) None
Ans: (b) Digital marketing
74. In terms of cost, digital marketing is generally ____
(a) More expensive than TV advertising
(b) Lower in cost and affordable for small businesses
(c) Not measurable
(d) Useless for startups
Ans: (b) Lower in cost and affordable for small businesses
75. Which of the following statements is TRUE?
(a) Traditional marketing has global reach
(b) Digital marketing allows instant feedback
(c) Traditional marketing uses social media platforms
(d) Digital marketing cannot be measured
Ans: (b) Digital marketing allows instant feedback
76. Event Management mainly involves ____
(a) Producing goods for sale
(b) Planning, organizing and executing events
(c) Managing financial accounts only
(d) Hiring employees for companies
Ans: (b) Planning, organizing and executing events
77. The main purpose of event management is to ____
(a) Entertain only the organizers
(b) Plan and conduct events efficiently to achieve goals
(c) Spend money without planning

38
 (d) Focus only on decorations
Ans: (b) Plan and conduct events efficiently to achieve goals
78. Events can be divided based on ____
(a) Season and weather
(b) Purpose, audience and scale
(c) Price and size
(d) Number of participants only
Ans: (b) Purpose, audience and scale
79. Corporate events are mainly organized by ____
(a) Government departments
(b) NGOs
(c) Business organizations and companies
(d) Individuals for family gatherings
Ans: (c) Business organizations and companies
80. Which of the following is NOT an example of a corporate event?
(a) Conferences
(b) Product launches
(c) Weddings
(d) Trade shows
Ans: (c) Weddings
81. The main purpose of corporate events is to ____
(a) Celebrate festivals
(b) Build brand image and strengthen business relations
(c) Promote local art and culture
(d) Organize community fairs
Ans: (b) Build brand image and strengthen business relations
82. Social events are related to ____
(a) Professional development
(b) Family and personal celebrations
(c) Government awareness campaigns
(d) Sports competitions
Ans: (b) Family and personal celebrations
83. Which of the following is a social event?
(a) Seminar
(b) Marathon
(c) Wedding
(d) Product exhibition
Ans: (c) Wedding
84. Cultural events mainly aim to ____
(a) Discuss business strategies
(b) Preserve art, music and traditions
(c) Conduct examinations

39
 (d) Promote health awareness
Ans: (b) Preserve art, music and traditions
85. Which of the following is a cultural event?
(a) Job fair
(b) Dance competition
(c) Science exhibition
(d) Sports day
Ans: (b) Dance competition
86. Educational events are generally conducted by ____
(a) Schools, colleges and training institutions
(b) Hospitals
(c) Sports clubs only
(d) The army
Ans: (a) Schools, colleges and training institutions
87. The main goal of educational events is ____
(a) Fund generation
(b) Fun and recreation
(c) Knowledge sharing and skill enhancement
(d) Business promotion
Ans: (c) Knowledge sharing and skill enhancement
88. Sports events primarily promote ____
(a) Teamwork and sportsmanship
(b) Religious beliefs
(c) Political awareness
(d) Cultural heritage
Ans: (a) Teamwork and sportsmanship
89. Which of the following is NOT a sports event?
(a) Marathon
(b) Cricket match
(c) DJ night
(d) Football tournament
Ans: (c) DJ night
90. Entertainment events are organized for ____
(a) Fun, relaxation and enjoyment
(b) Education only
(c) Employee training
(d) Religious teaching
Ans: (a) Fun, relaxation and enjoyment
91. Which of these is an example of an entertainment event?
(a) Film award function
(b) Blood donation camp
(c) Republic Day parade

40
 (d) Science exhibition
Ans: (a) Film award function
92. Government and public events are usually organized for ____
(a) Citizens’ awareness and national pride
(b) Private family celebration
(c) Product advertising
(d) Sports competitions only
Ans: (a) Citizens’ awareness and national pride
93. Which of the following is a government event?
(a) Marriage reception
(b) Independence Day celebration
(c) Music concert
(d) Dance festival
Ans: (b) Independence Day celebration
94. Religious events mainly focus on ____
(a) Marketing products
(b) Spiritual growth and community bonding
(c) Political campaigning
(d) Product training
Ans: (b) Spiritual growth and community bonding
95. Which is an example of a religious event?
(a) Ganesh Utsav
(b) Business conference
(c) Sports day
(d) Career fair
Ans: (a) Ganesh Utsav
96. Fundraising events are organized to ____
(a) Raise funds for social causes
(b) Promote luxury brands
(c) Entertain celebrities
(d) Sell expensive tickets
Ans: (a) Raise funds for social causes
97. Which of the following is a fundraising event?
(a) Charity dinner
(b) Music award show
(c) Workshop
(d) Science fair
Ans: (a) Charity dinner
98. The purpose of fundraising and charity events is to ____
(a) Support social welfare and development
(b) Increase entertainment value
(c) Train government employees

41
 (d) Celebrate family milestones
Ans: (a) Support social welfare and development
99. A college’s “Annual Day” or “Cultural Fest” is an example of ____
(a) Religious event
(b) Corporate event
(c) Educational and cultural event
(d) Fundraising event
Ans: (c) Educational and cultural event
100. Which of the following correctly matches the event type with purpose?
(a) Corporate – Entertainment
(b) Social – Business growth
(c) Religious – Faith and devotion
(d) Educational – Family celebration
Ans: (c) Religious – Faith and devotion

42
Multiple Choice Questions (Unit-5)

1. Supply Chain Management (SCM) mainly focuses on ____

(a) Only manufacturing products
(b) Managing and co-ordinating the flow of goods and services from supplier to customer
(c) Advertising and promotion only
(d) Human resource management
Ans: (b) Managing and co-ordinating the flow of goods and services from supplier to customer

2. Which of the following best describes a "supply chain"?

(a) Only the transport system of goods
(b) A network connecting suppliers, manufacturers, warehouses and retailers
(c) A financial accounting system
(d) A marketing strategy
Ans: (b) A network connecting suppliers, manufacturers, warehouses and retailers

3. The main goal of SCM is to ensure ____

(a) Expensive products and limited availability
(b) Right product, right customer, right time, right cost
(c) Only local distribution
(d) Focus only on production
Ans: (b) Right product, right customer, right time, right cost

4. In the supply chain of biscuits, the final stage is ____

(a) Milling wheat into flour
(b) Packaging in factories
(c) Selling to the consumer
(d) Storage in warehouse
Ans: (c) Selling to the consumer

5. Which of the following is NOT part of a supply chain?

(a) Supplier
(b) Manufacturer
(c) Warehouse
(d) Accountant
Ans: (d) Accountant

6. Supply Chain Management involves ____

(a) Only production and manufacturing
(b) Planning, controlling and improving material and information flow
(c) Only transportation and packaging
(d) Advertising and promotion
Ans: (b) Planning, controlling and improving material and information flow

7. Which of the following is an important benefit of SCM?

(a) Increased cost and delays

43
(b) Reduced customer satisfaction
(c) Smooth flow of goods and reduced waste
(d) Ignoring supplier relationships
Ans: (c) Smooth flow of goods and reduced waste

8. Better co-ordination in SCM means ____

(a) Working in isolation
(b) Improved communication among suppliers, factories and dealers
(c) Reducing employee communication
(d) Focusing only on retailers
Ans: (b) Improved communication among suppliers, factories and dealers

9. Logistics Management is a part of ____

(a) Finance Management
(b) Supply Chain Management
(c) Marketing Management
(d) Human Resource Management
Ans: (b) Supply Chain Management

10. The main focus of logistics management is ____

(a) Manufacturing new products
(b) Managing transportation, warehousing and distribution
(c) Creating advertisements
(d) Hiring employees
Ans: (b) Managing transportation, warehousing and distribution

11. When an online order is packed, shipped and delivered, it is part of ____
(a) Finance operations
(b) Marketing campaign
(c) Logistics management
(d) Accounting
Ans: (c) Logistics management

12. Which of the following is NOT a major function of logistics management?

(a) Transportation
(b) Warehousing
(c) Order processing
(d) Advertising design
Ans: (d) Advertising design

13. Inventory control in logistics ensures ____

(a) No stock is kept
(b) The right quantity of goods is available when needed
(c) Overproduction of goods
(d) Only storing goods for a long time
Ans: (b) The right quantity of goods is available when needed

14. The main difference between SCM and Logistics is ____

(a) Logistics is broader than SCM
(b) SCM focuses on overall co-ordination, while logistics focuses on transport and storage
44
(c) SCM and logistics are unrelated
(d) SCM only deals with advertising
Ans: (b)

15. In Samsung’s example, logistics management is responsible for ____

(a) Designing mobile phones
(b) Advertising and sales promotions
(c) Moving finished phones from factory to customer
(d) Recruiting engineers
Ans: (c)

16. Supply Chain Management (SCM) connects ____

(a) Only customers and retailers
(b) Only manufacturers and warehouses
(c) Suppliers, manufacturers, warehouses, distributors and customers
(d) Only producers and government agencies
Ans: (c)

17. The main purpose of logistics management is to ensure ____

(a) Smooth financial transactions only
(b) Fast, safe and cost-effective movement of goods
(c) Recruitment of supply staff
(d) Designing new products
Ans: (b)

18. A successful supply chain depends on ____

(a) Advertising and sales promotion
(b) Smooth flow of materials, information and money
(c) Reducing suppliers
(d) Closing warehouses
Ans: (b)

19. The supply chain starts with ____

(a) Retailers
(b) Distributors
(c) Suppliers
(d) Customers
Ans: (c)

20. Suppliers are important because they ____

(a) Manufacture finished goods
(b) Provide raw materials and components
(c) Sell products to customers directly
(d) Handle customer service
Ans: (b)

21. Manufacturers convert ____

(a) Finished goods into raw materials
(b) Money into information
(c) Raw materials into finished goods
45
(d) Retail stores into warehouses
Ans: (c)

22. Efficiency at the manufacturing level affects ____

(a) Production cost and speed
(b) Only advertising budget
(c) Recruitment of employees
(d) Number of suppliers
Ans: (a)

23. Warehouses mainly function as ____

(a) Permanent storage for products
(b) Temporary storage centers connecting production and market
(c) Customer service offices
(d) Training centers for staff
Ans: (b)

24. Modern warehouses use which technology for efficiency?

(a) Barcoding and automated systems
(b) Typewriters and manual registers
(c) Paper-based reports
(d) Loudspeaker announcements
Ans: (a)

25. Distributors and wholesalers help by ____

(a) Buying in bulk and selling to retailers
(b) Manufacturing products
(c) Advertising to customers
(d) Storing goods permanently
Ans: (a)

26. Retailers act as the ____

(a) First link in the supply chain
(b) Bridge between wholesalers and customers
(c) Supplier of raw materials
(d) Transport operator
Ans: (b)

27. Retailers provide feedback mainly to ____

(a) Transport agencies
(b) Manufacturers and wholesalers
(c) Customers only
(d) Local government offices
Ans: (b)

28. Customers are considered the ____

(a) Starting point of the supply chain
(b) Middle stage in the supply chain
(c) Final destination of the supply chain

46
(d) Warehouse managers
Ans: (c)

29. Information flow in the supply chain helps to ____

(a) Spread rumors in the market
(b) Track demand, stock levels and deliveries
(c) Increase paperwork
(d) Reduce co-ordination
Ans: (b)

30. Financial flow refers to ____

(a) Movement of goods between warehouses
(b) Movement of money between supply chain participants
(c) Exchange of documents only
(d) Stock counting process
Ans: (b)

31. The most visible part of logistics is ____

(a) Marketing
(b) Transportation
(c) Accounting
(d) Customer surveys
Ans: (b)

32. Selecting the right mode of transport depends on ____

(a) Cost, distance and time
(b) Number of employees
(c) Size of warehouse
(d) Advertising budget
Ans: (a)

33. Warehousing in logistics involves ____

(a) Storing goods safely and systematically
(b) Designing advertisements
(c) Selling products directly
(d) Manufacturing spare parts
Ans: (a)

34. Inventory management aims to ____

(a) Produce unlimited stock
(b) Avoid both shortage and overstock
(c) Focus only on raw materials
(d) Eliminate suppliers
Ans: (b)

35. Order processing starts when ____

(a) The warehouse closes
(b) A customer places an order
(c) Goods are shipped to the factory

47
(d) Raw materials are purchased
Ans: (b)

36. Which of the following is part of order-processing?

(a) Hiring employees
(b) Order entry, packaging and tracking
(c) Market research
(d) Product designing
Ans: (b)

37. Packaging and material handling are important because ____

(a) They protect goods during storage and transport
(b) They increase advertising cost
(c) They reduce employee safety
(d) They help create invoices
Ans: (a)

38. Customer service in logistics focuses on ____

(a) Employee satisfaction
(b) Timely delivery and resolving complaints
(c) Designing packaging
(d) Hiring warehouse staff
Ans: (b)

39. Which of the following technologies supports modern logistics management?

(a) GPS, barcoding and ERP systems
(b) Fax machines and manual registers
(c) Typewriters
(d) Telephone directories
Ans: (a)

40. The correct link between supply chain and logistics components is ____
(a) Retailers – Finance
(b) Warehouses – Inventory Control
(c) Customers – Transportation
(d) Suppliers – Customer Service
Ans: (b)

41. In a modern supply chain, which moves faster than materials?

(a) Money
(b) Information
(c) Vehicles
(d) Labor
Ans: (b)

42. Information Technology (IT) in supply chain refers to ____

(a) Using manual systems to record data
(b) Using computers, software and networks to manage data
(c) Hiring more employees for communication

48
(d) Replacing suppliers
Ans: (b)

43. The main purpose of IT in supply chain and logistics is to ____

(a) Increase paperwork
(b) Delay delivery for accuracy
(c) Improve speed, accuracy and co-ordination
(d) Focus only on marketing
Ans: (c)

44. Which statement best defines Supply Chain IT systems?

(a) They manage human resources
(b) They co-ordinate material, information and money flow
(c) They handle only billing
(d) They record entertainment data
Ans: (b)

45. "Information moves faster than materials" means ____

(a) Communication supports physical operations
(b) Trucks move slower than computers
(c) Factories stop production
(d) Warehouses need less data
Ans: (a)

46. IT improves communication by ____

(a) Disconnecting suppliers and customers
(b) Connecting all partners through real-time data sharing
(c) Reducing the use of emails
(d) Increasing manual paperwork
Ans: (b)

47. How does IT increase efficiency in the supply chain?

(a) Through automation and reduced paperwork
(b) By hiring more manual labor
(c) By removing computers
(d) By increasing storage costs
Ans: (a)

48. IT enhances transparency by ____

(a) Keeping data secret
(b) Showing real-time shipment and stock details
(c) Limiting access to managers only
(d) Deleting order records
Ans: (b)

49. Using digital records instead of manual entries helps ____

(a) Increase typing errors
(b) Reduce human errors and duplication
(c) Delay order processing

49
(d) Increase cost
Ans: (b)

50. Customer satisfaction improves through IT because ____

(a) Orders are delayed
(b) Customers can track and receive accurate updates
(c) Complaints are ignored
(d) No communication is done
Ans: (b)

51. In supply management, IT helps through ____

(a) Manual purchase orders
(b) Online procurement systems and supplier tracking
(c) Verbal communication only
(d) Offline cash payments
Ans: (b) Online procurement systems and supplier tracking

52. ERP (Enterprise Resource Planning) software mainly supports ____

(a) Production planning and co-ordination
(b) Product advertisement
(c) Staff entertainment
(d) Customer complaints
Ans: (a) Production planning and co-ordination

53. Inventory control through IT is achieved by ____

(a) Random checking
(b) Automatic monitoring and reorder alerts
(c) Physical stock counting only
(d) Manual ledger entry
Ans: (b) Automatic monitoring and reorder alerts

54. Which technology is used in warehouses for tracking goods?

(a) Barcodes and RFID tags
(b) Loudspeakers and signs
(c) GPS alone
(d) CCTV only
Ans: (a) Barcodes and RFID tags

55. Which IT tool is used for customer records and feedback?

(a) ERP
(b) CRM (Customer Relationship Management)
(c) RFID
(d) TMS
Ans: (b) CRM (Customer Relationship Management)

56. Order processing in logistics is improved by ____

(a) Receiving and forwarding orders online automatically
(b) Manual phone calls only
(c) Writing orders in notebooks

50
(d) Ignoring customer emails
Ans: (a) Receiving and forwarding orders online automatically

57. Transportation management in logistics uses ____

(a) GPS and fleet-tracking systems
(b) Paper maps only
(c) Random routes
(d) Verbal driver instructions
Ans: (a) GPS and fleet-tracking systems

58. Warehouse Management Systems (WMS) help in ____

(a) Designing advertisements
(b) Tracking item location and stock movement
(c) Hiring staff
(d) Financial planning
Ans: (b) Tracking item location and stock movement

59. Route optimization software helps logistics companies to ____

(a) Choose slower but scenic routes
(b) Find the fastest and most fuel-efficient paths
(c) Increase travel distance
(d) Avoid digital data
Ans: (b) Find the fastest and most fuel-efficient paths

60. Cloud computing in logistics helps by ____

(a) Storing data manually
(b) Keeping information safe and accessible across locations
(c) Making data secret
(d) Blocking access to managers
Ans: (b) Keeping information safe and accessible across locations

61. RFID stands for ____

(a) Rapid File Information Data
(b) Radio Frequency Identification
(c) Random Flow Input Device
(d) Remote File Internet Delivery
Ans: (b) Radio Frequency Identification

62. TMS (Transportation Management System) is used for ____

(a) Staff salaries
(b) Planning, executing and monitoring vehicle movements
(c) Managing human resources
(d) Designing products
Ans: (b) Planning, executing and monitoring vehicle movements

63. EDI (Electronic Data Interchange) is mainly used to ____

(a) Share business documents electronically
(b) Print invoices manually
(c) Conduct physical audits

51
(d) Replace marketing teams
Ans: (a) Share business documents electronically

64. Which IT tool helps in analyzing trends and improving decisions?

(a) Business Intelligence (BI) software
(b) GPS
(c) Barcodes
(d) Cloud storage
Ans: (a) Business Intelligence (BI) software

65. E-commerce platforms play a role in supply chain by ____

(a) Disconnecting suppliers and buyers
(b) Enabling direct online sales and order co-ordination
(c) Reducing communication
(d) Increasing paper documentation
Ans: (b) Enabling direct online sales and order co-ordination

66. HRM primarily deals with managing which organizational resource?

(a) Money
(b) Materials
(c) People
(d) Machines
Ans: (c) People

67. Which statement best captures the core meaning of HRM?

(a) Managing only payroll
(b) Recruiting people and leaving the rest to line managers
(c) Planning, organizing, directing and controlling people-related functions
(d) Outsourcing all people processes
Ans: (c) Planning, organizing, directing and controlling people-related functions

68. Which of the following is NOT typically a function covered under HRM?
(a) Training and development
(b) Performance appraisal
(c) Product pricing
(d) Recruitment and selection
Ans: (c) Product pricing

69. According to the chapter, HRM ensures growth for ____

(a) Only the organization
(b) Only the employees
(c) Both organization and employees
(d) Government regulators
Ans: (c) Both organization and employees

70. "Right man for the right job" is primarily ensured through ____
(a) Advertising alone
(b) Scientific recruitment and selection
(c) Overtime allocation

52
(d) Transfer policies only
Ans: (b) Scientific recruitment and selection

71. Which point reflects HRM’s role in motivation and morale building?
(a) Restricting communication
(b) Punitive measures only
(c) Incentives, rewards and recognition
(d) Ignoring employee needs
Ans: (c) Incentives, rewards and recognition

72. Optimum utilization of human resources implies ____

(a) Overburdening efficient employees
(b) Underutilizing skilled workers
(c) Matching skills to jobs to reduce waste
(d) Rotating staff randomly
Ans: (c) Matching skills to jobs to reduce waste

73. Healthy employer-employee relations in HRM focus on ____

(a) Suppressing grievances
(b) Open communication and trust
(c) Avoiding unions at all costs
(d) Eliminating feedback
Ans: (b) Open communication and trust

74. Which of the following is part of Personnel Administration within HRM scope?
(a) Collective bargaining
(b) Wage and salary administration
(c) Leadership development workshops
(d) CSR initiatives
Ans: (b) Wage and salary administration

75. Human Resource Development (HRD) mainly emphasizes ____

(a) Only discipline and rules
(b) Short-term staffing fixes
(c) Developing knowledge, skills and attitudes
(d) External hiring only
Ans: (c) Developing knowledge, skills and attitudes

76. Industrial/Employee Relations primarily includes ____

(a) Market research
(b) Grievance handling and collective bargaining
(c) Warehouse design
(d) Pricing strategy
Ans: (b) Grievance handling and collective bargaining

77. Which is a modern expansion area within HRM?

(a) Ignoring diversity
(b) HR analytics and technology
(c) Reducing training budgets to zero

53
(d) Eliminating welfare measures
Ans: (b) HR analytics and technology

78. Which principle highlights fairness and non-discrimination?

(a) Equity and Fairness
(b) Competition and Punishment
(c) Maximum Control
(d) Silence and Secrecy
Ans: (a) Equity and Fairness

79. "Team spirit (Esprit de Corps)" in HRM aims to ____

(a) Promote individualism over collaboration
(b) Encourage co-operation and mutual trust
(c) Reduce communication
(d) Focus only on results, not relationships
Ans: (b) Encourage co-operation and mutual trust

80. The principle of Effective Communication in HRM promotes ____

(a) One-way top-down messaging
(b) Open, honest, two-way communication
(c) Withholding information
(d) Only written memos
Ans: (b) Open, honest, two-way communication

81. Which of the following BEST represents HRM’s contribution to legal/ethical compliance?
(a) Ignoring labor laws for speed
(b) Ensuring policies follow labor and safety standards
(c) Outsourcing all legal issues to vendors
(d) Relying on verbal agreements
Ans: (b) Ensuring policies follow labor and safety standards

82. An example of HRM in practice from the chapter is an HR manager who ____
(a) Designs new products
(b) Conducts safety training and motivates employees
(c) Sets market prices
(d) Manages factory machinery repairs
Ans: (b) Conducts safety training and motivates employees

83. "Stability and security" as a principle implies HR should ____

(a) Keep roles vague
(b) Provide fair policies and career paths
(c) Use surprise layoffs often
(d) Avoid long-term planning
Ans: (b) Provide fair policies and career paths

84. Work-life balance, diversity & inclusion and CSR are listed under ____
(a) Personnel Administration
(b) HRD only
(c) Additional/modern areas within HRM scope

54
(d) Finance function
Ans: (c) Additional/modern areas within HRM scope

85. National importance of HRM refers to its role in ____

(a) Only internal office politics
(b) Reducing employment opportunities
(c) Enhancing productivity, employment and economic growth
(d) Increasing legal disputes
Ans: (c) Enhancing productivity, employment and economic growth

86. Recruitment is the process of ____

(a) Selecting the best candidate from applications
(b) Identifying and attracting potential candidates to apply for jobs
(c) Conducting performance appraisals
(d) Dismissing unsuitable employees
Ans: (b) Identifying and attracting potential candidates to apply for jobs

87. Recruitment is called a positive process because ____

(a) It eliminates unqualified candidates
(b) It invites and attracts people to apply for jobs
(c) It focuses on rejection
(d) It reduces the labor force
Ans: (b) It invites and attracts people to apply for jobs

88. Which of the following best defines recruitment?

(a) Training existing employees
(b) Searching for and encouraging people to apply for employment
(c) Promoting current staff only
(d) Evaluating job performance
Ans: (b) Searching for and encouraging people to apply for employment

89. The main purpose of recruitment is to ____

(a) Decrease the number of applications
(b) Attract maximum qualified candidates for a job
(c) Focus only on internal transfers
(d) Avoid future manpower planning
Ans: (b) Attract maximum qualified candidates for a job

90. Recruitment creates the base for which of the following HR activities?
(a) Production planning
(b) Selection, training and development
(c) Advertising and marketing
(d) Accounting and finance
Ans: (b) Selection, training and development

91. Recruitment aims to ____

(a) Replace HR functions
(b) Build a pool of qualified applicants
(c) Minimize organizational structure

55
(d) Remove unproductive employees
Ans: (b) Build a pool of qualified applicants

92. Which of the following is NOT a feature of recruitment?

(a) It is a continuous activity
(b) It is a negative process
(c) It involves both internal and external sources
(d) It helps match people and jobs
Ans: (b) It is a negative process

93. An important objective of recruitment is ____

(a) To increase hiring costs
(b) To fill job vacancies quickly and efficiently
(c) To discourage competition
(d) To reduce communication
Ans: (b) To fill job vacancies quickly and efficiently

94. Recruitment helps to maintain ____

(a) Machinery
(b) Raw materials
(c) Human resource supply for future needs
(d) Trade union relations only
Ans: (c) Human resource supply for future needs

95. Recruitment also improves the organization’s ____

(a) Profit margin only
(b) Reputation as a good employer
(c) Physical infrastructure
(d) Tax benefits
Ans: (b) Reputation as a good employer

96. Internal recruitment refers to ____

(a) Hiring people from outside the organization
(b) Filling vacancies through existing employees
(c) Appointing consultants
(d) Recruiting temporary staff only
Ans: (b) Filling vacancies through existing employees

97. Which of the following is NOT an internal source of recruitment?

(a) Promotion
(b) Transfer
(c) Employment exchanges
(d) Employee referrals
Ans: (c) Employment exchanges

98. An advantage of internal recruitment is ____

(a) It brings new ideas
(b) It saves time and cost
(c) It increases jealousy among employees

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(d) It creates communication gaps
Ans: (b) It saves time and cost

99. A limitation of internal recruitment is that ____

(a) It reduces employee morale
(b) It limits the inflow of new ideas
(c) It requires expensive advertising
(d) It causes delays in decision-making
Ans: (b) It limits the inflow of new ideas

100. External sources of recruitment include all EXCEPT ____

(a) Campus recruitment
(b) Job portals and advertisements
(c) Transfers within the company
(d) Private agencies
Ans: (c) Transfers within the company

101. Campus recruitment mainly helps to hire ____

(a) Retired employees
(b) Fresh graduates and trainees
(c) Foreign managers
(d) Part-time staff only
Ans: (b) Fresh graduates and trainees

102. Walk-in interviews are a method of ____

(a) Internal recruitment
(b) External recruitment
(c) Training
(d) Promotion
Ans: (b) External recruitment

103. Which of the following is an advantage of external recruitment?

(a) Saves cost and time
(b) Brings fresh talent and diversity
(c) Reduces competition
(d) Prevents change in workforce
Ans: (b) Brings fresh talent and diversity

104. Which method of recruitment is conducted online through sites like LinkedIn or [Link]?
(a) Campus recruitment
(b) Employment exchange
(c) E-recruitment / Social media
(d) Walk-in interview
Ans: (c) E-recruitment / Social media

105. A major disadvantage of external recruitment is that, it ____

(a) Is time-consuming and costly
(b) Reduces variety of candidates
(c) Lowers diversity

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(d) Demotivates external applicants
Ans: (a) Is time-consuming and costly

106. Which is the first step in the recruitment process?

(a) Job analysis
(b) Advertising the vacancy
(c) Identifying vacancy
(d) Receiving applications
Ans: (c) Identifying vacancy

107. Job analysis in recruitment includes ____

(a) Creating job description and job specification
(b) Giving training to new recruits
(c) Conducting interviews
(d) Preparing pay slips
Ans: (a) Creating job description and job specification

108. The recruitment process ends when ____

(a) Job advertisements are issued
(b) Selection interviews are completed
(c) A pool of eligible candidates is created
(d) Appointment letters are distributed
Ans: (c) A pool of eligible candidates is created

109. Proper recruitment helps reduce employee turnover because ____

(a) It focuses only on cost reduction
(b) It ensures better job-employee fit
(c) It limits employee promotions
(d) It avoids supervision
Ans: (b) It ensures better job-employee fit

110. Which of the following best describes the importance of recruitment?

(a) It helps build a strong, talented workforce
(b) It increases absenteeism
(c) It reduces productivity
(d) It decreases organizational growth
Ans: (a) It helps build a strong, talented workforce

111. The Chalk Circle concept in HRM primarily teaches ____

(a) How to conduct employee training
(b) That true ownership belongs to the person who genuinely cares and contributes
(c) How to manage financial resources
(d) That authority is always linked with position
Ans: (b) That true ownership belongs to the person who genuinely cares and contributes

112. In HR terms, the Chalk Circle reminds managers to reward ____

(a) Power and seniority
(b) Formal authority
(c) Competence, commitment and ethics

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(d) Popularity among staff
Ans: (c) Competence, commitment and ethics

113. The Chalk Circle is a test of ____

(a) Financial management
(b) Fairness, integrity and care
(c) Physical strength
(d) Organizational size
Ans: (b) Fairness, integrity and care

114. According to the Chalk Circle model, promotions should be based on ____
(a) Seniority and years of service
(b) Employee’s personal connections
(c) Contribution, care and responsibility
(d) Salary expectations
Ans: (c) Contribution, care and responsibility

115. Which principle of the Chalk Circle Model emphasizes that true ownership lies with those who care
for organizational goals?
(a) Merit over Seniority
(b) Value-Based Ownership
(c) Fair Judgment
(d) Ethical Decision-Making
Ans: (b) Value-Based Ownership

116. The Chalk Circle approach in performance appraisal means ____

(a) Rewarding those who claim credit
(b) Ignoring teamwork
(c) Rewarding employees who contribute to team growth
(d) Preferring senior employees
Ans: (c) Rewarding employees who contribute to team growth

117. The main shift highlighted by the Chalk Circle concept is from ____
(a) "Who has experience?" → "Who has training?"
(b) "Who owns the role?" → "Who deserves the responsibility?"
(c) "Who has power?" → "Who has money?"
(d) "Who is oldest?" → "Who is newest?"
Ans: (b) "Who owns the role?" → "Who deserves the responsibility?"

118. Which of the following is NOT a benefit of applying the Chalk Circle concept in HRM?
(a) Promotes fairness and justice
(b) Encourages ethical leadership
(c) Reduces conflicts and bias
(d) Increases favoritism and partiality
Ans: (d) Increases favoritism and partiality

119. In the automobile company case, Supervisor B was rewarded because he ____
(a) Was more senior than A
(b) Took credit for the work
(c) Worked sincerely, trained others and cared for performance
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(d) Threatened to leave the company
Ans: (c) Worked sincerely, trained others and cared for performance

120. The Chalk Circle model encourages HR managers to make decisions based on ____
(a) Power and hierarchy
(b) Facts, fairness and contribution
(c) Gossip and influence
(d) Emotions and favoritism
Ans: (b) Facts, fairness and contribution

121. The most essential quality of a successful supervisor is ____

(a) Strictness
(b) Leadership ability
(c) Friendship
(d) Delegation
Ans: (b) Leadership ability

122. A good supervisor leads the team by ____

(a) Giving orders only
(b) Leading by example and inspiring confidence
(c) Avoiding responsibility
(d) Ignoring workers’ opinions
Ans: (b) Leading by example and inspiring confidence

123. Good communication means ____

(a) Giving instructions only
(b) Listening and giving feedback effectively
(c) Writing long reports
(d) Avoiding discussions
Ans: (b) Listening and giving feedback effectively

124. Effective two-way communication builds ____

(a) Fear and control
(b) Confusion and delay
(c) Trust and co-operation
(d) Isolation among workers
Ans: (c) Trust and co-operation

125. Technical knowledge helps a supervisor to ____

(a) Avoid work allocation
(b) Understand and solve job-related problems
(c) Depend completely on others
(d) Focus only on paperwork
Ans: (b) Understand and solve job-related problems

126. Decision-making ability is important because supervisors ____

(a) Face daily operational problems
(b) Rarely make any decisions
(c) Always follow orders from others

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(d) Prefer to delay solutions
Ans: (a) Face daily operational problems

127. Fairness and objectivity mean ____

(a) Showing favoritism
(b) Treating all employees equally without bias
(c) Supporting only seniors
(d) Being lenient with one group
Ans: (b) Treating all employees equally without bias

128. A good supervisor motivates employees by ____

(a) Punishing mistakes
(b) Encouraging, praising and recognizing efforts
(c) Avoiding communication
(d) Creating competition among team members
Ans: (b) Encouraging, praising and recognizing efforts

129. Patience and emotional stability help supervisors to ____

(a) React angrily under stress
(b) Stay calm and composed in difficult situations
(c) Ignore team issues
(d) Work without empathy
Ans: (b) Stay calm and composed in difficult situations

130. Planning and organizing ability ensures ____

(a) Random work allocation
(b) Delays in completion
(c) Smooth workflow and timely results
(d) More paperwork
Ans: (c) Smooth workflow and timely results

131. A positive attitude in a supervisor helps to ____

(a) Create fear among workers
(b) Build a cheerful and co-operative environment
(c) Increase absenteeism
(d) Spread negativity
Ans: (b) Build a cheerful and co-operative environment

132. Integrity means ____

(a) Honesty and sincerity in all actions
(b) Being popular among workers
(c) Ignoring discipline rules
(d) Following others blindly
Ans: (a) Honesty and sincerity in all actions

133. A supervisor with integrity is usually ____

(a) Dishonest but friendly
(b) Strict without reason
(c) Respected and trusted by employees

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(d) Avoided by workers
Ans: (c) Respected and trusted by employees

134. Team-building skill involves ____

(a) Encouraging co-ordination and harmony among members
(b) Promoting competition and jealousy
(c) Working alone
(d) Avoiding group discussions
Ans: (a) Encouraging co-ordination and harmony among members

135. Problem-solving ability means ____

(a) Avoiding problems until they grow
(b) Using logic and experience to find effective solutions
(c) Leaving problems to subordinates
(d) Depending on chance
Ans: (b) Using logic and experience to find effective solutions

136. Training and coaching skills help supervisors to ____

(a) Ignore new employees
(b) Guide and develop subordinates through mentoring
(c) Avoid giving feedback
(d) Delegate all training to HR only
Ans: (b) Guide and develop subordinates through mentoring

137. Adaptability means ____

(a) Resisting any change
(b) Accepting new ideas and changes with flexibility
(c) Sticking to old methods only
(d) Avoiding new technology
Ans: (b) Accepting new ideas and changes with flexibility

138. A supervisor with a sense of responsibility ____

(a) Blames others for failures
(b) Takes ownership of results
(c) Delegates everything
(d) Avoids decision-making
Ans: (b) Takes ownership of results

139. Which of the following is NOT a quality of a good supervisor?

(a) Patience
(b) Integrity
(c) Bias and favoritism
(d) Motivation
Ans: (c) Bias and favoritism

140. "Leads by example" means the supervisor ____

(a) Does the opposite of what he expects from others
(b) Follows the same discipline and rules as the team
(c) Avoids hard work

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(d) Delegates all responsibilities
Ans: (b) Follows the same discipline and rules as the team

141. Autocratic leaders ____

(a) Share authority equally
(b) Make all decisions alone and expect obedience
(c) Encourage participation
(d) Avoid giving instructions
Ans: (b) Make all decisions alone and expect obedience

142. Democratic leaders focus on ____

(a) Employee participation and teamwork
(b) Strict command and control
(c) Rules and formalities
(d) Punishments and fear
Ans: (a) Employee participation and teamwork

143. Laissez-Faire leadership is best suited for ____

(a) Unskilled workers needing guidance
(b) Highly skilled and self-motivated teams
(c) Situations requiring strict control
(d) Emergency conditions
Ans: (b) Highly skilled and self-motivated teams

144. A bureaucratic leader emphasizes ____

(a) Rules, structure and procedures
(b) Emotions and flexibility
(c) Innovation and creativity
(d) Informal decision-making
Ans: (a) Rules, structure and procedures

145. Transformational leaders are known for ____

(a) Inspiring vision and motivating people for higher performance
(b) Avoiding innovation
(c) Following rules only
(d) Focusing on punishments
Ans: (a) Inspiring vision and motivating people for higher performance

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