UGC NTA NET/JRF Exam, Management, December-2020/June-2021

A price ceiling below the equilibrium price of a commodity leads to quantity demanded exceed quantity supplied and excess demand or shortage of commodity. Black marketing will result.

Price discrimination is possible only when the buyers from different sub-markets are willing to purchase the same product at different prices. Therefore, The essential conditions for price discrimination practice to succeed in different market are firm must have some control over the price of the product, price elasticity of demand must differ in different markets, and markets for the products must be separable.

Creative problem solving creates a willingness to keep looking for different approaches, even it a promising solution has been found to a problem. Therefore, conceptual blocks and divergent thinking are creative problem solving characteristics of effective managers.

Flexible manufacturing technologies allow a company to produce a wide variety of end products at a unit cost that at one time could only be achieved through the mass production of a standardized output. The term flexible manufacturing technology or lean production covers a range of manufacturing technologies that are designed to:
• Reduce set up times for complex equipment
• Increase the utilization of individual machines through better scheduling
• Improve quality control at all stages of the manufacturing process.

International trade theory are simply different theories to explain international trade. Trade is the concept of exchanging goods and services between two people or entities. International trade is then the concept of this exchange between people or entities in two different countries. Theory of international trade promoted is increase in demand for exportable products and rise in prices and volumes.

Strategic Human Resource Management is a process of managing human resources that links the workforce with the core strategies, objectives, and goals of an organisation.
In strategic human resource management, organization's formulate and execute human resource policies and practices to achieve its aims.

Salient features of Zero Base Budgeting are:
• It is a decision oriented approach . The decision unit is broken into understandable decision packages which are ranked according to importance. The responsibility is shifted from top management to the manager of the decision unit.

Degree of operating leverage a multiple that measures how much the operating income of a company change in response to a change in sales.
Formula of degree of operating leverage:

Fund flow and cash flow statements are important marginal tools and help the firm to know.
• Liquidity position
• Capital expenditure incurred
• Dividend paid
• Extent of external financing
Therefore all option is the correct.

The different assumptions of the modern portfolio theory:
• Returns from the assets are normally distributed.
• Investors will give their best in order to maximize returns for all the unique situations provided
• All investors are having access to the same information.
• The investor making the investment is rational and will avoid all the unnecessary risk associated.
• The cost pertaining to taxes and trading is not considered while making decision.
• All investors are having the same view on the rate of return expected.
• The single investors along are not sizeable and capable enough to influence the price prevailing in the market.
• Unlimited capital at the risk-free rate of return can be borrowed.