Classical

December 2013 - Paper3

41:  
Which method of setting the advertising budget of a company is considered to be the'most scientific ?
A.

All-you-can-afford method

B.

Percentage of sales method

C.

Competitive-parity method

D.

Objectives and tasks methods

 
 

Option: B

Explanation :


42:  
Match the items of List - I with those of List - II and indicate the correct combination from the codes given below:

List-I List-II
(i)    AIDA Model (a) Consumer behaviour
(ii)   Hierarchy of effects
       model
(b) Marketing  communication
(iii)  Howard 
       and Sheth  model
(c) Consumer buying_decision
      process
(iv)  Information search (d) Advertising effectiveness

 

 

A.

@) (b) (c) (d)

B.

(b) (c) (d) (a)

C.

(b) (d) (a) (c)

D.

(d) (a) (c) (b)

 
 

Option: B

Explanation :


43:  
Inability of the firm to meet its obligations results in financial disress which may lead to bankruptcy resulting into the following:
 
 1. Distress sale of assets at lower price.
 
 2. Legal and administrative costs for bankruptcy.
 
 3. Dilution of stakeholders,commitment to the firm.
 
 4. Stretching of payments to suppliers and creditors.
 
The direct costs of such financial distress may be
A.

1and 4

B.

2 and 3

C.

1and 2

D.

3 and 4

 
 

Option: A

Explanation :


44:  
Mutually exclusive projects can be rnore accurately ranked as per
A.

Internal rate of return method

B.

Net Present Value Method

C.
Modified Internal Rate of Returns Method
D.
Accounting or Average Rate of Return Method
 
 

Option: B

Explanation :


45:  
Which one of the folvlowing does not constitute a Standalone Risk Analysis ?
A.

Simularion Analysis 

B.

Break-even Analysis

C.

Corporate Risk Analysis

D.

Scenario Analysis

 
 

Option: C

Explanation :




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