AGRIBUSINESS MANAGEMENT

AGRIBUSINESS MANAGEMENTFOR COMPETITIVE

EXAMINATIONS(ASRB-NET, UGC-NET, ICAR-JRF, SRF, Examinations of State Agricultural

Universities and Grade A and Grade B examination of NABARD, RBI andAgricultural Officers)

K. MAHENDRAN S. PRAVEENAA. RAJ SHRAVANTHI V. SAKTHIRAMA

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FIRST EDITION : 2019

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PREFACE

Agribusiness Management is vital for an investor to capitalise on the overall appreciation ofthe asset, which helps for the transformation of Indian agriculture towards ‘Agribusiness’. As partof this transformation process, many government and private educational institutions are offeringspecialisation programme in ‘Agribusiness Management’ as undergraduate, post graduate and doctoralprogrammes. There are a number of business management text books available to the readerswhich only cover limited part of agribusiness. As it is a niche subject, comprehensive books forexamination are sparingly available for the aspiring students. The candidates appearing for competitiveexams in agribusiness need an authentic and appropriate book to strengthen their confidence. Thereforethis book will meet the Competitive Examination needs of Agribusiness Management and BusinessManagement students.

The motive for writing this book is to provide a standard book on agribusiness that holisticallyincludes all the subjects through a competitive examination perspective. The book has been writtenin a systematic manner and readers are suggested to follow the chapter wise learning approach formaximum benefit from the book. The book includes 10 chapters which cover the subject areas ofGeneral Management, Marketing Management, Financial Management, Human Resources Management,Organisational Behaviour, Operations Management, Logistics Management, Supply Chain Management,

Entrepreneurship Development, International Trade and Export, Managerial Economics and Statistics.The approach of the chapter first starts with multiple choice questions, which will improve thereader’s confidence and finally ends with test papers.

What makes this book unique is the fact that it blends together agriculture and businessmanagement. Considering the scope, coverage and style of the book, it will cater to the needs ofASRB-NET, UGC-NET, ICAR-JRF, SRF, Examinations of State Agricultural Universities and

for anybody with an interest for competitive examinations in business management such as GradeA and Grade B examination of NABARD, RBI and Agricultural Officers of State GovernmentDepartments. For better learning approach, the readers are advised to perform the chapter wiseobjective type questions and then test the knowledge through test papers at end of every chapter.

AUTHORS

CONTENTS

1. General Management 1 – 18

2. Marketing 19 – 77

2.1 Marketing Management

2.2 Agricultural Marketing

2.3 Rural Marketing

3. Finance 78 – 109

3.1 Financial Management

3.2 Agricultural Finance

4. Human Resources Management 110 – 122

5. Organisational Behaviour 123 – 139

6. Operations Management, Logistics Management andSupply Chain Management 140 – 168

7. Entrepreneurship Development 169 – 188

8. International Trade and Export 189 – 204

9. Managerial Economics 205 – 221

10. Agricultural Statistics 222 – 239

11. Solved Previous Year Question Papers of National LevelCompetitive Examinations 240 – 437

- 1 -

MULTIPLE CHOICE QUESTIONS

1. __________ is an art of getting things done through the efforts of other people.(a) Management (b) Planning (c) Agribusiness (d) Organising

2. __________ is an intellectual process.(a) Controlling (b) Planning (c) Agribusiness (d) Organising

3. Expression of plan in monetary terms is called as __________.(a) Decentralisation (b) Authority(c) Power (d) Budget

4. Decision making authority that is vested in a few hands of individuals is called as __________.(a) Decentralisation (b) Centralisation(c) Power (d) Authority

5. __________ is a power to make decisions which guides the actions of another.(a) Delegation (b) Centralisation (c) Power (d) Authority

6. __________ is the obligation of a subordinates to whom a superior has assigned a task, toperform the service as required.(a) Responsibility (b) Decentralisation(c) Delegation (d) Power

7. __________ refers to a number of subordinate managers reporting to a single senior manager.(a) Unity of command (b) Span of control(c) Chain of command (d) Authority

8. The authority of chain travels from top to bottom level is called as __________.(a) Scalar pattern (b) Chain of command(c) Both (a) and (b) (d) None of them

9. Relationship between the superior and his immediate subordinates.(a) Controlling (b) Centralisation(c) Communication (d) Delegation

1 GENERAL MANAGEMENT

2 AGRIBUSINESS MANAGEMENT FOR COMPETITIVE EXAMINATIONS

10. Group of persons formed for a special purpose.(a) Committee organisation (b) Free from organisation(c) Line organisation (d) Staff organisation

11. Planning should be high in __________ managers.(a) Supervisory level (b) Middle level(c) Top level (d) Bottom level

12. Technical skills are most important in __________ level managers.(a) Supervisor (b) Middle(c) Top (d) Workers

13. __________ skill is the ability to solve problems in ways that will benefit the enterprise.(a) Human (b) Design (c) Technical (d) Conceptual

14. __________ skill is the ability to see the big picture to recognise significant elements in asituation and to understand the relationship among the variables.(a) Human (b) Design (c) Technical (d) Conceptual

15. __________ is the achievement of objectives with the least amount of recourses.(a) Efficiency (b) Effectiveness (c) Productivity (d) Output

16. __________ method is a oldest method of production on a very small scale.(a) Job shop production (b) Unit production(c) Job production (d) All the above

17. Size of lot to be purchased which is economically viable is called as __________.(a) Re-order point (b) EOQ(c) Lead time (d) Safety stock

18. Based on the availability of the inventory, inventory can be classified into __________.(a) ABC analysis (b) VED analysis(c) FSN analysis (d) SDE analysis

19. __________ is a method of dividing the large market into small group in which the customerhas a common characteristics.(a) Market segmentation (b) Market Research(c) Market promotion (d) MDSS

20. Example for productive resources.(a) Seed (b) Machinery(c) Fertiliser (d) All the above

GENERAL MANAGEMENT 3

21. Which enterprises will act as a monopoly firm?(a) Co-operative society (b) State enterprises(c) Private company (d) None

22. __________ may be defined as guide, thinking and action of those who have to makedecisions in the action.(a) Procedure (b) Rules (c) Policies (d) Programmes

23. __________ is the step by step guide to a specific activity or function.(a) Procedures (b) Rules (c) Polices (d) Strategy

24. Top management level includes __________.(a) Board of directors (b) Regional manager(c) CEO (d) Both (a) and (c)

25. Authority travels from top to bottom and accountability upwards from bottom to top is__________ organisation.(a) Line organisation (b) Free form organisation(c) Committee organisation (d) Staff organisation

26. The authority chain travels top to bottom level is called as __________.(a) Scalar pattern (b) Chain of command(c) Both (a) and (b) (d) None

27. Leadership with a role for subordinates is __________.(a) Autocratic leader (b) Free rein(c) Democratic (d) None

28. The term MBO was first outlined by __________.(a) Fayol (b) David Ricardo (c) McCarthy (d) Peter Drucker

29. Minimum Paid-up Capital for Private companies __________.(a) ` 1,00,000 (b) ` 5,00,000 (c) ` 3,00,000 (d) ` 10,00,000

30. Minimum Paid-up Capital for Public Limited companies __________.(a) ` 1,00,000 (b) ` 5,00,000 (c) ` 3,00,000 (d) ` 10,00,000

31. Minimum number of members required to form a private company is __________.(a) 2 (b) 3 (c) 5 (d) 7

32. Minimum number of members required to form a public company is __________.(a) 2 (b) 3 (c) 5 (d) 7


33.(a) Sole proprietor (b) Partnership(c) Joint stock (d) Co-operative society

34. According to Companies Act 2013, maximum number of partners in partnership firm hasbeen increased to:(a) 50 (b) 100 (c) 20 (d) 80

35. __________ involves process of filling positions in the organisation structure.(a) Staffing (b) Planning (c) Organising (d) Job range

36. Top level managers are also known as:(a) Tactical managers (b) Operational managers(c) Strategic managers (d) Project managers

37. The primary function of management is __________.(a) Planning (b) Organising (c) Motivating (d) Staffing

38. Bureaucracy theory was proposed by __________.(a) Weber (b) Taylor (c) Mayo (d) Fayol

39. The Hawthorne experiments were conducted by__________.(a) Charles Handy (b) Elton Mayo (c) Henri Fayol (d) Max Weber

40. Match the following:

(a) Sole Proprietorship (i) Minimum paid up capital is ` 1,00,000(b) Public Limited Company (ii) Unlimited Liability(c) Private Company (iii) Minimum paid up capital is ` 5,00,000(d) Cooperative Society (iv) One man one vote

(a) (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i) (b) (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)(c) (a)-(i), (b)-(ii), (c)-(iv), (d)-(iii) (d) (a)-(iv), (b)-(iii), (c)-(i), (d)-(ii)

41. Match the following:

A. George R. Terry (i) Management is an art of getting things done through people.B. Mary Parker Folet (ii) Management is a process consisting of planning, organising,

actuating and controlling, performed to determine andaccomplish the objectives by the use of people and resources.

C. F.W. Taylor (iii) Management is the art of getting things done through othersand with formally organised groups.

D. Harold Koontz (iv) Management is the art of knowing what you want to doand then seeing that they do it in the best and the cheapestway.


(a) (a)-(ii), (b)-(i), (c)-(iv) and (d)-(iii) (b) (a)-(ii), (b)-(i), (c)-(iii) and (d)-(iv)(c) (a)-(i), (b)-(ii), (c)-(iv) and (d)-(iii) (d) (a)-(iii), (b)-(i), (c)-(iv) and (d)-(ii)

42. Motion study was developed by __________.(a) Frank and Gilbreth (b) Winslow(c) Porter (d) Ricardo

43. Kaizen concept was first developed in __________.(a) USA (b) India (c) Japan (d) Mexico

44. Kaizen means:(a) Development (b) Lean production(c) Continuous improvement (d) JIT

45. Just-in-Time was successfully implemented by __________.(a) Toyota (b) Honda (c) Suzuki (d) Volkswagen

46. In Just-In-Time system __________.(a) There is no delay (b) Conveyance times are balanced(c) Both (a) and (b) (d) There is unequal production at different places

47. MRP is different from JIT in terms of __________.(a) Inventory (b) Quality(c) Human orientation (d) All of the above

48. Under mechanism of scientific management, scientific task setting includes:(a) Time study (b) Motion study (c) Method study (d) All of the above

49. The objectives in corporate governance are:(a) Growth (b) Stability(c) Shareholders value maximisation (d) All of the above

50. The word __________ denotes a function, a task, a discipline.(a) Management (b) Leadership (c) Motivation (d) None of the above

51. Which theory assumes that people are naturally lazy and will avoid work and responsibilitiesif possible?(a) Theory X (b) Theory Y (c) Theory Z (d) None of the above

52. What does the mission statement specify the organisation will achieve __________.(a) Goals (b) Profit (c) Both (a) and (b) (d) None

53. __________ is the process of influencing the people.(a) Motivation (b) Leadership (c) Delegation (d) Controlling


54. Limitations of business planning.(a) Time consuming (b) Expensive device(c) Heavy cost planning (d) All the above

55. If one firm assumes the functions of other firm is called __________.(a) Horizontal integration (b) Vertical integration(c) Conglomeration (d) None of the above

56. If one firm assumes other functions which are having close relationship.(a) Horizontal integration (b) Vertical integration(c) Conglomeration (d) None of the above

57. Example for horizontal type of integration.(a) Co-operative marketing societies (b) Co-operative farming societies(c) HUL (d) Both (a) and (b)

58. Vertical integration of a farm is most common in __________.(a) Poultry sector (b) Fruits (c) Vegetables (d) All the above

59. If one firm assumes other functions (succeeding stages) related to consumption function iscalled __________.(a) Forward integration (b) Backward integration(c) Conglomeration (d) Horizontal integration

60. If one firm assumes several functions which do not have any relationship.(a) Forward integration (b) Backward integration(c) Conglomeration (d) Horizontal integration

61. If one firm assumes the other functions (proceeding) related to the production function iscalled __________.(a) Forward integration (b) Backward integration(c) Conglomeration (d) Horizontal integration

62. A wholesaler firm assumes the functions such as assembling, processing, packing etc.(a) Forward integration (b) Backward integration(c) Conglomeration (d) Horizontal integration

63. A wholesaler firm assuming the function of a retailer is called __________.(a) Forward integration (b) Backward integration(c) Conglomeration (d) Horizontal integration

64. Who is an executor of policies and procedures making a series of decisions with well-defined and specified premises.(a) Top level managers (b) Regional managers(c) Supervisors (d) Managers


65. Which types of role a supervisor can perform:(a) Scientific management roles (b) Human relations roles(c) Functional roles (d) All the above

66. Who identified the roles of managers played in the management.(a) Peter Drucker (b) McCleland(c) Mintzberg (d) Pavlov

67. The Managerial skills concepts were first developed by __________.(a) Robert Katz (b) Peter Drucker(c) McCleland (d) Mintzberg

68. Firms that follow this rule prioritise their jobs according to their earliest due date is __________.(a) Earliest Due Date (EDD) (b) Longest Processing Time (LPT)(c) Shortest Processing Time (SPT) (d) Slack Time Remaining (STR)

69. Jobs that have the longest processing time are loaded first onto the work centre is called as__________.(a) Earliest Due Date (EDD) (b) Longest Processing Time (LPT)(c) Slack Time Remaining (STR) (d) First In, First Serve (FIFS)

70. Firms prioritise their work centres’ jobs on the basis of the shortest processing time ofjobs.(a) Earliest Due Date (EDD) (b) Shortest Processing Time (SPT)(c) Slack Time Remaining (STR) (d) First In, First Serve (FIFS)

71. Under which rule, the job, which has the shortest processing time, is given the highestpriority.(a) Earliest Due Date (EDD) (b) Shortest Processing Time (SPT)(c) Slack Time Remaining (STR) (d) First In, First Serve (FIFS)

72. Under which rule, the firms that start their process jobs in the order of their arrival.(a) Earliest Due Date (EDD) (b) Shortest Processing Time (SPT)(c) Slack Time Remaining (STR) (d) First In, First Serve (FIFS)

73. Jobs with the shortest slack time are dispatched first is under which rule.(a) Earliest Due Date (EDD) (b) Shortest Processing Time (SPT)(c) Slack Time Remaining (STR) (d) First In, First Serve (FIFS)

74. Game theory was developed by __________.(a) John Von Newman (b) Norman Dalkey(c) Olaf Helmer (d) Fisher


75. In what order do managers typically perform the managerial functions?(a) Organising, planning, controlling, leading.(b) Organising, leading, planning, controlling.(c) Planning, organising, leading, controlling.(d) Planning, organising, controlling, leading.

76. Who of the following is the industrial philanthropist?(a) Frederick Taylor (b) Seebohm Rowntree(c) Henry Ford (d) Max Weber

77. Which one of the following is not one of Drucker’s five guiding principles of management?(a) Making people’s strengths effective and their weaknesses irrelevant.(b) Enhancing the ability of people to contribute.(c) To operate the organisation’s status system.(d) Integrating people in a common venture by thinking through, setting and exemplifying

the organisational objectives, values and goals.

78. What are the three interpersonal roles of managers?(a) Figurehead, leader and liaison (b) Spokesperson, leader, coordinator(c) Director, coordinator, disseminator (d) Communicator, organiser, spokesperson

79. At what level of an organisation does a corporate manager operate?(a) Functional (b) Operational (c) Middle level (d) Top level

80. What is the guiding principle behind New Public Management?(a) Profit maximisation(b) Introducing private sector business principles into the public sector(c) Replacing public management with private sector management(d) Restructuring public organisations

81. Which one is not a recognised key skill of management?(a) Conceptual skills (b) Human skills(c) Technical skills (d) Writing skills

82. What is a social enterprise concerned with?(a) Profit maximisation (b) Maximising market share(c) Providing public service (d) Running a business to create social benefits

83. What does PEST stand for?(a) Political, environmental, strategic, testing.(b) Political, environmental, strategic, technological.(c) Political, economic, strategic, technological.(d) Political, economic, social, technological.


84. What are the three informational roles of managers?(a) Figurehead, leader and liaison.(b) Spokesperson, monitor and disseminator.(c) Director, co-ordinator, disseminator.(d) Communicator, organiser, spokesperson.

85. The observation of people at work that would reveal the one best way to do a task isknown as __________.(a) Scientific management (b) Classical management(c) Human relations management (d) Creative management

86. Bureaucracy theory means:(a) The development of management functions and administrative principles.(b) A scientific study of work.(c) A shared responsibility of authority and delegation.(d) A hierarchy of command based on a rational-legal authority structure.

87.(a) Elton Mayo (b) Max Weber (c) Charles Handy (d) Henri Fayol

88. An in-depth study on a single organisation using a variety of data collection methods isknown as __________.(a) Case study (b) Field survey(c) Field experiment (d)

89. The method of research that gathers data about perceptions, feelings, opinions throughinterviews and questionnaires in their actual work setting is known as __________.(a) Case study (b) Field survey (c) Field experiment (d)

90. Control of independent variable manipulation without intervening environmental effectsis at its maximum in __________.(a) Case studies (b) Field surveys(c) Field experiments (d) Laboratory experiments

91. Price represents the true or intrinsic value of the products in the sense of equilibriumprice.(a) Shadow price (b) Accounting price(c) Both (a) and (b) (d) None

92. The extension of 4P’s into 7P’s was developed by __________.(a) Boom and Bitner (b) McCarthy(c) Lauterborn (d) Roger


93. Who said that 4P’s are 4C’s.(a) Boom and Bitner (b) McCarthy(c) Lauterborn (d) Roger

94. If the firm specialises in one market segment, it is called as __________.(a) Single segment concentration (b) Product specialisation(c) Market specialisation (d) Selective specialisation

95. If the firm specialises in particular product, it is called as __________.(a) Single segment concentration (b) Product specialisation(c) Market specialisation (d) Selective specialisation

96. If the firm specialises in particular market, it is called as __________.(a) Single segment concentration (b) Product specialisation(c) Market specialisation (d) Selective specialisation

97. If the firm specialises in different products and different markets is called as __________.(a) Single segment concentration (b) Product specialisation(c) Market specialisation (d) Selective specialisation

98. Which kind of leader typically make choices based on their own ideas and rarely acceptadvice from his followers.(a) Autocratic (b) Democratic (c) Free rein (d) Institutional

99. Which one is not a recognised key skill of management?(a) Conceptual (b) Writing (c) Technical (d) Design

100. Which is concerned with how the organisation plans to meet the uncertain and competitiveworld outside and makes different assumption as regards the tactic and strength of thecompetitors.(a) Objectives (b) Strategies (c) Procedures (d) Principles

101. According to Companies Act 2013, maximum number of partners in partnership firm hasbeen increased to __________.(a) 20 (b) 80 (c) 100 (d) 50

102. Which kind of motivation occurs when people are compelled to do something out of pleasure,importance, or desire.(a) Positive motivation (b) Negative motivation(c) Fear motivation (d) Intrinsic motivation

103. Identify the incorrect statement in respect to oral communication.(i) Feed back is very late and there is no in-built mechanism for feedback.

(ii) Unsuitable when information is long and highly technical.


(iii) It is liable to misunderstanding.(iv) Two roles are involved — talking and listening.(v) It is expensive.

(a) I only (b) I and II only(c) I and V only (d) I, II, IV only

104. In which of the following situations should an employee use his own judgment?(a) When immediate action is necessary and the rules do not cover the situation.(b) Whenever the rules appear to be unfair in their application.(c) Whenever a situation is not covered by established rules.(d) Whenever a superior is present.

105. Management and Administration are:(a) Same(b) Different(c) Partially same and partially different(d) Same and different

106. The Era of Scientific Management.(a) 1880-1900 (b) 1880-1930 (c) 1880-1931 (d) 1880-1932

107. Consider the following basic steps involved in the process of control:1. Identifying the strategic control points.2. Establishment of the standards.3. Measuring performance against standards.4. Correcting deviations from the standards.

(a) 1, 4, 3, 2 (b) 1, 2, 3, 4(c) 2, 1, 3, 4 (d) 2, 3, 1, 4

108. Identify the incorrect statement from the following:1. Decentralisation and delegation are closely interrelated.2. Delegation and decentralisation both are desirable.3. Decentralisation is not suitable for large organisation.4. Delegation is not possible in the case of small organisations.

(a) 1 and 2 are correct (b) 2 and 3 are correct(c) 1 and 4 are correct (d) 1, 3 and 4 are correct

109. The following steps are involved in managing by objectives:1. Preliminary setting of objectives at the top.2. Setting subordinates objectives.3. Tying resources with the goals.4. Clarifying the organisational roles.


The correct sequence of these steps is:(a) 1, 2, 3, 4 (b) 1, 4, 2, 3 (c) 1, 3, 2, 4 (d) 1, 2, 4, 3

110. Maslow need theory is based on:(a) Organisational needs (b) Market needs(c) Human needs (d) Government needs

ANSWER KEY

Multiple Choice Questions:

1. (a) 2. (b) 3. (d) 4. (b) 5. (d) 6. (a) 7. (b) 8. (c) 9. (d) 10. (a)

11. (c) 12. (a) 13. (b) 14. (d) 15. (a) 16. (d) 17. (b) 18. (d) 19. (a) 20. (d)

21. (b) 22. (c) 23. (a) 24. (d) 25. (a) 26. (c) 27. (a) 28. (d) 29. (a) 30. (b)

31. (a) 32. (d) 33. (a) 34. (b) 35. (a) 36. (c) 37. (a) 38. (a) 39. (c) 40. (b)

41. (c) 42. (a) 43. (c) 44. (c) 45. (a) 46. (b) 47. (d) 48. (c) 49. (d) 50. (a)

51. (a) 52. (a) 53. (b) 54. (d) 55. (a) 56. (b) 57. (d) 58. (d) 59. (a) 60. (c)

61. (b) 62. (b) 63. (a) 64. (c) 65. (d) 66. (c) 67. (a) 68. (a) 69. (b) 70. (b)

71. (b) 72. (d) 73. (c) 74. (a) 75. (c) 76. (b) 77. (c) 78. (a) 79. (d) 80. (b)

81. (d) 82. (d) 83. (d) 84. (b) 85. (a) 86. (d) 87. (a) 88. (a) 89. (b) 90. (d)

91. (c) 92. (a) 93. (c) 94. (a) 95. (b) 96. (c) 97. (d) 98. (a) 99. (b) 100. (b)

101. (d) 102. (d) 103. (c) 104. (a) 105. (c) 106. (b) 107. (b) 108. (a) 109. (d) 110. (c)

TEST PAPER

Fill in the blanks:

1. Who is the father of agribusiness __________.2. The number of owners will be one in __________ type of business.3. The term agribusiness was coined during the year __________.4. Father of scientific management __________.5. In corporate type of business, ability to borrow funds from public through __________

and __________.6. Continuity of business will be terminated at the death of owner in case of __________.7. Expansion for MBO __________.8. __________ is the beginning of all other process of management.


9. __________ describes what one expects to happen.10. __________ is the ability of the person to influence another person to perform and

act.11. __________ defined as the power to make decisions which guide the actions of another.12. Scalar pattern is also known as __________.13. Long planning is also called as __________.14. The duration for long range planning __________.15. __________ skill is knowledge and proficiency to work with tools and specific technique

on given processes or problems.16. In partner type of business tax will be collected in the name of __________.17. Time spent for organising will be more in __________ level managers.18. Technical skills are most important in __________ level.19. Controlling management function will be less __________ level of managers.20. __________ is defined as decision made by the organisations regarding what is to be

done an what is not to be done in a given situation.21. Worker assignment is a __________ type forecasting.22. Duration for medium range forecasting __________.23. Delphi method is a __________ type of forecast.24. __________ is an oldest method of production on a small scale.25. Job production is also known as __________.26. Expand CAD __________.27. __________ production system deals with ‘low volume and large variety’ production.28. The batch production system is generally adopted in __________.29. __________ is the forwards and reverse flow and storage of goods, services and related

information between the point of origin and the point of consumption.30. __________ costs used for placing the stock for replenishment.31. Give formula for reorder point __________.32. Based on movement of inventory, inventory can be classified into __________ analysis33. Classification of inventory based on consumption __________.34. Classification of inventory associated with maintaining appropriate control __________.35. __________ is the acquisition of goods/or services at the best possible total cost of

ownership, in the right quantity, quality, right time, in the right place for the directbenefits.

36. Identifying new suppliers for a specific category of purchasing requirements usingInternet technology __________.


37. Creating and approving purchasing requisitions, placing purchase orders and receivinggoods and services by using a software system based on Internet technology __________.

38. Sending requests for information and prices to suppliers and receiving the responsesof suppliers using Internet technology __________.

39. Using Internet technology to buy goods and services from a number of known or unknownsuppliers is called as __________.

40. Gathering and distributing purchasing information both from and to internal and externalparties using Internet technology is called as __________.

41. __________ is any person or company that sells goods or services to someone else inthe economic production chain.

42. Rating of vendors will be conducted based on weightage __________.43. Suppliers will be evaluated based on list of factors __________.44. In which method, the vendor rating is done on the basis of various costs incurred for

procuring the materials from various suppliers __________.45. __________ leadership, the leader holds all authority and responsibility.46. __________ leadership style, subordinates are involved in making decisions.47. __________ leadership gives authority to employees.48. __________ refers to the number of subordinate managers reporting to a single senior

manager.49. __________ stipulates that each is responsible to only one superior.50. __________ refers to the manageable size of the work while the __________ refers to

the extent of the job rectification or perfection.51. __________ leader does not have any formal authority. He stands out because of his

special qualifications for the job handled by him.52. __________ leader is one who wields power over his followers due to the position or

office occupied by him in the organisational hierarchy.53. __________ layout places machines or serving units in such a way that the product

moves along a line as it passes through the sequence of operations.54. Technical skills are of greatest importance in __________ level.55. __________ sector deals with agro-based industries providing seeds, fertilisers, feed,

chemicals etc.56. __________ deals with production and distribution of farm commodities.57. Mintzberg identified __________ roles of a manager played in an organisation which

fall into three basic categories __________, __________ and __________.58. __________ plans are general plans that indicate the resource allocation, and priorities

and action necessary for achieving strategic goals.


59. _________ plans are aims to achiever short-term goals and are developed by __________managers.

60. __________ is the process of taking into account the changing planning premises,both external and internal to the organisation.

61. __________ control is aimed at evaluating the performance of the organisation.62. Match the production rate to the order rate by hiring and laying off employees __________

strategy.63. Maintain a stable workforce working at a constant output rate is __________ strategy.64. __________ is defined as “assigning specific jobs to each work centre for the planning

period.65. Igor Ansoff grid is also known as __________.66. The BCG matrix compares the business in an organisational portfolio on the basis of

__________ and __________.67. Product introduced into market with high price is called as __________.68. Changing the identity of the company product related to the competitor product is

called as __________.69. Changing the identity of the competitor related to the other company product is called

as __________.70. In job designing concept BPR stands for __________.

True or False:

1. Staffing involves process of filling positions in the organisation structure.2. Controlling is the measuring and correcting of activities of subordinates to ensure that

events conform to plans.3. In corporate type of business, they will pay own personal tax.4. Short range planning is also called as strategic planning.5. Production planning is concerned with specific project or plan such as setting up new

factory or plant or schemes relating to modernisation, amalgamation etc.6. The different firms join together and try to fix price and output for their own benefit is

called as conglomeration.7. There is no restriction in maximum number of members required to start a private

company.8. Effectiveness is the achievement of objectives.9. Efficiency is the achievement of the ends with the least amount of recourses.

10. Low-level managers spend more time on planning and organising than Top level managers.11. Leading on the other hand takes a great deal of time for first line supervisors.


12. A Private Company cannot issue Share Warrants against its fully paid shares.13. Private Company can issue Share Warrants against its fully paid up shares.14. The term Management By Objectives (MBO) is also known as Management By Results

(MBR).

Match the following-1:

1. Authority Marketing2. Power Ad-hoc committee3. Committee organisation Formal organisation4. Facilitative services Seeds5. Productive resources Informal organisation6. W. Taylor Administrative theory7. Henry Fayol Long term approach8. Strategic plan Scientific management


1. Indian Contract Act 19562. Factories Act 19583. Minimum Wages Act 19554. The Companies Act 18725. Trade and Merchandise Marks Act 19866. Consumer Protection Act 19487. Fruit Products Order 1948

ANSWER KEY – TEST PAPER

Fill in the blanks:

1. John H. Davis 2. Sole proprietorship3. 1955 4. Taylor5. Shares and Debentures 6. Sole proprietorship7. Management by objectives 8. Planning9. Forecasting 10. Power

11. Authority 12. Chain of command13. Strategic planning 14. 5-10 years15. Technical 16. Personal tax17. Top level 18. Supervisor19. First level supervisors 20. Rules21. Short run 22. 2 months – 2 years23. Qualitative 24. Job Production


25. Job shop/unit 26. Computer Aided Design27. Job shop 28. Medium size enterprises29. Logistics 30. Cost of ordering31. Reorder point = Safety stock + (Lead time × Usage)32. FSN or FNS Fast. Slow and Neutral Moving/Fast No and Slow moving33. VED – vital, essential and desirable 34. ABC analysis35. Procurement 36. E-sourcing37. ERP enterprise resource planning 38. E-tendering39. e-reverse auctioning 40. e-informing41. Vendor 42. Point method43. Categorical method 44. Cost ratio method45. Autocratic 46. Democratic47. Laissez-faire 48. Span of Control49. Unity of command 50. Job range and Job depth51. Functional leader/Expert 52. Institutional leader53. Product 54. Supervisor55. Farm input sector 56. Farm product sector57. Ten, interpersonal roles, informational roles and decisional roles58. Strategic plan 59. Tactical plan, Middle-level managers60. Strategic control 61. Operational control62. Chase strategy 63. Level strategy64. Loading 65. Market expansion grid66. Market growth rate and relative market share 67. Market skimming68. Re-positioning 69. De-positioning70. Business Process Re-engineering

True or False:

1 2 3 4 5 6 7 8 9 10 11 12 13 14

True True False False False True False True True False True True True True


1. Authority — Formal organisation2. Power — Informal organisation3. Committee organisation — Ad-hoc committee4. Facilitative services — Marketing5. Productive resources — Seeds6. W. Taylor — Scientific management7. Henry Fayol — Administrative theory8. Strategic plan — Long term approach



1. Indian Contract Act — 18722. Factories Act — 19483. Minimum Wages Act — 19484. The Companies Act — 19565. Trade and Merchandise Marks Act — 19586. Consumer Protection Act — 19867. Fruit Products Order — 1955

AGRIBUSINESS MANAGEMENT

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