Management MCQ’s

1. Business firm Produce and supply wide varieties of goods and ______ required by the society.

A) Money
B) Services
C) Entities
D) Social Service

2. The year 1991 is famous for.

A) New Fiscal deficit policy

B) IT parks initiated in Bangalore
C) Globalization policy, liberalization was accepted by India
D) Policies of cooperative societies changed

3. The primary sector includes all of the following except.

A) Forestry
B) Manufacturing
C) Mining
D) Agriculture

4. _________ product comes under petrochemical industry.

A) Vehicles
B) Plastic
C) Wood
D) Paper

5. Management causes.

A) Miss-communication
B) Wastage of resources
C) Miss-coordination
D) None of the above

6. _______ Skill is needed at the top level management.

A) Technical
B) Conceptual and technical
C) Conceptual
D) Conceptual, Technical and human

7. ______ is recruitment of right people at right place in an organization.

A) Planning
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B) Organizing
C) Staffing
D) Controlling

8. Policy making in an industry is a role of

A) Management
B) Administration
C) Public
D) Workers

9. Scientific management works on

A) Research and experimentation

B) Trial and error
C) More attention on production only
D) Tradition management theory

10. What is Espirit De Corps ?

A) It is a function of management
B) It is a principle of management
C) It is management concept in Russia
D) It is a name of company

11. The process of monitoring, comparing and correcting is called ______

A) Coordinating
B) Controlling
C) Leading
D) Organizing

12. A joint venture can be defined as

A) Two firms collaborate with each other on a specific project

B) One firm licenses its intellectual property to another firm
C) Two firm merge together
D) Two firm come together to form a third, legally seperate firm

13. Grouping the activities or operations of an enterprise into various units is referred as

A) Centralization
B) Departmentation
C) Delegation
D) Communication

14. _____ can be defined as running business by a single owner

A) Proprietorship
2
B) Partnership
C) Private limited
D) Public limited

15. Which are factors in which span of control depends ?

A) Trained and experienced subordinates

B) Type of work
C) Capacity of executive or manager
D) All of the above

16. Unlimited liability is present in

A) Proprietorship
B) Partnership
C) Both a & b
D) None of the above

17. “Achievement due to one will be shared by all others”, this happens in

A) General partnership
B) Limited partnership
C) Both a and b
D) None of the above

18. Factories act come into force from ____________

A) 1948
B) 1949
C) 1976
D) 1st April 1949

19. VAT and sales tax falls under __________

A) Indirect tax
B) Service tax
C) Direct tax
D) All of the above

20. The necessity of industrial act is to protect the interests of :

A) Workers
B) Employers
C) A and B
D) None of the above

21. Safety management deals with ____________

A) loss of life
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B) Personal injury
C) Damage to the equipment
D) Prevention of an accident

22. Collapse of crane is a cause of accident, under which type of accident it come ?

A) Mechanical cause of accident

B) Natural cause of accident
C) Human error
D) All of the above

23. Capital required by a company to purchase building for starting the company is called as

A) Working capital
B) Fixed capital
C) Loan
D) Dept

24. Variance report is the difference between outcome of the company

A) Material cost and labor cost

B) Planned budget and actual budget
C) Cash budget and fixed budget
D) Purchased budget and overhead budget

25. Which is input to MRP

A) Current forecasting
B) Bill of material
C) On hand inventory
D) All of the above

26. Value added tax (VAT) is a tax on ?

A) An employee earning
B) The organization profits
C) The investment earnings
D) Good and services

27. Internal source/s of finance is/are:

A) Deferred taxation
B) Shares
C) Debentures
D) All of the above

28. According to which Act, a business is required to prepare a balance sheet?

A) Companies Act
4
B) Factory Act
C) Environmental Act
D) None of the above

29. Which is part of material management

A) Inventory Management
B) Marketing Management
C) Both A & B
D) None

30. Which is not the feature of ERP

A) Integrated system
B) Common Data-Base
C) Departmental access
D) Different look for each module

31. Which of the following is the name given to a bill of lading where goods have been received by a carrier
free of defects ?

A) Shipped bill of lading

B) Claused bill of lading
C) Ordinary bill of lading
D) Clean bill of lading

32. In EOQ, _______ cost=unit price x annual consumption volume

A) Consumption
B) Protection
C) Investment
D) None of these

33. Which of the followings are the aims of material management ?

A) Continuity of supply
B) Low payroll cost
C) Higher inventory turn over
D) All of the above

34. A type of Item has …… importance due to consumption

A) 10-20%
B) 15-25%
C) 40-50%
D) 70-80%

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35.

A) Direct labor budget

B) Material budget
C) Purchase budget
D) None of the above

36. The activity of “Control” in Six sigma refers to :

A) Develop alternatives
B) Determines various controls needed and validate them
C) Prepare control chart
D) None of the above

37. Which of the following is the constituent of total quality management ?

A) Orderliness and punctuality

B) Quality of inventory
C) TPM
D) None of the above

38. In PDCA, act consist of which of the following ?

A) Ensure continuous improvements

B) Analyze result
C) Plan policies
D) Train employees

39. To achieve quality (i.e defects free product and services), we require

A) Close cooperation between management and staff

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B) Commitment
C) An environment in which quality can flourish
D) All of the above

40. Bench marking determines

A) Customer requirement
B) Process capability
C) Standards
D) Getting ISO 9000 audit done

41. Top agro industry in India is

A) FabIndia
B) Pidilite
C) Dupont India
D) None of the above

42. Trading business means

A) Buying a Raw material

B) Selling a finished goods
C) Buying goods and selling them without any processing
D) All

43. Following is not associated with insurance

A) Bajaj Allianz
B) Max Life
C) LIC
D) ICC

44. Father of scientific management is

A) Fedrick W. Tailor
B) Arthur Dunkel
C) Henry Fayol
D) Robert owen

45. Deciding in advance what to do, how to do and when to do is……..

A) Decision-making
B) Organizing
C) Planning
D) Motivating

46. Which statement is wrong

A) Authority can not be delegated

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B) Authority is the power to act
C) Hidher the post, higher is the authority
D) Authority is right to command

47. Which is the appropriate reason of failure of good plan ?

A) Insufficient data
B) Lack of knowledge
C) Over confidence
D) All of the above

48. ………..is The process of operations, verify conformity with the predetermined plan and takes
corrective action

A) Coordinating
B) Forecasting
C) Organizing
D) Controlling

49. Which statement regarding Joint stock company is incorrect ?

A) Joint stock companies have no separate legal status than their members
B) Members of joint stock companies have limited liability
C) Joint stock companies can undertake several activities like expansion, modernization , diversificatn, etc.
D) None of the above

50. Which one of following is not included in the ‘contents of partnership deed’.

A) Name of partnership firm

B) Duration of partnership
C) Permanent address of partnership business
D) Face value of share

51. In automobile industry, departments can be on the basis of ______

A) Territorial
B) Product
C) Customer
D) Process

52. Minimum wages needed to be paid in:

A) Cash
B) Demand draft
C) Cheque
D) None of the above

53. In accident prevention, Safe workplace layout does not include:

A) Obstruction fees passageways

B) Antiskid floors
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C) Separate storage of inflammable materials
D) Enough height of workrooms

54. Safety management deals with ____________

A) Loss of life
B) Personal injury
C) Damage to the equipment
D) Prevention of an accident

55. Safety promotes __________

A) Sales
B) Productivity
C) Profit
D) Research

56. Fixed capital is also called as

A) Tight capital
B) Blocked capital
C) Working capital
D) Current capital

57. The firm type of Bajaj Auto ltd is ?

A) Proprietorship
B) Partnership
C) Joint stock company
D) Public sector

58. _________ is method of buying goods by making installment payments over the period of time.

A) Bank loan
B) Hire purchase
C) Sale and lease back
D) All of the above

59. Debentures are included in _______ source of finance

A) Long term
B) Short term
C) Medium term
D) None

60. ______ are the term used to indicate purchases made during the year for the purpose of sale, When
goods purchased are returned is referred as purchase return.
A) Opening stock
B) Purchases
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C) Sales
D) Office administrative expenses

61. I want the products of my company to achieve perfect quality, which tool will I apply to check this

A) Six sigma
B) ABC analysis
C) MRP
D) EOQ

62. Which is a part of Material management

A) Inventory management
B) Marketing management
C) Both A & B
D) None

63. Which of the following are the aims of Material management ?

A) Continuity of supply
B) Low payroll cost
C) Higher inventory turn over
D) All of the above

64. Following are the kinds of partners

A) Active partner and sleeping partner

B) Owner and distributor
C) Global partner and media partner
D) Permanent partner and temporary partner

65. What is the full form of ISO ?

A) Indian organization for standardization

B) International organization for standardization
C) International standardization Organization
D) None of the above

66. In Quality management, PDCA means

A) Plan,Do,Check,Act
B) Process,Do,Committee,Act
C) Plan,Do,Committee,Approach
D) None of the above

67. The participation of all members in an organizing, aiming at long term success through customer
satisfaction for the benefits to all members and to the society is known as

A) Quality control
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B) Quality assurance
C) Total quality management
D) Quality team

68. All the person working in the organization ( including managers & workers ) Should be involved in
_______ operation

A) MRP
B) TQM
C) Globalization
D) EOQ

69. Following are the principles of : 1) System approach to management 2) continual improvement 3)
Factual approach to decision making 4) Mutually beneficial supplier relationships

A) Delegations
B) Organizations
C) ISO:9001
D) EOQ

70. Remuneration is based on

A) Performance
B) Responsibility
C) Emotion
D) Designation

71. The unity of authority and plan of action is about

A) Unity of direction
B) Authority
C) Discipline
D) Unity of commands

72. ______ stands for granting of authority to subordinates to accomplish or perform a particular
assignment while operating within pre-decided limits and standards established
A) Delegation of authority
B) Responsibility
C) Effective Delegation
D) Accountability

73. Following business is not coming under sole proprietorship ?

A) Service centre
B) Press shop
C) Hardware unit
D) Insurance company

74. _______ can be defined as goods or cash used (invested) to generate income from business or property
(that can give income)
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A) Finance
B) Capital
C) Budget
D) VAT

75. Which one of the following is not a module of ERP

A) Manufacturing
B) HR
C) Quality Control
D) Supply Chain Management

76. If the company has a goal to accept only .0003% defect, which is the most important modern technique
it should adopt

A) ERP
B) SAP
C) BAAN
D) Sigma

77. Which one of the following is not a part of process industry ?

A) Base metals
B) Plastics
C) Automobiles
D) Petroleum

78.What is not the advantage of globalization

A) Competition
B) Foreign Investment
C) Loss of culture
D) None of the above

79. Plans, policies and procedures are the function of ------

A) Top level management

B) Middle level management
C) Bottom level management
D) Middle and bottom level management

80.______ is an activity which defined the steps of how and when work will be done effectively

A) Directing
B) Planning
C) Organizing
D) Controlling

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81.Which theory was put forward by F.W Taylor ?

A) Management by objectives
B) Industrial management
C) Functional management
D) Scientific management

82.Which of the following post comes under middle level management ?

A) Director
B) Branch Manager
C) Foreman
D) Supervisor

83. Policy making in an industry is a role of

A) Management
B) Administration
C) Public
D) Workers

84. Management is not directly visible instead; its presence is observed in the form of results such as higher
productivity, higher efficiency, disciplined work force,etc . Hence management is _____

A) Tangible
B) Intangible
C) Concrete
D) None of the above

85._______ can be defined as running business by the single owner

A) Proprietorship
B) Partnership
C) Private limited
D) Public limited

86. Motivation based on force is called as ________

A) Negative motivation
B) Positive motivation
C) Extrinsic motivation
D) Intrinsic motivation

87. Workman’s compensation act for workers come in to existence in year

A) 1924
B) 1992
C) 1986
D) 1976

88. Oily or greasy floors is the factor which contributes to accident due to
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A) Workers
B) Management
C) Faulty layout or design of working place
D) Natural disasters

89. Who is incorrect person in the definition of Dependent?

A) Wife
B) Minor son
C) Widowed mother
D) Friend

90. Safety provision/s for workers under Factory act 1948 is/are

A) First-aid appliance
B) Overcrowding
C) Improper ventilation and temperature
D) None of the above

91. Minimum rates of wages may be fixed by

A) By the hours
B) By the day
C) By the month
D) All of the above

92. Financial planning deals with

A) Preparations of financial statement

B) Planning for Capital Issues
C) Preparing budgets
D) All of the above

93.________ is prepared to co-ordinate between various budget

A) Master budget
B) Sales budget
C) Production budget
D) Material budget

94. Custom Duty is charged on

A) Vessels
B) Currency
C) Movable property
D) All

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95. The capital invested in assets which cannot be easily converted into money is called:
A) Fixed capital
B) Rquity capital
C) Working capital
D) None of the above

96. VAT started in Maharashtra from

A) 2003
B) 2004
C) 2005
D) 2006

97. “A’Class items are ______% of the total number of items”

A) 15-25%
B) 10-20%
C) 65-75%
D) None of these

98. Economic order quantity provides the _______ number of units to order.

A) Minimum
B) Maximum
C) Optimum
D) None of the above

99.______ department floats enquiries and processes quotations

A) Sales budget
B) Purchase
C) Production
D) Inventory

100. The parts per million defects are accepted in 6 sigma is

A) 1.4
B) 2.4
C) 3.4
D) 4.4

101. Arrange the activities of ABC analysis in the sequential form i)Make the list of all item as per there
value ii)Find out the percentage of high, medium , and low valued items . iii)Separate and count the number
of costly, medium valued and low valued items iv)Find out and list all items used in the industry.

A) iv,ii,i,iii
B) Iv.i.iii.ii
C) ii,i,iv,iii
D) iv,iii,ii,I

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102. Which statement about kaizen is wrong?

A) It needs heavy investment

B) It gives commitment to quality
C) It is a Japanese technique
D) It is a continuous improvement

103.

A) Six sigma, Quality control tool, Quality assurance tool

B) 5S. Kaizen, Quality assurance tool
C) Six sigma,5S, Kaizen
D) TQM tools

104. The ISO 9000:2000 standards consist of three documents of which ISO 9001 pertains to:

A) Fundamentals
B) Requirements
C) Vocabulary
D) Guidance for performance improvements

105. Service Industry provides.

A) Tangible Goods.
B) Intangible Goods.
C) Manufactured Goods.
D) Imported Goods.

106. Which of the following is negative effect of the globalization?

A) Monopoly in business
B) Increased Job opportunities
C) Technology Transfer
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D) Improved economy

107. Match pairs: 1) Adam Smith (i) Need Hierarchy 2) F.W Taylor (ii)Economics 3) Maslow
(iii)Principle of Management 4)Henry Fayol (iv)Scientific Management

A) 1-(ii),2-(iv),3-(i),4-(iii)
B) 1-(ii),2-(iii),3-(iv),4-(i)
C) 1-(iii),2-(iv),3-(i),4-(ii)
D) 1-(iv),2-(i),3-(ii),4-(iii)

108. The function of administration is………

A) Decision making
B) Policy making
C) Controlling & ensure discipline
D) All of above

109. Top level is know as _________ because all important decision related to whole organization is
taken by top management.

A) Strategical level
B) Tactical level
C) Operational level
D) All of above

110. One disadvantage of forming a partnership is?

A) T he number of partner is limited

B) Specialist skill may be introduced
C) More financial capita is usually is available
D) Any Financial must be shared

111. Co-operative play an important role in:

A) Aerospace
B) Agriculture
C) Manufacturing
D) All of the above

112. Mr. Ram , Mr. Shyam & Mr. Kiran has started a business of automobile in 2003 , in that business Mr.
Ram ,Mr. Shyam & Mr. Kiran have invested Rs 500000/- Lakhs individually. But Mr. Ram & Mr. Shyam
gives full attention towards the business and Mr. Kiran does not gives the attention toward business.so in type
of business who is sleeping partner.

A) Mr. Ram
B) Mr. Shyam
C) Mr. Kiran
D) All of the above

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113. Identify the alternative which can correctly replace blank space in following statement. Statement:
According to Factories acct no adult worker should be required or allowed to work in a factory to more
than------

A) 12 hour in a day
B) 36 hour per week
C) 48 hour per week
D) 10 hour per in a day

114. Which is the health provision.

A) Fencing of machinery
B) Cleanliness
C) Washing faculties
D) None of the above

115. Mr. Praful Kulkarni is working in Birla Pvt. Ltd in the capacity of foreman. Company provided him
certain protecting devices under _____ACT.

A) Factory Act
B) Minimum Wages Act
C) Comensation Act
D) Safety Provision Act

116. Capital required by a company to purchase building for staring the company is called as.

A) Working Capital
B) Fixed captital
C) Laon
D) Debt

117. ______is concerned with procurement, allocation and control of financial resources of a firm.

A) Financial Management
B) Material Management
C) Personnel Management
D) Operation Management

118. A man working in an industry has annual income of 2,50,000 Rs. From all sources, total investment like
PF,PPF,LIC savings 50,000 Rs. Exempted amount for income is 1,50,000 Rs. &income tax rate is 10% upto
3,00,000. Find out amount of income tax paid by that person is

A) 2000
B) 10000
C) 5000
D) 3000

119. Inventory management is part of:

18
 A) Product management
B) Marketing management
C) Material management
D) Sales management

120. Too little Inventory increases the risc of:

A) Out of stock condition
B) More stock
C) Theft
D) Can’t Predict

121. _____Determine quality and timing for material planning

A) EOQ
B) ERP
C) SAP
D) MRP

122. The company have to generate value able financial reports by compiling financial data from every
department of company which includes production, Accounts, Sales, Purchase, personal, Product
development and design. which of the following module shall execute this task.

A) Financial Module
B) H. R. Module
C) Production module
D) Purchase module

123. The Objective of TQM is

A) To improve profitability
B) To improve process
C) To guide management
D) None

124. Work environment clause of ISO 9001:2001________

A) Covers education, training, skill and experience of personnel involved in work .Gives guideline
about their development to maintain quality work.
B) The organization should identify work environment that ensures conformity of service.
C) The organization must plan and develop and process that are required for product realization
D) All of the above

125. Six Sigma methodology defines three core steps

A) Analyze, improve, control

B) Analyze, design, verify
C) Define, measure, analyze
D) Define, measure,control
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126.

A)Ishikawa diagram
B)Control chart
C)Pareto analysis
D)Check list

127. Which one of the following is benefit of the Kaizen?.

A) Improved efficiency
B) Improved Safety
C) Employee Satisfaction
D) All of the above

128. Which ‘S’ of 5S involves cleaning the floors, the walls and the equipment and ensuring all items are
restored to their designated place.

A) Seiri
B) Seiton
C) Seiso
D) Seietsu

129. The _________ provide the information about when to order and how much to order.

A) MRP
B) ERP
C) EOQ
D) Inventory

130. While on a long tour, which are the itmes we take most care of? Certainly, it is the jewerly and the
cash ….. this could be an analogy to :

A) EOQ
B) ABC Analysis
C) Minimum batch demand
D) None

131. Which of the following is advantages of ABC Analysis _____________.

20
 A) ABC analysis results in reduction of annual inventory cost.
B) ABC analysis does not give importance which are critical for production.
C) Cannot be used if some of the items are scarce and not readily available.
D) All

132. Even through permanent working capital is working capital but it’s nature is ______ for every year or
month.

A) Temporary
B) Permanent
C) Variable
D) Increasing basis

133. Principles proposed by _____ are very useful for the contemporary managers to manage their work
efficiently effectively.

A) Controlling
B) Organising
C) Directing
D) Planning

134. Business firms produces and supply wide verities of goods and _______ required by society.

A. Money
B. Service
C. Entities
D. Social service

135. The goal of the enterprise is fulfilled through the use of resources like

A. Man
B. Machine
C. Material
D. All of the above

136. Which of the following was the key aim of scientific management?

A. To increase worker control of production

B. To increase productivity
C. To decrease absenteeism
D. To develop time and motion studies

137. No smoking the factor is an example of ______

A. Rules
B. Programme
C. Project
D. Schedule

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138. Features of project organizations are ___________

A. Can be internally formed

B. Temporary in nature
C. Having less no. of employees
D. All of the above

139. Which of the following comes under government sector?

A. BOSCH
B. TATA
C. L & T Ltd
D. ONGC

140. Identify the alternative which can correctly replace blank spaces following statement. Statement:
According to Factories Act no adult worker should be required or allowed to work a factory for more than

A. 12hrs in a day
B. 36hrs in a week
C. 48hrs in a week
D. 10hrs in a day

141. The necessity of human acts is to protect the interest of:

A. Workers
B. Employee
C. A and B
D. None of the above

142. Fixed capital is required for

A. Land
B. Equipment and machinery
C. Building
D. All

143. Sources of working capital

A. Land
B. Dividends
C. Long term borrowings
D. B&C

144. List the module of ERP

A. Human resources
B. Purchase
C. Finance and accounting
D. All of the above

145. Which of the following is not procurement cost?

A. Transportation cost

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 B. Cost of receiving, inspecting and stock material
C. Cost of processing vendors invoice
D. Storage cost

146. The six sigma methodology endorses

A. DMAIC concept
B. CRM concept
C. Quality circle inspect
D. TQM concept

147. Work out product requirement in detail and set product specification on the basis if customers preference,
cost and profit is a function of _____________

A. Quality management
B. Material management
C. Production management
D. Inventory management

148. In_________ first car was driven on the roads of India.

A) 1790
B) 1857
C) 1898
D) 1909

149. Which type of industries involves large investment and a high level of automation process?

A) Village
B) Small scale
C) Large scale
D) Medium scale

150. The major function of Reserve Bank of India include:

A) Monitoring and controlling banking and functional system throughout India

B) Monitoring GDP and inflation
C) All of the Above
D) None of the Above

151. The art of getting things done by people is called as ______

A) Organization
B) Management
C) Direction
D) Staffing

152. Factors which affects departmentation are……….

A) Product
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 B) Process
C) Function
D) All of the Above

153. Senses of responsibility increases due to __________ provided by seniors

A) Authority
B) Responsibility
C) Initiative
D) Leading

154. The sum that every shareholder gets is known as________

A) Amount
B) Dividend
C) Shares
D) Capital

155. Which of the following is a false statement?

A) Capital is required to start the business

B) Capital is required to run the business
C) Capital is required to expand the business
D) Capital is required to sell the business

156. ________ can be defined as an integrated information system that serves all departments within an
enterprise.

A) MRP
B) MPR
C) ERP
D) EPR

157. Economic order quantity is represented by________

A) QB
B) EO
C) EQ
D) None

158. “A” type of items has ______ importance due to consumption

A) 10-20%
B) 15-25%
C) 40-50%
D) 70-80%

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159. Figure shows working model of quality circle of manufacturing industry working on a tooling problem,
couple of the important step no 5 and 7 are missing in the model. Correctly identify the steps from the
option given below.

A) 5)Presentation of Solution to Management, 7) Selection of best solution

B) 5)Discuss all the solutions, 7) Selection of best solution
C) 5) Selection of best solution, 7) Presentation of Solution to Management
D) 5) Selection of best solution, 7) Test the solution within Q.C.

160. Defects rate in 3 sigma level is________

A) 6210
B) 66807
C) 405
D) 233

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