1. CAPM stands for

(A) Capital Asset Pricing Model

(B) Capital Allocation Pricing Model

(C) Cost Allocation Pricing Model

(D) Cost Asset Pricing Model

Answer: (A)

2. Vertical mergers take place when the firms are involved in

(A) Similar business activities

(B) Similar stage of production or service in the value chain

(C) Different stages of production or services in the value chain

(D) None of the above

Answer: (C)

3. In the Boston Consulting Group (BCG) model, the horizontal and vertical axis represents respectively

(A) Market Demand, Market Price

(B) Market Share, Market Growth Rate

(C) Market Return, Market Risk

(D) Market Supply, Market Securities

4. Assertion (A): The Tourism Emergency Response Network (TERN) is managed by the UNWTO as a leading tourism association of the world.

Reason (R): The TERN does not work under the Risk and Crisis Management (RCM) section of the UNWTO.


(A) Both (A) and (R) are true.

(B) Both (A) and (R) are true, but (R) is not the correct explanation.

(C) (A) is true, but (R) is false.

(D) (R) is true, but (A) is false.

Answer: (C)

5. This consists of names and by names of countries, regions and places. The candidate has to match an item in one list with an item in the other:

List – I                                   List – II

i. ABC Islands               1. African Caribbean, Pacific state (under LOME convention)

ii. ACP States                2. Belgium, Holland, Luxembourg

iii. Low Countries        3. Denmark, Finland, Iceland, Norway, Sweden

iv. Nordic Countries    4. Aruba, Bonaire, Curacao


i ii iii iv

(A) 1 3 4 2

(B) 3 4 1 2

(C) 4 1 2 3

(D) 3 2 4 1

Answer: (C)

6. In which year the daily air service was launched from London to Paris?

(A) 1947

(B) 1919

(C) 1939

(D) 1957

Answer: (B)

7. Which of the following are not to be regarded as tourists according to the recommendations of the World Tourism Organisation?

(A) Diplomats travelling between their country of origin and duty station.

(B) Cruise passengers

(C) Pilgrims

(D) Visiting friends and relatives

Answer: (A)

8. The term “Common Interest Tourism” describes

(A) Group travel by people with the same interests

(B) Group visits between “twinned” towns only

(C) A synonym for visits to friends and relatives

(D) Visits with a purpose significantly shared by the visitor and the visited

Answer: (D)

9. The Serengeti National park is located in which country?

(A) Zimbabwe

(B) Ethiopia

(C) Tanzania

(D) South Africa

Answer: (C)

10. The term “Incentive Tourism” denotes

(A) A travel rewarded with commissions

(B) Travel that has been paid for by a firm as a reward to employees

(C) Travel stimulated by inducements

(D) Travel using vouchers to cover spending enroute

Answer: (B)