Common Management Admission Test (CMAT) — Questions and Answers

Question 1: What is the 'product-market fit' in startups?

Ensuring product quality meets regulatory standards
Choosing the right distribution channel
Matching product price to market norms
The degree to which a product satisfies strong market demand (Correct answer)

Correct answer: The degree to which a product satisfies strong market demand

Product-market fit means the product meets the needs of the target market effectively, evidenced by strong customer engagement and growth.

Question 2: What does GDP stand for in economics?

Gross Domestic Product (Correct answer)
Government Debt Payment
General Development Plan
Global Distribution Point

Correct answer: Gross Domestic Product

GDP stands for Gross Domestic Product, measuring the total value of goods and services produced in a country.

Question 3: Identify the sentence that uses the apostrophe correctly.

Its a beautiful day outside.
The dog wagged it's tail.
The children's toys were scattered. (Correct answer)
The boys' father are coming.

Correct answer: The children's toys were scattered.

'Children's' correctly uses an apostrophe to show possession for an irregular plural.

Question 4: In a certain code, 'ROAD' is written as 'URDG'. How is 'SWAN' written in that code?

UZBQ
VBZQ
VZDQ (Correct answer)
VZCQ

Correct answer: VZDQ

Each letter is shifted forward by 3 positions: S→V, W→Z, A→D, N→Q giving VZDQ.

Question 5: If 8 workers can complete a job in 15 days, how many days will 12 workers take?

10 (Correct answer)
8
12
9

Correct answer: 10

Total work = 8 × 15 = 120 man-days; 12 workers need 120/12 = 10 days.

Question 6: If a boat travels 15 km upstream in 3 hours and 15 km downstream in 1.5 hours, what is the stream's speed?

3 km/h
2.5 km/h (Correct answer)
2 km/h
5 km/h

Correct answer: 2.5 km/h

Upstream speed = 5 km/h; downstream speed = 10 km/h; stream speed = (10−5)/2 = 2.5 km/h.

Question 7: In project management, what does a Gantt chart represent?

Organizational hierarchy
Risk assessment matrix
Financial budget allocation
A visual timeline of project tasks and their scheduled durations (Correct answer)

Correct answer: A visual timeline of project tasks and their scheduled durations

A Gantt chart is a horizontal bar chart showing project tasks, their durations, and timing across a timeline.

Question 8: What is 'corporate governance'?

The system of rules and practices by which a company is directed and controlled (Correct answer)
The strategy for corporate expansion
The government regulations applied to corporations
The financial management of a corporation

Correct answer: The system of rules and practices by which a company is directed and controlled

Corporate governance encompasses the framework of rules, relationships, and practices governing how a company is run and overseen.

Question 9: Select the word that best completes the analogy: AUTHOR : NOVEL :: COMPOSER : ______

Symphony (Correct answer)
Sculpture
Poem
Painting

Correct answer: Symphony

An author creates a novel; similarly, a composer creates a symphony.

Question 10: Which of the following is considered a 'bull market' in finance?

Stable market with no change
Market with high volatility
Market declining by 20%
Market rising by 20% or more (Correct answer)

Correct answer: Market rising by 20% or more

A bull market is characterized by rising prices, typically when a major market index gains 20% or more.

Question 11: A cube is painted red on all faces, then cut into 27 equal smaller cubes. How many small cubes have exactly 2 faces painted?

8
24
12 (Correct answer)
6

Correct answer: 12

Exactly 2 faces painted = edge cubes (not corners); a 3×3×3 cube has 12 edges, each contributing 1 such cube = 12.

Question 12: Which financial statement shows a company's assets, liabilities, and equity at a specific point in time?

Cash Flow Statement
Balance Sheet (Correct answer)
Statement of Retained Earnings
Income Statement

Correct answer: Balance Sheet

The balance sheet provides a snapshot of a company's financial position at a given date.

Question 13: Annual revenue is $1.2M and average accounts receivable is $100,000. What is the receivables turnover ratio?

8
14
12 (Correct answer)
10

Correct answer: 12

Receivables Turnover = Revenue / Avg. Receivables = 1,200,000 / 100,000 = 12.

Question 14: What is the difference between an angel investor and a venture capitalist?

Angel investors invest larger amounts than VCs
Angel investors take majority ownership
Angel investors use their own money while VCs manage pooled funds (Correct answer)
VCs only invest in non-tech companies

Correct answer: Angel investors use their own money while VCs manage pooled funds

Angel investors are high-net-worth individuals investing personal funds, while VCs manage pooled institutional capital.

Question 15: In a certain code '123' means 'soldiers are fit'; '345' means 'fit are healthy'; '61' means 'young soldier'. Which digit in the code means 'are'?

5
4
6
3
1
2 (Correct answer)

Correct answer: 2

Explanation: In the first and the second statements, the common word is 'fit' and the common code digit is 3. So 3 means fit. In the first and the third statements, the common word is 'soldier' and the common code digit is 1. So 1 means soldier. Now, in the first statement, the only remaining word is 'are' and the only remaining digit is 2. Thus in the first statement 2 means 'are'.

Question 16: A table shows product sales by region: North=300, South=250, East=200, West=350. What is the ratio of East to West sales?

4:7 (Correct answer)
2:3
4:5
3:5

Correct answer: 4:7

Ratio = 200:350 = 4:7 in simplest form.

Question 17: Identify the figure of speech in: 'The classroom was a zoo during the unsupervised period.'

Simile
Metaphor (Correct answer)
Personification
Hyperbole

Correct answer: Metaphor

Directly calling the classroom 'a zoo' without using 'like' or 'as' makes this a metaphor.

Question 18: What does 'MVP' stand for in the startup context?

Market Validation Protocol
Most Valuable Partner
Maximum Viable Plan
Minimum Viable Product (Correct answer)

Correct answer: Minimum Viable Product

An MVP (Minimum Viable Product) is the simplest version of a product that delivers value to early customers and enables testing of key assumptions.

Question 19: Choose the word most OPPOSITE in meaning to 'LACONIC'.

Taciturn
Reticent
Verbose (Correct answer)
Concise

Correct answer: Verbose

Laconic means using very few words, so its antonym is verbose, meaning using more words than necessary.

Question 20: In economics, 'opportunity cost' refers to:

The price increase due to inflation
The value of the next best alternative forgone (Correct answer)
The total cost of producing a product
The cost of raw materials

Correct answer: The value of the next best alternative forgone

Opportunity cost is the value of the best alternative given up when making a decision.

Question 21: Each question has a word followed by four choices. From the choices, identify the one that is opposite in meaning (Antonym) to the main word: AGGRAVATE

Ameliorate (Correct answer)
Accommodate
Segregate
Adulterate

Correct answer: Ameliorate

Explanation: AGGRAVATE means: Make (a problem, injury, or offense) worse or more serious. Ameliorate means: Make (something bad or unsatisfactory) better.

Question 22: What is the primary purpose of the International Monetary Fund (IMF)?

To develop new monetary currencies
To fund infrastructure projects in developing nations
To regulate global trade
To stabilize exchange rates and provide financial assistance to countries (Correct answer)

Correct answer: To stabilize exchange rates and provide financial assistance to countries

The IMF promotes global monetary cooperation and provides financial assistance to countries facing balance-of-payments problems.

Question 23: Identify the type of sentence: 'Although he studied hard, he failed the examination.'

Compound
Compound-Complex
Simple
Complex (Correct answer)

Correct answer: Complex

The sentence has one independent clause and one dependent clause introduced by 'although,' making it complex.

Question 24: What is the effective annual rate (EAR) for a 12% nominal rate compounded monthly?

12.68% (Correct answer)
12.36%
13%
12%

Correct answer: 12.68%

EAR = (1 + 0.12/12)^12 − 1 = (1.01)^12 − 1 ≈ 12.68%.

Question 25: What is 'intrapreneurship'?

Starting a new venture inside a university
Entrepreneurship between two international firms
A form of social entrepreneurship
Entrepreneurial behavior within an established organization (Correct answer)

Correct answer: Entrepreneurial behavior within an established organization

Intrapreneurs behave like entrepreneurs within a larger company, innovating and taking risks to develop new products or services.

Question 26: Which of the following best represents 'divergent thinking'?

Evaluating a list of options based on predetermined scoring criteria
Arriving at a single correct answer through sequential logical steps
Generating multiple possible solutions to an open-ended problem (Correct answer)
Selecting the most efficient process from a set of existing options

Correct answer: Generating multiple possible solutions to an open-ended problem

Divergent thinking is a creative thought process that generates multiple ideas or solutions for an open-ended problem, contrasting with convergent thinking that seeks a single correct answer.

Question 27: A statement says: 'All honest people are trusted.' Its contrapositive is:

Some dishonest people are trusted
All trusted people are honest
All untrusted people are dishonest (Correct answer)
No honest person is trusted

Correct answer: All untrusted people are dishonest

The contrapositive of 'If P then Q' is 'If not Q then not P': if not trusted, then not honest.

Question 28: The first two words are related to each other in some way. Find out the relationship and apply the same relation ship to the third word to identify the fourth word. POT : TOP :: TRAP : ?

ARPT
PART (Correct answer)
TAPR
RAPT

Correct answer: PART

Explanation: 'POT' is reversed to get 'TOP' 'TRAP' is reversed to get 'PART'

Question 29: What is 'venture capital'?

Government grants for new businesses
Bonds issued by startup firms
Loans offered by banks to startups
Private investment funding for early-stage high-growth companies (Correct answer)

Correct answer: Private investment funding for early-stage high-growth companies

Venture capital is private equity funding provided to early-stage startups with high growth potential in exchange for equity.

Question 30: A line graph shows revenue growth: Q1=$1M, Q2=$1.2M, Q3=$1.5M, Q4=$1.8M. Which quarter had the highest absolute growth?

Q3 to Q4 (Correct answer)
Q1 to Q4
Q2 to Q3
Q1 to Q2

Correct answer: Q3 to Q4

Q3→Q4 growth = $0.3M vs $0.2M (Q1→Q2) and $0.3M (Q2→Q3); Q3→Q4 ties Q2→Q3 but is still the highest single quarter.

Common Management Admission Test (CMAT)

CMAT is a national-level MBA entrance exam conducted by NTA for admission to AICTE-approved management programs across India. It assesses candidates across five domains: quantitative aptitude, logical reasoning, language comprehension, general awareness, and innovation & entrepreneurship.

Questions

55 min

Time Limit

70%

To Pass

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