Common Management Admission Test (CMAT) — Questions and Answers

Question 1: Which of the following is considered a 'bull market' in finance?

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

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 2: Two pipes can fill a tank in 12 hours and 18 hours respectively. How long will they take together?

7.2 hours (Correct answer)
8.0 hours
6.0 hours
9.0 hours

Correct answer: 7.2 hours

Combined rate = 1/12 + 1/18 = 5/36; Time = 36/5 = 7.2 hours.

Question 3: What does 'SMART' stand for in goal setting?

Simple, Manageable, Assigned, Reviewed, Tested
Strategic, Meaningful, Actionable, Realistic, Trackable
Structured, Monitored, Approved, Ranked, Timed
Specific, Measurable, Achievable, Relevant, Time-bound (Correct answer)

Correct answer: Specific, Measurable, Achievable, Relevant, Time-bound

SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound — a framework for effective goal setting.

Question 4: Which of the following best describes 'Foreign Direct Investment' (FDI)?

Buying foreign currency
Lending money to foreign governments
Investing in foreign stocks via an exchange
A company establishing business operations in another country (Correct answer)

Correct answer: A company establishing business operations in another country

FDI involves a firm making a physical investment, such as building a factory, in a foreign country.

Question 5: In decision making, 'bounded rationality' refers to:

Always selecting the mathematically optimal solution
Making decisions with unlimited and perfect information
Making decisions within the limits of available information and cognitive capacity (Correct answer)
Using only mathematical models to reach decisions

Correct answer: Making decisions within the limits of available information and cognitive capacity

Bounded rationality, coined by Herbert Simon, recognizes that decision makers operate with limited information, time, and cognitive resources rather than perfect rationality.

Question 6: A table shows quarterly profits (in $M): Q1=2.5, Q2=3.0, Q3=3.5, Q4=4.0. What is the compound growth rate from Q1 to Q4?

About 20%
About 17% (Correct answer)
About 10%
About 60%

Correct answer: About 17%

CAGR over 3 periods = (4.0/2.5)^(1/3) − 1 ≈ 1.6^0.333 − 1 ≈ 17%.

Question 7: If inflation is 6% and nominal interest rate is 9%, what is the real interest rate (approximate)?

4%
1.5%
3% (Correct answer)
2.5%

Correct answer: 3%

Real interest rate ≈ Nominal rate − Inflation rate = 9% − 6% = 3%.

Question 8: Which U.S. regulatory body oversees securities markets and protects investors?

CFTC
FTC
SEC (Correct answer)
FDIC

Correct answer: SEC

The Securities and Exchange Commission (SEC) regulates the securities industry and enforces federal securities laws.

Question 9: Which problem-solving technique involves generating a large number of ideas without initial judgment or criticism?

Cost-benefit analysis
Brainstorming (Correct answer)
Delphi method
Root cause analysis

Correct answer: Brainstorming

Brainstorming is a creative technique where participants generate a large number of ideas freely, with evaluation deferred to a later stage to encourage creativity and volume.

Question 10: Find the missing number: 4,9, 17, 35, 69, _____

80
150
98
139 (Correct answer)

Correct answer: 139

Explanation : The pattern is: (number) x 2 + 1, (obtained number) x 2 -1, (obtained number) x 2 + 1, (obtained number) x 2 - 1 and so on.

Question 11: A train travels 60 km in the first hour, 80 km in the second hour, and 100 km in the third hour. What is the pattern and how far will it travel in the 4th hour?

110 km
140 km
130 km
120 km (Correct answer)

Correct answer: 120 km

The distance increases by 20 km each hour, so the 4th hour distance is 100 + 20 = 120 km.

Question 12: Complete the series: 2, 6, 12, 20, 30, ?

42 (Correct answer)
38
44
40

Correct answer: 42

The pattern is n(n+1): 1×2, 2×3, 3×4, 4×5, 5×6, so the next term is 6×7 = 42.

Question 13: From the choices, select the most suitable synonym (a word that means the same) for the main word: ABSTRACT

Summary (Correct answer)
Peculiar
Normal
Diagnostic

Correct answer: Summary

Explanation: ABSTRACT means: Existing in thought or as an idea but not having a physical or concrete existence.

Question 14: Which option correctly identifies the tone of this sentence: 'Despite years of dedicated service, the employee was dismissed without so much as a word of thanks.'

Celebratory
Optimistic
Indignant (Correct answer)
Satirical

Correct answer: Indignant

The sentence conveys resentment and moral outrage, which is characteristic of an indignant tone.

Question 15: What is 'market capitalization' of a company?

Share price multiplied by total outstanding shares (Correct answer)
Total assets minus total liabilities
Total revenue earned in a year
Total capital invested by founders

Correct answer: Share price multiplied by total outstanding shares

Market cap = current share price × total number of outstanding shares.

Question 16: What is the 'product-market fit' in startups?

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

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 17: Rohit is taller than Amit but shorter than Sushma. Kapil is taller than Preeti but shorter than Amit. Dinesh is taller than Kapil but shorter than Sushma. Who among them is the tallest?

Kapil
Dinesh
Sushma (Correct answer)
Rohit

Correct answer: Sushma

Explanation: Priti < Kapil < Amit < Rohit < Sushma Note: Dinesh is taller than Kapil but shorter than Sushma. Thus Sushma is the tallest of all, but Dinesh's height with respect to Amit and Rohit is not known.

Question 18: Choose the word that is most SIMILAR in meaning to 'GREGARIOUS'.

Cautious
Solitary
Sociable (Correct answer)
Aggressive

Correct answer: Sociable

Gregarious means fond of the company of others, making sociable its closest synonym.

Question 19: A 20% increase followed by a 20% decrease results in what net change?

−2%
−4% (Correct answer)
0%
−5%

Correct answer: −4%

Net factor = 1.20 × 0.80 = 0.96, representing a 4% decrease.

Question 20: Fill in the blank with the correct preposition: 'She has been working _______ this project since Monday.'

at
on (Correct answer)
for
with

Correct answer: on

The correct preposition is 'on' when referring to working on a project.

Question 21: Select the word that best completes the analogy: AUTHOR : NOVEL :: COMPOSER : ______

Sculpture
Symphony (Correct answer)
Poem
Painting

Correct answer: Symphony

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

Question 22: A table shows product sales by region: North=300, South=250, East=200, West=350. What is the ratio of East to West sales?

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

Correct answer: 4:7

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

Question 23: The S&P 500 is an index tracking the performance of how many large U.S. companies?

300
1000
500 (Correct answer)
100

Correct answer: 500

The S&P 500 tracks 500 large-cap U.S. publicly traded companies across various sectors.

Question 24: A table shows employee counts by department: HR=50, Finance=80, IT=120, Sales=150. What percentage are in IT?

32%
35%
30% (Correct answer)
28%

Correct answer: 30%

Total = 400; IT % = 120/400 × 100 = 30%.

Question 25: In venture capital, what is a 'unicorn'?

A startup that fails within its first year
A publicly listed tech company
A startup backed by government funds
A privately held startup valued at $1 billion or more (Correct answer)

Correct answer: A privately held startup valued at $1 billion or more

A 'unicorn' refers to a privately held startup company valued at over $1 billion, a term coined by venture capitalist Aileen Lee.

Question 26: What is 'management by objectives' (MBO)?

Setting objectives only at senior management level
A process where managers and employees jointly set goals and measure performance against them (Correct answer)
Using financial objectives to evaluate all business decisions
Managing employees strictly by following procedures

Correct answer: A process where managers and employees jointly set goals and measure performance against them

MBO, introduced by Peter Drucker, aligns organizational goals with individual performance by involving employees in goal-setting.

Question 27: 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

Adulterate
Accommodate
Ameliorate (Correct answer)
Segregate

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 28: What is 'organizational culture'?

The shared values, beliefs, and behaviors that shape how work is done (Correct answer)
The cultural backgrounds of employees
The formal structure and hierarchy of an organization
The corporate social responsibility initiatives of a company

Correct answer: The shared values, beliefs, and behaviors that shape how work is done

Organizational culture represents the collective values, norms, and behaviors that define how things are done in a company.

Question 29: What does 'SWOT' stand for in strategic planning?

Strategy, Work, Objectives, Targets
Sales, Workforce, Operations, Technology
Systems, Workflow, Output, Testing
Strengths, Weaknesses, Opportunities, Threats (Correct answer)

Correct answer: Strengths, Weaknesses, Opportunities, Threats

SWOT analysis evaluates an organization's Strengths, Weaknesses, Opportunities, and Threats.

Question 30: What is 'change management' in an organizational context?

Changing the leadership team
A structured approach to transitioning individuals and organizations from a current state to a desired future state (Correct answer)
Financial restructuring of a company
Updating technology systems

Correct answer: A structured approach to transitioning individuals and organizations from a current state to a desired future state

Change management provides a systematic process for helping organizations and individuals navigate transitions and transformations.

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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These practice questions were written with AI tools. They are not real exam questions. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

cdnbbsr.s3waas.gov.in — Test delivery, eligibility, fees, passing score, time limit · verified Oct 2026
nta.ac.in — Exam dates · verified Oct 2026
cmat.nta.nic.in — Exam information · verified Nov 2026