Business Administration Papers
Year 2000 TIME ALLOWED: 3 HOURS MAXIMUM MARKS: 100 NOTE: Attempt FIVE questions in all, including question No.7. Which is Compulsory. Select ONE question from each PART. All questions carry equal marks. PART - I: (MANAGEMENT) 1. Define strategic and operational planning and identify the important attributes of strategic planning. 2. "Leaders are born, not made". Do you agree or disagree? Give reasons. How and why? PART-II: (PRINCIPLES OF MARKETING) 3. What do you understand by 4Ps in marketing and discuss the key differences and similarities between selling and marketing concepts? 4. Describe the nature and scope of global marketing and discuss the role of MNCs (Multinational co.) in developing countries. PART-III: (FINANCIAL MANAGEMENT) 5. Explain the following concepts/terms with examples: (a) Net Present Value (NPV) (b) Internal Rate of Return (IRR) (c) Price earning ratio (d) Dilutive Securities (e) 6Ms 6. The following information has been taken from Mirza Co‟s unadjusted and adjusted Trail balances: Unadjusted Adjusted Debit Credit Debit Credit Prepaid Insurance 6,200 - 5,900 Salaries Payable - - - 1400 Office supplies 900 -- 800 -
The adjusting entries must have included these Items: Give reasons regarding how and why: (a) A 300 debit to prepaid insurance, a 1400 credit to salaries payable and a 100 credit to office supplies. (b) A 300 credit to prepaid insurance, a 1400 debit to salaries payable, and 100 credit to office supplies. (c) A 300 debit to insurance expense, a 1400 debit to salaries expense and a 100 debit to office supplies expense. (d) A 300 insurance expense, a 1400 credit to salaries payable, and a 100 debit to office supplies OR Adjust in your own understanding? COMPULSORY QUESTION 7. Write only the correct answer in the Answer Book. Don‟t reproduce the questions: (1) Public Accountants generally perform these services: (a) Income tax services, Management Advisory services, and independent auditing services (b) Internal auditing, Income tax services and management controlling. (c) Public accounting, private accounting and budgeting. (d) None of the above is correct. (2) Identify the organization created by Congress to regulate security markets including flow of information from companies to public: (a) TVM (b) NPV (c) IRR (d) SEC (3) Select the term that describes a cash distribution to a Corporation‟s Stockholders: (a) Paid out Capital (b) Cash Management (c) A dividend (d) None of these (e) All of the above are correct (4) Frederick Winslow Taylor work/book entitled the principles of Scientific Management is published, in: (a) 1875 (b) 1901 (c) 1911 (d) None of these (5) One of the most successful Industrialists and the father of Modern Personnel Management is: (a) F.W. Taylor (b) James Watt (c) C. Babbage (d) Robert Owen
(6) Who has the major Contributions in the Theory of Bureaucracy: (a) Henry Gantt (b) Hanri Fayal (c) W.D. Scatt (d) Max Weber (e) None of these (7) Which one, of the following MNCs (Multinational Co.) has the higher revenues during mid. 1990s: (a) General Motor (b) IBM (c) AT &T (d) General Electric (e) None of the above (8) Give the, name of the author who has the major contributions in the field of marketing: (a) H. Koontz (b) W.J. Stanton (c) P.B. Miller (d) Gitt Man (e) All of these (9) The profit margin is a ratio between the corporation‟s net income and: (a) Total expense (b) Total assets (c) Cost (d) Total revenues (e) None of the above (10) MNCs are responsible for the majority of Foreign Direct Investment (FDIs) and have a higher revenues than the national income of some of the countries they serve: (a) Fully agreed (b) Not agreed (c) It is not possible (d) None of these (11) Earned but uncollected revenues, that are recording the adjusted process, recorded with a credit to the revenues and debit to the expense is called: (a) Adjusted Trail balance (b) Expenses (c) Accrued revenues (d) None of these (12) Which one of the following is not a part/variable of the marketing Mix (4Ps): (a) Product (b) Price (c) Place (d) Person (e) None of these (13) The major steps in the accounting cycle are the following: (a) The procedure used in worksheet (b) Begin with Trail Balance (c) Completed only once in business life (d) None of the above (e) All of these (14) Which of the following items is not unique to the financial statements of merchandising Companies?
(a) Cost of good sold (b) Gross profit (c) Account receivable (d) Net sales (e) All of the above (f) None (15) The repairs made to keep a plant/asset in normal and good operating condition are called: (a) Plant Management (b) Operation Management (c) Ordinary repairs (16) A company that owns more than 50‟s of another company and controls that corporation is known as: (a) Subsidizing (b) Consolidated CO. (c) None of these (17) The process of individual growth in the full utilization of a person‟s managerial capabilities is called management development: (a) True (b) False (18) Promotion is not a part of marketing: (a) Agreed (b) Not agreed (c) None of these (19) A way of analyzing leadership style where leaders are classified on a grid with TWO dimensions is called: (a) Managerial grid (b) Two way theory (c) None (20) Robert Owen is known as the Father of Modern Personnel Management: (a) Yes (b) No (c) May be Taylor Year 2001 FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2001. BUSINESS ADMINISTRATION TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100 NOTE: Attempt FIVE questions in all, including question No. 7 which is COMPULSORY. Select at least ONE QUESTION from each of the PARTS I, II AND III. All questions carry EQUAL marks. PART – I (MANAGEMENT) 1. Explain the SELECTION PROCESS used in modern organizations. What techniques can be used to improve the interviewing process used as a selection technique? 2. If you were a manager, would you decentralize authority? State several reasons for your
answer. How would you make that you did decentralize too much? PART – II (PRINCIPLES OF MARKETING) 3. Explain how the following macro-environmental forces affect the marketing programmes of business organizations: (5+15) (a) Technology (b) Economic Conditions (c) Political and Legal Forces 4. Once a company decides to target a particular country, it has to determine the best mode of entry”. List the alternative available and explain the natures, advantages and limitations of any TWO involving more commitment, risk, control and profit potential. PART – III (FINANCIAL MANAGEMENT) 5. Explain the following concepts/terms with examples: (a) Debt-to-Enquiry Ratio (b) Return on Equity (ROE (c) The Economic Order Quantity (EOQ) (d) Cash Budget (e) Classification of Working Capital on the basis of Time 6. Selected financial ratios for XYZ Co. are as follows.. _________________________19 x 1 ______ 19 x 2 _____19 x 3 Current ration ______________ 4.2 ________ 2.6 _______ 1.7 Acid test ration _____________ 2.1 ________ 1.0 ______ .6 Debt-to-total assets _________ 23% _______ 33% ______ 47% Inventory Turnover __________ 8.7x _______ 5.4x ______ 3.5x Average collective period _____33 days _____ 36 days ___ 49 days Total asset turnover _________ 3.2x _______ 2.6x ______ 1.9% Net profit margin ___________ 3.8% _______ 2.5% ______ 1.4% Return on investment (ROI) ___ 12.1% ______ 6.5% ______ 2.8% Return on Equity (ROE) _______ 15.7%______ 9.7% ______ 5.4% (a) Why did return on investment decline? (b) Was the increase in debt a result of greater current liabilities or of greater long-term? Explain.
COMPULSORY QUESTION 7. Write only correct answer in the Answer Book. Do not reproduce the questions. (1)Most preferred stock pays a fixed dividend at regular intervals. (a) True (b) False (2) Any increase in an asset item is a source of funds. (a) True (b) False
(3) Depreciation is a book-keeping entry that allocates the cost of assets against income but does not involve any movement of capital. (a) True (b) False (4) The maturity of a security relates to the owner‟s ability to convert it into cash on short notice: (a) True (b) False (5) The credit period represents the period of time during which a cash discount can be taken on short notice. (a) True (b) False (6) Which ratio is computed with the help of the following? Cost of goods sold Inventory (a) Receivable turnover (b) Times interest earned (c) Inventory Turnover (d) None of these (7) ________ is the right that is delegated to an individual or a department to control specific processes, practices, policies and other matters relating to activities undertaken by person in other departments. (a) Line authority (b) Functional Authority (c) Line and Staff Authority (d) None of these (8) Decentralization is the tendency to disperse decision making in an organized structure: (a) True (b) False (9) Programmes are plans which are general statements or understandings that guide or channel thinking in decision making: (a) True (b) False (10) _______ is that part of managing that involves establishing an international structure of roles for people to fill in an organization: (a) Leading (b) Controlling (c) Planning (d) None of these (11) Henri Fayol applied the principle of „Division of Work‟ to all kinds of work, managerial
as well as technical. (a) True (b) False (12) ________ spell out specific required actions or non-actions, allowing no discretion: (a) Procedures (b) Budgets (c) Rules (d) None of these (13) Business buyers are as geographically dispersed as final consumers. (a) True (b) False (14) The distribution between a consumer good and an industrial good is based on the purpose for which product is purchased: (a) True (b) False (15) Intensive distribution occurs when the product is stocked in as many outlets as possible. (a) True (b) False (16) Merchant wholesalers are independently owned business that do not own (take title to) the goods they sell: (a) True (b) False. (17) Which of the following elements in a compensation package provides the greatest amount of incentive for salespersons? (a) Salary (b) Fringe Benefits (c) Commissions (d) Use of Company Vehicle (18) The process whereby the seller distinguishes between market segments, selects one or more of these segments, and develops products and marketing-mixes tailored to each segment is called _______ marketing. (a) Mass (b) Target (c) Product Variety (d) Service (19) Goods that the consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style are called _______ goods. (a) Shopping (b) Specialty (c) Unsought
(d) Convenience (20) Product ______ is a period of rapid market acceptance and increasing profits. (a) Development (b) Introduction (c) Growth (d) Maturity Year 2002 FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2002. BUSINESS ADMINISTRATION TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100 NOTE: Attempt FIVE questions in all, including question No. 7 which is COMPULSORY. Select at least ONE QUESTION from each of the PARTS I, II AND III. All questions carry EQUAL marks. PART – I (MANAGEMENT) 1. What is organizational culture? Discuss the sources of organizational culture. 2. The ability to manage conflict is undoubtedly one of the most important skills a manager needs. Discuss what kinds of conflicts arise in the organizations and how managers can develop effective conflict resolutions skills.
PART – II (PRINCIPLES OF MARKETING) 3. Discuss the evolution of „marketing concept‟. Compare „marketing concept‟ with „selling concept‟. 4. Describe the process of formulation of marketing strategy.
PART – III (FINANCIAL MANAGEMENT) 5. Explain the following concepts/terms with examples: Cash conversion cycle (CCC) Book value per share Modified internal rate of return (MIRR) Yield to maturity (YTM) Business Risk Vs. Financial Risk 6. The following data apply to A.L. Kaiser & Company (millions of dollars)
Cash and marketable securities $100.00 Fixed assets $283.50 Sales $1000.00 Net income $50.00 Quick ration 2.0 X Current ratio 3.0 X Average collection period 40 days Return on equity 12% Kaiser has no preferred stock – only common stock equity, current liabilities and long term debt. Required: Find Kaiser‟s 1. Account receivable (A/R) 2. Current liabilities 3. Current assets 4. Total assets 5. Return on assets (ROA) 6. Common stock equity and 7. Long term debt Year 2003 FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2003. BUSINESS ADMINISTRATION TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100 NOTE: Attempt FIVE questions in all, including question No. 7 which is COMPULSORY. Select at least ONE QUESTION from each of the PARTS I, II AND III. All questions carry EQUAL marks. PART – I (MANAGEMENT) 1 Compare and contrast the Maslow and Herzberg theories of motivation. On what grounds has the Herzberg theory been criticized? 2. How is staffing function related to other managerial functions and activities? List and evaluate external factors affecting staffing.
PART – II (PRINCIPLES OF MARKETING) 3. “Marketing is a total system of business activates designed to plan, price, promote and distribute want-satisfying products and services to present and potential customers.”
Comment on this statement comprehensively. 4. Explain the following terms: (a) Sales promotion policies (b) Global marketing (c) Marketing mix variable and marketing environment variables
PART – III (FINANCIAL MANAGEMENT) 5 What is meant by the term “the time value of money”? How is the concept of “present value” related to the time value of money? 6. (a) Discuss the effects of the three approaches to working capital financing policy. (b) Assuming that current ratio is 2. State in each of the following cases, whether the ratio will improve, or decline, or have no change: (i) Payment of current liabilities (ii) Purchase of fixed assets (iii) Cash collected from customers (iv) Issue of new shares (c) A corporation has total assets of Rs. 500,000 and its equity is Rs. 200,000. what is the Company‟s debt-to-total asset ratio?
COMPULSORY QUESTION 7. Write only “True” or “False” in the Answer Book. Do not reproduce the questions. (1)Business risk is influenced by the firm‟s decision to use debt in its financial structure. (2) The most important function of management is controlling. (3) A short term creditor would consider liquidity ratios to be more important than efficiency ratios. (4) According to Maslow, when a need is satisfied, it tends to lose its ability to motivate. (5) The term marketing mix refers to the degree of advertising Vs personal selling used to market product. (6) The difference between an agent and a merchant wholesaler is that an agent always takes title but a merchant whole saler does not. (7) The management of working capital is required because of a lack of short term synchronization between demand and supply. (8) A manager who believes that people inherently dislike work probably accepts McGregor‟s Theory X. (9) Inventory carrying costs can be minimized by carrying fewer units in inventory. (10) A balance sheet is an accounting report used solely for the corporate form of business. (B) Write only correct answer in the Answer Book. Do not reproduce the
questions. (11) For management, budgeting is perhaps the most powerful. (a) Forecasting tool (b) Control device (c) Hiring tool (d) Accounting measure (12) The income statement is a summary of: (a) Revenue and expenses (b) Assets, liabilities and capital (c) Increases and decreases in capital (d) None of these (13) One benefit of using ration analysis when interpreting financial statements is that: (a) Rations facilitate comparisons between different companies. (b) All ratios have exact standard values with which performance can be compared. (c) Ratios take into account all the specific factors affecting particular companies and industries. (d) None of these (14) Planting and policy making are primarily functions of: (a) Top management (b) Middle management (c) Operating management (d) None of these (15) An informal organization often exists within a business because: (a) Not all relationships can be specifically defined. (b) Small organizations do not necessarily emphasize strict adherence to line authority. (c) Human behavior naturally crosses established authority lines. (d) All of these (16) In marketing, selling and buying would be called the: (a) Primary functions (b) Exchange functions (c) Profit functions (d) Critical functions (17) Institutional advertising is: (a) Aimed only at people in institutions (b) Run only by institutions (c) Designed to promote a type of product rather than a particular brand. (d) Designed simply to show that the firm is a good place to do business. (18) The current ration of a firm having Rs. 25,000 of current assets, Rs. 30,000 of fixed assets, Rs. 5000 of current liabilities and Rs. 10,000 of fixed liabilities would be: (a) 5:1 (b) 7:1
(c) 10:1 (d) None of these (19) The organizational form that replaces individual authority at all levels with group representation is: (a) Line (b) Line and staff (c) Functional (d) Committee (20) Working Capital may be expressed as: (a) Current assets minus current liabilities (b) Current and fixed assets minus current and fixed liabilities (c) Current assets over current liabilities (d) Current and fixed assets over current and fixed liabilities Year 2004 FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2004. BUSINESS ADMINISTRATION TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100 NOTE: Attempt FIVE questions in all, including question No. 7 which is COMPULSORY. Select at least ONE QUESTION from each of the PARTS I, II AND III. All questions carry EQUAL marks. PART – I (MANAGEMENT) 1. How does effective managing take advantage of motivation? Explain any Three Special Motivational Techniques used by managers. 2. Briefly explain the BASIC CONTROL PROCESS. Also explain the requirement for effective controls. (5+15) PART – II (PRINCIPLES OF MARKETING) 3. Explain the several types of channels available to the manufacturer. What influence does each of the following factors have on the choice of marketing channels? (5+15) (a) the product (b) the market (c) the manufacturer‟s organization 4. Explain the following management activities relating to staffing and operating a sales force: (a) Recruitment and Selection
(b) Training a sales force (c) Supervising a sales force
PART – III (FINANCIAL MANAGEMENT) 5. The Royal Corporation manufactures only one product: Yewa. The single raw material used it Yewa is the larg. For each Yewa manufactured, 12 largs are required. Assume that the company manufactures 150,000 Yewas per year, that demand for largs is perfectly steady throughout the year, that it consts Rs. 200 each time largs are ordered, and the carrying costs are Rs. 8 per larg per year. (a) Determine the economic order quantity (EOQ) of largs. (7) (b) What are total inventory costs for Royal (total carrying costs plus total ordering costs)? (7) (c) How many times per year would inventory be ordered? (7) 6. (a) Why might it be possible for a company to make large operating profits, yet still be unable to meet debt payments when due? What financial Ratios might be employed to detect such a situation? (10) (b) Briefly explain the key variable considered by the portfolio manager of a company for purchasing marketable securities. (10) COMPULSORY QUESTION 7. Write only “True” or “False” in the Answer Book. Do not reproduce the questions. (1) In a large corporation, the firm‟s owners are usually its top managers. (2) The basic information needed to construct a flow of funds statement is found on the income statement. (3) The operating break-even point is the point at which operating profits equal revenues minus operating costs. (4) A sinking fund is a poorly performing mutual fund whose net asset value is declining. (5) Penetration Pricing is used when a marketer introduces a new product at a relatively high price. (6) The most common channel for consumer products is manufacturer-retailer-consumer. (7) In the classification of consumer products, convenience products are usually more expensive than shopping products. (8) During the maturity stage of the PLC, sales increase at faster rate than during any other stage. (9) A wide span of management results in few organizational levels, and a narrow span results in many levels. (10) The LINE relationship involves making decisions and acting on them. (11) Data is defined as “formal system of gathering, integrating, comparing, analyzing, and dispersing information internal and external to the enterprise in a timely, effective and efficient manner”. (12) A manager who believes that people inherently dislike work probably accepts McGregor‟s Theory X. (B) Write only the correct answer in the Answer Book. Do not reproduce the
questions. (13) If a manufacturer gives a 30 percent discount to retailers and a 10 percent discount to wholesalers, which type of discount is being given? (a) Quantity (b) Cash (c) Functional (d) Seasonal (14) Publicity differs from advertising in as much as: (a) It is directed at large numbers of consumers. (b) Its message is of a non personal nature. (c) It is carried by the mass media. (d) It is a non paid Form of reaching the public. (15) In which stage of the PLC are promotion expenses per product item usually highest? (a) Introduction (b) Growth (c) Maturity (d) Decline (16) Which of the following is not a disadvantage of using a Committee? (a) High cost in time and money (b) Splitting responsibility (c) Group deliberation and judgment (d) Compromise decisions (17) Identify the Organization established by our Federal government to regulate security markets: (a) SBP (b) SEC (c) NAB (d) NFC (18) If the credit terms are 2/10, net 30 and the amount of invoice is Rs. 4000, how much is the discount if the invoice is paid in 20 days? (a) Zero (b) Rs. 30 (c) Rs. 60 (d) Rs. 120
(19) Which of the following is not part of the promotion-mix? (a) Public relations (b) Product planning (c) Personal selling (d) Advertising (20) Selling activities include:
(a) Sales presentations (b) Demonstrations (c) Handling objections (d) Closing the sale (e) None of these Year 2005 FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2005. BUSINESS ADMINISTRATION TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100 NOTE: Attempt FIVE questions in all, including question No. 7 which is COMPULSORY. Select at least ONE QUESTION from each of the PARTS I, II AND III. All questions carry EQUAL marks. PART – I (MANAGEMENT) 1. What is leader ship? Discuss any two theories of leadership. 2. Briefly explain planning. Discuss various steps involved in planning process in any business organization.
PART – II (PRINCIPLES OF MARKETING) 3. Explain briefly marketing. Describe various functions of marketing? 4. Explain global marketing discuss its significance for the modern business organization of 21st century.
PART – III (FINANCIAL MANAGEMENT) 5. Star corporation is considering a project with a cost of Rs. 40,000/= net investment and net operating cash inflows of Rs. 11,652/= each year for the next five years. The firm uses 10% discount rate for projects with similar risks. (a) What is projects net present value? (7) (b) What is its initial rate of return? (7) (c) Should the project be accepted assuming that funds are available? (6) 6. Royal corporation current assets inventories and current liabilities for four year period are as follows: Item 2000 2001 2002 2003 Current assets Rs. 20,000 Rs. 22,400 Rs. 25,600 Rs. 28,100 Inventories Rs. 8,200 Rs. 10,000 Rs. 12,500 Rs. 14,000
Current liabilities Rs. 10,000 Rs. 10,200 Rs. 10,700 Rs. 11,000 a. Calculate the firm‟s current and quick ratios for each year. (10) b. Discuss the firm‟s liquidity position over the four year period of time. (10)
COMPULSORY QUESTION 7. Write only “True” or “False” in the Answer Book. Do not reproduce the questions. (1)Planning initiates other functions of management. (2) Managements make things to happen. (3) The ultimate criterion of control is the extent that activities are complete in ways that lead to more profits. (4) Computer Technology helps the management but does not replace the management. (5) Promotional mix is also known as communication mix. (6) Marketing environment is made up of micro-environment and macro-environment. (7) Promotional mix is the part of marketing mix. (8) Marketing strategy consists of specific strategy for target markets, positioning, the marketing mix and marketing expenditure levels. (9) A Financial manager has a full control over its firm‟s stock price. (10) Liquidity ratios measure a firm‟s ability to meet short term obligations. (11) The internal rate of return method is the most widely used capital budgeting techniques. (12) Stock exchange facilitates investment in real assets by providing secondary market to the financial securities. (B) Write only correct answer in the Answer Book. Do not reproduce the questions. (13) The organizing function of management includes: (a) How tasks to be grouped. (b) Conflict resolution among sub-ordinates. (c) Comparison of actual results with a budget. (d) Definition of organization‟s goals. (14) The key to motivating today‟s diversified work force lies in: (a) Creativity (b) Goal setting (c) Support (d) Flexibility (15) Control should be placed: (a) Where they are cost-effective (b) On all activities (c) Where there are problem areas (d) On the single most important
(16) The marketing logic by which the business unit hopes to achieve its marketing objective is called: (a) Business strategy (b) Marketing strategy (c) Production & distribution strategy (d) All of these (17) Strategic planning is the process of developing a formal strategy for: (a) Identifying clear objectives (b) Long run survival & growth (c) Continuity & Consistency (d) All of these (18) Who are the true owners of Corporation? (a) Debt holder (b) Common stock holders (c) Managers of the firm (d) Board of directors (19) What does an efficient port folio provide? (a) Highest return for a given amount of risk (b) Least rick for a given level of return (c) Highest possible return and least amount of risk (d) Both „a‟ and „b‟ (20) The economic order quaintly (ECQ) increases when which of the following increases? (a) Sales (b) Ordering costs (c) Carrying costs (d) Both „a‟ and „b‟ Year 2006 PAPER OF BUSINESS ADMINISTRATION– CSS 2006 Attempt any five questions including Question No.7, which is compulsory. Select at least one question from each part. Extra attempt of any question will not be considered. PART I (MANAGEMENT ) Q.1 (a) what is negotiation ? What are the major negotiation strategies ? How do the two major bargaining strategies differ? (4+10+6) Q.2 How can a manager serve as change agent? Describe the major organizational development techniques used to facilitate the change process. (4+16)
PART II (PRINCIPLES OF MARKETING) Q.3 Retailers can position themselves at four of service. List and describe those level. Also
discuss supply chain management. Q.4 Diamond Machine Technology makes a tool for sharpening the blades of pruning sheers and glass clippers. The company has invested $ 250,000 in developing this sharpener. This tool is about the size of a piece of chewing gum and costs $ 3 to make. Fixed costs for the sharpener is $ 10,000. The company expects to sell 100,000 sharpeners this year. Diamond Machine‟s markup on sales is 30 % and it wants to earn a 20 % ROI. Calculate its markup price and its target-return price, as well as its breakeven volume at both prices. Which price should Diamond Manufacturing use? (4+4+4+4+4)
PART III (FINANCIAL MANAGEMENT) Q.5 General Electric Company has annual sales (all on credit) of $ 1.6 million. Their average collection period is 40 days and they typically have an inventory turnover of 8. Their gross profit margin is 20 percent. Assume, for ease of collection, a 360 day year: (a) Calculate the company‟s accounts receivable. (b) Calculate the amount in inventory. (10+10) Q.6 Cavalier Construction Company is considering buying one of two machines, A or B; the respective costs and benefits of each are listed below: Machine Cost Life of Machine Savings for Company A $ 100,000 4 years $ 56,000 B $ 125,000 5 years $ 60,000 (a) Calculate the after-tax cash flow for each machine. Assume, for ease of calculation, straight –line depreciation and no salvage value for either machine. The firm‟s tax rate is 40 percent and its required rate of return is 16 percent. (b) Calculate the NPV of each machine and which would you select and why? (10+10) Compulsory Question
Q.7 (A) write true (T) or false (F) in your answer boo. Do not reproduce the question: 1) The three stages of marketing practices through which a company may pass are entrepreneurial marketing, formulate marketing and entrepreneurial marketing. 2) The continual segmenting or fragmenting of markets impedes the new product development process. 3) Reverse-flow channels refer to situations where one channel level acquires a level back in the channel, such as Sears owning its own suppliers 4) Planning is concerned with defining an organization‟s goals and objectives and how to integrate and coordinate activities.
5) Leadership and management are two terms for the same process. 6) Effective control systems monitor everything happening in the organization. 7) In informal planning, the organization‟s objectives are rarely verbalized. 8) The trait approach to leadership has identified a specific set of personality characteristics that determine leader success. 9) A brand is an offering from a known source. 10) The concept of compounding deals with finding the future value of a present sum. 11) Short term creditors would be most interested in the firm‟s of leverages ratios. 12) Working capital management includes in part the administration of case, marketable securities, receivables and inventories. (B) Write only the correct answers: 13) Which of the following is NOT one of the four specific drivers that underpin the new economy? a. Industry convergence b. Disintermediation and reintermediation c. Customer delivered value d. Customization and customerization e. Digitalization and connectivity 14) ___ lays out the target markets and viable propositions that organization will offer based on an analysis of the best market opportunities a. the strategic market plan b. the portfolio analysis c. the human resource plan d. the tactical marketing plan e. marketing research 15) the attractiveness of a market offering is based: a. on the product, its placement, its price and its promotion b. on the match between customer needs and wants and distribution and pricing of the product c. almost entirely on the product being offered d. on product features and quality, services mix and quality, and price appropriateness e. entirely on the match between perceived product and actually product 16) high levels of efforts are unlikely to lead to favourable job performance unless: a. technology is also considered b. quality of the effort is also considered c. team work is also considered d. management efforts are also considered 17) In order to bring about effective organizational change, changes in technology need to be accompanied by making changes in _____: a. Strategies b. Structure c. People d. Both (b) and (c)
18) A capital investment is one that: a. has the prospect of short term benefits b. has the prospect of long term benefits c. is only undertaken by large corporations with large amounts of capital d. applies only to investment is fixed assets 19) If the general level of interest rates rises, the prices of already issue bonds will: a. Rise b. Remain unchanged c. Fall d. Fluctuate 20) If the EOQ for an item decreases, the average level of inventory will: a. Decrease b. Increase c. Remain the same d. There is no relationship between EOQ and inventory levels
Year 2007 FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2007. BUSINESS ADMINISTRATION TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100 NOTE: (i) Attempt FIVE questions in all including question No. 8 which is compulsory. All questions carry EQUAL marks. (ii) Extra attempt of any question or any part of the attempted question will not be considered (iii) Candidate must draw two straight lines (==================) at the end to separate each question attempted in Answer Books. PART – I (MANAGEMENT) 1. Explain the concept of “Motivation”. Describe any two major theories of motivation. (5+15) 2. What is “controlling”? State main steps involved in control process. Discuss different types of control. PART – II (PRINCIPLES OF MARKETING) 3. Define Marketing. Discuss various internal and external environmental factors affecting firm‟s marketing strategies.
4. Explain Marketing Mix. Discuss the role of marketing mix in managerial decision-making. PART – III (FINANCIAL MANAGEMENT) 5. ABC Company deals in computer chips and buys these chips from several manufacturers. Chips are ordered in lot sizes of 1000 and each order costs Rs. 40.00 to place. Monthly demand is expected to be 20,000 chips. ABC works out Rs. 0.10 as carrying cost for each chip. (a) What is optimal order quantity with respect to so many lot sizes (that is, what multiple of 1000 units should be ordered)? (b) What would be the optimal order quantity if the carrying costs were cut in half to Rs. 0.05 a chip per month? (c) What would be the optimal order quantity if ordering costs were reduced to Rs. 10.00 per order? 6. (a) Suppose you were to receive Rs. 100,000 at the end of 10 years. If your opportunity is 10%. What is present value of this amount assuming the interest (opportunity rate) is compounded annually? (b) If, instead of compounding annually, interest (opportunity rate) is compounded quarterly, what will be the present value? COMPULSORY QUESTION 7. (A) Write only “True” or “False” in the Answer Book. Do not reproduce the question.
(1) A decision is a choice made between two or more alternatives. (True/False) (2) Frank Gilbreth is known as father of Scientific Management. (True/False) (3) The responsibility for organizational planning rests with middle level management. (True/False) (4) The Hawthrone Experiments found that people were more concerned with preserving the work group than with maximizing their pay. (True/False) (5) Selling concept assumes that heavy selling and promotional efforts are needed to stimulate more demand for the product. (True/False) (6) Any paid form of non-personal presentation and promotion of ideas, goods or services by identified sponsor is known as public relation. (True/False) (7) Market Segmentation is concerned with dividing the market demographically and geographically. (True/False) (8) Joint Venturing is a form of entering foreign markets by joining with foreign companies to produce or market a product or service. (True/False) (9) Another name of cash flow is accounting profit. (True/False) (10) The Financial Manager has full control over his firm‟s stock price. (True/False) (11) Systematic risk can be diversified away by adding more securities to a portfolio. (True/False) (12) Discounting is the process of finding present value. (True/False) (B) Write only correct answer in the Answer Book. Do not reproduce the question. (13) Extreme division of labour leads to result in:
(a) Motivation (b) Boredom (c) Decreased work skill (d) Non-specialization (e) None of these (14) Fayol defines 14 principles of management. Which of the following is not one of those principles? (a) Scalar chain (b) Espirit de corps (c) Centralization (d) Directedness of command (e) None of these (15) An example of precontrol established by management would be: (a) Rules (b) Policies (c) Budgets (d) All of these (16) Firm‟s credit policy usually includes establishing: (a) Credit standards (b) Credit terms (c) Collection policy (d) All of these (17) Liquidity ratios are computed by using information from: (a) Balance Sheet (b) Income statement (c) Cash flow Statement (d) Both (a) and (b) (18) Conservative working capital management strategies involve: (a) Low risk, Low return (b) Low risk, High return (c) High risk, High return (d) High risk, Low return (19) Product life cycle has the following stages: (a) Introduction and Maturity (b) Growth and Maturity (c) Introduction, Maturity and Decline (d) Introduction, Growth, Maturity and Decline (20) Which product is most likely to be purchased through routine decision-making? (a) Car (b) Desk (c) Soft Drink
(d) Shirt (e) None of these
Year 2009 Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20) (i) The key inputs into Discounted Cash Flow analysis are projected future cash flows. a) True b) False (ii) Market demand for a product is the total volume that would be sold by a defined customer group. a. True b. False (iii) Operational plans apply to the entire organization and establish the organization‟s overall goals. a. True b. False (iv) Preferred stock has a fixed divided paid every period forever so preferred stock is essentially a perpetuity. a. True b. False (v) The cost of debt is the return that the firm‟s debtors demand on new borrowing. a. True b. False (vi) With the Internal Rate of Return, we try to find a single rate of return that summarizes the merits of a project. a. True b. False (vii) IBM is example of a manufacturer brand. a. True b. False (viii) Modifying job responsibilities is an example of structural change. a. True b. False (ix) ---------- is a statement reporting the effects of a firm‟s operating, investing and financing activities on cash flows over an accounting period. a. Income statement b. Annual report c. Cash flow statement d. Balance sheet e. None of these (x) ---------- studied five chief executives at work and identified ten managerial roles. a. Max weber b. Henry fayol c. Henry mintzberg d. Fredrick taylor e. Michael porter (xi) A product life cycle -----------------. a. Shows how a product sales or profits may rise or fall over its life b. Tells you how long a product will sell for and make a profit c. Is divided into three stages d. Show how profitable a product will e. None of these (xii) All of the following are fixed assets except
a. Building b. Stocks c. Production plant d. Vehicles e. None of these (xiii) What is the influencing environmental factor when interest rates increase and firms find it difficult to borrow funds a. Political factor b. Social factor c. Economic factor d. Technological factor e. Competitive factor (xiv) Which of the following is not a market entry strategy a. Licensing b. Indirect exporting c. Joint venture d. International marketing e. None of these (xv) ------------ is information about physical working conditions, work schedule and the organizational and social context of the job. a. Job specification b. Job context c. Work activities d. HR policy manual e. None of these (xvi) The liquidity of a firm is a measure of --------------a. Its ability to pay bills b. Its ability to respond to changes in demand c. How flexible it is in its production plannning d. How quickly and easily a firm could relocate to another site e. None of these (xvii) Market share means --------------a. How well a firm is doing b. How much power affirm has in the market c. How many firms are there in the market d. How big a market is e. None of these (xviii) -------------- refers to a management philosophy that requires employers to continuously set and relentlessly meet ever high quality, cost , delivery and availability goals. a. Performance management b. Performance appraisal c. Continuous improvement d. Management by objective e. None of these (xix) Beta ------------. a. Is a measure of firm specific risk b. Is a measure of market risk c. Is a measure of total risk d. All of these e. None of these
(xx) What is the price of a stock that is expected to pay a 1.00 divided next year if the cost of capital is 14% and the growth rate is zero a. 7.14 b. 6.75 c. 11.9 d. 6.13 e. None of these PART-II Management Q.2. What do you understand by efficiency and effectiveness in management? In today‟s environment, which one of the two is more important to organizations? Explaining your choice. (10+ 10) Q. 3. what is work specialization ? how can the concept of specialization be applied to institutions such as universities and government agencies? Marketing Q.4. identify some major factors that drive the new economy and explain what changes these factors have brought to marketing ? (20) Q.5. what is the role of advertising in marketing? Select an example to illustrate what you believe to be good advertising and why? (20) Financial Management Q.6. what is ration analysis? List four ratios and explain what they are used for? Discuss various benefits and drawbacks of ratio analysis? (5+5+10) Q.7. it was a
Question of Annual compount Interest
Year 2010 BUSINESS ADMINISTRATION 2010
Part 2 Attempt only four questions from part 2, attempting atleast one question from each section. Management
1. What do you understand by Mckinsey's 7's framework for management analysis, and how it is different from operational management approach? (20) 2. How do you differentiate between strategy, policy and procedure? Discuss the various steps in planning process. (10+10)
1. What is productline and product mixed? What kind of marketing strategy and procedures are required for new product development? (20) 2. Differentiate between marketing and selling? Describe how the actions of a shoe manufacturer engaged in "marketing" might be different from a shoe manufacturer engaged in "selling"?(10+10)
1. Discuss the major functions of "financial manager". Explain why judging the efficiency of any financial decision required the existence of a financial goal? (20) 2. Explain types of long-term debt instruments and also discuss the advantages and disadvantages of issuing/ buying the three types of long-term securities from the perspective of both the issuer and investor. (10+10)
Year 2012 PART 2 SECTION 1 MANAGEMENT 2. WHAT IS LEADERSHIP? List and explain different type of leaders. discuss any one theory of leadership (6+7+7=20) 3. why motivation is considered necessary in todays organization to increase the efficiency of the employees? briefly describe any theory of motivation (10+10=20) 4. describe major functions of management. discuss its significance for modern business organization (10+10=20)
section 2 PRINCIPLES OF MARKETING 5. briefly explain main features of marketing environment (20) 6. what is "marketing mix"? discuss the role of marketing mix in the marketing processs for increasing sales volume (8+12=20) 7. describe main features of marketing role in the society. discuss its impact on human life (10+10=20) section 3 FINANCIAL MANAGEMENT 8. describe main features of financial management. discuss the role of finance manager in any orghanization (10+10=20) 9. do adjusting entries affect income statement accounts, baslance sheet accounts or both? discuss (20) 10. how the financial statements are analysed and interpreted through ratio analysis (20) Year 2013 FEDERAL PUBLIC SERVICE EXAMINATION PAPER BUSINESS ADMINSTRATION ATTEMPT 4 QUESTIONS ; ATTEMPTING ATLEAST 01 FROM EACH SECTION PART 2
SECTION A (MANAGEMENT) Q2. Discuss importance of Planning in the organization. Briefly describe types of plans. Q3. What criticism has been levelled against scientific approach to management? How the scientific approach to management is compared with behavioural approach?
Q4. Briefly comment upon contemporary theories of motivation. SECTION B MARKETING Q.5 Briefly describe how marketing strategy is formulated. Q6. Discuss product attributes. Product can be differentiated on the basis of product attributes. Explain Q7. What is integrated marketing communication? Comment on its major components. SECTION C FINANCIAL MANAGEMENT
Q.8 You wish to borrow $10,000 for three years. The bank agrees to lend this amount if you are willing to pay them $16,000 at the end of three years. What is the implicit rate of interest implied if it is applied 1) Annually 2) Semiannually (to the nearest whole percent)? b) An investment of $10,000 will return $130 per year forever. What is its internal rate of return?
Q9. Sapphire corporation is considering cash outlay of $ 800,000 for acquistion of new equipment. The useful life is four years and residual value is zero at the end of four years. After-Tax cash inflows of $200,000 are expected in year 1, 250,000 in year 2, $300,000 in year 3, $400,000 in year 4. The company falls in the tax bracket of 50%. i) If the required rate of return is 15 percent, what is the net present value of the project? Is the project acceptable? ii) What is the internal rate of return?
Q10. A stock currently sells for %50 per share. The market requires a 13% return on the firm's stock. If the company maintains a constant 5% growth in dividends, what was the most recent dividend per share paid on the stock? PART - I (MCQS) ( COMPULSORY ) Q.1 (i) Select the best option and fill in the appropriate circle on the OMR answer sheet ( 20 * 1 = 20 ) 1. what are the earning per share (EPS) for a company that earned $ 100,000 last year in the after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end ? (i) $ 100,000 (ii) $ 6.00 (iii) $ 0.50 (iv) $ 6.50 2. The decision function of financial management can be broken down into the decisions :
(a) financing and investment (b) investment,financing & asset management (c) financing and dividend (d) capital budgeting, cash management and credit management. 3. You want to buy an ordinary annuity that will pay you $400,000 a year for next 20 years. You expect annual interest rate will be 8 percent over that time period. the maximum price you would be willing to pay for the annuity closest to : (a) $32,000 (b) $39,272 (c) $40,000 (d) $80,000 4. Which of the following would NOT improve the current ratio ? (a) Borrow short term to finance additional fixed assets (b) Issue long term debt to buy inventory (c) sell common stock to reduce current liabilities (d) sell fixed assets to reduce accounts payable 5. Alto industry has a debt to equity ratio of 1.6 compared with the industry average if 1.4. this means that the company : (a) will not experience any difficulty with its creditors (b) has less liquidity than other firms in industry' (c) will be viewed as having high credit worthiness (d) has greater than average financial risk when compared to other firms in industry. 6. According to the capital-asset pricing model (CAPM), a security's expected (required) return is equal to the risk free rate plus a premium : (a) Equal to the security's beta (b) based on the unsystematic risk of the security (c) Based on the total risk of the security (d) Based on the systematic risk of the security 7. " How people feel about corporations, government agencies, trade unions and universities " refers to which of the following views ? (a) People's view of others (b) People's view of societies (c) People's view of themselves (d) People's view of organizations 8. Gathering secondary information is one of the steps of developing the research plan. W hat does the meaning of secondary information in marketing research? (a) That does not currently exist in an organized form. (b) that already exist somewhere, having been collected for another purpose. (c) that the researcher can obtain through surveys and observation. (d) that already exist somewhere in an organized form. 9. which one of the following factor is NOT used for measuring the social class ? (a) Income (b) Number of children in family (c) Occupation (d) Education 10. which one of the following three-steps process represents "perception" ? (a) Motivation, personality and attitudes (b) Collecting, eliminating, and organizing information inputs. (c) Receiving, organizing and interpreting information inputs. (d) anticipating, classifying and discarding information inputs.
11. Demographic segmentation divides the market into groups based on which of the following variables? a. size, location, industry, customer b. size, company, industry, technology c. location, size, occupation, race d. customer, technology,industry,company 12. Which of the following are those products purchased for further processing or for use in conducting a business ? a. Unsought products b. specialty products c. shopping products d. industrial products 13. After concept testing, a firm would engage in which stage for developing and marketing a new product ? a. Marketing strategy development b. Business analysis c. Product development d. Test marketing 14. Fredrik Taylor advocated which of the following management principles? a. Work and responsibility should be divided almost equally between management and workers. b. workers should perform all work , while management should maintain responsibility for the work performed. c. Managers should perform more work than workers, because managers are generally more skilled. d. Workers can be highly productive even if they are randomly selected for a job. 15. General administrative theory focuses on ? a. The entire organization. b. Managers and administrators c. The measurement of organizational design relationship. d. Primarily the accounting function. 16. Bureaucracy is defined as a form of organization characterized by: (a) Division of labor (b) Clearly defined hierarchy (c) Detailed rules and regulations (d) All of these 17. The quantitative approach involves applications of: (a) Statistics, information models, and computer simulations (b) Psychology testing, focus groups, and mathematics (c) Optimization models, interviews, and questionnaries (d) Survey, strategic planning, and group problem solving
18. The Hawthorne Studies were initially devised to study: (a) Productivity levels of groups versus individuals (b) The effect of noise on employee productivity (c) The effect of illumination levels on employee productivity (d) The effect of cooperative versus competitive organizational environments on productivity 19. Which of the following is considered a systems input? (a) Management activities (b) Financial results (c) Operations methods (d) Raw materials 20. A manager who believes that no one set of principles applies equally to all work environments is most likely advocating which management approach? (a) Contingency (b) Workplace diversity (c) Organizational behaviour (d) Knowledge management