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Business Administration Paper – 2009

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1) The key inputs into Discounted Cash Flow analysis are projected future cash flows. TruE.

2) Market demand for a product is the total volume that would be sold by a defined customer
group. FalsE.

3) Operational plans apply to the entire organization and establish the organization‟s
overall goals. FalsE.

4) Preferred stock has a fixed divided paid every period forever so preferred stock is
essentially a perpetuity.TruE.

5) The cost of debt is the return that the firm‟s debtors demand on new borrowing.TruE.

6) With the Internal Rate of Return, we try to find a single rate of return that summarizes
the merits of a project. TruE.

7) IBM is example of a manufacturer brand. TruE.

8) Modifying job responsibilities is an example of structural change. FalsE.

9) ———- 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

10) ———- 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

11) 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

12) All of the following are fixed assets except

a. Building
b. Stocks
c. Production plant
d. Vehicles

13) 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

14) 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

15) ———— 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

16) 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

17) Market share means —————

a. How well a firm is doing
b. How much power a firm has in the market
c. How many firms are there in the market
d. How big a market is
e. None of these

18) ————– 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 19) 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

20) 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

C. May be Taylor