Business Administration Paper – 2005

(1) Planning initiates other functions of management. True

(2) Managements make things to happen. False

(3) The ultimate criterion of control is the extent that activities are complete in ways that
lead to more profits. False

(4) Computer Technology helps the management but does not replace the management.
True

(5) Promotional mix is also known as communication mix. True

(6) Marketing environment is made up of micro-environment and macro-environment.
True

(7) Promotional mix is the part of marketing mix. False

(8) Marketing strategy consists of specific strategy for target markets, positioning, the
marketing mix and marketing expenditure levels. True

(9) A Financial manager has a full control over its firm‟s stock price. False

(10) Liquidity ratios measure a firm‟s ability to meet short term obligations. True

(11) The internal rate of return method is the most widely used capital budgeting techniques.
False

(12) Stock exchange facilitates investment in real assets by providing secondary market to the
financial securities. False

(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 risk 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 (EOQ) increases when which of the following increases?

(a) Sales
(b) Ordering costs
(c) Carrying costs
(d) Both „a‟ and „b‟

Business Administration Paper – 2006

 

 

 

 

 

1) The three stages of marketing practices through which a company may pass are
entrepreneurial marketing, formulate marketing and entrepreneurial marketing. [True]

2) The continual segmenting or fragmenting of markets impedes the new product development
process.[False]

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 [True]

4) Planning is concerned with defining an organization‟s goals and objectives and how to
integrate and coordinate activities. [True]

5) Leadership and management are two terms for the same process. [False]

6) Effective control systems monitor everything happening in the organization.[False]

7) In informal planning, the organization‟s objectives are rarely verbalized. [True]

8) The trait approach to leadership has identified a specific set of personality
characteristics that determine leader success.[True]

9) A brand is an offering from a known source. [True]

10) The concept of compounding deals with finding the future value of a present sum.[True]

11) Short term creditors would be most interested in the firm‟s of leverages ratios.[False]

12) Working capital management includes in part the administration of cash, marketable
securities, receivables and inventories. [True]

(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 favorable 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

Business Administration Paper – 2007

 

 

 

 

 

 

 

 

 

(1) A decision is a choice made between two or more alternatives. (True)

(2) Frank Gilbreth is known as father of Scientific Management. (False)

(3) The responsibility for organizational planning rests with middle level management.
(True)

(4) The Hawthrone Experiments found that people were more concerned with preserving the work
group than with maximizing their pay. (True)

(5) Selling concept assumes that heavy selling and promotional efforts are needed to stimulate
more demand for the product. (True)

(6) Any paid form of non-personal presentation and promotion of ideas, goods or services by
identified sponsor is known as public relation. (False)

(7) Market Segmentation is concerned with dividing the market demographically and
geographically. (False)

(8) Joint Venturing is a form of entering foreign markets by joining with foreign companies to
produce or market a product or service. (False)

(9) Another name of cash flow is accounting profit. (False)

(10) The Financial Manager has full control over his firm‟s stock price. (False)

(11) Systematic risk can be diversified away by adding more securities to a portfolio.
(False)

(12) Discounting is the process of finding present value. (True)

(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 pre-control 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

Business Administration Paper – 2008

 

 

 

 

 

(1) The last stage of Maslow Need Hierachy is Esteem. (False)

(2) An effective Manager is one who achieves the goal with the least amount of resources.
(True)

(3) Audit is a type of controlling system. (True)

(4) Removal of undesirable elements serves as Negative Reinforcement tool to motivate the
people. (True)

(5) Marketing of services heavily rely on advertising. (True)

(6) Advertising is paid, personal communication through media (False)

(7) Skimming pricing is used when the customers are quality conscious. (True)

(8) Advertising is usually at the top of Promotion Mix of every product. (True)

(9) Profit as against Share Price Maximization is always a desirable goal of organization.
(False)

(10) For a short-term creditor, liquidity ratios are more important than efficiency ratios.
(True)

(11) Low levels of net working capital decrease risks. (False)

(12) The present value of an annuity is inversely related to future value of annuity.
(True)

(13) The three levels of a product are:

(a) Core, Packaging and Promotion
(b) Actual, Core and Pricing
(c) Augmentation, Core and Actual
(d) None of these

(14) MBO means:

(a) Management based on Organization
(b) Management based on Objectives
(c) Management by Objectives
(d) None of these

(15) The two broad price policies are:

(a) Demand and sales based pricing
(b) Penetration and low pricing
(c) Skimming and Demand based pricing
(d) None of these

(16) Quick Ratio is calculated by dividing:

(a) Current Assets by Current Liabilities
(b) Current Assets by Inventories
(c) Current Liabilities by Current Assets
(d) None of these

(17) Decreasing inventories is a source of:

(a) Assets
(b) Funds
(c) Credit
(d) None of these

(18) Entrepreneur is:

(a) Manager looking for profit
(b) Manager looking for employee‟s satisfaction
(c) Manager looking for every opportunity
(d) None of these

(19) The depth of a ‘Product Mix’ indicates:

(a) All products offered by a company with its versions
(b) All products offered by a company with its brands
(c) All products and service brands
(d) None of these

(20) A person directly involved in operation and accomplishment of main objectives of the firm
is called:

(a) First-Line manager
(b) Line-Manager
(c) Staff-Manager
(d) None of these

Business Administration Paper – 2009

 

(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

Business Administration Paper – 2010

(1) You wish to borrow $ 8000 to be repaid in 24 monthly installments at an annual interest
rate of 8%. What is your monthly payment?

a) $ 262.82
b) $ 361.82
c) $ 150.5
d) $ 325.00
e) none

(2) If you invest $ 600 every six months at 8% compounded semi annually, how much would you
accumulate at the end of 10 years?

a) $ 15,883.20
b) $ 16,926.82
c) $ 17, 866.85
d) $ 18,233.45
e) None

(3) A commercial bank will loan you $ 12,250 for three years to buy a car. The loan must be
repaid in 36 equal monthly payments. The annual interest rate on the loan I s 12% of the unpaid
balance. How large are the monthly payments?

a) $425.00
b) $350.67
c) $375.09
d) $406.88
e) none

(4) What is the future value of $500 investment, with a stated rate of 6% compounded monthly
for 7 years.
a) 700
b) 730
c) 760
d) 790
e) none

(5) You are considering investing in a preferred stock that has a dividend of $ 3.25 per
share. The market price of this stock is $ 48.625. What is the rate of return you would expect to
make on this perpetuity?

a) 6.68%
b) 6.24%
c) 6.05%
d) 6.28%
e) none

(6) What is not a disadvantage of traditional file processing system?

a) Program-data dependence
b) Reduce data redundancy
c) Limited data sharing
d) Lengthy development time
e) none

(7) An enterprise data model is a (n) model.

a) numerical
b) mathematical
c) narrative
d) graphical
e) none

(8) Which is not a component of relational database?

a) Entity
b) Table
c) Attribute
d) Hierarchy
e) none

(9) Data base application can be divided into 5 categories. Which is NOT a database
application category?

a) Personal
b) Department
c) Enterprise
d) Relational
e) none

(10) A data base that supports organization wide operations and decision making is a (n)
database.

a) department
b) enterprise
c) work group
d) extra-net
e) none

(11) As small companies begin to achieve success, they tend to adopt some of the tools used in
professionally run marketing commas. This is a sign that the firm is in the
stage of marketing practice.

a) Entrepreneurial marketing
b) Formulated marketing
c) Intrepreneurial marketing
d) Effective marketing
e) none

(12) The concept of a is used to describe a cluster of complementary products that
are closely related in the minds of the consumers but are spread across a diverse set of
industries.

a) Metamarket
b) Metamediary
c) Market place
d) Marketspace
e) none

(13) Marketers can increase the value of customers offering by:

a) raising benefits and reducing cost
b) raising benefits by more than raising the cost
c) lowering benefits by less than the reduction in cost
d) All of the above can increase the customers value

(14) When a firm sees its competitors as all companies that compete for the same consumer
dollars, they are concerned with the level of competition.

a) Brand
b) Industry
c) Form
d) Generic
e) None

(15) The number of channel levels from raw material to final product which a company will
participate defines the firm’s scope.

a) Industry
b) Geographical
c) Vertical
d) Competence
(16) Which of the following best describes the organizational members who integrate and
coordinate the work of others?

a) Managers
b) Operatives
c) Subordinates
d) Customers

(17) represent the lowest level of management

a) Team leaders
b) First line managers
c) Operatives
d) Laborers
e) none

(18) Which of the following roles is more important for lower-level managers than for either
middle or top-level managers?

a) Negotiator
b) Leader
c) Coordinator
d) Entrepreneur
e) none

(19) Which of the following skills involve working well with other people?

a) Technical
b) Human
c) Computer
d) Empirical
e) none

(20) The phrase most associated with scientific management is ?

a) Management Relations
b) One of the best
c) Supply and demand
d) Quality control
e) none

Business Administration Paper – 2011

(1) Fredrick Winslow Taylor‟s Principles of Scientific Management suggested the use of
scientific methods to define:

(a) The easiest way of doing a job
(b) The most complex way of doing a job
(c) The best way of doing a job
(d) None of these

(2) The quantitative approach using quantitative techniques in Management is called:

(a) Scientific Method
(b) Operations Research
(c) Quantitative Approach
(d) None of these

(3) The perspective that Managers are directly responsible for an organization‟s success is
known as:

(a) Omnipotent view of management
(b) Management orientation
(c) Autocratic management
(d) None of these

(4) Effective Management decisions are:

(a) Emotional
(b) Based on lots of data
(c) Rational
(d) None of these

(5) Breakeven Analysis is a useful technique for:

(a) Reducing operating costs
(b) Maximizing sales
(c) Resource allocation
(d) None of these

(6) Recruitment helps:

(a) Improve productivity of HR
(b) Reduce number of employees
(c) Improve labour relations
(d) None of these

(7) Grapevine is:

(a) An office decoration plant
(b) An information network
(c) An official drink
(d) None of these (Informal Business Communication)

(8) Most important asset in an organization is:

(a) Money
(b) Plant and Machinery
(c) Employees
(d) None of these

(9) Employees resist organizational change because it:

(a) Reduces their compensation
(b) Creates uncertainty
(c) Puts more work on them
(d) None of these

(10) Strictly observing Corporate Ethics is:

(a) Not important in commercial organizations
(b) Against the concept of profit maximization
(c) An essential requirement of professional business management
(d) None of these

(11) According to Herzberg‟s Motivation – Hygiene Theory, employee‟s salary is:

(a) Hygiene Factor
(b) Motivating Factor
(c) Employee‟s Retention Factor
(d) None of these

(12) Who has the most power in Value Chain?

(a) Suppliers
(b) Distributors
(c) Customers
(d) None of these

(13) Marketing is:

(a) Sales of goods and services
(b) The range of services starting and ending with the customer
(c) Sales planning and promotion
(d) None of these

(14) Marketing Strategy is:

(a) Activities focused to defeat competitors
(b) Activities aimed at creating value and profitable relationship with customers
(c) Activities for maximizing sales
(d) None of these

(15) Cost strategy means charging:

(a) Highest price for products
(b) Lowest price for products
(c) Varying prices for products
(d) None of these

(16) Branding is:

(a) Not possible for services
(b) Not very useful commercially
(c) Useful for building product loyalty
(d) None of these

(17) Creation of value in a business means:

(a) Earning maximum profits
(b) Promoting rapid growth in sales
(c) Optimizing shareholder’s return in a company
(d) None of these

(18) Price/Earnings Ratio of a company shows relationship between its:

(a) Net profit and Sales
(b) Gross profit and Net earnings
(c) Market price of its share and Earnings per share
(d) None of these

(19) Free Cash Flows are:

(a) Net after tax profit
(b) Expected Revenues minus expected costs and capital expenditures
(c) Cash in hand and in bank
(d) None of these

(20) Term interest earned is:

(a) EBIT ÷ Interest on debt
(b) Net profit ÷ Debt
(c) Sales ÷ Interest Payable
(d) None of these