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MIDTERM EXAMINATION
Spring 2009
MGT502- Organizational Behaviour (Session - 2)
Question No: 1 ( Marks: 1 ) - Please choose one
Which one of the following is NOT a characteristic of group in organization?
► Common goal
► Interaction with one another
► Accept expectations and obligations
► Mutually independent
Question No: 2 ( Marks: 1 ) - Please choose one
Jobs in which success demands stamina, leg strength and manual dexterity require management to identify an employee's which characteristics?
► Physical abilities
► Motor abilities
► Mental abilities
► Emotional abilities
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following communication network is best illustrated by an unstructured committee?
► Vertical
► Wheel
► All-channel
► Chain
Question No: 4 ( Marks: 1 ) - Please choose one
When all communication is channeled through one person, which of the following communication network exists?
► All-channel
► Chain
► Horizontal
► Wheel
Question No: 5 ( Marks: 1 ) - Please choose one
Formal guidelines and authority hierarchies are examples of which function of communication?
► Control
► Agreement
► Motivation
► Information
Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following is an example of downward communication flow?
► Suggestion boxes
► Disscussing problem with boss
► Feedback on job performance
► Letters to your boss
Question No: 7 ( Marks: 1 ) - Please choose one
The means by which a communication is passed is called:
► Medium
► Instrument
► Conductor
► Transmission
Question No: 8 ( Marks: 1 ) - Please choose one
On the Leadership Grid, a manager who has a medium concern for both, people and production is a (n):
► Team manager
► Country club manager
► MIddle of the road manager
► Authority-obedience manager
Question No: 9 ( Marks: 1 ) - Please choose one
If a leader's main concern is accomplishing his/her group's tasks, the University of Michigan studies label this leader as:
► Production-oriented
► Laissez-faire
► Consideration-oriented
► Employee-oriented
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following are the two dimensions of leadership behavior identified in the University of Michigan studies?
► Emotional and rational
► Autocratic and democratic
► Initiating structure and consideration
► Employee-oriented and production-oriented
Question No: 11 ( Marks: 1 ) - Please choose one
If trait theories of leadership are valid, then leaders are _____.
► Educated
► Trained
► Born
► Authoritarian
Question No: 12 ( Marks: 1 ) - Please choose one
The main difference between a leader and a manager is:
► Managers seek change and leaders don't
► Leaders are thought of as better people because they don't punish
► Leaders are advocates for change, and managers for the status quo
► Managers are concerned with people, and leaders with events
Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following techniques most restricts discussion or interpersonal communication during the decision-making process?
► Groupthink
► Nominal group
► Brainstorm
► Electronic meeting
Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following is a tendency for members of a cohesive group to reach decisions without weighing all the facts, especially those contradicting the majority opinion?
► Group conformity
► Group shift
► Groupthink
► Social loafing
Question No: 15 ( Marks: 1 ) - Please choose one
What is generally the result of groupthink?
► Higher quality decisions
► More risky decisions
► Less critical analysis
► Unpopular decisions
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following is true about virtual teams?
► There is an absence of verbal cues
► There is limited social context
► People collaborate online
► All of the given options
Question No: 17 ( Marks: 1 ) - Please choose one
Which of the following helps to explain the current popularity of teams?
► Easy to manage
► Less expensive
► Use employee talents better
► Promote socialization
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following statements concerning tenure is NOT true?
► Tenure does not appear to be a good predictor of employee productivity
► Tenure and satisfaction are positively related
► Tenure is a good variable in explaining turnover
► Tenure and organizational investment are negatively related
Question No: 19 ( Marks: 1 ) - Please choose one
What other name is the two-factor theory known by?
► Theories X and Y
► Motivator-Hygiene Theory
► Hierarchy of Needs Theory
► Satisfaction/Dissatisfaction Theory
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following method is used for strengthening desirable behavior?
► Negative Reinforcement
► Neutral Reinforcement
► Pleasant Reinforcement
► Positive Reinforcement
Question No: 21 ( Marks: 1 ) - Please choose one
How does McClelland define the need for affiliation?
► Drive to excel, to strive to succeed
► Need to make others behave in a novel way
► Desire for friendship and mutual understanding
► The desire to control & influence their behavior
Question No: 22 ( Marks: 1 ) - Please choose one
Who developed ERG theory?
► Mcclelland
► Maslow
► Alderfer
► Ouchi
Question No: 23 ( Marks: 1 ) - Please choose one
Maslow's hierarchy of needs arranges those needs in which of the following orders?
► Physiological, esteem, safety, social, and self-actualization
► Physiological, safety, social, esteem, and self-actualization
► Safety, physiological, esteem, social, and self-actualization
► Physiological, social, safety, esteem, and self-actualization
Question No: 24 ( Marks: 1 ) - Please choose one
What are the three key elements of motivation?
► Interest, activity and reward
► Awareness, effort and outcome
► Stimulation, progress and achievement
► Intensity, direction and persistence
Question No: 25 ( Marks: 1 ) - Please choose one
Amna is an honest and straightforward person. She believes her employees are all similarly honest and straightforward, ignoring signs that they may be
manipulating her. What perceptual shortcut is Amna most likely using?
► Prototyping
► Contrast effect
► Halo effect
► Projection
Question No: 26 ( Marks: 1 ) - Please choose one
Asma is experiencing conveyance problem for her college pick and drop. She decides to use the rational decision-making model to decide what to do. What might be the next step she takes if she follows this model?
► Define the problem
► Identify the decisions criteria
► Evaluate other available alternatives
► Select the best alternative
Question No: 27 ( Marks: 1 ) - Please choose one
The time at which an object or event is seen is an example of what type of factor influencing the perceptual process?
► Situation
► Perceiver
► Reality
► Target
Question No: 28 ( Marks: 1 ) - Please choose one
What is the most relevant application of perception concepts to OB?
► The perceptions people form about each other
► The perceptions people form about their employer
► The perceptions people form about society
► The perceptions people form about external reality
Question No: 29 ( Marks: 1 ) - Please choose one
Imran is the head of a group at an advertising agency working with artists and designers to come up with effective branding of new products. Why is it particularly important for him to keep his team happy?
► People are more conscientious when they are in a good mood
► People are more efficient when they are in a good mood
► People are more productive when they are in a good mood
► People are more creative when they are in a good mood
Question No: 30 ( Marks: 1 ) - Please choose one
Which of the following statement is true regarding Big five Model?
► The Big Five traits are related to intrinsic motivational factors
► The Big Five traits are related to extrinsic motivational factors
► The Big Five traits are related to both intrinsic and extrinsic factors
► The Big Five traits have no relationship to motivational factors
Question No: 31 ( Marks: 1 ) - Please choose one
The degree to which people value relationships and show sensitivity and concern for the welfare for others is called:
► Quantity of life
► Quality of life
► Long-term orientation
► Social Loafing
Question No: 32 ( Marks: 1 ) - Please choose one
All of the following are sources of the values EXCEPT:
► External Reference Groups
► Role Models
► Achievement
► Teachers
Question No: 33 ( Marks: 1 ) - Please choose one
Values like working hard, being creative and honest are the means which lead towards achieving organizational goals. Which of the following term best described these values?
► Terminal values
► Instrumental values
► Theoretical values
► Social values
Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following is NOT one of the scales to measure job satisfaction?
► Minnesota Satisfaction Questionnaire
► The Faces Scale
► The mentor scale
► Descriptive Index
Question No: 35 ( Marks: 1 ) - Please choose one
Following a response by the termination or withdrawal of something unpleasant is called----------------.
► Positive reinforcement
► Extinction
► Negative reinforcement
► Punishment
Question No: 36 ( Marks: 1 ) - Please choose one
Last year, Ali had taken lunch at a fast food restaurant that caused him food poisoning. Now whenever he passes by the restaurant, he feels nauseous. This is an example of which of the following learning theory?
► Classical conditioning
► Social learning
► Operant conditioning
► Reinforcement theory
Question No: 37 ( Marks: 1 ) - Please choose one
Which of the following are identified as new managerial functions?
► Planning and organizing
► Leading and controlling
► Directing and monitoring
► TQM and continuous improvement
Question No: 38 ( Marks: 1 ) - Please choose one
Mr. Ahmed is responsible to transmit information to outsiders on organization's plans, policies, actions and results. Which managerial role is he playing in organization?
► Disseminator
► Spokesperson
► Representative
► Figurehead
Question No: 39 ( Marks: 1 ) - Please choose one
The greatest contribution of which one of the following to OB is through their study of group behavior in organizations, particularly formal and complex organizations?
► Psychology
► Sociology
► Anthropology
► Social Psychology
Question No: 40 ( Marks: 1 ) - Please choose one
If a manger is responsible to define goals, establish an overall strategy for achieving those goals and matching activities accordingly, then which one of the following functions is he/ she performing.
► Planning
► Organizing
► Leading
► Controlling
Question No: 41 ( Marks: 10 )
What are the common skills exhibited by an effective manager?
ANSWER:
Skill: Skill is defined as an ability to act in a way that allows a person to highly perform his roles.
Skills required by Effective Manager:
There are various skills which must be possessed by a manager in order to be effective. Some of such skills are listed below
Define proper goals for everyone.
Must plan and organize the work properly so that it flows smoothly.
Enables proper communication in all directions.
Promotes participation of individuals
Provide honest feedback
Empower and delegate the important tasks to subordinates
Have full control over the whole process
Motivate the subordinates to goal achievement
Exhibits technical as well as administrative expertise to answer related questions.
Facilitates work through teams and proper training
Keep the activities move by following the schedule and deadlines.
Rewards good performances
MGT503 paper2
MIDTERM EXAMINATION
Spring 2009
MGT503- Principles of Management (Session - 5)
Time: 60 min
Marks: 50
Question No: 1 ( Marks: 1 ) - Please choose one
Sulman thinks about his job while playing with his son on the weekend, and he continually volunteers to do extra assignments and project for his department. These suggest that Sulman has a strong need for :
► Esteem
► Security
► Achievement
► Power
Not 100% sureQuestion No: 2 ( Marks: 1 ) - Please choose one(chap 04)
Asim assigned Khalid a project to be completed by the end of the month and then hold periodic meetings with him to review his progress. Which management function Asim is performing?
► Planning
► Leading
► Controlling
► Organizing
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following BEST describes creativity?
► Uncovering what is already there
► Creating something new
► Organizing already discovered items
► Criticizing the discovered items
Question No: 4 ( Marks: 1 ) - Please choose one
When an organization encounters a serious problem which needs to be solved immediately, it is called:
► Crisis problem
► Non- Crisis problem
► Opportunity problem
► Financial Problem
Question No: 5 ( Marks: 1 ) - Please choose one
Plans which have the broadest organizational focus and the longest time frame are called:
► Tactical
► Strategic
► Directional
► Operational
Question No: 6 ( Marks: 1 ) - Please choose one
A few years ago Black and Decker bought general electric's small appliance business. 150 products were converted from GE to Black and Decker label. A total of 140 steps were used for each product. It took 3 years. The total conversion of product line was:
► A Program
► A project
► A policy
► A rule
Question No: 7 ( Marks: 1 ) - Please choose one
The intent of which of the following is to reduce uncertainty by playing out potential situations under different specific conditions?
► Project management
► Scheduling
► Environmental analysis
► Scenario planning
Question No: 8 ( Marks: 1 ) - Please choose one
In terms of linear programming, profit margins on different products that a company can produce represent which of the following?
► Constraints
► Feasibility regions
► Scenarios
► Basis for the objective function
Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following technique relies on individual or group judgments rather than on mathematical analysis?
► Quantitative forecasting
► Technological forecasting
► Qualitative forecasting
► Environmental forecasting
Question No: 10 ( Marks: 1 ) - Please choose one
A problem with groupthink is that no one is actually in charge of making the final decision or outcome, which results in:
► Ambiguous responsibility
► Role incoherence
► Role ambiguity
► Ambiguous delegation
Question No: 11 ( Marks: 1 ) - Please choose one
When an organization encounters an issue that requires resolution, but not very immediate action, it is called:
► Crisis problem
► Non- Crisis problem
► Opportunity problem
► Financial Problem
Question No: 12 ( Marks: 1 ) - Please choose one
In decision making process, ideas should be evaluated on the basis of:
► Acceptability
► Durability
► Accountability
► Liability
Question No: 13 ( Marks: 1 ) - Please choose one
Assembling additional information and identifying both the nature and the causes of the problem comes under:
► Scanning stage
► Categorization stage
► Diagnosis stage
► Implementation stage
Question No: 14 ( Marks: 1 ) - Please choose one
The North American Free Trade Agreement includes:
► Mexico, Canada, and the United States
► Mexico, Brazil and Columbia
► Mexico, Canada and the Brazil
► Italy, Canada and the United States
Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following is a collection of countries that use a common currency?
► European common market
► European Union
► Western European alliance
► Economic and monetary union
Question No: 16 ( Marks: 1 ) - Please choose one
Few years ago, employees of a international company took wages cuts to help the firm offset large losses. Now firm is again earning profits and employees believe that their wages should be restored but company is not willing to restore their wages. Organization is showing which of the following behavior?
► Unethical
► Socially responsible
► Ethical
► Socioeconomic
Question No: 17 ( Marks: 1 ) - Please choose one
An individual's personal beliefs regarding what is right and wrong or good and bad is called:
► Ethics
► Values
► Norms
► Rituals
Question No: 18 ( Marks: 1 ) - Please choose one
The relationship between corporate social involvement and economic performance is:
► Positive
► Negative
► Perfect positive
► Perfect negative
Question No: 19 ( Marks: 1 ) - Please choose one
The culture of an organization is largely determined by:
► Top management
► Employees
► Stockholders
► The company founders
Question No: 20 ( Marks: 1 ) - Please choose one
All of the following are Dimensions of organizational culture EXCEPT:
► Innovation
► Aggressiveness
► Stability
► Customer orientation
Question No: 21 ( Marks: 1 ) - Please choose one
Constituencies in an organization's external environment that are affected by the organization's decisions and actions are called:
► Stakeholders
► Advisories
► Beneficiaries
► Environmentalists
Question No: 22 ( Marks: 1 ) - Please choose one
Environment made up of specific outside elements within which an organization interfaces in the course of conducting its business is called:
► Internal environment
► External environment
► The task environment
► The mega environment
Question No: 23 ( Marks: 1 ) - Please choose one
The quantitative approach has contributed directly in the areas of:
► Planning and control
► Controlling and leading
► Organizing and controlling
► Planning and leading
Question No: 24 ( Marks: 1 ) - Please choose one
Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation is called:
► Contingency theory
► Behavioral theory
► Administrative theory
► Social theory
Question No: 25 ( Marks: 1 ) - Please choose one
In Maslow's hierarchy of need, status is an example of which of the folowing need?
► Physiological
► Esteem
► Safety
► Social
Question No: 26 ( Marks: 1 ) - Please choose one
Which of the following behavior had dramatically influenced by Hawthorne studies?
► Human behavior
► Social behavior
► Moral behavior
► Ethical behavior
Question No: 27 ( Marks: 1 ) - Please choose one
The formal right to give orders, make decisions, and see that tasks are completed is called:
► Centralization
► Authority
► Responsibility
► Decentralization
Question No: 28 ( Marks: 1 ) - Please choose one
The managerial functions according to Fayol were :
► Organizing, staffing, commanding, coordinating and controlling
► Commanding, organizing, planning, coordinating and staffing
► Controlling, commanding, organizing, planning and leading
► Planning, organizing, commanding, coordinating and controlling
Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following is considered to be the father of modern computing?
► Fredrick W Taylor
► Abraham Maslow
► Charles Babbage
► Max Weber
Question No: 30 ( Marks: 1 ) - Please choose one
Which type of managerial skill refers to the ability to analyze and diagnose complex situations?
► Problem-solving
► Interpersonal
► Conceptual
► Technical
Question No: 31 ( Marks: 1 ) - Please choose one
If you get more output from a given input, you have:
► Decreased effectiveness
► Increased effectiveness
► Decreased efficiency
► Increased efficiency
Question No: 32 ( Marks: 1 ) - Please choose one
Interpersonal roles include which of the following three roles?
► Disseminating, figurehead and liaison
► Figurehead, leader and liaison
► Disturbance handler, monitor and entrepreneur
► Monitor, resource allocator and negotiator
Question No: 33 ( Marks: 1 ) - Please choose one
A manager transmits the information outside the organization. He is performing which of the following role?
► Spokesperson
► Representative
► Disseminator
► Agent
Question No: 34 ( Marks: 1 ) - Please choose one
A universally accepted model of a successful manager could be described as:
► One who practices the four universal processes or functions
► One who executes all of the roles in a professional manner
► One who possesses all management skills at high levels
► There is no universally accepted model of a successful manager
Question No: 35 ( Marks: 1 ) - Please choose one
Dr. Edward Deming has described his Philosophy about quality in:
► 14 Points
► 6 Points
► 8 Points
► 20 Points
Question No: 36 ( Marks: 1 ) - Please choose one
The traditional shape of an organization was:
► Circle
► Pyramid
► Square
► Diamond
Question No: 37 ( Marks: 1 ) - Please choose one
The science which studies the nature of things, particularly values and ethics is called:
► Anthropology
► Philosophy
► Economics
► Political sciences
Question No: 38 ( Marks: 1 ) - Please choose one
The new business model reflects today's reality that:
► A large number of competitors are in the world.
► Information can be shared and exchanged instantaneously anywhere in the world
► People can move from one part to another part of the country easily
► Trade barriers are removed
Question No: 39 ( Marks: 1 ) - Please choose one
The course which studies the values and ethics is called:
► Philosophy
► Behavioral science
► Economics
► Psychology
Question No: 40 ( Marks: 1 ) - Please choose one
Which of the following courses helps managers gain a better understanding of motivation, leadership, trust, employee selection, performance appraisals and training techniques?
► Psychology
► Sociology
► Political science
► Anthropology
Question No: 41 ( Marks: 10 )
Describe Porter's Model and explain how a manager would use it to develop a strategy to achieve competitive advantage.
Spring 2009
MGT503- Principles of Management (Session - 5)
Time: 60 min
Marks: 50
Question No: 1 ( Marks: 1 ) - Please choose one
Sulman thinks about his job while playing with his son on the weekend, and he continually volunteers to do extra assignments and project for his department. These suggest that Sulman has a strong need for :
► Esteem
► Security
► Achievement
► Power
Not 100% sureQuestion No: 2 ( Marks: 1 ) - Please choose one(chap 04)
Asim assigned Khalid a project to be completed by the end of the month and then hold periodic meetings with him to review his progress. Which management function Asim is performing?
► Planning
► Leading
► Controlling
► Organizing
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following BEST describes creativity?
► Uncovering what is already there
► Creating something new
► Organizing already discovered items
► Criticizing the discovered items
Question No: 4 ( Marks: 1 ) - Please choose one
When an organization encounters a serious problem which needs to be solved immediately, it is called:
► Crisis problem
► Non- Crisis problem
► Opportunity problem
► Financial Problem
Question No: 5 ( Marks: 1 ) - Please choose one
Plans which have the broadest organizational focus and the longest time frame are called:
► Tactical
► Strategic
► Directional
► Operational
Question No: 6 ( Marks: 1 ) - Please choose one
A few years ago Black and Decker bought general electric's small appliance business. 150 products were converted from GE to Black and Decker label. A total of 140 steps were used for each product. It took 3 years. The total conversion of product line was:
► A Program
► A project
► A policy
► A rule
Question No: 7 ( Marks: 1 ) - Please choose one
The intent of which of the following is to reduce uncertainty by playing out potential situations under different specific conditions?
► Project management
► Scheduling
► Environmental analysis
► Scenario planning
Question No: 8 ( Marks: 1 ) - Please choose one
In terms of linear programming, profit margins on different products that a company can produce represent which of the following?
► Constraints
► Feasibility regions
► Scenarios
► Basis for the objective function
Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following technique relies on individual or group judgments rather than on mathematical analysis?
► Quantitative forecasting
► Technological forecasting
► Qualitative forecasting
► Environmental forecasting
Question No: 10 ( Marks: 1 ) - Please choose one
A problem with groupthink is that no one is actually in charge of making the final decision or outcome, which results in:
► Ambiguous responsibility
► Role incoherence
► Role ambiguity
► Ambiguous delegation
Question No: 11 ( Marks: 1 ) - Please choose one
When an organization encounters an issue that requires resolution, but not very immediate action, it is called:
► Crisis problem
► Non- Crisis problem
► Opportunity problem
► Financial Problem
Question No: 12 ( Marks: 1 ) - Please choose one
In decision making process, ideas should be evaluated on the basis of:
► Acceptability
► Durability
► Accountability
► Liability
Question No: 13 ( Marks: 1 ) - Please choose one
Assembling additional information and identifying both the nature and the causes of the problem comes under:
► Scanning stage
► Categorization stage
► Diagnosis stage
► Implementation stage
Question No: 14 ( Marks: 1 ) - Please choose one
The North American Free Trade Agreement includes:
► Mexico, Canada, and the United States
► Mexico, Brazil and Columbia
► Mexico, Canada and the Brazil
► Italy, Canada and the United States
Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following is a collection of countries that use a common currency?
► European common market
► European Union
► Western European alliance
► Economic and monetary union
Question No: 16 ( Marks: 1 ) - Please choose one
Few years ago, employees of a international company took wages cuts to help the firm offset large losses. Now firm is again earning profits and employees believe that their wages should be restored but company is not willing to restore their wages. Organization is showing which of the following behavior?
► Unethical
► Socially responsible
► Ethical
► Socioeconomic
Question No: 17 ( Marks: 1 ) - Please choose one
An individual's personal beliefs regarding what is right and wrong or good and bad is called:
► Ethics
► Values
► Norms
► Rituals
Question No: 18 ( Marks: 1 ) - Please choose one
The relationship between corporate social involvement and economic performance is:
► Positive
► Negative
► Perfect positive
► Perfect negative
Question No: 19 ( Marks: 1 ) - Please choose one
The culture of an organization is largely determined by:
► Top management
► Employees
► Stockholders
► The company founders
Question No: 20 ( Marks: 1 ) - Please choose one
All of the following are Dimensions of organizational culture EXCEPT:
► Innovation
► Aggressiveness
► Stability
► Customer orientation
Question No: 21 ( Marks: 1 ) - Please choose one
Constituencies in an organization's external environment that are affected by the organization's decisions and actions are called:
► Stakeholders
► Advisories
► Beneficiaries
► Environmentalists
Question No: 22 ( Marks: 1 ) - Please choose one
Environment made up of specific outside elements within which an organization interfaces in the course of conducting its business is called:
► Internal environment
► External environment
► The task environment
► The mega environment
Question No: 23 ( Marks: 1 ) - Please choose one
The quantitative approach has contributed directly in the areas of:
► Planning and control
► Controlling and leading
► Organizing and controlling
► Planning and leading
Question No: 24 ( Marks: 1 ) - Please choose one
Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation is called:
► Contingency theory
► Behavioral theory
► Administrative theory
► Social theory
Question No: 25 ( Marks: 1 ) - Please choose one
In Maslow's hierarchy of need, status is an example of which of the folowing need?
► Physiological
► Esteem
► Safety
► Social
Question No: 26 ( Marks: 1 ) - Please choose one
Which of the following behavior had dramatically influenced by Hawthorne studies?
► Human behavior
► Social behavior
► Moral behavior
► Ethical behavior
Question No: 27 ( Marks: 1 ) - Please choose one
The formal right to give orders, make decisions, and see that tasks are completed is called:
► Centralization
► Authority
► Responsibility
► Decentralization
Question No: 28 ( Marks: 1 ) - Please choose one
The managerial functions according to Fayol were :
► Organizing, staffing, commanding, coordinating and controlling
► Commanding, organizing, planning, coordinating and staffing
► Controlling, commanding, organizing, planning and leading
► Planning, organizing, commanding, coordinating and controlling
Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following is considered to be the father of modern computing?
► Fredrick W Taylor
► Abraham Maslow
► Charles Babbage
► Max Weber
Question No: 30 ( Marks: 1 ) - Please choose one
Which type of managerial skill refers to the ability to analyze and diagnose complex situations?
► Problem-solving
► Interpersonal
► Conceptual
► Technical
Question No: 31 ( Marks: 1 ) - Please choose one
If you get more output from a given input, you have:
► Decreased effectiveness
► Increased effectiveness
► Decreased efficiency
► Increased efficiency
Question No: 32 ( Marks: 1 ) - Please choose one
Interpersonal roles include which of the following three roles?
► Disseminating, figurehead and liaison
► Figurehead, leader and liaison
► Disturbance handler, monitor and entrepreneur
► Monitor, resource allocator and negotiator
Question No: 33 ( Marks: 1 ) - Please choose one
A manager transmits the information outside the organization. He is performing which of the following role?
► Spokesperson
► Representative
► Disseminator
► Agent
Question No: 34 ( Marks: 1 ) - Please choose one
A universally accepted model of a successful manager could be described as:
► One who practices the four universal processes or functions
► One who executes all of the roles in a professional manner
► One who possesses all management skills at high levels
► There is no universally accepted model of a successful manager
Question No: 35 ( Marks: 1 ) - Please choose one
Dr. Edward Deming has described his Philosophy about quality in:
► 14 Points
► 6 Points
► 8 Points
► 20 Points
Question No: 36 ( Marks: 1 ) - Please choose one
The traditional shape of an organization was:
► Circle
► Pyramid
► Square
► Diamond
Question No: 37 ( Marks: 1 ) - Please choose one
The science which studies the nature of things, particularly values and ethics is called:
► Anthropology
► Philosophy
► Economics
► Political sciences
Question No: 38 ( Marks: 1 ) - Please choose one
The new business model reflects today's reality that:
► A large number of competitors are in the world.
► Information can be shared and exchanged instantaneously anywhere in the world
► People can move from one part to another part of the country easily
► Trade barriers are removed
Question No: 39 ( Marks: 1 ) - Please choose one
The course which studies the values and ethics is called:
► Philosophy
► Behavioral science
► Economics
► Psychology
Question No: 40 ( Marks: 1 ) - Please choose one
Which of the following courses helps managers gain a better understanding of motivation, leadership, trust, employee selection, performance appraisals and training techniques?
► Psychology
► Sociology
► Political science
► Anthropology
Question No: 41 ( Marks: 10 )
Describe Porter's Model and explain how a manager would use it to develop a strategy to achieve competitive advantage.
mgt503 paper2
MIDTERM EXAMINATION
Spring 2009
MGT503- Principles of Management (Session - 3)
Time: 60 min
Marks: 50
Question No: 1 ( Marks: 1 ) - Please choose one
Sulman thinks about his job while playing with his son on the weekend, and he continually volunteers to do extra assignments and project for his department. These suggest that Sulman has a strong need for :
► Esteem
► Security
► Achievement
► Power
Question No: 2 ( Marks: 1 ) - Please choose one
Asim assigned Khalid a project to be completed by the end of the month and then hold periodic meetings with him to review his progress. Which management function Asim is performing?
► Planning
► Leading
► Controlling
► Organizing
Question No: 3 ( Marks: 1 ) - Please choose one
The single European Union currency is called:
► Franc
► Franc-mark
► Pound
► Euro
Question No: 4 ( Marks: 1 ) - Please choose one
A large chemical company not only dispose off all toxic waste properly as outlined by law, but it also spends $1 million dollars each year on research to determine better processes for all businesses to use in disposing of toxic wastes. This company is exhibiting which of the following?
► Social responsibility
► Social obligation
► Moral obligation
► Social responsiveness
Question No: 5 ( Marks: 1 ) - Please choose one
Ali has decided to implement changes within the production process of his organization. This decision was based upon his review of how well the performance level of the organization is meeting the established goals for the company. He is practicing which of the following management functions.
► Planning
► Controlling
► Leading
► Organizing
Question No: 6 ( Marks: 1 ) - Please choose one
A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
► Single-use plan
► Specific plan
► Reaction plan
► Directional plan
Question No: 7 ( Marks: 1 ) - Please choose one
The intent of which of the following is to reduce uncertainty by playing out potential situations under different specific conditions?
► Project management
► Scheduling
► Environmental analysis
► Scenario planning
Question No: 8 ( Marks: 1 ) - Please choose one
All of the following are disadvantages of group decision making EXCEPT:
► More time taken to reach a solution
► Minority domination
► More alternatives are generated
► Groupthink decreases effectiveness of decision
Question No: 9 ( Marks: 1 ) - Please choose one
The strap of Ali's bag tore off as he threw it over his shoulder. On the way to school, he stopped at the first store that carries bags, walked in and purchased one from the front rack. Ali has just made which of the following type of decision?
► Maximizing
► Satisficing
► Risky
► Optimal
Question No: 10 ( Marks: 1 ) - Please choose one
Asad spoke out in a meeting in favor of a potential cost savings that would result from a new employee benefits program offered by the company. He later received information that showed that his initial decision about the cost savings was incorrect, but he was too embarrassed to publicly admit that he was wrong, so he stuckby his original statement. Asad is practicing which of the following?
► Bounded rationality
► Satisficing
► Escalation of commitment
► Maximizing
Question No: 11 ( Marks: 1 ) - Please choose one
Aisha wants to sell her house. She makes a decision to sell house to the first person who comes along after getting the initial offer. which of the following she is practicing?
► Bounding rationality
► Satisficing
► Competitive
► Optimizing
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following aspect of decision making is based on facts such as costs, revenues and product design specifications?
► Decision quality
► Escalation of commitment
► Optimizing
► Satisficing
Question No: 13 ( Marks: 1 ) - Please choose one
In case of a simple problem the assumptions of rationality can be met because of which of the following?
► Goals are clear and alternatives are boundless
► Goals are unlimited and alternatives are limitless
► Goals are clear and alternatives limited
► Goals are boundless and alternatives are clear
Question No: 14 ( Marks: 1 ) - Please choose one
Most of the time lower level management of organizations have to deal with problems which are:
► Satisficing
► Well-structured
► Non-programmed
► Ill-structured
Question No: 15 ( Marks: 1 ) - Please choose one
Putting a decision into action and conveying the decision to the persons who will be affected by it, is known as:
► Decision implementation
► Rational decision making
► Irrational decision making
► Problem identification
Question No: 16 ( Marks: 1 ) - Please choose one
Once a manager has identified a problem, the next step would be the identification of:
► Discrepancies
► Decision criteria
► Scenarios
► Factor weights
Question No: 17 ( Marks: 1 ) - Please choose one
A plant manager of an organization, who is trying to reduce turnover of production workers, notices that turnover has decreased by 10 percent in four months after he introduced a new training program, the manager is at which step in the rational decision-making process?
► Identify the problem
► Evaluate the decision criteria
► Analyze the alternatives
► Evaluate the results
Question No: 18 ( Marks: 1 ) - Please choose one
A retail clothing store manager who estimates how much to order for the current spring season based on last spring's outcomes is operating under what kind of decision-making condition?
► Seasonal
► Risk
► Uncertainty
► Certainty
Question No: 19 ( Marks: 1 ) - Please choose one
The extent to which an alternative can be accomplished within related organizational constraints such as time, budgets, technology and policies is called:
► Reversibility
► Sustainability
► Feasibility
► Acceptability
Question No: 20 ( Marks: 1 ) - Please choose one
A choice made from two or more alternatives is called:
► Support
► System
► Network
► Decision
Question No: 21 ( Marks: 1 ) - Please choose one
An agreement among the Mexican, Canadian and U.S government in which barriers to free trade have been eliminated is called:
► NAFTA
► ASEAN
► EU
► WTO
Question No: 22 ( Marks: 1 ) - Please choose one
Few years ago, employees of a international company took wages cuts to help the firm offset large losses. Now firm is again earning profits and employees believe that their wages should be restored but company is not willing to restore their wages. Organization is showing which of the following behavior?
► Unethical
► Socially responsible
► Ethical
► Socioeconomic
Question No: 23 ( Marks: 1 ) - Please choose one
A large pulp and paper company meets all federal guidelines and obeys all laws rigorously as it cuts down timber. The primary concern of this company is compliance and profit maximization for its stockholders. This company is exhibiting which of the following?
► Social responsibility
► Social obligation
► Moral obligation
► Social responsiveness
Question No: 24 ( Marks: 1 ) - Please choose one
Mega environment, that includes the attitudes, values, norms, beliefs, behaviors and associated demographic trends that are characteristics of a given geographic area, is called:
► The socio-cultural element
► The international element
► The economic element
► The legal-political element
Question No: 25 ( Marks: 1 ) - Please choose one
All of the following are the parts of organization's external environment, EXCEPT:
► Culture
► Customers
► Competitors
► Regulators
Question No: 26 ( Marks: 1 ) - Please choose one
All of the following are the part of organization's internal environment EXCEPT:
► Employees
► Owner
► Culture
► Regulators
Question No: 27 ( Marks: 1 ) - Please choose one
Task environment is also called:
► Specific environment
► Goal orientated environment
► Open environment
► Close environment
Question No: 28 ( Marks: 1 ) - Please choose one
Mega environment is also called:
► Open environment
► Close environment
► Flexible environment
► General environment
Question No: 29 ( Marks: 1 ) - Please choose one
The Walt Disney company's movies, theme parks and television programs all benefit one another. Children who enjoy a Disney movie like LION KING want to go to Disney world and see lion king show. They benefits greatly from:
► Negative Entropy
► Synergy
► Transformation
► Entropy
Question No: 30 ( Marks: 1 ) - Please choose one
The bank of New England uses models to figure out how many teller need to be on duty at each location at various times throughout the day. Bank is using which of the following approaches?
► Management science
► Operations management
► Total quality management
► Contingency perspective
Question No: 31 ( Marks: 1 ) - Please choose one
Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation is called:
► Contingency theory
► Behavioral theory
► Administrative theory
► Social theory
Question No: 32 ( Marks: 1 ) - Please choose one
Chester Barnard saw organizations as a ______system that required human assistance.
► Moral
► Ethical
► Social
► Technical
Question No: 33 ( Marks: 1 ) - Please choose one
Low level management has a complete authority to make decisions in case of:
► Centralization
► Decentralization
► Scalar Chain
► Order
Question No: 34 ( Marks: 1 ) - Please choose one
According to Adam Smith, the division of labor results in:
► Increased worker motivation
► Decreased worker specialization
► Increased worker productivity
► Decreased worker motivation
Question No: 35 ( Marks: 1 ) - Please choose one
According to Mintzberg monitor, disseminator and spokesperson are all:
► Interpersonal roles
► Informational roles
► Decisional roles
► Functional roles
Question No: 36 ( Marks: 1 ) - Please choose one
Hussain is the physician who heads the Critical Care Unit at Mercy Hospital, the most important role that he performs is:
► Informational
► Decisional
► Interpersonal
► Functional
Question No: 37 ( Marks: 1 ) - Please choose one
Controlling contingent situation comes under which of the following roles?
► Spokesperson
► Monitor
► Leader
► Disturbance handler
Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following is most important characteristic of an entrepreneur?
► Planning
► Communication
► Rapid decision making
► Goal setting
Question No: 39 ( Marks: 1 ) - Please choose one
Adam Smith wrote his book “The Wealth of Nations” in:
► 15th century
► 17th century
► 20th century
► 18th century
Question No: 40 ( Marks: 1 ) - Please choose one
Which of the following courses helps managers gain a better understanding of motivation, leadership, trust, employee selection, performance appraisals and training techniques?
► Psychology
► Sociology
► Political science
► Anthropology
Question No: 41 ( Marks: 10 )
Ali is working as the head of tea unit of a multinational organization. Expenses of tea unit are increasing day by day. He is much worried. He decided to call a meeting and ask for some suggestions to reduce expenses from his subordinates. Different subordinates suggest for the downsizing of research department as it was not working efficiently. Ali still wants to think over this suggestion. What steps he should take to make a rational decision?
Spring 2009
MGT503- Principles of Management (Session - 3)
Time: 60 min
Marks: 50
Question No: 1 ( Marks: 1 ) - Please choose one
Sulman thinks about his job while playing with his son on the weekend, and he continually volunteers to do extra assignments and project for his department. These suggest that Sulman has a strong need for :
► Esteem
► Security
► Achievement
► Power
Question No: 2 ( Marks: 1 ) - Please choose one
Asim assigned Khalid a project to be completed by the end of the month and then hold periodic meetings with him to review his progress. Which management function Asim is performing?
► Planning
► Leading
► Controlling
► Organizing
Question No: 3 ( Marks: 1 ) - Please choose one
The single European Union currency is called:
► Franc
► Franc-mark
► Pound
► Euro
Question No: 4 ( Marks: 1 ) - Please choose one
A large chemical company not only dispose off all toxic waste properly as outlined by law, but it also spends $1 million dollars each year on research to determine better processes for all businesses to use in disposing of toxic wastes. This company is exhibiting which of the following?
► Social responsibility
► Social obligation
► Moral obligation
► Social responsiveness
Question No: 5 ( Marks: 1 ) - Please choose one
Ali has decided to implement changes within the production process of his organization. This decision was based upon his review of how well the performance level of the organization is meeting the established goals for the company. He is practicing which of the following management functions.
► Planning
► Controlling
► Leading
► Organizing
Question No: 6 ( Marks: 1 ) - Please choose one
A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
► Single-use plan
► Specific plan
► Reaction plan
► Directional plan
Question No: 7 ( Marks: 1 ) - Please choose one
The intent of which of the following is to reduce uncertainty by playing out potential situations under different specific conditions?
► Project management
► Scheduling
► Environmental analysis
► Scenario planning
Question No: 8 ( Marks: 1 ) - Please choose one
All of the following are disadvantages of group decision making EXCEPT:
► More time taken to reach a solution
► Minority domination
► More alternatives are generated
► Groupthink decreases effectiveness of decision
Question No: 9 ( Marks: 1 ) - Please choose one
The strap of Ali's bag tore off as he threw it over his shoulder. On the way to school, he stopped at the first store that carries bags, walked in and purchased one from the front rack. Ali has just made which of the following type of decision?
► Maximizing
► Satisficing
► Risky
► Optimal
Question No: 10 ( Marks: 1 ) - Please choose one
Asad spoke out in a meeting in favor of a potential cost savings that would result from a new employee benefits program offered by the company. He later received information that showed that his initial decision about the cost savings was incorrect, but he was too embarrassed to publicly admit that he was wrong, so he stuckby his original statement. Asad is practicing which of the following?
► Bounded rationality
► Satisficing
► Escalation of commitment
► Maximizing
Question No: 11 ( Marks: 1 ) - Please choose one
Aisha wants to sell her house. She makes a decision to sell house to the first person who comes along after getting the initial offer. which of the following she is practicing?
► Bounding rationality
► Satisficing
► Competitive
► Optimizing
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following aspect of decision making is based on facts such as costs, revenues and product design specifications?
► Decision quality
► Escalation of commitment
► Optimizing
► Satisficing
Question No: 13 ( Marks: 1 ) - Please choose one
In case of a simple problem the assumptions of rationality can be met because of which of the following?
► Goals are clear and alternatives are boundless
► Goals are unlimited and alternatives are limitless
► Goals are clear and alternatives limited
► Goals are boundless and alternatives are clear
Question No: 14 ( Marks: 1 ) - Please choose one
Most of the time lower level management of organizations have to deal with problems which are:
► Satisficing
► Well-structured
► Non-programmed
► Ill-structured
Question No: 15 ( Marks: 1 ) - Please choose one
Putting a decision into action and conveying the decision to the persons who will be affected by it, is known as:
► Decision implementation
► Rational decision making
► Irrational decision making
► Problem identification
Question No: 16 ( Marks: 1 ) - Please choose one
Once a manager has identified a problem, the next step would be the identification of:
► Discrepancies
► Decision criteria
► Scenarios
► Factor weights
Question No: 17 ( Marks: 1 ) - Please choose one
A plant manager of an organization, who is trying to reduce turnover of production workers, notices that turnover has decreased by 10 percent in four months after he introduced a new training program, the manager is at which step in the rational decision-making process?
► Identify the problem
► Evaluate the decision criteria
► Analyze the alternatives
► Evaluate the results
Question No: 18 ( Marks: 1 ) - Please choose one
A retail clothing store manager who estimates how much to order for the current spring season based on last spring's outcomes is operating under what kind of decision-making condition?
► Seasonal
► Risk
► Uncertainty
► Certainty
Question No: 19 ( Marks: 1 ) - Please choose one
The extent to which an alternative can be accomplished within related organizational constraints such as time, budgets, technology and policies is called:
► Reversibility
► Sustainability
► Feasibility
► Acceptability
Question No: 20 ( Marks: 1 ) - Please choose one
A choice made from two or more alternatives is called:
► Support
► System
► Network
► Decision
Question No: 21 ( Marks: 1 ) - Please choose one
An agreement among the Mexican, Canadian and U.S government in which barriers to free trade have been eliminated is called:
► NAFTA
► ASEAN
► EU
► WTO
Question No: 22 ( Marks: 1 ) - Please choose one
Few years ago, employees of a international company took wages cuts to help the firm offset large losses. Now firm is again earning profits and employees believe that their wages should be restored but company is not willing to restore their wages. Organization is showing which of the following behavior?
► Unethical
► Socially responsible
► Ethical
► Socioeconomic
Question No: 23 ( Marks: 1 ) - Please choose one
A large pulp and paper company meets all federal guidelines and obeys all laws rigorously as it cuts down timber. The primary concern of this company is compliance and profit maximization for its stockholders. This company is exhibiting which of the following?
► Social responsibility
► Social obligation
► Moral obligation
► Social responsiveness
Question No: 24 ( Marks: 1 ) - Please choose one
Mega environment, that includes the attitudes, values, norms, beliefs, behaviors and associated demographic trends that are characteristics of a given geographic area, is called:
► The socio-cultural element
► The international element
► The economic element
► The legal-political element
Question No: 25 ( Marks: 1 ) - Please choose one
All of the following are the parts of organization's external environment, EXCEPT:
► Culture
► Customers
► Competitors
► Regulators
Question No: 26 ( Marks: 1 ) - Please choose one
All of the following are the part of organization's internal environment EXCEPT:
► Employees
► Owner
► Culture
► Regulators
Question No: 27 ( Marks: 1 ) - Please choose one
Task environment is also called:
► Specific environment
► Goal orientated environment
► Open environment
► Close environment
Question No: 28 ( Marks: 1 ) - Please choose one
Mega environment is also called:
► Open environment
► Close environment
► Flexible environment
► General environment
Question No: 29 ( Marks: 1 ) - Please choose one
The Walt Disney company's movies, theme parks and television programs all benefit one another. Children who enjoy a Disney movie like LION KING want to go to Disney world and see lion king show. They benefits greatly from:
► Negative Entropy
► Synergy
► Transformation
► Entropy
Question No: 30 ( Marks: 1 ) - Please choose one
The bank of New England uses models to figure out how many teller need to be on duty at each location at various times throughout the day. Bank is using which of the following approaches?
► Management science
► Operations management
► Total quality management
► Contingency perspective
Question No: 31 ( Marks: 1 ) - Please choose one
Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation is called:
► Contingency theory
► Behavioral theory
► Administrative theory
► Social theory
Question No: 32 ( Marks: 1 ) - Please choose one
Chester Barnard saw organizations as a ______system that required human assistance.
► Moral
► Ethical
► Social
► Technical
Question No: 33 ( Marks: 1 ) - Please choose one
Low level management has a complete authority to make decisions in case of:
► Centralization
► Decentralization
► Scalar Chain
► Order
Question No: 34 ( Marks: 1 ) - Please choose one
According to Adam Smith, the division of labor results in:
► Increased worker motivation
► Decreased worker specialization
► Increased worker productivity
► Decreased worker motivation
Question No: 35 ( Marks: 1 ) - Please choose one
According to Mintzberg monitor, disseminator and spokesperson are all:
► Interpersonal roles
► Informational roles
► Decisional roles
► Functional roles
Question No: 36 ( Marks: 1 ) - Please choose one
Hussain is the physician who heads the Critical Care Unit at Mercy Hospital, the most important role that he performs is:
► Informational
► Decisional
► Interpersonal
► Functional
Question No: 37 ( Marks: 1 ) - Please choose one
Controlling contingent situation comes under which of the following roles?
► Spokesperson
► Monitor
► Leader
► Disturbance handler
Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following is most important characteristic of an entrepreneur?
► Planning
► Communication
► Rapid decision making
► Goal setting
Question No: 39 ( Marks: 1 ) - Please choose one
Adam Smith wrote his book “The Wealth of Nations” in:
► 15th century
► 17th century
► 20th century
► 18th century
Question No: 40 ( Marks: 1 ) - Please choose one
Which of the following courses helps managers gain a better understanding of motivation, leadership, trust, employee selection, performance appraisals and training techniques?
► Psychology
► Sociology
► Political science
► Anthropology
Question No: 41 ( Marks: 10 )
Ali is working as the head of tea unit of a multinational organization. Expenses of tea unit are increasing day by day. He is much worried. He decided to call a meeting and ask for some suggestions to reduce expenses from his subordinates. Different subordinates suggest for the downsizing of research department as it was not working efficiently. Ali still wants to think over this suggestion. What steps he should take to make a rational decision?
mgt201-paper1
MGT201- Financial Management (Session - 4)
Time: 60 min
Marks: 50
Question No: 1 ( Marks: 1 ) - Please choose one
What are the earnings per share (EPS) for a company that earned Rs.100, 000 last year in after-tax profits, has 200,000 common shares outstanding and Rs.1.2 million in retained earning at the year end?
► Rs.1.00
► Rs. 6.00
► Rs. 0.50
► Rs. 6.50
Question No: 2 ( Marks: 1 ) - Please choose one
Among the pairs given below select a(n) example of a principal and a(n) example of an agent respectively.
► Shareholder; manager
► Manager; owner
► Accountant; bondholder
► Shareholder; bondholder
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following is equal to the average tax rate?
► Total tax liability divided by taxable income
► Rate that will be paid on the next dollar of taxable income
► Median marginal tax rate
► Percentage increase in taxable income from the previous period
Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following would be deductible as an expense on the corporation's income statement?
► Interest paid on outstanding bonds
► Cash dividends paid on outstanding common stock
► Cash dividends paid on outstanding preferred stock
► All of the given options
Question No: 5 ( Marks: 1 ) - Please choose one
In conducting an index analysis every balance sheet item is divided by __________ and every income statement is divided by __________ respectively.
► Its corresponding base year balance sheet item; its corresponding base year income statement item
► Its corresponding base year income statement item; its corresponding base year balance sheet item
► Net sales or revenues; total assets
► Total assets; net sales or revenues
Question No: 6 ( Marks: 1 ) - Please choose one
Which group of ratios measures a firm's ability to meet short-term obligations?
► Liquidity ratios
► Debt ratios
► Coverage ratios
► Profitability ratios
Question No: 7 ( Marks: 1 ) - Please choose one
Which group of ratios relates profits to sales and investment?
► Liquidity ratios
► Debt ratios
► Coverage ratios
► Profitability ratios
Question No: 8 ( Marks: 1 ) - Please choose one
Interest paid on the original principal borrowed is often referred to as __________.
► Compound interest
► Present value
► Simple interest
► Future value
Question No: 9 ( Marks: 1 ) - Please choose one
If the following are the balance sheet changes, which one of them would represent use of funds by a company?
► Rs. 8,950 decrease in net fixed assets
► Rs. 5,005 decrease in accounts receivable
► Rs. 10,001 increase in accounts payable
► Rs. 12,012 decrease in notes payable
Question No: 10 ( Marks: 1 ) - Please choose one
In preparing a forecast balance sheet, it is likely that either cash or __________ will serve as a "plug figure" or balancing factor to ensure that assets equal liabilities plus shareholders' equity.
► Retained earnings
► Accounts receivable
► Shareholders' equity
► Notes payable (short-term borrowings)
Question No: 11 ( Marks: 1 ) - Please choose one
What is the present value of Rs.8,000 to be paid at the end of three years if the interest rate is 11%?
► Rs.5,850
► Rs.4,872
► Rs.6,725
► Rs.1,842
Question No: 12 ( Marks: 1 ) - Please choose one
What is the present value of Rs.1,000 to be paid at the end of 5 years if the interest rate is 8%.
► Rs.680.58
► Rs.1,462.23
► Rs.322.69
► Rs.401.98
Question No: 13 ( Marks: 1 ) - Please choose one
As interest rates go up, the present value of a stream of fixed cash flows _____.
► Goes down
► Goes up
► Stays the same
► Can not be found
Question No: 14 ( Marks: 1 ) - Please choose one
The benefit we expect from a project is expressed in terms of:
► Cash in flows
► Cash out flows
► Cash flows
► None of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
A proposal is accepted if payback period falls within the time period of 3 years. According to the given criteria which of the following project will be accepted?
Payback period
Project A 1.66
Project B 2.66
Project C 3.66
► Project A
► Project B
► Project C
► Project A & B
Question No: 16 ( Marks: 1 ) - Please choose one
If a project's initial cash outflow of Rs. 100,000 is followed by four annual receipts of 36,000 we can get the nearest discount factor by:
► Interpolation
► Dividing 100,000 by 36,000
► Dividing 36,000 by 100,000
► Insufficient information
Question No: 17 ( Marks: 1 ) - Please choose one
In which of the following situations you can expect multiple answers of IRR?
► More than one sign change taking place in cash flow diagram
► There are two adjacent arrows one of them is downward pointing & the other one is upward pointing
► During the life of project if you have any net cash outflow
► All of the given options
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following technique would be used for a project that has non-normal cash flows?
► Internal rate of return
► Multiple internal rate of return
► Modified internal rate of return
► Net present value
Question No: 19 ( Marks: 1 ) - Please choose one
What is the advantage of a longer life of the asset?
► Cash flows from the asset becomes non-predictable
► Cash flows from the asset becomes more predictable
► Cash inflows from the asset becomes more predictable
► Cash outflows from the asset becomes more predictable
Question No: 20 ( Marks: 1 ) - Please choose one
Which one of the following is NOT the disadvantage of the asset with very short life?
► Money has to be reinvested in some other project with uncertain NPV
► Money has to be reinvested in some other project with certain NPV
► Money has to be reinvested in some other project with return so risky
► None of the given options
Question No: 21 ( Marks: 1 ) - Please choose one
You are selecting a project from a mix of projects, what would be your first selection in descending order to give yourself the best chance to add most to the firm value, when operating under a single-period capital-rationing constraint?
► Profitability index (PI)
► Net present value (NPV)
► Internal rate of return (IRR)
► Payback period (PBP)
Question No: 22 ( Marks: 1 ) - Please choose one
Which one of the following is the right of the issuer to call back or retire the bond by paying off the bondholders before the maturity date?
► Call in
► Call option
► Call provision
► Put option
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following is a characteristic of a coupon bond?
► Pays interest on a regular basis (typically every six months)
► Does not pay interest on a regular basis but pays a lump sum at maturity
► Can always be converted into a specific number of shares of common stock in the issuing company
► Always sells at par
Question No: 24 ( Marks: 1 ) - Please choose one
When a bond will sell at a discount?
► The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
► The coupon rate is greater than yield to maturity
► The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
► The coupon rate is less than the current yield and the current yield is less than yield to maturity
Question No: 25 ( Marks: 1 ) - Please choose one
An investment opportunity set formed with two securities that are perfectly negatively correlated. What will be standard deviation in the global minimum variance portfolio?
► Equal to zero
► Greater than zero
► Equal to the sum of the securities' standard deviations
► Equal to -1
Question No: 26 ( Marks: 1 ) - Please choose one
How efficient portfolios of "N" risky securities are formed?
► These are formed with the securities that have the highest rates of return regardless of their standard deviations
► They have the highest risk and rates of return and the highest standard deviations
► They are selected from those securities with the lowest standard deviations regardless of their returns
► They have the highest rates of return for a given level of risk
Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following is NOT an example of hybrid equity?
► Convertible bonds
► Convertible debenture
► Common shares
► Preferred shares
Question No: 28 ( Marks: 1 ) - Please choose one
The value of dividend is derived from which of the following?
► Cash flow streams
► Capital gain /loss
► Difference between buying & selling price
► All of the given options
Question No: 29 ( Marks: 1 ) - Please choose one
How dividend yield on a stock is similar to the current yield on a bond?
► Both represent how much each security's price will increase in a year
► Both represent the security's annual income divided by its price
► Both are an accurate representation of the total annual return an investor can expect to earn by owning the security
► Both incorporate the par value in their calculation
Question No: 30 ( Marks: 1 ) - Please choose one
The market capitalization rate on the stock of Fast Growing Company is 20%. The expected ROE is 22% and the expected EPS ia Rs. 6.10. If the firm's plowback ratio is 90%, the P/E ratio will be ________.
► 8.33
► 50.0
► 9.09
► 7.69
Question No: 31 ( Marks: 1 ) - Please choose one
In the dividend discount model, which of the following is (are) NOT incorporated into the discount rate?
► Real risk-free rate
► Risk premium for stocks
► Return on assets
► Expected inflation rate
Question No: 32 ( Marks: 1 ) - Please choose one
A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index, most likely has _________.
► An anticipated earnings growth rate which is less than that of the average firm
► A dividend yield which is less than that of the average firm
► Less predictable earnings growth than that of the average firm
► Greater cyclicality of earnings growth than that of the average firm
Question No: 33 ( Marks: 1 ) - Please choose one
Which of the following is the variability of return on stocks or portfolios not explained by general market movements. It is avoidable through diversification?
► Systematic risk
► Standard deviation
► Unsystematic risk
► Financial risk
Question No: 34 ( Marks: 1 ) - Please choose one
When Return is being estimated in % terms, the units of Standard Deviation will be mention in __________.
► %
► Times
► Number of days
► All of the given options
Question No: 35 ( Marks: 1 ) - Please choose one
A well-diversified portfolio is defined as:
► One that is diversified over a large enough number of securities that the nonsystematic variance is essentially zero
► One that contains securities from at least three different industry sectors
► A portfolio whose factor beta equals 1.0
► A portfolio that is equally weighted
Question No: 36 ( Marks: 1 ) - Please choose one
Which of the following is NOT a major cause of unsystematic risk.
► New competitors
► New product management
► Worldwide inflation
► Strikes
Question No: 37 ( Marks: 1 ) - Please choose one
You are considering two investment proposals, project A and project B. B's expected net present value is Rs. 1,000 greater than that for A and A's dispersion of net present value is less than that for B. On the basis of risk and return, what would be your conclusion?
► Project A dominates project B
► Project B dominates project A
► Neither project dominates the other in terms of risk and return
► Incomplete information
Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following is a drawback of percentage of sales method?
► It is a rough approximation
► There is change in fixed asset during the forecasted period
► Lumpy assets are not taken into account
► All of the given options
Question No: 39 ( Marks: 1 ) - Please choose one
Which of the following need to be excluded while we calculate the incremental cash flows?
► Depreciation
► Sunk cost
► Opportunity cost
► Non-cash item
Question No: 40 ( Marks: 1 ) - Please choose one
Why companies invest in projects with negative NPV?
► Because there is hidden value in each project
► Because they have chance of rapid growth
► Because they have invested a lot
► All of the given options
Question No: 41 ( Marks: 10 )
ICO Company must decide between two mutually exclusive projects. The following information describes the cash flows of each project.
Year Project "A" Project "B"
0 Rs. (20,000) Rs. 24,000
1 10,000 10,000
2 8,000 10,000
3 6,000 10,000
Assume that 15% is the appropriate required rate of return. What decision should the firm make about these two projects?
If the firm reevaluated these projects at 10%, what decision should the firm make about these two projects?
Time: 60 min
Marks: 50
Question No: 1 ( Marks: 1 ) - Please choose one
What are the earnings per share (EPS) for a company that earned Rs.100, 000 last year in after-tax profits, has 200,000 common shares outstanding and Rs.1.2 million in retained earning at the year end?
► Rs.1.00
► Rs. 6.00
► Rs. 0.50
► Rs. 6.50
Question No: 2 ( Marks: 1 ) - Please choose one
Among the pairs given below select a(n) example of a principal and a(n) example of an agent respectively.
► Shareholder; manager
► Manager; owner
► Accountant; bondholder
► Shareholder; bondholder
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following is equal to the average tax rate?
► Total tax liability divided by taxable income
► Rate that will be paid on the next dollar of taxable income
► Median marginal tax rate
► Percentage increase in taxable income from the previous period
Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following would be deductible as an expense on the corporation's income statement?
► Interest paid on outstanding bonds
► Cash dividends paid on outstanding common stock
► Cash dividends paid on outstanding preferred stock
► All of the given options
Question No: 5 ( Marks: 1 ) - Please choose one
In conducting an index analysis every balance sheet item is divided by __________ and every income statement is divided by __________ respectively.
► Its corresponding base year balance sheet item; its corresponding base year income statement item
► Its corresponding base year income statement item; its corresponding base year balance sheet item
► Net sales or revenues; total assets
► Total assets; net sales or revenues
Question No: 6 ( Marks: 1 ) - Please choose one
Which group of ratios measures a firm's ability to meet short-term obligations?
► Liquidity ratios
► Debt ratios
► Coverage ratios
► Profitability ratios
Question No: 7 ( Marks: 1 ) - Please choose one
Which group of ratios relates profits to sales and investment?
► Liquidity ratios
► Debt ratios
► Coverage ratios
► Profitability ratios
Question No: 8 ( Marks: 1 ) - Please choose one
Interest paid on the original principal borrowed is often referred to as __________.
► Compound interest
► Present value
► Simple interest
► Future value
Question No: 9 ( Marks: 1 ) - Please choose one
If the following are the balance sheet changes, which one of them would represent use of funds by a company?
► Rs. 8,950 decrease in net fixed assets
► Rs. 5,005 decrease in accounts receivable
► Rs. 10,001 increase in accounts payable
► Rs. 12,012 decrease in notes payable
Question No: 10 ( Marks: 1 ) - Please choose one
In preparing a forecast balance sheet, it is likely that either cash or __________ will serve as a "plug figure" or balancing factor to ensure that assets equal liabilities plus shareholders' equity.
► Retained earnings
► Accounts receivable
► Shareholders' equity
► Notes payable (short-term borrowings)
Question No: 11 ( Marks: 1 ) - Please choose one
What is the present value of Rs.8,000 to be paid at the end of three years if the interest rate is 11%?
► Rs.5,850
► Rs.4,872
► Rs.6,725
► Rs.1,842
Question No: 12 ( Marks: 1 ) - Please choose one
What is the present value of Rs.1,000 to be paid at the end of 5 years if the interest rate is 8%.
► Rs.680.58
► Rs.1,462.23
► Rs.322.69
► Rs.401.98
Question No: 13 ( Marks: 1 ) - Please choose one
As interest rates go up, the present value of a stream of fixed cash flows _____.
► Goes down
► Goes up
► Stays the same
► Can not be found
Question No: 14 ( Marks: 1 ) - Please choose one
The benefit we expect from a project is expressed in terms of:
► Cash in flows
► Cash out flows
► Cash flows
► None of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
A proposal is accepted if payback period falls within the time period of 3 years. According to the given criteria which of the following project will be accepted?
Payback period
Project A 1.66
Project B 2.66
Project C 3.66
► Project A
► Project B
► Project C
► Project A & B
Question No: 16 ( Marks: 1 ) - Please choose one
If a project's initial cash outflow of Rs. 100,000 is followed by four annual receipts of 36,000 we can get the nearest discount factor by:
► Interpolation
► Dividing 100,000 by 36,000
► Dividing 36,000 by 100,000
► Insufficient information
Question No: 17 ( Marks: 1 ) - Please choose one
In which of the following situations you can expect multiple answers of IRR?
► More than one sign change taking place in cash flow diagram
► There are two adjacent arrows one of them is downward pointing & the other one is upward pointing
► During the life of project if you have any net cash outflow
► All of the given options
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following technique would be used for a project that has non-normal cash flows?
► Internal rate of return
► Multiple internal rate of return
► Modified internal rate of return
► Net present value
Question No: 19 ( Marks: 1 ) - Please choose one
What is the advantage of a longer life of the asset?
► Cash flows from the asset becomes non-predictable
► Cash flows from the asset becomes more predictable
► Cash inflows from the asset becomes more predictable
► Cash outflows from the asset becomes more predictable
Question No: 20 ( Marks: 1 ) - Please choose one
Which one of the following is NOT the disadvantage of the asset with very short life?
► Money has to be reinvested in some other project with uncertain NPV
► Money has to be reinvested in some other project with certain NPV
► Money has to be reinvested in some other project with return so risky
► None of the given options
Question No: 21 ( Marks: 1 ) - Please choose one
You are selecting a project from a mix of projects, what would be your first selection in descending order to give yourself the best chance to add most to the firm value, when operating under a single-period capital-rationing constraint?
► Profitability index (PI)
► Net present value (NPV)
► Internal rate of return (IRR)
► Payback period (PBP)
Question No: 22 ( Marks: 1 ) - Please choose one
Which one of the following is the right of the issuer to call back or retire the bond by paying off the bondholders before the maturity date?
► Call in
► Call option
► Call provision
► Put option
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following is a characteristic of a coupon bond?
► Pays interest on a regular basis (typically every six months)
► Does not pay interest on a regular basis but pays a lump sum at maturity
► Can always be converted into a specific number of shares of common stock in the issuing company
► Always sells at par
Question No: 24 ( Marks: 1 ) - Please choose one
When a bond will sell at a discount?
► The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
► The coupon rate is greater than yield to maturity
► The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
► The coupon rate is less than the current yield and the current yield is less than yield to maturity
Question No: 25 ( Marks: 1 ) - Please choose one
An investment opportunity set formed with two securities that are perfectly negatively correlated. What will be standard deviation in the global minimum variance portfolio?
► Equal to zero
► Greater than zero
► Equal to the sum of the securities' standard deviations
► Equal to -1
Question No: 26 ( Marks: 1 ) - Please choose one
How efficient portfolios of "N" risky securities are formed?
► These are formed with the securities that have the highest rates of return regardless of their standard deviations
► They have the highest risk and rates of return and the highest standard deviations
► They are selected from those securities with the lowest standard deviations regardless of their returns
► They have the highest rates of return for a given level of risk
Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following is NOT an example of hybrid equity?
► Convertible bonds
► Convertible debenture
► Common shares
► Preferred shares
Question No: 28 ( Marks: 1 ) - Please choose one
The value of dividend is derived from which of the following?
► Cash flow streams
► Capital gain /loss
► Difference between buying & selling price
► All of the given options
Question No: 29 ( Marks: 1 ) - Please choose one
How dividend yield on a stock is similar to the current yield on a bond?
► Both represent how much each security's price will increase in a year
► Both represent the security's annual income divided by its price
► Both are an accurate representation of the total annual return an investor can expect to earn by owning the security
► Both incorporate the par value in their calculation
Question No: 30 ( Marks: 1 ) - Please choose one
The market capitalization rate on the stock of Fast Growing Company is 20%. The expected ROE is 22% and the expected EPS ia Rs. 6.10. If the firm's plowback ratio is 90%, the P/E ratio will be ________.
► 8.33
► 50.0
► 9.09
► 7.69
Question No: 31 ( Marks: 1 ) - Please choose one
In the dividend discount model, which of the following is (are) NOT incorporated into the discount rate?
► Real risk-free rate
► Risk premium for stocks
► Return on assets
► Expected inflation rate
Question No: 32 ( Marks: 1 ) - Please choose one
A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index, most likely has _________.
► An anticipated earnings growth rate which is less than that of the average firm
► A dividend yield which is less than that of the average firm
► Less predictable earnings growth than that of the average firm
► Greater cyclicality of earnings growth than that of the average firm
Question No: 33 ( Marks: 1 ) - Please choose one
Which of the following is the variability of return on stocks or portfolios not explained by general market movements. It is avoidable through diversification?
► Systematic risk
► Standard deviation
► Unsystematic risk
► Financial risk
Question No: 34 ( Marks: 1 ) - Please choose one
When Return is being estimated in % terms, the units of Standard Deviation will be mention in __________.
► %
► Times
► Number of days
► All of the given options
Question No: 35 ( Marks: 1 ) - Please choose one
A well-diversified portfolio is defined as:
► One that is diversified over a large enough number of securities that the nonsystematic variance is essentially zero
► One that contains securities from at least three different industry sectors
► A portfolio whose factor beta equals 1.0
► A portfolio that is equally weighted
Question No: 36 ( Marks: 1 ) - Please choose one
Which of the following is NOT a major cause of unsystematic risk.
► New competitors
► New product management
► Worldwide inflation
► Strikes
Question No: 37 ( Marks: 1 ) - Please choose one
You are considering two investment proposals, project A and project B. B's expected net present value is Rs. 1,000 greater than that for A and A's dispersion of net present value is less than that for B. On the basis of risk and return, what would be your conclusion?
► Project A dominates project B
► Project B dominates project A
► Neither project dominates the other in terms of risk and return
► Incomplete information
Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following is a drawback of percentage of sales method?
► It is a rough approximation
► There is change in fixed asset during the forecasted period
► Lumpy assets are not taken into account
► All of the given options
Question No: 39 ( Marks: 1 ) - Please choose one
Which of the following need to be excluded while we calculate the incremental cash flows?
► Depreciation
► Sunk cost
► Opportunity cost
► Non-cash item
Question No: 40 ( Marks: 1 ) - Please choose one
Why companies invest in projects with negative NPV?
► Because there is hidden value in each project
► Because they have chance of rapid growth
► Because they have invested a lot
► All of the given options
Question No: 41 ( Marks: 10 )
ICO Company must decide between two mutually exclusive projects. The following information describes the cash flows of each project.
Year Project "A" Project "B"
0 Rs. (20,000) Rs. 24,000
1 10,000 10,000
2 8,000 10,000
3 6,000 10,000
Assume that 15% is the appropriate required rate of return. What decision should the firm make about these two projects?
If the firm reevaluated these projects at 10%, what decision should the firm make about these two projects?
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