PGDM%20III%20Trimester%20May%202009

8/9/2019 PGDM%20III%20Trimester%20May%202009

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May 09 PGDM 301

New Horizon Leadership InstituteRing Road, Panathur Post, Near Marathahalli

Bangalore-560 087Approved by AICTE, ministry of HRD, Govt of IndiaAn ISO 9001:2000 certified institute

III Trimester Examination May 2009Sub: Financial Management

Sub Code: PGDM - 301Duration:3Hours TotalMarks:100

SectionA(Answerallquestions) 20x1=20

1. An investor will expect higher return from an investment if risk is high. (True/False)2. In financial decisions it is the present value concepts which are relevant. (True/False)3. According to the original MM Approach, the value of firm is affected by the debt equity mix.

(True/False)

4. Internal rate of return determine the maximum rate of interest that a firm can afford to pay on theborrowing for a project. (True/False)

5. Retained earnings carry no cost to the firm. (True/False)6. The operating cycle is longer in case of a trading firm than the manufacturing firm.(True/False)7. If payment of dividend is expected to decrease the market value of the share, the dividend must

be paid otherwise profits must be retained. (True/False)

8. Shareholders generally prefer capital gain to current dividend. (True/False)9. Inadequate amount of working capital will ensure solvency of the firm. (True/False)10.The value of levered firm is higher than that of an unlevered firm on account of corporate tax.

(True/False)

11.Profit maximization ignoresa) Corporate tax b) Time value of money c) Efficient allocation of resources

d) Financial discipline in the organization

12. If you invest Rs 500 today @compound interest of 9%, what will be its future value after 50years?

a)50000 b)31718 c)37178 d)37718

13.A project costs Rs. 350000 and will yield returns of approximately Rs. 60000 every year. What isits payback period?

a)4 years b) 5years c) 5 years and 7 months d) 5 years and 10 months

14.Financial leverage measuresa) Financial risk b) business risk c) both d) none of these

15. If a company declares a constant dividend of Rs.20 and its shares are currently selling at a priceof Rs.200, the cost of equity is:

a) 20% b) 40% c) 30% d) 10%16.Working capital decision is directly affected by all of the following factors except:

a) Operating cycle b) Credit policy c) Market Demand d) Capital structure17.Given, Selling price per unit Rs.120, variable cost per unit Rs. 70, Fixed cost Rs.200000,

what is operating leverage for 6000 units of production?

a) 4 b)3.5 c)4.5 d)3


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May 09 PGDM 301

30.A company has a share capital of Rs.200000 divided into shares of 10 each. It has majorexpansion programme requiring an additional investment of Rs 100000.The management is

considering the following alternatives:a) Issue of 10% debentures of Rs 100000b) Issue of 10000, 15% preference shares of Rs 10 eachc) Issue of 10000 equity shares of 10 each

The companys present level of EBIT is Rs.60000 per annum. Calculate EPS for the above three

alternatives and suggest which plan the company should select. Tax rate is 50%.

31.Given the following information about ABC Ltd, show the effect of dividend policy on themarket price per share at dividend-payout ratio of 0%, 60% and 100%, using Walters model?

Earnings per share is Rs.8. Cost of capital is 12%. Assumed rate of return is 15%.

32.The following data relates to two companies A and B Ltd. The capital employed is:Particulars Co. A Co. B

9% Debentures Nil Rs. 2,50,000Equity share capital

(@ Rs.10 per share)

Rs. 500,000 Rs. 250,000

EBIT Rs. 100,000 Rs. 100,000

Equity shareholders of A Co. find that despite same return earned by their company as that of

company B, their EPS is much less as compared to that of B Co. You are required to calculate the

financial leverage and EPS for the 2 companies and state reasons for higher EPS in case of Co. B

as compared to Co. A. Assume tax rate is 50%.

Section D(Compulsory) 1x20=20

33.Elixir Corp. is considering two projects which require an investment of Rs.200,000 in eachproject and a life of 4 years. Company requires a rate of return of 15%. The estimated net profits

before depreciation and tax of the two projects are as follows:

Year Project A Project B

1 85000 120000

2 100000 105000

3 120000 70000

4 90000 85000

Depreciation is charged by straight line method. Tax rate is 50%.

Suggest the company which project it should select based on NPV method.


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May 09 PGDM 302New Horizon Leadership Institute

Ring Road, Panathur Post, Near Marathahalli

Bangalore-560 087

Approved by AICTE, ministry of HRD, Govt of IndiaAn ISO 9001:2000 certified institute

III Trimester Examination May 2009Sub: Production and Operations Management


SectionA(AnsweralltheQuestions) 20x1=20

1. In a Manufacturing industry, the output is tangible [True / False]2. Process Reengineering involves introducing negligible or very minor changes to Process design

[True / False]

3. The ratio of the Function to the Cost of a product is termed as its Value [True / False]4. High volume production with innovation is significant In the Maturity phase of product lifecycle

[True / False]

5. The amount of production and distribution chain brought under the ownership of a company is calledVertical Integration [True / False]

6. The extent of flexibility is very high in a Process layout [True / False]7. PDCA cycle means Plan-Do-Check-Act cycle [True / False]8. Cellular Manufacturing makes it easier for people and machines to work together efficiently

[True / False]

9. Productivity and Production have the same meaning [True / False]10.Time Study is a technique for work measurement [True / False]11.Operations Management is the business function involving transformation of inputs into

a) Goods and services of lower value b) Goods but not servicesc) Services but not goods d) Goods and services of higher value

12.Aggregate Planning involves planning for thea) Long term b) Intermediate term or Short termc) Aggregation of goods d) None of these

13.Material handling flexibility is one of the parameters ofa) Routing flexibility b) Volume flexibility c) Basic flexibility d) None of the these

14.Performance Benchmarking is also known asa) Statistical Benchmarking b) Functional benchmarkingc) Competitive Benchmarking d) Evaluation benchmarking

15.TQM meansa) Total Quantity Management b) True Quality Managementc) Total Quality Management d) Total Quality Monitoring

16.CAD is the short form ofa) Computer aided development b) Collaboration aided developmentc) Computer aided design d) Concurrent aided design


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May 09 PGDM 30217.A summary of all operations and inspections that are required is given in

a) Operations Process chart b) Time series chart c) Gantt chart d) None of these18.The planning for land, buildings, equipment, and furnishings, providing the physical capability to add

value to the organization is calleda) Work planning b) Facilitation planningc) Facility planning d) Production planning

19.The objective of Lean is toa) Increase waste b) Decrease productivityc) Increase cycle time d) Eliminate waste

20.Work Analysis is related to the area ofa) Environmental Engineering b) Industrial Engineeringc) Research and Development d) Statistical Engineering

Section B(Answeranyfour) 4x5=20

21.Highlight the key aspects involved in the role of an Operations Manager22.Write a detailed note on Value analysis23.Explain the concept of Aggregate Planning and list out the objectives24.Define Quality and highlight the various costs of Quality Assurance in an organization25.Briefly explain the various measures for Productivity26.Briefly explain the following:

a) MPS b) ERPSection C(Answeranyfour) 4x10=40

27.Explain the various challenges of the future for Operations Management

28.Explain in detail the different strategies used for development of a product29.Explain the concept of Benchmarking and Illustrate the various types and benefits of benchmarking30.Explain in detail the different types of Facility layout with their advantages and limitations31.Explain the meaning of Work Analysis and discuss the various stages involved in conducting it32.Write notes on the following:

a) MRP b) Kaizen c) TQM d) Automation


33.An automobile manufacturing organization called Autotech Limited is looking at deciding whetherto make or buy the components required. The organization is looking at the advice of a consultant totake a decision in this regard. If you were a consultant, what would be the various aspects that you

would analyze before presenting the case to Autotech Limited enabling them to take a decision.

After 1 year: After a period of about 1 year, Autotech Ltd. has decided to establish a new

manufacturing facility. The management of Autotech Ltd. again looks at the advice of the consultant.

As a consultant, what approach would you take to enable Autotech Ltd. to arrive at a decision in

planning their facility layout effectively?


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May 09

PGDM

303

New Horizon Leadership Institute


Bangalore-560 087Approved by AICTE, ministry of HRD, Govt of India

An ISO 9001:2000 certified instituteIII Trimester Examination May 2009Sub: Global Business Management


SectionA(AnsweralltheQuestions) 20x1=20

1. Inflation can be classified as Cost Push Inflation and Demand Pull inflation. [True / False]2. A country devalues its currency to make exports less attractive. [True / False]3. David Ricardos Theory of comparative advantage was criticized as ignoring two important factors of

production. i.e. land and capital. [True / False]

4. Venon in his theory did not try to explain the relationship between the stages in the product life cyclein international markets and trade. [True / False]

5. The WTO is an international body that oversees the rules and regulations of international trade.[True / False]

6. After Chinas entry into WTO, it is not becoming favorite destination for cars exported from aroundthe world. [True / False]

7. The US based leading fast food giant, Mc Donalds expanded its business across countries by takingthe franchising route. [True / False]

8. V4U is a fast growing banking company in India that wants to expand its business to internationalmarkets, especially in the Asia Pacific region. [True / False]

9. My care is a fast growing Korean firm. [True / False]10.As a member of the Organisation for Economic Cooperation and Development (OECD) India never

follows the Arms length Principle. [True / False]11.Which of the following affected the growth of the Chinese economy in 2003?

a) SARS b) Pneumonia c) AIDS d) Plague

12.Which of the following was the 10th largest economy in the world in the year 2004?a)Germany b) Brazil c) Finland d) Russia

13.US firms are considered leaders in which of the following fields?a)Textiles b) Medical equipment c) Agriculture d) Mining

14. Which of the following affects the profitability of the business due to changes in prices of rawmaterials and finished goods?

a)Soft peg b) Technical risks c) Operational risks d) Adjustable peg15. In which of the following can the option be exercised at any time during the life of the contract?

a)European option b) American option c) Indian option d) Both a and b16.When the firm expects the domestic currency to appreciate in relation to the foreign currency, it may

prolong the time of payment. This process is known as ------------.

a)Premium b) Hedging c) Lagging d) Speculation17.Who propounded the theory of competitive advantage?

a)David Ricardo b) Bruce Kogut c) Michael Gannon d) Adam Smith18. Who among the following proposed the International Product Life cycle theory ?

a)Prebisch b) J.S.Mill c) Raymond Vernon d) Eli Heckscher19.When was the IMF established ?

a)1945 b) 1944 c) 1940 d) 1934


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May 09

PGDM

303

20.APEC stands for:a)Asia Pacific Economic Cooperation b) Asia Pacific Earnings Cooperationc)Asia Pacific Economic Corporation d) Asia Pacific Environment Cooperation


21.What are the characteristics and role of MNCs?22.What are the motives of Direct Foreign Investment?23.Write a brief note on ASEAN.24.What is the salient feature available in our industrial policy to protect the local industries against the

FDI?

25.What is the mission of WTO?26.What is ECGC and explain briefly its role in promotion of exports.

Section C(Answeranyfour) 4x10=40

27.Many economists and trade analysts are of the view that there is a startling gap between allegedlyglobalization induced changes in international competition for FDI and recent empirical evidence

with regard to developing countries becoming a favorite destination for FDI inflows and the reality,

surprisingly, they feel that little has changed since the late 1980s. Comment.

28.What are the forms of international business?29.What do you mean by globalization of business?30.What are the draw backs of MNCs?31.What are the factors considered while determining the exchange rate?32.What are the documents does an exporter gives to his banker for obtaining Post shipment credit.

Explain them.

SectionD

(Compulsory)

1x20=20

33.US based Anheuscer Busch was the first US firm in the US brewerage industry to actively pursueinternational markets. The firm opted for licensing as an entry strategy to enter foreign markets. In

Canada, the firm gave a license to Labatt Brewing company and it was found to be very successful.

Discuss briefly the concept of licensing and explain under which circumstances the Anheuscer

Busch might have opted for licensing to enter Canadian Market.


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May 09 PGDM 304


Ring Road, Panathur Post, Near MarathahalliBangalore-560 087

Approved by AICTE, ministry of HRD, Govt of India

An ISO 9001:2000 certified instituteIII Trimester Examination May 2009

Sub: Integrated Strategic Management

Sub Code: PGDM - 304

Duration3hours TotalMarks:100SectionA(Answerallquestions) 20x1=20

1. Policy assists decision making. (True/False)2.

Strategy is a short term plan. (True/False)3. Purpose of business existence is made known by Mission statement. (True/False)

4. Environment throws open opportunities and threats. (True/False)5. Environmental factors are controllable factors. (True/False)6. Business and environment has to be matched. (True/False)7. Cost leadership is not a strategy. (True/False)8. SBU stands for strategic Business Understanding. (True/False)9. KSF stands for Key Success Factors. (True/False)10.Mission is what a business wants to become. (True/False)11.Cost leadership is mainly achieved

a) By charging low price resulting in more sales b) By matching business with environmentc) By changing organization structure d) By competing

12.Focus strategy isa) Focusing upon a particular business b) Focusing upon a specific segment of consumerc) Focusing upon specific competitors d) None of the above.

13.During the times of recession, business should normally adopta) Growth strategy b) Cost leadership c) Stability strategy d) Retrenchment strategy

14.ERP stands fora) Enterprise Resource Planting b) Enterprise Resource Poolingc) Enterprise Resource Planning d) Enterprise Resource Program.

15.Every business must assume social responsibility, becausea) Society is a part of business b) Business is a part of societyc) Business is not a part of society d) Business and society are one and the same

16.Social audit indicatesa) social performance of the business b) performance of the societyc) business performance d) performance of both society and business

17.Tall organization structure indicatesa) many levels in the organization structure b) few levels in the organization structured) two levels in the organization structure d) Nine levels in the organization structure

18.Which of the following is not among the four types of strategic control systems?a) Implementation control b) Premise controlc) Strategic surveillance d) Special purpose control


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May 09 PGDM 304

19.Matrix structure isa) a type of plan b) a type of control c) a type of organization d) a type of leadership

20.Which of the following is not a growth strategy?a) Horizontal integration b) Horizontal diversificationc) Strategic Alliance d) Divestment


21.What is SWOT analysis? What are its benefits?22.The major task of implementing strategy is to create a fit between the companys goals and other

activities. Discuss.23.What is the difference between mission and vision of an organization?24.Discuss Porters Five Force Model.25.Should the business be socially responsible? If yes, Why?26.Explain Ansoffs direction matrix.

SectionC(Answeranyfour) 4x10=40

27.Discuss in detail the strategic management process.28.Value chain analysis is to understand the parts of a business operations that create value and

those that do not. Justify the statement explaining the concept of value chain analysis.

29.Define environment. Discuss the various environmental factors.30.Define and discuss the strategic evaluation and control process.31.Discuss the various types of organization structure. How organizational structure is an important

factor in successful strategic implementation?

32.What can be the different types of corporate level strategies that a business can adopt in differentsituations? Discuss the strategies briefly.


33.Tata Nano has beaten everybody on price front. For what a new Nano costs, one can also get a2002 model Hyundai Santro at Rs 1.6 Lacs, 2003 model Opel Corsa at Rs 1.5 Lacs, 2002 model

Maruti Wagon R at Rs 1.3 Lacs, 2002 Model Maruti Zen at Rs 1.3 lacs, 2004 model Tata Indica

at Rs 1.25 lacs and 2002 Maruti Alto at Rs 1.25 Lakh.

As a strategic consultant, what strategies do you recommend for both Nano and the used car (pre-

owned car) industry?


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May 09 PGDM 30



Bangalore-560 087Approved by AICTE, ministry of HRD, Govt of India

An ISO 9001:2000 certified institute

III Trimester Examination May 2009Sub: Business Research Methods

Sub Code: PGDM - 305Duration:3Hours TotalMarks:100SectionA(AnsweralltheQuestions) 20x1=20

1. Descriptive Research design are highly flexible . [True / False]2. Secondary Data may be collected as a last resort in business research process [True / False]3. Cluster analysis plays an important role in identifying market segments [True / False]4. Open ended questions are frequently used in qualitative studies [True / False]5. Data reduction techniques are frequently employed in factor analysis [True / False]6. Scaling Techniques are qualitative in nature [True / False]7. Mail questionnaires have a high response rate [True / False]8. Longitudinal and cross sectional research belongs to conclusive research [True / False]9. Accuracy is possible through the use of scientific instruments [True / False]10.Qualitative research is a kind of exploratory research [True / False]11.Interviewer will strictly ask the questions in accordance with the pre arranged order is

a) Structured and Non - disguised b) Non structured and Disguisedc) Structured and disguised d) Non structured and Non - disguised

12.Which method is not applicable for non structured and disguised questionnairea) Case method b)Word association c) Sentence completion d) Story telling

13.Which one of these is not the component of attitudea) Affirmative b) affective c) cognitive d) behavioral

14. Which step does not includes in data processinga) Editor b) Editing c) Tabulation d) Summarize

15.Which one of them does not belong to observation methoda) Structured or unstructured method b) Direct indirect observation methodb) Mailing questionnaire observation method d) Human mechanical observation method

16.Which method is applicable to study the growth of plants and cropsa) Observation method b) Experimental method c) Time series methodd) None of the above

17.Panel studies in marketing research:-a) are cheap and efficient way to study what household consume every monthb) are an indicator of trends in consumer purchase behaviorc) Could be biased by the researcher conducting the studyd) has all the characteristics stated in a,b,c above.

18.A research proposal is a documenta) that provides valuable information for management decision makingb) that seeks permission from the top management to conduct the studyc) that gives a briefing to the outside research agencyd) that meets all the above requirement


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May 09 PGDM 30New Horizon Leadership Institute

Ring Road, Panathur Post, Near MarathahalliBangalore-560 087

Approved by AICTE, ministry of HRD, Govt of IndiaAn ISO 9001:2000 certified institute

III Trimester Examination May 2009Sub: Managerial Communication

Sub Code: PGDM 306

Duration:3Hours TotalMarks:100SectionA(Answerallquestions) 20x1=20

1. One should react aggressively during the Group Discussion. (True/False)2.

When you are listening to somebody, you should stare continuously at the speaker. (True/False)3. Language of a formal letter should be simple and without any frills. (True/False)4. Courtesy and politeness is not a requirement for a Business Letter. (True/False)5. A formal report presents the information in an organized way that has been asked by an authorized

person. (True/False)

6. A committee report must be signed by all the members of the committee. (True/False)7. While giving a presentation we should try to maintain eye-contact with the audience. (True/False)8. A well prepared agenda should be there in a Group Discussion. (True/False)9. Socio-psychological barrier to communication can be overcome only by ones own efforts.

(True/False)

10.Listening is a natural skill and cannot be improved by training. (True/False)11.There is a lovely ________ of the town from the window.

a) look b) impression c) sight d) view12.The box was made of _______ wood.a) an b) the c) a d) none of these

13.He is a person _______ everyone admires.a) who b) which c) whom d) that

14.I prefer a humorous play _______ a serious one.a) to b) than c) from d) none of these

15.He died ________ Malaria.a) of b) from c) because d) due to

3) Do as directed:

16.She met an old man. He is a doctor. (Combine the Sentences)17. I have not done my assignment. (Change the Voice of the Sentence)18.

His father said to him, I will try to buy you a bike. (Report the Sentence)19.May god bless you. (Punctuate the Sentence)

20.Ram is a brave boy. (Find out the adjective in the Sentence)Section B(Answeranyfour) 4x5=20

21.Explain any two of the following formats of writing a business letter:a. Block Styleb. Complete Block Stylec. Indented style

22.What preparation does the interviewer do to take an interview? How should he conduct an interview?23.How Effective Listening is important to be successful in ones professional life


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May 09 PGDM 3024.Explain various types of Routine Reports.25.Write three things that one should do and two things that one should not do

while giving an oral presentation.

26.Explain the life-cycle of a Team.SectionC(Answeranyfour) 4x10=40

27.Write short notes on the following:a. Appraisal Interviewb. Exit Interviewc. Problem Interviewd. Stress Interview

28.Discuss in detail the barriers to Communication.29.Write detailed notes on i) Body Language ii) Paralanguage30.How a candidate can prepare for a job-interview? Discuss in detail.31.Discuss various parts of a letter.32. Imagine that you are the Secretary of the Workers Association. Write a notice to call a meeting to

discuss the arrangement for celebrating the Companys Foundation Day. Prepare and attach Agenda

for the meeting also.


33.Mr. and Mrs. Basu went to Woodlands Apparel to buy a pullover. Mr Basu did not read the price tagon the piece selected by him. At the counter, while making the payment he asked for the price, Rs. 950

was the answer.

Meanwhile, Mrs. Basu who was still shopping came back and joined her husband. She was glad that

he had selected a nice black pullover for himself. She pointed out that there was a 25% discount on

that item. The counter person nodded in agreement.

Mr. Basu was thrilled to hear that. It means the price of this pullover is just Rs. 712. Thats fantastic

said Mr. Basu. He decided to buy one more pullover in green colour. In no time, he returned with the

second pullover and asked them to be packed.

When he received the cash memo for payment, he was astonished to find that he had to pay Rs.1900

and not Rs. 1424. Mr. Basu could hardly reconcile himself to the fact that the counter person hadquoted the discounted price which was Rs. 950. The original price printed on the price tag was Rs.

1266.

1) Identify the three sources of Mr. Basus information.2) What Mr. Basu should have done to avoid the misunderstanding?3) Who is to be blamed for this communication gap and why?

PGDM%20III%20Trimester%20May%202009

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