FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BS-17 UNDER THE FEDERAL GOVERNMENT, 2005
TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100
NOTE: Attempt FIVE questions in all, including question No. 7 which is COMPULSORY. Select at least ONE QUESTION from each of the PARTS I, II AND III. All questions carry EQUAL marks.
PART – I (Management)
1. What is leader ship? Discuss any two theories of leadership.
2. Briefly explain planning. Discuss various steps involved in planning process in any business organization.
Part II (Principles of Management)
3. Explain briefly marketing. Describe various functions of marketing?
4. Explain global marketing discuss its significance for the modern business organization of 21st century.
PART – III (Financial Management)
5. Star corporation is considering a project with a cost of Rs. 40,000/= net investment and net operating cash inflows of Rs. 11,652/= each year for the next five years. The firm uses 10% discount rate for projects with similar risks.
(a) What is projects net present value? (7)
(b) What is its initial rate of return? (7)
(c) Should the project be accepted assuming that funds are available? (6)
6. Royal corporation current assets inventories and current liabilities for four year period are as follows:
Item 2000 2001 2002 2003
Current assets Rs. 20,000 Rs. 22,400 Rs. 25,600 Rs. 28,100
Inventories Rs. 8,200 Rs. 10,000 Rs. 12,500 Rs. 14,000
Current liabilities Rs. 10,000 Rs. 10,200 Rs. 10,700 Rs. 11,000
a. Calculate the firm’s current and quick ratios for each year. (10)
b. Discuss the firm’s liquidity position over the four year period of time. (10)
7. Write only “True” or “False” in the Answer Book. Do not reproduce the questions.
(1)Planning initiates other functions of management.
(2) Managements make things to happen.
(3) The ultimate criterion of control is the extent that activities are complete in ways that lead to more profits.
(4) Computer Technology helps the management but does not replace the management.
(5) Promotional mix is also known as communication mix.
(6) Marketing environment is made up of micro-environment and macro-environment.
(7) Promotional mix is the part of marketing mix.
(8) Marketing strategy consists of specific strategy for target markets, positioning, the marketing mix and marketing expenditure levels.
(9) A Financial manager has a full control over its firm’s stock price.
(10) Liquidity ratios measure a firm’s ability to meet short term obligations.
(11) The internal rate of return method is the most widely used capital budgeting techniques.
(12) Stock exchange facilitates investment in real assets by providing secondary market to the financial securities.
(B) Write only correct answer in the Answer Book. Do not reproduce the questions.
(13) The organizing function of management includes:
(a) How tasks to be grouped.
(b) Conflict resolution among sub-ordinates.
(c) Comparison of actual results with a budget.
(d) Definition of organization’s goals.
(14) The key to motivating today’s diversified work force lies in:
(b) Goal setting
(15) Control should be placed:
(a) Where they are cost-effective
(b) On all activities
(c) Where there are problem areas
(d) On the single most important
(16) The marketing logic by which the business unit hopes to achieve its marketing objective is called:
(a) Business strategy
(b) Marketing strategy
(c) Production & distribution strategy
(d) All of these
(17) Strategic planning is the process of developing a formal strategy for:
(a) Identifying clear objectives
(b) Long run survival & growth
(c) Continuity & Consistency
(d) All of these
(18) Who are the true owners of Corporation?
(a) Debt holder
(b) Common stock holders
(c) Managers of the firm
(d) Board of directors
(19) What does an efficient port folio provide?
(a) Highest return for a given amount of risk
(b) Least rick for a given level of return
(c) Highest possible return and least amount of risk
(d) Both ‘a’ and ‘b’
(20) The economic order quaintly (ECQ) increases when which of the following increases?
(b) Ordering costs
(c) Carrying costs
(d) Both ‘a’ and ‘b’