Business Administration CSS Paper 2007


NOTE: (i) Attempt FIVE questions in all including question No. 8 which is compulsory. All questions carry EQUAL marks.
(ii) Extra attempt of any question or any part of the attempted question will not be considered
(iii) Candidate must draw two straight lines (==================) at the end to separate each question attempted in Answer Books.

PART – I (Management)

1. Explain the concept of “Motivation”. Describe any two major theories of motivation. (5+15)

2. What is “controlling”? State main steps involved in control process. Discuss different types of control.

Part II (Principles of Management)

3. Define Marketing. Discuss various internal and external environmental factors affecting firm’s marketing strategies.

4. Explain Marketing Mix. Discuss the role of marketing mix in managerial decision-making.

PART – III (Financial Management)

5. ABC Company deals in computer chips and buys these chips from several manufacturers. Chips are ordered in lot sizes of 1000 and each order costs Rs. 40.00 to place. Monthly demand is expected to be 20,000 chips. ABC works out Rs. 0.10 as carrying cost for each chip.
(a) What is optimal order quantity with respect to so many lot sizes (that is, what multiple of 1000 units should be ordered)?
(b) What would be the optimal order quantity if the carrying costs were cut in half to Rs. 0.05 a chip per month?
(c) What would be the optimal order quantity if ordering costs were reduced to Rs. 10.00 per order?

6. (a) Suppose you were to receive Rs. 100,000 at the end of 10 years. If your opportunity is 10%. What is present value of this amount assuming the interest (opportunity rate) is compounded annually?
(b) If, instead of compounding annually, interest (opportunity rate) is compounded quarterly, what will be the present value?


7. (A) Write only “True” or “False” in the Answer Book. Do not reproduce the question.

(1) A decision is a choice made between two or more alternatives. (True/False)
(2) Frank Gilbreth is known as father of Scientific Management. (True/False)
(3) The responsibility for organizational planning rests with middle level management. (True/False)
(4) The Hawthrone Experiments found that people were more concerned with preserving the work group than with maximizing their pay. (True/False)
(5) Selling concept assumes that heavy selling and promotional efforts are needed to stimulate more demand for the product. (True/False)
(6) Any paid form of non-personal presentation and promotion of ideas, goods or services by identified sponsor is known as public relation. (True/False)
(7) Market Segmentation is concerned with dividing the market demographically and geographically. (True/False)
(8) Joint Venturing is a form of entering foreign markets by joining with foreign companies to produce or market a product or service. (True/False)
(9) Another name of cash flow is accounting profit. (True/False)
(10) The Financial Manager has full control over his firm’s stock price. (True/False)
(11) Systematic risk can be diversified away by adding more securities to a portfolio. (True/False)
(12) Discounting is the process of finding present value. (True/False)

(B) Write only correct answer in the Answer Book. Do not reproduce the question.

(13) Extreme division of labour leads to result in:
(a) Motivation
(b) Boredom
(c) Decreased work skill
(d) Non-specialization
(e) None of these

(14) Fayol defines 14 principles of management. Which of the following is not one of those principles?
(a) Scalar chain
(b) Espirit de corps
(c) Centralization
(d) Directedness of command
(e) None of these

(15) An example of precontrol established by management would be:
(a) Rules
(b) Policies
(c) Budgets
(d) All of these

(16) Firm’s credit policy usually includes establishing:
(a) Credit standards
(b) Credit terms
(c) Collection policy
(d) All of these

(17) Liquidity ratios are computed by using information from:
(a) Balance Sheet
(b) Income statement
(c) Cash flow Statement
(d) Both (a) and (b)

(18) Conservative working capital management strategies involve:
(a) Low risk, Low return
(b) Low risk, High return
(c) High risk, High return
(d) High risk, Low return

(19) Product life cycle has the following stages:
(a) Introduction and Maturity
(b) Growth and Maturity
(c) Introduction, Maturity and Decline
(d) Introduction, Growth, Maturity and Decline

(20) Which product is most likely to be purchased through routine decision-making?
(a) Car
(b) Desk
(c) Soft Drink
(d) Shirt
(e) None of these