THE CSS POINT

BUSINESS ADMINISTRATION
CSS Solved MCQS from 2000 to 2011
Solved By: Agha Zohaib Khan
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2012-13

Business Administration Paper 2000

(1)

Public Accountants generally perform these services:

(a)

Income tax services, Management Advisory services, and independent

auditing services
Internal auditing, Income tax services and management controlling.
Public accounting, private accounting and budgeting.
None of the above is correct.

(b)
(c)
(d)

(2)
Identify the organization created by Congress to regulate security markets including
flow of information from companies to public:
(a)
(b)
(c)
(d)

TVM
NPV
IRR
SEC

(3)

Select the term that describes a cash distribution to a Corporations Stockholders:

(a)
(b)
(c)
(d)
(e)

Paid out Capital

Cash Management
A dividend
None of these
All of the above are correct

(4)

Frederick Winslow Taylor work/book entitled the principles of Scientific Management

is published, in:

(a)
(b)
(c)
(d)

1875
1901
1911
None of these

(5)

One of the most successful Industrialists and the father of Modern Personnel
Management is:

(a)
(b)
(c)
(d)

F.W. Taylor
James Watt
C. Babbage
Robert Owen

(6)

Who has the major Contributions in the Theory of Bureaucracy:

(a)
(b)
(c)
(d)
(e)

Henry Gantt
Hanri Fayal
W.D. Scatt
Max Weber
None of these

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(7)

Which one, of the following MNCs (Multinational Co.) has the higher revenues during
mid. 1990s:

(a)
(b)
(c)
(d)
(e)

General Motor
IBM
AT &T
General Electric
None of the above

(8)

Give the, name of the author who has the major contributions in the field of
marketing:

(a)
(b)
(c)
(d)
(e)

H. Koontz
W.J. Stanton
P.B. Miller
Gitt Man
All of these

(9)

The profit margin is a ratio between the corporations net income and:

(a)
(b)
(c)
(d)
(e)

Total expense
Total assets
Cost
Total revenues
None of the above

(10)

MNCs are responsible for the majority of Foreign Direct Investment (FDIs) and have
a higher revenues than the national income of some of the countries they serve:

(a)
(b)
(c)
(d)

Fully agreed
Not agreed
It is not possible
None of these

(11)

Earned but uncollected revenues, that are recording the adjusted process, recorded
with a credit to the revenues and debit to the expense is called:

(a)
(b)
(c)
(d)

Adjusted Trail balance

Expenses
Accrued revenues
None of these

(12)
(a)
(b)
(c)
(d)
(e)

Which one of the following is not a part/variable of the marketing Mix (4Ps):
Product
Price
Place
Person
None of these

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(13)

The major steps in the accounting cycle are the following:

(a)
(b)
(c)
(d)
(e)

The procedure used in worksheet

Begin with Trail Balance
Completed only once in business life
None of the above
All of these

(14)

Which of the following items is not unique to the financial statements of

merchandising Companies?

(a)
(b)
(c)
(d)
(e)
(f)

Cost of good sold

Gross profit
Account receivable
Net sales
All of the above
None

(15)

The repairs made to keep a plant/asset in normal and good operating condition are
called:

(a)
(b)
(c)

Plant Management
Operation Management
Ordinary repairs

(16)

A company that owns more than 50% shares of another company and controls that
corporation is known as:

(a)
(b)
(c)

Subsidizing
Consolidated CO.
None of these

(17)

The process of individual growth in the full utilization of a persons managerial

capabilities is called management development:

(a)
(b)

True
False

(18)

Promotion is not a part of marketing:

(a)
(b)
(c)

Agreed
Not agreed
None of these

(19)

A way of analyzing leadership style where leaders are classified on a grid with TWO
dimensions is called:

(a)
(b)
(c)

Managerial grid
Two way theory
None

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(20)

Robert Owen is known as the Father of Modern Personnel Management:

(a)
(b)
(c)

Yes
No
May be Taylor
Business Administration Paper 2001

(1)

Most preferred stock pays a fixed dividend at regular intervals.

(a)
(b)

True
False

(2)

Any increase in an asset item is a source of funds.

(a)
(b)

True
False

(3)

Depreciation is a book-keeping entry that allocates the cost of assets against income
but does not involve any movement of capital.

(a)
(b)

True
False

(4)

The maturity of a security relates to the owners ability to convert it into cash on
short notice:

(a)
(b)

True
False

(5)

The credit period represents the period of time during which a cash discount can be
taken on short notice.

(a)
(b)

True
False

(6)

Which ratio is computed with the help of the following? Cost of goods sold/Inventory

(a)
(b)
(c)
(d)

Receivable turnover
Times interest earned
Inventory Turnover
None of these

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(7)

________ is the right that is delegated to an individual or a department to control

specific processes, practices, policies and other matters relating to activities
undertaken by person in other departments.

(a)
(b)
(c)
(d)

Line authority
Functional Authority
Line and Staff Authority
None of these

(8)

Decentralization is the tendency to disperse decision making in an organized

structure:

(a)
(b)

True
False

(9)

Programmes are plans which are general statements or understandings that guide or
channel thinking in decision making:

(a)
(b)

True
False

(10)

_______ is that part of managing that involves establishing an international s

tructure of roles for people to fill in an organization:

(a)
(b)
(c)
(d)

Leading
Controlling
Planning
None of these (Organizing)

(11)

Henri Fayol applied the principle of Division of Work to all kinds of work,
managerial as well as technical.

(a)
(b)

True
False

(12)

________ spell out specific required actions or non-actions, allowing no discretion:

(a)
(b)
(c)
(d)

Procedures
Budgets
Rules
None of these

(13)

Business buyers are as geographically dispersed as final consumers.

(a)
(b)

True
False

(14)

The distribution between a consumer good and an industrial good is based on the
purpose for which product is purchased:

(a)
(b)

True
False
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(15)

Intensive distribution occurs when the product is stocked in as many outlets as

possible.

(a)
(b)

True
False

(16)

Merchant wholesalers are independently owned business that do not own (take title
to) the goods they sell:

(a)
(b)

True
False

(17)

Which of the following elements in a compensation package provides the greatest

amount of incentive for salespersons?

(a)
(b)
(c)
(d)

Salary
Fringe Benefits
Commissions
Use of Company Vehicle

(18)

The process whereby the seller distinguishes between market segments, selects one
or more of these segments, and develops products and marketing-mixes tailored to
each segment is called _______ marketing.

(a)
(b)
(c)
(d)

Mass
Target
Product Variety
Service

(19)

Goods that the consumer, in the process of selection and purchase, characteristically
compares on such bases as suitability, quality, price and style are called _______
goods.

(a)
(b)
(c)
(d)

Shopping
Specialty
Unsought
Convenience

(20)

Product ______ is a period of rapid market acceptance and increasing profits.

(a)
(b)
(c)
(d)

Development
Introduction
Growth
Maturity

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Business Administration Paper 2002

Q1.

Which one of the following statement is correct?

(a)

(d)

Decisions in public organizations emphasize political priorities, while decisions in

business organizations are rational and apolitical.
Public decisions makers, in contracts to their business counter parts are
constrained by administrative procedure that limit managerial authority and
autonomy.
It is hard to get high performance out of government employees because, compared
to their business counterparts they are logy, more security oriented and less
motivated.
None of the above is true.

Q2.

Who has written the famous book Principles of Scientific Management?

(a)
(b)
(c)
(d)
(e)

Eltca Mayo
Henls Fayol
Fredric Taylor
Maw weber
None of These

Q3.

Which one of the following cannot be consider as an important dimension on which

nations culture differ?

(a)
(b)
(c)
(d)

Individualism Vs Collectivism
Power Distance
Uncertainty Avoidance
Economic development

Q4.

Market penetration pricing strategy can be pursued in price sensitive market?

(a)
(b)

True
False

Q5.

A Product can have a combination of physical product and service

(a)
(b)

True
False

Q6.

Vertical marketing System is integration of manufacturing and marketing activities

(a)
(b)

True
False

Q7.

Distribution of free product samples is part of publicity

(a)
(b)

True
False

(b)
(c)

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Q8.

Which one of the following is not the part of marketing Mix?

(a)
(b)
(c)
(d)
(e)

Advertising
Personel Selling
Publicity
Sales promotion
None of the above is the part of martikng mix

Q9.

Which one of the following is not the part of product attributes?

(a)
(b)
(c)
(d)
(e)

Quality
Positioning
Brand
Packaging
None of the above

Q10.

Under the monopolistic combination, market consist of few sellers who are highly
sensitive to each others pricing and marketing strategies

(a)
(b)

True
False

Q11:

Which of the
assumptions?

(a)
(b)
(c)
(d)

Decisions
Employees
Employees
Employees

following

statements

is

not

part

of

theory

'X'

are made in participative manner

inherently dislike work
must be coerced to achieve goals
tend to avoid responsibilities

Q12: Which of the following statement is not true?

(a)
(b)
(c)
(d)

Planning that proves inaccurate is a waste of management time

Planning can eliminate change
Planning reduces flexibility
None of these

Q13: Which of the following sources of power is dependent on authority?

(a)
(b)
(c)
(d)
(e)

Legitimate power
Coercive power
Expert power
Referent power
None of the above

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Q14: Deciding whether to record a sale when order for services is received or
when the services are performed is an example of a
(a)
(b)
(c)
(d)

Classification issue
Recognition issue
Valuation issue
None of these

Q15: Payment for a two year insurance policy (in advance) is debit to
(a) Unexpired insurance
(b) Cash
(c) Insurance expense
(d) Expired insurance
Q16: Which of the
accounting?
(a)
(b)
(c)
(d)

following

is

an

important

reason

for

Accounting information is useful in making

decisions
Accounting plays an important role in society
The study of accounting can lead to a challenging career
None of the above

studying

economic

Q17: If a company has liability of 19,000 and owner's equity of 57,000 its assets are
(a)
(b)
(c)
(d)

38,000
57,000
76,000
19,000

Q18: Transactions are initially recorded in the

(a)
(b)
(c)
(d)

Books of Final Entry

Books of original entry
T accounts
Accounting equation

Q19: The term Hybrid Security is used for

(a)
(b)
(c)
(d)

Common Stock
Defferred Stock
Preferred Stock
None of the above

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Business Administration Paper 2003

(1)

Business risk is influenced by the firms decision to use debt in its financial
structure. TRUE

(2)

The most important function of management is controlling. TRUE

(3)

A short term creditor would consider liquidity ratios to be more important than
efficiency ratios. TRUE

(4)

According to Maslow, when a need is satisfied, it tends to lose its ability to motivate.
TRUE

(5)

The term marketing mix refers to the degree of advertising Vs personal selling used
to market product. FALSE

(6)

The difference between an agent and a merchant wholesaler is that an agent always
takes title but a merchant wholesaler does not. FALSE

(7)

The management of working capital is required because of a lack of short term

synchronization between demand and supply. TRUE

(8)

A manager who believes that people inherently dislike work probably accepts
McGregors Theory X. TRUE

(9)

Inventory carrying costs can be minimized by carrying fewer units in inventory.

TRUE

(10)

A balance sheet is an accounting report used solely for the corporate form of
business. FALSE

(11)

For management, budgeting is perhaps the most powerful_____.

(a)
(b)
(c)
(d)

Forecasting tool
Control device
Hiring tool
Accounting measure

(12)

The income statement is a summary of:

(a)
(b)
(c)
(d)

Revenue and expenses

Assets, liabilities and capital
Increases and decreases in capital
None of these

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(13)

One benefit of using ratio analysis when interpreting financial statements is that:

(a)
(b)
(c)
(d)

Ratios facilitate comparisons between different companies.

All ratios have exact standard values with which performance can be compared.
Ratios take into account all the specific factors affecting particular companies and
industries.
None of these

(14)

Planting and policy making are primarily functions of:

(a)
(b)
(c)
(d)

Top management
Middle management
Operating management
None of these

(15)

An informal organization often exists within a business because:

(a)
(b)
(c)
(d)

Not all relationships can be specifically defined.

Small organizations do not necessarily emphasize strict adherence to line authority.
Human behavior naturally crosses established authority lines.
All of these

(16)

In marketing, selling and buying would be called the:

(a)
(b)
(c)
(d)

Primary functions
Exchange functions
Profit functions
Critical functions

(17)

Institutional advertising is:

(a)
(b)
(c)
(d)

Aimed only at people in institutions

Run only by institutions
Designed to promote a type of product rather than a particular brand.
Designed simply to show that the firm is a good place to do business.

(18)

The current ratio of a firm having Rs. 25,000 of current assets, Rs. 30,000 of fixed
assets, Rs. 5000 of current liabilities and Rs. 10,000 of fixed liabilities would be:

(a)
(b)
(c)
(d)

5:1
7:1
10:1
None of these

(19)

The organizational form that replaces individual authority at all levels with group
representation is:

(a)
(b)
(c)
(d)

Line
Line and staff
Functional
Committee
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(20)
(a)
(b)
(c)
(d)

Working Capital may be expressed as:

Current assets minus current liabilities
Current and fixed assets minus current and fixed liabilities
Current assets over current liabilities
Current and fixed assets over current and fixed liabilities
Business Administration Paper 2004

(1)

In a large corporation, the firms owners are usually its top managers. False

(2)

The basic information needed to construct a flow of funds statement is found on the
income statement. True

(3)

The operating break-even point is the point at which operating profits equal revenues
minus operating costs. False

(4)

A sinking fund is a poorly performing mutual fund whose net asset value is declining.
False

(5)

Penetration Pricing is used when a marketer introduces a new product at a relatively

high price. False

(6)

The most common channel for consumer products is manufacturer-retailerconsumer. True

(7)

In the classification of consumer products, convenience products are usually more

expensive than shopping products. False

(8)

During the maturity stage of the PLC, sales increase at faster rate than during any
other stage. False

(9)

A wide span of management results in few organizational levels, and a narrow span
results in many levels. True

(10)

The Line relationship involves making decisions and acting on them. True

(11)

Data is defined as formal system of gathering, integrating, comparing, analyzing,

and dispersing information internal and external to the enterprise in a timely,
effective and efficient manner. False

(12)

A manager who believes that people inherently dislike work probably accepts
McGregors Theory X. True

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(13)

If a manufacturer gives a 30 percent discount to retailers and a 10 percent discount

to wholesalers, which type of discount is being given?

(a)
(b)
(c)
(d)

Quantity
Cash
Functional (also called trade discount)
Seasonal

(14)

Publicity differs from advertising in as much as:

(a)
(b)
(c)
(d)

It is directed at large numbers of consumers.

Its message is of a non personal nature.
It is carried by the mass media.
It is a non paid Form of reaching the public.

(15)
(a)
(b)
(c)
(d)
(16)

In which stage of the PLC are promotion expenses per product item usually highest?
Introduction
Growth
Maturity
Decline
Which of the following is not a disadvantage of using a Committee?

(a)
(b)
(c)
(d)

High cost in time and money

Splitting responsibility
Group deliberation and judgment
Compromise decisions

(17)

Identify the Organization established by our Federal government to regulate security

markets:

(a)
(b)
(c)
(d)

SBP
SEC
NAB
NFC

(18)

If the credit terms are 2/10, net 30 and the amount of invoice is Rs. 4000, how
much is the discount if the invoice is paid in 20 days?
(for example, the term 2/10, net 30 allows a customer to deduct 2% of the net
amount owed if the customer pays within 10 days of the invoice date. If a customer
does not pay within the discount period of 10 days, the net purchase amount
(without the discount) is due 30 days after the invoice date.)

(a)
(b)
(c)
(d)

Zero
Rs. 30
Rs. 60
Rs. 120

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(19)

Which of the following is not part of the promotion-mix?

(a)
(b)
(c)
(d)

Public relations
Product planning
Personal selling
Advertising

(20)

Selling activities include:

(a)
(b)
(c)
(d)
(e)

Sales presentations
Demonstrations
Handling objections
Closing the sale
None of these
Business Administration Paper 2005

(1)
(2)

Planning initiates other functions of management. True

Managements make things to happen. False

(3)

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

(4)

Computer Technology helps the management but does not replace the management.
True

(5)

Promotional mix is also known as communication mix. True

(6)

Marketing environment is made up of micro-environment and macro-environment.

True

(7)

Promotional mix is the part of marketing mix. False

(8)

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

(9)

A Financial manager has a full control over its firms stock price. False

(10)

Liquidity ratios measure a firms ability to meet short term obligations. True

(11)

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

(12)

Stock exchange facilitates investment in real assets by providing secondary market

to the financial securities. False

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(13)

The organizing function of management includes:

(a)
(b)
(c)
(d)

How tasks to be grouped.

Conflict resolution among sub-ordinates.
Comparison of actual results with a budget.
Definition of organizations goals.

(14)

The key to motivating todays diversified work force lies in:

(a)
(b)
(c)
(d)

Creativity
Goal setting
Support
Flexibility

(15)

Control should be placed:

(a)
(b)
(c)
(d)

Where they are cost-effective

On all activities
Where there are problem areas
On the single most important

(16)

The marketing logic by which the business unit hopes to achieve its marketing
objective is called:

(a)
(b)
(c)
(d)

Business strategy
Marketing strategy
Production & distribution strategy
All of these

(17)

Strategic planning is the process of developing a formal strategy for:

(a)
(b)
(c)
(d)

Identifying clear objectives

Long run survival & growth
Continuity & Consistency
All of these

(18)

Who are the true owners of Corporation?

(a)
(b)
(c)
(d)

Debt holder
Common stock holders
Managers of the firm
Board of directors

(19)

What does an efficient port folio provide?

(a)
(b)
(c)
(d)

Highest return for a given amount of risk

Least risk for a given level of return
Highest possible return and least amount of risk
Both a and b

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(20)

The economic order quaintly (EOQ) increases when which of the following increases?

(a)
(b)
(c)
(d)

Sales
Ordering costs
Carrying costs
Both a and b
Business Administration Paper 2006

1)

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

2)

The continual segmenting or fragmenting of markets impedes the new product

development process.[False]

3)

Reverse-flow channels refer to situations where one channel level acquires a level
back in the channel, such as sears owning its own suppliers [True]

4)

Planning is concerned with defining an organizations goals and objectives and how
to integrate and coordinate activities. [True]

5)

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

6)

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

7)

In informal planning, the organizations objectives are rarely verbalized. [True]

8)

The trait approach to leadership has identified a specific set of personality

characteristics that determine leader success.[True]

9)

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

10)

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

11)

Short term creditors would be most interested in the firms of leverages

ratios.[False]

12)

Working capital management includes in part the administration of cash, marketable

securities, receivables and inventories. [True]

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(13)

Which of the following is NOT one of the four specific drivers that underpin the new
economy?

a.
b.
c.
d.
e.

Industry convergence
Disintermediation and reintermediation
Customer delivered value
Customization and customerization
Digitalization and connectivity

(14)

___ lays out the target markets and viable propositions that organization will offer
based on an analysis of the best market opportunities

a.
b.
c.
d.
e.

the strategic market plan

the portfolio analysis
the human resource plan
the tactical marketing plan
marketing research

15)

the attractiveness of a market offering is based:

a.
b.
c.
d.
e.

on the product, its placement, its price and its promotion

on the match between customer needs and wants and distribution and
pricing of the product
almost entirely on the product being offered
on product features and quality, services mix and quality, and price appropriateness
entirely on the match between perceived product and actually product

16)

high levels of efforts are unlikely to lead to favorable job performance unless:

a.
b.
c.
d.

technology is also considered

quality of the effort is also considered
team work is also considered
management efforts are also considered

17)

In order to bring about effective organizational change, changes in technology need

to be accompanied by making changes in _____:

a.
b.
c.
d.

Strategies
Structure
People
Both (b) and (c)

18)
a.
b.
c.
d.

A capital investment is one that:

has the prospect of short term benefits
has the prospect of long term benefits
Is only undertaken by large corporations with large amounts of capital
applies only to investment is fixed assets

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19)

If the general level of interest rates rises, the prices of already issue bonds will:

a.
b.
c.
d.

Rise
Remain unchanged
Fall
Fluctuate

20)

If the EOQ for an item decreases, the average level of inventory will:

a.
b.
c.
d.

Decrease
Increase
Remain the same
There is no relationship between EOQ and inventory levels

Business Administration Paper 2007

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

Any paid form of non-personal presentation and promotion of ideas, goods or

services by identified sponsor is known as public relation. (False)

(7)

Market Segmentation is concerned with dividing the market demographically and

geographically. (False)

(8)

Joint Venturing is a form of entering foreign markets by joining with foreign

companies to produce or market a product or service. (False)

(9)

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

(10)

The Financial Manager has full control over his firms stock price. (False)

(11)

Systematic risk can be diversified away by adding more securities to a portfolio.

(False)

(12)

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

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(13)

Extreme division of labour leads to result in:

(a)
(b)
(c)
(d)
(e)

Motivation
Boredom
Decreased work skill
Non-specialization
None of these

(14)

Fayol defines 14 principles of management. Which of the following is not one of

those principles?

(a)
(b)
(c)
(d)
(e)

Scalar chain
Espirit de corps
Centralization
Directedness of command
None of these

(15)

An example of pre-control established by management would be:

(a)
(b)
(c)
(d)

Rules
Policies
Budgets
All of these

(16)

Firms credit policy usually includes establishing:

(a)
(b)
(c)
(d)

Credit standards
Credit terms
Collection policy
All of these

(17)

Liquidity ratios are computed by using information from:

(a)
(b)
(c)
(d)

Balance Sheet
Income statement
Cash flow Statement
Both (a) and (b)

(18)

Conservative working capital management strategies involve:

(a)
(b)
(c)
(d)

Low risk, Low return

Low risk, High return
High risk, High return
High risk, Low return

(19)

Product life cycle has the following stages:

(a)
(b)
(c)
(d)

Introduction and Maturity

Growth and Maturity
Introduction, Maturity and Decline
Introduction, Growth, Maturity and Decline
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(20)

Which product is most likely to be purchased through routine decision-making?

(a)
(b)
(c)
(d)
(e)

Car
Desk
Soft Drink
Shirt
None of these
Business Administration Paper 2008

(1)

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

(2)

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

(3)

Audit is a type of controlling system. (True)

(4)

Removal of undesirable elements serves as Negative Reinforcement tool to motivate

the people. (True)

(5)

Marketing of services heavily rely on advertising. (True)

(6)

Advertising is paid, personal communication through media (False)

(7)

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

(8)

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

(9)

Profit as against Share Price Maximization is always a desirable goal of organization.

(False)

(10)

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

(11)

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

(12)

The present value of an annuity is inversely related to future value of annuity.

(True)

(13)

The three levels of a product are:

(a)
(b)
(c)
(d)

Core, Packaging and Promotion

Actual, Core and Pricing
Augmentation, Core and Actual
None of these

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(14)
(a)
(b)
(c)
(d)
(15)
(a)
(b)
(c)
(d)
(16)
(a)
(b)
(c)
(d)
(17)

MBO means:
Management based on Organization
Management based on Objectives
Management by Objectives
None of these
The two broad price policies are:
Demand and sales based pricing
Penetration and low pricing
Skimming and Demand based pricing
None of these
Quick Ratio is calculated by dividing:
Current Assets by Current Liabilities
Current Assets by Inventories
Current Liabilities by Current Assets
None of these
Decreasing inventories is a source of:

(a)
(b)
(c)
(d)

Assets
Funds
Credit
None of these

(18)

Entrepreneur is:

(a)
(b)
(c)
(d)

Manager looking for profit

Manager looking for employees satisfaction
Manager looking for every opportunity
None of these

(19)

The depth of a 'Product Mix' indicates:

(a)
(b)
(c)
(d)

All products offered by a company with its versions

All products offered by a company with its brands
All products and service brands
None of these

(20)

A person directly involved in operation and accomplishment of main objectives of

the firm is called:

(a)
(b)
(c)
(d)

First-Line manager
Line-Manager
Staff-Manager
None of these

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Business Administration Paper 2009

(1)

The key inputs into Discounted Cash Flow analysis are projected future cash flows.
(True)

(2)

Market demand for a product is the total volume that would be sold by a defined
customer group. (False)

(3)

Operational plans apply to the entire organization and establish the organizations
overall goals. (False)

(4)

Preferred stock has a fixed divided paid every period forever so preferred stock is
essentially a perpetuity.(True)

(5)

The cost of debt is the return that the firms debtors demand on new
borrowing.(True)

(6)

With the Internal Rate of Return, we try to find a single rate of return that
summarizes the merits of a project. (True)

(7)

IBM is example of a manufacturer brand. (True)

(8)

Modifying job responsibilities is an example of structural change. (False)

(9)

---------- is a statement reporting the effects of a firms operating, investing and

financing activities on cash flows over an accounting period.

a.
b.
c.
d.
e.

Income statement
Annual report
Cash flow statement
Balance sheet
None of these

(10)

---------- studied five chief executives at work and identified ten managerial roles.

a.
b.
c.
d.
e.

Max weber
Henry fayol
Henry mintzberg
Fredrick taylor
Michael porter

(11)

A product life cycle -----------------.

a.
b.
c.
d.
e.

Shows how a product sales or profits may rise or fall over its life
Tells you how long a product will sell for and make a profit
Is divided into three stages
Show how profitable a product will
None of these

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(12)

All of the following are fixed assets except

a.
b.
c.
d.

Building
Stocks
Production plant
Vehicles

(13)

What is the influencing environmental factor when interest rates increase and firms
find it difficult to borrow funds

a.
b.
c.
d.
e.

Political factor
Social factor
Economic factor
Technological factor
Competitive factor

(14)

Which of the following is not a market entry strategy

a.
b.
c.
d.
e.

Licensing
Indirect exporting
Joint venture
International marketing
None of these

(15)

------------ is information about physical working conditions, work schedule and the
organizational and social context of the job.

a.
b.
c.
d.
e.

Job specification
Job context
Work activities
HR policy manual
None of these

(16)

The liquidity of a firm is a measure of ---------------

a.
b.
c.
d.
e.

Its ability to pay bills

Its ability to respond to changes in demand
How flexible it is in its production plannning
How quickly and easily a firm could relocate to another site
None of these

(17)

Market share means ---------------

a.
b.
c.
d.
e.

How well a firm is doing

How much power a firm has in the market
How many firms are there in the market
How big a market is
None of these

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(18)

-------------- refers to a management philosophy that requires employers to

continuously set and relentlessly meet ever high quality, cost , delivery and
availability goals.

a.
b.
c.
d.
e.

Performance management
Performance appraisal
Continuous improvement
Management by objective
None of these

(19)

Beta ------------.

a.
b.
c.
d.
e.

Is a measure of firm specific risk

Is a measure of market risk
Is a measure of total risk
All of these
None of these

(20)

What is the price of a stock that is expected to pay a 1.00 divided next year if the
cost of capital is 14% and the growth rate is zero

a.
b.
c.
d.
e.

7.14
6.75
11.9
6.13
None of these

Business Administration Paper 2010

(1)

You wish to borrow $ 8000 to be repaid in 24 monthly installments at an annual

interest rate of 8%. What is your monthly payment?

a)
b)
c)
d)
e)

$ 262.82
$ 361.82
$ 150.5
$ 325.00
none

(2)

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

a)
b)
c)
d)
e)

$ 15,883.20
$ 16,926.82
$ 17, 866.85
$ 18,233.45
None

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(3)

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

a)
b)
c)
d)
e)

$425.00
$350.67
$375.09
$406.88
none

(4)

What is the future value of $500 investment, with a stated rate of 6% compounded
monthly for 7 years.

a)
b)
c)
d)
e)

700
730
760
790
none

(5)

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

a)
b)
c)
d)
e)

6.68%
6.24%
6.05%
6.28%
none

(6)

What is not a disadvantage of traditional file processing system?

a)
b)
c)
d)
e)

Program-data dependence
Reduce data redundancy
Limited data sharing
Lengthy development time
none

(7)

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

a)
b)
c)
d)
e)

numerical
mathematical
narrative
graphical
none

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(8)

Which is not a component of relational database?

a)
b)
c)
d)
e)

Entity
Table
Attribute
Hierarchy
none

(9)

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

a)
b)
c)
d)
e)

Personal
Department
Enterprise
Relational
none

(10)

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

a)
b)
c)
d)
e)

department
enterprise
work group
extra-net
none

(11)

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

a)
b)
c)
d)
e)

Entrepreneurial marketing
Formulated marketing
Intrepreneurial marketing
Effective marketing
none

(12)

The concept of a _______ is used to describe a cluster of complementary products

that are closely related in the minds of the consumers but are spread across a
diverse set of industries.

a)
b)
c)
d)
e)

Metamarket
Metamediary
Market place
Marketspace
none

(13)

Marketers can increase the value of customers offering by:

a)
b)
c)
d)

raising benefits and reducing cost

raising benefits by more than raising the cost
lowering benefits by less than the reduction in cost
All of the above can increase the customers value
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(14)

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

a)
b)
c)
d)
e)

Brand
Industry
Form
Generic
None

(15)

The number of channel levels from raw material to final product which a company
will participate defines the firm's _________ scope.

a)
b)
c)
d)
(16)

Industry
Geographical
Vertical
Competence
Which of the following best describes the organizational members who integrate and
coordinate the work of others?

a)
b)
c)
d)

Managers
Operatives
Subordinates
Customers

(17)

_________ represent the lowest level of management

a)
b)
c)
d)
e)

Team leaders
First line managers
Operatives
Laborers
none

(18)

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

a)
b)
c)
d)
e)

Negotiator
Leader
Coordinator
Entrepreneur
none

(19)

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

a)
b)
c)
d)
e)

Technical
Human
Computer
Empirical
none

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(20)

The phrase most associated with scientific management is ________?

a)
b)
c)
d)
e)

Management Relations
One of the best
Supply and demand
Quality control
none

Business Administration Paper 2011

(1)

Fredrick Winslow Taylors Principles of Scientific Management suggested the use of

scientific methods to define:

(a)
(b)
(c)
(d)

The easiest way of doing a job

The most complex way of doing a job
The best way of doing a job
None of these

(2)

The quantitative approach using quantitative techniques in Management is called:

(a)
(b)
(c)
(d)

Scientific Method
Operations Research
Quantitative Approach
None of these

(3)

The perspective that Managers are directly responsible for an organizations success
is known as:

(a)
(b)
(c)
(d)

Omnipotent view of management

Management orientation
Autocratic management
None of these

(4)

Effective Management decisions are:

(a)
(b)
(c)
(d)

Emotional
Based on lots of data
Rational
None of these

(5)

Breakeven Analysis is a useful technique for:

(a)
(b)
(c)
(d)

Reducing operating costs

Maximizing sales
Resource allocation
None of these

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(6)

Recruitment helps:

(a)
(b)
(c)
(d)

Improve productivity of HR
Reduce number of employees
Improve labour relations
None of these

(7)

Grapevine is:

(a)
(b)
(c)
(d)

An office decoration plant

An information network
An official drink
None of these (Informal Business Communication)

(8)

Most important asset in an organization is:

(a)
(b)
(c)
(d)

Money
Plant and Machinery
Employees
None of these

(9)

Employees resist organizational change because it:

(a)
(b)
(c)
(d)

Reduces their compensation

Creates uncertainty
Puts more work on them
None of these

(10)

Strictly observing Corporate Ethics is:

(a)
(b)
(c)
(d)

Not important in commercial organizations

Against the concept of profit maximization
An essential requirement of professional business management
None of these

(11)

According to Herzbergs Motivation - Hygiene Theory, employees salary is:

(a)
(b)
(c)
(d)

Hygiene Factor
Motivating Factor
Employees Retention Factor
None of these

(12)

Who has the most power in Value Chain?

(a)
(b)
(c)
(d)

Suppliers
Distributors
Customers
None of these

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(13)

Marketing is:

(a)
(b)
(c)
(d)

Sales of goods and services

The range of services starting and ending with the customer
Sales planning and promotion
None of these

(14)

Marketing Strategy is:

(a)
(b)
(c)
(d)

Activities focused to defeat competitors

Activities aimed at creating value and profitable relationship with customers
Activities for maximizing sales
None of these

(15)

Cost strategy means charging:

(a)
(b)
(c)
(d)

Highest price for products

Lowest price for products
Varying prices for products
None of these

(16)

Branding is:

(a)
(b)
(c)
(d)

Not possible for services

Not very useful commercially
Useful for building product loyalty
None of these

(17)

Creation of value in a business means:

(a)
(b)
(c)
(d)

Earning maximum profits

Promoting rapid growth in sales
Optimizing shareholders return in a company
None of these

(18)

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

(a)
(b)
(c)
(d)

Net profit and Sales

Gross profit and Net earnings
Market price of its share and Earnings per share
None of these

(19)

Free Cash Flows are:

(a)
(b)
(c)
(d)

Net after tax profit

Expected Revenues minus expected costs and capital expenditures
Cash in hand and in bank
None of these

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(20)

Term interest earned is:

(a)
(b)
(c)
(d)

EBIT Interest on debt

Net profit Debt
Sales Interest Payable
None of these

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