2nd Year M.

Com

Master of Commerce (M.Com.)

2nd Year ASSIGNMENTS 2010-11

School of Management Studies Indira Gandhi National Open University Maidan Garhi, New Delhi-110 068

Master of Commerce M.Com., 2nd Year

ASSIGNMENT 2010-11

Dear Students, As explained in the Programme Guide, you have to do one Tutor Marked Assignment in each Course. We are sending the assignments of all the six courses together in this booklet. Assignment is given 30% weightage in the final assessment. To be eligible to appear in the Term-end examination, it is compulsory for you to submit the assignment as per the schedule. Before attempting the assignments, you should carefully read the instructions given in the Programme Guide. This assignment is valid for two admission cycles (July 2010 and January, 2011). The Validity is given below. 1. 2. Those who are enrolled in July 2010, it it vaild upto June 2011. Those who are enrolled in January 2011, it it vaild upto December 2011.

You have to submit the assignments of all the courses to The Coordinator of your Study Centre. For appearing in June Term-end Examination, you must submit assignments to the Coordinator of your study centre latest by 30th April. Similarly for appearing in December Term-end Examination, you must submit assignments to the Coordinator of your study centre latest by 31st October.

Note : In case you receive the study material and assignment late, you can submit the assignment responses within one month after receiving the study material.

TUTOR MARKED ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MCO-01 Organization Theory and Behaviour MCO-01/TMA/2010-11 All Blocks Maximum Marks: 100 Attempt all questions. All questions carry equal marks. 1. What is the concept of organization and also describe the basic principles of Management? (20)

2.

Discuss Maslows need hierarchy theory of motivation? How does this theory differ from Herzbergs theory of motivation?

(20)

3.

(a) Discuss the primary characteristics of an organizational culture. (b) Discuss the factors which influence the perception of an individual. (10+10)

4.

Differentiate between the following: (a) (b) (c) (d) Attitude and Behaviour Cognitive Learning and Social Learning Job Enrichment and Job Enlargement Autocratic and Democratic style of Leadership (5x4)

5.

Write short notes on the following: (a) (b) (c) (d) Administrative Theory of Organization Roles of Managers Process of Perception Division of Labour (5x4)

TUTOR MARKED ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MCO-03 Research Methodology and Statistical Analysis MCO-03/TMA/2010-11 All Blocks Maximum Marks: 100 Attempt all questions. All questions carry equal marks. 1. a) b) 2. a) b) c) 3. a) Distinguish between pilot study and pre-test. Also explain the need for pilot study and pretesting. If two regression coefficient are 0.8 and 0.7. What would be the value of coefficients of correlation? (10+10) Classification of data provides a basis for regulation of data. Comment. What is tabulation? Draw a format of a statistical table and indicate its various parts. If all the points in a scatter diagram lie exactly on the regression lines, the two variables, are perfectly correlated, comment. (6+7+7) An aircraft is equipped with three engines that operate independently. A probability of an engine is 0.01. What is the probability of a successful flight? If only one engine in needed for the successful operation of the aircraft. Describe a situation where you can apply t-distribution (10+10) (5x4)

b) 4.

Distinguish between the following: a) b) c) d) Correlation Vs. Regression. Additional theorem Vs Multiplication theorem Expected frequency Vs Observed frequency Technical Report Vs Popular Report.

5.

Briefly Comment on the following: a) b) c) d) A sample must represent a true picture of the population from which it is drawn. Statistical data not only require a careful analysis but also ensure an attractive and communicative display. Unconscious bias is even more insidious. Value indices actually measure the combined effects of price.

(5x4)

TUTOR MARKED ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MCO-04 Business Environment MCO-04/TMA/2010-11 All Blocks Maximum Marks: 100 Attempt all questions. All questions carry equal marks.

1.

a) b)

What is meant by business environment? Outline its important features Explain environmental scanning. (10+10)

2.

Describe how equal remuneration act and payment of gratuity act protect the interests of the workers.

(20)

3.

What do you mean by primary capital market? Explain different methods of capital issue. (5+15)

4.

Distinguish between a) b) MTP and RTP Public sector and Private Sector (10+10)

5.

Write short notes on the following: a) b) c) d) Technological environment WTO FDI Socio-cultural environment (4 x 5)

TUTOR MARKED ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MCO-05 Accounting for Managerial Decisions MCO-05/TMA/2010-11 All Blocks Maximum Marks: 100 Attempt all questions. All questions carry equal marks. 1. Differentiate between the following: (i) Product and Period Costs (ii) Controllable and Uncontrollable Costs (iii) Variable and Fixed Costs (iv) Direct and Indirect Costs (5 + 5 + 5 + 5) 2. Calculate the following ratios with the help of the information given below: (i) Operating Ratio (ii) Gross Profit Ratio (iii) Working Capital Turnover Ratio (iv) Proprietary Ratio Information : Equity Share capital Rs. 1,00,000; 8% Preference Share capital Rs. 80,000 ; 9% Debenture Rs. 60,000 ; General Reserve Rs. 10,000 Sales Rs. 2,00,000 ; Opening Stock Rs. 12,000 ; Purchases Rs. 1,20,000 ; Wages Rs 8,000 ; Closing Stock Rs. 18,000 ; Selling and Distribution Expenses Rs. 2000 ; Other Current Assets Rs. 2,12,000 and Current Liabilities Rs. 30,000. (5 + 5 + 5 + 5) 3 (a) Define budgeting. Explain different types of budgets that a big industrial concern would normally prepare. (b) Performance budgeting require preparation of periodic performance reports. Explain. (10+ 10) 4. The following information relates to the quantity of material required for the manufacture of a product: STANDARD Quantity Price (Rs.) (Kgs.) A B Total Calculate ; (a) (b) (c) (d) 5. Material Price Variance Material Cost Variance Material Usage Variance Material Mix Variance (a) (5 + 5 +5 + 5) 60 90 150 10 20 Amount (Rs.) 600 1800 2400 Quantity (Kgs.) 80 60 140 ACTUAL Price (Rs.) Amount (Rs.) 12 25 960 1500 2460

How does Activity Based Costing differ from Traditional Costing approach? Explain.

(b) What is meant by contribution? How does it helps the management in taking managerial decisions? (10 + 10) 6

TUTOR MARKED ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MCO-06 Marketing Management MCO-06/TMA/2010-11 All Blocks Maximum Marks: 100 Attempt all questions. All questions carry equal marks. 1. 2. What is the relationship between market management segmentation, targeting and positioning? Discuss various market targeting strategies adopted by companies. (20) A company decided to adopt pricing method to charge customers according to the distance and the cost of distribution involve. Identify various geographical pricing methods suitable in this regard and explain each of them. (20) Distinguish between the following: (a) (b) 4. Marketing Mix and Promotion Mix Intensive Distribution and Selective Distribution (2X10)

3.

Write short notes on the following: (a) (b) Reasons for the failure of new products. Services Marketing Mix (2X10)

5.

Comment very briefly on the following statements: (a) (b) (c) (d) (e) Market skimming pricing strategy is suitable to capture the maximum market share. Market research and marketing research mean one and the same. Functional middlemen always take ownership rights of the products they handle. Relationship marketing ignores consumer satisfaction. Sales promotion mainly deals with the promotion of sales in the short-term. (5 X 4)

TUTOR MARKED ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MCO-07 Financial Management MCO-07/TMA/2010-11 All Blocks Maximum Marks: 100 Attempt all questions. All questions carry equal marks. 1. a) b) 2. a) b) 3. a) b) 4. Explain the i) traditional approach and ii) Modigiliani Miller approach to the theory of capital structure. What is share buyback? Discuss the ethical issues involved in the buyback of shares. Discuss the features of equity shares as a source of long term finance. Discuss the role of underwriters when a firm goes for an IPO. Explain with example Economic Order Quantity (EOQ). How is it computed? What is factoring? Explain the major functions of a factor. (12) (8) (10) (10) (12) (8)

Calculate the degree of operating leverage of 4 firms A, B, C, and D from the information given below. The total number of units sold is 6,000. Firms A (Rs) Sale price per Unit Variable Cost per unit Fixed cost 40 12 100,000 B (Rs) 64 32 Nil C (Rs) 100 40 3,00,000 D (Rs) 140 100 50,000 (20)

What conclusion would you draw about the degree of leverage and the level of fixed costs.

5. A company is considering an investment proposal to install a new machinery costing Rs 80,000. It has a life expectancy of 5 years and has no salvage value. The firm is using straight line method of depreciation. The estimated cash flows before depreciation and tax (CFBT) are as given below. Year CFBT (Rs.) 1 20,000 2 22,000 3 24,000 4 26,000 5 40,000 (20)

Calculate : (a) Payback period (b) IRR (c) NPV at 10% rate. The tax rate is 35%.