NOORUL ISLAM COLLEGE OF ENGINEERING DEPARTMENT OF INFORMATION TECHNOLOGY PRINCIPLES OF MANAGEMENT (MG1351) SAMPLE 2 MARKS COMPILED BY: Mr. P.

MOHAMED SHAMEEM UNIT-I 1. Define Sole proprietorship. A sole proprietorship is a form of private sector enterprise that is owned, managed and controlled by an individual entrepreneur. 2. Define Partnership. Partnership is the relationship between two or more persons who have agreed to share the profits of a business carried on by all or any of them acting for all. 3. Define partnership deed. The document which contains the terms of a partnership as agreed among the partners is called partnership deed. The deed is required to be duly stamped as per the Indian stamp Act and duly signed by all the partners. 4. What is meant by Registration of a partnership? Registration of partnership means getting the partnership, Registered with the Registrar of the area in which the place of business of the firm is situated or proposed to be situated. 5. Define Company. A Company is an association of many persons who contribute money or money’s worth to a common stock and employs it in some trade or business, and who share the profit and loss arising therefore. 6. Define Statutory Company. A statutory company is one, which is created by special act of parliament or a state legislature. The nature and powers of such companies are laid down in the special act under which they are created. 7. Define Registered Company. A registered company is one, which is registered in accordance with the provisions of the companies act, 1956. 8. Define Government Company. According to the companies act, a government company is that in which not less than 51 percent of the paid-up share capital is held by the central government or any state government. Class: S6 IT

9. What is a principle? A principle can be defined as a fundamental statement of truth providing a guide to thought and action. 10. What is scientific management? Scientific management implies the application of science to the management of a business concern. It means the management based on careful observation, objective analysis and innovative outlook. 11. What is management? Management is the art of getting things done through others. 12. What are the types of the partner? Active partner Sleeping partner Nominal partner Partner in profit only Partners by estoppels and holding out 13. What is partnership at will? It is a partnership where no fixed period has been specified for the duration of partnership. 14. What is particular partnership? A firm formed only for a specified venture of temporary nature or only for certain period is called particular partnership. 15. What is limited partnership? It is a partnership where the liability of all the partners, with the exception of at least one partner is limited. 16. Define active partner. Active partner contribute and take active part in administration. 17. Define sleeping partner Sleeping partner only contributes. 18. Define secret partner A partner who wants that his name should be kept secret is called secret partners. 19. Define silent partner. Silent partner is those who do not have any voice in the management of the firm. But they share the profits and losses.

20. Define nominal partner. Those people who only lend their name to the firm are known as nominal partner. They neither contribute capital nor do take active part in the management. 21. Define partners in profit only. If a person is entitled to a certain share of profits without being liable for the losses, he is known as partner in profits only. 22. Define partners by estoppels and holding out. If a person conducts or behaves in such a way or represents to third parties through spoken or written words that he is a partner of the firm called a partner by estoppels. If such a person who is considered as a partner by another and does not deny this fact that he is a partner being fully aware of the use of his name in the partnership he is called partner by holding out. 23. Define share. The capital of a company is usually divided into certain indivisible units of definite sum. These units are called shares. 24. Define debenture. Debenture is a certificate issued by a company under its seal acknowledging a debt due by it to the holders of debentures. 25. Define liability. Liability of a business means what it owes to others. 26. A husband and wife, who were the only 2 members of a private limited company, are shot dead by dacoits. Does the company also die with them? No, The Company has perpetual succession. 27. Define Joint Stock Company. A joint stock company is an incorporated association which is an artificial person created by law, having a separate entity, with a perpetual succession and a common seal. 28. Define co-operative societies. A voluntary organization of persons with unrestricted membership and collectively owned funds, consisting of wage earners and small producers, united on a democratic basis for the establishment of enterprises under joint management for the purpose of improving their household or business economy. 29. Define holding company. A company is known as the holding company of another company if it has control over that company.

UNIT-II 1. Define Planning. Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired result. 2. Define single use plan. A single use plan is one, which is specific to a particular situation of a nonrepetitive nature. It may not have use for different situations. It becomes obsolete once its purpose is over. 3. Define standing plans. Standing plans are those, which are of a relatively long standing by nature. They are meant to serve as standing guidelines, criteria and constraints on managerial decisionmaking and action. 4. Define objectives. Objectives are the goals, aims or purpose that organizations wish to achieve over varying periods of time. 5. Define management by objectives. MBO is a result-centered, non-specialist, operational managerial process for the effective utilization of material, physical, and human resources of the organization by integrating the individual with the organization and organization with the environment. 6. Define policy. Policy is a means of encouraging discretion and initiative but within units. They are predetermined decision rules applicable for a range of managerial decisions and action. 7. Define procedures. Procedure is defined as a set of sequential steps determined advance and standardized for initiating, carrying through and completing a certain routine and repetitive activity. 8. Define rules. Rules are prescriptive directives to people in organizations and elsewhere to do or not to do things, to behave or not to behave in particular ways. They are in the nature of commandments, cautions, taboos and norms to discipline, to structure, standardize and restrain individual and group behavior and task performance. 9. Define strategy. A strategy is the determination of the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary to carry out these goals.

10. Define program. A program is a precise plan which lays down the operations to be carried out to accomplish a given work. It includes all activities necessary to achieve the given objectives and prescribes how the enterprise resource should be used. 11. Define project. A project is a sequence of unique, complex, and connected activities having one goal or purpose and that must be completed by a specific term, within budget, and according to specifications. 12. Define budget. A budget is a statement of expected results expressed in numbers. 13. Define variable budget. Budget that vary according to the organization level of output are called variable or flexible budgets. 14. Define program budgets. Program budgets are budgets in which the agency identifies goal, develops detailed programs to meet the goal, and estimates the cost of each program. 15. What is commitment principle? Logical planning encompasses a future period of necessary to fulfill, through a series of actions, the commitments involved in decisions made today. 16. What is short-range plan? Short range planning also known as operations or tactical planning, usually covers one year. 17. What is long-range plan? Long range planning also known as strategic planning, involves more than oneyear period extending to twenty years. 18. What are benefits of MBO? • Improvement of managing • Clarification of organization • Encouragement of personal commitment • Development of effective controls. 19. Give TOWS matrix. Internal /External O T S SO ST W WO WT

S-Strengths ; W-Weaknesses ; O-Opportunities ; T-Threats

20. Give PORTFOLIO matrix.

Business growth rate

High Low

Stars Cash Cows Strong Market share

? Dogs Weak

21. Give the three generic strategies by Porter. • Overall cost leadership strategy • Differentiation Strategy • Focused Strategy 22. Give examples of policies. • Purchasing policy • Quality control policy • Dividend policy 23. Differentiate objectives and policies. 1. 2. 3. Objectives Single use plan What to achieve Formulated at top level Standing plan Policies

Formulated at top level, middle level, lower level

24. Differentiate policies and procedures. 1. 2. 3. Policies Guide to decision Allow discretion General Statement Procedures Guide to action Do not allow discretion Specific terms

25. Differentiate policies and strategies. 1. 2. 3. Policies Standing plan Decision oriented Situation is known Strategies Single use plan Action oriented Situation is unknown

1. Define staffing. Filling and keeping the positions provided for by the organization structure filled with the right people is the staffing phase of the management function. It includes several sub-functions • Recruitment • Selection • Transfers and promotions • Training 2. Define recruitment. Recruitment is the process of searching for prospective employees and stimulation them to apply for jobs in the organization 3. Define selection. Selection is a deliberate effort of the organization to select a fixed number of personnel from a large number of applicants. 4. Define psychological test. Psychological tests are essentially an objective and standardized measure of behavior of an individual. 5. Define interview. Interview is a selection technique that enables the interviewer to view the total individual and to appraise him and his behavior. It consists of interaction between interviewer and the applicant. 6. Define programmed decisions. Programmed decisions are those that are made in accordance with some policy, rule or procedure so that they do not have to be handled each time they occur. These decisions are generally repetitive, routine and are obviously the easiest for managers to make. 7. Define individual decisions. Individual decisions are taken when the problem is of a routine nature, where the analysis of variables is simple and where definite procedures to deal with the problem already exist. 8. Define Simple decisions. When variables to be considered for taking a decision are few, the decision is termed as a simple decision. 9. Define directing. Direction may be defined as a function of management which is related with instructing, guiding and inspiring human factor in the organization to achieve the objectives of the organization.

UNIT-III

10. Define leadership. Leadership is the quality of behavior of individuals whereby they guide people or their activities in organizing efforts. 11. Define formal leader. A formal leader is a person who possesses organizational authority to direct and control the activities of his subordinates. He can issue orders and instructions to his subordinates by virtue of his formal authority in the organization. 12. Define informal leader. An informal leader is one who is selected by the workers and does not hulk any managerial post in the organization. 13. Define motivation. Motivation is the act of stimulating someone or oneself to get a desired course of action, to push the right button to get a desired reaction. 14. Define communication. Communication is the process of passing information and understanding from one-person to another. 15. Define incentive. Incentive is defined as the stimulation of effort and effectiveness by offering monetary inducement or enhanced facilities. 16. Define formal communication. Formal communication is one, which takes place in a formal organization structure. It represents the flow of information along the lines of authority formally established in the organization. Members of the organization are expected to communicate as per the channels laid down in the organization. 17. Define Informal communication. Informal communication is the communication between the members of the group on the basis of informal relations and understanding among people at the basis of informal relations and understanding among people at the same or different levels of the organization. It does nit follow the lines of authority. 18. Define upward communicating. It is the flow of communication from the subordinates to the superior position. Reports, suggestions, complaints and grievances are instances of this type of communication. 19. Define controlling. Controlling is the measurement for performance against the standards and the correction for deviations to ensure accomplishment at goals as per plan.

20. Define feedback. Feedback is the reaction of the receiver to the message of the communicator before and after, as well as during, the process of carrying out the instructions. 21. List the different types of budgets. • • • • • • • • • • Sales budget Production or output budget Materials budget Labor budget Factory overhead budget Personal budget Administrative overhead budget Selling and distribution expenses budget Cash budget Master budget.

22. Define Peter Principle of staffing. Manager tends to be promoted to the level of their incompetence. 23. Define decision-making. Decision-making is defined as selection of a course of action form among alternatives. 24. What is satisfying? Picking a course of action that is satisfactory or good enough under circumstances. 25. Give the principle of limiting factor. By recognizing and overcoming those factors that stand critically in the way of a goal, the best alternative course of action can be selected. UNIT-IV 1. Define financial management. Financial management is that area of business management devoted to a judicious use of capital and careful selection of sources of capital in order to enable a spending unit to move in the direction of reaching goals. 2. Define shares. The capital of a company is usually divided into certain indivisible units of a definite sum. These units are called shares. 3. Define preference shares. Preference shares are those shares which carry preferential rights in respect of dividend and repayment of capital in the event of the company being roundup.

4. Define cumulative preference shares. Preference shares which guarantee a fixed rate of dividend are known as cumulative preference shares. If the dividend at a fixed rate cannot be paid in any year on account of inadequate profits, the arrears of dividend will accumulate and will have to be paid out of the profits of future years. 5. Define equity shares. Shares, which do not enjoy any of the preference attached to the preference shares, are known as equity shares or ordinary shares. 6. Define debenture. Debenture is a certificate issued by a company under its seal acknowledging a debt due by it to the holders of debentures. 7. Define secured debentures. When debentures are secured by a charge on the assets of the company, they are known as secured or mortgaged debentures .The charge may be fixed or floating. 8. Define convertible debentures. These are debentures which give an option to the debentures holders to convert them into preference or equity shares at a stated rate of exchange. 9. Define public deposits. The deposits made by the public with the joint-stock companies are known as public deposits. 10. Define financial statements. Financial statements are organized summaries of detailed information about the financial position and performance of an enterprise. Traditionally, the term financial statements is used to denote only two basic statements which are under Balance sheet or position statement that shows the financial position of an enterprise at a particular point of time. Trading and profit and Loss Account Or Income statement that shows the results of business operation during an accounting period. 11. Define trading account. Trading account is one of the financial statements, which show the result of buying and selling of goods and/or services during an accounting period. Trading account is prepared to know the gross profit or loss during the accounting period. 12. Define Manufacturing account. Manufacturing account is prepared by an enterprise engaged in manufacturing activities .It is prepared to ascertain the cost of goods manufactured during an account period. This account is closed by transferring its balance to the debit of the debit of the Trading account.

13. Define profit and loss account. The profit and loss account is one of the financial statements. It shows the net results of the business operation during an accounting period. The profit and Loss account is prepared to ascertain the Net Profit earned or Net Loss incurred by the business entity as a result of business operations doing an accounting period. 14. Define balance sheet. A Balance sheet is a financial statement. It is a statement of assets and liabilities of an enterprise at a given date. 15. Define fixed assets. Fixed assets refer to those assets which are held for the purpose of providing or producing goods or services and those which are not held for resale in the normal course of business. 16. Define current assets. Current assets are those assets, which are held in the form of cash e.g. cash in hand and cash at bank. For their conversion into cash e.g. stock of finished foods, debtors, bill receivable, accrued income; for their consumption in the production of goods or rendering of services in the normal course of business e.g. stock of raw materials. 17. Define long-term liability. Long-term liability refers to that liability which does not fall due for payment in a relatively short period (i.e. normally not more than 12 months from the date of balance sheet) e.g. loan from a financial institution, debentures. 18. Define production. Production is defined as the step-by –step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user. 19. Define production management. Production management deals with decision-making related to production processes so that the resulting goods or services are produced according to specifications, in the amounts and by the schedule demanded and at minimum cost. 20. Define production planning. Production planning is a series of related and co-ordinate activities performed by not one but a number of different departmental groups, each activity being to systematize in an advance the manufacturing efforts in its area. 21. What is the basic purpose of scheduling? The basic purpose of scheduling is to execute a customer’s order well in time. It is to ensure that the right things are done at the right time.

22. Define purchasing. Purchasing is the activity responsible for getting the right material to the right time, in the right q quality at the right price. 23. Define tender. A tender or Quotation is a written offer to do a work or to provide a material at a given price within a prescribed period and under certain specific conditions. 24. Define inventory. Inventory is the stock of goods, commodities, supplies components and parts, finished products, or other economic resources that are stored for future production, sale or for meeting future demand. 25. What are the different types of inventories? Raw material inventory, supply inventory, purchased parts inventory, work in process inventory and finished products inventory 26. Define inventory control. Inventory control is the function of directing the movement of goods through the entire manufacturing cycle from the requisitioning of raw materials to the inventory of finished goods with minimum investment and efficient plant operation. 1. Define marketing. Marketing is the business process by which products are matched with the markets and through which transfers of ownership are affected. 2. Define marketing mix. Marketing mix is a combination of factors which a company uses as tools for pursuing its marketing objectives in the identical markets for achieving its targets. These factors have to be strategically mixed in the marketing planning for optimizing profit, market expansion and customer satisfaction. 3. Mention the four stages in the life cycle of a product. Introduction, growth, maturity, decline. 4. List the major media used for advertising. Television, radio, newspaper, magazines, films, transit advertising, direct mail and advertising specialties are the major media for advertising 5. Define personnel management. Personnel management is the process of bringing people and organizations together for accomplishing the goals of each. 6. Define performance appraisal. Performance appraisal is a systematic evaluation of personnel by superiors or others familiar with their performance. UNIT-V

7. Define conflict. Conflict may be is defined as a process in which an effort is purposefully made by one person or unit to block another that results in frustrating the attainment of others goals or the furthering of his or her interests 8. Define training. Training is the act of increasing the knowledge and skills of an employee for doing a particular job. 9. Define organizational development. Organizational development is a planned, managed and systematic process to change the culture, systems and behavior of an organization in order to improve the organization’s effectiveness in solving its problems and achieving its objectives. 10. Define TQM. TQM is an integrated management approach in satisfying customer needs in totality on a continuing basis through involvement of each and every employee in the organization making continuous improvement on one side and on appropriate cost effective technology along with proper solving methodology. 11. Define Quality circle. A Quality circle is a small group of volunteers doing similar work. They meet regularly under the leadership of their immediate supervisor, or some one chosen among the circle to identify problems, set priorities, discovers causes and proposes solutions. These may concern quality, productivity, safety, Jon structure, process flow, and control mechanism, aesthetics of the work area. 12. Give Price-promotion matrix. Promotion High Price High Low High skimming strategy High penetration strategy Low Low skimming strategy Low penetration strategy

13. Give few pricing methods. • • • • • Cost based pricing Value pricing Penetration pricing Geographical pricing Discriminating pricing

14. Define pricing. STAR CASH COW PROBLEM CHILD DOG

Pricing is a logical proposition keeping in view the competitive products in the markets. 16. Give pricing matrix. Price
Product quality & brand

High High Med Low Premium Over price Rip-off

Med High value Average Unjust

Low Super value Reasonable Sick

17. Give little performance appraisal method. • • • • • Confidential report Rating scales Ranking system Paired-comparison method Forced-choice method

SAMPLE BIG QUESTIONS UNIT – I 1. What are the characteristics of a company? • An artificial person created by law • Separate legal entity • Perpetual existence • Common seal • Limited liability • Free transferability of shares 2. Discuss the features of a partnership form of business. • Two or more persons • Agreement • Business • Sharing of profits • Mutual Agency • Unlimited liability • Joint ownership and control. • Non-transferability of share. • Duration of partnership 3. Give Henri Fayol’s principles of management. 1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to general interest 7. Remuneration of personnel 8. Centralization 9. Scalar chain 10. Order 11. Stability of tenure 12. Initiative 13. Equality 14. Esprit de corps 4. What are the functions of manager? • Planning ; Organizing • Staffing ; Directing • Co-coordinating • Reporting • Budgeting

5. Explain different types of partners. • Actual partner • Sleeping partner • Nominal partner • Partner in profits only • Sub-partner • Partner by estoppels and holding out • Incoming partner • Outgoing partner, etc UNIT – II 1. Explain the steps in planning? • • • • • • • • Perception of opportunities Establishing objectives Planning premises Identification of alternatives Evaluation of alternatives Choice of alternative plans Formulation of supporting plans Establishing sequence of activities

2. Define MBO and describes its essential elements. MBO is a result-centered, non-specialist, operational managerial process for the effective utilization of material, physical, and human resources of the organization by integrating the individual with the organization and organization with the environment. Diagram Elements Setting of Organizational purpose and objectives Key Result Areas Setting subordinates objectives Matching resources with objectives Appraisal Recycling 3. Explain the importance of planning. • • • • • • Primacy of planning To offset uncertainty and change To focus attention on objectives To help in co-ordination To help in control To increase organizational effectiveness

4. What is the importance of procedures ? • • • • • • • Procedures provide a basis for operators to know how to process the activity without leaving loose ends in the best interests of the organization. Procedures help in structuring, standardizing, streaming and smoothing the day-to-day activity in organizations and in creating a management by system. A standard set of operating procedure promote tidy working habit patterns in the various units of the organization. They are the means of implementing organizational decisions and policies. They help reduce or remove administrative bottlenecks in the work flow on a day to day basis. They also help expedite and accelerate clerical and paper work without duplication and waste motion. A coherent set of procedures governing administrative action enables personnel to actively involve themselves in work without feeling confused and harassed, etc..

5. Explain how strategy is formed. Definitions, rules to be followed UNIT – III 1. What do you mean by Recruitment? Explain the process of recruitment. Recruitment is the process of searching for prospective employees and stimulation them to apply for jobs in the organization ƒ Process ƒ Screening of applications ƒ Selection tests ƒ Interview ƒ Checking of references ƒ Physical examination ƒ Approval by appropriate authority ƒ Placement 2. What are the characteristics of good leader? • • • • • • • • • Intelligence Initiative and creative ability Power of judgment Vision and foresight Mental and emotional maturity Flexibility Technical competence Self-confidence Human relations attitude.

3. What is budget? Explain few non-budgetary control methods. A budget is a statement of expected results expressed in numbers. • • PERT, CPM, Statistical data Personal observation ; Break-even point analysis, etc.

4. What are the barriers of communication? How it can be overcome? Barriers Badly expressed messages ; Faulty translations ; Technical language Unclarified assumptions ; Loss of transmission and poor retention Inattention ; Premature evaluation ; Distrust of communicator Filtering ; Different backgrounds ; Faulty organization Fear ; Failure to communicate Building effective communication Clarity ; Objective ; Empathetic listening Feedback ; Proper language Consistency ; Credibility ; Adequacy 5. Explain different leadership styles. • Autocratic • Democratic or Participative • Free rein leaders UNIT – IV 1. What are the functions of financial management? • Managerial functions Financial planning, organizing, directing, etc.. • Operating functions Raising funds, allocating and investing funds, etc… • Incidental or Routine financial function 2. Explain long-term sources of funds. Shares, Debentures, retained earnings, long term debt from bank.. 3. Explain Discounting Cash Flow (DCF) technique capital budgeting. • Net Present Value (NPV) • Internal Rate of Return (IRR) • Profitability Index (PI) • Discounted Pay back period 4. What is tender? Explain different types of tenders. A tender or Quotation is a written offer to do a work or to provide a material at a given price within a prescribed period and under certain specific conditions. Types Single tender ; Limited tender ; Open tender.

5. Explain the types of inventory. • Raw material • Supplies • Purchased parts • Work-in-progress materials • Finished products UNIT – V 1. Discuss different types of sales promotion? Dealer’s Level Sales meetings, Advertising materials, Contests, Store demonstrations, Dealer gifts. Consumer’s Level In-Store demonstrations, samples, coupons, refunds, contests, etc.. Salesman’s Level Sales manual, contests, product demonstration, etc.. 2. What are the benefits of quality circle? • • • • Promoted high level of productivity and quality –mindedness Self and mutual development of employees Creating team spirit and unity of action Increased motivation, job satisfaction and pride in their work.

3. Give different methods of performance appraisal. • • • • Confidential report ; Rating scales ; Ranking system Paired-comparison method ; Forced-choice method Critical incident method ; Cost accounting method Forced distribution method

4. Explain few pricing methods. • • • • Cost based pricing ; Value pricing ; Pricing with demand curve Penetration pricing ; Geographical pricing ; Discriminating pricing Conspicuous pricing ; Psychological pricing ; Value-added pricing Complementary product pricing ; Promotional pricing

5. List few advertising techniques and explain. • • • • • Comprehensive advertisement ; Positive & Negative advertisement ; Social theme-based techniques ; Future project base techniques Entertaining and family oriented ; Gender sensitive Product-customer age cohesive ; High frequency insertion –drive Average frequency insertion cue ; Scientific message ; Abstract message

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