SULIT MGATO2S/AT61/A FINAL EXAMINATION SEMESTER I, ACADEMIC SESSION 2016/2017 | pate: b€c 2016 - JAN 2017 DURATION : 2 HOURS 30 MINUTES MGA1023 PRINCIPLES OF BUSINESS MANAGEMENT (PRINSIP PENGURUSAN PERNIAGAAN) INSTRUCTIONS TO CANDIDATES: 1, This paper contains ONE HUNDRED (100) muitipie choice questions. ‘Answer ALL questions in the in the OMR Form (USIM-BA-101) provided 3. Candidates are not alowed to bring any materials except stationeries and non-programmable calculator into the examination hall without prior permission 4, Candidates are not allowed to take question paper out of the examination hall 5. Please complete your particulars in Borang H and OMR Form. DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE INSTRUCTED TO DO SO This question paper has TWENTY (20) printed pages excluding this cover page | BES mets WY Ww EEN HAKCIPTA TERPELIHARA USIMSULIT MGA1025/A161/A Answer ALL questions, [100 Marks} 1, The philosophy of Islamic business differs from the philosophy of conventional business because the aim of a firm A 8B c. D. is profit maximisation is minimizing cost. is maximizing shareholders’ wealth. is twofold: profit maximization and the fulfilment of religious duties in meeting individual and public welfare. 2, The objective of Islamic economics is A B. cl D. to fulfill the interests of the individual first, Hence, it allows total freedom to the individual in the areas of economy and ownership. to fulfil the interest of sociely first. Hence, the govemment infervenes in every economic activity and forbids private ownership of the means of production, to take care of the interests of the individuals and society interests and tries to bring them into harmony. to provide an affirmative action program for minorities, 3. Economic rationality as defined by conventional economists (normally measured by money) might not have the same meaning for Islamic economists because A 8. c Dd. in Islamic economics, there are two time horizons. in Islamic economics, utility is calculated during lifetime only. in Islamic economics, reality is a subject of objectivity. in Islamic economics, time is precious 4. Choose one of the followings philosophies in the Islamic economic system that represents the concept of ownership. A B, c. 0. ‘We are the owner of the properties. This world is literally owned by Allah SWT. The land if free from encumbrances. Properties can be owned through sales and purchases. 5. The followings are the principles of Islamic economics EXCEPT A 8 c D. individual liberty. right to ownership justice, the freedom of speech. 6. The followings are the rules of functioning Islamic economics EXCEPT pomp zakah, prohibition of riba: girad. muamealet. HAKCIPTA TERPELIHARA USIM 1SULIT 10. " 12, 13. MGA1023/A161/A Qirad is A. abilateral trade agreement between two countries. 8. a government yearly budget deficit. C. the risk in business, D. sort of partnership between the owner of monetary assets and the entrepreneur. The focus of Islamic economies is on A. capital and profit B. dividends. C. human development. D. natural resources The followings are NOT the principles of Islamic economics EXCEPT A. right to hospitalization B. balance or non-partisanship C. freedom of speech D. freedom of doing anything, Each of the followings is a sector in Islamic economics EXCEPT private sector, public sector. social welfare sector. hisbeh sector. com> is an example of one of the jtimai laws. Al Wagf Bai Bithaman Ajil Company law Land law com> The for the poor people is determined by the level of development of the economy and the life-style of the people. had kifayab zakat tax Gst gom> The syara’ definition of Islam is A. ateligion of peace B. a divine revelation C. the uitimate religion, D. the full submission to Allah SWT in all dealings, HAKCIPTA TERPELIHARA USIM 2SULIT 15. 18, 7, 18, 19. MGA1023/A161/A The following are the foundations of Isiam teaching EXCEPT tauhid iman. aqidah amanah. pom> Oharuriyah is the case when basic needs are all provided for and we want better food, shelter and etc. a person is experiencing excess of weaith basic need is required. other people have, we also want to have pomp The following is an example of hajiyat goods A. Acar. B. A big mansion. C. Basic food D. A premier condominium. Tahsiniyyah condition is achieved when basic needs are all provided for and we want better food, shelter and ete. basic need is required. when other people have, we also want to have. a person is experiencing excess wealth, pomp __ refers to the sale of goods on a deferred payment basis at a price which inclides a profit margin agreed by both parties A. ArRahnu B. Bai Bithaman Ajil C. AlWadiah D. AkMurabahah Which contracts are involved with Contract a-Tabaru'at? i. AbMurabahah. ii, ALHibah, iii, A-Bai Bithaman Aji iv. Al-Qard Hassan. iiand ii i, ji and iit ii andiv i, i, ili and iv gom> HAKCIPTA TERPELIHARA USIM 3SULIT 20. a 22. 24, 25. MGAT023/A161/A Philosopity of Islamic economics consists of i. inequality judgment day. iii, possessions. iv. tauhid. A. ivii, ii and iv B. i, jiandiv C. jiliand iv D. iiandiv An investment in conventional banking is A. not allowed because the bank's profit is low. B. not allowed because of prohibition of interest. C. not allowed because the dividends are uncertain. D. not allowed because stock market is better. Which characteristic is considered a primary trait of entrepreneurs? A. Creativity B. Indifference. C. Low risk tolerance. D. Seeking reliability is a custom of a society. It can become a rule as long as it is not against the Islamic rulings. A. Al Qard 8. Ai Qias C. Dharurat D. ‘Unuf The elements in a business plan must comprise all FOUR (4) elements as follows Management, operation, financial and marketing, Management, salary, financial and marketing Management, operation, international ventures and marketing Management, operation, financial and public opinions. com> Which of the followings is NOT true on the murabahah terms? i. The selier need to state the actual cost and capital to the buyer. ii. The investment comes from all the partners. il, The liability of the partners is normally unlimited. iv. Both parties agreed on the profit as an additional to the actual cost A. iand ii B. iiand ii C. iii and ii D. i, iii andiv HAKCIPTA TERPELIHARA USIM 4SULIT 28. 29. 30. MGA1023/A161/A Which of the following is NOT contract based on ‘Agad Amanah? Contract al-Murabahah Contract at-Waacziat. Contract Tauliyyah, Contract al-ijarah. com> What are the characteristic of Jualah? i. The tenor is not fixed i. Paid on weekly basis. iii, No condition when it has to start. iv. Liberated agreement. A. iand it B. iiandiii C. iviiiandiv o ii, iiand iv Which of the below define Contract al-Wadhiah? A. The sale of goods at a price which includes a profit margin B. Sales transaction at cost price. C. Sales transaction below cost price D. Ajoint venture for a specific business with a profit motive. is riba in delaying time of exchange Riba al-Fad! Riba Nasiah Riba al-Qard Ribawiah Commodities pom» In sighah terms, ljab & Qabul can be done through several ways EXCEPT i bil kitabah, ii, 3rd party. iil, sign fanguage. iv. action A. iand it B. ii and iii C. i,j jii and iv 0. None of the above HAKCIPTA TERPELIHARA USIMSULIT 3 32. 33. 34, 36. 36, MGA1023/A161/A is selling of an asset by the Bank to the customer through Geferred payments, At 2 later date, the Bank will repurchase the asset and pay the customer in cash terms. Al-Bai Al-Wadiatt Bai al Inah Al ljarah Thumma Al Bai Som> Which of the following is NOT the personality characteristic of a female entrepreneur? A. Flexible and tolerant. Opinionated and persuasive Creative and realistic. Ability to deal with social and economic environment. vo Which is NOT the characteristic of assessing the market condition in developing a business plan? Competition. Supply of raw materials. Labor condition, Regulatory condition. DOD> Which of the following is NOT a common cause of a business failure? Managerial incompetence and inexperience. Neglect High educated employees Insufficient capital pop> Can we exchange RM1 with RM10? Yes, because we have mutual consent. No, it is Riba al Fadl, Yes, as long you are happy. No, because it should be RMT with RM100. pom> The function of a manager is as follows EXCEPT planning leading controlling, dividing oom, HAKCIPTA TERPELIHARA USIM 6SULIT 37. 38. 39. 40. a4 MGA1023/4161/A The following diagram represents President Marketing Operation Finance deparmentalised by function. deparmentalised by product. deparmentalised by customer. deparmentalised by geography. vom, These factors should be considered when choosing a site EXCEPT cost of location. labor expenses. source of demand. nearby your home. pon> The elements contributing to design and layout must be considered EXCEPT A. location characteristics. B production process. ©. product line. D. the architect design Production contro! involves purchasing materials. selling process. promoting products. designing factory. com> Individual factors that influence individual ethics are as follows EXCEPT A. personal valugs and personalities. B. family influences. C. peer influences and life experiences. D. legal interpretations. HAKCIPTA TERPELIHARA USIM 7SULIT 42. 43, 44, 45, 46. MGA1023/A161/A A practicing Muslim should find it easy to resolve any Islamic ethical issues, as in most cases, the moral, behavioral, and ethical guidance provided on business dealings in Islam are very comprehensive and detailed. The following are the examples of Islamic good conduct values EXCEPT ‘A. avoid price control B. prohibition of monopoly. C. prohibition of withholding of food (ihtikar) D. applying selling of uncertainty product (Al-Gharar) The five key principles axioms of Islamic ethical philosophy are A. Unity, benevolence, responsibility, free will and equilibrium. B. Unity, mutual exclusive, integrity. society, and empathy. C. Unity, individuality, power, free will and sanctity. D. Unity, readiness, responsibility, mutual consent and equilibrium The following are the principles of ethics in muamalah Islam EXCEPT A. truth and trust. B. sincere. C. brotherhood. D. total freedom. Khalif is a young entrepreneur that starts smail on his business. Despite that he has developed his business for 5 years, he still did not get @ good profit. One day, he met with his oid friend, Rashid, who is a very successful entrepreneur and he has done it in only 3 years. Rashid shared his secret that to be a successful entrepreneur, Khafif must not be too rigid in all of his deals. After taking Rashid's advises, Khalif changed the way he managed his business and be more flexible. What is the factor that influenced Khalif? A. Life influences. B. Peer influences C. Family influences. D. Situational factors. What are the foundations of financial success? i. Integrity, ii. Social skill ili, Spend more than you earn, iv. A supportive spouse. A. iand ii B, iiandiv C. illand iv D. i,iiandiv HAKCIPTA TERPELIHARA USIM 8SULIT 47. 48, MGA1023/A161/A The following are the principles pertaining halal and haram i. The basic principle is the permissibility of things. ji, To make lawful and to prohibit is the right of Allah alone, iii, Whatever is conducive to the haram is itself haram. iv. Good intention makes the haram acceptable, iand ii iand iii i, iiand iit ii i and iv com> Which of the following is NOT categorized as an unethical behaviour? Unfair treatment Deceive. Deal justly. Misuse company assets. com> Question 49 until 51 will be based on the following ribawiah commodities matrix rules of exchanges. 49, 50. 51 gold silver wheat barley dates salt god 1 2 x x x x silver 2 1 x x x x wheat x x 1 2 2 2 barley x x 2 1 2 2 dates Kx 2 2 12 _ salt x x 2 2 A What does 4 stand for in the above matrix? A. Equal B. Equal and on the spot C. Not equal and on the spot. D. Not equal and not on the spot What does 2 stand for in the above matrix? A. Equal B. Equal and on the spot, C. Not equal and on the spot D. Not equal and not on the spot What does x stand for in the above matrix? Equal Equal and on the spot Not equal and on the spot. Not equal and not on the spot. com> HAKCIPTA TERPELIHARA USIM 9SULIT 52, 53, MGA1023/A161/0, ‘What is khiyar majlis? ‘A. An option by stipulation in a contract is when one of the parties stipulate the condition that may have the option, for a maximum period of 3 days to continue or cancel the contract. B. Each one of the parties has the right to confirm or cancel the contract in the negotiation stage of the contract, as long as the parties are still there and not yet left. C. The option of viewing means that @ person who enters into a contract dealing with a certain objects which he has not seen has the right of canceling or conforming the contract upon seeing the object. D. Right of opinion on account of defect in the goods bought by a purchaser or Which he has become aware only after taking possession but which existed previously, What is the definition of khiyar syarat? ‘A. An option by stipulation in a contract is when one of the parties stipulate the condition that may have the option, for a maximum period of 3 days to continue or cancel the contract. B. Each one of the parties has the right to confirm or cancel the contract in the negotiation stage of the contract, as long as the parties are stil thete and not yet left C. The option of viewing means that a person who enters into a contract dealing with a certain objects which he has not seen has the right of canceling or conforming the contract upon seeing the object. D. Right of opinion on account of defect in the goods bought by a purchaser or which he has become aware only after taking possession but which existed previously Please choose the best definition for khiyar rukyah, ‘A. An option by stipulation in a contract is when one of the patties stipulate the condition that may have the option, for a maximum period of 3 days to continue or cancel the contract. B. Each one of the parties has the right to confirm or cancel the contract in the negotiation stage of the contract, as long as the patties are still there and not yet left C. The option of viewing means that a person who enters into a contract dealing with a certain objects which he has not seen has the right of canceling or conforming the contract upon seeing the object. D. Right of opinion on account of defect in the goods bought by a purchaser or whith he fas Become aware only after taking possession but which existed previously. HAKCIPTA TERPELIHARA USIM 10SULIT MGA1023/0161/4 58. Khiyar aib is almost similar with caveat emptor or buyers beware, What is khiyar ai according to Islamic perspective? ‘A. An optian by stipulation in a contract is when one of the parties stipulate the condition that may have the option, for @ maximum period of 3 days to ‘continue or cancel the contract. B. Each one of the parties has the right to confirm or cancel the contract in the negotiation stage of the contract, as long as the parties are still there and nat yet left C. The option of viewing means that a person who enters into a contract dealing with a certain objects which he has not seen has the right of canceling or conforming the contract upon seeing the object. D._ Right of opinion on account of defect in the goods bought by @ purchaser or which he has become aware only after taking possession but which existed previously. 58. Opportunity recognition can be identified fram the followings EXCEPT personal experience work experiences. education physical look. oom» 57. Which of the following is the main purpose for writing business plan? ‘A, The plan helps the company develop a road map to follow. B. The plan purposely misied potential investors and other stakeholders to the business opportunity. ©. To create knowledge. D. There is no real purpose. 58. Which of the following statements is NOT correct about business plans? ‘A, Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture. B. For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm, ©. Abusiness plan is typically 25 to 35 pages long. D. The business pian should be written while the feasibility analysis is being compieted. 89. The is a short overview of the entire business plan. summary statement executive summary managerial review founder's intraduction pomp HAKCIPTA TERPELIHARA USIM "SULIT 60. 61 62. 63. 64, 65. MGA1023/A161/A What section of the business plan deals with the day-to-day operations of a company? A. Financial pian B. Marketing plan. C. Operations plan. D. Industry analysis, The are the heart of the financial section of a business plan. A. financial ratios B. pro forma financial statements ©. budgets D. sources and uses of funds statements Ain) is a graphic representation of how authority and responsibilty are distributed within a company. ‘A. organizational chart B. personnel chart C. human resources chart D. administrative chart Irfan just spoke to an investor, who is interested in his business idea. Irfan offered to send the investor @ copy of his fulf business plan, but the investor asked for a short overview of the business plan instead. What portion of his business plan should irfan send the investor? A. Marketing plan. B. Executive summary. C. Elevator pitch. D. Company description Assets that will be used by a firm for more than one year are A. current assets. 8. other assets. C. fixed assets. D. intangible assets, Cash, marketable securities, and accounts receivable are examples of A. current assets. B. fixed assets. C. current liabilities. D. owner's equity. The accounting equation can be stated as assets = A. current assets + fixed assets, B. current liabilities + long-term debt. C. revenues ~ expenses D. liabilities + owner's equity HAKCIPTA TERPELIHARA USIM 12SULIT 67. 68, 69. 71 MGA1023/A161/A ‘A reduction in the value of assets over time is represented by revenue. marketable securities, cost of goods sold, depreciation. oam> The summary and analysis of a firm's financial condition is accomplished through A. management B. production C. bookkeeping D. finance Firms use accounting to report their financial data to all of the following EXCEPT A. existing stockholders. B. competitors C. government agencies. O. creditors. The revenue, costs and earnings of firms over a period of time are indicated on the A. balance sheet B. credit statement. C. income statement D. stockholders’ equity statement. Anything owned by a firm is a(n) liability asset, retainedearning revenue com> Firms normaily support a portion of their assets with funds of the owners called liabilities. sales revenues. owner's equity. A B ie D. cost of goods sold. HAKCIPTA TERPELIHARA USIM 13SULIT MGA1023/A161/A Question 73 until 85 will be based on the following Income Statement and Balance Sheet for Batu Bata Bhd Batu Bata Bhd Income Statements for the year ended 31 December 2015 Net Sales, Cost of Goods Sold Gross Profit Selling Expenses 400,000 General and Administrative Expenses _____30,000 Total Operating Expenses Earning before Interest and Taxes (EBIT) Interest Expenses Earning before Taxes Income Taxes (27%) Net income Batu Bata Bid Batance Sheet as at 31 December 2015 Assets Current Assets: Cash Marketable Securities Accounts Receivables Inventory Total Current Assets Fixed Assets: Net Plant and Equipment 290,000 Less: Accumulated Depreciation _ 29,000 Net Fixed Assets Total Assets Liabilities and Shareholders’ Equity Current Liabilities: Accounts Payable Notes Payable Total Current Liabilities Long-term Debt Owner's Equity ‘Common Stock 200,000 Retained Earnings 48,200 Total Owner's Equity Total Liabilities and Owner's Equity HAKCIPTA TERPELIHARA USIM 14 RM 700,000 500,000_ 200,000 130,000_ 70,000 40,000_ 60,000 16,200 43,800 RM 17,000 7,200 38,000 93,000_ 155,200 55,000 43,000_ 68,000 100,000 248,200_ 416,200SULIT 74, 75, 76. 77. 78. 79, MGA1023/A161/A The current ratio for Batu Bata Bhd is A, 2.28 times B. 0.91 times C. 5.37 times D. 2.68 times The quick ratio for Batu Bata Bhd is A. 2.28 times B. 0.91 times C. 5.37 times D. 2.68 times The inventory turnover for Batu Bata Bhd is A, 2.28times B. 0.91 times C. 5.37 times D. 2.68 times ‘The fixed asset turnover for Batu Bata Bhd is A. 2.28 times B. 0.91 times ©. 5.37 times D. 2.68 times The total assets turnover for Batu Bata Bhd is A. 2.28 times B. 0.91 times ©. 5.37 times D. 1.68 times The debt ratio for Batu Bata Bhd is A. 0.40 times. B, 0.91 times C. 5.37 times D. 2.68 times The times interest earned for Batu Bata Bhd is 2.28 times 7.0 times 5.37 times 1.68 times gomp HAKCIPTA TERPELIHARA USIM 15SULIT ac 81 82. 83, 85. 86. MGA1023/A161/A The net profit margin for Batu Bata Bhd is 6.26% 10% 18% 15% gom> ‘The average collection period for Batu Bata Bhd is A. 15 days B. 10 days C. 25 days D. Sdays The return on assets for Batu Bata Bhd is 6.26% 10% 18% 15% pom> The return on equity for Batu Bata Bhd is A. 6.26% B. 10% C. 18% D. 15% The amount of zakat payable for Batu Bata Bhd based on growth model is A. RM2,175 B. RM3,000 C. RM2,500 D. RM2,180 The amount of zakat payable for Batu Bata Bhd based on working capital method A. RM2,175 B, RM3,000 C. RM2,500 D. RM2,180 The ultimate objective of motivating employees to properly perform the tasks they are assigned is to encourage employees to create and produce a quality product. provide the employees with the support they need to sell the product. ensure that the employees have a high level of job satisfaction increase the value of the firm for the stockholders. pom> HAKCIPTA TERPELIHARA USIM 16SULIT 87. 88. 90. 1 MGA1023/A161/A Which employee efforts will directly contribute to a company's revenue? Efforts to achieve efficient production. Efforts to achieve efficient marketing. Efforts to sell the product. Efforts to achieve low financing costs. oom> Sharifah is an account manager who is reviewing employee contributions to company expenses. Which of the foliowings employee endeavors directly impact company expenses? Achieving Jow financing costs Creating a quality product Producing a quality product Selling the product gom>r The motivation of employees is influenced by the degree to which they are A. emotionally stimulated. B. satisfied with their job. C. compensated for their work, D. offered promotions within the firm. Managers can motivate employees by A. first recognizing the needs of the employees. B. ensuring that their self-actualization needs are satisfied C. encouraging higher productivity within the workforce. D. providing the highest compensation in the industry The following diagram is the _ financing. — +} Bank Buy Asset (1) oO Bank Pay Price (2) Customer Pay Price (4) —— —1¢—______| Bank Resell (3) Marabahah Bai al Inah, Musyarakeh Mutanagisah Mudharabah. CoD> HAKCIPTA TERPELIHARA USIM 17SULIT MGA1023/A161/A 92. The following diagram is the financing Musharak Financer Flow? (X% payments and Re share acquisition Murabahah. Bai al nah Musyarakah Mutanagisah. Mudharabah. com> Contre Company 93, The foliowing diagram is the financing, Purchase Asset a | omeror —] theAsset Pay Purchase ale Price(2) Murabahah, Bai at inah. Musyarakah Mutanagisah, Mudharabah. pomp 1 Customer Setting Price (Purchase Price + Profit) (4) HAKCIPTA TERPELIHARA USIM 18SULIT 94, 95. 96 97. 98, MGA1023/A161/A The following diagram is the financing, Sip Contract Company (Adit /Mudharib) Financer (Rabb al Mal) Flow 1 Invests in project a ae peri nen A. Murabahah. 8. Bajal Inah. C. Musyarakah Mutanagisah. D. Madharabah. Musyarakah Mutanagisah is a project financing method that combines ‘A. partnership and leasing 8. partnership and sale contract C. leasing and sale contract D. partnership, leasing and sale contract. Capital budgeting investment is A. investment assessment of working capital such as cash and inventory requirements, B. investment assessment of long-lived assets such as machinery. C. investment assessment of financial assets such as shares and bonds O. investmentassessment of money market securities, Zakah on maliis payable on all of the followings EXCEPT gold and silver agricultural produce. reared animals. real estate properties. gom> Followings is the methods of calculating zakah on business EXCEPT Working Capital Model Balance Sheet Model Growth Model Urfiiyah Model. pom> HAKCIPTA TERPELIHARA USIM 19SULIT 99. t00 MGA1023/A161/A. Lenders will normally agsess the creditworthiness of the borrowers before granting loans. Among the factors that the lenders normally look into are: i. Capitat ii. Character 4. Conditions iv. Collateral i, fiand ii ii ii and iv i, fii and iv i, i, ti andiv comp _'s the use of own money to fund the business. { Equity financing Debt financing Islamic financing Trade financing from suppliers gagp END OF QUESTIONS Dicetak oleh Unit Peperiksaan dan Pengijazahan Bahagian Pengurusan Akadomik Universit Sains islam Malaysia HAKCIPTA TERPELIHARA USIM 20