EXAMINATION PAPER

FACULTY : BUSINESS AND ACCOUNTANCY

COURSE : BACHELOR (HONS) IN BUSINESS ADMINISTRATION (BBA)

YEAR/ SEMESTER : SECOND YEAR / SEMESTERTHREE

MODULE TITLE : BUSINESS ORGANISATION

CODE : BBA 1313

DATE : 11, APRIL-2017

TIME ALLOWED : 3 HOURS

START : 12:00 NOON FINISH : 3:00 PM

Instruction to candidates
1. This question paper has THREE (3) Sections.

2. Answer ALL questions in Section A, MCQ.

3. Answer 5 questions in Section B, MSAQ

4. Answer 2 questions in Section C, MEQ

5. No scripts or answer sheets are to be taken out of the Examination Hall.

6. For Section A, answer in the OMR form provided.

Do not open this question paper until instructed

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 SECTION A

Multiple Choice Questions (30*1=30)

1. The article called “the base of power” is published by:

a. Henry Fayol
b. Maslow
c. John French and Bertram Raven
d. F.W. Taylor

2. There are ………….. levels of product and service:

a. One
b. Two
c. Three
d. None of the above

3. Mass market is also known as …………..

a. Differentiated market
b. Un differentiated market
c. Unique market
d. Niche market

4. Which of the following statement is incorrect?

a. Profit is high in product development stage
b. Profit is low in product development stage
c. Sales is high in growth stage
d. All of the above

5. Business is an activity which is concerned with:

a. Providing service
b. Earning money
c. Production of goods
d. Distribution of goods

6. Which of the following need not have MOA (Memorandum of Association)

a. Public company
b. Private company
c. Government company
d. Statutory Corporation

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7. A private company can borrow funds?
a. After incorporation
b. After obtaining certificate to commerce business
c. After holding first annual general meeting
d. None of the above

8. Which of the following statements about co-operative business organisations

is true?
a. All co-operatives are only concerned with retailing
b. Profits are shared equally amongst members
c. They are owned by shareholders.
d. Workers have no say in decision-making.

9. Which one of the following approach has emerged from the findings of
Hawthorne experiments?
a. Human behaviour approach
b. System approach
c. Human relations approach
d. Decision theory approach

10. The number of persons reporting directly to a superior person is called:

a. Communicating
b. Coordinating
c. Span of control
d. Centralization

11. Printing department is an example of departmentalization.

a. Functional
b. Process
c. Product
d. Customer

12. It includes the area where the factory or business firm or outlet is situated.
a. Layout
b. Design
c. Site
d. Branch

13. Is the act of increasing the knowledge and skill in an employee for doing a
particular job.
a. learning
b. motivating
c. training
d. industrial peace

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14. _________ are the merchant middleman which facilitate the flow of product
from producers to the customers.
a. transport company
b. agent
c. retailer
d. both a and b are incorrect

15. Product life cycle includes the following stages.

a. formulation, planning, implementation and control
b. product birth, growth and death
c. development, introduction, growth and decline
d. introduction, growth, maturity and decline

16. When entrepreneurs establish a business, they must first decide on the form
of:
a. divestiture
b. global expansion
c. joint venture
d. ownership

17. Karo wants to form his own business. He wants to get started as quickly and
inexpensively as possible and has a strong desire to control the business
himself.He is confident he will be successful and wants to keep all the profits
himself. Karo’s goals indicate he would probably choose to operate his
business as a(n):
a. limited partnership
b. limited liability company
c. corporation
d. sole proprietorship

18. All of the following are typical goals that the management function can help
to achieve except:
a. high production efficiency
b. high production quality
c. limited competition
d. customer satisfaction

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19. The management of a firm would benefit from having _____ in order to
effectively handle various possible unexpected business conditions.
a. interpersonal plans
b. various leadership styles
c. strategic plans
d. contingency plans

20. The recognition of how a firm’s business decisions can affect society is its:
a. moral code
b. social responsibility
c. conservation policies
d. recycling program

21. . Business idea can be generated from various sources like:

a. Market survey
b. . Contacts with prospective consumers
c. Project reports and publications
d. All of the above

22. Environmental scanning means,

a. Control over external environment
b. Environmental pollution and its impacts
c. Gathering information about organizational internal strengths and weakness
d. The screening of large amounts of information to anticipate and interpret
change in the environment.

23. Decision making essentially involves the following:

a. Defining/identify the problems
b. Developing the alternatives
c. Evaluating and selecting the best among the available alternatives
d. All of the above

24. The HR plans of any organization do not include:

a. Personnel plans
b. Production plans
c. Compensation plans
d. Training and development plans

25. Which one of the following layout type is also called line layout?
a. Cellular layout
b. Fixed Position Layout
c. Process layout
d. Product layout

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26. Formal power is exercised in a ________manner.
a. Bottom-up
b. Top-down
c. Horizontal
d. Vertical

27. The profits related to the new product in its introductory stage are:
a. negative
b. continuously rising
c. higher
d. declining

28. Which one of the following represents the sequential stages of the product life
cycle concept?
a. introduction; development; growth; saturation; maturity; decline
b. development; introduction; growth; maturity; saturation; decline
c. development; growth; introduction; maturity; saturation; decline
d. development; introduction; maturity; growth; saturation; decline

29. In marketing intermediaries, way of distribution in which few dealers

distribute company's product in selective territories is classified as
a. selective distribution
b. intensive distribution
c. inclusive distribution
d. exclusive distribution

30. Pricing strategy used to set prices of products that are must be used with
main product is called:
a. optional product pricing
b. product line pricing
c. competitive pricing
d. captive product pricing

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 SECTION B
Short Answer Questions
Attempt any five (5) questions out of eight (8) questions (5*6=30)

1. Explain the concept of business? Explain its importance. (2+4)

2. Decision- making is the essence of management.” Discuss.

3. How human resource plays a key role in fulfilling organizational objectives.

4. Explain the product life cycle phases.

5. Define power. Explain the various sources of power in an organization. (2+4)

6. What is decision making? Explain the steps involved in the process of decision-
making. (1+5)

7. What is total quality management (TQM)? Briefly summarize the key guidelines
for improving quality under TQM. (1+5)

8. Write short notes on:

i. Departmentation
ii. Product differentiation
iii. price skimming

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 SECTION C
Long Answer Questions
Attempt any two (2) questions but question no 1 is compulsory (2*20=40)

1. Read the case and answer the questions analytically:

Toyota Motor Corporation (TYO: 7203) has often been referred to as the gold
standard of the automotive industry. In the first quarter of 2007, Toyota (NYSE: TM)
overtook General Motors Corporation in sales for the first time as the top automotive
manufacturer in the world. Toyota reached success in part because of its exceptional
reputation for quality and customer care. Despite the global recession and the tough
economic times that American auto companies such as General Motors and Chrysler
faced in 2009, Toyota enjoyed profits of $16.7 billion and sales growth of 6% that
year. However, late 2009 and early 2010 witnessed Toyota’s recall of 8 million
vehicles due to unintended acceleration. How this could happen to a company known
for quality and structured to solve problems as soon as they arise? To examine this
further, one has to understand about the Toyota Production System (TPS).

TPS is built on the principles of “just-in-time” production. In other words, raw

materials and supplies are delivered to the assembly line exactly at the time they are to
be used. This system has little room for slack resources, emphasizes the importance of
efficiency on the part of employees, and minimizes wasted resources. TPS gives
power to the employees on the front lines. Assembly line workers are empowered to
pull a cord and stop the manufacturing line when they see a problem.

However, during the 1990s, Toyota began to experience rapid growth and expansion.
With this success, the organization became more defensive and protective of
information. Expansion strained resources across the organization and slowed
response time. Toyota’s CEO, Akio Toyoda, the grandson of its founder, has
conceded, “Quite frankly, I fear the pace at which we have grown may have been too
quick.”

Vehicle recalls are not new to Toyota; after defects were found in the company’s
Lexus model in 1989, Toyota created teams to solve the issues quickly, and in some
cases the company went to customers’ homes to collect the cars. The question on
many people’s minds is, how could a company whose success was built on its
reputation for quality have had such failures? What is all the more puzzling is that
brake problems in vehicles became apparent in 2009, but only after being confronted
by United States transportation secretary Ray LaHood did Toyota begin issuing recalls
in the United States. And during the early months of the crisis, Toyota’s top leaders
were all but missing from public sight.

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The organizational structure of Toyota may give us some insight into the handling of
this crisis and ideas for the most effective way for Toyota to move forward. A conflict
such as this has the ability to paralyze productivity but if dealt with constructively and
effectively, can present opportunities for learning and improvement. Companies such
as Toyota that have a rigid corporate culture and a hierarchy of seniority are at risk of
reacting to external threats slowly. It is not uncommon that individuals feel reluctant
to pass bad news up the chain within a family company such as Toyota. Toyota’s
board of directors is composed of 29 Japanese men, all of whom are Toyota insiders.
As a result of its centralized power structure, authority is not generally delegated
within the company; all U.S. executives are assigned a Japanese boss to mentor them,
and no Toyota executive in the United States is authorized to issue a recall. Most
information flow is one-way, back to Japan where decisions are made.

Questions:

a. Which form of organizational structure is Toyota following? Explain

with reasons. (5)
b. What are the pros and cons of Toyota’s structure? (5)
c. What elements of business would you suggest remain the same and what
elements might need revising? Why? (5)
d. Differentiate centralization and decentralization. (5)

2. Define conflict. What are the possible reasons of organizational conflict? Explain
the outcomes of conflict in an organization. (2+8+12)

3. What is labour relation? Why do you think employees join trade unions? Explain
the advantages and disadvantages of being a union member? (2+8+10)

****BEST OF LUCK****