DEPARTMENT OF BUSINESS ADMINISTRATION

FEDERAL URDU UNIVERISTY FOR ARTS, SCINCE & TECHNOLOGY GULSHAN E IQBAL

INTRODUCTION TO BUSINESS

Class: BBA I Time Allowed: 2hrs

Teacher: Amber Saleem Max Marks: 60

• Attempt all questions.

• Return question paper along with answer sheet, otherwise your copy will not be
assessed.
• USE OF MOBILEPHONE IS STRICTLY PROHIBITED.

Q1- Differentiate between a Public Limited Company and a Private Limited Company. (5 marks)

Q2- What do you mean by merger? Which types of mergers are taking place in the following companies? (5 marks)

a) A Jam making company combines with a fruit farm

b) A tire manufacturer combines with a car making company.
c) Hero Honda motor bike Co. combines with Unique bike Co.
d) A textile company merges with a restaurant
e) Orient TV manufacturer merges with LG TV manufacturer.

Q3- Describe the reasons for the failure of Socialism. (10 marks)

Q4- Explain the terms GDP and GNP (5 marks)

Q5- What are different types of partners? Explain advantages of sole proprietorship. (10 marks)

Q6-What type of Competition exists in the following industry? (5 marks)

a) K Electric in Karachi
b) Getz pharmaceutical company
c) Pakistan Railways
d) ARY news channel
e) Shaheen Airline
Q7- Calculate the balance of payment and balance of trade from the following transactions: (10 marks)

a) The country exported wheat of Rs. 400,000

b) The students went abroad for study purpose and took Rs. 300,000 with them
c) Politicians went for treatment to foreign hospitals and had taken Rs. 350,000 with them
d) The country imported crude oil of Rs. 500,000
e) The country exported surgical goods of Rs. 450,000
f) The country exported sports goods of Rs. 250,000
g) The tourists came to the country and brought foreign exchange of Rs. 350,000
h) The country imported equipment of Rs. 150,000
i) Foreign students came to the country and brought Rs. 200,000 to the country.

Q8- Differentiate the input and output market transactions: (5 marks)

a) Farmers sold cotton to textile mill

b) You purchased Polo shirt
c) You deposited money in a commercial bank. This money will be lent to the business firm
d) Poultry farms sold chicken to Meat One.
e) The firm hired labor to work in the factory.

Q9- Mark as true or false: (5 marks)

a) At equilibrium price, quantity demanded is equal to quantity supplied.

b) If equilibrium price is Rs. 10, then at the price of Rs. 12 shortage will exist.
c) When no. of buyer is less than no. of supplier we have equilibrium in the market.
d) If equilibrium price is Rs. 20, then at the price of 15 shortage will exist in the market.
e) If quantity demanded is less than quantity supplied then surplus will exist in the market.