BUSINESS MANAGEMENT

& ADMINISTRATION
June 2019

Time allowed
Three hours

Instructions
• Write the question number next to each answer in your answer booklet.
• You are not required to rewrite the question in your answer booklet.
• Ensure that you pay particular attention to words in bold.

Information
• Different questions may carry a different number of marks.
• Marks for each question are shown in [ ].

Advice
• Read each question carefully before you start to answer it.
• Use the full time permitted and check all your answers.

Materials
• No other computer equipment, notes or books are permitted.
• For those exams for which numeracy skills are required:
a) Non-programmable calculators are permitted.
b) Data tables are included at the back of the paper.

© INSTITUTE OF COMMERCIAL MANAGEMENT

 ANSWER FIVE QUESTIONS FROM EIGHT.

1. Explain the role and function of each of the following departments of a company:
(a) Purchasing department [10 marks]
(b) Research and development department [10 marks]

2. (a) Every organisation must have a framework of authority. Explain the following
types of authority, giving an example of each:
(i) Charismatic authority [4 marks]
(ii) Traditional authority [4 marks]
(iii) Legal authority [4 marks]
(b) Explain what is meant by an organisation chart. Draw an organisation chart
to show the structure of a large manufacturing business. [8 marks]

3. (a) Limited companies are formed by a process of Registration. Explain the

two documents that must be produced for the Registrar of Companies:
(i) The Memorandum of Association
(ii) The Articles of Association [12 marks]
(b) Discuss the differences between a private limited company (Ltd) and a
public limited company (plc). [8 marks]

4. Discuss the factors that will influence the selection of a new production site for
a company manufacturing chocolate. [20 marks]

5. An important element of the marketing mix is concerned with pricing. Discuss the
factors that will influence the pricing policy of a company producing motor vehicles. [20 marks]

6. Explain how the following can contribute to improving the effectiveness and
efficiency of employees:
(a) Induction [5 marks]
(b) On-the-job training [5 marks]
(c) Apprenticeships [5 marks]
(d) Performance appraisal [5 marks]

7. Explain FIVE functions of financial managers in a company. [20 marks]

8. Describe the formal minutes written after a meeting and discuss the reasons
why these formal minutes are important. [20 marks]

END OF QUESTIONS