QUAID-I-AZAM UNIVERSITY

School of Economics (SoE)

Introduction to Business Studies
MUHAMMAD HANZLA MEHMOOD
04091913042
Mid Term Exam – Spring 2021
Instructors: Muhammad Akram
Program: BS Economics Course: Introduction to Business Studies (MSB 101)
Exam Date: 27/04/2021 Assigned Points: 30

INSTRUCTIONS: Please read the following instruction carefully

1. Attempt all 5 questions, including Question-1 which is Compulsory
2. Handwritten/Typed Exam, Answer the questions in allocated time: 1-½ hours (90
minutes)
3. Extra time for submission in the Portal: ½ hour (30 minutes)
4. For Question-2 to Question-4, Answer SHOULD not be more than 150 words

Question-1: Answer ALL Questions. Encircle Correct Answers {10 x 1 = 10 marks}

1. Which of the following business managers depend most on conceptual skills?

a. first level managers
b. top level managers
c. middle level managers
d. marketing managers

2. What is the result of two or more firms collaborating on a wrongful act, such as price fixing?

a. unfair pricing
b. collusion
c. price gouging
d. product collaboration

3. What is the name of the concept that expanded the role of business in protecting and enhancing the
general welfare of society?
a. ethics
b. morals
c. accountability
d. social responsibility

4. In business, ethical decisions are generally based on what?

a. social responsibility
b. societal norms
c. individual ethics

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 d. laws

5. Factors such as international trade agreements, economic conditions, and political unrest will have
the greatest impact on what type of business environment?
a. global business environment
b. economic environment
c. domestic business environment
d. technological environment

6. Making decisions on the basis of experience, feelings and accumulated judgment is called as
a. intuitive decision making
b. emotional decision making
c. rational decision making
d. experimental decision making

7. What type of skills requires defining problems and selecting the best course of action to take?
a. human resource skills
b. production skills
c. technical skills
d. decision making skills

8. What function of the management process is used to monitor and ensure the organization is
meeting its goals?
a. planning
b. organizing
c. leading
d. controlling

.
9. Which software provides key performance indicators to help business managers to monitor
efficiency of projects and employees?
a. Management Information System
b. Business Performance Management
c. Enterprise Application Software
d. Online analytical Processing

10. Process for converting government enterprises into individually owned firms is known as?
a. production
b. privatization
c. entrepreneurship
d. profit maximization

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Note: For Questions 2 - 4, Answers should not be more than 150 words { 3 x 4 =12 }

Question-2: What is the difference between a goal and a strategy? Which one is a pre-requisite of
other and why?
Goal :
A Goal is a broad primary outcome. A goal, in business, describes what a company
expects or hopes to accomplish over a specific period. In other words, where it hopes to
be at a future date
Strategy :
. A strategy describes how the ends (goals) will be achieved by the resources. Its
generally involves, setting goals and priorities, determining actions to achieve the goals,
and mobilizing resources to execute the actions.
Part B : STRATEGIES AS PRE-REQUISITE FOR GOALS:

To be a successful businessman, Strategy must comes first. Goals are just a way
measure what you want to achieve as an organization. In Business, it’s about getting
focused , and staying focused. You can set all the goals you want, But you should
understand first that what are you delivering to the customer. For that reason, Strategy is
critical. You have to make a choice about your most dedicated and profitable customers,
and how you deliver what they truly want and need. We shouldn’t create goals without
an underlying strategy to direct them.

Question-3 :A business manager has many roles within the organization.

Discuss the interpersonal roles of manager and how those roles affect the
performance of an organization?
Business manager a individual who oversees the commerce undertakings of
an person, institution, organization, or company" What is the part of a business
manager? Developing manager administration objectives and targets that tend
to development and success. Planning and executing trade plans and strategies
to advance the achievement of objectives. Guaranteeing that the company has
the satisfactory and reasonable assets to total its exercises: NTERPERSONAL ROLE OF
MANAGER:
Interpersonal roles cover the relationships that a manager has to have with others.
The three roles within this category are

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 Figurehead :Its includes symbolic duties which are legal or social in nature.
Leader: ‘Its includes all aspects of being a good leader. This involves building a team,
coaching the members, motivating them, and developing strong relationships.

Liaison: Its includes developing and maintaining a a network outside the office for
information and assistance.
Affect of these roles in the performance of an organization.

Interpersonal communication skills can help you be productive in the workplace, build strong and
positive relationships with your colleagues and complete team projects smoothly and effectively.
The benefits of good interpersonal skills can affect the morale and productivity of your entire team
or department.

Question-4: Discuss ways in which business organization can help to ensure all members
of the organization participate in ethical compliance.
 business organization, an entity shaped for the reason of carrying on business  venture. Such an
organization is predicated on frameworks of law overseeing contract and trade, property rights,
and consolidation.

What are a few things companies can do to assist guarantee that their workers act

ethically?
● Lead By Example
● Create a code of ethics.
● Hire with an accentuation on moral behavior.
●Refer staff to the compliance department.
● Reward moral behavior within the workplace.
● Promote as it were workers who illustrate moral behavior.
●Communicate the significance of morals by means of regular emails
or worker meeting .
Companies Can Energize Morals within the Workplace Companies
can empower work environment morals by planning and supporting staff to act right.
Good eagerly and decrees aren’t sufficient,so pioneers mustboth show and compensa
te moral behavior in employees. A company with a solid code of conduct will draw
in and secure representatives with moral behavior, which benefits the company
culture and the foot line.

Question-5: Decision Making Conditions: A Company in Construction Sector is in decision

making process to take up one of the given Business Plans X and Y which require an estimated

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investment of PKR 8 million each. As the Company is new in this type of business; Advise, WHICH
Business Plan should be taken up by the Company; Either Plan- X or Plan- Y? {8 marks}

Business Plan X Business Plan Y

Returns Probability Returns Probability

12 0.10 8 0.10
14 0.20 12 0.25
16 0.40 16 0.30
18 0.20 20 0.25
20 0.10 24 0.10

ANSWER NO 5
Business Plan “X”
P R R =R×P (R- Σ R ¿ (R- Σ R ¿ 2 P(R- Σ R ¿ 2
0.1 12 1.2 -4 16 1.6
0.2 14 2.8 -2 4 0.8
0.4 16 6.4 0 0 0
0.2 18 3.8 2 4 0.8
0.1 20 2 4 16 1.6

Σ R=¿16 V=4.8

Expected Returns=16%
Standard Domain=Risk=√ 4.8 =2.2%

Business Plan “Y”

P R R =R×P (R- Σ R ¿ (R- Σ R ¿ 2 P(R- Σ R ¿ 2

0.1 8 0.8 -8 64 6.4
0.25 12 3 -4 16 4
0.3 16 4.8 0 0 0
0.25 20 5 4 16 4
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 0.1 24 2.4 8 64 6.4

Σ R=¿16 V=20.8

Expected Returns=16%
Standard Domain=Risk=√ 20.8=4.56%

 Standard deviation is higher for Business Plan “Y” than Business Plan “X”
 Higher S.D means higher Risk, Thus Risk is higher in Plan “Y” than Plan “X”
 Thus, the investor must opt to the Plan “X” as risk is lower for it with the same
amount of returns.

GOOD LUCK!!

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