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CHRISTIAN COLLEGE OF SOUTHEAST ASIA

Rodriguez, Avenue, Ma-a, Davao Rosario Building, Don Julian
Provides Quality Education in a Christ-centered Institution

FINAL EXAMINATION ON BUSINESS ORGANIZATION AND MANAGEMENT

First Semester SY 2021 – 2022
by Celine Eleanor S. Ramos

Olimba, Alicia Dawn A.

BSBA – FM
1Y-PM-G02 DAN

Test I. Read the questions thoroughly before answering. (40 points)

1. Watch the video and make a summary on it.

https://www.youtube.com/watch?v=K57rvR2nGu0
MBO | What is Management by Objective? | Advantages and Disadvantages of
MBO

MBO stands for Management by Objective. MBO is the establishment of

a management information system to compare actual performance and
achievements to the defined objectives. MBO technique ends in employee
satisfaction. It avoids job mismatch and useless confusions in a while. It
helps the personnel to recognize their responsibilities at the administrative
center. Management by Objective ensures a powerful communique among
the personnel. It leads to an advantageous atmosphere at the place of
work. Management by objectives leads to nicely defined hierarchies on the
place of business. It ensures transparency in any respect levels. A
supervisor of any enterprise could in no way at once have interaction with
the managing director in case of queries. He might first meet his reporting
boss who would then bypass the message to his senior and so on. Each
one is apparent about his position inside the enterprise. The MBO
procedure results in surprisingly influenced and devoted employees.

Advantages of MBO
1. It forces the manager to simplify the plan and activities for the best results.
It allows the manager to think about both product and performance.
2. It enables the manager to concentrate on important and profit influencing
tasks instead of tasks which could have little impact on ultimate results.
3. Employees commit themselves to give their best to move its’
achievements.
4. It allows employees to work their own without taking directions and
guidance from their superiors.
5. It helps to establish own standards, evaluating performance and taking
necessary and immediate action if there are any deviations.
6. It helps the management team to formulate better management training
programs based on performance reviews.
7. Management by Objectives helps in more effective planning.
8. Management by Objectives aids in developing effective controls over
employee’s performance and productions.
9. Management by Objectives provides more confidence in the management
in managing a task.

Disadvantages of MBO
1. If the undertaking person or manager doesn't have proper knowledge
about the philosophy of MBO then the MBO will definitely fail.
2. Goals should be attainable and realistic. If the goals are too hard to
complete, it decreases employees’ confidence.
3. Setting up a goal requires a lot of time, patience, study and experience.
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4. MBO mainly focuses on the short-term goals and neglects the long-term
goals. But the success of a company depends on their long-term goals
and visualizations.
2. https://www.youtube.com/watch?v=YMw_9naWXNI
Accounts receivable –(Overview)

ACCOUNTS RECEIVABLE
Receivables are financial assets that represent a contractual right to
receive cash or another financial asset from another entity. For retailers or
manufacturers, receivables are classified into trade receivables and
nontrade receivables. Trade receivables refer to claims arising from sale of
merchandise or services in the ordinary course of business.

Accounts receivable are open accounts or those not supported by

promissory notes. Other names are customers' accounts, trade debtors
and trade accounts receivable. Notes receivable are those supported by a
formal promise to pay in the form of notes. Nontrade receivables represent
claims from sources other than sale of merchandise or
services in the ordinary course of business.

CLASSIFICATION OF RECEIVABLES
Trade receivables which are expected to be realized in cash within the
normal operating cycle or one year, whichever is longer, are classified as
current assets. Nontrade receivables which are expected to be realized in
cash within length year one the of the operating cycle not with standing are
classified as current assets. If collectible beyond One nontrade year,
receivables are classified as noncurrent assets

CUSTOMERS' CREDIT BALANCES

Customers credit balances are credit balances in accounts receivable
resulting from overpayments, returns and allowances, and advance
payments from customers.

These credit balances are classified as current liabilities and not offset
against the debit balances in other customers' accounts, except when the
same is not material in which case only the net accounts receivable may be
presented.
ACCOUNTS RECEIVABLE
Accounts receivable are open accounts arising from sale of merchandise
or service in the ordinary course business. Accounts receivable shall be
measured initially at face value or original invoice amount. However,
subsequently the accounts receivable shall be measured at the net
realizable value, meaning the amount of cash expected to be collected.

Accordingly, in estimating the net realizable

of trade accounts receivable, the following deductions are made:
a. Allowance for freight charge
b. Allowance for sales return
C. Allowance for sales discount
d. Allowance for doubtful accounts

TERMS RELATED TO FREIGHT CHARGE

The following terms should be understood: FOB Destination, FOB shipping
point, freight collect and freight prepaid.

The term "FOB destination" means that the ownership of the goods
purchased is vested in the buyer upon receipt thereof. Accordingly, the
seller shall be responsible for the freight charge up to point of destination.
The term "FOB shipping point" means that the ownership of the goods
purchased is wasted in the buyer upon shipment thereof. Accordingly, the
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seller shall be responsible for the freight charge up to the point of

destination.

The term "freight collect" means that freight charge on the goods shipped
is not yet paid. The common carrier shall collect the same from the buyer.
Thus, under this, the freight charge is actually paid by the buyer. The term
"Freight prepaid" means that freight charge on the goods shipped is
already paid by the seller. On the other hand, the term “FOB destination”
means that the ownership of the goods purchased is vested in the buyer
upon receipt thereof. Accordingly, the buyer shall be responsible for the
freight charge up to the point of destination.

3. https://docs.google.com/spreadsheets/d/
12UauyvuhQ5V7cfdvV6KQyCtOsiM_uhSDDK0x6agJt00/edit?
fbclid=IwAR1r3uMMOtto7g6UUvRWKH6VlAd8EJina90-
I6bYpyqM1hkUkceVFdDYbaY#gid=0
Complete accounts payable process | Flow | Cycle

An account system of creditors is known as accounts payable. The

process for creating account payables is called the cycle of accounts
payable. These are the steps;
1. Identifying the required goods or services
2. Preparing of material request form.
3. Procurement Department - purchasing department of the company
4. Finding Suppliers
5. Issuance of RFQ (Request for Quotation Form)
6. Getting quotation
7. Issuing Purchase order
8. Receipts of goods and services
9. Matching Goods received as per PO
10. Sending invoice to procurement department
11. Invoice entry to Department
12. Getting account statement of supplier
13. Making payment as per schedule

4. https://www.youtube.com/watch?v=5n4josMijng
Management Skills Every Manager Should Have

There is no perfect recipe of management skills to make a good manager.

However, we can get pretty close. A good manager, or rather, a GREAT
manager is obsessed with potential. They feel they have great potential to
change the world AND want to activate that potential in others. I have put
together my top management skills for activating potential in your team,
your colleagues and yourself. These are the Management Skill Be a
meeting pro, Dealing with difficult employees, Manage in every channel,
The single best team building exercise and Manage your boss. Being an
effective manager means understanding and relating to your employees.
The most important management skill you can hone is your ability to
decode personality. A team can have many different personalities in the
mix.

Test II. True or False: Write true if the statement is true and false if the statement
is false.: (10 points).

1. False In business, planning is not required.

2. True Sound administration is another term for sound investment.

3. False Foreign investment is the process of matching your financial objectives

with your available investment resources.
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4. True A covered interest arbitrage strategy is one in which a forward contract is

used by an investor to hedge against the risk of currency fluctuations

5. True A type of arbitrage is uncovered interest arbitrage that entails switching

from a local currency that offers a lower interest rate to foreign investors to a
currency with a higher rate of interest deposits.

6. False There are three kinds of interest arbitrage.

7. False Political instability refers to a government's stable structure and its

proclivity to collapse in a short period of time as a result of stable political
structures.

8. True Political unrest is important because it ensures the inflow of Foreign Direct
Investment.

9. True When a company receives investment from a foreign investor, it is

said to be of foreign investment character (individual or company).

10. True A significant feature of Foreign Investment is a long-term interest in

the business where the investment is being made.

Goodluck (50 points)