Admas University

Faculty of Business
Department of Business Management
Model Exit Exam III CODE MK-003

Name _________________________ SENE, 2015

ID.No._________________________ Time allotted: 3:00 hrs
Section _________________
Model Exit Exam Business Management
Department of Business Management
Share of Competencies (KSA) per course in Exit Exam
Course
Share of Competencies
Weight Share of
Themes Course Name Total
Cr.Hrs./ Courses%
Knowledge Attitude Skill
ECTS
Theme 1: Introduction to Management 3 8 7 1 8
Fundamentals of
Principles of Marketing 3 7 7 7
Management and
Marketing International Marketing 3 7 7 7
(9) 22% 22 21 0 1 22

Theme 2: Human Human Resource Management 4 8 5 1 2

Resource and Organizational Behavior 3 7 4 2 1
Organizational
Behavior Leadership and Change
3 6 5 1
Management
(9) 21% 21 14 3 4 21
Entrepreneurship 3 6 4 1 1
Theme 3:
Innovation, Management information systems 3 4 2 2
Strategy and
Project Strategic Management 3 6 5 1
Management
Project Management 3 6 5 1
(12) 22% 22 16 1 5 22
Theme 4: Business Research Methods 3 7 7
Managerial
Statistics for Management I 3 4 2 2
Statistics and
Business Research Statistics for Management II 3 4 4
(9) 15% 15 9 0 6 15
Theme 5: Operations Management 4 8 7
Management 1
Science and Financial Management 3 5 2 3
Financial
Management Operations Research 4 7 3 4

(11) 20% 20 12 0 8 10
(50) 100% 100 72
4 24 100
Instruction: Read the questions and choose the right answer from the given alternatives and write
the letter of your choice on the space provided at the separate answer sheet. (1 point each)

Theme 1 Fundamentals of Management and Marketing

1. Management and accounting and finance department heads are managers. They have the
same status in our university positional hierarchy. Since they are working in one college, they
have to work together and communicate each other. The communication that takes place
between these two individuals are _________________?
A. Downward communication
B. Horizontal communication
C. Upward communication
D. Diagonal communication
2. Whenever an employee works hard, gets job done as soon as possible and brings a creative
idea then you, as a manager, provides him/her bonus, salary increment or promotion as
reward and the reverse is true. What kind of motivation theory have you been using in your
organization then?
A. Theory of need
B. Theory of x and theory of y
C. Carrot and stick approach
D. Herzberg theory
3. Assume that, you like and respect one of your instructors; even you are trying to follow
her/his style since you considered her/him as a role model. This is because of her/his personal
traits, interpersonal skills, and charisma. Hence, which types of power she/he possessed?
A. Coercive power
B. Expert power
C. Referent power
D. Legitimate power
4. Standing plan that furnish broad guidelines for channeling management thinking in specified
direction are called?
A. Single‐use plan
B. Programs
C. Procedures
D. Policies
5. The degree to which decision making is confined at a single point in an organization is
described as‐‐‐‐‐‐‐‐‐‐
A. Unity of command
B. Chain of command
C. Centralization
D. Decentralization
6. Managers who are responsible for making organization wide decision & establishing the
plans &goals that affect the entire organization are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. First line managers
B. Top managers
C. Production managers
D. Research managers.
7. When a manager monitors the work performance of workers in his department to determine
if the quality of their work is 'up to standard', this manager is engaging in which function?
A. Planning
B. Controlling
C. Organizing
D. Leading
8. What are the three interpersonal roles of managers?
A. Figurehead, leader and liaison
B. Spokesperson, leader, coordinator
C. Director, coordinator, disseminator
D. Communicator, organizer, spokesperson
9. All of the following are accurate descriptions of modern marketing, EXCEPT which one?
A. Marketing is the creation of value for customers.
B. Marketing is managing profitable customer relationships.
C. Selling and advertising are synonymous with marketing.
D. Marketing involves satisfying customers' needs.
10. ________ is defined as a social and managerial process by which individuals and
organizations obtain what they need and want through value creation and exchange.
A. Selling
B. Advertising
C. Marketing
D. Negotiating
11. When backed by buying power, wants become ________.
A. Social needs
B. Demands
C. Physical needs
D. Exchanges
12. What do companies call a set of benefits that they promise to consumers to satisfy their
needs?
A. Market offering
B. Value proposition
C. Demand satisfaction
D. Need proposition
13. Which of the following refers to sellers being preoccupied with their own products and losing
sight of underlying consumer needs?
A. Selling myopia
B. Marketing management
C. Value proposition
D. Marketing myopia
14. When marketers set low expectations for a market offering, the biggest risk they run is
________.
A. Disappointing loyal customers
B. Decreasing customer satisfaction
C. Failing to attract enough customers
D. Failing to understand their customers' needs
15. A(n) ________ is the set of actual and potential buyers of a product.
A. Market
B. Audience
C. Group
D. Segment
16. _________ means a product originally designed for a local market is exported to other
countries with virtually no change, except perhaps for the translation of words and other
cosmetic changes.
A. Product Adaptation
B. Product scheduling
C. Product Standardization
D. Product differentiation
17. This market entry strategy maximizes a profit potential while tolerating a higher degree of
risk Correct
A. Foreign indirect investment
B. Foreign direct investment
C. Foreign semi-direct investment
D. Home-country investment
18. This strategy involves selling a product from a home base, usually without any product
modification
A. Exporting
B. Licensing
C. Joint venture
D. Manufacturing
19. Sony and Pepsi joined together to market Wilson sporting goods in Japan and this strategy is
known as
A. Exporting
B. Licensing
 C. Joint venture
D. Assembly operations
20. ______is the practice of charging different prices for the same product in similar markets.
A. Tariffs and Distribution Costs
B. Market Share
C. Price discrimination
D. Supply and Demand
21. Joint ventures may not overcome this problem
A. Amount of resources
B. Legal requirements
C. Social requirements
D. Control
22. This market entry strategy should be used when a company faces high tariffs but does not
want to lose control of its operations
A. Management contract
B. Manufacturing
C. Joint venture
D. Licensing
Theme 2 Human Resource and Organizational Behavior
1. Which one of the following is wrong about Employee Referrals recruitment method?
A. Reduce unrealistic applicant expectation
B. It increases the organization desire to add diversity in work place
C. It increases job survival
D. Is good source of recruitment to locate potential employee to those hard to fill positions.
2. Which one of the following is true about external recruitment?
A. New insight and perspective employee can be brought to the organization
B. New employees will have shorter adjustment or orientation time
C. The organization has better knowledge about the strength and weakness of the candidate
D. Employees will see that competency is rewarded and performance will be enhanced.
3. One of the following performance appraisal methods requires that written records be kept of
highly favorable and unfavorable work actions.
A. Ranking method
B. Critical incident method
C. Essay method
D. Work standards method
4. Human resource managers are
responsible agent in settling employee discontent and grievance. Hence, which one of the
following is not considered as factors for employee grievance at organizational level?
A. Violation of organizational rules and
practices
 B. Irrational management policy
C. Improper working condition
D. Conducive working environment
5. A compensation system in which a firm determines the relative value of one job in relation to
another is
A. Job evaluation
B. Job analysis
C. Job design
D. Job rotation
6. Internal Recruitment has the following Advantages except
A. Creates homogeneous workforce
B. Less expensive to recruit internally,
C. Provides better opportunity for employee to assess their abilities
D. Improves morale and organizational loyalty
7. Unresolved employee dissatisfaction will give rise to the following conditions except:
A. Employee frustration
B. Reduce employee absenteeism
C. Deteriorating interpersonal relationships
D. Low employee morale
8. Which one of the following is not true about training?
A. Training has short term perspective
B. Training shapes attitude
C. Training is job centered
D. Training increases job skill
9. Which one of the following does not explain what an organizational behavior is?
A. It investigates the impact of the external factors on the organizational performance
B. It investigates the impact that individuals, groups and structure have on behavior within
an organization
C. Its purpose is to understand behavior and its determinants in improving organization’s
effectiveness.
D. It is a systematic study which provides a means to predict behavior.
10. What are the three level of focus of Organizational behavior?
A. Individual, Organization, Society
B. Society, Organization, Nation
C. Employee, Employer, Management
D. Individual, Groups, Organization.
11. From the early theory of motivation, which one assumes that individuals cannot move to the
next higher level until all needs at the lower level are satisfied?
A. Abraham Maslow’s hierarchy of needs
B. Herzberg’s two factor theory
 C. David McClelland’s theory of needs
D. Douglas Mac. Gregory’s theory ‘X’ and ‘Y’ Manager
12. Flexible benefits are recommended most strongly by __________ Theory.
A. Contingency theory of motivation
B. Expectancy theory of motivation
C. Equity theory of motivation
D. Goal setting theory of motivation
13. The field of OB draws on multiple disciplines and analyzes behavior at multiple levels
including the individual, group, and system level. Of the following disciplines, which
contributes LEAST to our understanding of macro-level (i.e., group or organizational-level)
behavior?
A. Anthropology
B. Sociology
C. Psychology
D. Social psychology
14. One of your friends is quite fatalistic, believing that most of the ‘good things in life’ are
granted to us by forces beyond our understanding. You, however, believe you can strongly
influence your own destiny. This difference in beliefs is largely explained by differences in:
A. Locus of control
B. Emotional intelligence
C. Self-monitoring
D. Extraversion/introversion
15. The Twisters are an in-house design team in an engineering firm. Right before they are to
make a decision, the leader turns to one particularly quiet team member and says, “Bill, we
haven’t heard your opinion. What do you think?” What is the best way to describe what the
team leader is doing here with Bill?
A. Harmonizing
B. Encouraging
C. Compromising
D. Gatekeeping

16. What type of conflict refers to when there are two or more opposing incompatible demands
that arise and priority differences affect the resolution of the conflict?
A. Interpersonal conflict
B. Organizational conflict
C. Intrapersonal conflict
D. None of Above
17. What makes you think is the most effective leadership style that can be used during
emergency situations?
A. Democratic
B. Laissez- faire
 C. Autocratic
D. Supportive
18. Which one of the following does the Theory of Y assume?
A. People are poorly motivated
B. People achieve little satisfaction from work
C. People are self-motivated
D. People are committed to organizational activities
19. Managers are paid to get things done (they are subordinates too), often within tight
constraints of time and money. This shows, one of the following characteristics of a
manager?
A. Work focus
B. Seek-comfort
C. Authoritarian
D. Transactional
20. As per leadership grid Theory the country club style characterized as a_______
A. High concern for production and a low concern for people
B. High concern for people and a low concern for production
C. Balance between workers' needs and the organization's productivity
D. High concern for both people and productivity
21. Successful leaders must be able to identify clues in an environment and adapt their leader
behavior to meet the needs of their followers and of the particular situation. This is the
central idea of _____________
A. Behavioral Theory
B. Great man Theory
C. Contingency Theory
D. Situational Theory
Theme 3 Innovation, Strategy and Project Management
1. A growth strategy that involves seeking products or businesses that are technologically
compatible with one’s existing product or business is known as:
A. Horizontal Diversification
B. Synergetic Diversification
C. Conglomerate Diversification
D. Vertical Diversification
2. In which form of entrepreneurship does the entrepreneur identifies the potential needs of
customer and tailors a product/services to meet the marketing need?
A. Trade Entrepreneur
B. Business Entrepreneur
C. Corporate Entrepreneur
D. Industrial Entrepreneur
3. Identify the wrong statement about a business plan.
 A. It specify sales strategy
B. It describes operation strategy of the proposed venture
C. It describes how to manipulate people in a dishonest way
D. It presents the approach that the entrepreneur plans to undertake to exploit the
opportunity
4. A strategy that attempts to gain control of the distribution system for your product is known
as:
A. Forward Integration
B. Backward Integration
C. Diversification
D. Upward Integration
5. Adding a new and related products or services for present customers refers to:
A. New market development
B. Conglomerate diversification
C. Divestiture Diversification
D. Product development
6. The creation of a new product, service or process, often one that is novel or untried is
A. Extension
B. Duplication
C. Invention
D. Synthesis
7. The technology ethics principles that require technology must be implemented so as to avoid
all unnecessary risk is
A. Proportionality
B. Informed consent
C. Justice
D. Minimized risk
8. Knowledge transfer strategy/approach/ that involves individual making knowledge requests
of experts associated with a particular subject on an ad-hoc basis is
A. Codification approach
B. Personalization approach
C. Reward approach
D. Storytelling approach
9. With Internet access proliferating rapidly, the biggest and number one obstacle to e-
commerce is:
A. Bandwidth
B. Security
C. Interoperability
D. Impenetrability
10. In the history of evolution of information system, the period between 1960s – 1970s saw:
 A. TPS
B. MIS
C. DSS
D. E-commerce
11. SWOT analysis is a tool used in which step of the strategic management process?
A. Formulation
B. Implementation
C. Evaluation
D. None of the above
12. Which of the following is a drawback of the BCG matrix?
A. It does not take into account external factors
B. It is difficult to use
C. It does not provide clear guidance for strategy formulation
D. It does not consider market growth rates
13. Which model of strategic management suggests that a company should choose its business
strategy based on its competitive position and the market environment?
A. SWOT analysis
B. Porter's Five Forces
C. BCG matrix
D. Balanced scorecard
14. Which of the following is a stability strategy?
A. Market development
B. Cost leadership
C. Maintaining the status quo
D. Differentiation
15. Which of the following is/are strategic formulation activities?
A. Taking corrective measures
B. Developing supportive structures
C. Conducting SWOT analysis
D. None
16. Which general environment factors requires studying saving and investment, inflation,
income of the citizens, forex etc, before joining the business?
A. Demographic
B. Economical
C. Social
D. Political
17. During an assessment of economic viability of a project, the ration of average annual
earnings after tax to the average book investment after depreciation is called
A. Benefit-Cost Ratio (BCR)
B. Net Present Value (NPV)

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 C. Pay-Back Period
D. Return on investment (ROI)
18. Which of the following is not considered as a risk in projects management?
A. Specification Delays
B. Product Competition
C. Testing
D. Staff Turnover
19. Among the following, one is the characteristics of Project Mindset
A. Time, Responsiveness, Information sharing, Process, structured planning
B. Time, Project management, information sharing, Process, structured planning
C. Time, Responsiveness, Information sharing, capability, structured planning
D. Time, Responsiveness, Information sharing, Process, project planning
20. The project life cycle consists of
A. Understanding the scope of the project
B. Objectives of the project
C. Formulation and planning various activities
D. All of the above
21. A program is usually a group of
A. Plans
B. People and work
C. Related projects
D. Unrelated projects
22. Which of the following statement(s) is/are not true?
A. Projects have defined objectives
B. Programs have a large scope than projects
C. The projects and programs in a portfolio must be directly related
D. Projects have a defined time period

Theme 4 Managerial Statistics and Business Research

1. __________research seeks to investigate an area that has been under-researched with
preliminary data that helps shape the direction for future research.
A. Descriptive
B. Exploratory
C. Explanatory
D. Positivist
2. The first step in selecting a sample should be to:
A. Define the population
B. Decide how to stratify the population
C. Compile a list of the population
D. Determine how to randomize

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3. Mixed-research method refers to the use of both:
A. Experimental and correlation methods
B. Quantitative and qualitative methods
C. Description and intervention
D. Group and single subject designs
4. Causal research is used to ________.
A. Test hypotheses about cause-and-effect relationships
B. Gather preliminary information that will help define problems
C. Find information at the outset in an unstructured way
D. Quantify observations that produce insights unobtainable through other forms of
research
5. The primary objective of _____ is to provide insights into, and an understanding of, the
problem confronting the researcher.
A. Exploratory research
B. Conclusive research
C. Causal research
D. Descriptive research
6. Descriptive research is conducted for all of the following reasons except:
A. To describe the characteristics of relevant groups, such as consumers, salespeople…
B. To determine the degree to which marketing variables are associated
C. To understand which variables are the cause and which variables are the effect of a
phenomenon
D. To determine the perceptions of product characteristics
7. Sampling technique is used under the following conditions except.
A. When the number of units is very large
B. When there is finite population
C. When there is infinite population
D. When census is impossible
8. Which of the following is not the goal of descriptive statistics?
A. Summarizing data
B. Displaying aspects of the collected data
C. Reporting numerical findings
D. Estimating characteristics of the population
9. Which of the following type of measure of tendency is affected by an outlier/extreme value
in the data set?
A. Mode
B. Median
C. Mean
D. Variance
10. Consider these three variables; your blood types, your marital status and time to complete

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 this exam. In the order given, the scale of these variables is:
A. Nominal, ordinal, ratio
B. Nominal, interval, ratio
C. Interval, interval, ratio
D. Nominal, nominal, ratio
11. In which one of the following probability distribution, there are only two possible outcomes
for each experiment/trials?
A. The Binomial probability Distribution
B. The Poisson Probability Distribution
C. The Normal Probability Distribution
D. The Multinomial Distribution
12. In hypothesis testing, if the sample size is large and the population is assumed normal, then
the test statistics used is:
A. t-test
B. x2-test
C. Z-test
D. None
13. ___________is a single number that is used to estimate an unknown population parameter.
A. Point estimate
B. Standard estimate
C. Interval estimate
D. Normal estimate
14. An experiment involves selecting a random sample of 256 middle managers for study. One
item of interest is annual income. The sample mean is computed to be $45,420, and the
sample standard deviation is $2, 050. What is the 95 percent confidence interval (rounded to
the nearest $10)?
A. ($45, 170; $45,670)
B. ($46, 168; $ 47, 668)
C. ($45, 000;$46, 000)
D. ($46, 000;$47,000)
15. The type of correlation in which the amount of variation in variable x bears a constant ration
to the corresponding amount of variable y is known as
A. Positive correlation
B. No correlation
C. Negative correlation
D. Liner correlation
Theme 5 Management Science and Financial Management

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1. Which of the following is not an input to aggregate planning?
A. Beginning inventory
B. Forecasts for each period of the schedule
C. Customer orders
D. Quantity discounts
2. Which of the following is not a basic option for altering the availability of capacity in a service
environment?
A. Overtime
B. Hiring/layoff
C. Shifting
D. Inventory
3. Product design and choice of location are examples of _______ decisions.
A. Strategic
B. Tactical
C. Operational
D. Customer focused design
4. In an assembly operation at a furniture factory, six employees assembled an average of 450
standard dining chairs per 5-day week. What is the labor productivity of this operation?
A. 90 chairs/worker/day
B. 20 chairs/worker/day
C. 15 chairs/worker/day
D. 75 chairs/worker/day
5. Location decisions entail determining the placement of departments, work groups within the
departments, workstations, machines, and stock-holding points within a production facility is
A. Job design
B. Facility layout
C. Vertical integration
D. Horizontal integration
6. A planning approach that produces the same quantity each time period and Inventory/ back orders
are used to absorb demand fluctuations refers to:
A. Aggregate plan
B. Marketing plan
C. Level aggregate plan
D. Chase aggregate plan
7. From the following given alternatives one is not advised as a capacity based supply options from
business point of view.
A. Over time/under time
B. Subcontracting
C. Hiring and firing
D. Backorders
8. Reducing number of parts, assemblies, or options in a product and using commonly available and
interchangeable parts refers:

GOOD LUCK!
 A. Simplification and Standardization respectively
B. Modular Design and Simplification respectively
C. Design for Manufacture (DFM)
D. Modular Design and Design for Manufacture (DFM) respectively
9. The primary goal of the financial management is
A. To maximize the return
B. To minimize the risk
C. To maximize the wealth of owners
D. To maximize profit
10. Capital budgeting is related to
A. Long term assets
B. Short term assets
C. Long term and short term assets
D. Fixed assets
11. The debt-equity ratio of a company is ____________
A. Measures its financial leverage
B. Does not affect the earnings per share
C. Affects the dividends decision of the company
D. None of the above
12. Which of the following statement is true if the Net Present Value (NPV) is positive
A. The IRR must be greater than 0
B. The discount rate exceeds the cost of capital
C. The profitability index equals 1
D. Accepting the project has an indeterminate effects on shareholders
13. The risk that arises due to change in the purchasing power is called?
A. Financial Risk
B. Interest rate risk
C. Business risk
D. Inflation risk
14. Constraints in an LP model represents
A. Limitations
B. Requirements
C. Balancing limitations and requirements
D. All of the above
15. One of the following is not the distinguishing feature of an LP models
A. Relationship among all variables is linear
B. It has single objective and constraints
C. Value of decision variables is nonnegative
D. Divisibility
16. A variable which does not appear in the basic variable column of simplex table is?
A. Never equal to zero
B. Always equal to zero

GOOD LUCK!
 C. Called a basic variable
D. None
17. The dual of a dual is?
A. A primal
B. A dual
C. Both A and B
D. None
18. Linear programing problems with more than two variables can be solved by
A. Simplex Method
B. Matrix Minima Method
C. Graphical Method
D. Cannot be solved at all
19. If for a given solution, a slack variable is equal to zero, then
A. The solution is optimal
B. There exist no solution
C. The solution is infeasible
D. None of the above
20. In the optimal simplex table cj-zj =0 value indicates
A. Unbounded solution
B. Alternative solution
C. Cycling
D. None of the above

GOOD LUCK!
 Admas University
Faculty of Business
Department of Business Management
Model Exit Exam
Answer Sheet
Sene, 2015
Time allotted: 3:00 hrs

Name _________________________
ID.No._________________________
Section _________________

Answer Sheet
Fundamentals of Management and Marketing
1. B 2. C 3. C 4. A 5. C 6. B
7. B 8. A 9. C 10. C 11. D 12. A
13. D 14. C 15. A 16. C 17. B 18. A
19. C 20. C 21. C 22. D
Human Resource and Organizational Behavior
1. B 2. A 3. B 4. D 5. A 6. A
7. B 8. B 9. A 10. D 11. A 12. B
13. C 14. A 15. D 16. A 17. C 18. A
19. A 20. B 21. D
Innovation, Strategy and Project Management
1. B 2. D 3. C 4. A 5. D 6. C
7. D 8. B 9. B 10. B 11. A 12. C
13. B 14. C 15. C 16. B 17. D 18. C
19. A 20. D 21. C 22. C
Managerial Statistics and Business Research
1. D 2. A 3. B 4. A 5. D 6. C
7. B 8. D 9. C 10. A 11. A 12. C
13. A 14. A 15. A
Management Science and Financial Management
1. D 2. D 3. A 4. C 5. B 6. C
7. D 8. A 9. C 10. D 11. A 12. A
13. D 14. D 15. B 16. B 17. A 18. A
19. A 20. B

GOOD LUCK!