Business Administration Paper – 2000

(1) Public Accountants generally perform these services:

(a) Income tax services, Management Advisory services, and independent auditing
services
(b) Internal auditing, Income tax services and management controlling.
(c) Public accounting, private accounting and budgeting.
(d) None of the above is correct.

(2) Identify the organization created by Congress to regulate security markets including
flow of information from companies to public:

(a) TVM
(b) NPV
(c) IRR
(d) SEC

(3) Select the term that describes a cash distribution to a Corporation’s Stockholders:

(a) Paid out Capital (b) Cash Management

(c) A dividend
(d) None of these
(e) All of the above are correct

(4) Frederick Winslow Taylor work/book entitled the principles of Scientific Management is
published, in:
(a) 1875
(b) 1901
(c) 1911
(d) None of these

(5) One of the most successful Industrialists and the father of Modern Personnel
Management is:

(a) F.W. Taylor

(b) James Watt
(c) C. Babbage
(d) Robert Owen

(6) Who has the major Contributions in the Theory of Bureaucracy:

(a) Henry Gantt
(b) Hanri Fayal
(c) W.D. Scatt
(d) Max Weber
(e) None of these
(7) Which one, of the following MNCs (Multinational Co.) has the higher revenues during
mid. 1990s:

(a) General Motor

(b) IBM (c) AT &T
(d) General Electric
(e) None of the above

(8) Give the, name of the author who has the major contributions in the field of marketing:

(a) H. Koontz
(b) W.J. Stanton
(c) P.B. Miller
(d) Gitt Man
(e) All of these

(9) The profit margin is a ratio between the corporation’s net income and:
(a) Total expense (b) Total assets (c) Cost
(d) Total revenues (e) None of the above

(10) MNCs are responsible for the majority of Foreign Direct Investment (FDIs) and have a
higher revenues than the national income of some of the countries they serve:

(a) Fully agreed

(b) Not agreed
(c) It is not possible
(d) None of these

(11) Earned but uncollected revenues, that are recording the adjusted process, recorded
with a credit to the revenues and debit to the expense is called:

(a) Adjusted Trail balance

(b) Expenses
(c) Accrued revenues
(d) None of these

(12) Which one of the following is not a part/variable of the marketing Mix (4Ps):

(a) Product
(b) Price
(c) Place
(d) Person
(e) None of these

(13) The major steps in the accounting cycle are the following:
(a) The procedure used in worksheet
(b) Begin with Trail Balance
(c) Completed only once in business life
(d) None of the above
(e) All of these

(14) Which of the following items is not unique to the financial statements of merchandising
Companies?

(a) Cost of good sold

(b) Gross profit
(c) Account receivable
(d) Net sales
(e) All of the above
(f) None

(15) The repairs made to keep a plant/asset in normal and good operating condition are
called:

(a) Plant Management

(b) Operation Management
(c) Ordinary repairs

(16) A company that owns more than 50’s of another company and controls that
corporation is known as:

(a) Subsidizing
(b) Consolidated CO.
(c) None of these

(17) The process of individual growth in the full utilization of a person’s managerial
capabilities is called management development:

(a) True
(b) False

(18) Promotion is not a part of marketing:

(a) Agreed
(b) Not agreed
(c) None of these

(19) A way of analyzing leadership style where leaders are classified on a grid with TWO
dimensions is called:
(a) Managerial grid
(b) Two way theory
(c) None

(20) Robert Owen is known as the Father of Modern Personnel Management:

(a) Yes
(b) No
(c) May be Taylor

Business Administration Paper – 2001

(1)Most preferred stock pays a fixed dividend at regular intervals.

(a) True
(b) False

(2) Any increase in an asset item is a source of funds.

(a) True
(b) False

(3) Depreciation is a book-keeping entry that allocates the cost of assets against income but
does not involve any movement of capital.

(a) True
(b) False

(4) The maturity of a security relates to the owner’s ability to convert it into cash on short
notice:

(a) True
(b) False

(5) The credit period represents the period of time during which a cash discount can be
taken on short notice.

(a) True
(b) False

(6) Which ratio is computed with the help of the following?

Cost of goods sold/Inventory

(a) Receivable turnover

(b) Times interest earned
(c) Inventory Turnover
(d) None of these

(7) ________ is the right that is delegated to an individual or a department to control

specific processes, practices, policies and other matters relating to activities undertaken by
person in other departments.

(a) Line authority

(b) Functional Authority
(c) Line and Staff Authority
(d) None of these (delegated authority)

(8) Decentralization is the tendency to disperse decision making in an organized structure:

(a) True
(b) False

(9) Programmes are plans which are general statements or understandings that guide or
channel thinking in decision making:

(a) True
(b) False

(10) _______ is that part of managing that involves establishing an international structure
of roles for people to fill in an organization:

(a) Leading
(b) Controlling
(c) Planning
(d) None of these (staffing)

(11) Henri Fayol applied the principle of ‘Division of Work’ to all kinds of work, managerial
as well as technical.

(a) True
(b) False

(12) ________ spell out specific required actions or non-actions, allowing no discretion:

(a) Procedures
(b) Budgets
(c) Rules
(d) None of these

(13) Business buyers are as geographically dispersed as final consumers.

(a) True
(b) False

(14) The distribution between a consumer good and an industrial good is based on the
purpose for which product is purchased:

(a) True
(b) False

(15) Intensive distribution occurs when the product is stocked in as many outlets as
possible.

(a) True
(b) False

(16) Merchant wholesalers are independently owned business that do not own (take title to)
the goods they sell:

(a) True
(b) False (merchant wholesalers take legal ownership of the goods they sell)

(17) Which of the following elements in a compensation package provides the greatest
amount of incentive for salespersons?

(a) Salary
(b) Fringe Benefits
(c) Commissions
(d) Use of Company Vehicle

(18) The process whereby the seller distinguishes between market segments, selects one or
more of these segments, and develops products and marketing-mixes tailored to each
segment is called _______ marketing.

(a) Mass
(b) Target
(c) Product Variety
(d) Service

(19) Goods that the consumer, in the process of selection and purchase, characteristically
compares on such bases as suitability, quality, price and style are called _______ goods.

(a) Shopping
(b) Specialty
(c) Unsought
(d) Convenience

(20) Product ______ is a period of rapid market acceptance and increasing profits.
(a) Development
(b) Introduction
(c) Growth
(d) Maturity

Business Administration Paper – 2003

Write only “True” or “False” in the Answer Book. Do not reproduce the questions.

(1)Business risk is influenced by the firm’s decision to use debt in its financial
structure. False

(2) The most important function of management is controlling. False

(3) A short term creditor would consider liquidity ratios to be more important than efficiency
ratios. True

(4) According to Maslow, when a need is satisfied, it tends to lose its ability to
motivate. True

(5) The term marketing mix refers to the degree of advertising Vs personal selling used to
market product. False

(6) The difference between an agent and a merchant wholesaler is that an agent always
takes title but a merchant wholesaler does not. False

(7) The management of working capital is required because of a lack of short term
synchronization between demand and supply. True

(8) A manager who believes that people inherently dislike work probably accepts McGregor’s
Theory X. True

(9) Inventory carrying costs can be minimized by carrying fewer units in inventory. True

(10) A balance sheet is an accounting report used solely for the corporate form of
business. False

(B) Write only correct answer in the Answer Book. Do not reproduce the questions.

(11) For management, budgeting is perhaps the most powerful_____.

(a) Forecasting tool

(b) Control device
(c) Hiring tool
(d) Accounting measure

(12) The income statement is a summary of:

(a) Revenue and expenses

(b) Assets, liabilities and capital
(c) Increases and decreases in capital
(d) None of these

(13) One benefit of using ratio analysis when interpreting financial statements is that:

(a) Ratios facilitate comparisons between different companies.

(b) All ratios have exact standard values with which performance can be compared.
(c) Ratios take into account all the specific factors affecting particular companies and
industries.
(d) None of these

(14) Planting and policy making are primarily functions of:

(a) Top management

(b) Middle management
(c) Operating management
(d) None of these

(15) An informal organization often exists within a business because:

(a) Not all relationships can be specifically defined.

(b) Small organizations do not necessarily emphasize strict adherence to line authority.
(c) Human behavior naturally crosses established authority lines.
(d) All of these

(16) In marketing, selling and buying would be called the:

(a) Primary functions

(b) Exchange functions
(c) Profit functions
(d) Critical functions (not confirmed)

(17) Institutional advertising is:

(a) Aimed only at people in institutions

(b) Run only by institutions
(c) Designed to promote a type of product rather than a particular brand.
(d) Designed simply to show that the firm is a good place to do business.
(18) The current ratio of a firm having Rs. 25,000 of current assets, Rs. 30,000 of fixed
assets, Rs. 5000 of current liabilities and Rs. 10,000 of fixed liabilities would be:

(a) 5:1
(b) 7:1
(c) 10:1
(d) None of these

(19) The organizational form that replaces individual authority at all levels with group
representation is:

(a) Line
(b) Line and staff
(c) Functional
(d) Committee

(20) Working Capital may be expressed as:

(a) Current assets minus current liabilities

(b) Current and fixed assets minus current and fixed liabilities
(c) Current assets over current liabilities
(d) Current and fixed assets over current and fixed liabilities