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SAMPLE QUESTION PAPER - 01

(2023-24)
BUSINESS STUDIES (THEORY)

MBA WT (ANALYTICAL WRITING

TEST) AT IIM

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SAMPLE QUESTION PAPER - 01 (2023-24)

BUSINESS STUDIES (THEORY)

Maximum Marks: 80 Time: 3 hours

General instructions:
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together.

1. Digital Pvt. Ltd. is a mobile manufacturing company. 5. Which of the following is related to the finance and
The manager of the company observed that the accounting standard?
market is dynamic and a lot of changes were taking (a) Sale expenses (b) Capital expenditure
place in the mobile market and hence, the risk of the (c) Labour turnover (d) Quantity
product becoming obsolete is high. The designs of the
6. Identify the principle of management followed in the
phones are governed by requirements and
following pictorial representation.
preferences of the customers. He started
incorporating new and advanced features taking clue
from the consumers and with thehelp of his workers.
Identify the characteristic of management highlighted
in this case.
(a) Management is a dynamic function
(b) Management is multi-dimensional
(c) Management is a goal-oriented process
(a) Initiative (b) Division of Work
(d) Management is a group activity
(c) Equity (d) Remuneration
2. Maturity period to call money is:
7. Identify the participant of primary market from the
(a) 1 to 30 days (b) 1 to 15 days
following .
(c) 15 to 1 years (d) 15 to 90 days
(a) All of these (b) Mutual funds
3. In which step of planning process pros and cons of (c) Individuals (d) All of these
each alternative is examined?
8. Balwant Singh, Chairman of Puneet group of
i. Selecting an alternative
companies founded JNU University for
ii. Developing Premises
undergraduate and postgraduate courses in diverse
iii. Evaluating alternative courses disciplines. The Information Technology department
iv. Setting Objectives of the Puneet Power Ltd.,had few vacancies related to
(a) ii and iii (b) only iii Cyber security. The Human Resource Department of
(c) only iv (d) i and ii the Company decided to recruit fresh engineering
4. The overall financial risk depends upon the: graduates from JNU University for the same. The
(a) Proportion of equity in the total capital total source of recruitment is .
capital (a) Direct recruitment
(b) Proportion of both debt and equity in the (b) Advertisement
(c) None of these (c) Campus Recruitment
(d) Proportion of debt in the total capital (d) Employment exchange

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9. Which amount of the following statements is true?
(i) Higher competition requires larger stocks to
meet urgent orders from customers which
results intorequirement of more working
capital.
(ii) The companies having growth prospects require
lesser amount of working capital.
(iii) If the rate of inflation is high, an organisation is
required to invest less in working capital.
(iv) All of the above
(a) Option (iv) (b) Option (i)
(c) Option (iii) (d) Option (ii)
10. Assertion (A): Decentralisation is extending
delegation to the lowest level.
Reason (R): Decision making authority is shared
with lower levels and is consequently placed nearest
to thepoints of action.
(a) Both A and R are true and R is the correct
explanation of A.
(b) Both A and R are true but R is not the correct
explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
11. Which of the following is not a money market
instrument?
(a) Preference share (b) Call money
(c) Commercial Share (d) Treasury Bill
12. The statement of Profit and Loss of Arun Ltd. shows
huge profits but the company is short on cash. So, it
can pay less dividend. The factor affecting dividend
decision highlighted here is .
(a) Amount of earning (b) Cash flow position
(c) Stability of dividend (d) Stability of earning
13. Statement I: Under the Consumer Protection Act
2019, a consumer also includes any user of goods if
such useis made with the approval of the buyer.
Statement II: Any person who obtains goods or avails
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services for resale or commercial purpose is
nottreated asa consumer and is outside the scope of
Consumer Protection Act 2019.
(a) Both the Statements I and II are not correct.
(b) Statement II is correct and Statement I is not
correct.
(c) Both the Statements I and II are correct.
(d) Statement I is correct and Statement II is not
correct.
14. Pawan decided to start a chocolates manufacturing
business. He set the target of earning 10% profit on
sales in the first year. As a good businessman, he was
concerned about the future of the business, which
was uncertain. He gathered information that the
demand for chocolates is increasing day-by-day. He
used this information as the base for future planning
and shared it with his team. On the basis of the
gathered information, he scheduled ameeting in the
following week to find innovative ways to achieve the
objectives. List the first two steps, which have been
followed by Pawan that are related to the process of
one of the functions of management.
(A) Setting Objectives
(B) Developing Premises
(C) Identifying alternative courses of action
(D) Evaluating alternative courses
(a) C and D (b) B and C
(c) A and B (d) A and D
15. A firm borrows @ 12% and the tax rate is 25%. The
after-tax cost of debt is .
(a) 12% (b) 25%
(c) 15% (d) 9%
16. Statement I: The focus of the marketing concept is on
customer needs and the customer satisfaction
becomesthe means to achieving the firms’ objective of
maximising profit.
Statement II: The purpose of marketing is to
generate customer value at a profit.
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(a) Statement II is correct and Statement I is not (a) (a) - (ii), (b) - (i), (c) - (iii)
correct. (b) (a) - (iii), (b) - (ii), (c) - (i)
(b) Both the Statements I and II are correct. (c) (a) - (i), (b) - (ii), (c) - (iii)
(c) Both the Statements I and II are not correct. (d) (a) - (i), (b) - (iii), (c) - (ii)
(d) Statement I is correct and Statement II is not
19. _____ ___ is a major determinant of the decision about
correct.
dividend.
17. It is not always true that just because a plan has (a) Amount of earnings (b) Stability of earnings
worked before it will work again. Besides, there are (c) Cash flow positions (d) Stability of dividends
so many other unknown factors to be considered. This
20. Which function of management is controlling?
kind of complacency and false sense of security may
(a) Second (b) Last
actually lead to failure of planning. Identify the
(c) Third (d) First
limitation of planning highlighted above.
(a) Planning involves huge costs 21. A floor manager of a mall is a very good manager as
(b) Planning leads to rigidity he utilizes all the functions of management to
(c) Planning may not work in a dynamicenvironment minimizecost of maintenance of his area. He directs
(d) Planning does not guarantee success all the staff members under him to follow the targets
and advises them to put their efforts in the direction
18. Match the levels of management in Column I with of achievement of these targets. Under his guidance
their function in Column II: the employees admitthat they learn a lot and are able
Column I Column II to meet their targets. This has led to the increase in
(a) Top (i) They directly oversee their salaries.
Management the efforts of the Identify the importance of management highlighted
workforce. above.
(b) Middle (ii) They cooperate with
Management other departments for 22. Mention any two measures to improve
smooth functioning of communication effectiveness.
the organisation. OR
(c) Supervisory (iii) They are responsible for Give any three elements of directing.
or all the activities of the
Operational business and for its
impact on society.
23. Wooden Peripheral Pvt. Ltd. is counted among the top furniture companies in Delhi. It is known for offering
innovative designs and high-quality furniture at affordable prices. The company deals in a wide product range of
home and office furniture through its eight showrooms in Delhi. The company is now planning to open five new
showrooms each in Mumbai and Bangalore. In Bangalore, it intends to take the space for the showrooms on lease
whereas, for opening showrooms in Mumbai, it has collaborated with a popular home furnishing brand, 'Creations.'
a. Identify the factors mentioned in the paragraph which are likely to affect the fixed capital requirements of the
business for opening new showrooms both in Bangalore and Mumbai separately.
b. "With an increase in the investment in fixed assets, there is a commensurate increase in the working capital
requirement." Explain the statement with reference to the case above.
OR
24. Chhavi purchased a medicine. She did not read
What do you mean by planning premises?
carefully the instructions on the pack of the medicine.
On usingit her health deteriorated further instead of 26. Controlling is a systematic process involving a series
improvement. She did not obtain a cash memo from of steps. Explain.
the medical store. What options are available to OR
Chhavi under Consumer Protection Act? Analysing deviations and taking corrective
OR actions are the steps in the process of one of the
What are the responsibilities of a consumer? significant functions of management. Identify the
function and list the first three steps of the process of
25. Planning is required at all levels of management.
the function identified.
Mention the feature of planning mentioned here and
justify itby using an example.

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27. Scientific Management means knowing exactly what you want men to do and seeing that they do it in the best and
the cheapest way/Taylor developed various techniques for application of Scientific Management principlesand was
able to achieve a three-fold increase in productivity in Bethlehem Steel Company, where he worked.
One of the techniques helps to determine the number of workers to be employed; frame suitable incentive schemes
and labour costs. Another technique recognises those workers who are able to accomplish/exceed thefair day's work
and is based on the premise that efficiency is the result of the joint efforts of the managers andthe workers.
Quoting the lines from the above paragraph, identify and explain the two techniques of Scientific Management.

28. Explain assumptions of Maslow’s need hierachy OR

theory.
29. State any one ‘Protective Function’ of Securities and
Exchange Board of India (SEBI).
30. State any five remedies available to a consumer under
the provisions of The Consumer Protection Act, 2019.
31. Mr Naresh recently completed his MBA from one of
the Indian Institutes of Management in Human
Resource Management. He has been appointed as
Human Resource Manager in a Truck, Manufacturing
Company. Thecompany has 1,500 employees and has
an expansion plan in hand that may require additional
500 persons for various types of jobs. Mr Naresh has
been given the complete charge of the company’s
Human Resource Department.
List out the specialised activities that Mr Naresh is
supposed to perform as the Human Resource
Manager of thecompany.
OR
Brief the different methods of training.
33. "Organising considered an important function of
32. What are the essential features of:
a. Liberalisation,
b. Privatization and
c. Globalisation?
With rapid advancements in the field of replacing
manual work with machines, a Robot named Sujan
has been invented and developed and is likely to
get the citizenship of the country of its origin.
It has led to a stage where machines are being used
in place of human beings. Sujan is doing all types
of work whether routine or hazardous and even
answering the queries of people. However, this
issue has to be carefullylooked into keeping in
mind the consumer attitude towards product
innovations, problem of unemployment and its
impact on the quality of life. Through the orders
and decisions of various commissions and agencies
at Centre, State or Local level the Indian
Government is playing a very significant role in
balancing the use of human and machine power.
Various dimensions of business environment are
being discussed in the above para.
By quoting the lines from the above identify and
explain any three dimensions.
management". Explain briefly.

34. Nischay, after completing his masters in computer engineering decided to start his own business. He visited his uncle
Mr.Jaiprakash who has been running a successful business in web designing. He shared with Nischay thatthe main
reason for his success in the business lies in his approach to building a lifetime relationship with his clients.
Therefore, his business is not only restricted to designing web sites according to the specifications of theclients but
also providing continuous online assistance to them and handling their grievances effectively and doing all this at a
profit. He provides these services at competitive prices. Anybody interested in getting web solutions can contact him
through his website. Moreover, whenever the market is sluggish he tries to createdemand by offering short-term
incentives to the buyers.
In the context of the above case:
a. Define the term 'Marketing Management'.
b. Briefly explain the various elements of the marketing mix being pursued by Mr. Jaiprakash by quoting linesfrom
the para.

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