Professional Documents
Culture Documents
Section –A (Answer all questions) 20 x 1=20
1. An investor will expect higher return from an investment if risk is high. (True/False)
2. In financial decisions it is the present value concepts which are relevant. (True/False)
3. According to the original MM Approach, the value of firm is affected by the debt equity mix.
(True/False)
4. Internal rate of return determine the maximum rate of interest that a firm can afford to pay on the
borrowing for a project. (True/False)
5. Retained earnings carry no cost to the firm. (True/False)
6. The operating cycle is longer in case of a trading firm than the manufacturing firm.(True/False)
7. If payment of dividend is expected to decrease the market value of the share, the dividend must
be paid otherwise profits must be retained. (True/False)
8. Shareholders generally prefer capital gain to current dividend. (True/False)
9. Inadequate amount of working capital will ensure solvency of the firm. (True/False)
10. The value of levered firm is higher than that of an unlevered firm on account of corporate tax.
(True/False)
11. Profit maximization ignores
a) Corporate tax b) Time value of money c) Efficient allocation of resources
d) Financial discipline in the organization
12. If you invest Rs 500 today @compound interest of 9%, what will be its future value after 50
years?
a)50000 b)31718 c)37178 d)37718
13. A project costs Rs. 350000 and will yield returns of approximately Rs. 60000 every year. What is
its payback period?
a)4 years b) 5years c) 5 years and 7 months d) 5 years and 10 months
14. Financial leverage measures
a) Financial risk b) business risk c) both d) none of these
15. If a company declares a constant dividend of Rs.20 and its shares are currently selling at a price
of Rs.200, the cost of equity is:
a) 20% b) 40% c) 30% d) 10%
16. Working capital decision is directly affected by all of the following factors except:
a) Operating cycle b) Credit policy c) Market Demand d) Capital structure
17. Given, Selling price per unit – Rs.120, variable cost per unit – Rs. 70, Fixed cost – Rs.200000,
what is operating leverage for 6000 units of production?
a) 4 b)3.5 c)4.5 d)3
18. The firm’s decision to invest its current funds most effectively in the long term assets in
anticipation of an expected flow of benefit over a series of years is known as
a) Capital budgeting decision b) Capital structure decision c) Working capital decision
d) Dividend decision
19. Under Walter’s model, when r > k, the optimum dividend policy is:
a) 0% dividend payout b) 50% dividend payout c) 100% dividend payout
d) 75% dividend payout
20. The formula for calculating accounting rate of return is:
a) Average accounting profit /average investment x 100
b) Average investment / average accounting profit x 100
c) Net cash inflows / net cash outflows
d) Average accounting profit / capital employed
Section ‐B (Answer any four) 4 x 5=20
21. “Financial management is indispensable in any organization.” Bring out its importance.
22. What is meant by inventory management? Why is it essential to a business concern?
23. What is cost of capital? Explain its significance?
24. Explain MM model of irrelevance of dividend?
25. Explain various factors that affect working capital management?
26. Give in brief various capital budgeting techniques.
Section‐C (Answer any four) 4 x 10=40
27. What is financial management? What are the prominent areas of financial management decision
making? Explain.
28. Give a critical appraisal of traditional approach and Modigliani-Miller’s approach to Capital
structure?
29. X Ltd has the following capital structure:
Equity shares (20000 shares) 4000000
10%Preference shares 1000000
14% Debentures 3000000
Total 8000000
The equity share of the company sells for Rs 20. It is expected that the company will pay a
dividend of Rs 2 per share which will grow at 7% forever. Assume a 50% tax rate.
a) Compute the weighted average cost of capital based on the existing capital structure.
b) Compute the new weighted average cost of capital if the company raises additional Rs.
2000000 debt by issue of 15% debentures. This would increase the expected dividend to
Rs 3 and leave the growth rate unchanged, but the price of share will fall to Rs 15 per
share.
30. A company has a share capital of Rs.200000 divided into shares of 10 each. It has major
expansion programme requiring an additional investment of Rs 100000.The management is
considering the following alternatives:
a) Issue of 10% debentures of Rs 100000
b) Issue of 10000, 15% preference shares of Rs 10 each
c) Issue of 10000 equity shares of 10 each
The company’s present level of EBIT is Rs.60000 per annum. Calculate EPS for the above three
alternatives and suggest which plan the company should select. Tax rate is 50%.
31. Given the following information about ABC Ltd, show the effect of dividend policy on the
market price per share at dividend-payout ratio of 0%, 60% and 100%, using Walter’s model?
Earnings per share is Rs.8. Cost of capital is 12%. Assumed rate of return is 15%.
32. The following data relates to two companies – A and B Ltd. The capital employed is:
Particulars Co. A Co. B
9% Debentures Nil Rs. 2,50,000
Equity share capital Rs. 500,000 Rs. 250,000
(@ Rs.10 per share)
EBIT Rs. 100,000 Rs. 100,000
Equity shareholders of A Co. find that despite same return earned by their company as that of
company B, their EPS is much less as compared to that of B Co. You are required to calculate the
financial leverage and EPS for the 2 companies and state reasons for higher EPS in case of Co. B
as compared to Co. A. Assume tax rate is 50%.
Section‐ D (Compulsory) 1 x 20=20
33. Elixir Corp. is considering two projects which require an investment of Rs.200,000 in each
project and a life of 4 years. Company requires a rate of return of 15%. The estimated net profits
before depreciation and tax of the two projects are as follows:
May 09 PGDM 302
New Horizon Leadership Institute
Ring Road, Panathur Post, Near Marathahalli
Bangalore-560 087
Approved by AICTE, ministry of HRD, Govt of India
An ISO 9001:2000 certified institute
III Trimester Examination – May 2009
Sub: Production and Operations Management
Sub Code: PGDM - 302
Duration: 3 Hours Total Marks:100
Section‐A (Answer all the Questions) 20x1=20
1. In a Manufacturing industry, the output is tangible [True / False]
2. Process Reengineering involves introducing negligible or very minor changes to Process design
[True / False]
3. The ratio of the Function to the Cost of a product is termed as its ‘Value’ [True / False]
4. High volume production with innovation is significant In the Maturity phase of product lifecycle
[True / False]
5. The amount of production and distribution chain brought under the ownership of a company is called
‘Vertical Integration’ [True / False]
6. The extent of flexibility is very high in a Process layout [True / False]
7. PDCA cycle means Plan-Do-Check-Act cycle [True / False]
8. Cellular Manufacturing makes it easier for people and machines to work together efficiently
[True / False]
9. Productivity and Production have the same meaning [True / False]
10. Time Study is a technique for work measurement [True / False]
11. Operations Management is the business function involving transformation of inputs into
a) Goods and services of lower value b) Goods but not services
c) Services but not goods d) Goods and services of higher value
12. Aggregate Planning involves planning for the
a) Long term b) Intermediate term or Short term
c) Aggregation of goods d) None of these
13. Material handling flexibility is one of the parameters of
a) Routing flexibility b) Volume flexibility c) Basic flexibility d) None of the these
14. Performance Benchmarking is also known as
a) Statistical Benchmarking b) Functional benchmarking
c) Competitive Benchmarking d) Evaluation benchmarking
15. TQM means
a) Total Quantity Management b) True Quality Management
c) Total Quality Management d) Total Quality Monitoring
16. CAD is the short form of
a) Computer aided development b) Collaboration aided development
c) Computer aided design d) Concurrent aided design
May 09 PGDM 302
17. A summary of all operations and inspections that are required is given in
a) Operations Process chart b) Time series chart c) Gantt chart d) None of these
18. The planning for land, buildings, equipment, and furnishings, providing the physical capability to add
value to the organization is called
a) Work planning b) Facilitation planning
c) Facility planning d) Production planning
19. The objective of Lean is to
a) Increase waste b) Decrease productivity
c) Increase cycle time d) Eliminate waste
20. Work Analysis is related to the area of
a) Environmental Engineering b) Industrial Engineering
c) Research and Development d) Statistical Engineering
Section ‐ B (Answer any four) 4 x 5=20
21. Highlight the key aspects involved in the role of an Operations Manager
22. Write a detailed note on Value analysis
23. Explain the concept of Aggregate Planning and list out the objectives
24. Define Quality and highlight the various costs of Quality Assurance in an organization
25. Briefly explain the various measures for Productivity
26. Briefly explain the following:
a) MPS b) ERP
Section ‐ C (Answer any four) 4 x 10=40
27. Explain the various challenges of the future for Operations Management
28. Explain in detail the different strategies used for development of a product
29. Explain the concept of Benchmarking and Illustrate the various types and benefits of benchmarking
30. Explain in detail the different types of Facility layout with their advantages and limitations
31. Explain the meaning of Work Analysis and discuss the various stages involved in conducting it
32. Write notes on the following:
a) MRP b) Kaizen c) TQM d) Automation
Section‐ D (Compulsory) 1 x 20=20
33. An automobile manufacturing organization called ‘Autotech Limited’ is looking at deciding whether
to make or buy the components required. The organization is looking at the advice of a consultant to
take a decision in this regard. If you were a consultant, what would be the various aspects that you
would analyze before presenting the case to Autotech Limited enabling them to take a decision.
After 1 year: After a period of about 1 year, Autotech Ltd. has decided to establish a new
manufacturing facility. The management of Autotech Ltd. again looks at the advice of the consultant.
As a consultant, what approach would you take to enable Autotech Ltd. to arrive at a decision in
planning their facility layout effectively?
May 09 PGDM 303
New Horizon Leadership Institute
Ring Road, Panathur Post, Near Marathahalli
Bangalore-560 087
Approved by AICTE, ministry of HRD, Govt of India
An ISO 9001:2000 certified institute
III Trimester Examination – May 2009
Sub: Global Business Management
Sub Code: PGDM - 303
Duration: 3 Hours Total Marks: 100
Section‐A (Answer all the Questions) 20x1=20
1. Inflation can be classified as Cost – Push Inflation and Demand – Pull inflation. [True / False]
2. A country devalues its currency to make exports less attractive. [True / False]
3. David Ricardo’s Theory of comparative advantage was criticized as ignoring two important factors of
production. i.e. land and capital. [True / False]
4. Venon in his theory did not try to explain the relationship between the stages in the product life cycle
in international markets and trade. [True / False]
5. The WTO is an international body that oversees the rules and regulations of international trade.
[True / False]
6. After China’s entry into WTO, it is not becoming favorite destination for cars exported from around
the world. [True / False]
7. The US based leading fast food giant, Mc Donald’s expanded its business across countries by taking
the franchising route. [True / False]
8. V4U is a fast growing banking company in India that wants to expand its business to international
markets, especially in the Asia Pacific region. [True / False]
9. My care is a fast growing Korean firm. [True / False]
10. As a member of the Organisation for Economic Cooperation and Development (OECD) India never
follows the Arm’s – length Principle. [True / False]
11. Which of the following affected the growth of the Chinese economy in 2003?
a) SARS b) Pneumonia c) AIDS d) Plague
12. Which of the following was the 10th largest economy in the world in the year 2004?
a) Germany b) Brazil c) Finland d) Russia
13. US firms are considered leaders in which of the following fields?
a) Textiles b) Medical equipment c) Agriculture d) Mining
14. Which of the following affects the profitability of the business due to changes in prices of raw
materials and finished goods?
a) Soft peg b) Technical risks c) Operational risks d) Adjustable peg
15. In which of the following can the option be exercised at any time during the life of the contract?
a) European option b) American option c) Indian option d) Both a and b
16. When the firm expects the domestic currency to appreciate in relation to the foreign currency, it may
prolong the time of payment. This process is known as ------------.
a) Premium b) Hedging c) Lagging d) Speculation
17. Who propounded the theory of competitive advantage?
a) David Ricardo b) Bruce Kogut c) Michael Gannon d) Adam Smith
18. Who among the following proposed the International Product Life cycle theory ?
a) Prebisch b) J.S.Mill c) Raymond Vernon d) Eli Heckscher
19. When was the IMF established ?
a) 1945 b) 1944 c) 1940 d) 1934
May 09 PGDM 303
Duration – 3 hours Total Marks: 100
Section –A (Answer all questions) 20 x 1=20
Section‐C (Answer any four) 4 x 10=40
33. Tata Nano has beaten everybody on price front. For what a new Nano costs, one can also get a
2002 model Hyundai Santro at Rs 1.6 Lacs, 2003 model Opel Corsa at Rs 1.5 Lacs, 2002 model
Maruti Wagon R at Rs 1.3 Lacs, 2002 Model Maruti Zen at Rs 1.3 lacs, 2004 model Tata Indica
at Rs 1.25 lacs and 2002 Maruti Alto at Rs 1.25 Lakh.
As a strategic consultant, what strategies do you recommend for both Nano and the used car (pre-
owned car) industry?
May 09 PGDM 305
New Horizon Leadership Institute
Ring Road, Panathur Post, Near Marathahalli
Bangalore-560 087
Approved by AICTE, ministry of HRD, Govt of India
An ISO 9001:2000 certified institute
III Trimester Examination – May 2009
Sub: Business Research Methods
Sub Code: PGDM - 305
Duration: 3 Hours Total Marks:100
Section‐A (Answer all the Questions) 20 x 1=20
1. Descriptive Research design are highly flexible . [True / False]
2. Secondary Data may be collected as a last resort in business research process [True / False]
3. Cluster analysis plays an important role in identifying market segments [True / False]
4. Open ended questions are frequently used in qualitative studies [True / False]
5. Data reduction techniques are frequently employed in factor analysis [True / False]
6. Scaling Techniques are qualitative in nature [True / False]
7. Mail questionnaires have a high response rate [True / False]
8. Longitudinal and cross sectional research belongs to conclusive research [True / False]
9. Accuracy is possible through the use of scientific instruments [True / False]
10. Qualitative research is a kind of exploratory research [True / False]
11. Interviewer will strictly ask the questions in accordance with the pre arranged order is
a) Structured and Non - disguised b) Non – structured and Disguised
c) Structured and disguised d) Non – structured and Non - disguised
12. Which method is not applicable for non structured and disguised questionnaire
a) Case method b)Word association c) Sentence completion d) Story telling
13. Which one of these is not the component of attitude
a) Affirmative b) affective c) cognitive d) behavioral
14. Which step does not includes in data processing
a) Editor b) Editing c) Tabulation d) Summarize
15. Which one of them does not belong to observation method
a) Structured or unstructured method b) Direct – indirect observation method
b) Mailing questionnaire observation method d) Human mechanical observation method
16. Which method is applicable to study the growth of plants and crops
a) Observation method b) Experimental method c) Time – series method
d) None of the above
17. Panel studies in marketing research:-
a) are cheap and efficient way to study what household consume every month
b) are an indicator of trends in consumer purchase behavior
c) Could be biased by the researcher conducting the study
d) has all the characteristics stated in a,b,c above.
18. A research proposal is a document
a) that provides valuable information for management decision making
b) that seeks permission from the top management to conduct the study
c) that gives a briefing to the outside research agency
d) that meets all the above requirement
May 09 PGDM 305
Duration: 3 Hours Total Marks:100
Section –A (Answer all questions) 20 x 1=20
1.
One should react aggressively during the Group Discussion. (True/False)
2.
When you are listening to somebody, you should stare continuously at the speaker. (True/False)
3.
Language of a formal letter should be simple and without any frills. (True/False)
4.
Courtesy and politeness is not a requirement for a Business Letter. (True/False)
5.
A formal report presents the information in an organized way that has been asked by an authorized
person. (True/False)
6. A committee report must be signed by all the members of the committee. (True/False)
7. While giving a presentation we should try to maintain eye-contact with the audience. (True/False)
8. A well prepared agenda should be there in a Group Discussion. (True/False)
9. Socio-psychological barrier to communication can be overcome only by one’s own efforts.
(True/False)
10. Listening is a natural skill and cannot be improved by training. (True/False)
11. There is a lovely ________ of the town from the window.
a) look b) impression c) sight d) view
12. The box was made of _______ wood.
a) an b) the c) a d) none of these
13. He is a person _______ everyone admires.
a) who b) which c) whom d) that
14. I prefer a humorous play _______ a serious one.
a) to b) than c) from d) none of these
15. He died ________ Malaria.
a) of b) from c) because d) due to
3) Do as directed:
16. She met an old man. He is a doctor. (Combine the Sentences)
17. I have not done my assignment. (Change the Voice of the Sentence)
18. His father said to him, “I will try to buy you a bike.” (Report the Sentence)
19. May god bless you. (Punctuate the Sentence)
20. Ram is a brave boy. (Find out the adjective in the Sentence)
Section ‐B (Answer any four) 4 x 5=20
21. Explain any two of the following formats of writing a business letter:
a. Block Style
b. Complete Block Style
c. Indented style
22. What preparation does the interviewer do to take an interview? How should he conduct an interview?
23. How Effective Listening is important to be successful in one’s professional life
May 09 PGDM 306
24. Explain various types of Routine Reports.
25. Write three things that one should do and two things that one should not do
while giving an oral presentation.
26. Explain the life-cycle of a Team.
Section‐C (Answer any four) 4 x 10=40
27. Write short notes on the following:
a. Appraisal Interview
b. Exit Interview
c. Problem Interview
d. Stress Interview
28. Discuss in detail the barriers to Communication.
29. Write detailed notes on i) Body Language ii) Paralanguage
30. How a candidate can prepare for a job-interview? Discuss in detail.
31. Discuss various parts of a letter.
32. Imagine that you are the Secretary of the Worker’s Association. Write a notice to call a meeting to
discuss the arrangement for celebrating the Company’s Foundation Day. Prepare and attach Agenda
for the meeting also.
Section‐ D (Compulsory) 1 x 20=20
33. Mr. and Mrs. Basu went to Woodlands Apparel to buy a pullover. Mr Basu did not read the price tag
on the piece selected by him. At the counter, while making the payment he asked for the price, Rs. 950
was the answer.
Meanwhile, Mrs. Basu who was still shopping came back and joined her husband. She was glad that
he had selected a nice black pullover for himself. She pointed out that there was a 25% discount on
that item. The counter person nodded in agreement.
Mr. Basu was thrilled to hear that. It means the price of this pullover is just Rs. 712. “That’s fantastic”
said Mr. Basu. He decided to buy one more pullover in green colour. In no time, he returned with the
second pullover and asked them to be packed.
When he received the cash memo for payment, he was astonished to find that he had to pay Rs.1900
and not Rs. 1424. Mr. Basu could hardly reconcile himself to the fact that the counter person had
quoted the discounted price which was Rs. 950. The original price printed on the price tag was Rs.
1266.