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Master of Business Administration- MBA Semester 1 Winter 2014

MB0038 - Management Process and Organizational Behaviour
Q1. Discuss the principles of Management by Henri Fayol.
Answer: There are fourteen principles of management which Henri Fayol enunciated. This has
wide acceptance which is described in detail as follows:
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Q2. Discuss the pre-requisites of an Effective Control system.
Answer the pre-requisites of an Effective Control system are as follows:
Tailoring controls to plans and positions A control is exercised on an activity or a group of
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Q3. Define Personality. Discuss the factors that determine personality development.
Answer: The term 'personality' means external appearances and behaviour, to the psychologists
it means the inner awareness of self as a permanent organising force, and to the manager, it
denotes the measurable traits, both inner and outer which can predict the performance in an
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Q4. Discuss the concept of Attitude. Describe the components and functions of Attitude.
Answer: The attitude is primarily a way of being towards or against things. Fishbein and Ajzen
defined the concept of attitude is a stable predisposition leading to a favourable or unfavourable
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Q5. Discuss the three stages of Stress. Explain the reasons for stress.
Answer: the three stages of Stress are i. Alarm stage ii. Resistance and iii. Exhaustion
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Q6. Write short notes on the following : a)TOWS matrix b)Porters Five Forces model
Answer: TOWS matrix - A modern tool for situation analysis SWOT analysis, i.e., analysis of
the companys Strength, Weaknesses, Opportunities, and Threats, was a popular model.
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MB0039 Business Communication
Q1. As a speaker you are addressing a group of people. Explain the elements involved in this
Answer: Group communication usually takes place between three to twenty individuals. The
basic resource of any group is its members.
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Q2. What is the importance of Kinesics and Proxemics in communication? Explain with
Answer: Kinesics is the most often studied and important area of non-verbal communication and
refers to body movements of any kind.
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Q3. How does internal business communication affect the organization? Discuss the role of each
stakeholder in this.
Answer: Internal business communication is the exchange of information within a company. An
internal business communication involves interaction with the following stakeholders:
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Q4. Imagine a new product from food industry. Write a persuasive letter to customers,
persuading them to buy your companys product.
Answer: Persuasive letters: The most common type of persuasive letter is a sales letter addressed
to customers, persuading them to buy your companys product.
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Q5. You are going to face a job interview for the post of Manager-operations. Which aspects you
will keep in mind while facing the interview?
Answer: To face a job interview is the most important stage of the job application process,
during which attention should be paid to the following aspects:
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Q6. Write short notes on: a) SQ3R technique of reading b) Circulars
Answer: a) SQ3R technique of reading
SQ3R technique of reading was developed by Robinson in his book "Effective Study" (1970).
1. Survey Survey refers to a quick glance through the title page, preface and chapter headings
of a text.
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MB0040 Statistics for Management
Q1. Statistics plays a vital role in almost every facet of human life. Describe the functions of
Statistics. Explain the applications of statistics.
Answer: Statistics plays an important role in almost every facet of human life. In business
context, managers are required to justify decisions on the basis of data.
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Q2. a) Explain the approaches to define probability. b) State the addition and multiplication rules
of probability giving an example of each case.
Answer: a) Explanation of the approaches to define probability
There are four approaches to probability. They are:
Classical / Mathematical / Priori approach

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Q3. a) The procedure of testing hypothesis requires a researcher to adopt several steps. Describe
in brief all such steps. b) Explain the components of time series.
Answer: a) The hypothesis testing procedure:
Step 1: State null hypothesis (Ho) and alternate hypothesis (H1)
Step 2: State the level of significance. This gives you the tabulated normal/t value
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Q4. a) What is a Chi-square test? Point out its applications. Under what conditions is this test
applicable? b) Discuss the types of measurement scales with examples.
Answer: a) A Chi-Square tests allow us to do a lot more than just test for the quality of several
proportions. If we classify a population into several categories with respect to two attributes,
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Q5. Business forecasting acquires an important place in every field of the economy. Explain the
objectives and theories of Business forecasting.
Answer: Business forecasting refers to the analysis of past and present economic conditions with
the object of drawing inferences about probable future business conditions.
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Q6. a) What is analysis of variance? What are the assumptions of this technique? b) Three
samples below have been obtained from normal populations with equal variances. Test the
hypothesis at 5% level that the population means are equal.
8 7 12
10 5 9
7 10 13
14 9 12
11 9 14
Answer: a. Analysis of Variance (ANOVA) is a collection of statistical models used to analyze
the differences between group means and their associated procedures.
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MB0041 Financial and Management Accounting

Q1. Analyze the following transaction under traditional approach
18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m. Rs.20,000
19.1.2011 Paid Ramu by cheque Rs.1,50,000
20.1.2011 Paid salary Rs. 30,000
20.1.2011 Paid rent by cheque Rs. 8,000
21.1.2011 Goods withdrawn for personal use Rs. 5,000
25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000

26.1.2011 Received an advance from customers Rs. 3,00,000

31.1.2011 Paid interest on loan Rs. 5,000
31.1.2011 Paid instalment of loan Rs. 25,000
31.1.2011 Interest allowed by bank Rs. 8,000
Sl. Accounts
Nature of
No Involved
Cash a/c
Cash (cheque) is coming in
Sanjay a/c
Sanjay is the giver


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Q2. The trial balance of Nilgiris Co Ltd., as taken on 31st December, 2002 did not tally and the
difference was carried to suspense account. The following errors were detected subsequently. a)
Sales book total for November was under cast by Rs. 1200.
b) Purchase of new equipment costing Rs. 9475 has been posted to Purchases a/c.
c) Discount received Rs.1250 and discount allowed Rs. 850 in September 2002 have been posted
to wrong sides of discount account.
d) A cheque received from Mr. Longford for Rs. 1500 for goods sold to him on credit earlier,
though entered correctly in the cash book has been posted in his account as Rs. 1050.
e) Stocks worth Rs. 255 taken for use by Mr Dayananda, the Managing Director, have been
entered in sales day book.
f) While carrying forward, the total in Returns Inwards Book has been taken as Rs. 674 instead
of Rs. 647.
g) An amount paid to cashier, Mr. Ramachandra, Rs. 775 as salary for the month of November
has been debited to his personal account as Rs. 757.
Pass journal entries and draw up the suspense account.
Answer: Nilgiris Co Ltd.


31-12-2002 Suspense account

To Sales account
(Being under casting of sales


Debit Rs. Credit Rs.


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Q3. From the given trial balance draft an Adjusted Trial Balance.
Trial Balance as on 31.03.2011
Debit balances Rs. Credit balances Rs.
Furniture and Fittings 10000 Bank Over Draft 16000


Buildings 500000 Capital Account 400000

Sales Returns 1000 Purchase Returns 4000
Bad Debts 2000 Sundry Creditors 30000
Sundry Debtors 25000 Commission 5000
Purchases 90000 Sales 235000
Advertising 20000
Cash 10000
Taxes and Insurance 5000
General Expenses 7000
Salaries 20000
TOTAL 690000 TOTAL 690000
Adjustments: 1. Charge depreciation at 10% on Buildings and Furniture and fittings. 2. Write off
further bad debts 1000 3. Taxes and Insurance prepaid 2000 4. Outstanding salaries 5000 5.
Commission received in advance1000
Ledger accounts:
Furniture and fittings a/c
To bal b/d
10000 By Depreciation
By bal c/d
Total 10000 Total 10000
To bal b/d
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Q4. Compute trend ratios and comment on the financial performance of Infosys Technologies
Ltd. from the following extract of its income statements of five years.
Particulars 2010-11 2009-10 2008-09 2007-08 2006-07
Revenue 27,501 22,742 21,693 16,692 13,893
Operating Profit (PBIDT) 8,968 7,861 7,195 5,238 4,391
PAT from ordinary activities 6,835 6,218 5,988 4,659 3,856
Answer: Trend Analysis
Operating Profit (PBIDT)
8,968 7,861 7,195 5,238 4,391
PAT from ordinary activities 6,835 6,218 5,988 4,659 3,856
Revenue is increasing every year from 2006-07 to 20010-11.Operatin profit has also increased.
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Q5. Give the meaning of cash flow analysis and put down the objectives of cash flow analysis.
Explain the preparation of cash flow statement.
Answer: Cash flow analysis is an important tool of financial analysis. It is the process of
understanding the change in position with respect to cash in the current year and the reasons
responsible for such a change.
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Q6.Write the assumptions of marginal costing. Differentiate between absorption costing and
marginal costing.
Answer: Marginal costing is based on the following assumptions:
1. Segregation of cost into fixed and variable
The whole principle of marginal costing is based on the idea that some costs vary with
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MB0042 Managerial Economics
Q1. What is production function and its uses? Explain the two types of production functions.
Answer: The entire theory of production centres revolves around the concept of production
function. A production function expresses the technological or engineering relationship
between physical quantity of inputs employed and physical quantity of outputs obtained by a
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Q2. Monopoly is the situation there exists a single control over the market producing a
commodity having no substitutes with no possibilities for anyone to enter the industry to
compete. In that situation, they will not charge a uniform price for all the customers in the market
and also the pricing policy followed in that situation.
Answer: Monopoly may be defined, as a condition of production in which a single firm has the
power to fix the price of the commodity or the output of the commodity.
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Q3. A cost-schedule is a statement of variations in costs resulting from variations in the levels of
output and it shows the response of costs to changes in output. If we represent the relationship
between changes in the level of output and costs of production, we get different types of cost
curves in the short run. Define the kinds of cost concepts like TFC, TVC, TC, AFC, AVC, AC
and MC and its corresponding curves with suitable diagrams for each.
Answer: A cost-schedule is a statement of variations in costs resulting from
variations in the levels of output. It shows the response of costs to changes
in output.
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Q4. Inflation is a global Phenomenon which is associated with high price causes decline in the
value for money. It exists when the amount of money in the country is in excess of the physical
volume of goods and services. Explain the reasons for this monetary phenomenon.
Answer: . Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on
a year-on year basis. It refers to the average rise in the general level of prices and fall in the value
of money.
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Q5. Discuss the practical application of Price elasticity and Income elasticity of demand.
Answer: Practical applications of price elasticity are as follows:

Production planning It helps a producer to decide about the volume of production. If the
demand for his products is inelastic, specific quantities can be produced while he has to produce
different quantities, if the demand is elastic.
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Q6. Discuss the scope of managerial economics.

Answer: Managerial Economics: Managerial economics is a science that deals with the
application of various economic theories, principles, concepts and techniques to business
management in order to solve business and management problems.
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MB0043 Human Resource Management
Q1. Discuss the impact of Globalization on HR
Answer: A workforce that is knowledgeable and skilled at doing complex things keeps a
company competitive and attracts foreign investment.
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Q2. Define Management Development. Discuss the Off the job development methods.
Answer: Management development is related to the development and growth of the employees
in an organisation through a systematic process. This development is future-oriented and
prepares managers for a career of valuable contribution to the organisation.
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Q3. Discuss the concept of HRIS. Explain the applications of HRIS in Human Resource
Answer: HRIS, HR Technology or HR modules are an intersection between HRM and IT. It
merges HRM as a discipline and in particular its basic HR activities and processes with the IT
field, whereas the planning and programming of data processing systems evolved into
standardised routines and packages of Enterprise Resource Planning (ERP) software.
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Q4. Discuss the basic guidelines of a Disciplinary policy
Answer: Discipline is employee self-control which prompts him/her to willingly cooperate with
the organisational standards, rules, objectives, etc.
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Q5. Suppose you have joined as an HR and you have been assigned a task to carry out the
grievance handling procedure in your organization. What according to you are the causes of
Grievance? Describe in detail the Grievance handling procedure
Answer: Causes of Grievance: Grievances can arise out of the day to day working relations in an

organisation. Relations with supervisors and colleagues also determine employees job
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Q6. Write short notes on the following : a)Employee Engagement b)Talent Management
Answer: Employee engagement is the level of commitment and involvement an employee has
towards their organisation and its values. An engaged employee is aware of business
circumstances and works with his/her organisation to improve the performance within the job for
the benefit of the organisation and to make an effective organisation.
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