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Examination Paper of Project Management Certification
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IIBM Institute of Business Management
Examination Paper MM.100
Project Management Certification
Guidelines for paper
Total No. of Questions is 100.
The minimum passing marks is 50%.
Each Question carries 1 mark.
Answer all the Questions.
Multiple Choices:
1. A_______ is a temporary endeavor undertaken to create a unique product, service or result.
a) Program
b) Process
c) Project
d) Portfolio
2. Which of the following is not a potential advantage of using good project management?
a) Shorter development times
b) Higher worker morale
c) Lower cost of capital
d) Higher profit margins
3. Which of the following is not an attribute of a project?
a) Projects are unique
b) Projects are developed using progressive elaboration
c) Projects have a primary customer or sponsor
d) Projects involve little uncertainty
4. Which of the following is not part of the triple constraint of project management?
a) Meeting scope goals
b) Meeting time goals
c) Meeting communications goals
d) Meeting cost goals
5. The first stage of any project is
a) Proposal
b) Conceptualization
c) Implementation
d) Management
6. __________is the application of knowledge, skills, tools and techniques to project activities to
meet project requirements.
a) Project Management
b) Program Management
c) Project portfolio Management
d) Requirement Management
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7. Project portfolio management addresses __________goals of an organization, while project
management addresses _________goals.
a) Strategic, tactical
b) Tactical, strategic
c) Internal, external
d) External, internal
8. Several application development projects done for the same functional group might best
be managed as part of a____________
a) Portfolio
b) Program
c) Investment
d) Collaborative
9. Which of the following is not one of the top ten skills or competencies of an effective
project manager?
a) People skills
b) Leadership
c) Integrity
d) Technical skills
10. What is the certification program called that the Project Management Institute provides?
a) Microsoft Certified Project Manager (MCPM)
b) Project Manager Professional (PMP)
c) Project Management Expert (PME)
d) Project Management Mentor (PMM)
11. A___________ is a series of actions directed towards a particular result.
a) Goal
b) Process
c) Plan
d) Project
12. Processes include coordinating people and other resource to carry out
the project plans and produce the products, service, or results of the project or phase.
a) Initiating
b) Planning
c) Executing
d) Monitoring & controlling
13. Which process group normally requires the most resources and time?
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
14. A work breakdown structure, project schedule, and cost estimates are outputs of the process.
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
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15. Which process group includes activities from each of the nine knowledge areas?
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
16. Project management as a profession is almost unique in having institutions concerned with
its development who promote what they term their
a) Body of language
b) Body of knowledge
c) Strategy
d) Work
17. Initiating involves developing a project charter and preliminary project scope statement, which
are part of the project_____________ management knowledge.
a) Integration
b) Scope
c) Communications
d) Risk
18. A__________ describes how things should be done, and different organizations often have
different ways of doing things.
a) Regulation
b) Process
c) Standard
d) Methodology
19._________ involves measuring progress toward project objectives and talking corrective actions.
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
20. What type of report do project teams create to reflect on what went right with the project?
a) Lessons – learned report
b) Status report
c) Final project report
d) Business case
21. Project manager is responsible for_________
a) Overseeing change
b) Cross functional activities
c) Ever changing set of tasks
d) All above
22. Many people use to have a standard format for preparing various project
management documents.
a) Methodologies
b) Templates
c) Project management software
d) Standards
23. What is the last step in the four – stage planning process for selecting information
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technology projects?
a) Information technology strategy planning
b) Business area analysis
c) Project planning
d) Resource allocation
24. A new government law requires an organization to report data in anew way. Under which category
would a new information system project to provide this data fall?
a) Problem
b) Opportunity
c) Directive
d) Regulation
25. A_________ is a document that formally recognizes the existence of a project and provides
direction on the project‟s objectives and management.
a) Project charter
b) Preliminary scope statement
c) Business case
d) Project management plan
26. ICOM model, which is one of the major roles of project manager, stand for__________
a) Integrated Constraint of Mechanism
b) Inputs, Outputs, Constraints & Mechanism
c) Inputs, Outputs, Constraints & Money
d) None
27. A_________ often includes sensitive information, so it should not be part of the overall project
plan for anyone to see.
a) Business case
b) Project charter
c) Personnel chart
d) Stakeholder analysis
28. Which of the following is not a suggestion for performing integrated change control?
a) Use good configuration management
b) Minimize change
c) Establish a formal change control system
d) View project management as a process of constant communication and negotiation
29. refer(s) to all the work involved in creating the products of the projects and
processes used to create them.
a) Deliverables
b) Milestones
c) Scope
d) Product development
30. Assume you have a project with major categories called planning, analysis, design, and
testing. What level of the WBS would these items fall under?
a) 0
b) 1
c) 2
d) 3
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31. Which of the following is not a best practice that can help in avoiding scope problems
on information technology projects?
a) Keep the scope realistic
b) Use off-the-shelf hardware and software whenever possible
c) Follow good project management processes
d) Don‟t involve too many users in scope management
32. Having ascertains the portfolio of projects obtained objectives for each of them, we have to
move to the next stage of the strategy process to balance the objectives
a) Policy deployment
b) Strategy matrix
c) Project performance measurement
d) None
33. What major restaurant chain terminated a large project after spending $170 million on it,
primarily because they realized the project scope was too much to handle?
a) Burger King
b) Pizza Hut
c) McDonalds
d) Taco Bell
34. Scope___________ is often achieved by a customer inspection and then sign- off on
key deliverables.
a) Verification
b) Validation
c) Completion
d) Close – out
35. Project management software helps you ________ which serves as a develop a basis
for creating Gantt charts, assigning resources, and allocating costs.
a) Project plan
b) Schedule
c) WBS
d) Deliverable
36. WBS (Work Breakdown Structure) is also known as _________
a) Chunking
b) Unbundling
c) Both (a) & (b)
d) None
37. What is the first process in planning a project schedule?
a) Milestone definition
b) Activity definition
c) Activity resource estimation
d) Activity sequencing
38. Predecessors, successes, logical relationships, leads and lags, resource requirements, constraints,
imposed dates, and assumptions are all examples of .
a) Items in an activity list
b) Items on a Gantt chart
c) Milestone attributes
d) Activity attributes
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39. As the project manager for a software development project, you are helping to develop its
schedule. You decide that writing code for a system cannot start until sign off on the
analysis work. What type of dependency is this?
a) Technical
b) Mandatory
c) Discretionary
d) External
40. You cannot start editing a technical report until someone else completes the first draft. What
type of dependency does this represent?
a) Finish – to – start
b) Start – to – start
c) Finish – to – finish
d) Start – to – finish
41. ___________ Involves going through the cycle several times to test the effects of the changes
make on the outcomes.
a) Planning
b) Strategy
c) Iterative
d) None
42.
A B
1 2
3
5Days 7Days
Above figure shows two activities A & B; B cannot start until A finished and the times for A
& B are 5 and 7 days respectively. This logic is known as
a) Dependency
b) Precedence
c) Freedom
d) None
43.
10
A
20
5Days
In the above figure calculate the EET (earliest event time) at 20.
a) 10
b) 20
c) 5
d) 25
44. What symbol on a Gantt chart represents a slipped milestone?
a) A black arrow
b) A white arrow
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c) A black diamond
d) A white diamond
45. What type of diagram shows planned and actual project schedule information?
a) A network
b) A Gantt chart
c) A Tracking
d) A milestone chart
46.____________ is a network diagramming technique used to predict total project duration.
a) PERT
b) A Gantt chart
c) Critical path method
d) Crashing
47. Which of the following statement is false?
a) “Growing grass” was on the critical path for a large theme park project.
b) The critical path is the series of activities that determine the earliest time by which
a project can be completed.
c) A forward pass through a project network diagram determines the early start and
early finish dates for each activity.
d) Fast tracking is a technique for marking cost and schedule trade-offs to obtain
the obtain the greatest amount of schedule comparison for the least incremental
cost.
48. ____________ is a method of scheduling that considers limited resources when creating a
project schedule and includes buffers to protect the project completion date.
a) Parkinson‟s Law
b) Murphy‟s Law
c) Critical path analysis
d) Critical chain scheduling
49.___________ is a resource scarified or foregone to achieve a specific objective or
something given up in exchange.
a) Money
b) Liability
c) Trade
d) Cost
50. What is main goal of project cost management?
a) To complete a project for as little cost as possible
b) To complete a project within an approved budget
c) To provide truthful and accurate cost information on projects
d) To ensure that an organization‟s money is used widely
51. A fundamental of „Theory of Constraints‟ (TOC) is to manage systems by focusing on the
constraints, termed as
a) Watermark
b) Bottleneck
c) Tick-sheet
d) None
52. “An activity will expand to fill the time available”; it is
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a) Newton‟s Law
b) Parkinson‟s Law
c) Einstein‟s Law
d) None
53. Which of the following is not a key output of project cost management?
a) A cost estimate
b) A cost management plan
c) Updates to the cost management plan
d) A cost baseline
54. If a company loses $5 for every $100 in revenue for a certain product, what is profit margin
for that product?
a) -5 percent
b) 5 percent
c) -$5
d) $5
55.________reserves allow for future situations that are unpredictable.
a) Contingency
b) Financial
c) Management
d) Baseline
56. You are preparing a cost estimate for a building based on its location, purpose, number of
square feet, and other characteristics. What cost estimating technique are you using?
a) Parametric
b) Analogous
c) Bottom – up
d) Top – down
57.________ involves allocating the project cost estimate to individual work items over time.
a) Reserve analysis
b) Life cycle costing
c) Project cost budgeting
d) Earned value analysis
58._________ is a project performance measurement technique that integrates scope time,
and cost data.
a) Reserve analysis
b) Life cycle costing
c) Project cost budgeting
d) Earned value analysis
59. If the actual cost for a WBS item is $1500 and its earned value was $2000, what is its
cost variance, and is it under or over budget?
a) The cost variance is -$500, which is over budget
b) The cost variance is -$500, which is under budget
c) The cost variance is $500, which is over budget
d) The cost variance is $500, which is under budget
60. If a project is halfway completed and its schedule performance index is 110% and its
cost performance index is 95%, how is it progressing?
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a) It is ahead of schedule and under budget
b) It is ahead of schedule and over budget
c) It is behind schedule and under budget
d) It is behind schedule and over budget
61. To determine the cost of particular element in advance of the project, which technique can be
employed?
a) Parametric estimating
b) As…………but…………s
c) Forecasts
d) All above
62._________is the degree to which a set of inherent characteristics fulfills requirements.
a) Quality
b) Conformance to requirements
c) Fitness for use
d) Reliability
63. What is the purpose of project quality management?
a) To produce the highest quality products and services possible
b) To ensure that appropriate quality standards are met
c) To ensure that the project will satisfy the needs for which it was undertaken
d) All of the above
64.__________ generates ideas for quality improvements by comparing specific project
practices or product characteristics to those of other projects or products within or outside
the performing organization.
a) Quality audits
b) Design of experiments
c) Six Sigma
d) Benchmarking
65. What tool could you use to determine whether a process is in control or out of control?
a) A cause – and – effect diagram
b) A control chart
c) A run chart
d) A scatter chart
66. Complication to the critical path represents the formation of compound series of activities
often involving different paths which has been termed
a) The critical chain
b) The critical path
c) TOC
d) Resource path
67. Six Sigma‟s target for perfection is the achievement of no more than defects,
errors, or mistakes per million opportunities.
a) 6
b) 9
c) 3.4
d) 1
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68. The seven run rule states that if seven data points in a row on a control chart are all below the
mean, above the means, or all increasing or decreasing, then the process needs to be examined
for ___________ problems.
a) Random
b) Non – random
c) Six Sigma
d) Quality
69. What is the preferred order for performing testing on information technology projects?
a) Unit testing, integration testing, system testing, user acceptance testing
b) Unit testing, system testing, integration testing, user acceptance testing
c) Unit testing, system testing, user acceptance testing, integration testing
d) Unit testing, integration testing, user acceptance testing, system testing
70. is known for his work on quality control in Japan and developed the 14
points for Management in his text Out of the Crisis.
a) Juran
b) Deming
c) Crosby
d) Ishikawa
71. The theory of constraints (TOC) is successfully applied in___________
a) Planning
b) Checking
c) Manufacturing
d) Controlling
72. PMI‟s OPM3 is an example of a model or framework for helping
organization improve their processes and systems.
a) Benchmarking
b) Six Sigma
c) Maturity
d) Quality
73. Which of the following is not part of project human resource management?
a) Resource estimating
b) Acquiring the project team
c) Developing the project team
d) Managing the project team
74.____________ causes people to participate in an activity for their own enjoyment.
a) Intrinsic motivation
b) Extrinsic motivation
c) Self motivation
d) Social motivation
75. At the bottom of Maslow‟s pyramid or hierarchy of needs are_________ needs.
a) Self – actualization
b) Esteem
c) Safety
d) Physiological
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76._________ power is based on a person‟s individual charisma.
a) Affiliation
b) Referent
c) Personality
d) Legitimate
77. What technique can you use to resolve resource conflicts by delaying tasks?
a) Resource loading
b) Resource leveling
c) Critical path analysis
d) Over allocation
78. Which of the following is not a tool or technique for managing project team?
a) Observation and conversation
b) Project performance appraisals
c) Issue logs
d) Social Styles Profile
79. What do many experts agree is the greatest threat to the success of any project?
a) Lack of proper funding
b) A failure to communicate
c) Poor listening skills
d) Inadequate staffing
80. Which communication skill is most important for information technology professionals for
career advancement?
a) Writing
b) Listening
c) Speaking
d) Using communication technologies
81. Which of the following is not a process in project communication management?
a) Information planning
b) Information distribution
c) Performance reporting
d) Managing stakeholders
82. A building may not be constructed unless the planning permission for it has been obtained, this
is the.
a) Legal constraint
b) Quality constraint
c) Cost constraint
d) Logic constraint
83. A__________ report describes where the project stands at a specific point in time.
a) Status
b) Performance
c) Forecast
d) Earned value
84.____________ is an uncertainly that can have a negative or positive effect on meeting
project objectives.
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a) Risk utility
b) Risk tolerance
c) Risk management
d) Risk
85. A person who is a risk -________receives greater satisfaction when more payoffs is at
stake and is willing to pay a penalty to take risks.
a) Averse
b) Seeking
c) Neutral
d) Aware
86. Which risk management process involves prioritizing based on their probability and impact
of occurrence?
a) Risk management planning
b) Risk identification
c) Qualitative risk analysis
d) Quantitative risk analysis
87. The 7-S framework of project management issues was promoted by____________
a) McJonald and Co.
b) McKinsly and Co.
c) J & K Co.
d) None
88. Your project involves using a new release of a software application, but if that release is not
available, your team has__________ plans to use the current release.
a) Contingency
b) Fallback
c) Reserve
d) Mitigation
89. A risk__________ is a document that contains results of various risk management
processes, often displayed in a table or spreadsheet format.
a) Management plan
b) Register
c) Breakdown structure
d) Probability / impact matrix
90. Your project team has decided not to use an upcoming release of software because it might
cause your schedule to slip. Which negative risk response strategy are you using?
a) Avoidance
b) Acceptance
c) Transference
d) Mitigation
91. For non critical activities, network diagrams build in __________ at the start of activities.
a) Temporary
b) Buffer
c) Slack
d) Anywhere
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92. If a project being undertaken by a particular project team, then these are referred as________
a) Resource capability
b) Resource capacity
c) Resource calendar
d) Resource pool
93. The term ‘hedgehog syndrome’ means_______
a) Management problem
b) Solving problem
c) Repetition of problem
d) Find out a problem
94. What is the first procurement process?
a) Planning contracting
b) Planning purchasing and acquisitions
c) Requesting seller responses
d) Procurement management planning
95. The_________ is the point at which the contractor assumes total responsibility for each
additional dollar of contract cost.
a) A breakeven point
b) Share ratio point
c) Point of reconciliation
d) Point of total assumption
96. We‟re standing on this hill here. We want to be on that hill over there, this is________
a) View
b) Vision
c) Mission
d) Aim
97. A_________ is a document prepared by a seller when there are different approaches for meeting
buyer needs.
a) RFP
b) RFQ
c) Proposal
d) Quote
98. Buyers often prepare a list when selecting a seller to make this __________ process
more manageable.
a) Preferred
b) Short
c) Qualified suppliers
d) BAFO
99. A proposal evaluation sheet is an example of a (n).
a) RFP
b) NPV analysis
c) Earned value analysis
d) Weighted scoring model
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100. is a term used to describe various procurement functions that are
now done electronically.
a) E – procurement
b) eBay
c) E – commerce
d) EMV
S-2-200314
Examination Paper of Managerial Economics
IIBM Institute of Business Management
IIBM Institute of Business Management
Subject Code-B106
Examination Paper
Managerial Economics
MM.100
Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choice:
I.Demand is determined by
(1)
a) Price of the product
b) Relative prices of other goods
c) Tastes and habits
d) All of the above
II. When a firm’s average revenue is equal to its average cost, it gets (1)
a) Super profit
b) Normal profit
c) Sub normal profit
d) None of the above
III. Managerial economics generally refers to the integration of economic theory with business
(1)
a) Ethics
b) Management
c) Practice
d) All of the above
IV. Which of the following was not immediate cause of 1991 economic crisis (1)
a) Rapid growth of population
b) Severe inflation
c) Expanding Fiscal deficit
d) Rising current account deficit
V.Money functions refers to : (1)
a) Store of value
b) Medium of Exchange
c) Standard of deferred payments
d) All of the above VI. Given the price, if the cost of production increases because of higher price of raw materials, the supply (1) a) Decreases b) Increases c) Remains same d) Any of the above
This section consists of multiple choices and Short Notes type questions.
Answer all the questions.
Part one questions carry 1 mark each & Part two questions carry 5 marks each.
Examination Paper of Managerial Economics
IIBM Institute of Business Management
VII. Total Utility is maximum when (1)
a. Marginal Utility is maximum
b. Marginal Utility is Zero
c. Both of the above
d. None Of The Above
VIII. Cardinal approach is related to (1)
a. Equimarginal Curve
b. Law of diminishing returns
c. Indifference Curve
d. All of the above
IX. Marginal Utility curve of a consumer is also his (1)
a) Supply Curve
b) Demand Curve
c) Both of above
d) None of above
X. Government of India has replaced FERA by (1)
a) The competition Act
b) FRBMA
c) MRTP Act
d) FEMA
Part Two:
1. What is Managerial Economics? What is its relevance to Engineers/Managers? (5)
2. “Managerial Economics is economics that is applied in decision making” Explain? (5)
3. Differentiate b/w, Micro economics vs. macroeconomics? (5)
4. Factors Affecting Price Elasticity of Demand? (5)
Section B: Caselets (40 marks)
END OF SECTION A
This section consists of Caselets.
Answer all the questions.
Each Caselet carries 20marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
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Examination Paper of Managerial Economics
Caselet1
Dabur is among the top five FMCG companies in India and is positioned successfully on the specialist herbal platform. Dabur has proven its expertise in the fields of health care, personal care, home care and foods. The company was founded by Dr. S. K. Burman in 1884 as small pharmacy in Calcutta (now Kolkata), India. And is now led by his great grandson Vivek C. Burman, who is the Chairman of Dabur India Limited and the senior most representative of the Burman family in the company. The company headquarter is in Ghaziabad, India, near the Indian capital New Delhi, where it is registered. The company has over 12 manufacturing units in India and abroad. The international facilities are located in Nepal, Dubai, Bangladesh, Egypt and Nigeria. S.K. Burman, the founder of Dabur, was trained as a physician. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. Soon, he started preparing natural remedies based on Ayurveda for diseases such as Cholera, Plague and Malaria. Due to his cheap and effective remedies, he became to be known as ‘Daktar’ (Indian izedversion of ‘doctor’). And that is how his venture Dabur got its name—derived from Daktar Burman. The company faces stiff competition from many multinational and domestic companies. In the Branded and Packaged Food and Beverages segment major companies that are active include Hindustan Lever, Nestle, Cadbury and Dabur. In case of Ayurvedic medicines and products, the major competitors are Baidyanath, Vicco, Jhandu, Himani and other pharmaceutical companies.
Vision statement of Dabur says that the company is “dedicated to the health and wellbeing of every household”. The objective is to “significantly accelerate profitable growth by providing comfort to others”. For achieving this objective Dabur aims to:
Focus on growing core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of target consumers with safe, efficacious, natural solutions by synthesizing deep knowledge of Ayurveda and herbs with modern science.
Be a professionally managed employer of choice, attracting, developing and retaining quality personnel.
Be responsible citizen with a commitment to environmental protection.
Provide superior returns, relative to our peer group, to our shareholders.
Chairman of the company
Vivek C. Burman joined Dabur in 1954 after completing his graduation in Business Administration from the USA. In 1986 he was appointed as the Managing Director of Dabur and in 1998 he took over as Chairman of the Company.
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Under Vivek Burman’s leadership, Dabur has grown and evolved as a multi-crore business house with a diverse product portfolio and a marketing network that traverses the whole of India and more than 50 countries across the world. As a strong and positive leader, Vivek C. Burman had motivated employees of Dabur to “do better than their best”—a credo that gives Dabur its status as India’s most trusted nature-based products company.
Leading brands
More than 300 diverse products in the FMCG, Healthcare and Ayurveda segments are in the product line of Dabur. List of products of the company include very successful brands like Vatika, Anmol, Hajmola, Dabur Amla Chyawanprash, Dabur Honey and Lal Dant Manjan with turnover of Rs.100 crores each.
Strategic positioning of Dabur Honey as food product, lead to market leadership with over 40% market share in branded honey market; Dabur Chyawanprash is the largest selling Ayurvedic medicine with over 65% market share. Dabur is a leader in herbal digestives with 90% market share. Hajmola tablets are in command with 75% market share of digestive tablets category. Dabur Lal Tail tops baby massage oil market with 35% of total share.
CHD (Consumer Health Division), dealing with classical Ayurvedic medicines, has more than 250 products sold through prescription as well as over the counter. Proprietary Ayurvedic medicines developed by Dabur include Nature Care Isabgol, Madhuvaani and Trifgol.
However, some of the subsidiary units of Dabur have proved to be low margin business; like Dabur Finance Limited. The international units are also operating on low profit margin. The company also produces several “me – too” products. At the same time the company is very popular in the rural segment.
Questions
1. What is the objective of Dabur? Is it profit maximisation of growth maximisation? (10)
2. Do you think the growth of Dabur from a small pharmacy to a large multinational company is an indicator of the advantages of joint stock company against the proprietorship form? Elaborate. (10)
Caselet2
The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products. The market responsc to this 1ak of quality caused financial problems for Ow company. in late 1995. Regina began having return rates as high as 30 to 50 percent on some of its Housekeeper and Housekeeper Plus models. These models were sold primarily through discount stores. Further, Regina's Spectrum vacuum cleaner, an upgraded version sold in specialty stores, was introduced in 1995 with many quality problems. ef The specific problems identified for the Housekeeper and Housekeeper Plus models were associated with faulty belts and weak suction. In the Spectrum model, the agitator was melting; and making a loud noise, the foot pedals were breaking, and the steel-encased motor (which had been advertised as the
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Examination Paper of Managerial Economics
power source for the vacuum cleaner) had been replaced with a less desirable. less reliable motor.
As a result of these problems, Target stores discontinued Regina's Housekeeper Plus model after reporting that "at least half of those sold were returned." At Starmart, which accounts for about a quarter of the Housekeeper sales, I. out of every 5 machines sold was returned. To help service customer complaints, Regina set up an 800 telephone number for customers to contact the firm. directly. The sales returns caused Regina's shareholders to question the 1995 fiscal earnings report. Furthermore, both inventories and accounts receivable doubled during the 1995 fiscal year. At the end of that period, Regina's chairman and 40 percent stockholders
Resigned. The chairman’s resignation was closely followed by a company announcement stating that the financial results reported for the 1995 fiscal year were materially incorrect and had been withdrawn. This announcement brought a suit from shareholders who had bought Reoina stock on the basis of the 1995 camings report. It also prompted an audit of the 1995 results and a request to another accounting organization to work on Regina's business and accounting controls. A few months later, Regina 'agreed to be acquired by a unit of Magnum, a vacuum cleaner and Water-purification Company. Under Magnum, Regina shut down production while engineers worked to solve the problems inherent in the Housekeeper and Housekeeper Plus vacuums, particularly the suction difficulties. In September 1998, Magnum and Regina decided to separate the two companies again. Since then, Regina has been regaining market share with its Housekeeper models. The 'vacuums are popular because they carry on-board tools.
Questions:
1. What type of controls would you have established to preclude the major returns experienced by Regina? (10)
2. How would you have controlled the finished-goods -inventory to avoid its growing to twice the size that it was in the previous year. (10)
Section C: Applied Theory (30 marks)
1. What is the importance of demand analysis in business decision? (15)
2. Explain individual demand function and market demand function. (15)
S-2-010619
This section consists of Applied Theory Questions.
Answer all the questions.
Each question carries 15marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
END OF SECTION C
END OF SECTION B
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