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Corporate Governance
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice & Short Note Types questions.
Answer all the questions.
Part one carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. ________A group of persons chosen to govern the affairs of a corporation or other large institution.
a .Memorandum of Association
b. Nomination Committee
c. Board of Directors
d. Shareholders
2. BIFR stands for_______
a. Board of India and Financial Reconstruction
b. Board of Industrial and Financial Reconstruction
c. Board of Industrial and Finance Reconstruction
d. None of the above
3. ________is a review in which an auditor analyzes and verifies various records and processes relating to a
company‟s quality program.
a. Cost Audit
b. Quality Audit
c. Internal Audit
d. None of the above
4. Which of the following comes under in Justification?
a. Long Run Viability
b. Better Environment
c. Public Image
d. All of the above
5. USEPA stands for_______
6. The existence of a single producer or seller which is producing or selling a product which has no close
substitutes is called_______
a. Externalities
b. Price control
c. Monopoly
d. None of the above
7. SEBI stands for______
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a. Securities and exchange Board of India
b. Stock and exchange Board of India
c. Self-regulatory and exchange Board of India
d. None of the above
8. Which of the following issue is not come under in corporate Governance?
a. Correct Preparation
b. Internal Control
c. oversight and management risk
d. Compensation of CEO and other Directors
9. Shareholder are required to inform the company in writing of any change in their address quoting their
folio number is known as______
a. Change of address
b. Transposition of shares
c. None receipt of Dividend
d. All of the above
10. Which of the following comes under External corporate Governance controls?
a. Competition
b. Managerial labour market
c. Debt Covenants
d. All of the above
Part Two:
1. What are the scopes of corporate governance?
2. Discuss the basic rights of shareholders?
3. List the type of “Auditors”.
4. Write a short note on corporate social responsibility.
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words)
Caselet 1
Real Juice Company
The company is in the business of producing and marketing fruit juices. Ritu joshi and Rohit Jain were
looking at the ad copy and turning it over and over again in their mind. The copy read, “The best fitness plan
for you real fruit, honest juice and no sugar. This was the main copy line. The more Ritu joshi repeated this
END OF SECTION A
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line in her mind the uneasier she became. Something is wrong in the copy, she said to Rohit jain, the
marketing head. We cannot say best for health when we know for sure that the juice contain preservatives
and food color.
Rohit jain said, I don‟t see if anything is wrong in this. With food colors and preservatives added we couldn‟t
say it is best. This is what is wrong m replied Ritu.
Rohit said, but this is hyperbole and permitted by law. There is nothing wrong in saying this. Have you not
almost noticed all detergent brands say for best wash or whitest wash? This is simply a way of putting your
claim of brand‟s superiority. We are not talking about detergent washes and fabrics it is a health and fitness
fruit juice. We could not say something like‟, a great way to plan your fitness programme‟ or something like
that. We are saying real fruit, honest juice, and no sugar‟ … not a word about food color and preservatives‟.
Any consumer can contest our claim.”
Rohit Jain though for a moment then said, “let us get the legal opinion from our lawyer, Amit soni, to be on
the safe guard.
Amit listened to what Ritu had to say then said, “Companies use advertising to provide information to
consumers and offer alternatives in a competitive market situation. Advertising is false when it says A=B
and that is not true. But the ad is misleading; it falls under the category of unfair trade practice.” Loudly
reading the ad copy, Amit said‟” hyperbole such as best, newest most effective way, are permissible and
consumers are unlikely to take such claims with ant seriousness. When a brand says its air-conditioner is best
or most efficient, consumers know that this is just a manner of speech and do not truly believe and put their
money on such claims.
“Yes, Real juice passes the legal test fine, but ethically it won‟t be correct,” said Ritu joshi. “Please
understand. Here you are not making a claim,” said Amit soni.
Amit soni said,” comparative advertising is healthy but the advertiser must be clear about the claims to be
made. In this case, you are saying that Teal juice is good because it comes in cans and bottled drinks are not
as good. This is a direct attack on bottled drinks. Advertiser does not disclose all the parameters they have
considered in their conclusion of „best‟. They may select some major ones or may cheese to highlight the
trivial ones and ignore the major ones. These things happen every day and are not strictly provided under the
law. There must be prima facie evidence of damage or misrepresentation to establish a case of unfair trade
practice.” “so, we are legally safe,” said Rohit jain. “We will reword this campaign, but our other campaigns
have passed to muster.”
Ritu joshi felt differently, she said, “legally we may safe, but we have to also take an ethical view.”
We must not forget that our primary platform is health and fitness. This convenience angle is also crating
and impression of „good for health‟. I believe that as responsible advertisers, we have to be more concerned
about the ethical aspects than merely the legal angle. This is where we come to the line between what is legal
and what is ethical. We may be legally right but our act could be unethical if the word or pictures in the ad
could lead the consumer to believe something that is not true. The aura of the fitness instructor used as
endorser creates an impression that the information is coming to consumers from an environment where
there are people whose opinion consumer‟s view as being correct. Otherwise why use the instructor as
endorser.”
Question:
1. Analyze the issues in the case.
2. Why should advertiser bother about ethics if the ads measure up to legal parameters
Caselet 2
Over the course of Microsoft‟s history, the board has developed corporate governance practices to help it
fulfill its responsibilities to shareholders to oversee the work of management and the company‟s business
results. The governance practices are memorialized in these guidelines to assure that the board will have the
necessary authority and practices in place to review and evaluate the company‟s business operation as
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needed and to make decision that are independent of the company‟s management. The guidelines are also
intended to align the interests of directors and management with those of Microsoft‟s shareholders.
The guidelines are subject to future refinement or changes as the board may find necessary or advisable for
Microsoft in order to achieve these objectives.
Board composition and selection: independent Directors
1. Board Size: The board believes 8 to 10 is an appropriate size based on the company‟s present
circumstances. The board periodically evaluates whether a larger or smaller slate of directors would
be preferable
2. Selection of Board members: All members are elected annually by the company‟s shareholders,
except as noted below with respect to vacancies.
The board may fill vacancies in existing or new directors‟ positions.
3) Board membership criteria: The governance and nominating committee works with the board on
the annual basis to determine the appropriate characteristics, skills and experience for the board as a
whole and its individual board members, the board takes into accounts many factor including general
understanding of marketing, finance and other discipline relevant to the success of a large publicity –
traded company in today‟s business environment; understanding of Microsoft‟s business on a
technical level.
4) Board Composition: Mix of management and independent directors. The board believes that,
except during periods of temporary vacancies, a majority of its directors must be independents.
5) Term Limits: Director who have served on the board for an extended period of time are able to
provide valuable insight into the operation and future of the company based on their experience with
an understanding of the company‟s history, policies and objectives.
6) Retirement Policy: The board believes that 75 is an appropriate retirement age for outside directors.
7) Directors with significant job changes: The board believes that any director who retires from his
or her present employment, or who materially changes his or her position, should tender resignation
to the board.
8) Selection of CEO and Chairman: The board selects the company‟s CEO and Chairman in the
manner that it determines to be in the best interests of the company‟s shareholders.
Board meetings: involvement of Senior Management
9) Board meeting-agenda: The Chairman of the board and CEO, taking into account suggestions from
other members of the board, will set the agenda for each board meeting, and will distribute the
agenda in advance to each director.
10) Advance distribution of material: All information relevant to board‟s understanding of matters to
be discussed at an upcoming board meeting should be distributed in writing or electronically to all
members in advance.
11) Access to employees: The board should have access to company employees in order to ensure that
directors can ask all questions and glean all information necessary to fulfill their duties.
12) Executive session of independent directors: The independent directors of the company will meet
regularly o executive session, i.e., with no management directors or management present, at least
three times each fiscal year.
Performance Evaluation: Succession Planning
13) Annual CEO Evaluation: The chair of the governance and nominating committee leads the
independent directors in conducting a review at least annually of the performance of the CEO and
communicates the result of the review to the CEO.
14) Succession Planning: As part of the annual officer evaluation process, the compensation committee
works with the CEO to plan for CEO succession, as well as to develop plan for interim succession
for the CEO in the event of an unexpected occurrences.
15) Board self-evaluation: The governance and nominating committee is responsible for conducting an
annual evaluation of the performance of the full board and reports its conclusion to the board.
Compensation
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16) Board compensation review: Company management should report to the board on an annual basis
as to how the company‟s director compensation practices compare with those of other large public
corporations.
17) Directors’ stock ownership: The board believes that, in order to align the interests of directors and
shareholders, directors should have a significant financial stake in the company.
Committees
18) Number and types of committees: The board has 5 committees- an Audit committee, a
compensation committee, governance and nominating committee, a finance committee, and an
antitrust compliance committee. The board may add new committees or remove existing committees
as it deems advisable in the fulfillment of its primary responsibilities.
a. Audit committee
b. Compensation committee
c. Governance and Nominating committee
d. Finance committee
19) Composition of committee: Committee chairperson. The audit, compensation, governance and
nominating and antitrust compliance committees consist solely of independent directors.
20) Committee Meetings and Agenda: The chairperson of each committee is responsible for
developing, together with relevant company managers, the committee‟s general agenda and
objectives and for setting the specific agenda for committee meeting.
Miscellaneous
21) Review of governance guidelines: The practices memorialized in these guidelines have developed
over a period of years. The board expects to review these guidelines at least every two years as
appropriate.
Questions:
1. List the number and types of committees.
2. Discuss the Performance evaluation planning in brief.
Section C: Applied Theory (30 Marks)
This section consists of Long Questions.
Answer all the questions.
Each question carry 15 marks each.
Detailed information should from the part of your Answer (Word limit 200 to 250 words)
1. Define corporate governance; explain the principles of corporate governance?
2. Distinguish between the Anglo-American Model and the German Model.
Examination Paper of Corporate Governance Professional
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Corporate Governance Professional
Guidelines for paper
Total No. of Questions is 100.
The minimum passing marks is 40%.
Each Question carries 1 mark.
Answer all the Questions.
Multiple Choices:
1. Corporate Governance is________.
a) About ethical conduct in business
b) Direct or indirect concerns in the organization
c) A manufacturing system
d) None of the above
2. The term corporate governance is derived from the__________.
a) Greek word
b) English word
c) French word
d) Latin word
3. The definition “Corporate Governance is the system by which business directed and controlled”
is given by a)
SEBI committee
b) OECD committee
c) Cadbury committee
d) All of the above
4. Internal control is implemented by the________.
a) Board of directors
b) Audit committee
c) Management
d) All of the above
5. OECD stands for_______________
6. Which of the following have the power to hire fire and compensate the top management?
a) Board of directors
b) Audit committee
c) Shareholders
d) Management
7. CII stands for _________________
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8. The managers are expected to act in the interest of:
a) Audit committee
b) Stakeholders
c) Employees
d) Customers
9. To endorse the organization strategy, develop directional policy, appoint, supervise and remunerate
senior executives and to ensure accountability of the organization to its owners and authorities is the
responsibility of:
a) CEO
b) Manager
c) Top management
d) Board of directors
10. SEBI stands for_________________
11. The role of corporate governance is_______
a) To ensure the efficient use of resources
b) It increases the shareholders value
c) Reduce the procurement and inventory cost
d) All of the above
12. Which of the following is not the issue of corporate governance?
a) Internal control
b) Compensation of CEO and other directors
c) Management of risk
d) Rights of corporation
13. The annual report should not include a)
How decision are taken by the board
b) The name of the chairman, CEO and other directors
c) Ability to hire management
d) The number of meeting
14. __________ is equal to the market price of his holding in shares.
a) Stakeholders wealth
b) Ethical conduct
c) Shareholder’s wealth
d) None of these
15. The key element of good corporate governance principle include a)
Honesty
b) Mutual respect
c) Performance orientation
d) All of the above
16. SOX stands for_____________________
17. The commonly accepted principle of corporate governance are___________
a) Protection of shareholders right
b) Role and responsibilities of board
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c) Interest of other stakeholders
d) All of the above
18. CII developed code of corporate governance in__________________
a) 1997
b) 1996
c) 1994
d) 1878
19. The property right is views simply as _________________
a) Planning right
b) Control right
c) Both a & b
d) None of the above
20. In which type of model the supervisory board is elected by shareholders and labor unions?
a) Japanese model
b) Anglo American model
c) German model
d) The Indian perspective
21. Which of the following come under the five principles of ethical power for organization?
a) Purpose
b) Pride
c) Patience
d) All of the above
22. Which of the following are the theories of corporate governance?
a) Shareholders theory vs. stakeholders theory
b) Stewardship theory
c) Property right theory
d) All of the above
23. The stewardship theory is__________
a) Control oriented
b) Involvement oriented
c) Both a &b
d) None of these
24. ____________ include government nominees and representatives of financial institutions.
a) Board of directors
b) Creditors, suppliers
c) Nominee directors
d) Chief executive officer
25. The __________ oversees internal control and disclosure controls and procedures for financial
reporting.
a) Nominating committee
b) Audit committee
c) Board committee
d) Higgs committee
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26. MDAR stands for_______________
27. Liaison committee designed to make a link between two groups or committees.
a) True
b) False
28. Cadbury committee established in______________
a) 1999
b) 1995
c) 1992
d) 2002
29. How many recommendation is made by CII code a)
17
b) 18
c) 16
d) 19
30. Kumar mangalam committee is appointed by the__________
a) CII
b) SEBI
c) Government
d) None of the above
31. The remuneration of the non-executive directors should be decided by the______
a) Board of directors
b) Top management
c) Stakeholders
d) Entire board
32. Which of the following committee was appointed by the SEBI to make recommendations on the
representation of independent directors on company board and the composition of audit
committee?
a) Cadbury committee
b) Kumar mangalam committee
c) Naresh Chandra committee
d) Board committee
33. Basic shareholders rights include the right to.
a) Secure methods of ownership
b) Convey or transfer shares
c) Participate and vote in general shareholder meetings
d) All of the above
34. Which of the following is use to ensure that the takeover bids are serious?
a) Disclosure
b) Trigger
c) Escrow
d) Creeping acquisition
35. Which of the following are the natures of complaints by shareholders?
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a) Non receipt of dividend
b) Change of address
c) Transmission of shares
d) All of the above
36. The word “transmission” meansa)
Transfer by operation of law
b) Transfer by operation
c) Both a & b
d) None of the above
37. Competition, debt covenants, takeover and media pressure are the_____
a) Internal corporate governance controls
b) External corporate governance control
c) Both a & b
d) None of the above
38. Simple directors who attends board meeting of a company and participate of a company and
participate in the matters before the board isa)
Ordinary directors
b) Managing directors
c) Executive directors
d) Shadow directors
39. The director who perform a specific role in a company under a service contract which requires
a regular, possibly daily, involvement in management is known as________
a) Non-executive director
b) Additional director
c) Executive director
d) Ordinary director
40. Which of the following is the duty of directors?
a) Statutory duties
b) Duties of general nature
c) Both a & b
d) None of the above
41. Which of the following are the not the general duty of directors?
a) Duty of good faith
b) Duty of care
c) Duty not to delegate
d) To disclose interest
42. A document that specifies the regulations for a company’s operation is known as________
a) Memorandum of association
b) Articles of association
c) Both a & b
d) None of the above
43. Any person, company, or other institution that owns at least one share in a company is known
as________
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a) Stakeholder
b) Employees
c) Shareholder
d) Customer
44. Nomination committee is appointed by the a)
CEO
b) Board of directors
c) Management
d) Audit committee
45. The profit earned by the company with reference to the cost of capital in terms of economic profit
is referred to as______
a) Pay-performance
b) Organization bylaws
c) Economic value added
d) None of the above
46. Which of the following are the types of the auditor?
a) Internal
b) External
c) Government
d) All of the above
47. The auditors specialize in crimes and are used by law enforcement organization when
financial documents are involved in a crime is known as_______
a) Forensic auditor
b) Government auditor
c) External auditor
d) Internal auditor
48. Set of standards against which the quality of audits is performed and may be judges is______
a) Generally accepted accounting principles
b) General accepted auditing standards
c) Audit
d) None of the above
49. A ______________ audit is a review in which an auditor analyzes and verifies various records and
processes relating to a company’s quality programs.
a) Cost audit
b) Forensic audit
c) Quality audit
d) None of the above
50. The important aspects of cost audit are_______
a) Property audit
b) Efficiency audit
c) Both a & b
d) Government audit
51. SICA stands for_______________
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52. BIFR stands for_______________
53. Basic principles of audit are_______________
a) Integrity, objectivity & independence
b) Confidentiality
c) Documentation
d) All of the above
54. As per the SEBI guidelines, the audit committee shall meet at leasta)
Twice a year
b) Thrice a year
c) Once a year
d) None of the above
55. _________________ opined that the chairman of the audit committee should be an
independent director.
a) Cadbury committee
b) Board committee
c) KM Birla committee
d) Audit committee
56. An audit committee should aware of technological changes, which is_________________
risk/condition.
a) Internal
b) External
c) Both a & b
d) None of the above
57. The committees of the board involve_________________
a) Supervisory committee
b) Risk management committee
c) Shareholders’ redressal committee
d) All of these
58. NBFCs stands for_________________
59. CSR stands for_________________
60. Which of the following is the essential of accord of Basel II?
a) Capital adequacy
b) Risk based supervision
c) Market disclosure
d) All of the above
61. Which of the following are the objectives of Basel II ?
a) To promote adequate capitalization of banks
b) To ensure better risk management
c) To strengthen the stability of banking system
d) All of the above
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62. The ganguly committee is of the view that the draft minutes of the board meeting should
be forwarded to the director’s within______________ hours of meeting.
a) 56
b) 64
c) 48
d) 32
63. In which ethical principle of the business ethics are measured by rightness of an act and depend
little on the results of this act?
a) Teleological ethical system
b) Deontological ethical system
c) Hybrid theory
d) Individual freedom
64. One of the major ethical issue in advertising is the use of______________
a) True
b) False
65. Major social responsibilities of business involve a)
Optimum utilization of scarce national resources
b) Responsibility no to make losses
c) Improve quality of life
d) All of above
66. Government is thinking of making it mandatory for the companies to spend_________________% of
their net profits on CSR.
a) 2
b) 4
c) 6
d) 8
67. It is the responsibility of the firm towards its________________ to avoid any type of cartel
formation that a attempts to reap monopoly profits.
a) Shareholders
b) Customers
c) Employees
d) Management
68. Four important group that business are shareholders, employees, customers and_________________
a) Management
b) Board of director
c) Society
d) Stakeholder
69. NGO stands for_________________
70. Employees should get_________________ wages
a) Clear
b) Minimum
c) Maximum
d) Fair
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71. Objectives of environmental audit are__________
a) Verification of legislative a nd regulatory compliance
b) Assessment of internal policy and procedural conformamance
c) Establishment of current practice status
d) All of the above
72. Review of documents and records, Review of policies, interviews are comes under which stage a)
Pre-audit stage
b) Post-audit stage
c) Audit stage
d) None
73. Environment protection act was passed in________________ for the protection of environment.
a) 1988
b) 1999
c) 1986
d) 1990
74. The financial or non-financial support of an activity, used primarily to reach the given business goals
is_______
a) Media
b) finance
c) Both a &b
d) Sponsorship
75. A printed report giving news or information of interest to a special group.
a) Newsletter
b) Formal meeting
c) Mailing list
d) Media release
76. Media can be used to promote_______________ communication.
a) One way
b) Two way
c) Both a & b
d) None of the above
77. Businesses arrange for______________ meetings with powerful stakeholders.
a) Information display
b) Public forum
c) Formal meeting
d) Informal meeting
78. MRTP stands for_________________
79. IRDA stands for_________________
80. It is said to be exist where there is a large number of procedures (firms) producing a same kind
of product.
a) Monopoly competition
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b) Monopolistic competition
c) Perfect competition
d) None of the above
81. Which of the following aspects of economic activity is not control by MRTP?
a) Restrictive on buying/selling
b) Unfair trade practices
c) Concentration of economic power
d) Restrictive trade practices
82. Price control is the restriction on maximum prices that is established and maintained by
the government.
a) True
b) False
83. Public policy is an attempt by the government to address a private issue.
a) True
b) False
84. The SEBI was established on________________
a) March 12, 1992
b) September 14, 1992
c) April 12, 1992
d) June 15, 1993
85. The seller of the security is________
a) Bear
b) Bull
c) Both a & b
d) None of the above
86. Insider trading can be defined as the sale or purchase of securities by persons who possess price
sensitive information about the company.
a) True
b) False
87. ___________ makes a commitment to get the underwritten issue subscribed either by other or by
them.
a) Utilitarianism
b) Underwriters
c) Insider trading
d) None of the above
88. The board of SEBI consists of_______________
a) 8
b) 7
c) 4
d) 6
89. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial, and quasi-executive.
a) True
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b) False
90. SEBI is the regulator for the securities market in India.
a) True
b) False
91. AMFI stands for_________________.
92. Buying a commodity at a low price and instantly selling it for a higher price in another market is
known as________
a) Hedging
b) Speculating
c) Arbitrage
d) Shifting of risk
93. An over-the-counter market where buyers and sellers conduct foreign exchange transaction.
a) Commodity exchange
b) Foreign direct investment
c) FOREX
d) None of the above
94. Licensing grant a permit to aloe the use of something or to allow a business activity to take place.
a) True
b) False
95. Government often uses quotas to restrict export.
a) True
b) False
96. Private companies can enjoy the right to transfer shares.
a) True
b) False
97. India has 22 stock exchanges.
a) True
b) False
98. Foreign companies are those, which have been incorporated outside India and conduct business
in India.
a) True
b) False
99. Clause 49 has been prepared by the Reserve Bank of India.
a) True
b) False
100. Corporate Governance ensures easy access to capital.
a) True
b) False
S-2-200314
Examination Paper of Production Management
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IIBM Institute of Business Management
Examination Paper MM.100
Product Design & Development
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice & Short Answer type questions.
Answer all the questions.
Part One carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. The concept of a contract book is detailed by
a. Wheelwright
b. Clark
c. Both (a) & (b)
d. None of the above
2. BOM stands for Bill of Materials.(T/F)
3. Concept screening is based on a method developed by the late Stuart Pugh in the 1980s and is often
called ______________
4. _____________ is used when increased resolution will better differentiate among company concepts.
5. ________________are the first products produced by the entire production process.
6. The first commercial free-form fabrication system was introduced by 3D Systems.
a. 1984
b. 1986
c. 1964
d. 1948
7. Concepts are turned over the customer, client, or some other external entity for selection is called
a. Intuition
b. Pros and Cons
c. External decision
d. Decision materials
8. A Russian problem-solving methodology called TRIZ began to be disseminated in Europe and in the
United States in the
a. 1998
b. 1997
c. 1976
d. 1990
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9. Functional elements of a Product Architecture are ___________& _____________
10. ______________ is a key determinant of the economic success of a product.
Part Two:
1. What is “Control Drawings”.
2. Write short note on “Resource Allocation”.
3. Write short note on “Product Variety”.
4. What is “Project Risk Plan”
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
New Product Development At Smart India Ltd.
Ajay Kumar, the Vice-President, (Sales) of a leading Delhi based bicycle manufacturer of the country
called SMART LTD., was wondering at the increase in the quantum of Traffic on roads during the last 10
years, while glancing outside his office window. But not much had changed in his company in th23e year
2001. His company‟s market share was dwindling since the last 10 years, though the profits and sales
were showing an increasing trend. The threat of cheap imports was also knocking at the doors. The
competitors were using marketing strategies to the hilt in order to get larger chunk of market share. The
things were not showing improving trend despite the continuous efforts by the company. SMART LTD.
was equally poised with RUSH LTD. in respect of market share just 10 years back. Now the ground
realties were very much adverse to SMART LTD.. While RUSH LTD. was having a market share of
about 45 per cent, SMART LTD. lagged behind with only about half i.e. 23 percent closely followed by
CLIMB LTD. with 20 per cent. The rapid erosion in the market share of SMART LTD. was of concern to
Ajay Kumar, who was trying to find out ways to stop the downfall. The problem of losing market share
had become more prominent keeping in view that the bicycle business was a volume led business to an
extent. To make the matters worse, the credit rating agency had downgraded the debt instrument issued by
the company in view of a possible feud between the family members of the promoter and the majority
share holders.
An important factor in the bicycle market, which had recently gained importance, was the increasing
demand for different types of bicycles among youth, particularly those of the sports variety. Unlike in the
END OF SECTION A
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past, improved technology had led to newer varieties of bicycle ranging from the very basic to the 21 gear
models. Such value added products also provide better profit margins. Also, some manufacturers had
started rolling out products provide better profit margins. Also, some manufacturers had started rolling
out products that were not strictly bicycles but had similar technological inputs. These included exercise
bicycles popularly found in the clubs and gymnasiums. At the plant level, the top post was that of the
Joint President and was held by one of the family members. Most of the decisions were subject to the gut
feel of the Joint President.
Though perceived as „a poor man‟s product‟, the scenario was changing of late. Earlier the product was
positioned using only one plank i.e., cost effective transport utility vehicle. Now the market was being
segmented multidimensionally by all the players. Age, benefit, income, occasions etc. were the added
criteria. SMART LTD. had come up with bikes for kids, city bikes, mountain bikes and classics. This
reflected the changing needs of buyers as well. CLIMB LTD. had segmented market on the basis of
usage, road bikes, mountain bikes and tandems. SMART LTD. had also jumped to the bandwagon
recently and had introduced bikes in ladies, kids, adventure and health segments. The trend was to
increasingly use the platform of health, fun, sports etc., to increase the penetration into the market. Once
the leader in the bicycle industry had 35 models in the market with about eight colour variants for each.
The competitor RUSH LTD. had about 45 models in the market with more colour variants.
The financial stakes of introducing of a new product in the bicycle industry ranged from Rs 45000 to
a couple of lakhs. The manufacturing process of bicycle was composed of many sub-assemblies. The
synergic use of these sub-assemblies helped in reaping economies of scale. To remain to the competition,
it was imperative to introduce innovative products that could meet the differentiated needs in a better
fashion. Ajay Kumar, the Vice President (Sales) had seen a bike in a foreign magazine and had sent the
picture of the same 6 months back to design and development department. The feasibility report was still
awaited from the design and development department. He appraised the Vice-President (Production)
regarding the issue but the things still had to be sorted out. Ghanshyam, the HOD(Sales Department) had
visited Taiwan and brought designs of four bicycles which could be manufactured by the company. But
his sales division suggested that those bikes would be out of reach for the poor, therefor, the idea could
not be taken up. He was very enthusiastic over a project to launch a new bike for fun loving people. After
detailed deliberations with the production and design development department for about 8 months, the
proposal was sent to the top management for approval. He was sad, as the file was pending for about 2
months with his boss. While Ajay Kumar was pondering over the issues, his colleague from the finance
department entered into the room and said, “I was watching a movie on HBO last night, I saw a very
different kind of bike in it. Did you view it?” Ajay Kumar replied in negative and wondered what could
be the right approach for product development. He was also concerned with the time involved in the
process of development of new products.
Ajay while passing by the market simply gazed at the bicycle showroom on his way and appreciated
the speed at which the competitors were able to come up with various colour variants. Recently, Ajay
Kumar also discussed with the Vice-President (Production) regarding the experimentation with some new
colours. The officer agreed with his new proposal and assured that the same shall be forwarded to the top
management for a final decision. Ajay kumar prepared himself to wait for a long time as his experience
curve suggested. One of the only solacing fact for Ajay Kumar was the success of the bike „football‟
which they launched on the eve of soccer world cup. The bike was an instant success. A friend of Ajay
Kumar, who worked with him till last year, called upon him. He remembered how enthusiastically he was
explaining his new challenging job. He was very happy about the confidence the management had put in
him. He was also being sent abroad on training by his new employers. The sales department had
subjectively come up with the multdimensional mapping of the three major players on two relevant
attributes.
The company planned to come up with a new campaign focusing upon the environment friendliness
of bicycle over motor bikes that use fossil fuels. The government also promised to aid the concern in this
effort. One of the main strengths of SMART LTD. was its undisputed leadership in the rural areas. The
company did not intend to lose it. His main rival was also closing in for the rural market. SMART LTD.
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had initiated a restructuring exercise in 1999-2000, whereby, three new wholly owned subsidiaries were
created, each being named after the respective cycle manufacturing locations, namely, SMART LTD.
(Delhi), SMART LTD. (Gujarat) and SMART LTD. (Andhra Pradesh). Although the originally stated
intention of setting up these subsidiaries was to treat them as profit centers, current developments indicate
the likelihood of distribution of assets and liabilities into these companies.
Ajay Kumar was quite confident of the quality of the bicycles manufactured as the steel used for the
sale was produced by one of its own unit. The firm had also bagged an international award for its quality
standards. The sales figures had gone up from 250 crores in the year 1995 to 350 crores in the year 1998.
The inflow of foreign exchange showed a steady increase from 100 to 120 during the same period.
SMART LTD. was exporting bikes to more than 35 countries.
Questions:
1. How new product development process be improved at SMART LTD?
2. What strategies should be used by SMART LTD. to increase its market share.
Caselet 2
Swastik Cycles Limited
Swastik Cycles Limited was a key manufacturer of a wide variety of cycles. Its products were available
almost all over the country and were also exported. It was the second largest bicycles selling organisation
followed by Star Cycles. The total turnover of the company was Rs 400 crores during the year 1999-2000
and its market share in the year 2000-2001 was about 24%, whereas Star Cycle had captured about 46%
of the total market in the same year, rest of the market was shared by all other brands. The company had
classified its entire products into.
1. Utility segment: popularly called as the standard cycles, widely used by milkmen, hawkers, and other
lower income group people.
2. Fancy cycles: multi coloured bicycles with modern features like gear changing, stylish handle, slim
frame etc., used by kids, teenagers and sportsmen.
3. Health segment: health maintaining products i.e., walker, cycle etc., for all age group had been put
under this categorys.
The company had its strength in the utility segment and was accepted as the market leader, whereas in
other segments, it had yet to prove itself. In other segments i.e., fancy cycle segment, health segment the
Star Cycle was far ahead. The company was striving to fight the stiff competition from domestic players.
It also anticipated the competition from Chinese players who were expected to enter the Indian market
with low cost products. On account of heavy import duties levied by the government in the budget of
2001-2002, the chances of their invading the domestic market were, however, substantially minimized.
Now, the company had confined itself to win over the domestic players in these segments. The major
issue for a company was that despite their presence in the fancy cycles the segment for last 10 years they
were not able to attract the target market and the sales were lagging behind. The immediate requirement
was to push the sales of these two segments.
The company had been trying to push sales through their dealers network all over the country which
was the only intermediatory between the company and the customers. In order to fresh the desired sales
company had the policy of offering monetary and non-monetary incentives in the form of rebates on
target lifting.
In addition to it, the company also offered incentives like foreign trips to Bangkok etc. and free passes
of mega events. The company also went for some other sales promotion activities the like point of
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purchase (POP), joint promotion schemes (JPS) with dealers, in which the dealers offered gifts on every
purchase to their customers and the cost incurred was born jointly by the company and the dealer
concerned. Cycle races organised by schools and educational institutes were other promotional measures
adopted by the company.
The company had invested marginally in advertising. They ran the show through print media and the
advertisement on the electronic media was very low. Decision making regarding promotional activities
was centralized with the corporate office, whereas, other decisions regarding sales, R&D and production
could be taken by the respective units. The field force comprising of sales executives and field officers
who were in constant touch with the dealers and the customers for getting their feedbacks regarding sales
promotion strategies, used to send the feedbacks to the corporate office for further processing and
decision making. This consumed time and little was left with the particular unit to decide.
The changing trends in the markets gave enough scope to make the bicycle popular amongst the elite
class in the form of health maintaining products, pollution free vehicles etc. Though the company was
making efforts to tap this newly emerging customer group by offering them health maintaining cycles,
stylish racing cycles, yet it was a hard task for the company because it had not made any strategy to reach
the customers directly to bring about awareness of the products. To improve its market share and
maximize sales, a lot was required to be done by the company to devise the marketing strategies if it was
to cope up with the changed market scenario and the strategies adopted by its competitors.
Questions:
1. Discuss key problem faced by Swastik Cycles?
2. Design an appropriate marketing strategy comprising of all the essentials to overcome this problem.
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Many product development teams separate the “looks like” prototype from the “works like”
prototype. They do this because integrating both function and from is difficult in the early phase of
development. What are the strengths and weaknesses of this approach? For what types of products
might this approach be dangerous?
2. The argument for the motorcycle architecture is that it allows for a lighter motorcycle than the more
modular alternative. What are the other advantages and disadvantages? Which approach is likely to
cost less to manufacture?
END OF SECTION B
END OF SECTION C
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IIBM Institute of Business Management
Examination Paper MM.100
Quantitative Techniques
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice questions & Short Answer type questions.
Answer all the questions.
Part One carries 0.5 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. The value of 3n+4 - 6.3n+1 is
a. 27.3n+1
b. 21.3n-1
c. 21.3n+1
d. 27.3n-1
e. 21.3-n-1
2. The value of x which satisfies the question x/2-x/4=x-9 is
a. 12
b. 14
c. 16
d. 18
e. 20
3. The sum of 5ax-7by+cz and ax+2by-cz is
a. 6ax+5by
b. 6ax-5by
c. 6ax+5by-2cz
d. 6ax-5by-cz
e. 6ax-5by+2cz.
4. The product of 3x-5 and 2x+7 is
a. 6x2-11x-35
b. 6x2-11x+35
c. 6x2+11x-35
d. 6x2 +10x-35
e. 6x2+11x+35
5. The 37th term in the series -2.8, 0, 2.8,…. Is
a. 98
b. 89
c. 87
d. 78
e. 68
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6. The sum of the series 14, 64, 114, … to 20 terms is
a. 7890
b. 8970
c. 9780
d. 10820
e. 10920
7. The last term in the series 2, 4, 8, … to 9 terms is
a. 612
b. 512
c. 412
d. 312
e. 212
8. If an unbiased coin is tossed 3 times then the probability that at least one head occurs is
a. 0.875
b. 0.5
c. 0.375
d. 0.125
e. 0.1.
9. Again in continuation with the above question the probability that 3 heads result is
a. 0.100
b. 0.125
c. 0.250
d. 0.500
e. 0.875
10. The line y=5-10x cuts the y axis at_________ and has slope________
a. (0,10), -5
b. (0,-10), 5
c. (0,5), -10
d. (0,-5), 10
e. (0,5), 10
11. If y=F(x) is the equation of a line then the slope at (5,2) is given by
a. F‟(2)
b. F‟(5)
c. F(2)
d. F(5)
e. None of the above
12. Slope of the line passing through the points (4,4) and (5,5) is
a. 1
b. 9
c. 1/9
d. 20
e. 1/20
13. An „Ogive‟ is
a. A graph of ungrouped data
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b. A graph of grouped data
c. A graph of cumulative frequencies
d. A graph of ranges of fractiles
e. A graph with rectangles as opposed to a line graph.
14. If p=3x4 + 9xy + y3 then ∂p/∂y is given by
a. 12x3+9x
b. 12x3+9x+3y2
c. 9x+3y2
d. 9y+3y3
e. 12x3+9y+3y2
15. For a function f(x), f‟(x)=0 at x=a then „a‟ is a point of minima if
a. F(a)<0
b. F(a)=0
c. F‟‟(a)=0
d. F‟‟(a)< 0
e. F‟‟(a)>0
16. The function 2x2 + 3x +2 has a
a. Maximum value at x = - 3/4
b. Minimum value at x = - 2
c. Maximum value at x = -3/2
d. Minimum value at x = -3/4
e. The equation has no maxima and minima.
17. The probability of getting exactly 3 heads in four tosses of a fair coin is
a. 1/2
b. 1/4
c. 1/8
d. 1/10
e. 1/16
18. In multiple regression, the number of normal equations will be
a. Two
b. Three
c. One
d. More than three
e. More than or equal to three
19. The index of industrial production is an example of
a. Price index
b. Value index
c. Quality index
d. Relative index
e. Industrial production index
20. As the sample size is increased, the standard error of the mean would
a. Increase
b. Decrease
c. Remain unchanged
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d. May or may not increase
e. The value of sample mean would be lot closer of population mean
Part Two:
1. What do you understand by „Infeasibility‟ of the solution?
2. Write about „Big – M‟ method for minimization.
3. Write about the „Classical Economic Order Quantity (EOQ) models.
4. Write a short note on „Interfering Float‟.
Section B: Practical Problems (40 marks)
This section consists of Practical Problems.
Answer all the questions.
Each Practical Problems carries 20 marks.
1. A car retailer thinks that a 40,000 mile claim for tire life by the manufacturer is too high. She
carefully records the mileage obtained from a sample of 64 such tires. The mean turns out to be
38,500 miles. The standard deviation of the life of all tires of this type has previously been
calculated by the manufacturer to be 7,600 miles. Assuming that the mileage is normally
distributed, determine the largest significance level at which we should accept the manufacturer‟s
mileage claim, that is, at which we would not conclude the mileage is significantly less than
40,000 miles.
2. Consider the following data:
Output Total Cost
(in lakhs of units) (in lakhs of rupees)
5 140
7 155
9 170
11 180
14 200
17 230
20 240
22 260
24 275
28 310
Identify the fixed and variable cost components using the least squares method.
END OF SECTION A
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Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. In a recent survey, senior company executives in five metros has ranked two former finance ministers
Mr. Manmohan Singh and Mr. P. Chindambaram as first and second and the present finance minister
Mr. Yashwant Sinha in third position as regarding their popularity.In this, an example of sampling
survey? Discuss about necessity of sampling and the different methods of sampling?
2. “Index numbers are an indispensible tool in day to day life. Comment. Also, explain with examples
how index numbers provide a summary measurement of movements of a large number of economic
variables. Is there a possibility that, their method of computation could give a distorted picture of
reality?
S-2-300813
END OF SECTION B
END OF SECTION C
CONTAC;
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Corporate Governance
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice & Short Note Types questions.
Answer all the questions.
Part one carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. ________A group of persons chosen to govern the affairs of a corporation or other large institution.
a .Memorandum of Association
b. Nomination Committee
c. Board of Directors
d. Shareholders
2. BIFR stands for_______
a. Board of India and Financial Reconstruction
b. Board of Industrial and Financial Reconstruction
c. Board of Industrial and Finance Reconstruction
d. None of the above
3. ________is a review in which an auditor analyzes and verifies various records and processes relating to a
company‟s quality program.
a. Cost Audit
b. Quality Audit
c. Internal Audit
d. None of the above
4. Which of the following comes under in Justification?
a. Long Run Viability
b. Better Environment
c. Public Image
d. All of the above
5. USEPA stands for_______
6. The existence of a single producer or seller which is producing or selling a product which has no close
substitutes is called_______
a. Externalities
b. Price control
c. Monopoly
d. None of the above
7. SEBI stands for______
Examination Paper of Corporate Governance
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a. Securities and exchange Board of India
b. Stock and exchange Board of India
c. Self-regulatory and exchange Board of India
d. None of the above
8. Which of the following issue is not come under in corporate Governance?
a. Correct Preparation
b. Internal Control
c. oversight and management risk
d. Compensation of CEO and other Directors
9. Shareholder are required to inform the company in writing of any change in their address quoting their
folio number is known as______
a. Change of address
b. Transposition of shares
c. None receipt of Dividend
d. All of the above
10. Which of the following comes under External corporate Governance controls?
a. Competition
b. Managerial labour market
c. Debt Covenants
d. All of the above
Part Two:
1. What are the scopes of corporate governance?
2. Discuss the basic rights of shareholders?
3. List the type of “Auditors”.
4. Write a short note on corporate social responsibility.
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words)
Caselet 1
Real Juice Company
The company is in the business of producing and marketing fruit juices. Ritu joshi and Rohit Jain were
looking at the ad copy and turning it over and over again in their mind. The copy read, “The best fitness plan
for you real fruit, honest juice and no sugar. This was the main copy line. The more Ritu joshi repeated this
END OF SECTION A
Examination Paper of Corporate Governance
IIBM Institute of Business Management 3
line in her mind the uneasier she became. Something is wrong in the copy, she said to Rohit jain, the
marketing head. We cannot say best for health when we know for sure that the juice contain preservatives
and food color.
Rohit jain said, I don‟t see if anything is wrong in this. With food colors and preservatives added we couldn‟t
say it is best. This is what is wrong m replied Ritu.
Rohit said, but this is hyperbole and permitted by law. There is nothing wrong in saying this. Have you not
almost noticed all detergent brands say for best wash or whitest wash? This is simply a way of putting your
claim of brand‟s superiority. We are not talking about detergent washes and fabrics it is a health and fitness
fruit juice. We could not say something like‟, a great way to plan your fitness programme‟ or something like
that. We are saying real fruit, honest juice, and no sugar‟ … not a word about food color and preservatives‟.
Any consumer can contest our claim.”
Rohit Jain though for a moment then said, “let us get the legal opinion from our lawyer, Amit soni, to be on
the safe guard.
Amit listened to what Ritu had to say then said, “Companies use advertising to provide information to
consumers and offer alternatives in a competitive market situation. Advertising is false when it says A=B
and that is not true. But the ad is misleading; it falls under the category of unfair trade practice.” Loudly
reading the ad copy, Amit said‟” hyperbole such as best, newest most effective way, are permissible and
consumers are unlikely to take such claims with ant seriousness. When a brand says its air-conditioner is best
or most efficient, consumers know that this is just a manner of speech and do not truly believe and put their
money on such claims.
“Yes, Real juice passes the legal test fine, but ethically it won‟t be correct,” said Ritu joshi. “Please
understand. Here you are not making a claim,” said Amit soni.
Amit soni said,” comparative advertising is healthy but the advertiser must be clear about the claims to be
made. In this case, you are saying that Teal juice is good because it comes in cans and bottled drinks are not
as good. This is a direct attack on bottled drinks. Advertiser does not disclose all the parameters they have
considered in their conclusion of „best‟. They may select some major ones or may cheese to highlight the
trivial ones and ignore the major ones. These things happen every day and are not strictly provided under the
law. There must be prima facie evidence of damage or misrepresentation to establish a case of unfair trade
practice.” “so, we are legally safe,” said Rohit jain. “We will reword this campaign, but our other campaigns
have passed to muster.”
Ritu joshi felt differently, she said, “legally we may safe, but we have to also take an ethical view.”
We must not forget that our primary platform is health and fitness. This convenience angle is also crating
and impression of „good for health‟. I believe that as responsible advertisers, we have to be more concerned
about the ethical aspects than merely the legal angle. This is where we come to the line between what is legal
and what is ethical. We may be legally right but our act could be unethical if the word or pictures in the ad
could lead the consumer to believe something that is not true. The aura of the fitness instructor used as
endorser creates an impression that the information is coming to consumers from an environment where
there are people whose opinion consumer‟s view as being correct. Otherwise why use the instructor as
endorser.”
Question:
1. Analyze the issues in the case.
2. Why should advertiser bother about ethics if the ads measure up to legal parameters
Caselet 2
Over the course of Microsoft‟s history, the board has developed corporate governance practices to help it
fulfill its responsibilities to shareholders to oversee the work of management and the company‟s business
results. The governance practices are memorialized in these guidelines to assure that the board will have the
necessary authority and practices in place to review and evaluate the company‟s business operation as
Examination Paper of Corporate Governance
IIBM Institute of Business Management 4
needed and to make decision that are independent of the company‟s management. The guidelines are also
intended to align the interests of directors and management with those of Microsoft‟s shareholders.
The guidelines are subject to future refinement or changes as the board may find necessary or advisable for
Microsoft in order to achieve these objectives.
Board composition and selection: independent Directors
1. Board Size: The board believes 8 to 10 is an appropriate size based on the company‟s present
circumstances. The board periodically evaluates whether a larger or smaller slate of directors would
be preferable
2. Selection of Board members: All members are elected annually by the company‟s shareholders,
except as noted below with respect to vacancies.
The board may fill vacancies in existing or new directors‟ positions.
3) Board membership criteria: The governance and nominating committee works with the board on
the annual basis to determine the appropriate characteristics, skills and experience for the board as a
whole and its individual board members, the board takes into accounts many factor including general
understanding of marketing, finance and other discipline relevant to the success of a large publicity –
traded company in today‟s business environment; understanding of Microsoft‟s business on a
technical level.
4) Board Composition: Mix of management and independent directors. The board believes that,
except during periods of temporary vacancies, a majority of its directors must be independents.
5) Term Limits: Director who have served on the board for an extended period of time are able to
provide valuable insight into the operation and future of the company based on their experience with
an understanding of the company‟s history, policies and objectives.
6) Retirement Policy: The board believes that 75 is an appropriate retirement age for outside directors.
7) Directors with significant job changes: The board believes that any director who retires from his
or her present employment, or who materially changes his or her position, should tender resignation
to the board.
8) Selection of CEO and Chairman: The board selects the company‟s CEO and Chairman in the
manner that it determines to be in the best interests of the company‟s shareholders.
Board meetings: involvement of Senior Management
9) Board meeting-agenda: The Chairman of the board and CEO, taking into account suggestions from
other members of the board, will set the agenda for each board meeting, and will distribute the
agenda in advance to each director.
10) Advance distribution of material: All information relevant to board‟s understanding of matters to
be discussed at an upcoming board meeting should be distributed in writing or electronically to all
members in advance.
11) Access to employees: The board should have access to company employees in order to ensure that
directors can ask all questions and glean all information necessary to fulfill their duties.
12) Executive session of independent directors: The independent directors of the company will meet
regularly o executive session, i.e., with no management directors or management present, at least
three times each fiscal year.
Performance Evaluation: Succession Planning
13) Annual CEO Evaluation: The chair of the governance and nominating committee leads the
independent directors in conducting a review at least annually of the performance of the CEO and
communicates the result of the review to the CEO.
14) Succession Planning: As part of the annual officer evaluation process, the compensation committee
works with the CEO to plan for CEO succession, as well as to develop plan for interim succession
for the CEO in the event of an unexpected occurrences.
15) Board self-evaluation: The governance and nominating committee is responsible for conducting an
annual evaluation of the performance of the full board and reports its conclusion to the board.
Compensation
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16) Board compensation review: Company management should report to the board on an annual basis
as to how the company‟s director compensation practices compare with those of other large public
corporations.
17) Directors’ stock ownership: The board believes that, in order to align the interests of directors and
shareholders, directors should have a significant financial stake in the company.
Committees
18) Number and types of committees: The board has 5 committees- an Audit committee, a
compensation committee, governance and nominating committee, a finance committee, and an
antitrust compliance committee. The board may add new committees or remove existing committees
as it deems advisable in the fulfillment of its primary responsibilities.
a. Audit committee
b. Compensation committee
c. Governance and Nominating committee
d. Finance committee
19) Composition of committee: Committee chairperson. The audit, compensation, governance and
nominating and antitrust compliance committees consist solely of independent directors.
20) Committee Meetings and Agenda: The chairperson of each committee is responsible for
developing, together with relevant company managers, the committee‟s general agenda and
objectives and for setting the specific agenda for committee meeting.
Miscellaneous
21) Review of governance guidelines: The practices memorialized in these guidelines have developed
over a period of years. The board expects to review these guidelines at least every two years as
appropriate.
Questions:
1. List the number and types of committees.
2. Discuss the Performance evaluation planning in brief.
Section C: Applied Theory (30 Marks)
This section consists of Long Questions.
Answer all the questions.
Each question carry 15 marks each.
Detailed information should from the part of your Answer (Word limit 200 to 250 words)
1. Define corporate governance; explain the principles of corporate governance?
2. Distinguish between the Anglo-American Model and the German Model.
Examination Paper of Corporate Governance Professional
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Corporate Governance Professional
Guidelines for paper
Total No. of Questions is 100.
The minimum passing marks is 40%.
Each Question carries 1 mark.
Answer all the Questions.
Multiple Choices:
1. Corporate Governance is________.
a) About ethical conduct in business
b) Direct or indirect concerns in the organization
c) A manufacturing system
d) None of the above
2. The term corporate governance is derived from the__________.
a) Greek word
b) English word
c) French word
d) Latin word
3. The definition “Corporate Governance is the system by which business directed and controlled”
is given by a)
SEBI committee
b) OECD committee
c) Cadbury committee
d) All of the above
4. Internal control is implemented by the________.
a) Board of directors
b) Audit committee
c) Management
d) All of the above
5. OECD stands for_______________
6. Which of the following have the power to hire fire and compensate the top management?
a) Board of directors
b) Audit committee
c) Shareholders
d) Management
7. CII stands for _________________
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8. The managers are expected to act in the interest of:
a) Audit committee
b) Stakeholders
c) Employees
d) Customers
9. To endorse the organization strategy, develop directional policy, appoint, supervise and remunerate
senior executives and to ensure accountability of the organization to its owners and authorities is the
responsibility of:
a) CEO
b) Manager
c) Top management
d) Board of directors
10. SEBI stands for_________________
11. The role of corporate governance is_______
a) To ensure the efficient use of resources
b) It increases the shareholders value
c) Reduce the procurement and inventory cost
d) All of the above
12. Which of the following is not the issue of corporate governance?
a) Internal control
b) Compensation of CEO and other directors
c) Management of risk
d) Rights of corporation
13. The annual report should not include a)
How decision are taken by the board
b) The name of the chairman, CEO and other directors
c) Ability to hire management
d) The number of meeting
14. __________ is equal to the market price of his holding in shares.
a) Stakeholders wealth
b) Ethical conduct
c) Shareholder’s wealth
d) None of these
15. The key element of good corporate governance principle include a)
Honesty
b) Mutual respect
c) Performance orientation
d) All of the above
16. SOX stands for_____________________
17. The commonly accepted principle of corporate governance are___________
a) Protection of shareholders right
b) Role and responsibilities of board
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c) Interest of other stakeholders
d) All of the above
18. CII developed code of corporate governance in__________________
a) 1997
b) 1996
c) 1994
d) 1878
19. The property right is views simply as _________________
a) Planning right
b) Control right
c) Both a & b
d) None of the above
20. In which type of model the supervisory board is elected by shareholders and labor unions?
a) Japanese model
b) Anglo American model
c) German model
d) The Indian perspective
21. Which of the following come under the five principles of ethical power for organization?
a) Purpose
b) Pride
c) Patience
d) All of the above
22. Which of the following are the theories of corporate governance?
a) Shareholders theory vs. stakeholders theory
b) Stewardship theory
c) Property right theory
d) All of the above
23. The stewardship theory is__________
a) Control oriented
b) Involvement oriented
c) Both a &b
d) None of these
24. ____________ include government nominees and representatives of financial institutions.
a) Board of directors
b) Creditors, suppliers
c) Nominee directors
d) Chief executive officer
25. The __________ oversees internal control and disclosure controls and procedures for financial
reporting.
a) Nominating committee
b) Audit committee
c) Board committee
d) Higgs committee
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26. MDAR stands for_______________
27. Liaison committee designed to make a link between two groups or committees.
a) True
b) False
28. Cadbury committee established in______________
a) 1999
b) 1995
c) 1992
d) 2002
29. How many recommendation is made by CII code a)
17
b) 18
c) 16
d) 19
30. Kumar mangalam committee is appointed by the__________
a) CII
b) SEBI
c) Government
d) None of the above
31. The remuneration of the non-executive directors should be decided by the______
a) Board of directors
b) Top management
c) Stakeholders
d) Entire board
32. Which of the following committee was appointed by the SEBI to make recommendations on the
representation of independent directors on company board and the composition of audit
committee?
a) Cadbury committee
b) Kumar mangalam committee
c) Naresh Chandra committee
d) Board committee
33. Basic shareholders rights include the right to.
a) Secure methods of ownership
b) Convey or transfer shares
c) Participate and vote in general shareholder meetings
d) All of the above
34. Which of the following is use to ensure that the takeover bids are serious?
a) Disclosure
b) Trigger
c) Escrow
d) Creeping acquisition
35. Which of the following are the natures of complaints by shareholders?
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a) Non receipt of dividend
b) Change of address
c) Transmission of shares
d) All of the above
36. The word “transmission” meansa)
Transfer by operation of law
b) Transfer by operation
c) Both a & b
d) None of the above
37. Competition, debt covenants, takeover and media pressure are the_____
a) Internal corporate governance controls
b) External corporate governance control
c) Both a & b
d) None of the above
38. Simple directors who attends board meeting of a company and participate of a company and
participate in the matters before the board isa)
Ordinary directors
b) Managing directors
c) Executive directors
d) Shadow directors
39. The director who perform a specific role in a company under a service contract which requires
a regular, possibly daily, involvement in management is known as________
a) Non-executive director
b) Additional director
c) Executive director
d) Ordinary director
40. Which of the following is the duty of directors?
a) Statutory duties
b) Duties of general nature
c) Both a & b
d) None of the above
41. Which of the following are the not the general duty of directors?
a) Duty of good faith
b) Duty of care
c) Duty not to delegate
d) To disclose interest
42. A document that specifies the regulations for a company’s operation is known as________
a) Memorandum of association
b) Articles of association
c) Both a & b
d) None of the above
43. Any person, company, or other institution that owns at least one share in a company is known
as________
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a) Stakeholder
b) Employees
c) Shareholder
d) Customer
44. Nomination committee is appointed by the a)
CEO
b) Board of directors
c) Management
d) Audit committee
45. The profit earned by the company with reference to the cost of capital in terms of economic profit
is referred to as______
a) Pay-performance
b) Organization bylaws
c) Economic value added
d) None of the above
46. Which of the following are the types of the auditor?
a) Internal
b) External
c) Government
d) All of the above
47. The auditors specialize in crimes and are used by law enforcement organization when
financial documents are involved in a crime is known as_______
a) Forensic auditor
b) Government auditor
c) External auditor
d) Internal auditor
48. Set of standards against which the quality of audits is performed and may be judges is______
a) Generally accepted accounting principles
b) General accepted auditing standards
c) Audit
d) None of the above
49. A ______________ audit is a review in which an auditor analyzes and verifies various records and
processes relating to a company’s quality programs.
a) Cost audit
b) Forensic audit
c) Quality audit
d) None of the above
50. The important aspects of cost audit are_______
a) Property audit
b) Efficiency audit
c) Both a & b
d) Government audit
51. SICA stands for_______________
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52. BIFR stands for_______________
53. Basic principles of audit are_______________
a) Integrity, objectivity & independence
b) Confidentiality
c) Documentation
d) All of the above
54. As per the SEBI guidelines, the audit committee shall meet at leasta)
Twice a year
b) Thrice a year
c) Once a year
d) None of the above
55. _________________ opined that the chairman of the audit committee should be an
independent director.
a) Cadbury committee
b) Board committee
c) KM Birla committee
d) Audit committee
56. An audit committee should aware of technological changes, which is_________________
risk/condition.
a) Internal
b) External
c) Both a & b
d) None of the above
57. The committees of the board involve_________________
a) Supervisory committee
b) Risk management committee
c) Shareholders’ redressal committee
d) All of these
58. NBFCs stands for_________________
59. CSR stands for_________________
60. Which of the following is the essential of accord of Basel II?
a) Capital adequacy
b) Risk based supervision
c) Market disclosure
d) All of the above
61. Which of the following are the objectives of Basel II ?
a) To promote adequate capitalization of banks
b) To ensure better risk management
c) To strengthen the stability of banking system
d) All of the above
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62. The ganguly committee is of the view that the draft minutes of the board meeting should
be forwarded to the director’s within______________ hours of meeting.
a) 56
b) 64
c) 48
d) 32
63. In which ethical principle of the business ethics are measured by rightness of an act and depend
little on the results of this act?
a) Teleological ethical system
b) Deontological ethical system
c) Hybrid theory
d) Individual freedom
64. One of the major ethical issue in advertising is the use of______________
a) True
b) False
65. Major social responsibilities of business involve a)
Optimum utilization of scarce national resources
b) Responsibility no to make losses
c) Improve quality of life
d) All of above
66. Government is thinking of making it mandatory for the companies to spend_________________% of
their net profits on CSR.
a) 2
b) 4
c) 6
d) 8
67. It is the responsibility of the firm towards its________________ to avoid any type of cartel
formation that a attempts to reap monopoly profits.
a) Shareholders
b) Customers
c) Employees
d) Management
68. Four important group that business are shareholders, employees, customers and_________________
a) Management
b) Board of director
c) Society
d) Stakeholder
69. NGO stands for_________________
70. Employees should get_________________ wages
a) Clear
b) Minimum
c) Maximum
d) Fair
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71. Objectives of environmental audit are__________
a) Verification of legislative a nd regulatory compliance
b) Assessment of internal policy and procedural conformamance
c) Establishment of current practice status
d) All of the above
72. Review of documents and records, Review of policies, interviews are comes under which stage a)
Pre-audit stage
b) Post-audit stage
c) Audit stage
d) None
73. Environment protection act was passed in________________ for the protection of environment.
a) 1988
b) 1999
c) 1986
d) 1990
74. The financial or non-financial support of an activity, used primarily to reach the given business goals
is_______
a) Media
b) finance
c) Both a &b
d) Sponsorship
75. A printed report giving news or information of interest to a special group.
a) Newsletter
b) Formal meeting
c) Mailing list
d) Media release
76. Media can be used to promote_______________ communication.
a) One way
b) Two way
c) Both a & b
d) None of the above
77. Businesses arrange for______________ meetings with powerful stakeholders.
a) Information display
b) Public forum
c) Formal meeting
d) Informal meeting
78. MRTP stands for_________________
79. IRDA stands for_________________
80. It is said to be exist where there is a large number of procedures (firms) producing a same kind
of product.
a) Monopoly competition
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b) Monopolistic competition
c) Perfect competition
d) None of the above
81. Which of the following aspects of economic activity is not control by MRTP?
a) Restrictive on buying/selling
b) Unfair trade practices
c) Concentration of economic power
d) Restrictive trade practices
82. Price control is the restriction on maximum prices that is established and maintained by
the government.
a) True
b) False
83. Public policy is an attempt by the government to address a private issue.
a) True
b) False
84. The SEBI was established on________________
a) March 12, 1992
b) September 14, 1992
c) April 12, 1992
d) June 15, 1993
85. The seller of the security is________
a) Bear
b) Bull
c) Both a & b
d) None of the above
86. Insider trading can be defined as the sale or purchase of securities by persons who possess price
sensitive information about the company.
a) True
b) False
87. ___________ makes a commitment to get the underwritten issue subscribed either by other or by
them.
a) Utilitarianism
b) Underwriters
c) Insider trading
d) None of the above
88. The board of SEBI consists of_______________
a) 8
b) 7
c) 4
d) 6
89. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial, and quasi-executive.
a) True
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b) False
90. SEBI is the regulator for the securities market in India.
a) True
b) False
91. AMFI stands for_________________.
92. Buying a commodity at a low price and instantly selling it for a higher price in another market is
known as________
a) Hedging
b) Speculating
c) Arbitrage
d) Shifting of risk
93. An over-the-counter market where buyers and sellers conduct foreign exchange transaction.
a) Commodity exchange
b) Foreign direct investment
c) FOREX
d) None of the above
94. Licensing grant a permit to aloe the use of something or to allow a business activity to take place.
a) True
b) False
95. Government often uses quotas to restrict export.
a) True
b) False
96. Private companies can enjoy the right to transfer shares.
a) True
b) False
97. India has 22 stock exchanges.
a) True
b) False
98. Foreign companies are those, which have been incorporated outside India and conduct business
in India.
a) True
b) False
99. Clause 49 has been prepared by the Reserve Bank of India.
a) True
b) False
100. Corporate Governance ensures easy access to capital.
a) True
b) False
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IIBM Institute of Business Management
Examination Paper MM.100
Product Design & Development
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice & Short Answer type questions.
Answer all the questions.
Part One carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. The concept of a contract book is detailed by
a. Wheelwright
b. Clark
c. Both (a) & (b)
d. None of the above
2. BOM stands for Bill of Materials.(T/F)
3. Concept screening is based on a method developed by the late Stuart Pugh in the 1980s and is often
called ______________
4. _____________ is used when increased resolution will better differentiate among company concepts.
5. ________________are the first products produced by the entire production process.
6. The first commercial free-form fabrication system was introduced by 3D Systems.
a. 1984
b. 1986
c. 1964
d. 1948
7. Concepts are turned over the customer, client, or some other external entity for selection is called
a. Intuition
b. Pros and Cons
c. External decision
d. Decision materials
8. A Russian problem-solving methodology called TRIZ began to be disseminated in Europe and in the
United States in the
a. 1998
b. 1997
c. 1976
d. 1990
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9. Functional elements of a Product Architecture are ___________& _____________
10. ______________ is a key determinant of the economic success of a product.
Part Two:
1. What is “Control Drawings”.
2. Write short note on “Resource Allocation”.
3. Write short note on “Product Variety”.
4. What is “Project Risk Plan”
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
New Product Development At Smart India Ltd.
Ajay Kumar, the Vice-President, (Sales) of a leading Delhi based bicycle manufacturer of the country
called SMART LTD., was wondering at the increase in the quantum of Traffic on roads during the last 10
years, while glancing outside his office window. But not much had changed in his company in th23e year
2001. His company‟s market share was dwindling since the last 10 years, though the profits and sales
were showing an increasing trend. The threat of cheap imports was also knocking at the doors. The
competitors were using marketing strategies to the hilt in order to get larger chunk of market share. The
things were not showing improving trend despite the continuous efforts by the company. SMART LTD.
was equally poised with RUSH LTD. in respect of market share just 10 years back. Now the ground
realties were very much adverse to SMART LTD.. While RUSH LTD. was having a market share of
about 45 per cent, SMART LTD. lagged behind with only about half i.e. 23 percent closely followed by
CLIMB LTD. with 20 per cent. The rapid erosion in the market share of SMART LTD. was of concern to
Ajay Kumar, who was trying to find out ways to stop the downfall. The problem of losing market share
had become more prominent keeping in view that the bicycle business was a volume led business to an
extent. To make the matters worse, the credit rating agency had downgraded the debt instrument issued by
the company in view of a possible feud between the family members of the promoter and the majority
share holders.
An important factor in the bicycle market, which had recently gained importance, was the increasing
demand for different types of bicycles among youth, particularly those of the sports variety. Unlike in the
END OF SECTION A
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past, improved technology had led to newer varieties of bicycle ranging from the very basic to the 21 gear
models. Such value added products also provide better profit margins. Also, some manufacturers had
started rolling out products provide better profit margins. Also, some manufacturers had started rolling
out products that were not strictly bicycles but had similar technological inputs. These included exercise
bicycles popularly found in the clubs and gymnasiums. At the plant level, the top post was that of the
Joint President and was held by one of the family members. Most of the decisions were subject to the gut
feel of the Joint President.
Though perceived as „a poor man‟s product‟, the scenario was changing of late. Earlier the product was
positioned using only one plank i.e., cost effective transport utility vehicle. Now the market was being
segmented multidimensionally by all the players. Age, benefit, income, occasions etc. were the added
criteria. SMART LTD. had come up with bikes for kids, city bikes, mountain bikes and classics. This
reflected the changing needs of buyers as well. CLIMB LTD. had segmented market on the basis of
usage, road bikes, mountain bikes and tandems. SMART LTD. had also jumped to the bandwagon
recently and had introduced bikes in ladies, kids, adventure and health segments. The trend was to
increasingly use the platform of health, fun, sports etc., to increase the penetration into the market. Once
the leader in the bicycle industry had 35 models in the market with about eight colour variants for each.
The competitor RUSH LTD. had about 45 models in the market with more colour variants.
The financial stakes of introducing of a new product in the bicycle industry ranged from Rs 45000 to
a couple of lakhs. The manufacturing process of bicycle was composed of many sub-assemblies. The
synergic use of these sub-assemblies helped in reaping economies of scale. To remain to the competition,
it was imperative to introduce innovative products that could meet the differentiated needs in a better
fashion. Ajay Kumar, the Vice President (Sales) had seen a bike in a foreign magazine and had sent the
picture of the same 6 months back to design and development department. The feasibility report was still
awaited from the design and development department. He appraised the Vice-President (Production)
regarding the issue but the things still had to be sorted out. Ghanshyam, the HOD(Sales Department) had
visited Taiwan and brought designs of four bicycles which could be manufactured by the company. But
his sales division suggested that those bikes would be out of reach for the poor, therefor, the idea could
not be taken up. He was very enthusiastic over a project to launch a new bike for fun loving people. After
detailed deliberations with the production and design development department for about 8 months, the
proposal was sent to the top management for approval. He was sad, as the file was pending for about 2
months with his boss. While Ajay Kumar was pondering over the issues, his colleague from the finance
department entered into the room and said, “I was watching a movie on HBO last night, I saw a very
different kind of bike in it. Did you view it?” Ajay Kumar replied in negative and wondered what could
be the right approach for product development. He was also concerned with the time involved in the
process of development of new products.
Ajay while passing by the market simply gazed at the bicycle showroom on his way and appreciated
the speed at which the competitors were able to come up with various colour variants. Recently, Ajay
Kumar also discussed with the Vice-President (Production) regarding the experimentation with some new
colours. The officer agreed with his new proposal and assured that the same shall be forwarded to the top
management for a final decision. Ajay kumar prepared himself to wait for a long time as his experience
curve suggested. One of the only solacing fact for Ajay Kumar was the success of the bike „football‟
which they launched on the eve of soccer world cup. The bike was an instant success. A friend of Ajay
Kumar, who worked with him till last year, called upon him. He remembered how enthusiastically he was
explaining his new challenging job. He was very happy about the confidence the management had put in
him. He was also being sent abroad on training by his new employers. The sales department had
subjectively come up with the multdimensional mapping of the three major players on two relevant
attributes.
The company planned to come up with a new campaign focusing upon the environment friendliness
of bicycle over motor bikes that use fossil fuels. The government also promised to aid the concern in this
effort. One of the main strengths of SMART LTD. was its undisputed leadership in the rural areas. The
company did not intend to lose it. His main rival was also closing in for the rural market. SMART LTD.
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had initiated a restructuring exercise in 1999-2000, whereby, three new wholly owned subsidiaries were
created, each being named after the respective cycle manufacturing locations, namely, SMART LTD.
(Delhi), SMART LTD. (Gujarat) and SMART LTD. (Andhra Pradesh). Although the originally stated
intention of setting up these subsidiaries was to treat them as profit centers, current developments indicate
the likelihood of distribution of assets and liabilities into these companies.
Ajay Kumar was quite confident of the quality of the bicycles manufactured as the steel used for the
sale was produced by one of its own unit. The firm had also bagged an international award for its quality
standards. The sales figures had gone up from 250 crores in the year 1995 to 350 crores in the year 1998.
The inflow of foreign exchange showed a steady increase from 100 to 120 during the same period.
SMART LTD. was exporting bikes to more than 35 countries.
Questions:
1. How new product development process be improved at SMART LTD?
2. What strategies should be used by SMART LTD. to increase its market share.
Caselet 2
Swastik Cycles Limited
Swastik Cycles Limited was a key manufacturer of a wide variety of cycles. Its products were available
almost all over the country and were also exported. It was the second largest bicycles selling organisation
followed by Star Cycles. The total turnover of the company was Rs 400 crores during the year 1999-2000
and its market share in the year 2000-2001 was about 24%, whereas Star Cycle had captured about 46%
of the total market in the same year, rest of the market was shared by all other brands. The company had
classified its entire products into.
1. Utility segment: popularly called as the standard cycles, widely used by milkmen, hawkers, and other
lower income group people.
2. Fancy cycles: multi coloured bicycles with modern features like gear changing, stylish handle, slim
frame etc., used by kids, teenagers and sportsmen.
3. Health segment: health maintaining products i.e., walker, cycle etc., for all age group had been put
under this categorys.
The company had its strength in the utility segment and was accepted as the market leader, whereas in
other segments, it had yet to prove itself. In other segments i.e., fancy cycle segment, health segment the
Star Cycle was far ahead. The company was striving to fight the stiff competition from domestic players.
It also anticipated the competition from Chinese players who were expected to enter the Indian market
with low cost products. On account of heavy import duties levied by the government in the budget of
2001-2002, the chances of their invading the domestic market were, however, substantially minimized.
Now, the company had confined itself to win over the domestic players in these segments. The major
issue for a company was that despite their presence in the fancy cycles the segment for last 10 years they
were not able to attract the target market and the sales were lagging behind. The immediate requirement
was to push the sales of these two segments.
The company had been trying to push sales through their dealers network all over the country which
was the only intermediatory between the company and the customers. In order to fresh the desired sales
company had the policy of offering monetary and non-monetary incentives in the form of rebates on
target lifting.
In addition to it, the company also offered incentives like foreign trips to Bangkok etc. and free passes
of mega events. The company also went for some other sales promotion activities the like point of
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purchase (POP), joint promotion schemes (JPS) with dealers, in which the dealers offered gifts on every
purchase to their customers and the cost incurred was born jointly by the company and the dealer
concerned. Cycle races organised by schools and educational institutes were other promotional measures
adopted by the company.
The company had invested marginally in advertising. They ran the show through print media and the
advertisement on the electronic media was very low. Decision making regarding promotional activities
was centralized with the corporate office, whereas, other decisions regarding sales, R&D and production
could be taken by the respective units. The field force comprising of sales executives and field officers
who were in constant touch with the dealers and the customers for getting their feedbacks regarding sales
promotion strategies, used to send the feedbacks to the corporate office for further processing and
decision making. This consumed time and little was left with the particular unit to decide.
The changing trends in the markets gave enough scope to make the bicycle popular amongst the elite
class in the form of health maintaining products, pollution free vehicles etc. Though the company was
making efforts to tap this newly emerging customer group by offering them health maintaining cycles,
stylish racing cycles, yet it was a hard task for the company because it had not made any strategy to reach
the customers directly to bring about awareness of the products. To improve its market share and
maximize sales, a lot was required to be done by the company to devise the marketing strategies if it was
to cope up with the changed market scenario and the strategies adopted by its competitors.
Questions:
1. Discuss key problem faced by Swastik Cycles?
2. Design an appropriate marketing strategy comprising of all the essentials to overcome this problem.
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Many product development teams separate the “looks like” prototype from the “works like”
prototype. They do this because integrating both function and from is difficult in the early phase of
development. What are the strengths and weaknesses of this approach? For what types of products
might this approach be dangerous?
2. The argument for the motorcycle architecture is that it allows for a lighter motorcycle than the more
modular alternative. What are the other advantages and disadvantages? Which approach is likely to
cost less to manufacture?
END OF SECTION B
END OF SECTION C
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Examination Paper MM.100
Quantitative Techniques
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice questions & Short Answer type questions.
Answer all the questions.
Part One carries 0.5 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. The value of 3n+4 - 6.3n+1 is
a. 27.3n+1
b. 21.3n-1
c. 21.3n+1
d. 27.3n-1
e. 21.3-n-1
2. The value of x which satisfies the question x/2-x/4=x-9 is
a. 12
b. 14
c. 16
d. 18
e. 20
3. The sum of 5ax-7by+cz and ax+2by-cz is
a. 6ax+5by
b. 6ax-5by
c. 6ax+5by-2cz
d. 6ax-5by-cz
e. 6ax-5by+2cz.
4. The product of 3x-5 and 2x+7 is
a. 6x2-11x-35
b. 6x2-11x+35
c. 6x2+11x-35
d. 6x2 +10x-35
e. 6x2+11x+35
5. The 37th term in the series -2.8, 0, 2.8,…. Is
a. 98
b. 89
c. 87
d. 78
e. 68
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6. The sum of the series 14, 64, 114, … to 20 terms is
a. 7890
b. 8970
c. 9780
d. 10820
e. 10920
7. The last term in the series 2, 4, 8, … to 9 terms is
a. 612
b. 512
c. 412
d. 312
e. 212
8. If an unbiased coin is tossed 3 times then the probability that at least one head occurs is
a. 0.875
b. 0.5
c. 0.375
d. 0.125
e. 0.1.
9. Again in continuation with the above question the probability that 3 heads result is
a. 0.100
b. 0.125
c. 0.250
d. 0.500
e. 0.875
10. The line y=5-10x cuts the y axis at_________ and has slope________
a. (0,10), -5
b. (0,-10), 5
c. (0,5), -10
d. (0,-5), 10
e. (0,5), 10
11. If y=F(x) is the equation of a line then the slope at (5,2) is given by
a. F‟(2)
b. F‟(5)
c. F(2)
d. F(5)
e. None of the above
12. Slope of the line passing through the points (4,4) and (5,5) is
a. 1
b. 9
c. 1/9
d. 20
e. 1/20
13. An „Ogive‟ is
a. A graph of ungrouped data
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IIBM Institute of Business Management
b. A graph of grouped data
c. A graph of cumulative frequencies
d. A graph of ranges of fractiles
e. A graph with rectangles as opposed to a line graph.
14. If p=3x4 + 9xy + y3 then ∂p/∂y is given by
a. 12x3+9x
b. 12x3+9x+3y2
c. 9x+3y2
d. 9y+3y3
e. 12x3+9y+3y2
15. For a function f(x), f‟(x)=0 at x=a then „a‟ is a point of minima if
a. F(a)<0
b. F(a)=0
c. F‟‟(a)=0
d. F‟‟(a)< 0
e. F‟‟(a)>0
16. The function 2x2 + 3x +2 has a
a. Maximum value at x = - 3/4
b. Minimum value at x = - 2
c. Maximum value at x = -3/2
d. Minimum value at x = -3/4
e. The equation has no maxima and minima.
17. The probability of getting exactly 3 heads in four tosses of a fair coin is
a. 1/2
b. 1/4
c. 1/8
d. 1/10
e. 1/16
18. In multiple regression, the number of normal equations will be
a. Two
b. Three
c. One
d. More than three
e. More than or equal to three
19. The index of industrial production is an example of
a. Price index
b. Value index
c. Quality index
d. Relative index
e. Industrial production index
20. As the sample size is increased, the standard error of the mean would
a. Increase
b. Decrease
c. Remain unchanged
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d. May or may not increase
e. The value of sample mean would be lot closer of population mean
Part Two:
1. What do you understand by „Infeasibility‟ of the solution?
2. Write about „Big – M‟ method for minimization.
3. Write about the „Classical Economic Order Quantity (EOQ) models.
4. Write a short note on „Interfering Float‟.
Section B: Practical Problems (40 marks)
This section consists of Practical Problems.
Answer all the questions.
Each Practical Problems carries 20 marks.
1. A car retailer thinks that a 40,000 mile claim for tire life by the manufacturer is too high. She
carefully records the mileage obtained from a sample of 64 such tires. The mean turns out to be
38,500 miles. The standard deviation of the life of all tires of this type has previously been
calculated by the manufacturer to be 7,600 miles. Assuming that the mileage is normally
distributed, determine the largest significance level at which we should accept the manufacturer‟s
mileage claim, that is, at which we would not conclude the mileage is significantly less than
40,000 miles.
2. Consider the following data:
Output Total Cost
(in lakhs of units) (in lakhs of rupees)
5 140
7 155
9 170
11 180
14 200
17 230
20 240
22 260
24 275
28 310
Identify the fixed and variable cost components using the least squares method.
END OF SECTION A
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Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. In a recent survey, senior company executives in five metros has ranked two former finance ministers
Mr. Manmohan Singh and Mr. P. Chindambaram as first and second and the present finance minister
Mr. Yashwant Sinha in third position as regarding their popularity.In this, an example of sampling
survey? Discuss about necessity of sampling and the different methods of sampling?
2. “Index numbers are an indispensible tool in day to day life. Comment. Also, explain with examples
how index numbers provide a summary measurement of movements of a large number of economic
variables. Is there a possibility that, their method of computation could give a distorted picture of
reality?
S-2-300813
END OF SECTION B
END OF SECTION C
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