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Examination Paper

IIBM Institute of Business Management 1

IIBM Institute of Business Management

Examination Paper MM.50

Corporate Governance

Section A: OBJECTIVE TYPE (20 marks)

• This section consists of Multiple choice questions.

• Answer all the questions.

• Questions carry 1 mark each.

1. In the second version of McKinsey’s model called “the Central model” governance chain is

represented by

a. Well-developed equity market & dispersed ownership

b. Underdeveloped equity market & concentrated ownership

c. Well-developed equity market & concentrated ownership

d. Underdeveloped equity market & dispersed ownership

2. Corporate governance refers to a combination of law, rules, regulations and

a. Value

b. Wealth

c. Voluntary practices

d. Customer Satisfaction

3. ____________, is one of the major tools. Corporations use to direct persuasive communication to

target buyers & the public.

a. Advertising

b. Media

c. Press

d. None

4. Policy adopted by the monetary authority with respect to the supply of money is called

a. Monetary Policy

b. Fiscal Policy

c. Budgetary Policy

d. Economic Policy

5. Cash reserve requirements refer to the

a. Purchase & Sale of government securities & other approved securities by the Central bank.

b. Changes in bank rate by the Central Bank

c. That portion of bank’s total cash reserves which they are statutorily required to hold with the

RBI.

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IIBM Institute of Business Management 2

d. The particular level of liquid ity maintained by commercial banks.

6. This committee was set up in January 1995 to identify good practices by the confederation of

British Industry (CBI)

a. The Paul Ruthman Committee

b. The Greenbury Committee, 1995

c. Cadbury Committee, 1995

d. The Hampel Committee,1995

7. ______________, plays a significant role in the growth of the corporate sector by providing them

finance for their Operations.

a. Investors

b. Bank

c. Organization

d. None

8. The first stock market scam was one which involved both the bond and equity markets in India.

a. MNC’s efforts at Consolidation of ownership, 1993

b. Vanishing Companies Scam, 1993-94

c. M. S. Shoes, 1994

d. Harshad Mehta scam, 1992

9. Debt purchasers provide finance in return for a promised stream of payments & a variety of other

convenants pertaining to corporate behavior, such as the value and risk of corporate assets. These

are called

a. Concentrated Debt

b. Diffused Debt

c. Creditor Incentives

d. Debt Collection

10. A person having control over the direction, conduct, management or superintendence of then

affairs of a company is called

a. Director

b. Co- director

c. Board members

d. None

11. A director who is not duly appointed but acts as a director is known as a

a. Fraudulent Person

b. De Facto

c. De Jure

d. None

12. This type of auditors are usually referred to as a CPA (Certified Public Accountants) firms

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IIBM Institute of Business Management 3

a. Internal auditors

b. Independent auditors

c. Government auditors

d. None

13. To introduce corporate governance practices in the banking sector the recommendations of the

working group of directors of financial Institutions known as the

a. Ganguly Group

b. Policy Implication

c. Government Control

d. Withdrawal effects

14. It is a manipulative method where one buy the power or the influence of others persons in order

to satisfy his selfish need.

a. Coercion

b. Tax Evasion

c. Bribery

d. Insider Trading

15. This model supports the idea of multiple interests of stakeholders rather than shareholders interest

alone

a. The Social Entity Theory

b. Trusteeship Model

c. The Pluralistic Model

d. Social Responsibility

16. This policy was released in August by the Ministry of Environment & Forests (MOEF) for

Public discussion

a. The National Environment Policy, 2004

b. Draft Policy

c. Biodiversity Conservation

d. Forest & wildlife Conservation

17. Out of the following which Committee appointed to examine all current Capital market

regulations & to suggest amendments to them

a. SEBI

b. Dhanuka Committee

c. Primary Market Reforms

d. None

18. Out of the following which one sentence is the true

a. It lays down the framework for creating long-term trust between companies & the external

provides of capital

b. It rationalizes the management and monitoring of risks a firm faces globally

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IIBM Institute of Business Management 4

c. It does not limits the liability of the top management 7 directors by carefully articulating the

decision making process

d. It never ensures the integrity of financial reports.

19. Out of the following which is the responsibility of an Auditor

a. Whether loans & advances made by the company on the basis of security have been properly

secured.

b. Whether loans & advances made by the company have been shown as deposits.

c. Whether personal expenses have been charged to revenue account

d. He has to ensure that his work involves exercise of judgment.

20. This theory assumes that managers are basically trustworthy and attach significant value to their

own personal reputation

a. Agency Theory

b. Stewardship Theory

c. Stakeholder Approaches

d. Sociological Theory

SECTION B: Short Notes (10 marks)

• This section consists of short notes.

• Answer all the questions.

• Each Short Note carries 5 marks.

1. What is clause 49?

2. Explain Board of Directors & Corporate Governance?

SECTION C: APPLIED THEORY (20 marks)

• This section consists of Long Questions.

• Answer all the questions.

• Each question carries 10 marks.

• Detailed information should from the part of your answer (Word limit 150 to 200 words).

END OF SECTION B

END OF SECTION A

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IIBM Institute of Business Management 5

1. Banks are also using concept of Corporate Governance. Explain why Corporate Governance is

widely used in Banks. Also state few sound Corporate Governance Practices.

2. What is ethics & state why ethics is necessary in Business and also state the importance and need

of business ethics?

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END OF SECTION C

Semester II Examination Papers

IIBM Institute of Business Management

IIBM Institute of Business Management

Semester-II Examination Paper MM.100

Production and Operation Management

Section A: Objective Type (30 marks)

• This section consists of Multiple choice questions & Short Notes type questions.

• Answer all the questions.

• Part One questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple choices:

1. If the number of restrictions on sources be ‘a’ and the number of restrictions on destinations be

‘b’ then with the use of ‘stepping stone procedure’, the number of ‘used cells’ will be

a. a+b+1

b. a+b+2

c. a-b-1

d. a+b-1

2. Value of smoothing coefficient ‘α’ lies

a. Between 1 and ∞

b. Between 0 and 1

c. Between -1 and 1

d. Between 1 and 2

3. Forecasting error is

a. The difference between forecasted demand and actual demand

b. The ratio of forecasted demand and actual demand

c. The difference between the standard forecast demand and the evaluated forecast demand

d. Ratio of standard forecast demand and the evaluated forecast demand

4. For forecasting the analyzers plot the demand data on a time scale, study the plot and then look

for the consistent patterns. Now what does the high noise mean to these patterns

a. Many of the point lie away from the pattern

b. Most of the points lie close to the pattern

c. All the points lie on the pattern

d. None

5. Payback period is

a. The length of time after which the production starts

b. The length of time after which the selling starts

c. The length of time required to recover the investment

d. The length of time for which firm bears replacement of the good.

Semester II Examination Papers

IIBM Institute of Business Management

6. Salvage value is the income from

a. Selling an asset

b. Buying an asset

c. Bargaining in selling

d. Price raised stock

7. On total factor basis ‘Productivity’ is given by x/y, where ‘y’ is

a. Labor + Capital +Materials

b. Labor + Capital + Materials + Energy

c. Capital

d. Capital + Materials

8. Economic efficiency is given by

a. Input /output

b. Input /100

c. (Output-input)/input

d. Output /input

9. This implies an effective management that ensures an organization’s long-term commitment to

the continuous improvement of quality.

a. Quality management

b. Strategic management

c. Total quality management

d. Operations management

10. This techniques for improving productivity involves analyzing the operations of the product or

service, estimate the value of each operation, and modifying (or) improving that operation so that

the cost is lowered.

a. Value engineering

b. Time-event network

c. Work simplifications

d. Quality circles

Part Two:

1. What are the different types of models in production and operation management?

2. Define ‘Depreciation’.

3. What do you understand by ‘Bias’?

4. What are ‘Learning curves’?

END OF SECTION A

Semester II Examination Papers

IIBM Institute of Business Management

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

COMPANY BACKGROUND

The Bronson Insurance Group was originally founded in 1900 in Auxvasse, Missouri, by James Bronson.

The Bronson Group owns a variety of companies that underwrite personal and commercial insurance

policies. Annual sales of the Bronson Group are $100 million. In recent years, the company has suffered

operating losses. In 1990, the company was heavily invested in computer hardware and software. One of

the problems the Bronson Group faced (as well as many insurance companies) was a conflict between

established manual procedures and the relatively recent (within the past 20 years) introduction of

computer equipment. This conflict was illustrated by the fact that much information was captured on

computer but paper files were still kept for practical and legal reasons.

FILE CLERKS

The file department employed 20 file clerks who pulled files from stacks, refilled used files, and delivered

files to various departments including commercial lines, personal lines, and claims. Once a file clerk

received the file. Clerks delivered files to underwriters on an hourly basis throughout the day. The

average file clerk was paid $8,300 per year. One special file clerk was used full time to search for

requested files that another file clerk had not been able to find in the expected place. It was estimated that

40 percent of the requested files were these “no hit” files requiring a search. Often these “no hit” files

were eventually found stacked in the requester’s office. The primary “customers” of the file clerks were

underwriters and claims attorneys.

UNDERWRITING

Company management and operations analysts were consistently told that the greatest problem in the

company was the inability of file clerks to supply files in a speedy fashion. The entire company from top

to bottom viewed the productivity and effectiveness of the department as unacceptable. An underwriter

used 20-50 files per day. Because of their distrust of the files department, underwriters tended to hoard

often used files. A count by operations analysts found that each underwriter kept from 100-200 files in his

or her office at any one time. An underwriter would request a file by computer and work on other

business until the file was received. Benson employed 25 underwriters.

MANAGEMENT INFORMATION SYSTEM

Upper management was deeply concerned about this problem. The MIS department had suggested using

video disks as a possible solution. A video disk system was found that would be sufficient for the