Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Financial Management
Section A: Objective Type (30 marks)
•?This section consists of multiple choice & Short Notes.
•?Answer all the questions.
•?Part One carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. The approach focused mainly on the financial problems of corporate enterprise
a. Ignored non-corporate enterprise
b. Ignored working capital financing
c. External approach
d. Ignored routine problems
2. These are those shares, which can be redeemed or repaid to the holders after a lapse of the
stipulated period
a. Cumulative preference shares
b. Non-cumulative preference shares
c. Redeemable preference shares
d. Perpetual shares
3. This type of risk arise from changes in environmental regulations, zoning requirements, fees,
licenses and most frequently taxes
a. Political risk
b. Domestic risk
c. International risk
d. Industry risk
4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment
proposal
a. Future cost
b. Specific cost
c. Spot cost
d. Book cost
5. This concept is helpful in formulating a sound & economical capital structure for a firm
a. Financial performance appraisal
b. Investment evaluation
c. Designing optimal corporate capital structure
d. None
Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
6. It is the minimum required rate of return needed to justify the use of capital
a. From investors
b. Firms point
c. Capital expenditure point
d. Cost of capital
7. It arises when there is a conflict of interest among owners, debenture holders and the management
a. Seasonal variation
b. Degree of competition
c. Industry life cycle
d. Agency costs
8. Some guidelines on shares & debentures issued by the government that are very important for the
constitution of the capital structure are
a. Legal requirement
b. Purpose of finance
c. Period of finance
d. Requirement of investors
9. It is that portion of an investments total risk that results from change in the financial integrity of
the investment
a. Bull- bear market risk
b. Default risk
c. International risk
d. Liquidity risk
10. _____________ measure the systematic risk of a security that cannot be avoided through
diversification
a. Beta
b. Gamma
c. Probability distribution
d. Alpha
Part Two:
1. What is Annuity kind of cash flow?
2. What do understand by Portfolio risk?
3. What do you understand by ‘Loan Amortization’?
4. What is the Difference between NPV and IRR?
END OF SECTION A
Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
Section B: Case lets (40 marks)
•?This section consists of Case lets.
•?Answer all the questions.
•?Each Case let carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Case let 1
This case provides the opportunity to match financing alternatives with the needs of different companies.
It allows the reader to demonstrate a familiarity with different types of securities. George Thomas was
finishing some weekend reports on a Friday afternoon in the downtown office of Wishart and Associates,
an investment-banking firm. Meenda, a partner in the firm, had not been in the New York office since
Monday. He was on a trip through Pennsylvania, visiting five potential clients, who were considering the
flotation of securities with the assistance of Wishart and Associates. Meenda had called the office on
Wednesday and told George's secretary that he would cable his recommendations on Friday afternoon.
George was waiting for the cable. George knew that Meenda would be recommending different types of
securities for each of the five clients to meet their individual needs. He also knew Meenda wanted him to
call each of the clients to consider the recommendations over the weekend. George was prepared to make
these calls as soon as the cable arrived. At 4:00 p.m. a secretary handed George the following telegram.
George Thomas, Wishart and Associates STOP Taking advantage of offer to go skiing in Poconos STOP
Recommendations as follows: (1) common stock, (2) preferred stock, (3) debt with warrants, (4)
convertible bonds, (5) callable debentures STOP. See you Wednesday STOP Meenda. As George picked
up the phone to make the first call, he suddenly realized that the potential clients were not matched with
the investment alternatives. In Meenda's office, George found folders on each of the five firms seeking
financing. In the front of each folder were some handwritten notes that Meenda had made on Monday
before he left. George read each of the notes in turn. APT, Inc needs $8 million now and $4 million in
four years. Packaging firm with high growth rate in tri-state area. Common stock trades over the counter.
Stock is depressed but should rise in year to 18 months. Willing to accept any type of security. Good
management. Expects moderate growth. New machinery should increase profits substantially. Recently
retired $7 million in debt. Has virtually no debt remaining except short-term obligations.
Sandford Enterprises
Needs $16 million. Crusty management. Stock price depressed but expected to improve. Excellent growth
and profits forecast in the next two year. Low debt-equity ratio, as the firm has record of retiring debt
prior to maturity. Retains bulk of earnings and pays low dividends. Management not interested in
surrendering voting control to outsiders. Money to be used to finance machinery for plumbing supplies.
Sharma Brothers., Inc.
Needs $20 million to expand cabinet and woodworking business. Started as family business but now has
1200 employees, $50 million in sales, and is traded over the counter. Seeks additional shareholder but not
willing to stock at discount. Cannot raise more than $12 million with straight debt. Fair management.
Good growth prospects. Very good earnings. Should spark investor's interest. Banks could be willing to
lend money for long-term needs.
Sacheetee Energy Systems
The firm is well respected by liberal investing community near Boston area. Sound growth company.
Stock selling for $16 per share. Management would like to sell common stock at $21 or more willing to
Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
use debt to raise $ 28 million, but this is second choice. Financing gimmicks and chance to turn quick
profit on investment would appeal to those likely to invest in this company.
Ranbaxy Industry
Needs $25 million. Manufactures boat canvas covers and needs funds to expand operations. Needs longterm
money. Closely held ownership reluctant surrender control. Cannot issue debt without permission of
bondholders and First National Bank of Philadelphia. Relatively low debt-equity ratio. Relatively high
profits. Good prospects for growth Strong management with minor weaknesses in sales and promotion
areas. As George was looking over the folders, Meenda's secretary entered the office. George said, "Did
Meenda leave any other material here on Monday except for these notes?” She responded, "No, that's it,
but I think those notes should be useful. Meenda called early this morning and said that he verified the
facts in the folders. He also said that he learned nothing new on the trip and he sort of indicated that, he
had wasted his week, except of course, that he was invited to go skiing at the company lodge up there".
George pondered over the situation. He could always wait until next week, when he could be sure that he
had the right recommendations and some of the considerations that outlined each client's needs and
situation. If he could determine which firm matched each recommendation, he could still call the firms by
6:00 P.M. and meet the original deadline. George decided to return to his office and match each firm with
the appropriate financing.
Question:
1. Which type of financing is appropriate to each firm?
2. What types of securities must be issued by a firm which is on the growing stage in order to meet
the financial requirements?
Case let 2
This case has been framed in order to test the skills in evaluating a credit request and reaching a correct
decision. Perluence International is large manufacturer of petroleum and rubber-based products used in a
variety of commercial applications in the fields of transportation, electronics, and heavy manufacturing.
In the northwestern United States, many of the Perluence products are marketed by a wholly-owned
subsidiary, Bajaj Electronics Company. Operating from a headquarters and warehouse facility in San
Antonio, Strand Electronics has 950 employees and handles a volume of $85 million in sales annually.
About $6 million of the sales represents items manufactured by Perluence. Gupta is the credit manager at
Bajaj electronics. He supervises five employees who handle credit application and collections on 4,600
accounts. The accounts range in size from $120 to $85,000. The firm sells on varied terms, with 2/10, net
30 mostly. Sales fluctuate seasonally and the average collection period tends to run 40 days. Bad-debt
losses are less than 0.6 per cent of sales. Gupta is evaluating a credit application from Booth Plastics, Inc.,
a wholesale supply dealer serving the oil industry. The company was founded in 1977 by Neck A. Booth
and has grown steadily since that time. Bajaj Electronics is not selling any products to Booth Plastics and
had no previous contact with Neck Booth. Bajaj Electronics purchased goods from Perluence
International under the same terms and conditions as Perluence used when it sold to independent
customers. Although Bajaj Electronics generally followed Perluence in setting its prices, the subsidiary
operated independently and could adjust price levels to meet its own marketing strategies. The Perluence's
cost-accounting department estimated a 24 per cent markup as the average for items sold to Pucca
Electronics. Bajaj Electronics, in turn, resold the items to yield a 17 per cent markup. It appeared that
these percentages would hold on any sales to Booth Plastics. Bajaj Electronics incurred out-of pocket
expenses that were not considered in calculating the 17 per cent markup on its items. For example, the
contact with Booth Plastics had been made by James, the salesman who handled the Glaveston area.
Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
James would receive a 3 per cent commission on all sales made Booth Plastics, a commission that would
be paid whether or not the receivable was collected. James would, of course, be willing to assist in
collecting any accounts that he had sold. In addition to the sales commission, the company would incur
variable costs as a result of handling the merchandise for the new account. As a general guideline,
warehousing and other administrative variable costs would run 3 per cent sales. Gupta Holmstead
approached all credit decisions in basically the same manner. First of all, he considered the potential
profit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming that
Neck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup on these
sales since the average markup was calculated on the basis of the customer taking the discount. If Neck
Booth did not take the discount, the markup would be slightly higher, as would the cost of financing the
receivable for the additional period of time. In addition to the potential profit from the account, Gupta was
concerned about his company's exposure. He knew that weak customers could become bad debts at any
time and therefore, required a vigorous collection effort whenever their accounts were overdue. His
department probably spent three times as much money and effort managing a marginal account as
compared to a strong account. He also figured that overdue and uncollected funds had to be financed by
Bajaj Electronics at a rate of 18 per cent. All in all, slow -paying or marginal accounts were very costly to
Bajaj Electronics. With these considerations in mind, Gupta began to review the credit application for
Booth Plastics.
Question:
1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth
Plastics and give your views to increase the profit.
2. Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of
credit limit that electronics give to Booth Plastics.
Section C: Applied Theory (30 marks)
•?This section consists of applied theory questions.
•?Answer all the questions.
•?Each question carries 15 marks each.
•?Detailed information should form the part of your answer (Word limit 200-250 words).
1. Honey Well Company is contemplating to liberalize its collection effort. Its present sales are Rs.
10 lakh, its average collection period is 30 days, its expected variable cost to sales ratio is 85 per
cent and its bad debt ratio is 5 per cent. The Company’s cost of capital is 10 per cent and tax are
is 40 per cent. He proposed liberalization in collection effort increase sales to Rs. 12 lakh
increases average collection period by 15 days, and increases the bad debt ratio to 7 percent.
Determine the change in net profit.
2. Explain the concept of working capital. What are the factors which influence the working capital?
S-1-91110
END OF SECTION B
END OF SECTION C
Examination Paper Semester I: Human Resource Management
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Human Resource Management
Section A: Objective Type (30 marks)
•?This section consists of multiple choice & Short Notes type questions.
•?Answer all the questions.
•?Part one carries 1 mark each & Part two carries 5 marks each.
Part One:
Multiple choices:
1. It is a cultural attitude marked by the tendency to regard one’s own culture as superior to others
a. Geocentrism
b. Polycentrism
c. Ethnocentrism
d. Egocentrism
2. It is the systemic study of job requirements & those factors that influence the performance of
those job requirements
a. Job analysis
b. Job rotation
c. Job circulation
d. Job description
3. This Act provides an assistance for minimum statutory wages for scheduled employment
a. Payment of Wages Act, 1936
b. Minimum Wages Act, 1948
c. Factories Act, 1948
d. Payment of Gratuity act, 1972
4. __________ is the actual posting of an employee to a specific job
a. Induction
b. Placement
c. Attrition
d. None
5. Broadening an individual’s knowledge, skills & abilities for future responsibilities is known as
a. Training
b. Development
c. Education
d. Mentoring
Examination Paper Semester I: Human Resource Management
IIBM Institute of Business Management
6. Change that is designed and implemented in an orderly and timely fashion in anticipation of
future events
a. Planned change
b. Technology change
c. Structural change
d. None
7. It is a process for setting goals and monitoring progress towards achieving those goals
a. Performance appraisal
b. Performance gap
c. Performance factor
d. Performance management system
8. A method which requires the rates to provide a subjective performance evaluation along a scale
from low to high
a. Assessment centre
b. Checklist
c. Rating scale
d. Monitoring
9. It is the sum of knowledge, skills, attitudes, commitment, values and the liking of the people in an
organization
a. Human resources
b. Personal management
c. Human resource management
d. Productivity
10. A learning exercise representing a real-life situation where trainees compete with each other to
achieve specific objectives
a. Executive development
b. Management game
c. Programmed learning
d. Understudy
Part Two:
1. Explain the importance of Career Planning in industry.
2. Write the features of HRM.
3. Briefly explain the concept of Performance Appraisal.
4. Explain On-Job and Off Job Training.
END OF SECTION A
Examination Paper Semester I: Human Resource Management
IIBM Institute of Business Management
Section B: Case lets (40 marks)
•?This section consists of Case lets.
•?Answer all the questions.
•?Each Case let carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150-200 words).
Case let 1
Trust them with knee-jerk reactions," said Vikram Koshy, CEO, Delta Software India, as he looked at the
quarterly report of Top Line Securities, a well-known equity research firm. The firm had announced a
downgrade of Delta, a company listed both on Indian bourses and the NASDAQ. The reason? "One out
of every six development engineers in the company is likely to be benched during the remaining part of
the year." Three analysts from Top Line had spent some time at Delta three weeks ago. Koshy and his
team had explained how benching was no different from the problems of excess inventory, idle time, and
surplus capacity that firms in the manufacturing sector face on a regular basis, "Delta has witnessed a
scorching pace of 30 per cent growth during the last five years in a row," Koshy had said, "What is
happening is a corrective phase." But, evidently, the analysts were unconvinced.
Why Bench?
Clients suddenly decide to cut back on IT spends Project mix gets skewed, affecting work allocation
Employee productivity is set to fall, creating slack working conditions. High degree of job specialization
leads to redundancy
What are the options?
Quickly cut costs in areas which are non-core look for learning’s from the manufacturing sector Focus on
alternative markets like Europe and Japan Move into products, where margins are better. Of course, the
Top Line report went on to cite several other "signals," as it said: the rate of annual hike in salaries at
Delta would come down to 5 per cent (from between 20 and 30 per cent last year); the entry-level intake
of engineers from campuses in June 2001, would decline to 5 per cent (unlike the traditional 30 per cent
addition to manpower every year); and earnings for the next two years could dip by between 10 and 12
per cent. And the loftiest of them all: "The meltdown at Nasdaq is unlikely to reverse in the near future."
"Some of the signals are no doubt valid. And ominous," said Koshy, addressing his A-Team, which had
assembled for the routine morning meeting. "But, clearly, everyone is reading too much into this business
of benching. In fact, benching is one of the many options that our principals in the US have been pursuing
as part of cutting costs right since September, 2000. They are also expanding the share of off-shore jobs.
Five of our principals have confirmed that they would outsource more from Delta in India-which is likely
to hike their billings by about 30 per cent. At one level, this is an opportunity for us. At another, of
course, I am not sure if we should be jubilant, because they have asked for a 25-30 per cent cut in billing
rates. Our margins will take a hit, unless we cut costs and improve productivity." "Productivity is clearly a
matter of priority now," said Vivek Varadan, Vice-President (Operations). "If you consider benching as a
non-earning mode, we do have large patches of it at Delta. As you are aware, it has not been easy to
secure 70 per cent utilization of our manpower, even in normal times. I think we need to look at why we
have 30 per cent bench before examining how to turn it into an asset." "There are several reasons,"
remarked Achyut Patwardhan, Vice-President (HR). "And a lot of it has to do with the nature of our
business, which is more project-driven than product-driven. When you are managing a number of
overseas and domestic projects simultaneously, as we do at Delta, people tend to go on the bench. They
wait, as they complete one project, and are assigned the next. There are problems of coordination between
projects, related to the logistics of moving people and resources from one customer to another. In fact, I
am fine-tuning our monthly manpower utilization report to provide a breakup of bench costs into
Examination Paper Semester I: Human Resource Management
IIBM Institute of Business Management
specifics-leave period, training programmes, travel time, buffers, acclimatization period et al." "It would
be worthwhile following the business model used by US principal Techno Inc," said Aveek Mohanty,
Director (Finance). "The company has a pipeline of projects, but it does not manage project by project.
What it does is to slice each project into what it calls 'activities'. For example, communication
networking; user interface development; scheduling of processes are activities common to all projects.
People move from one project to another. It is somewhat like the Activity Based Costing. It throws up the
bench time straightaway, which helps us control costs and revenue better." "I also think we should reduce
our dependence on projects and move into products," said Praveen Kumar, Director (Marketing). "That is
where the opportunity for brand building lies. In fact, now is the time to get our technology guys involved
in marketing. Multiskilling helps reduce the bench time." "Benching has an analogy in the manufacturing
sector," said Girish Shahane, Vice-President (Services). "We could look for learning's there. Many firms
have adopted Just-In-Time (JIT) inventory as part of eliminating idle time. It would be worthwhile
exploring the possibility of JIT. But the real learning lies in standardization of work. It is linked to what
Mohanty said about managing by activities." "At a broader level, I see several other opportunities," said
Koshy, "We can fill in the space vacated by US firms and move up the value chain. But before we do so,
Delta should consolidate its position as the premier outsourcing centre. Since there are only two ways in
which we can generate revenue-sell expertise or sell products-we should move towards a mix of both.
Tie-ups with global majors will help. Now is the time to look beyond the US and strike alliances with
firms in Europe- and also Japan-as part of developing new products for global markets."
Questions
1. Should benching be a matter of concern at Delta?
2. What are the risks involved in moving from a project-centric mode to a mix of projects and
products?
Case let 2
The contexts in which human resources are managed in today's organizations are constantly, changing.
No longer do firms utilize one set of manufacturing processes, employ a homogeneous group of loyal
employees for long periods of time or develop one set way of structuring how work is done and
supervisory responsibility is assigned. Continuous changes in who organizations employ and what these
employees do require HR practices and systems that are well conceived and effectively implemented to
ensure high performance and continued success.
1. Automated technologies nowadays require more technically trained employees possessing multifarious
skills to repair, adjust or improve existing processes. The firms can't expect these employees (Gen X
employees, possessing superior technical knowledge and skills, whose attitudes and perceptions toward
work are significantly different from those of their predecessor organizations: like greater self control,
less interest in job security; no expectations of long term employment; greater participation urge in work
activities, demanding opportunities for personal growth and creativity) to stay on without attractive
compensation packages and novel reward schemes.
2. Technology driven companies are led by project teams, possessing diverse skills, experience and
expertise. Flexible and dynamic organizational structures are needed to take care of the expectations of
managers, technicians and analysts who combine their skills, expertise and experience to meet changing
customer needs and competitive pressures.
3. Cost cutting efforts have led to the decimation of unwanted layers in organizational hierarchy in recent
times. This, in turn, has brought in the problem of managing plateau employees whose careers seem to
have been hit by the delivering process. Organizations are, therefore, made to find alternative career paths
for such employees.
Examination Paper Semester I: Human Resource Management
IIBM Institute of Business Management
4. Both young and old workers, these days, have values and attitudes that stress less loyalty to the
company and more loyalty to oneself and one's career than those shown by employees in the past,
Organizations, therefore, have to devise appropriate HR policies and strategies so as to prevent the flight
of talented employees
Question
1. Discuss that technological breakthrough has brought a radical changes in HRM.
Section C: Applied Theory (30 marks)
•?This section consists of applied theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 150-200 words).
1. Several types of interviews are commonly used depending on the nature & importance of the
position to be filled within an organization. Explain the different types of Interviews.
2. Explain the legal provisions regarding safety of workers.
S-1-191110
END OF SECTION B
END OF SECTION C
Examination Paper Semester I: Managerial Economics
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Managerial Economics
Section A: Objective Type (30 marks)
•?This section consists of multiple choices & Short notes type questions.
•?Answer all the questions.
•?Part one carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. It is a study of economy as a whole
a. Macroeconomics
b. Microeconomics
c. Recession
d. Inflation
2. A comprehensive formulation which specifies the factors that influence the demand for the
product
a. Market demand
b. Demand schedule
c. Demand function
d. Income effect
3. It is computed when the data is discrete and therefore incremental changes is measurable
a. Substitution effect
b. Arc elasticity
c. Point elasticity
d. Derived demand
4. Goods & services used for final consumption is called
a. Demand
b. Consumer goods
c. Producer goods
d. Perishable goods
5. The curve at which satisfaction is equal at each point
a. Marginal utility
b. Cardinal measure of utility
c. The Indifference Curve
d. Budget line
Examination Paper Semester I: Managerial Economics
IIBM Institute of Business Management
……………………….
3. What is ‘Prisoner’s Dilemma’, of non cooperative game?
4. What is ‘Third degree Discrimation’?
END OF SECTION A
Examination Paper Semester I: Managerial Economics
IIBM Institute of Business Management
Section B: Case lets (40 marks)
•?This section consists of Case lets.
•?Answer all the questions.
•?Each Case let carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Case let 1
The war on drugs is an expensive battle, as a great deal of resources go into catching those who buy or
sell illegal drugs on the black market, prosecuting them in court, and housing them in jail. These costs
seem particularly exorbitant when dealing with the drug marijuana, as it is widely used, and is likely no
more harmful than currently legal drugs such as tobacco and alcohol. There's another cost to the war on
drugs, however, which is the revenue lost by governments who cannot collect taxes on illegal drugs. In a
recent study for the Fraser Institute, Canada, Economist Stephen T. Easton attempted to calculate how
much tax revenue the government of the country could gain by legalizing marijuana. The study estimates
that the average price of 0.5 grams (a unit) of marijuana sold for $8.60 on the street, while its cost of
production was only $1.70. In a free market, a $6.90 profit for a unit of marijuana would not last for long.
Entrepreneurs noticing the great profits to be made in the marijuana ……………………….
Questions
1. Plot the demand schedule and draw the demand curve for the data given for Marijuana in the case
above.
2. On the basis of the analysis of the case above, what is your opinion about legalizing marijuana in
Canada?
Case let 2
Companies that attend to productivity and growth simultaneously manage cost reductions very differently
from companies that focus on cost cutting alone and they drive growth very differently from companies
that are obsessed with growth alone. It is the ability to cook sweet and sour that under grids the
remarkable performance of companies likes Intel, GE, ABB and Canon. In the slow growth electrotechnical
business, ABB has doubled its revenues from $17 billion to $35 billion, largely by exploiting
new opportunities in emerging markets. For example, it has built up a 46,000 employee organization in
the Asia Pacific region, almost from scratch. But it has also reduced employment in North America and
Western Europe by 54,000 people. It is the hard squeeze in the north and the west that generated the
resources to support ABB's massive investments in the east and the south. Everyone knows about the
staggering ambition of the Ambanis, which has fuelled Reliance's evolution into the largest private
company in India. Reliance has built its spectacular rise on a similar ability to cook sweet and sour. What
people may not be equally familiar with is the relentless focus on cost reduction and productivity growth
that pervades the company. Reliance's employee cost is 4 per cent of revenues, against 15-20 per cent of
……………..Questions
1. Is Indian companies running a risk by not giving attention to cost cutting?
2. Discuss whether Indian Consumer goods industry is growing at the cost of future profitability.
3. Discuss capital and labour productivity in engineering context and pharmaceutical industries in
India.
4. Is textile industry in India performing better than its global competitors?
END OF SECTION B
Examination Paper Semester I: Managerial Economics
IIBM Institute of Business Management
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Free trade promotes a mutually profitable regional division of labour, greatly enhances the
potential real national product of all nations and makes possible higher standards of living all
over the globe.” Critically explain and examine the statement.
2. What role does a decision tree play in business decision-making? Illustrate the choice between
two investment projects with the help of a decision tree assuming hypothetical conditions about
the states of nature, probability distribution, and corresponding pay-offs.
S-1-91110
END OF SECTION C
Examination Paper Semester I: Marketing Management
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Marketing Management
Section A: Objective Type (30 marks)
•?This section consists of Multiple Choices & Short Notes type Questions.
•?Answer all the Questions.
•?Part one carries 1 mark each & Part Two carries 4 marks each.
Part one:
Multiple choices:
1. It is a concept where goods are produced without taking into consideration the choices or tastes of
customers
a. Marketing mix
b. Production concept
c. Marketing concept
d. Relationship marketing
2. It involves individuals who buys products or services for personal use and not for manufacture or
resale
a. Environment analysis
b. Macro environment
c. Micro environment
d. Consumer
3. It is the groups of people who interact formally or informally influencing each other’s attitudes&
behavior
a. Consumer behavior
b. Culture
c. Reference groups
d. Primary groups
4. The concept of the product that passes through various changes in its total life known as
a. Product life cycle
b. Line stretching
c. Consumer adoption
d. Product
5. It refers to unique set of brand associations that brand strategist aspires to create or maintain
a. Branding
b. Packaging
c. Brand identity
d. Brand image
Examination Paper Semester I: Marketing Management
IIBM Institute of Business Management
………………………
3. Distinguish between Marketing Concept and Selling Concept?
4. What are the new trends in advertisement?
5. Briefly explain the following :
a) Socio –culture environment
b) Marketing environment interface.
END OF SECTION A
Examination Paper Semester I: Marketing Management
IIBM Institute of Business Management
Section B: Case lets (40 marks)
•?This section consists of Case lets.
•?Answer all the questions.
•?Each Case let carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Case let 1
Ask the company top brass what ‘almost there’ means. The answer: a premier Indian retail company that
has come to be known as a specialty chain of apparel and accessories. With 52 product categories under
one roof, Shoppers’ Stop has a line-up of 350 brands. Set up and headed by former Corona employee, B.
S. Nagesh, Shoppers’ Stop is India’s answer to Selfridges and Printemps. As it proudly announces, ‘We
don’t sell, we help you buy.’ Back in 1991, there was the question of what to retail. Should it be a
supermarket or a departmental store? Even an electronics store was considered. Finally, common sense
and understanding won out. The safest bet, for the all-male team was to retail men’s wear. They knew the
male psyche and felt that they had discerning taste in men’s clothing. The concept would be that of a
lifestyle store in a luxurious space, which would make for a great ……………..
space of 67,000 sq. ft.
Carrying the perfect experience to the shop floor is an attempt to stack goods in vast open spaces neatly.
Every store has a generic structure, though regional customer variances are accounted for. Each store is
on lease, and this is clearly Shoppers’ Stop’s most expensive resource proposition – renting huge spaces
in prime properties across metros, so far totaling 210,000 sq. ft of retail space. Getting that space was easy
enough for Shoppers’ Stop, since its promoter is the Mumbai-based Raheja Group, which also owns 62
per cent of the share capital.
Questions
1. What are the significant factors that have led to the success of Shoppers’ Stop?
2. Draw the typical profile(s) of Shoppers’ Stop customer segments.
Examination Paper Semester I: Marketing Management
IIBM Institute of Business Management
3. How are Indian customers visiting Shoppers’ Stop any different from customers of developed
western countries?
4. How should Shoppers’ Stop develop its demand forecasts?
Case let 2
The rise of personal computers in the mid 1980s spurred interest in computer games. This caused a crash
in home Video game market. Interest in Video games was rekindled when a number of different
companies developed hardware consoles that provided graphics superior to the capabilities of computer
games. By 1990, the Nintendo Entertainment System dominated the product category. Sega surpassed
Nintendo when it introduced its Genesis System. By 1993, Sega commanded almost 60 per cent of Video
game market and was one of the most recognized brand names among the children. Sega’s success was
short lived. In 1995, Saturn (a division of General Motors) launched a new 32-bit system. The product
was a miserable failure for a number of reasons. …………………..
and a keyboard that
allow them to play far more sophisticated games. In addition, they have been utilizing the Internet for
years to receive game updates and modifications and to play each other over the Web. Sony and
Microsoft are intent on capturing a portion of the online gaming opportunity. Even Nintendo has decided
to make available a modem that will allow GameCube users to play online. As prices continue to fall and
technology becomes increasingly more sophisticated, it remains to be seen whether these three companies
can keep their names on the industry’s list of “high scorers”.
Questions
1. Considering the concept of product life cycle, where would you put video games in their life
cycle?
2. Should video game companies continue to alter their products to include other functions, such as
e-mail?
END OF SECTION B
Examination Paper Semester I: Marketing Management
IIBM Institute of Business Management
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200-250 words).
1. What is meant by sales promotion? Describe briefly the various methods of sales promotional
tools used by business organizations to boost the sales. Explain any four methods of sales
promotion?
2. Write notes on the fowling :
a) Explain right to safety.
b) What is right to consumer protection?
S-1-91110
END OF SECTION C
Examination Paper Semester I: Organizational Behaviour
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Organizational Behaviour
Section A: Objective Type (30 marks)
•?This section consists of Multiple Choice & Short Notes type Questions.
•?Answer all the questions.
•?Part One carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. It is the degree to which a person identifies with a particular organization and its goals, & wishes
to maintain membership in the organization
a. Job involvement
b. Terminal value
c. Attitude
d. Value
2. _________ means moving information from the hidden area to the open area
a. blind area
b. unknown area
c. public area
d. self disclosure
3. An approach in which the goals of one party are in direct conflict with the goals of the other party
a. Negotiation
b. Distributive bargaining
c. Stress
d. None
4. The measure of a person’s ability to operate within business organizations through social
communication & interactions
a. Transactional analysis
b. Interpersonal skill
c. Life position
d. Johari window
5. Where the source of power is in person’s control over rewarding outcomes, that power is called
a. Coercive power
b. Referent power
c. Legitimate power
d. Reward power
Examination Paper Semester I: Organizational Behaviour
IIBM Institute of Business Management
6. It means melting resistance to change; the people who will be affected by the change come to
accept the need for it
a. Organization
b. Unfreezing
c. Changing
d. Refreezing
7. This training is also known as laboratory training, encounter groups & T-groups
a. Sensitivity
b. Survey
c. Process
d. Team building
8. They are the things that come together to define a culture & reveal that the culture is about to
those who pay attention to them
a. Culture
………………………3. Write a note on ‘Reinforcement theory’.
4. Explain the terms ‘Attitudes and Values’.
END OF SECTION A
Examination Paper Semester I: Organizational Behaviour
IIBM Institute of Business Management
Section B: Case lets (40 marks)
•?This section consists of Case lets.
•?Answer all the questions.
•?Each Case let carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Case let 1
M/s. ABC Ltd is a medium-sized engineering company producing a large-range of product lines
according to customer requirements. It has earned a good reputation as a quick and reliable supplier to its
customers because of which its volume of business kept on increasing. However, over the past one year,
the Managing Director of the company has been receiving customer complaints due to delays in dispatch
of products and at times the company has to pay substantial penalty for not meeting the schedule in time.
The Managing Director convened an urgent meeting of various functional managers to discuss the issue.
The marketing manager questioned the arbitrary manner of giving priority to products in manufacturing
line, causing delays in wanted products and over-stocking …………………………
o appoint
you, a bright management consultant with training in business management to suggest ways and means to
put his “house in order”.
Questions
1. How would you examine if there is any merit in the remarks of various functional managers?
2. What, in your opinion, could be the reasons for different Managerial thinking in this case?
3. How would you design a system of getting correct information about job status to identify delays
quickly?
4. What would you suggest to promote co-ordinate interaction of various people to meet the
scheduled dates?
Examination Paper Semester I: Organizational Behaviour
IIBM Institute of Business Management
Case let 2
Rajender Kumar was a production worker at competent Motors Limited (CML) which made components
and accessories for the automotive industry. He had worked at CML for almost seven years as a welder,
along with fifteen other men in the plant. All had received training in welding both on the job and through
company sponsored external programmes. They had friendly relations and got along very well with one
another. They played Volleyball in the playground regularly before retiring to the quarters allotted by the
company. They work together in the company canteen, cutting Jokes on each other and making fun of
everyone who dared to step into their privacy during lunch hour. ……………
At that point of time, silence descended on the canteen. Both groups looked at Rajender anxiously,
waiting to see which group he would choose to eat with.
Questions
1. Whom do you think Rajender will eat with? Why?
2. If you were one of the other foremen, what could you do to make Rajinder’s transition easier?
END OF SECTION B
Examination Paper Semester I: Organizational Behaviour
IIBM Institute of Business Management
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. A large unit manufacturing electrical goods which has been known for its liberal personnel
policies and fringe benefits is facing the problem of low productivity and high absenteeism. How
should the management improve the organizational climate?
2. The leader is expected to play many roles & therefore he must be qualified to guide others to
organizational achievement. On the basis of this explain the leadership skills & leadership traits.
S-1-91110
END OF SECTION C
Examination Paper Semester I: Principles and Practice of Management
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Principles and Practice of Management
Section A: Objective Type (30 marks)
•?This section consists of Multiple Choices & Short Notes type Questions.
•?Answer all the Questions.
•?Part one carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple Choices:
1. A plan is a trap laid to capture the ________.
a. Future
b. Past
c. Policy
d. Procedure
2. It is the function of employing suitable person for the enterprise
a. Organizing
b. Staffing
c. Directing
d. Controlling
3. ___________ means “ group of activities & employees into departments”
a. Orientation
b. Standardization
c. Process
d. Departmentation
4. This theory states that authority is the power that is accepted by others
a. Acceptance theory
b. Competence theory
c. Formal authority theory
d. Informal authority theory
5. It means dispersal of decision-making power to the lower levels of the organization
a. Decentralization
b. Centralization
c. Dispersion
d. Delegation
Examination Paper Semester I: Principles and Practice of Management
IIBM Institute of Business Management
6. This chart is the basic document of the organizational structure
a. Functional chart
b. Posts chart
c. Master chart
d. Departmental chart
……………………3. Write a short note on “Line Organization.”
4. Write a short note on ‘Acceptance theory’.
END OF SECTION A
Examination Paper Semester I: Principles and Practice of Management
IIBM Institute of Business Management
Section B: Case lets (40 marks)
•?This section consists of Case lets.
•?Answer all the questions.
•?Each Case let carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150-200 words).
Case let 1
Mr. Vincent, the Manager of a large supermarket, was taking a management course in the
evening programme at the local college. The Professor had given an interesting but disturbing
lecture the previous night on the various approaches to management. Vincent had always thought
that management involved just planning, organizing and controlling. Now this Professor was
saying that management could also be thought of as quantitative models, systems theory and
analysis, and even something called contingency relationships. Vincent had always considered
himself a good manager, and his record with the supermarket chain had proved it. He thought of
himself, “I have never used operations research models, thought of my store as an open system,
or developed or utilized any contingency relationship. By doing a little planning ahead,
organizing the store, and making some things got done, I have been a successful manager. That
other stuff just does not make sense. All the professor was trying to do was complicate things. I
guess I will have to know it for the test, but I am sticking with my old plan, organize and control
approach to managing my store.”
Questions
1. Critically analyze Mr. Vincent’s reasoning.
2. If you were the professor and you knew what was going through Vincent’s mind, what would you
say to Vincent?
Case let 2
The Regional Administration Office of a company was hastily set up. Victor D’Cuhna a young executive
was directly recruited to take charge of Data Processing Cell of this office. The data processing was to
help the administrative office in planning and monitoring. The officer cadre of the administrative office
was a mix of directly recruited officers and promotee officers (promotion from within the organization).
Females dominated the junior clerical cadre. This cadre was not formally trained. The administrative
office had decided to give these fresh recruits on-the-job training because when results were not upto the
expectations blame was brought on the Data Processing Cell. Victor D’Cuhna realized that the
administrative office was heading for trouble……………………
. D’Cuhna countered that had
there been a male clerk in her place he would have scolded him too. When females enjoyed equal rights
with males, D’Cuhna felt he must remain impartial. Nevertheless, D’Cuhna was transferred to another
place. The transfer to another place, rather than to another department in same place, was particularly
humiliating to him. A shocked and disillusioned D’Cuhna quit the enterprise.
Questions
1. Diagnose the problem and enumerate the reasons for the failure of D’Cuhna?
2. What could D’Cuhna have done to avoid the situation in which he found himself?
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200-250 words).
1. What is Training? Explain the different methods of training?
2. Explain Decision-Making process of an organization?
S-1-91110
END OF SECTION B
END OF SECTION C
Examination Paper – Project Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Project Management
Guidelines for paper
??Total No. of Questions is 100.
??The minimum passing marks is 50%.
??Each Question carries 1 mark.
??Answer all the Questions.
Multiple Choices: Total Marks: 100
1. A ________________ is a temporary endeavor undertaken to create a unique product, service, or
result.
a) Program
b) Process
c) Project
d) Portfolio
2. Which of the following is not a potential advantage of using good project management?
a) Shorter development times
b) Higher worker morale
c) Lower cost of capital
d) Higher profit margins
3. Which of the following is not an attribute of a project?
a) Projects are unique
b) Projects are developed using progressive elaboration
c) Projects have a primary customer or sponsor
d) Projects involve little uncertainty
4. Which of the following is not part of the triple constraint of project management?
a) Meeting scope goals
b) Meeting time goals
c) Meeting communications goals
d) Meeting cost goals
5. The first stage of any project is
a) Proposal
b) Conceptualization
c) Implementation
d) Management
………………………………..
19. ___________________ involves measuring progress toward project objectives and talking
corrective actions.
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
20. What type of report do project teams create to reflect on what went right with the project?
a) Lessons – learned report
b) Status report
c) Final project report
d) Business case
21. Project manager is responsible for
a) Overseeing change
b) Cross functional activities
c) Ever changing set of tasks
d) All above
22. Many people use ________________ to have a standard format for preparing various project
management documents.
a) Methodologies
b) Templates
c) Project management software
d) Standards
23. What is the last step in the four – stage planning process for selecting information technology
projects?
a) Information technology strategy planning
b) Business area analysis
c) Project planning
d) Resource allocation
24. A new government law requires an organization to report data in anew way. Under which
category would a new information system project to provide this data fall?
a) Problem
b) Opportunity
c) Directive
d) Regulation
25. A __________________ is a document that formally recognizes the existence of a project and
provides direction on the project’s objectives and management.
a) Project charter
b) Preliminary scope statement
c) Business case
d) Project management plan
……………………….
33. What major restaurant chain terminated a large project after spending $170 million on it,
primarily because they realized the project scope was too much to handle?
a) Burger King
b) Pizza Hut
c) McDonalds
d) Taco Bell
34. Scope ____________________ is often achieved by a customer inspection and then sign – off on
key deliverables.
a) Verification
b) Validation
c) Completion
d) Close – out
35. Project management software helps you develop a _________________, which serves as a basis
for creating Gantt charts, assigning resources, and allocating costs.
a) Project plan
b) Schedule
c) WBS
d) Deliverable
36. WBS (Work Breakdown Structure) is also known as
a) Chunking
b) Unbundling
c) Both (a) & (b)
d) None
37. What is the first process in planning a project schedule?
a) Milestone definition
b) Activity definition
c) Activity resource estimation
d) Activity sequencing
38. Predecessors, successes, logical relationships, leads and lags, resource requirements, constraints,
imposed dates, and assumptions are all examples of ___________________.
a) Items in an activity list
b) Items on a Gantt chart
c) Milestone attributes
d) Activity attributes
………………………
47. Which of the following statement is false?
a) “Growing grass” was on the critical path for a large theme park project.
b) The critical path is the series of activities that determine the earliest time by which a
project can be completed.
c) A forward pass through a project network diagram determines the early start and
early finish dates for each activity.
d) Fast tracking is a technique for marking cost and schedule trade-offs to obtain the
obtain the greatest amount of schedule comparison for the least incremental cost.
48. _____________________ is a method of scheduling that considers limited resources when
creating a project schedule and includes buffers to protect the project completion date.
a) Parkinson’s Law
b) Murphy’s Law
c) Critical path analysis
d) Critical chain scheduling
49. _______________ is a resource scarified or foregone to achieve a specific objective or something
given up in exchange.
a) Money
b) Liability
c) Trade
d) Cost
Examination Paper – Project Management
9
IIBM Institute of Business Management
50. What is main goal of project cost management?
a) To complete a project for as little cost as possible
b) To complete a project within an approved budget
c) To provide truthful and accurate cost information on projects
d) To ensure that an organization’s money is used widely
51. A fundamental of ‘Theory of Constraints’ (TOC) is to manage systems by focusing on the
constraints, termed as
a) Watermark
b) Bottleneck
c) Tick-sheet
d) None
52. “An activity will expand to fill the time available”; it is
a) Newton’s Law
b) Parkinson’s Law
c) Einstein’s Law
d) None
…………..
64. _______________ generates ideas for quality improvements by comparing specific project
practices or product characteristics to those of other projects or products within or outside the
performing organization.
a) Quality audits
b) Design of experiments
c) Six Sigma
d) Benchmarking
65. What tool could you use to determine whether a process is in control or out of control?
a) A cause – and – effect diagram
b) A control chart
c) A run chart
d) A scatter chart
66. Complication to the critical path represents the formation of compound series of activities often
involving different paths which has been termed
a) The critical chain
b) The critical path
c) TOC
d) Resource path
67. Six Sigma’s target for perfection is the achievement of no more than ________________ defects,
errors, or mistakes per million opportunities.
a) 6
b) 9
c) 3.4
d) 1
68. The seven run rule states that if seven data points in a row on a control chart are all below the
mean, above the means, or all increasing or decreasing, then the process needs to be examined for
_________________ problems.
a) Random
b) Non – random
c) Six Sigma
d) Quality
69. What is the preferred order for performing testing on information technology projects?
a) Unit testing, integration testing, system testing, user acceptance testing
b) Unit testing, system testing, integration testing, user acceptance testing
c) Unit testing, system testing, user acceptance testing, integration testing
d) Unit testing, integration testing, user acceptance testing, system testing
Examination Paper – Project Management
12
IIBM Institute of Business Management
70. ___________________ is known for his work on quality control in Japan and developed the 14
points for Management in his text Out of the Crisis.
a) Juran
b) Deming
c) Crosby
d) Ishikawa
71. The theory of constraints (TOC) is successfully applied in
a) Planning
b) Checking
c) Manufacturing
d) Controlling
72. PMI’s OPM3 is an example of a ____________________ model or framework for helping
organization improve their processes and systems.
a) Benchmarking
b) Six Sigma
c) Maturity
d) Quality
73. Which of the following is not part of project human resource management?
a) Resource estimating
b) Acquiring the project team
c) Developing the project team
d) Managing the project team
74. _________________ causes people to participate in an activity for their own enjoyment.
a) Intrinsic motivation
b) Extrinsic motivation
c) Self motivation
d) Social motivation
75. At the bottom of Maslow’s pyramid or hierarchy of needs are _____________ needs.
a) Self – actualization
b) Esteem
c) Safety
d) Physiological
76. ________________ power is based on a person’s individual charisma.
a) Affiliation
b) Referent
c) Personality
d) Legitimate
Examination Paper – Project Management
13
IIBM Institute of Business Management
77. What technique can you use to resolve resource conflicts by delaying tasks?
a) Resource loading
b) Resource leveling
c) Critical path analysis
d) Over allocation
78. Which of the following is not a tool or technique for managing project team?
a) Observation and conversation
b) Project performance appraisals
c) Issue logs
d) Social Styles Profile
79. What do many experts agree is the greatest threat to the success of any project?
a) Lack of proper funding
b) A failure to communicate
c) Poor listening skills
d) Inadequate staffing
80. Which communication skill is most important for information technology professionals for career
advancement?
a) Writing
b) Listening
c) Speaking
d) Using communication technologies
81. Which of the following is not a process in project communication management?
a) Information planning
b) Information distribution
c) Performance reporting
d) Managing stakeholders
82. A building may not be constructed unless the planning permission for it has been obtained, this is
the
a) Legal constraint
b) Quality constraint
c) Cost constraint
d) Logic constraint
83. A ________________ report describes where the project stands at a specific point in time.
a) Status
b) Performance
c) Forecast
d) Earned value
Examination Paper – Project Management
14
IIBM Institute of Business Management
84. __________________ is an uncertainly that can have a negative or positive effect on meeting
project objectives.
a) Risk utility
b) Risk tolerance
c) Risk management
d) Risk
85. A person who is a risk - ______________ receives greater satisfaction when more payoffs is at
stake and is willing to pay a penalty to take risks.
a) Averse
b) Seeking
c) Neutral
d) Aware
86. Which risk management process involves prioritizing based on their probability and impact of
occurrence?
a) Risk management planning
b) Risk identification
c) Qualitative risk analysis
d) Quantitative risk analysis
87. The 7-S framework of project management issues was promoted by
a) McJonald and Co.
b) McKinsly and Co.
c) J & K Co.
d) None
88. Your project involves using a new release of a software application, but if that release is not
available, your team has ______________ plans to use the current release.
a) Contingency
b) Fallback
c) Reserve
d) Mitigation
89. A risk _________________ is a document that contains results of various risk management
processes, often displayed in a table or spreadsheet format.
a) Management plan
b) Register
c) Breakdown structure
d) Probability / impact matrix
Examination Paper – Project Management
15
IIBM Institute of Business Management
90. Your project team has decided not to use an upcoming release of software because it might cause
your schedule to slip. Which negative risk response strategy are you using?
a) Avoidance
b) Acceptance
c) Transference
d) Mitigation
91. For non critical activities, network diagrams build in …………………………. at the start of
activities.
a) Temporary
b) Buffer
c) Slack
d) Anywhere
92. If a project being undertaken by a particular project team, then these are referred as
a) Resource capability
b) Resource capacity
c) Resource calendar
d) Resource pool
93. The term ‘hedgehog syndrome’ means
a) Management problem
b) Solving problem
c) Repetition of problem
d) Find out a problem
94. What is the first procurement process?
a) Planning contracting
b) Planning purchasing and acquisitions
c) Requesting seller responses
d) Procurement management planning
95. The _____________ is the point at which the contractor assumes total responsibility for each
additional dollar of contract cost.
a) A breakeven point
b) Share ratio point
c) Point of reconciliation
d) Point of total assumption
96. We’re standing on this hill here. We want to be on that hill over there, this is
a) View
b) Vision
c) Mission
d) Aim
Examination Paper – Project Management
16
IIBM Institute of Business Management
97. A ______________________ is a document prepared by a seller when there are different
approaches for meeting buyer needs.
a) RFP
b) RFQ
c) Proposal
d) Quote
98. Buyers often prepare a ______________________ list when selecting a seller to make this
process more manageable.
a) Preferred
b) Short
c) Qualified suppliers
d) BAFO
99. A proposal evaluation sheet is an example of a(n) ______________________.
a) RFP
b) NPV analysis
c) Earned value analysis
d) Weighted scoring model
100. __________________ is a term used to describe various procurement functions that are
now done electronically.
a) E – procurement
b) eBay
c) E – commerce
d) EMV
Examination Paper of Six Sigma Green Belt
IIBM Institute of Business Management 1
CERTIFIED SIX SIGMA GREEN BELT
EXAMINATION PAPER
Guideline for paper
??Total No. of Question is 100.
??The minimum passing marks is 40%
??Each question carries 1 mark.
??Answer all the questions.
Total: 100 Marks
1. The Following is a sample data set.
10 8 8 6 5
What is the variance of this data set?
a. 3.0
b. 3.8
c. 7.3
d. 7.4
2. An auditor should use a histogram in a quality audit to do which of the following?
a. Provide objective evidence that the audited uses statistical process control (SPC)
b. Expose patterns that are normally difficult to detect
c. Interpret data for a trend chart
d. create a stratified tally diagram
3. Comparing how a process is actually performed against the documented work instruction for that
process is an example of which of the following techniques?
a. Quantitative
b. Qualitative
c. Statistical
d. Random sampling
4. Attribute sampling should be used when
a. The data are measurements in metric units.
b. Ayes-or-no decision is to be made.
c. The population has variability.
d. A multi-stage sampling plan is needed.
…………………………..
16. The primary purpose of a project charter is to
a. Subdivide the project into smaller, more manageable components
b. Provide management with a tool for selecting a project that addresses business needs
c. Provide management with a tool to ensure that project deadlines are met
d. Provide the project manager with authority to apply organizational resources to project activities
17. Sample selection of parts for inspection must be selected at random to ensure
a. A minimum sample size.
b. The probability of not rejecting the lot
c. The probability of accepting the lot
d. Finding typical characteristics of the lot.
18. Which of the following are bases for establishing calibration intervals?
I. Stability
II.Purpose
III.Degree of usage
a. I and II only
b. I and III only
c. II and III only
d. I, II, and III
19. Specification limits are derived from which of the following?
a. Process capability studies
b. Process control charts
c. Customer requirements
d. Historical data
20. The primary purpose of a control chart is to
a. Set Specifications and tolerances
b. compare operations.
c. Determine the stability of a process.
d. Accept or reject a lot of material
21. When a control chart is used on a new process, capability can be assessed at which of the following
times?
a. Before the chart is first started
b. After the first ten points are plotted
c. When the plotted points hug the centerline
d. After the process is shown to be in control
Examination Paper of Six Sigma Green Belt
IIBM Institute of Business Management 4
22. Precision is best described as
a. A comparison to a known standard
b. The achievement of expected outgoing quality
c. The repeated consistency of results
d. The difference between an average measurement and the actual value
23. The overall ability of two or more operators to obtain Consistent results repeatedly when measuring
the same set of parts and using the same measuring equipment is the definition of
a. Repeatability
b. Precision
c. Reproducibility
d. Accuracy
24. Which of the following conditions must be met for a process to be in a state of statistical control?
a. Most of the product out by the process is in specification.
b. All subgroup averages and rang are within control limits.
c. All variation has been completely removed
d. Previously optimal process settings are used.
25. Which of the following measures of dispersion is equal to the sum of deviations from the mean
squared divided by the sample size?
a. Range
b. Standard deviation
c. Variance
d. Mode
26. An X and R chart is used to
a. Indicate process variation
b. Specify design Limits
c. Interpret costs
d. Identify customer expectations
……………………………….
40. Process data being used in the initial set-up of a process are assumed have a normal distribution. If the
nominal (target) is at the center of the distribution, and the specification limits are set at = 3 from the
center the Cpk is equal to
a. -0.25
b. 1.00
c. 1.33
d. 1.67
41. A green belt is going to monitor the number of defects on different size samples. Which of the
following control chart would be most appropriate?
a. u
b. np
c. c
d. p
42. Correction, over-production, inventory, and motion are all examples of
a. waste
b. 5S target areas
c. Noise
d. Value-added activities
43. The primary factor in the successful implementation of six sigma is to have
a. The necessary resources
b. The support/leadership of top management
c. Explicit customer requirements
d. A comprehensive training program
44. Which of the following types of variation is LEAST likely to occur in sequential repetitions of a
process over a short period of time?
a. Cyclical
b. Positional
c. Temporal
d. Seasonal
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45. The primary reason that most companies implement six sigma is to
a. Reduce defects
b. Improve Processes
c. Improve profit
d. Increase customer satisfaction
46. The term used to describe the risk of a type I error in a test of hypotheses is
a. Power
b. Confidence level
c. Level of significance
d. Beta risk
47. One characteristic of attributes data is that it is always
a. continuous
b. Discrete
c. Expensive to collect
d. Read from a scale of measurement
48. Which of the following tests may be used to determine whether a sample comes from a population
with an exponential distribution?
a. T
b. F
c. Chi-square
d. ANOVA
49. Which of the following tools are appropriate for a quality engineer to use in qualifying a process that
has variable data?
I. An and R control chat
II. A his to gram
III. A cc hart
IV. A p chart
a. I and II only
b. II and III only
c. III and IV only
d. I, II, and IV only
50. The correlation coefficient for the length and weight of units made by a process is determined to be
0.27. if the process were adjusted to reduce the weight of each unit by 0.5 ounce, the correlation
coefficient of the length and weight of the units made by the new process would be equal to
a. 0.50
b. 0.27
c. 0.23
d. -0.23
51. A form, in either diagram or table format, that is prepared in advance for recording data is known as a
a. Cause-and-effect diagram
b. Pareto chart
c. Flowchart
d. Check sheet
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52. A major drawback of using histogram in process control is that they
a. do not readily account for the factor of time
b. Are relatively difficult to construct and interpret
c. Require too many data points
d. Require too many intervals
53. Which of the following tools would be of the greatest use for finding the most efficient path and
realistic schedule for the completion of a project?
a. Interrelationship diagram
b. Activity network diagram
c. Tree diagram
d. Affinity diagram
54. A control plan is designed to do which of the following?
a. Supplement information contained in operator instructions
b. Support the production scheduling system
c. Provide a documented system for controlling processes
d. Provide a method for tracking the design review process
55. To determine the average number of nonconforming parts over time, which of the following attribute
control chart would be most appropriate?
a. A chat
b. Np chart
c. P chart
d. U chat
56. Which of the following techniques is most appropriate for generating continuous improvement ideas?
a. Tree diagram
b. Brainstorming
c. Prioritization matrix
d. Interrelationship diagraph
57. Which of the following tools is used extensively quality function deployment (QFD)?
a. Affinity diagram
b. Matrix diagram
c. Cause and effect diagram
d. Activity network diagram
58. Which of the following tools is most likely to be organizing a list of ideas generated during a
brainstorming session?
a. Activity network diagram
b. Affinity diagram
c. Histogram
d. Process control chart
59. Which of the following tools would be most appropriate for collecting data to study the symptoms of
a problem?
a. A check sheet
b. A flow diagram
c. A force field analysis
d. An activity network diagram
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60. Kaizen is defined as
a. Re-engineering
b. Lean manufacturing
c. Continuous improvement
d. Error –proofing
61. The LEAST informative of the four measurement scales is the
a. Ratio
b. Nominal
c. Ordinal
d. Interval
62. Which of the following can used to determine the goodness of fit of a distribution to a data set?
a. T test
b. ANOVA
c. F rest
d. Chi square test
63. A fair coin is tossed 10 times. What are the expected mean and variance of the number of heads?
Mean variance
a. 0.5 0.025
b. 5.0 2.500
c. 5.0 5.000
d. 10.0 5.000
64. A process capability analysis is NOT used to
a. Determine the ability of a process to meet specifications
b. Maintain a process in a state of statistical control
c. Establish new specifications
d. Prioritize competing processes
65. A type of line graph used to assess the stability of a process is called a
a. Control chart
b. Pareto chart
c. Check sheet
d. cause and effect diagram
66. A process produces nonconformities according to a distribution. If the mean of the nonconformities is
25, what is the standard deviation?
a. 2.5
b. 5.0
c. 12.5
d. 25.0
67. Five six-sided dice are rolled together 100 times. Two histograms are constructed: one for the 500
individual results and one for the 100 averages of five results. In this situation, the individual results
follow a uniform distribution, while the averages follow which of the following distributions?
a. Normal
b. Student’s t
c. Binomial
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d. Uniform
68. A calibrated micrometer was used to take 10 replicated measures of a reference standard. If X
m=0.073, and the true value of the reference standard is 0.075, what is the bias of the micrometer?
a. 0.001
b. 0.002
c. 0.073
d. 0.075
69. The power of a test for the difference between means is measured by
a. A
b. 1-a
c. B
d. 1-b
70. A process is stable and its output is normally distributed. The process has a specification of
16.73=0.01. What is the maximum process standard deviation if the Cp must be=1.5?
a. 0.0011
b.0.0022
c. 0.0041
d. 0.0133
71. Which of the following is the most effective technique for prioritizing critical factors foe problemsolving?
a. Venn diagram
b. Scatter diagram
c. Pareto diagram
d. Cause and effect diagram
72. The main advantage of a matrix diagram is that it
a. Displays all the possible causes related to a problem
b. Displays the strength of relationship between each paired combination of variables
c. Identifies, analyzes, and classifies the cause and effect relationship that among all critical issues
d. Identifies a sequence of actions and materials entering a process
73. Poka-yake is best defined as
a. Improving machine efficiency
b. Reducing field failures to virtually zero
c. Capturing the voice of the customer
d. Preventing controllable defects
74. Which of the following describes the 95% confidence interval of a 20% absentee rate in a department
with 30 people?
a. 6% to 34%
b. 8% to 32%
c. 13% to 27%
d. 17% to 23%
75. Which of the following are needed to calculate the process capability index,Cp?
a. The specification limits and the mean
b. The specification limits and s^ (Sigma Cap)
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c. The process mean and s^(Sigma Cap)
d. The upper and lower specification limits
76. Repeatability and reproducibility are terms that operationally define
a. Bias
b. Accuracy
c. Discrimination
d. Precision’
77. A method that classifies data without significantly reducing accuracy or precision is known as
a. Bias adjustment
b. Statistical efficiency
c. Blocking
d. Coding
78. If a process has a variance of 4 units and a specification of 96+4, what is the process performance
index (Pp)?
a. 0.33
b. 0.66
c. 1.00
d. 1.50
79. If a histogram has a distribution that is bimodal this indicates that the
a. Process is in control
b. Distribution is abnormal
c. Data collected is accurate
d. data has two points
80. Which of the following best describes how an affinity diagram is used?
a. Grasping organizational performance relative to contrasting data
b. Prioritizing data from most signification to least significant
c. Grouping ideas that are created during brainstorming
d. Identifying when a process is in control
81. Warranty claims are classified in which of the following cost of quality groups?
a. Internal failure
b. External failure
c. Appraisal
d. Prevention
82. At what stage of the problem-solving process would a team most likely use a cause-effect diagram?
a. Description of the process associated with the problem
b. Definition of the problem and its scope
c. Organization of possible problem causes
d. Collection of data to identify actual causes
83. Steel bars are cut to cylindrical shafts by means of a lathe. The diameter and allowable tolerance of
the shaft is 2.00=.001 inch. A control chart is used to monitor the quality level of the process. Which of
the following plots on the control chart might indicate a problem of wear on the lathe?
a. The diameter of a single shaft above 2.001 inch
b. the diameter of a single shaft below 1.999 inch
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c. An Apparent increasing trend in the shaft diameters
d. Erratic in-tolerance or out-of-tolerance diameter measurements
84. A sample consists of one or more units of product drawn from a lot or batch on the basis of
a. Defect of the product
b. Random selection
c. Size of the product
d. When the inspection process was completed
85. What is the percent yield for a normally distributed process in which the item length specification is
5.750=0.004, X is 5.752, and the standard deviation is 0.002?
a. 15.73%
b. 19.15%
c. 47.72%
d. 83.99%
86. In preparation for construction of a cause and effect diagram, it is important to
a. Plot separate chart for each source
b. Focus only on what makes thing go wrong
c. Record everything people suggest
d. Validate possible root cause
87. Which of the following tools should be used a team is generating and prioritizing a list of options that
include highly controversial issues?
a. Brainstorming
b. Affinity diagram
c. Nominal group technique
d. 5 whys
88. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30?
a. 59.18%
b. 40.82%
c. 9.18%
d. 1.33%
89. A company is receiving an unusually high number of returns from various customers. The first step in
investigating the problem would be to
a. Check the inspection records
b. Establish the correlation of the returns to shipments
c. Brainstorm the potential causes
d. Classify the returns by type and degree of serious
90. Which of the following is the best definition of a flow chart?
a. A diagram used to structure ideas into useful categories
b. An illustration used to analyze variation in a process
c. A picture used to separate steps of a process in sequential order
d. An analytical tool used to clarify opposing aspects of a desired change
Examination Paper of Six Sigma Green Belt
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91. Which of the following activities would NOT contribute to the effective functioning of a team?
a. Eliminating unnecessary activities
b. Development team performance measures
c. Defining process in detail
d. Monitoring each member’s performance
92. What is the standard deviation of the population below?
10, 4, 16, 12, 8
a. 4.00
b. 4.47
c. 16.00
d. 20.00
93. Which of the following tools would be most appropriate for collecting data to study the symptoms of
a problem?
a. Check sheet
b. Flow diagram
c. Force-field analysis
d. Activity network diagram
94. Which of the following measures is a sufficient statistic for the parameter u?
a. Median
b. Mid-range
c. Mean
d. Mode
95. Positional, cyclical, and temporal variations are most commonly analyzed in
a. SPC charts
b. Multi-vari charts
c. Cause and effect diagram
d. Run charts
96. Which of the following describes the deming method for continuous improvement?
a. Cost of quality analysis
b. Process map
c. Tree Diagram
d. Plan-do-check-act cycle
97. in analysis of variance, Which of the following distributions is the basis for determining whether the
variance estimates are all from the same population?
a. Chi square
b. Student’s
c. Normal
d. F
98. Which of the following statement best describes the set all value of a random variable?
a. It is finite.
b. It is an interval
c. It can be discrete or continuous.
d. It can be tracked by using control charts or scatter plots.
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99. Which of the following is the best description of randomization?
a. A technique used to increase the precision of an experiment
b. A means of assuring representative sampling
c. The repetition of an observation or measurement
d. The relationship between two or more variables
100. When the order of items is not important, which of the following is the method to use to determine
the number of sets and subsets of items?
a. Combination
b. Permutation
c. Factorization
d. Simulation
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