Examination Paper Semester I All

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Examination Paper Semester I: Financial ManagementIIBM Institute of Business ManagementIIBM Institute of Business ManagementSemester-1 Examination Paper MM.100Financial ManagementSection 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 enterprisea. Ignored non-corporate enterpriseb. Ignored working capital financingc. External approachd. Ignored routine problems2. These are those shares, which can be redeemed or repaid to the holders after a lapse of thestipulated perioda. Cumulative preference sharesb. Non-cumulative preference sharesc. Redeemable preference sharesd. Perpetual shares3. This type of risk arise from changes in environmental regulations, zoning requirements, fees,licenses and most frequently taxesa. Political riskb. Domestic riskc. International riskd. Industry risk4. It is the cost of capital that is expected to raise funds to finance a capital budget or investmentproposala. Future costb. Specific costc. Spot costd. Book cost5. This concept is helpful in formulating a sound & economical capital structure for a firma. Financial performance appraisalb. Investment evaluationc. Designing optimal corporate capital structured. NoneExamination Paper Semester I: Financial ManagementIIBM Institute of Business Management6. It is the minimum required rate of return needed to justify the use of capitala. From investorsb. Firms pointc. Capital expenditure pointd. Cost of capital7. It arises when there is a conflict of interest among owners, debenture holders and the managementa. Seasonal variation


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b. Degree of competitionc. Industry life cycled. Agency costs8. Some guidelines on shares & debentures issued by the government that are very important for theconstitution of the capital structure area. Legal requirementb. Purpose of financec. Period of financed. Requirement of investors9. It is that portion of an investments total risk that results from change in the financial integrity ofthe investmenta. Bull- bear market riskb. Default riskc. International riskd. Liquidity risk10. _____________ measure the systematic risk of a security that cannot be avoided throughdiversificationa. Betab. Gammac. Probability distributiond. AlphaPart 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 AExamination Paper Semester I: Financial ManagementIIBM Institute of Business ManagementSection 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 1This 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 wasfinishing 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 sinceMonday. He was on a trip through Pennsylvania, visiting five potential clients, who were considering theflotation of securities with the assistance of Wishart and Associates. Meenda had called the office onWednesday 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 ofsecurities for each of the five clients to meet their individual needs. He also knew Meenda wanted him tocall each of the clients to consider the recommendations over the weekend. George was prepared to makethese 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 STOPRecommendations 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 pickedup 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 seekingfinancing. In the front of each folder were some handwritten notes that Meenda had made on Mondaybefore he left. George read each of the notes in turn. APT, Inc needs $8 million now and $4 million infour 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. Goodmanagement. Expects moderate growth. New machinery should increase profits substantially. Recentlyretired $7 million in debt. Has virtually no debt remaining except short-term obligations.Sandford EnterprisesNeeds $16 million. Crusty management. Stock price depressed but expected to improve. Excellent growthand profits forecast in the next two year. Low debt-equity ratio, as the firm has record of retiring debtprior to maturity. Retains bulk of earnings and pays low dividends. Management not interested insurrendering 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 has1200 employees, $50 million in sales, and is traded over the counter. Seeks additional shareholder but notwilling 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 tolend money for long-term needs.Sacheetee Energy SystemsThe 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 toExamination Paper Semester I: Financial ManagementIIBM Institute of Business Managementuse debt to raise $ 28 million, but this is second choice. Financing gimmicks and chance to turn quickprofit on investment would appeal to those likely to invest in this company.Ranbaxy IndustryNeeds $25 million. Manufactures boat canvas covers and needs funds to expand operations. Needs longtermmoney. Closely held ownership reluctant surrender control. Cannot issue debt without permission ofbondholders and First National Bank of Philadelphia. Relatively low debt-equity ratio. Relatively highprofits. Good prospects for growth Strong management with minor weaknesses in sales and promotionareas. As George was looking over the folders, Meenda's secretary entered the office. George said, "DidMeenda 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 thefacts in the folders. He also said that he learned nothing new on the trip and he sort of indicated that, hehad 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 hehad the right recommendations and some of the considerations that outlined each client's needs andsituation. If he could determine which firm matched each recommendation, he could still call the firms by6:00 P.M. and meet the original deadline. George decided to return to his office and match each firm withthe 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 meetthe financial requirements?Case let 2This case has been framed in order to test the skills in evaluating a credit request and reaching a correctdecision. Perluence International is large manufacturer of petroleum and rubber-based products used in avariety 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-ownedsubsidiary, 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 atBajaj electronics. He supervises five employees who handle credit application and collections on 4,600accounts. The accounts range in size from $120 to $85,000. The firm sells on varied terms, with 2/10, net30 mostly. Sales fluctuate seasonally and the average collection period tends to run 40 days. Bad-debtlosses 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. Boothand has grown steadily since that time. Bajaj Electronics is not selling any products to Booth Plastics andhad no previous contact with Neck Booth. Bajaj Electronics purchased goods from PerluenceInternational under the same terms and conditions as Perluence used when it sold to independentcustomers. Although Bajaj Electronics generally followed Perluence in setting its prices, the subsidiaryoperated independently and could adjust price levels to meet its own marketing strategies. The Perluence'scost-accounting department estimated a 24 per cent markup as the average for items sold to PuccaElectronics. Bajaj Electronics, in turn, resold the items to yield a 17 per cent markup. It appeared thatthese percentages would hold on any sales to Booth Plastics. Bajaj Electronics incurred out-of pocketexpenses that were not considered in calculating the 17 per cent markup on its items. For example, thecontact with Booth Plastics had been made by James, the salesman who handled the Glaveston area.Examination Paper Semester I: Financial ManagementIIBM Institute of Business ManagementJames would receive a 3 per cent commission on all sales made Booth Plastics, a commission that wouldbe paid whether or not the receivable was collected. James would, of course, be willing to assist incollecting any accounts that he had sold. In addition to the sales commission, the company would incurvariable 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 Holmsteadapproached all credit decisions in basically the same manner. First of all, he considered the potentialprofit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming thatNeck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup on thesesales since the average markup was calculated on the basis of the customer taking the discount. If NeckBooth did not take the discount, the markup would be slightly higher, as would the cost of financing thereceivable for the additional period of time. In addition to the potential profit from the account, Gupta wasconcerned about his company's exposure. He knew that weak customers could become bad debts at anytime and therefore, required a vigorous collection effort whenever their accounts were overdue. Hisdepartment probably spent three times as much money and effort managing a marginal account ascompared to a strong account. He also figured that overdue and uncollected funds had to be financed byBajaj Electronics at a rate of 18 per cent. All in all, slow -paying or marginal accounts were very costly toBajaj Electronics. With these considerations in mind, Gupta began to review the credit application forBooth Plastics.Question:1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to BoothPlastics and give your views to increase the profit.2. Suggestion regarding Credit limit. Should it be approved or not, what should be the amount ofcredit 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 percent 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 lakhincreases 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-1-91110END OF SECTION BEND OF SECTION CExamination Paper Semester I: Human Resource ManagementIIBM Institute of Business ManagementIIBM Institute of Business ManagementSemester-1 Examination Paper MM.100Human Resource ManagementSection 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 othersa. Geocentrismb. Polycentrismc. Ethnocentrismd. Egocentrism2. It is the systemic study of job requirements & those factors that influence the performance ofthose job requirementsa. Job analysisb. Job rotationc. Job circulationd. Job description3. This Act provides an assistance for minimum statutory wages for scheduled employmenta. Payment of Wages Act, 1936b. Minimum Wages Act, 1948c. Factories Act, 1948d. Payment of Gratuity act, 19724. __________ is the actual posting of an employee to a specific joba. Inductionb. Placementc. Attritiond. None5. Broadening an individual’s knowledge, skills & abilities for future responsibilities is known asa. Trainingb. Developmentc. Educationd. MentoringExamination Paper Semester I: Human Resource ManagementIIBM Institute of Business Management6. Change that is designed and implemented in an orderly and timely fashion in anticipation offuture eventsa. Planned changeb. Technology change





c. Structural changed. None7. It is a process for setting goals and monitoring progress towards achieving those goalsa. Performance appraisalb. Performance gapc. Performance factord. Performance management system8. A method which requires the rates to provide a subjective performance evaluation along a scalefrom low to higha. Assessment centreb. Checklistc. Rating scaled. Monitoring9. It is the sum of knowledge, skills, attitudes, commitment, values and the liking of the people in anorganizationa. Human resourcesb. Personal managementc. Human resource managementd. Productivity10. A learning exercise representing a real-life situation where trainees compete with each other toachieve specific objectivesa. Executive developmentb. Management gamec. Programmed learningd. UnderstudyPart 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 AExamination Paper Semester I: Human Resource ManagementIIBM Institute of Business ManagementSection 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 1Trust them with knee-jerk reactions," said Vikram Koshy, CEO, Delta Software India, as he looked at thequarterly report of Top Line Securities, a well-known equity research firm. The firm had announced adowngrade of Delta, a company listed both on Indian bourses and the NASDAQ. The reason? "One outof every six development engineers in the company is likely to be benched during the remaining part ofthe year." Three analysts from Top Line had spent some time at Delta three weeks ago. Koshy and histeam had explained how benching was no different from the problems of excess inventory, idle time, andsurplus capacity that firms in the manufacturing sector face on a regular basis, "Delta has witnessed ascorching pace of 30 per cent growth during the last five years in a row," Koshy had said, "What ishappening 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 specializationleads to redundancyWhat are the options?Quickly cut costs in areas which are non-core look for learning’s from the manufacturing sector Focus onalternative markets like Europe and Japan Move into products, where margins are better. Of course, theTop Line report went on to cite several other "signals," as it said: the rate of annual hike in salaries atDelta would come down to 5 per cent (from between 20 and 30 per cent last year); the entry-level intakeof engineers from campuses in June 2001, would decline to 5 per cent (unlike the traditional 30 per centaddition to manpower every year); and earnings for the next two years could dip by between 10 and 12per 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 hadassembled for the routine morning meeting. "But, clearly, everyone is reading too much into this businessof benching. In fact, benching is one of the many options that our principals in the US have been pursuingas 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 likelyto hike their billings by about 30 per cent. At one level, this is an opportunity for us. At another, ofcourse, I am not sure if we should be jubilant, because they have asked for a 25-30 per cent cut in billingrates. Our margins will take a hit, unless we cut costs and improve productivity." "Productivity is clearly amatter of priority now," said Vivek Varadan, Vice-President (Operations). "If you consider benching as anon-earning mode, we do have large patches of it at Delta. As you are aware, it has not been easy tosecure 70 per cent utilization of our manpower, even in normal times. I think we need to look at why wehave 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 ourbusiness, which is more project-driven than product-driven. When you are managing a number ofoverseas and domestic projects simultaneously, as we do at Delta, people tend to go on the bench. Theywait, as they complete one project, and are assigned the next. There are problems of coordination betweenprojects, related to the logistics of moving people and resources from one customer to another. In fact, Iam fine-tuning our monthly manpower utilization report to provide a breakup of bench costs intoExamination Paper Semester I: Human Resource ManagementIIBM Institute of Business Managementspecifics-leave period, training programmes, travel time, buffers, acclimatization period et al." "It wouldbe 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, communicationnetworking; 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 thebench time straightaway, which helps us control costs and revenue better." "I also think we should reduceour dependence on projects and move into products," said Praveen Kumar, Director (Marketing). "That iswhere the opportunity for brand building lies. In fact, now is the time to get our technology guys involvedin marketing. Multiskilling helps reduce the bench time." "Benching has an analogy in the manufacturingsector," said Girish Shahane, Vice-President (Services). "We could look for learning's there. Many firmshave adopted Just-In-Time (JIT) inventory as part of eliminating idle time. It would be worthwhileexploring the possibility of JIT. But the real learning lies in standardization of work. It is linked to whatMohanty said about managing by activities." "At a broader level, I see several other opportunities," saidKoshy, "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 inwhich 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 withfirms 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 andproducts?Case let 2The 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 loyalemployees for long periods of time or develop one set way of structuring how work is done andsupervisory responsibility is assigned. Continuous changes in who organizations employ and what theseemployees do require HR practices and systems that are well conceived and effectively implemented toensure high performance and continued success.1. Automated technologies nowadays require more technically trained employees possessing multifariousskills to repair, adjust or improve existing processes. The firms can't expect these employees (Gen Xemployees, possessing superior technical knowledge and skills, whose attitudes and perceptions towardwork 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 workactivities, demanding opportunities for personal growth and creativity) to stay on without attractivecompensation packages and novel reward schemes.2. Technology driven companies are led by project teams, possessing diverse skills, experience andexpertise. Flexible and dynamic organizational structures are needed to take care of the expectations ofmanagers, technicians and analysts who combine their skills, expertise and experience to meet changingcustomer needs and competitive pressures.3. Cost cutting efforts have led to the decimation of unwanted layers in organizational hierarchy in recenttimes. This, in turn, has brought in the problem of managing plateau employees whose careers seem tohave been hit by the delivering process. Organizations are, therefore, made to find alternative career pathsfor such employees.Examination Paper Semester I: Human Resource ManagementIIBM Institute of Business Management4. Both young and old workers, these days, have values and attitudes that stress less loyalty to thecompany 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 flightof talented employeesQuestion1. 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 theposition to be filled within an organization. Explain the different types of Interviews.2. Explain the legal provisions regarding safety of workers.S-1-191110END OF SECTION BEND OF SECTION CExamination Paper Semester I: Managerial EconomicsIIBM Institute of Business ManagementIIBM Institute of Business ManagementSemester-1 Examination Paper MM.100Managerial EconomicsSection 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 wholea. Macroeconomicsb. Microeconomicsc. Recessiond. Inflation2. A comprehensive formulation which specifies the factors that influence the demand for theproducta. Market demandb. Demand schedulec. Demand functiond. Income effect3. It is computed when the data is discrete and therefore incremental changes is measurablea. Substitution effectb. Arc elasticityc. Point elasticityd. Derived demand4. Goods & services used for final consumption is calleda. Demandb. Consumer goodsc. Producer goodsd. Perishable goods5. The curve at which satisfaction is equal at each pointa. Marginal utilityb. Cardinal measure of utilityc. The Indifference Curved. Budget lineExamination Paper Semester I: Managerial EconomicsIIBM Institute of Business Management6. Costs that are reasonably expected to be incurred in some future period or periodsa. Future costsb. Past costsc. Incremental costsd. Sunk costs7. Condition when the firm has no tendency either to increase or to contract its outputa. Monopolyb. Profitc. Equilibriumd. Market8. Total market value of all finished goods & services produced in a year by a country’s residents isknown asa. National incomeb. Gross national productc. Gross domestic productd. Real GDP9. The sum of net value of goods & services produced at market prices





a. Government expenditureb. Product approachc. Income approachd. Expenditure approach10. The market value of all the final goods & services made within the borders of a nation in an yeara. Globalizationb. Subsidiesc. GDPd. GNPPart Two:1. Define ‘Arc Elasticity’.2. Explain the law of ‘Diminishing marginal returns’.3. What is ‘Prisoner’s Dilemma’, of non cooperative game?4. What is ‘Third degree Discrimation’?END OF SECTION AExamination Paper Semester I: Managerial EconomicsIIBM Institute of Business ManagementSection 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 1The war on drugs is an expensive battle, as a great deal of resources go into catching those who buy orsell illegal drugs on the black market, prosecuting them in court, and housing them in jail. These costsseem particularly exorbitant when dealing with the drug marijuana, as it is widely used, and is likely nomore harmful than currently legal drugs such as tobacco and alcohol. There's another cost to the war ondrugs, however, which is the revenue lost by governments who cannot collect taxes on illegal drugs. In arecent study for the Fraser Institute, Canada, Economist Stephen T. Easton attempted to calculate howmuch tax revenue the government of the country could gain by legalizing marijuana. The study estimatesthat the average price of 0.5 grams (a unit) of marijuana sold for $8.60 on the street, while its cost ofproduction 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 market would start their own growoperations, increasing the supply of marijuana on the street, which would cause the street price of thedrug to fall to a level much closer to the cost of production. Of course, this doesn't happen because theproduct is illegal; the prospect of jail time deters many entrepreneurs and the occasional drug bust ensuresthat the supply stays relatively low. We can consider much of this $6.90 per unit of marijuana profit arisk-premium for participating in the underground economy. Unfortunately, this risk premium is making alot of criminals, many of whom have ties to organized crime, very wealthy. Stephen T. Easton argues thatif marijuana was legalized, we could transfer these excess profits caused by the risk premium from thesegrow operations to the government: If we substitute a tax on marijuana cigarettes equal to the differencebetween the local production cost and the street price people currently pay – that is, transfer the revenuefrom the current producers and marketers (many of whom work with organized crime) to the government,leaving all other marketing and transportation issues aside we would have revenue of (say) $7 per [unit].If you could collect on every cigarette and ignore the transportation, marketing, and advertising costs, thiscomes to over $2 billion on Canadian sales and substantially more from an export tax, and you forego thecosts of enforcement and deploy your policing assets elsewhere. One interesting thing to note from such ascheme is that the street price of marijuana stays exactly the same, so the quantity demanded shouldremain the same as the price is unchanged. However, it's quite likely that the demand for marijuana wouldchange from legalization. We saw that there was a risk in selling marijuana, but since drug laws often





target both the buyer and the seller, there is also a risk (albeit smaller) to the consumer interested inbuying marijuana. Legalization would eliminate this risk, causing the demand to rise. This is a mixed bagfrom a public policy standpoint: Increased marijuana use can have ill effects on the health of thepopulation but the increased sales bring in more revenue for the government. However, if legalized,governments can control how much marijuana is consumed by increasing or decreasing the taxes on theproduct. There is a limit to this, however, as setting taxes too high will cause marijuana growers to sell onthe black market to avoid excessive taxation. When considering legalizing marijuana, there are manyeconomic, health, and social issues we must analyze. One economic study will not be the basis ofCanada's public policy decisions, but Easton's research does conclusively show that there are economicbenefits in the legalization of marijuana. With governments scrambling to find new sources of revenue topay for important social objectives such as health care and education expect to see the idea raised inParliament sooner rather than later.Examination Paper Semester I: Managerial EconomicsIIBM Institute of Business ManagementQuestions1. Plot the demand schedule and draw the demand curve for the data given for Marijuana in the caseabove.2. On the basis of the analysis of the case above, what is your opinion about legalizing marijuana inCanada?Case let 2Companies that attend to productivity and growth simultaneously manage cost reductions very differentlyfrom companies that focus on cost cutting alone and they drive growth very differently from companiesthat are obsessed with growth alone. It is the ability to cook sweet and sour that under grids theremarkable performance of companies likes Intel, GE, ABB and Canon. In the slow growth electrotechnicalbusiness, ABB has doubled its revenues from $17 billion to $35 billion, largely by exploitingnew opportunities in emerging markets. For example, it has built up a 46,000 employee organization inthe Asia Pacific region, almost from scratch. But it has also reduced employment in North America andWestern Europe by 54,000 people. It is the hard squeeze in the north and the west that generated theresources to support ABB's massive investments in the east and the south. Everyone knows about thestaggering ambition of the Ambanis, which has fuelled Reliance's evolution into the largest privatecompany in India. Reliance has built its spectacular rise on a similar ability to cook sweet and sour. Whatpeople may not be equally familiar with is the relentless focus on cost reduction and productivity growththat pervades the company. Reliance's employee cost is 4 per cent of revenues, against 15-20 per cent ofits competitors. Its sales and distribution cost, at 3 per cent of revenues, is about a third of globalstandards. It has continuously pushed down its cost for energy and utilities to 3 per cent of revenues,largely through 100 per cent captive power generation that costs the company 4.5 cents per kilowatt-hour;well below Indian utility costs, and about 30 per cent lower than the global average. Similarly, its capitalcost is 25-30 per cent lower than its international peers due to its legendary speed in plant commissioningand its relentless focus on reducing the weighted average cost of capital (WACC) that, at 13 per cent, isthe lowest of any major Indian firm.A Bias for GrowthComparing major Indian companies in key industries with their global competitors shows that Indiancompanies are running a major risk. They suffer from a profound bias for growth. There is nothing wrongwith this bias, as Reliance has shown. The problem is most look more like Essar than Reliance. Whilethey love the sweet of growth, they are unwilling to face the sour of productivity improvement.Nowhere is this more amply borne out than in the consumer goods industry where the Indian giantHindustan Lever has consolidated to grow at over 50 per cent while its labour productivity declined byaround 6 per cent per annum in the same period. Its strongest competitor, Nirma, also grew at over 25 percent per annum in revenues but maintained its labour productivity relatively stable. Unfortunately,however, its return on capital employed (ROCE) suffered by over 17 per cent. In contrast, Coca Cola,





worldwide, grew at around 7 per cent, improved its labour productivity by 20 per cent and its return oncapital employed by 6.7 per cent. The story is very similar in the information technology sector whereInfosys, NIIT and HCL achieve rates of growth of over 50 per cent which compares favorably with theworld's best companies that grew at around 30 per cent between 1994-95. NIIT, for example, stronglybelieves that growth is an impetus in itself. Its focus on growth has helped it double revenues every twoyears. Sustaining profitability in the face of such expansion is an extremely challenging task. For now,this is a challenge Indian InfoTech companies seem to be losing. The ROCE for three Indian majors fellby 7 per cent annually over 1994-96. At the same time IBM Microsoft and SAP managed to improve thisratio by 17 per cent. There are some exceptions, however. The cement industry, which has focused onproductivity rather than on growth, has done very well in this dimension when compared to their globalExamination Paper Semester I: Managerial EconomicsIIBM Institute of Business Managementcounterparts. While Mexico's Cemex has grown about three times fast as India's ACC, Indian cementcompanies have consistently delivered better results, not only on absolute profitability ratios, but also onabsolute profitability growth. They show a growth of 24 per cent in return on capital employed whileinternational players show only 8.4 per cent. Labour productivity, which actually fell for most industriesover 1994-96, has improved at 2.5 per cent per annum for cement.The engineering industry also matches up to the performance standards of the best in the world.Companies like Cummins India have always pushed for growth as is evidenced by its 27 per cent rate ofgrowth, but not at the cost of present and future profitability. The company shows a healthy excess ofalmost 30 per cent over WACC, displaying great future promise. BHEL, the public sector giant, has seensimilar success and the share price rose by 25 per cent despite an indecisive sensex. The only note ofcaution: Indian engineering companies have not been able to improve labour productivity over time,while international engineering companies like ABB, Siemens and Cummins Engines have achievedabout 13.5 per cent growth in labour productivity, on an average, in the same period. The pharmaceuticalsindustry is where the problems seem to be the worst, with growth emphasized at the cost of all otherperformance. They have been growing at over 22 per cent, while their ROCE fell at 15.9 per cent perannum and labour productivity at 7 per cent. Compare this with some of the best pharmaceuticalcompanies of the world – Glaxo Wellcome, SmithKline Beecham and Pfizer –who have consistentlyachieved growth of 15-20 per cent, while improving returns on capital employed at about25 per cent and labour productivity at 8 per cent. Ranbaxy is not an exception; the bias for growth at thecost of labour and capital productivity is also manifest in the performance of other Indian Pharmacompanies. What makes this even worse is the Indian companies barely manage to cover their cost ofcapital, while their competitors worldwide such as Glaxo and Pfizer earn an average ROCE of 65 percent. In the Indian textile industry, Arvind Mills was once the shining star. Like Reliance, it had learnt tocook sweet and sour. Between 1994 and 1996, it grew at an average of 30 per cent per annum to becomethe world's largest denim producer. At the same time, it also operated a tight ship, improving labourproductivity by 20 per cent. Despite the excellent performance in the past, there are warning signals forArvind's future. The excess over the WACC is only 1.5 per cent, implying it barely manages to satisfy itsinvestor’s expectations of return and does not really have a surplus to re-invest in the business.Apparently, investors also think so, for Arvind's stock price has been falling since Q4 1994 despite suchexcellent results and, at the end of the first quarter of 1998, is less than Rs 70 compared to Rs 170 at theend of 1994. Unfortunately, Arvind's deteriorating financial returns over the last few years is also typicalof the Indian textile industry. The top three Indian companies actually showed a decline in their returnratios in contrast to the international majors. Nike, VF Corp and Coats Viyella showed a growth in theirreturns on capital employed of 6.2 per cent, while the ROCE of Grasim and Coats Viyella (India) fell byalmost 2 per cent per annum. Even in absolute returns on assets or on capital employed, Indian companiesfare a lot worse. While Indian textile companies just about cover their WACC, their international rivalsearn about 8 per cent in excess of their cost of capital.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 inIndia.4. Is textile industry in India performing better than its global competitors?END OF SECTION BExamination Paper Semester I: Managerial EconomicsIIBM Institute of Business ManagementSection 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 thepotential real national product of all nations and makes possible higher standards of living allover the globe.” Critically explain and examine the statement.2. What role does a decision tree play in business decision-making? Illustrate the choice betweentwo investment projects with the help of a decision tree assuming hypothetical conditions aboutthe states of nature, probability distribution, and corresponding pay-offs.S-1-91110END OF SECTION CExamination Paper Semester I: Marketing ManagementIIBM Institute of Business ManagementIIBM Institute of Business ManagementSemester-1 Examination Paper MM.100Marketing ManagementSection 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 ofcustomersa. Marketing mixb. Production conceptc. Marketing conceptd. Relationship marketing2. It involves individuals who buys products or services for personal use and not for manufacture orresalea. Environment analysisb. Macro environmentc. Micro environmentd. Consumer3. It is the groups of people who interact formally or informally influencing each other’s attitudes&behaviora. Consumer behaviorb. Culturec. Reference groups





d. Primary groups4. The concept of the product that passes through various changes in its total life known asa. Product life cycleb. Line stretchingc. Consumer adoptiond. Product5. It refers to unique set of brand associations that brand strategist aspires to create or maintaina. Brandingb. Packagingc. Brand identityd. Brand imageExamination Paper Semester I: Marketing ManagementIIBM Institute of Business Management6. It involves a pricing strategy that charges customers different prices for the same product orservicea. Promotional pricingb. Price discriminationc. Non price competitiond. None7. It refers to an arrangement where another company through its own marketing channel sells theproducts of one producersa. End customerb. Wholesalerc. Retailingd. Strategic channel alliance8. It involves facility consisting of the means & equipments necessary for the movement ofpassengers of goodsa. Logisticsb. Warehousingc. Transportationd. None9. The advertising which is used to inform consumers about a new product or feature & to buildprimary demands is known asa. Advertisingb. Informative advertisingc. Persuasive advertisingd. Advertising strategy10. An art that predicts the likelihood of economic activity on the basis of certain assumptionsa. Compensationb. Sales forecastingc. Sales budgetingd. Selling policyPart Two:1. Write a note on importance of consumer behavior for a business firm?2. Define the term ‘Price’.3. Distinguish between Marketing Concept and Selling Concept?4. What are the new trends in advertisement?5. Briefly explain the following :a) Socio –culture environmentb) Marketing environment interface.





END OF SECTION AExamination Paper Semester I: Marketing ManagementIIBM Institute of Business ManagementSection 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 1Ask the company top brass what ‘almost there’ means. The answer: a premier Indian retail company thathas come to be known as a specialty chain of apparel and accessories. With 52 product categories underone 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, ‘Wedon’t sell, we help you buy.’ Back in 1991, there was the question of what to retail. Should it be asupermarket or a departmental store? Even an electronics store was considered. Finally, common senseand understanding won out. The safest bet, for the all-male team was to retail men’s wear. They knew themale psyche and felt that they had discerning taste in men’s clothing. The concept would be that of alifestyle store in a luxurious space, which would make for a great shopping experience. The firstShoppers’ Stop store took shape in Andheri, Mumbai, in October 1991, with an investment of nearly Rs.20 lakh. The original concept that formed the basis of a successful marketing campaign for seven years ishere to stay. And the result is an annual turnover of Rs. 160 crores and five stores, nine years later.Everything went right from the beginning, except for one strange happening. More than 60 per cent of thecustomers who walked into Shoppers’ Stop in Mumbai were women. This gave rise to ideas. Soon, thestore set up its women’s section. Later, it expanded to include children’s wear and then, householdaccessories. The second store in Bangalore came in 1995. The store at Hyderabad followed in 1998 withthe largest area of 60,000 sq. ft. The New Delhi and Jaipur stores were inaugurated in 1999. All thiswhile, the product range kept increasing to suit customer needs. The most recent experiment was homefurnishings. Secure in the knowledge that organised retailing in global brands was still in its infancy inIndia, Shoppers’ Stop laid the ground rules which the competition followed. The biggest advantage forShoppers’ Stop is that it knows how the Indian consumer thinks and feels while shopping. Yes, feeling –for in India, shopping remains an outing. And how does it compare itself to foreign stores? While it is notmodeled on any one foreign retailer, the ‘basic construct’ is taken from the experience of a number ofsuccessfully managed retail companies. It has leveraged expertise for a critical component like technologyfrom all over the world, going as far as hiring expatriates from Littlewoods and using state-of-the-art ERPmodels. Shoppers’ Stop went a step further by even integrating its financial system with the ERP model.Expertise was imported wherever it felt that expertise available in-house was inadequate. But the store feltthere was one acute problem. A shortage of the most important resource of them all was trained humans.Since Indian business institutes did not have professional courses in retail management, people were hiredfrom different walks of life and the training programme was internalized. By 1994, the senior executivesat Shoppers’ Stop were taking lectures at management institutes in Mumbai. The Narsee Monjee Instituteof Management Studies (NMIMS) even restructured its course to include retail management as a subject.Getting the company access to the latest global retail trends and exchange of information with businessgreats was an exclusive membership to the Intercontinental Group of Department Stores (IGDS). It allowsmembership by invitation to one company from a country and Shoppers’ Stop rubs shoulders with 29 ofthe hottest names in retailing – Selfridges from the UK, C.K. Tang from Singapore, Lamcy Plaza fromDubai and the like. With logistics I in place, the accent moved to the customer. Shoppers’ Stop conductedsurveys with ORG-MARG and Indian Market Research Bureau (IMRB) and undertook in-housewardrobe audits. The studies confirmed what it already knew. The Indian customer is still evolving and isvery different from, say, a European customer, who knows exactly what he wants to purchase, walks upto a shelf, picks up the merchandise, pays and walks out. In India, customers like to touch and feel the





Examination Paper Semester I: Marketing ManagementIIBM Institute of Business Managementmerchandise, and scout for options. Also, the majority of Indian shoppers still prefer to pay in cash. So,transactions must be in cash as against plastic money used the world over. Additionally, the Indiancustomer likes being served – whether it is food, or otherwise. The company’s customer profile includespeople who want the same salesperson each time they came to the store to walk them through the shopfloors and assist in the purchase. Others came with families, kids and maids in tow and expected to besuitably attended to. Still others wanted someone to carry the bags. So, the shops have self-help counters,with an assistant at hand for queries or help. The in-house wardrobe audit also helped with another facetof the business. It enabled Shoppers’ Stop to work out which brands to stock, based on customerpreferences. In fact, the USP of Shoppers’ Stop lies in judiciously selected global brands, displayedalongside an in-house range of affordable designer wear. The line-up includes Levi’s, Louis Philippe,Allen Solly, Walt Disney, Ray Ban and Reebok, besides in-house labels STOP and I. Brand selection isthe same across the five locations, though the product mix may be somewhat city-based to accommodatecuts and styles in women’s wear, as well as allowing for seasonal variations (winter in Delhi, for instance,is a case in point). Stocking of brands is based on popular demand – recently, Provogue, MTV Style, andBenetton have been added. In-house labels are available at competitive prices and target the value-formoneycustomer and make up around 12 per cent of Shoppers’ Stop’s business. Sometimes in-housebrands plug the price gap in certain product categories. To cash in on this, the company has big plans forits in-house brands: from re-branding to repositioning, to homing in on product categories where existingbrands are not strong. Competition between brands is not an issue, because being a trading house, allbrands get equal emphasis. The in-house brand shopper is one who places immense trust in the companyand the quality of its goods and returns for repeat buys. And the company reposed its faith in regularcustomers by including them in a concept called the First Citizen’s Club (FCC). With 60,000 oddmembers, FCC customers account for 10 per cent of entries and for 34 per cent of the turnover. It was thesheer appeal of the experience that kept pulling these people back. Not one to let such an opportunitypass, the company ran a successful ad campaign (that talks about just this factor) in print for more thaneight years. The theme is still the same. In 1999, a TV spot, which liked the shopping experience to theslowing down of one’s internal clock and the beauty of the whole experience, was aired. More recently,ads that spell out the store’s benefits (in a highly oblique manner) are being aired.The campaign is based on entries entered in the Visitors’ Book. None of the ads has a visual or text – orany heavy handedly direct reference to the store or the merchandise. The ads only show shoppers havingthe time of their lives in calm and serene locales, or elements that make shopping at the store a pleasure –quite the perfect getaway for a cosmopolitan shopper aged between 25 and 45. The brief to the agency,Contract, ensured that brand recall came in terms of the shopping experience, not the product. And it hasworked wonders. Value-addition at each store also comes in the form of special care with car parks,power backup, customer paging, alteration service and gift-wrapping. To top it all, cafes and coffee barsmake sure that the customer does not step out of the store. In Hyderabad, it has even created a FoodCourt. Although the food counter was not planned, it came about as there was extra 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 ison lease, and this is clearly Shoppers’ Stop’s most expensive resource proposition – renting huge spacesin prime properties across metros, so far totaling 210,000 sq. ft of retail space. Getting that space was easyenough for Shoppers’ Stop, since its promoter is the Mumbai-based Raheja Group, which also owns 62per cent of the share capital.Questions1. 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 ManagementIIBM Institute of Business Management





3. How are Indian customers visiting Shoppers’ Stop any different from customers of developedwestern countries?4. How should Shoppers’ Stop develop its demand forecasts?Case let 2The rise of personal computers in the mid 1980s spurred interest in computer games. This caused a crashin home Video game market. Interest in Video games was rekindled when a number of differentcompanies developed hardware consoles that provided graphics superior to the capabilities of computergames. By 1990, the Nintendo Entertainment System dominated the product category. Sega surpassedNintendo when it introduced its Genesis System. By 1993, Sega commanded almost 60 per cent of Videogame market and was one of the most recognized brand names among the children. Sega’s success wasshort lived. In 1995, Saturn (a division of General Motors) launched a new 32-bit system. The productwas a miserable failure for a number of reasons. Sega was the primary software developer for Saturn andit did not support efforts by outside game developers to design compatible games. In addition, Sega’sgames were often delivered quite late to retailers. Finally, the price of the Saturn system was greater thanother comparable game consoles. This situation of Saturn’s misstep benefited Nintendo and Sony greatly.Sony’s Play Station was unveiled in 1994 and was available in 70 million homes worldwide by the end of1999. Its “Open design” encouraged the efforts of outside developers, resulting in almost 3,000 differentgames that were compatible with the PlayStation. It too featured 32-bit graphics that appealed to olderaudience. As a result, at one time, more than 30 per cent of PlayStation owners were over 30 years old.Nintendo 64 was introduced in 1996 and had eye-popping 64-bit graphics and entered in more than 28million homes by 1999. Its primary users were between the age of 6 and 13 as a result of Nintendo’sefforts to limit the amount of violent and adult-oriented material featured on games that can be played onits systems. Because the company exercised considerable control over software development, Nintendo64 had only one-tenth the number of compatible games as Sony’s PlayStation did. By 1999, Sony hadcaptured 56 per cent of the video game market, followed by Nintendo with 42 per cent. Sega’s share hadfallen to a low of 1%. Hence, Sega had two options, either to concede defeat or introduce an innovativevideo machine that would bring in huge sales. And Sega had to do so before either Nintendo or Sonycould bring their next-generation console to market. The Sega Dreamcast arrived in stores in September1999 with an initial price tag of $199. Anxious gamers placed 300,000 advance orders, and initial saleswere quite encouraging. A total of 1.5 million Dreamcast machines were bought within the first fourmonths, and initial reviews were positive. The 128-bit system was capable of generating 3-D visuals, and40 different games were available within three months of Dream cast’s introduction. By the end of theyear, Sega had captured a market share to 15 per cent. But the Dreamcast could not sustain itsmomentum. Although its game capabilities were impressive, the system did not deliver all thefunctionality Sega had promised. A 56K modem (which used a home phone line) and a Web browserwere meant to allow access to the Internet so that gamers could play each other online, surf the Web, andvisit the Dreamcast Network for product information and playing tips. Unfortunately, these features eitherwere not immediately available or were disappointing in their execution. Sega was not the only one inhaving the strategy of adding functionality beyond games. Sony and Nintendo followed the sameapproach for their machines introduced in 1999. Both Nintendo’s Neptune and Sony’s PlayStation 2(PS2) were built on a DVD platform and featured a 128-bit processor. Analysts applauded the move toDVD because it is less expensive to produce and allows more storage than CDs. It also gives buyers theability to use the machine as CD music player and DVD movie player. As Sony marketing directorcommented, “The full entertainment offering from Play Station 2 definitely appeals to a much broaderaudience. I have friends in their 30s who bought it not only because it’s a gaming system for their kids,but also a DVD for them.” In addition, PlayStation 2 is able to play games developed for its earlier modelthat was CD-based. This gives the PS2 an enormous advantage in the number of compatible game titlesExamination Paper Semester I: Marketing ManagementIIBM Institute of Business Managementthat were immediately available to gamers. Further enhancing the PS2’s appeal is its high-speed modem





and allows the user’s easy access to the Internet through digital cable as well as over telephone lines. Thisgives Sony the ability to distribute movies, music, and games directly to PS2 consoles. “We arepositioning this as an all-round entertainment player,” commented Ken Kutaragi, the head of SonyComputer Entertainment. However, some prospective customers were put off by the console’s initialprice of $360. Shortly after the introduction of Neptune, Nintendo changed its strategies and announcedthe impending release of its newest game console, The GameCube. However, unlike the Neptune, theGameCube would not run on a DVD platform and also would not initially offer any online capabilities. Itwould be more attractively priced at $199. A marketing vice president for Nintendo explained thecompany’s change in direction, “We are the only competitor whose business is video games. We want tocreate the best gaming system.” Nintendo also made the GameCube friendly for outside developers andstarted adding games that included sports titles to attract an older audience. Best known for its extraordinary successes with games aimed at the younger set, such as Donkey Kong, Super Mario Bros, andPokemon, Nintendo sought to attract older users, especially because the average video game player is 28.Youthful Nintendo users were particularly pleased to hear that they could use their handheld Game BoyAdvance systems as controllers for the GameCube. Nintendo scrambled to ensure there would be anadequate supply of Game Cubes on the date in November 2001, when they were scheduled to be availableto customers. It also budgeted $450 million to market its new product, as it anticipated stiff competitionduring the holiday shopping season. With more than 20 million PlayStation 2 sold worldwide, theGameCube as a new entry in the video game market would make the battle for market share even moreintense. For almost a decade, the video game industry had only Sega, Nintendo, and Sony; just threeplayers. Because of strong brand loyalty and high product development costs, newcomers faced adaunting task in entering this race and being competitive. In November 2001, Microsoft began selling itsnew Xbox, just three days before the GameCube made its debut. Some observers felt the Xbox was aimedto rival PlayStation 2, which has similar functions that rival Microsoft’s Web TV system and even somelower level PCs. Like the Sony’s PlayStation 2, Xbox was also built using a DVD platform, but it used anIntel processor in its construction. This open design allowed Microsoft to develop the Xbox in just twoyears, and gave developers the option of using standard PC tool for creating compatible games. Inaddition, Microsoft also sought the advice of successful game developers and even incorporated some oftheir feedback into the design of the console and its controllers. As a result of developers’ efforts,Microsoft had about 20 games ready when the Xbox became available. By contrast, the GameCube hadonly eight games available. Microsoft online strategy was another feature that differentiated of the Xboxfrom the GameCube. Whereas Nintendo had no immediate plans for Web-based play, the Xbox cameequipped with an Ethernet port for broadband access to Internet. Microsoft also announced its own Webbasednetwork on which gamers can come together for online head-to head play and for organised onlinematches and tournaments. Subscribers to this service were to pay a small monthly fee and must havehigh-speed access to the Internet. This is a potential drawback considering that a very low percentage ofhouseholds world over currently have broadband connections. By contrast Sony promoted an opennetwork, which allows software developers to manage their own games, including associated fees chargedto users. However, interested players must purchase a network adapter for an additional $39.99. Althoughgame companies are not keen on the prospect of submitting to the control of a Microsoft-controllednetwork, it would require a significant investment for them to manage their own service on the Sonybasednetwork. Initially the price of Microsoft’s Xbox was $299. Prior to the introduction of Xbox, in acompetitive move Sony dropped the price of the PlayStation 2 to $299. Nintendo’s GameCube alreadyenjoyed a significant price advantage, as it was selling for $100 less than either Microsoft or Sonyproducts. Gamers eagerly snapped up the new consoles and made 2001 the best year ever for video gamesales. For the first time, consumers spent $9.4 billion on video game equipment, which was more thanthey did at the box office. By the end of 2001 holiday season, 6.6 million PlayStation 2 consoles had beensold in North America alone, followed by 1.5 million Xbox units and 1.2 million Game Cubes. Whatensued was an all out price war. This started when Sony decided to put even more pressure on theMicrosoft’s Xbox by cutting the PlayStation 2 price to $199. Microsoft quickly matched that price.





Examination Paper Semester I: Marketing ManagementIIBM Institute of Business ManagementWanting to maintain its low-price status, Nintendo in turn responded by reducing the price of its theGameCube by $50, to $149. By mid 2002, Microsoft Xbox had sold between 3.5 and 4 million unitsworldwide. However, Nintendo had surpassed Xbox sales by selling 4.5 million Game Cubes. Sony hadthe benefit of healthy head start, and had shipped 32 million PlayStation 2s. However, seven years afterthe introduction of original PlayStation, it was being sold in retail outlets fora mere $49. It had a significant lead in terms of numbers of units in homes around the world with a 43 percent share. Nintendo 64 was second with 30 per cent, followed by Sony PlayStation 2 with 14 per cent.The Xbox and GameCube each claimed about 3 per cent of the market, with Sega Dreamcast comprisingthe last and least market share of 4.7 per cent. Sega, once an industry leader, announced in 2001 that ithad decided to stop producing the Dreamcast and other video game hardware components. The companysaid it would develop games for its competitors’ consoles. Thus Sega slashed the price of the Dreamcastto just $99 in an effort to liquidate its piled up inventory of more than 2 million units and immediatelybegan developing 11 new games for the Xbox, four for PlayStation 2, and three for Nintendo’s Game BoyAdvance. As the prices of video game consoles have dropped, consoles and games have become theequivalent of razors and blades. This means the consoles generate little if any profit, but the games are ahighly profitable proposition. The profit margins on games are highly attractive, affected to some degreeby whether the content is developed by the console maker (such as Sony) or by an independent gamepublisher (such as Electronic Arts). Thus, the competition to develop appealing, or perhaps evenaddictive, games may be even more intense than the battle among players to produce the best console. Inparticular, Nintendo, Sony, and Microsoft want games that are exclusive to their own systems. With thatin mind, they not only rely on large in-house staffs that design games but they also pay added fees toindependent publishers for exclusive rights to new games. The sales of video games in 2001 rose to 43per cent, compared to just 4 per cent increase for computer-based games. But computer game players arebelieved to be a loyal bunch, as they see many advantages in playing games on their computers ratherthan consoles. For one thing, they have a big advantage of having access to a mouse and a keyboard thatallow them to play far more sophisticated games. In addition, they have been utilizing the Internet foryears to receive game updates and modifications and to play each other over the Web. Sony andMicrosoft are intent on capturing a portion of the online gaming opportunity. Even Nintendo has decidedto make available a modem that will allow GameCube users to play online. As prices continue to fall andtechnology becomes increasingly more sophisticated, it remains to be seen whether these three companiescan keep their names on the industry’s list of “high scorers”.Questions1. Considering the concept of product life cycle, where would you put video games in their lifecycle?2. Should video game companies continue to alter their products to include other functions, such ase-mail?END OF SECTION BExamination Paper Semester I: Marketing ManagementIIBM Institute of Business ManagementSection 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 promotionaltools used by business organizations to boost the sales. Explain any four methods of salespromotion?2. Write notes on the fowling :





a) Explain right to safety.b) What is right to consumer protection?S-1-91110END OF SECTION CExamination Paper Semester I: Organizational BehaviourIIBM Institute of Business ManagementIIBM Institute of Business ManagementSemester-1 Examination Paper MM.100Organizational BehaviourSection 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, & wishesto maintain membership in the organizationa. Job involvementb. Terminal valuec. Attituded. Value2. _________ means moving information from the hidden area to the open areaa. blind areab. unknown areac. public aread. self disclosure3. An approach in which the goals of one party are in direct conflict with the goals of the other partya. Negotiationb. Distributive bargainingc. Stressd. None4. The measure of a person’s ability to operate within business organizations through socialcommunication & interactionsa. Transactional analysisb. Interpersonal skillc. Life positiond. Johari window5. Where the source of power is in person’s control over rewarding outcomes, that power is calleda. Coercive powerb. Referent powerc. Legitimate powerd. Reward powerExamination Paper Semester I: Organizational BehaviourIIBM Institute of Business Management6. It means melting resistance to change; the people who will be affected by the change come toaccept the need for ita. Organizationb. Unfreezingc. Changingd. Refreezing





7. This training is also known as laboratory training, encounter groups & T-groupsa. Sensitivityb. Surveyc. Processd. Team building8. They are the things that come together to define a culture & reveal that the culture is about tothose who pay attention to thema. Cultureb. Espoused valuec. Artifactsd. Organizational culture9. This stage encompasses all the learning that occurs before a new member joins the organizationsa. Socializationb. The Pre-arrival stagec. Encounter staged. Metamorphosis stage10. It refers to the behavior pattern adopted by a leader to influence the behavior of his subordinatefor attaining the organizational goala. Leadershipb. Traits of leadershipc. Leadership gridd. Leadership stylePart Two:1. Define Informal groups.2. What do you understand by the term ‘Emotion’?3. Write a note on ‘Reinforcement theory’.4. Explain the terms ‘Attitudes and Values’.END OF SECTION AExamination Paper Semester I: Organizational BehaviourIIBM Institute of Business ManagementSection 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 1M/s. ABC Ltd is a medium-sized engineering company producing a large-range of product linesaccording to customer requirements. It has earned a good reputation as a quick and reliable supplier to itscustomers 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 dispatchof 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 manufacturingline, causing delays in wanted products and over-stocking of products which are not requiredimmediately. Production Control Manager complained that he does not have adequate staff to plan andcontrol the production function; and whatever little planning he does, is generally overlooked by shopfloor manager. Shop floor managers complained of unrealistic planning, excessive machine breakdowns,power failure, and shortage of materials for scheduled products because of which it is impossible to stickto the schedule. Maintenance manager says that he does not get important spares required for equipmentmaintenance





because of which he cannot repair machines at a faster rate. Inventory control manager saysthat on one hand the company often accuses him of carrying too much stock and on other hand people aregrumbling over shortages. Fed up by mutual mud-slinging, the Managing Director decided to appointyou, a bright management consultant with training in business management to suggest ways and means toput his “house in order”.Questions1. 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 delaysquickly?4. What would you suggest to promote co-ordinate interaction of various people to meet thescheduled dates?Examination Paper Semester I: Organizational BehaviourIIBM Institute of Business ManagementCase let 2Rajender Kumar was a production worker at competent Motors Limited (CML) which made componentsand 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 throughcompany sponsored external programmes. They had friendly relations and got along very well with oneanother. They played Volleyball in the playground regularly before retiring to the quarters allotted by thecompany. They work together in the company canteen, cutting Jokes on each other and making fun ofeveryone who dared to step into their privacy during lunch hour. Most of the fellows had been there forsome length of time, except for two men who had joined the ranks only two months back. Rajender wasgenerally considered to be the leader of the group, so it was no surprise that when the foreman of the newwas transferred and his job was posted, Rajender applied for the job and got it.There were only four other applicants for the job, two from mechanical section and two from outside,when there was a formal announcement of the appointment on a Friday afternoon, everyone in the groupcongratulated Rajender. They literally carried him on their shoulders, and bought him snacks andcelebrated. On Monday morning, Rajender joined duty as Foreman. It was company practice for allforemen to wear blue jacket and a white shirt. Each man’s coat had his name badge sewn onto the leftside pocket. The company had given two pairs to Rajender. He was proud to wear the coat to work onMonday. People who saw him from a distance went up to him and admired the new blue coat. There wasa lot of kidding around calling Rajender as ‘Hero’, ‘Raja Babu’ and ‘Officer’ etc. One of the guys wentback to his locker and returned with a long brush and acted as though he were removing dust particles onthe new coat. After about five minutes of horseplay, all the men went back to work. Rajender went to hisoffice to familiarize himself with the new job and environment. At noon, all the men broke for Lunch andwent to the canteen to eat and take a break as usual. Rajender was busy when they left but followed afterthem a few minutes later. He bought the food coupon, took the snacks and tea and turned to face the opencanteen. On the left-side corner of the room was his old work group; on the right-hand side of the canteensat the other entire foreman in the plant—all in their smart blue coats.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.Questions1. 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 BExamination Paper Semester I: Organizational BehaviourIIBM Institute of Business ManagementSection 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 personnelpolicies and fringe benefits is facing the problem of low productivity and high absenteeism. Howshould the management improve the organizational climate?2. The leader is expected to play many roles & therefore he must be qualified to guide others toorganizational achievement. On the basis of this explain the leadership skills & leadership traits.S-1-91110END OF SECTION CExamination Paper Semester I: Principles and Practice of ManagementIIBM Institute of Business ManagementIIBM Institute of Business ManagementSemester-1 Examination Paper MM.100Principles and Practice of ManagementSection 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. Futureb. Pastc. Policyd. Procedure2. It is the function of employing suitable person for the enterprisea. Organizingb. Staffingc. Directingd. Controlling3. ___________ means “ group of activities & employees into departments”a. Orientationb. Standardizationc. Processd. Departmentation4. This theory states that authority is the power that is accepted by othersa. Acceptance theoryb. Competence theoryc. Formal authority theoryd. Informal authority theory5. It means dispersal of decision-making power to the lower levels of the organizationa. Decentralizationb. Centralizationc. Dispersiond. DelegationExamination Paper Semester I: Principles and Practice of Management





IIBM Institute of Business Management6. This chart is the basic document of the organizational structurea. Functional chartb. Posts chartc. Master chartd. Departmental chart7. Communication which flow from the superiors to subordinates with the help of scalarchain is known asa. Informal communicationb. Downward communicationc. Upward communicationd. Oral communication8. Needs for belongingness, friendship, love, affection, attention & social acceptance area. Physiological needsb. Safety needsc. Ego needsd. Social needs9. A management function which ensures “jobs to be filled with the right people, with theright knowledge, skill & attitude”a. Staffing definedb. Job analysisc. Manpower planningd. Recruitment10. It is a process that enables a person to sort out issues and reach to a decisions affectingtheir lifea. Selectionb. Rainingc. Rewardd. CounselingPart Two:1. Differentiate between ‘Administration’ and ‘Management’.2. What were the common drawbacks in classical and Neo classical theories of management?3. Write a short note on “Line Organization.”4. Write a short note on ‘Acceptance theory’.END OF SECTION AExamination Paper Semester I: Principles and Practice of ManagementIIBM Institute of Business ManagementSection 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 1Mr. Vincent, the Manager of a large supermarket, was taking a management course in theevening programme at the local college. The Professor had given an interesting but disturbinglecture the previous night on the various approaches to management. Vincent had always thought





that management involved just planning, organizing and controlling. Now this Professor wassaying that management could also be thought of as quantitative models, systems theory andanalysis, and even something called contingency relationships. Vincent had always consideredhimself a good manager, and his record with the supermarket chain had proved it. He thought ofhimself, “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. Thatother stuff just does not make sense. All the professor was trying to do was complicate things. Iguess I will have to know it for the test, but I am sticking with my old plan, organize and controlapproach to managing my store.”Questions1. Critically analyze Mr. Vincent’s reasoning.2. If you were the professor and you knew what was going through Vincent’s mind, what would yousay to Vincent?Case let 2The Regional Administration Office of a company was hastily set up. Victor D’Cuhna a young executivewas directly recruited to take charge of Data Processing Cell of this office. The data processing was tohelp the administrative office in planning and monitoring. The officer cadre of the administrative officewas 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 administrativeoffice had decided to give these fresh recruits on-the-job training because when results were not upto theexpectations blame was brought on the Data Processing Cell. Victor D’Cuhna realized that theadministrative office was heading for trouble. He knew that his task would not be easy and that he hadbeen selected because of his experience, background and abilities. He also realized that certain functionalaspects of the administrative office were not clearly understood by various functionaries, and systems andprocedures were blindly and randomly followed. Feedback was random, scanty and controversial, andData Processing Cell had to verify every item of feedback. Delays were inevitable. D’Cuhna sought thepermission of senior management to conduct a seminar on communication and feedback of which he wasan expert. The permission was grudgingly given by the senior management. Everyone appreciated theseminar. Following the first seminar, D’Cuhna conducted a one week training course for the clericalExamination Paper Semester I: Principles and Practice of ManagementIIBM Institute of Business Managementcadre, especially for the junior, freshly recruited clerks. Amongst other topics, D’Cuhna laid emphasis onfiling system, information tracking, communication, and feedback. This helped reorient attitudes to someextent. But the female clerks preferred to ignore the theme and widely circulated the belief that D’Cuhnawas an upstart and a show off. Within a short time, considerable friction had been generated in theadministrative office While directly recruited officers supported D’Cuhna’s initiative and the specialistofficers admired him, senior management became cautious and uncomfortable. The junior promoteeofficers were prejudiced against him. The grand finale followed swiftly. D’Cuhna happened to getannoyed with a female clerk. During the absence of her officer, who was on sick leave and had not beensubstituted by another officer, she began submitting nil returns. D’Cuhna took pains to explain to her thatfor certain topics a nil feedback was not tenable. The current status had to be reported— the stage atwhich the matter was pending, what had been done, and what would be done about it? The lady reportedthat it was none of his business to tell her this. He should talk to her officer when the officer reports backfrom leave. D’Cuhna said he would, but in the meanwhile she should present the correct picture. WhenD’Cuhna called for the files, she refused to part with them. D’Cuhna fired her and reported the situationto the Chief Regional Manager. The other ladies were up in the arms against D’Cuhna. The lady alsocomplained to higher management that D’Cuhna had made passes at her. Other ladies supported hercomplaint. She also complained that D’Cuhna had no business to scold her. D’Cuhna countered that had





there been a male clerk in her place he would have scolded him too. When females enjoyed equal rightswith males, D’Cuhna felt he must remain impartial. Nevertheless, D’Cuhna was transferred to anotherplace. The transfer to another place, rather than to another department in same place, was particularlyhumiliating to him. A shocked and disillusioned D’Cuhna quit the enterprise.Questions1. 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-1-91110END OF SECTION BEND OF SECTION C

Examination Paper – Project Management1IIBM Institute of Business ManagementIIBM Institute of Business ManagementExamination Paper MM.100Project ManagementGuidelines for paperTotal No. of Questions is 100.The minimum passing marks is 50%.Each Question carries 1 mark.Answer all the Questions.Multiple Choices: Total Marks: 1001. A ________________ is a temporary endeavor undertaken to create a unique product, service, orresult.a) Programb) Processc) Projectd) Portfolio2. Which of the following is not a potential advantage of using good project management?a) Shorter development timesb) Higher worker moralec) Lower cost of capitald) Higher profit margins3. Which of the following is not an attribute of a project?a) Projects are uniqueb) Projects are developed using progressive elaborationc) Projects have a primary customer or sponsord) Projects involve little uncertainty4. Which of the following is not part of the triple constraint of project management?





a) Meeting scope goalsb) Meeting time goalsc) Meeting communications goalsd) Meeting cost goals5. The first stage of any project isa) Proposalb) Conceptualizationc) Implementationd) ManagementExamination Paper – Project Management2IIBM Institute of Business Management6. __________________ is the application of knowledge, skills, tools and techniques to projectactivities to meet project requirements.a) Project managementb) Program managementc) Project portfolio managementd) Requirements management7. Project portfolio management addresses ____________________ goals of an organization, whileproject management addresses _________________ goals.a) Strategic, tacticalb) Tactical, strategicc) Internal, externald) External, internal8. Several application development projects done for the same functional group might best bemanaged as part of aa) Portfoliob) Programc) Investmentd) Collaborative9. Which of the following is not one of the top ten skills or competencies of an effective projectmanager?a) People skillsb) Leadershipc) Integrityd) Technical skills10. What is the certification program called that the Project Management Institute provides?a) Microsoft Certified Project Manager (MCPM)b) Project Manager Professional (PMP)c) Project Management Expert (PME)d) Project Management Mentor (PMM)11. A _________________ is a series of actions directed towards a particular result.a) Goalb) Processc) Pland) ProjectExamination Paper – Project Management





3IIBM Institute of Business Management12. ____________________ Processes include coordinating people and other resource to carry outthe project plans and produce the products, service, or results of the project or phase.a) Initiatingb) Planningc) Executingd) Monitoring & controlling13. Which process group normally requires the most resources and time?a) Initiatingb) Planningc) Executingd) Monitoring and controlling14. A work breakdown structure, project schedule, and cost estimates are outputs of the process.a) Initiatingb) Planningc) Executingd) Monitoring and controlling15. Which process group includes activities from each of the nine knowledge areas?a) Initiatingb) Planningc) Executingd) Monitoring and controlling16. Project management as a profession is almost unique in having institutions concerned with itsdevelopment who promote what they term theira) Body of languageb) Body of knowledgec) Strategyd) Work17. Initiating involves developing a project charter and preliminary project scope statement, whichare part of the project _____________________ management knowledge.a) Integrationb) Scopec) Communicationsd) Risk18. A ________________ describes how things should be done, and different organizations oftenhave different ways of doing things.a) Regulationb) Processc) Standardd) MethodologyExamination Paper – Project Management4IIBM Institute of Business Management19. ___________________ involves measuring progress toward project objectives and talkingcorrective actions.a) Initiating





b) Planningc) Executingd) Monitoring and controlling20. What type of report do project teams create to reflect on what went right with the project?a) Lessons – learned reportb) Status reportc) Final project reportd) Business case21. Project manager is responsible fora) Overseeing changeb) Cross functional activitiesc) Ever changing set of tasksd) All above22. Many people use ________________ to have a standard format for preparing various projectmanagement documents.a) Methodologiesb) Templatesc) Project management softwared) Standards23. What is the last step in the four – stage planning process for selecting information technologyprojects?a) Information technology strategy planningb) Business area analysisc) Project planningd) Resource allocation24. A new government law requires an organization to report data in anew way. Under whichcategory would a new information system project to provide this data fall?a) Problemb) Opportunityc) Directived) Regulation25. A __________________ is a document that formally recognizes the existence of a project andprovides direction on the project’s objectives and management.a) Project charterb) Preliminary scope statementc) Business cased) Project management planExamination Paper – Project Management5IIBM Institute of Business Management26. ICOM model, which is one of the major roles of project manager, stand fora) Integrated Constraint of Mechanismb) Inputs, Outputs, Constraints & Mechanismc) Inputs, Outputs, Constraints & Moneyd) None27. A _______________ often includes sensitive information, so it should not be part of the overallproject plan for anyone to see.





a) Business caseb) Project charterc) Personnel chartd) Stakeholder analysis28. Which of the following is not a suggestion for performing integrated change control?a) Use good configuration managementb) Minimize changec) Establish a formal change control systemd) View project management as a process of constant communication and negotiation29. _______________ refer(s) to all the work involved in creating the products of the projects andprocesses used to create them.a) Deliverablesb) Milestonesc) Scoped) Product development30. Assume you have a project with major categories called planning, analysis, design, and testing.What level of the WBS would these items fall under?a) 0b) 1c) 2d) 331. Which of the following is not a best practice that can help in avoiding scope problems oninformation technology projects?a) Keep the scope realisticb) Use off-the-shelf hardware and software whenever possiblec) Follow good project management processesd) Don’t involve too many users in scope management32. Having ascertains the portfolio of projects obtained objectives for each of them, we have to moveto the next stage of the strategy process to balance the objectivesa) Policy deploymentb) Strategy matrixc) Project performance measurementd) NoneExamination Paper – Project Management6IIBM Institute of Business Management33. 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 Kingb) Pizza Hutc) McDonaldsd) Taco Bell34. Scope ____________________ is often achieved by a customer inspection and then sign – off onkey deliverables.a) Verificationb) Validationc) Completion





d) Close – out35. Project management software helps you develop a _________________, which serves as a basisfor creating Gantt charts, assigning resources, and allocating costs.a) Project planb) Schedulec) WBSd) Deliverable36. WBS (Work Breakdown Structure) is also known asa) Chunkingb) Unbundlingc) Both (a) & (b)d) None37. What is the first process in planning a project schedule?a) Milestone definitionb) Activity definitionc) Activity resource estimationd) Activity sequencing38. Predecessors, successes, logical relationships, leads and lags, resource requirements, constraints,imposed dates, and assumptions are all examples of ___________________.a) Items in an activity listb) Items on a Gantt chartc) Milestone attributesd) Activity attributesExamination Paper – Project Management7IIBM Institute of Business Management39. As the project manager for a software development project, you are helping to develop itsschedule. You decide that writing code for a system cannot start until sign off on the analysiswork. What type of dependency is this?a) Technicalb) Mandatoryc) Discretionaryd) External40. You cannot start editing a technical report until someone else completes the first draft. What typeof dependency does this represent?a) Finish – to – startb) Start – to – startc) Finish – to – finishd) Start – to – finish41. …………………. Involves going through the cycle several times to test the effects of the changesmake on the outcomes.a) Planningb) Strategyc) Iteratived) None42.Above figure shows two activities A & B; B cannot start until A finished and the times for A &





B are 5 and 7 days respectively. This logic is known asa) Dependencyb) Precedencec) Freedomd) None43.In the above figure calculate the EET (earliest event time) at 20.a) 10b) 20c) 5d) 25100200A5Days1 23A B5Days 7DaysExamination Paper – Project Management8IIBM Institute of Business Management44. What symbol on a Gantt chart represents a slipped milestone?a) A black arrowb) A white arrowc) A black diamondd) A white diamond45. What type of diagram shows planned and actual project schedule information?a) A networkb) A Gantt chartc) A Trackingd) A milestone chart46. ____________________ is a network diagramming technique used to predict total projectduration.a) PERTb) A Gantt chartc) Critical path methodd) Crashing47. 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 aproject can be completed.c) A forward pass through a project network diagram determines the early start andearly finish dates for each activity.d) Fast tracking is a technique for marking cost and schedule trade-offs to obtain theobtain the greatest amount of schedule comparison for the least incremental cost.





48. _____________________ is a method of scheduling that considers limited resources whencreating a project schedule and includes buffers to protect the project completion date.a) Parkinson’s Lawb) Murphy’s Lawc) Critical path analysisd) Critical chain scheduling49. _______________ is a resource scarified or foregone to achieve a specific objective or somethinggiven up in exchange.a) Moneyb) Liabilityc) Traded) CostExamination Paper – Project Management9IIBM Institute of Business Management50. What is main goal of project cost management?a) To complete a project for as little cost as possibleb) To complete a project within an approved budgetc) To provide truthful and accurate cost information on projectsd) To ensure that an organization’s money is used widely51. A fundamental of ‘Theory of Constraints’ (TOC) is to manage systems by focusing on theconstraints, termed asa) Watermarkb) Bottleneckc) Tick-sheetd) None52. “An activity will expand to fill the time available”; it isa) Newton’s Lawb) Parkinson’s Lawc) Einstein’s Lawd) None53. Which of the following is not a key output of project cost management?a) A cost estimateb) A cost management planc) Updates to the cost management pland) A cost baseline54. If a company loses $5 for every $100 in revenue for a certain product, what is profit margin forthat product?a) -5 percentb) 5 percentc) -$5d) $555. __________________ reserves allow for future situations that are unpredictable.a) Contingencyb) Financialc) Managementd) Baseline





56. You are preparing a cost estimate for a building based on its location, purpose, number of squarefeet, and other characteristics. What cost estimating technique are you using?a) Parametricb) Analogousc) Bottom – upd) Top – downExamination Paper – Project Management10IIBM Institute of Business Management57. ______________ involves allocating the project cost estimate to individual work items over time.a) Reserve analysisb) Life cycle costingc) Project cost budgetingd) Earned value analysis58. _________________ is a project performance measurement technique that integrates scope time,and cost data.a) Reserve analysisb) Life cycle costingc) Project cost budgetingd) Earned value analysis59. If the actual cost for a WBS item is $1500 and its earned value was $2000, what is its costvariance, and is it under or over budget?a) The cost variance is -$500, which is over budgetb) The cost variance is -$500, which is under budgetc) The cost variance is $500, which is over budgetd) The cost variance is $500, which is under budget60. If a project is halfway completed and its schedule performance index is 110% and its costperformance index is 95%, how is it progressing?a) It is ahead of schedule and under budgetb) It is ahead of schedule and over budgetc) It is behind schedule and under budgetd) It is behind schedule and over budget61. To determine the cost of particular element in advance of the project, which technique can beemployed?a) Parametric estimatingb) As…………but…………sc) Forecastsd) All above62. _______________ is the degree to which a set of inherent characteristics fulfills requirements.a) Qualityb) Conformance to requirementsc) Fitness for used) Reliability63. What is the purpose of project quality management?a) To produce the highest quality products and services possibleb) To ensure that appropriate quality standards are metc) To ensure that the project will satisfy the needs for which it was undertaken





d) All of the aboveExamination Paper – Project Management11IIBM Institute of Business Management64. _______________ generates ideas for quality improvements by comparing specific projectpractices or product characteristics to those of other projects or products within or outside theperforming organization.a) Quality auditsb) Design of experimentsc) Six Sigmad) Benchmarking65. What tool could you use to determine whether a process is in control or out of control?a) A cause – and – effect diagramb) A control chartc) A run chartd) A scatter chart66. Complication to the critical path represents the formation of compound series of activities ofteninvolving different paths which has been termeda) The critical chainb) The critical pathc) TOCd) Resource path67. Six Sigma’s target for perfection is the achievement of no more than ________________ defects,errors, or mistakes per million opportunities.a) 6b) 9c) 3.4d) 168. The seven run rule states that if seven data points in a row on a control chart are all below themean, above the means, or all increasing or decreasing, then the process needs to be examined for_________________ problems.a) Randomb) Non – randomc) Six Sigmad) Quality69. What is the preferred order for performing testing on information technology projects?a) Unit testing, integration testing, system testing, user acceptance testingb) Unit testing, system testing, integration testing, user acceptance testingc) Unit testing, system testing, user acceptance testing, integration testingd) Unit testing, integration testing, user acceptance testing, system testingExamination Paper – Project Management12IIBM Institute of Business Management70. ___________________ is known for his work on quality control in Japan and developed the 14points for Management in his text Out of the Crisis.a) Juranb) Deming





c) Crosbyd) Ishikawa71. The theory of constraints (TOC) is successfully applied ina) Planningb) Checkingc) Manufacturingd) Controlling72. PMI’s OPM3 is an example of a ____________________ model or framework for helpingorganization improve their processes and systems.a) Benchmarkingb) Six Sigmac) Maturityd) Quality73. Which of the following is not part of project human resource management?a) Resource estimatingb) Acquiring the project teamc) Developing the project teamd) Managing the project team74. _________________ causes people to participate in an activity for their own enjoyment.a) Intrinsic motivationb) Extrinsic motivationc) Self motivationd) Social motivation75. At the bottom of Maslow’s pyramid or hierarchy of needs are _____________ needs.a) Self – actualizationb) Esteemc) Safetyd) Physiological76. ________________ power is based on a person’s individual charisma.a) Affiliationb) Referentc) Personalityd) LegitimateExamination Paper – Project Management13IIBM Institute of Business Management77. What technique can you use to resolve resource conflicts by delaying tasks?a) Resource loadingb) Resource levelingc) Critical path analysisd) Over allocation78. Which of the following is not a tool or technique for managing project team?a) Observation and conversationb) Project performance appraisalsc) Issue logsd) Social Styles Profile79. What do many experts agree is the greatest threat to the success of any project?





a) Lack of proper fundingb) A failure to communicatec) Poor listening skillsd) Inadequate staffing80. Which communication skill is most important for information technology professionals for careeradvancement?a) Writingb) Listeningc) Speakingd) Using communication technologies81. Which of the following is not a process in project communication management?a) Information planningb) Information distributionc) Performance reportingd) Managing stakeholders82. A building may not be constructed unless the planning permission for it has been obtained, this isthea) Legal constraintb) Quality constraintc) Cost constraintd) Logic constraint83. A ________________ report describes where the project stands at a specific point in time.a) Statusb) Performancec) Forecastd) Earned valueExamination Paper – Project Management14IIBM Institute of Business Management84. __________________ is an uncertainly that can have a negative or positive effect on meetingproject objectives.a) Risk utilityb) Risk tolerancec) Risk managementd) Risk85. A person who is a risk - ______________ receives greater satisfaction when more payoffs is atstake and is willing to pay a penalty to take risks.a) Averseb) Seekingc) Neutrald) Aware86. Which risk management process involves prioritizing based on their probability and impact ofoccurrence?a) Risk management planningb) Risk identificationc) Qualitative risk analysisd) Quantitative risk analysis





87. The 7-S framework of project management issues was promoted bya) McJonald and Co.b) McKinsly and Co.c) J & K Co.d) None88. Your project involves using a new release of a software application, but if that release is notavailable, your team has ______________ plans to use the current release.a) Contingencyb) Fallbackc) Reserved) Mitigation89. A risk _________________ is a document that contains results of various risk managementprocesses, often displayed in a table or spreadsheet format.a) Management planb) Registerc) Breakdown structured) Probability / impact matrixExamination Paper – Project Management15IIBM Institute of Business Management90. Your project team has decided not to use an upcoming release of software because it might causeyour schedule to slip. Which negative risk response strategy are you using?a) Avoidanceb) Acceptancec) Transferenced) Mitigation91. For non critical activities, network diagrams build in …………………………. at the start ofactivities.a) Temporaryb) Bufferc) Slackd) Anywhere92. If a project being undertaken by a particular project team, then these are referred asa) Resource capabilityb) Resource capacityc) Resource calendard) Resource pool93. The term ‘hedgehog syndrome’ meansa) Management problemb) Solving problemc) Repetition of problemd) Find out a problem94. What is the first procurement process?a) Planning contractingb) Planning purchasing and acquisitionsc) Requesting seller responsesd) Procurement management planning





95. The _____________ is the point at which the contractor assumes total responsibility for eachadditional dollar of contract cost.a) A breakeven pointb) Share ratio pointc) Point of reconciliationd) Point of total assumption96. We’re standing on this hill here. We want to be on that hill over there, this isa) Viewb) Visionc) Missiond) AimExamination Paper – Project Management16IIBM Institute of Business Management97. A ______________________ is a document prepared by a seller when there are differentapproaches for meeting buyer needs.a) RFPb) RFQc) Proposald) Quote98. Buyers often prepare a ______________________ list when selecting a seller to make thisprocess more manageable.a) Preferredb) Shortc) Qualified suppliersd) BAFO99. A proposal evaluation sheet is an example of a(n) ______________________.a) RFPb) NPV analysisc) Earned value analysisd) Weighted scoring model100. __________________ is a term used to describe various procurement functions that arenow done electronically.a) E – procurementb) eBayc) E – commerced) EMV

Examination Paper of Six Sigma Green BeltIIBM Institute of Business Management 1

CERTIFIED SIX SIGMA GREEN BELTEXAMINATION PAPERGuideline for paperTotal No. of Question is 100.The minimum passing marks is 40%





Each question carries 1 mark.Answer all the questions.Total: 100 Marks1. The Following is a sample data set.10 8 8 6 5What is the variance of this data set?a. 3.0b. 3.8c. 7.3d. 7.42. 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 detectc. Interpret data for a trend chartd. create a stratified tally diagram3. Comparing how a process is actually performed against the documented work instruction for thatprocess is an example of which of the following techniques?a. Quantitativeb. Qualitativec. Statisticald. Random sampling4. Attribute sampling should be used whena. 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.5. Scatter diagrams are best described asa. Histograms.b. Correlation analysis.c. Pareto analysis.d. Ishikawa diagrams.6. If data are plotted over time, the resulting chart will be aa. Run chartExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 2b. Histogramc. Pareto chartd. Poisson distribution7. To determine who are or might be customers for a specific process, it would be most useful to create aa. Pareto chartb. Flow diagramc. Cause and effect diagramd. Scatter diagram8. A production line uses signs at specific points on the line to indicate when components or raw materialsneed to be replenished. The practice is an example ofa. Kanbanb. Poka-yake





c. Checkpointsd. Hoshin9. Which of the following is a good tool for planning cycle time reduction and concurrent operations?a. A timelineb. A Pareto diagramc. An X and R chartd. A PERT chart10. Attribute and variable data are best described as which of the following? Attribute variablea. Counted values measured valuesb. Counted values visual featuresc. Measured values counted valuesd. Visual features counted values11. All of the following are common ways for people to react to conflict EXCEPTa. Competingb. Collaboratingc. Avoidingd. Sabotaging12. A quality manager has chosen to survey customer satisfaction by talking samples based on thecategories of frequency of use, categories of use, and demographic. This technique is known asa. Random samplingb. Data collectionc. Stratificationd. Customer classification13. Which of the following actions is Not used to reduce process cycle time?a. Analyzing current processesb. Reducing queue timesc. Setting prioritiesd. Implementing activity-based costing14. A company’s accounts payable department is trying to reduce the time between receipt and paymentof invoices and has recently completed a flowchart. Which of the following tools would be the for them touse next?Examination Paper of Six Sigma Green BeltIIBM Institute of Business Management 3a. Fishbone diagramb. Scatter diagramc. Box and whisker platd. Histogram15. In a manufacturing company, the machine shop is what kind of customer in relation to the humanresource department?a. Intermediateb. Hiddenc. Externald. Internal16. The primary purpose of a project charter is toa. Subdivide the project into smaller, more manageable componentsb. Provide management with a tool for selecting a project that addresses business needsc. 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 activities17. Sample selection of parts for inspection must be selected at random to ensurea. A minimum sample size.b. The probability of not rejecting the lotc. The probability of accepting the lotd. Finding typical characteristics of the lot.18. Which of the following are bases for establishing calibration intervals?I. StabilityII.PurposeIII.Degree of usagea. I and II onlyb. I and III onlyc. II and III onlyd. I, II, and III19. Specification limits are derived from which of the following?a. Process capability studiesb. Process control chartsc. Customer requirementsd. Historical data20. The primary purpose of a control chart is toa. Set Specifications and tolerancesb. compare operations.c. Determine the stability of a process.d. Accept or reject a lot of material21. When a control chart is used on a new process, capability can be assessed at which of the followingtimes?a. Before the chart is first startedb. After the first ten points are plottedc. When the plotted points hug the centerlined. After the process is shown to be in controlExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 422. Precision is best described asa. A comparison to a known standardb. The achievement of expected outgoing qualityc. The repeated consistency of resultsd. The difference between an average measurement and the actual value23. The overall ability of two or more operators to obtain Consistent results repeatedly when measuringthe same set of parts and using the same measuring equipment is the definition ofa. Repeatabilityb. Precisionc. Reproducibilityd. Accuracy24. 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 meansquared divided by the sample size?a. Rangeb. Standard deviationc. Varianced. Mode26. An X and R chart is used toa. Indicate process variationb. Specify design Limitsc. Interpret costsd. Identify customer expectations27. Which of the following is the most useful graphical tool for promoting an understanding of processcapability?a. A flowchartb. a histogramc. An affinity diagramd. An Ishikawa diagram28. The type of chart that presents the value of items in descending order is aa. Histogramb. Pareto chartc. U chartd. Cusum chart29. Measures of which of the following provide attributes data?a. Temperature in degreesb. Attendance at meetingsc. Weight in poundsd. Length in metric unitsExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 530. The fraction of nonconforming products is plotted on which of the following types of control chart?a. P chartb. U chartc. Np chartd. C chart31. A cause and effect diagram is a useful tool for doing which of the following?a. Determining the flow of a processb. Detecting shifts in a processc. Developing theories based on symptomsd. Arranging theories by defect count32. Which of the following statistics would best describe the central tendency of a sample of data?a. Modeb. Meanc. Standard deviationd. Range33. Which of the following types of tools or techniques is considered qualitative?a. Histogram





b. Frequency distributionsc. Pareto chartd. Process observations34. Which of the following techniques is most useful in narrowing issues and limiting discussion?a. Brainstormingb. Quality function deploymentc. Cause and effect analysisd. Mutilating35. In statistics, an estimation error that is persistent or systematic is calleda. Biasb. Sensitivityc. Randomd. Shift36. A customer satisfaction survey used the following rating scale:1= very satisfied2= Satisfied3= Neutral4= dissatisfied5= very dissatisfiedThis is an example of which of the following measurement scales?a. Nominalb. Ordinalc. Ratiod. Interval37. Which of the following techniques is used in identifying underlying problems?a. Cause and effect analysisExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 6b. Prioritization matrixc. Force field analysisd. Pareto analysis38. For a normal distribution, two standard deviation on each side of the mean would include whatpercentage of the total populationa. 47%b. 68%c. 95%d. 99%39. In measurement system analysis, which of the following pairs of data measures is used to determinetotal variance?a. Process variance and reproducibilityb. Noise system and repeatabilityc. Measurement variance and process varianced. System variance and bias40. Process data being used in the initial set-up of a process are assumed have a normal distribution. If thenominal (target) is at the center of the distribution, and the specification limits are set at = 3 from thecenter the Cpk is equal toa. -0.25





b. 1.00c. 1.33d. 1.6741. A green belt is going to monitor the number of defects on different size samples. Which of thefollowing control chart would be most appropriate?a. ub. npc. cd. p42. Correction, over-production, inventory, and motion are all examples ofa. wasteb. 5S target areasc. Noised. Value-added activities43. The primary factor in the successful implementation of six sigma is to havea. The necessary resourcesb. The support/leadership of top managementc. Explicit customer requirementsd. A comprehensive training program44. Which of the following types of variation is LEAST likely to occur in sequential repetitions of aprocess over a short period of time?a. Cyclicalb. Positionalc. Temporald. SeasonalExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 745. The primary reason that most companies implement six sigma is toa. Reduce defectsb. Improve Processesc. Improve profitd. Increase customer satisfaction46. The term used to describe the risk of a type I error in a test of hypotheses isa. Powerb. Confidence levelc. Level of significanced. Beta risk47. One characteristic of attributes data is that it is alwaysa. continuousb. Discretec. Expensive to collectd. Read from a scale of measurement48. Which of the following tests may be used to determine whether a sample comes from a populationwith an exponential distribution?a. Tb. Fc. Chi-square





d. ANOVA49. Which of the following tools are appropriate for a quality engineer to use in qualifying a process thathas variable data?I. An and R control chatII. A his to gramIII. A cc hartIV. A p charta. I and II onlyb. II and III onlyc. III and IV onlyd. I, II, and IV only50. The correlation coefficient for the length and weight of units made by a process is determined to be0.27. if the process were adjusted to reduce the weight of each unit by 0.5 ounce, the correlationcoefficient of the length and weight of the units made by the new process would be equal toa. 0.50b. 0.27c. 0.23d. -0.2351. A form, in either diagram or table format, that is prepared in advance for recording data is known as aa. Cause-and-effect diagramb. Pareto chartc. Flowchartd. Check sheetExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 852. A major drawback of using histogram in process control is that theya. do not readily account for the factor of timeb. Are relatively difficult to construct and interpretc. Require too many data pointsd. Require too many intervals53. Which of the following tools would be of the greatest use for finding the most efficient path andrealistic schedule for the completion of a project?a. Interrelationship diagramb. Activity network diagramc. Tree diagramd. Affinity diagram54. A control plan is designed to do which of the following?a. Supplement information contained in operator instructionsb. Support the production scheduling systemc. Provide a documented system for controlling processesd. Provide a method for tracking the design review process55. To determine the average number of nonconforming parts over time, which of the following attributecontrol chart would be most appropriate?a. A chatb. Np chartc. P chartd. U chat





56. Which of the following techniques is most appropriate for generating continuous improvement ideas?a. Tree diagramb. Brainstormingc. Prioritization matrixd. Interrelationship diagraph57. Which of the following tools is used extensively quality function deployment (QFD)?a. Affinity diagramb. Matrix diagramc. Cause and effect diagramd. Activity network diagram58. Which of the following tools is most likely to be organizing a list of ideas generated during abrainstorming session?a. Activity network diagramb. Affinity diagramc. Histogramd. Process control chart59. Which of the following tools would be most appropriate for collecting data to study the symptoms ofa problem?a. A check sheetb. A flow diagramc. A force field analysisd. An activity network diagramExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 960. Kaizen is defined asa. Re-engineeringb. Lean manufacturingc. Continuous improvementd. Error –proofing61. The LEAST informative of the four measurement scales is thea. Ratiob. Nominalc. Ordinald. Interval62. Which of the following can used to determine the goodness of fit of a distribution to a data set?a. T testb. ANOVAc. F restd. Chi square test63. A fair coin is tossed 10 times. What are the expected mean and variance of the number of heads?Mean variancea. 0.5 0.025b. 5.0 2.500c. 5.0 5.000d. 10.0 5.00064. A process capability analysis is NOT used toa. Determine the ability of a process to meet specifications





b. Maintain a process in a state of statistical controlc. Establish new specificationsd. Prioritize competing processes65. A type of line graph used to assess the stability of a process is called aa. Control chartb. Pareto chartc. Check sheetd. cause and effect diagram66. A process produces nonconformities according to a distribution. If the mean of the nonconformities is25, what is the standard deviation?a. 2.5b. 5.0c. 12.5d. 25.067. Five six-sided dice are rolled together 100 times. Two histograms are constructed: one for the 500individual results and one for the 100 averages of five results. In this situation, the individual resultsfollow a uniform distribution, while the averages follow which of the following distributions?a. Normalb. Student’s tc. BinomialExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 10d. Uniform68. A calibrated micrometer was used to take 10 replicated measures of a reference standard. If Xm=0.073, and the true value of the reference standard is 0.075, what is the bias of the micrometer?a. 0.001b. 0.002c. 0.073d. 0.07569. The power of a test for the difference between means is measured bya. Ab. 1-ac. Bd. 1-b70. A process is stable and its output is normally distributed. The process has a specification of16.73=0.01. What is the maximum process standard deviation if the Cp must be=1.5?a. 0.0011b.0.0022c. 0.0041d. 0.013371. Which of the following is the most effective technique for prioritizing critical factors foe problemsolving?a. Venn diagramb. Scatter diagramc. Pareto diagramd. Cause and effect diagram72. The main advantage of a matrix diagram is that it





a. Displays all the possible causes related to a problemb. Displays the strength of relationship between each paired combination of variablesc. Identifies, analyzes, and classifies the cause and effect relationship that among all critical issuesd. Identifies a sequence of actions and materials entering a process73. Poka-yake is best defined asa. Improving machine efficiencyb. Reducing field failures to virtually zeroc. Capturing the voice of the customerd. Preventing controllable defects74. Which of the following describes the 95% confidence interval of a 20% absentee rate in a departmentwith 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 meanb. The specification limits and s^ (Sigma Cap)Examination Paper of Six Sigma Green BeltIIBM Institute of Business Management 11c. The process mean and s^(Sigma Cap)d. The upper and lower specification limits76. Repeatability and reproducibility are terms that operationally definea. Biasb. Accuracyc. Discriminationd. Precision’77. A method that classifies data without significantly reducing accuracy or precision is known asa. Bias adjustmentb. Statistical efficiencyc. Blockingd. Coding78. If a process has a variance of 4 units and a specification of 96+4, what is the process performanceindex (Pp)?a. 0.33b. 0.66c. 1.00d. 1.5079. If a histogram has a distribution that is bimodal this indicates that thea. Process is in controlb. Distribution is abnormalc. Data collected is accurated. data has two points80. Which of the following best describes how an affinity diagram is used?a. Grasping organizational performance relative to contrasting datab. Prioritizing data from most signification to least significantc. Grouping ideas that are created during brainstorming





d. Identifying when a process is in control81. Warranty claims are classified in which of the following cost of quality groups?a. Internal failureb. External failurec. Appraisald. Prevention82. 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 problemb. Definition of the problem and its scopec. Organization of possible problem causesd. Collection of data to identify actual causes83. Steel bars are cut to cylindrical shafts by means of a lathe. The diameter and allowable tolerance ofthe shaft is 2.00=.001 inch. A control chart is used to monitor the quality level of the process. Which ofthe 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 inchb. the diameter of a single shaft below 1.999 inchExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 12c. An Apparent increasing trend in the shaft diametersd. Erratic in-tolerance or out-of-tolerance diameter measurements84. A sample consists of one or more units of product drawn from a lot or batch on the basis ofa. Defect of the productb. Random selectionc. Size of the productd. When the inspection process was completed85. What is the percent yield for a normally distributed process in which the item length specification is5.750=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 toa. Plot separate chart for each sourceb. Focus only on what makes thing go wrongc. Record everything people suggestd. Validate possible root cause87. Which of the following tools should be used a team is generating and prioritizing a list of options thatinclude highly controversial issues?a. Brainstormingb. Affinity diagramc. Nominal group techniqued. 5 whys88. 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 ininvestigating the problem would be toa. Check the inspection recordsb. Establish the correlation of the returns to shipmentsc. Brainstorm the potential causesd. Classify the returns by type and degree of serious90. Which of the following is the best definition of a flow chart?a. A diagram used to structure ideas into useful categoriesb. An illustration used to analyze variation in a processc. A picture used to separate steps of a process in sequential orderd. An analytical tool used to clarify opposing aspects of a desired changeExamination Paper of Six Sigma Green BeltIIBM Institute of Business Management 1391. Which of the following activities would NOT contribute to the effective functioning of a team?a. Eliminating unnecessary activitiesb. Development team performance measuresc. Defining process in detaild. Monitoring each member’s performance92. What is the standard deviation of the population below?10, 4, 16, 12, 8a. 4.00b. 4.47c. 16.00d. 20.0093. Which of the following tools would be most appropriate for collecting data to study the symptoms ofa problem?a. Check sheetb. Flow diagramc. Force-field analysisd. Activity network diagram94. Which of the following measures is a sufficient statistic for the parameter u?a. Medianb. Mid-rangec. Meand. Mode95. Positional, cyclical, and temporal variations are most commonly analyzed ina. SPC chartsb. Multi-vari chartsc. Cause and effect diagramd. Run charts96. Which of the following describes the deming method for continuous improvement?a. Cost of quality analysisb. Process mapc. Tree Diagramd. Plan-do-check-act cycle97. in analysis of variance, Which of the following distributions is the basis for determining whether thevariance estimates are all from the same population?





a. Chi squareb. Student’sc. Normald. F98. Which of the following statement best describes the set all value of a random variable?a. It is finite.b. It is an intervalc. It can be discrete or continuous.d. It can be tracked by using control charts or scatter plots.Examination Paper of Six Sigma Green BeltIIBM Institute of Business Management 1499. Which of the following is the best description of randomization?a. A technique used to increase the precision of an experimentb. A means of assuring representative samplingc. The repetition of an observation or measurementd. The relationship between two or more variables100. When the order of items is not important, which of the following is the method to use to determinethe number of sets and subsets of items?a. Combinationb. Permutationc. Factorizationd. Simulation



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