Virtual University Solved Assignments Online Quiz Past Papers GDB VUsolutions VU solutions

Question # 1 of 20

It is assumed that a perfectly rational decision maker:

Select correct option: Does not follow rational assumptions

Does not consider value maximizing as an objective

Offers inconsistent decisions

Would be objective and logical

Question # 2 of 20

Power and authority that are concentrated at the upper levels of the organization as much as possible, is called:
Select correct option: Authority

Unity of command

Unity of direction

Centralization

Question # 3 of 20

Strategic plans cover a broader view of the organization and include the formulation of goals, whereas operational plans define ways to:
Select correct option: Maximize the organization’s profits

Achieve the goals

Minimize the number of employees

Provide the most efficient methods of production

Question # 4 of 20

Which stage of strategic management process determines; “What the strategy is”?
Select correct option: Formulation stage

Implementation stage

Execution stage

Evaluation stage

Question # 5 of 20

Tax revenues and government grants for a city are called its:
Select correct option: Human resources

Financial resources

Physical resources

Informational resource

Question # 6 of 20

To determine the _____________, a manager must determine what is relevant or important in resolving the problem.
Select correct option: Geocentric behavior needed

Number of allowable alternatives

Weighting of decision criteria

Decision criteria

Question # 7 of 20

Which of the following refers to the rights inherent to a position that allows a manager to tell subordinates what to do and expect them to do it?
Select correct option: Responsibility

Unity of command

Chain of command

Authority

sec(s) Question # 9 of 20 ( Start time: 12:42:46 PM ) Total Marks: 1
When a manger made a decision and he is uncertain about the outcomes. His decision is likely to be:
Select correct option: Of Poor Quality

Unacceptable

Successful

Risky

sec(s) Question # 10 of 20 ( Start time: 12:43:27 PM ) Total Marks: 1
Which of the following is NOT a process for motivating employees through management by objectives (MBO)?
Select correct option: Managers set objectives for the employees

Managers develop action plans

Managers and employees periodically review the employee's performance

Managers make performance appraisals of employees

sec(s) Question # 11 of 20 ( Start time: 12:44:12 PM ) Total Marks: 1

The threat of new entrants is the extent to which new competitors can easily enter a market. Thus the threat of new entrants for a local restaurant than a automobile company is:
Select correct option: High

Low

Moderate

Equal

Question # 12 of 20 ( Start time: 12:44:57 PM ) Total Marks: 1
Interpersonal and communication skills are often referred to as:
Select correct option: Technical skills

Conceptual skills

People skills

Planning skills

Question # 13 of 20 ( Start time: 12:45:29 PM ) Total Marks: 1
Which famous management thinker developed "Theory Y"?
Select correct option: Douglas McGregor

Abraham Maslow

Frederick Herzberg

Chester Barnard

Question # 14 of 20 ( Start time: 12:45:46 PM ) Total Marks: 1
The time period for the construction of pyramids was:
Select correct option: 10 years

15 years

30 years

20 years

Question # 15 of 20 ( Start time: 12:46:11 PM ) Total Marks: 1
According to Douglas McGregor, __________ represents a pessimistic, negative view of workers, who are considered irresponsible, resistant to change and lacking ambition.
Select correct option: Theory Y

Theory X

Type A

Type B

Question # 16 of 20 ( Start time: 12:46:32 PM ) Total Marks: 1
There are many healthcare products manufacturers. XYZ Company manufactures only personal hygiene products. It markets such products deodorant, body powder, body creams, and exfoliates. Because it only stocks body care and personal hygiene products, it is using _____ strategy.
Select correct option: Prospecting

Emergent

Focus

Cost leadership

Question # 17 of 20 ( Start time: 12:47:25 PM ) Total Marks: 1
The decision-making style that would be very useful for managers at the top of an organization who are responsible for long range planning, need creative solutions and a broad outlook would be:
Select correct option: Conceptual

Analytical

Behavioral

Directive

Question # 18 of 20 ( Start time: 12:47:59 PM ) Total Marks: 1
A primary benefit of MBO is:
Select correct option: Avoid competition

Resistance against new entrance

Improve employee motivation

Increase resources

Question # 19 of 20 ( Start time: 12:48:24 PM ) Total Marks: 1
The greater the risk involves in making a decision, the greater the:
Select correct option: Outcomes

Information available

Rewards

Uncertainty

Question # 20 of 20 ( Start time: 12:48:52 PM ) Total Marks: 1

Straightforward, familiar and easily defined problems are called:
Select correct option:
Unstructured problems
Structured problems
Unique problems
Non-programmed problems

____________________________________

1) What is the basic assumption of situational approaches to leadership?

► Increasing worker job satisfaction through consideration behavior will get leaders the best results

► Initiating structure for employees by telling them what to do and how to do.

► The appropriate leadership style varies from one set of circumstances to another

► Effective leaders possess certain traits that are situation specific

2) Which of the following statement is NOT true for productivity?

► Productivity is a major goal in virtually every organization

► For individual companies, increased productivity means a more competitive cost structure

► Productivity is a composite of people and operations variables

► Productivity can be improved by dealing with large number of suppliers

3) All of the following are primary management functions EXCEPT:

► Setting goals

► Hiring employees

► Monitoring activities

► Motivating employees

Question No: 4 ( Marks: 1 ) - Please choose one

Which one of the following is explaining the Entrepreneur in the best way?

► Goals Setter

► Decision Maker

► Communicator

► Initiator

Question No: 5 ( Marks: 1 ) - Please choose one

The success of the business can be judged through:

► Customer satisfaction

► Achieving of Organizational Goals

► Cost price reduction

All of the given options

Question No: 6 ( Marks: 1 ) - Please choose one

LG and Sony electronics agreed to cooperate on developing new technologies. Representatives from each firm meet regularly to coordinate this new venture. Which of the following roles these mangers are playing?

► Liaison

► Leader

► Disseminator

► Spokesperson

Question No: 7 ( Marks: 1 ) - Please choose one

Determining the tasks to be accomplished, how the tasks are to be grouped and who is responsible for the various tasks is known as which of the following processes of management?

► Planning

► Organizing

► Leading

► Controlling

Question No: 8 ( Marks: 1 ) - Please choose one

Which level of management is responsible for making organization wide decisions and establishing the plans and goals that affect the entire organization?

► Non managerial staff

► Top management

► Middle management

► First-line management

Question No: 9 ( Marks: 1 ) - Please choose one

Henry Fayol described principles of management in the form of:

► 11 points

► 12 points

► 14 points

► 15 points

Question No: 10 ( Marks: 1 ) - Please choose one

When management provides orderly personnel planning and ensures that replacements are available to fill vacancies, it is called :

► Division of work

► Discipline

► Unity of command

► Stability of tenure of personnel

Question No: 11 ( Marks: 1 ) - Please choose one

The father of industrial psychology is:

► Robert Owen

► Hugo Munsterberg

► Mary parker Follett

► Max Weber

Question No: 12 ( Marks: 1 ) - Please choose one

Environment reacts to the output of organization and provides:

► Feed forward

► Input

► Output

► Feedback

Question No: 13 ( Marks: 1 ) - Please choose one

Which of the following styles of decision making is characterized by individuals who prefer complete information and consider several alternatives?

► Analytic

► Conceptual

► Directive

► Behavioral

Question No: 14 ( Marks: 1 ) - Please choose one

The intent of which of the following is to reduce uncertainty by playing out potential situations under different specific conditions?

► Project management

► Scheduling

► Environmental analysis

► Scenario planning

Question No: 15 ( Marks: 1 ) - Please choose one

This statement shows which of the following attributes of mission statement?

► Desired public image

► Customers

► Location

► Self concept

Question No: 16 ( Marks: 1 ) - Please choose one

Which of the following is an area in the environment that if exploited may generate high performance for organization?

► Strength

► Weakness

► Opportunity

► Threat

Question No: 17 ( Marks: 1 ) - Please choose one

Which of the following is a system in which specific performance objectives are jointly determined by subordinates and their superiors and progress towards objectives is periodically reviewed?

► Management by objective

► Management by resources

► Management by authority

► Management by system

Question No: 18 ( Marks: 1 ) - Please choose one

Most managers believe that if an MBO (program is to be successful, it must start at:

► Non-managerial level

► Top Level

► Middle level

► Lower level

Question No: 19 ( Marks: 1 ) - Please choose one

A firm that stops buying supplies from other companies and begins to provide its own supplies, has diversified through:

► Forward vertical integration

► Backward vertical integration

► Forward horizontal integration

► Backward horizontal integration

Question No: 20 ( Marks: 1 ) - Please choose one

In BCG matrix which of the following businesses have the largest share of a rapidly growing market?

► Cash cow

► Question mark

► Star

► Dogs

VUsolutions.blogspot.com (VU solutions)

ECONOMICS

Question 01
A firm pays in cash $250000 in wages, $55430 in interest on borrowed money capital and $74320 for the yearly rental of its factory building. If the entrepreneur worked for somebody else as a manager, he would earn at most $44500 per year and if he lent out his money capital to somebody else in a similarly risky business, he would at most receive $16600 per year. Keeping in view the above information:
(A) Calculate:
a) The explicit cost of the firm.
b) The implicit cost of the firm.
c) The total cost of the firm.
(B) If the entrepreneur received $495680 from selling his years output, then calculate his total profit.
(C) What will be the total profit if the entrepreneur’s total revenue were $413934 instead?


........................................

ANSWER:
(A)
a. Explixit cost of the firm:

Explicit cost = $25,000+$74320
= $324,320
b. Implicit cost of the firm:

Implicit cost = $44500+$16600
= 61,100
c. Total cost:

Total cost = explicit+implicit
= $324320+$61100
= $385420
(B) TOTAL PROFIT:
Profit=Revenue-Cost
= $495680-$385420
= $ 110260

(D) TOTAL PROFIT:
Profit= $413934-$385420
=$28514
Ans
Question 02
(A) Find the value of multiplier if:
a) MPC = 0.39
b) MPS = 0.64
(B) If the value of multiplier is 2.49 then find out:
a) MPC
b) MPS
(C) What is the relationship between the value of multiplier and MPC?
(D) Find the change in equilibrium level of output when there is a $25 increase in investment spending and the MPC is 0.75.
ANSWER:
A. Value of multilpier:

a. Mpc=0.39
K=1/1-mpc
=1/1-0.39
=1/0.61
=1.6
b. Mps=0.64
K=1/mps
=1/0.64
=1.56

B.

a. K=2.49 , Mpc=?

K=1/1-mpc
2.49(1-mpc0=1
2.49-2.49mpc=1
2.49-1=2.49mpc
1.49=2.49mpc
Mpc=0.6
b. K=2.49 mps?
K=1/mps
2.49=1/mps
2.49(mps)=1
Mps=0.40
C. RELATIONSHIP BETWEEN THE VALUE OF MULTILPER AND MPC:

k is strong when mpc increase
Or k is weak when mpc is decrese
K=more than 1 and less than infinity
MPC=less than 1 more than 0
D. CHANGE IN EQUILBRIUM LEVEL OF OUTPUT:

If the invest is increase 25 the change in equilibrium level of output will increase.if mpc=0.75 will be stronger


))))))))))))))))))))))))))))))))))))))))))))))))


Another solution
.......................


Explicit costs are those which are clearl stated and recorded, such as:
- material costs - prices paid to suppliers;
- labour costs - wages paid
- depreciation costs on fixed assets;
- other expenses, such as rates, building rental etc.

Implicit costs are benefits forgone by not using the factors of production in their next most profitable way.


Q # 1 Part (A) to easy hai, iss se ho jaye ga...

explicit costs = 250,000 (wages) + 55,430(interest) + 74,320(rent)
implicit costs = 44,500 (income forgone which the entrepreneur would have received had he worked somewhere else as a manager, yeh aap ko samjhane ke liye likha hai) + 16,600 (benefit forgone)
total cost = explicit cost + implicit cost

part (B) mein confusion hai...
kuch students ne total profit ko aisay calculate kiya hai:
total profit = total revenue - explicit cost

lekin mere khayal se it should be;
total profit = total revenue - total cost (explicit cost + implicit cost) [but i'm not sure about it yet, lekin mein aisay hi karon ga]

kyon ke ek concept hota hai "Accounting profit" and "Economic profit" ka... jo handouts mein to shayad kahin nahi likha, but CA ki book se bata raha hoon...
Accounting profit = total revenue - explicit cost
economic profit = total revenue - (explicit cost + implicit cost)

ab question mein kahin nahi likha ke hum ne accounting profit find karna hai ya economic profit .. mein ne eco401 deptt ko mail bhi ki thi yehi confirm karne ke liye, unhon ne kaha ke dear student, read lecture # 17. lecture # 17 mein bas total profit ka formula diya hai (total profit = total revenue - total cost)

anyways kyon ke yeh subject economics hai, and question bhi silent hai about accounting or economic profit, so i'll calculate economic profit... [agar kisi ko nahi samjh aa raha accounting and economic profit mein difference, to kindly confuse mat hoon, just remember "total profit = total revenue - total cost"]


Q # 2:

yeh bahut hi easy question hai...

part (A)
multiplier ki value find karni hai...
multiplier hota hai... "the ratio of change in the national income to a change in investment" [handouts mein bhi likha hai, but different words mein likha ho ga, don't get confused]

[multiplier ka concept mein CA book se copy kar raha hoon, jo parhna chahay parh sakta hai, but agar na samjh ayi , to kindly don't get confused, just remember we can find the value of multiplier (K) by these formulas:

1. K = delta y/ delta I
2. K = 1/MPS
3. K = 1/1-MPC

and if someone wants to read the detail, he/she can the text below (in blue color), but again agar yeh below concept na samjh aya to don't get confused, coz mere khayal se yeh shayad handouts mein hai bhi nahi...]

K = delta y(change in income)/ delta I(change in investment)

-K ----> multiplier
-delta -> symbol hota hai... means change

the above method is a straightforward way of defining the concept of the multiplier. Another way to put it would be as follows: [copying from CA book]

MPS = ΔS/ delta Y

1/MPS = delta Y/delta S (above equation ko hi change kiya hai) -------- (i)

K = delta Y/ delta I --------------- (ii)

Since delta S = delta I [ Y = C + S, Y = C + I therefore S = I or delta S = delta I]

therefore. delta Y/ delta S = delta Y / delta I

K = 1/MPS --------> iss se bhi multiplier ki value find kar sakte hain...

And MPC + MPS = 1
MPS = 1 - MPC

so,

K = 1/1-MPC -------> iss se bhi multiplier ki value find kar sakte hain...

yeh to tha book se, jo mein ne yahan likha... yeh assignment mein sab kuch likhne ki zarorat nahi, coz only 2, 2 marks ke questions hain :-P

part (A), (a)
K = 1/MPS just put the values and u'll get the answer, and same will be done for part (B)

part (C) there is a direct relationship b/w MPC and the value of multiplier... if the MPC is higher, the size of multiplier would be high and vice versa...

Part (D) [iss mein thori confusion hai mujhe, but mein ne jaisay kiya hai, woh bata daita hoon]
pehle multiplier (K) ki value find karo,

then multiplier ka jo ist formula likha tha, K = delta Y/delta I iss mein values put kar do,

-delta Y = find karna hai
-delta I = given (25$)
-K = value pehle find karo.
.................................................



another solution
----------------


Question no 1



A

a) Explicit Cost


Wages + Interest on borrowed Capital + Factory Rent

$250,000 + $55,430 + $74,320 = $379,750



b) Implicit Cost

Cost of forgone payment he would have received working as a manger = $44,500
Cost of forgone payment he would have received working as a manger = $16,600
Answer : $61,100

c) Total Cost = Explicit Cost + Implicit Cost = $379,750 + $61,100 = $440,850



Part B His total Profit = $495,680 - Explicit Cost (379,750) = $115,930


Part C If sales would have $413,934 then $413,934 - 379,750 = $34184


Question no 2

Part A
a)

The size of the multiplier effect is 1/(1-MPC).
so multiplier = 1/1-0.39 = 1/0.61 = 1.639



b) The multiplier is the reciprocal of the MPS

= 1/0.64 = 1.5625



Part B If the value of multiplier is 2.49 then


MPS = 1/2.49 = 0.4016

MPC = 1-0.4016 = 0.59839



Part C

The value of multiplier is directly related to the magnitude of MPC.


Part D


= 1/1-0.75 =4

= delta y = K( delta L)
=4 (25$)
=100$
..........

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