first year m. com degree examinations - kuvempu …€¦ · · 2015-08-03first year m. com degree...

QP Code 57221 Page No……1

First Year M. Com Degree Examinations September / October 2014

Directorate of Distance Education COMMERCE

DPA 510 Paper: I: Principles And Practice of Management Time: 3 hrs.] [Max.Marks: New Scheme: 80 Old Scheme: 70 Note: a. Sections – A, B and C are common and compulsory for the students

both the new and old schemes. b. Section – D shall be answered by only the students under New

Scheme ( with 20 internal assessment marks) .

Section-A (5X2=10)

Note: a. Answer all the five sub – questions. b. Each sub-questions carries two marks c. Answer to each sub-questions shall be in not more than six

sentences. 1.

a) Define span of control

b) Mention any four communication barriers

c) Define management by objectives.

d) What is decentralization?

e) What is organizing?

Section-B (3X10=30)

Note: a. Answer any three questions. b. Each sub-questions carries 10 marks c. Answer to each question shall be in not more than five pages.

2. Discuss the contributions of F.W.Taylor to management thought.

3. “ Managerial planning seeks to achieve a co-ordained structure of operations”.

comment

4. Critically examine the principles of MBO.

Contd…..2


5. “Organizing is an important tool to achieve a co-ordained structure of operations”. Do you agree? Why?

6. What do you mean by delegation? Discuss its importance in the organizational set-up of the business.

Section-C (2X15=30)

Note:

a. Answer any two questions.

b. Each question carries 15 marks.

c. Answer to each theory question shall be in not more than eight pages.

7. Discuss the assumptions of McGregor’s theory ‘X’ and theory ‘Y’.

8. Critically examine the different approaches to the study of the leadership behavior.

9. Read the following case carefully and answer the questions given at the end of the case.

Sumprint :td was established in the mid-1980s as a partnership. The enterprise was converted to a private limited company in the second year of operation. The shares were wholly owned by members of the two families of the original founders. The business was initially concerned with printing of leaflets, club news letters and similar small jobs. This aspect of the company’s activities had been largely superseded by firm contracts of printing technical manuals and brouchers. By the end of 2000 the company had grown to employ around 180 staff. Fifty of these employees were engaged in marketing finance, administration and personnel functions. There was minimal interaction between these functions and each tended to operate as separate entities. The financial department and small marketing section kept the general operation of the sales and production activities closely under their supervision. The administration department operated all the monitoring and control systems and provided clerical support to finance, sales and production. The function was well organized and was managed by the daughter of the founders. She had gained considerable working experience, initially with a large charity and subsequently as office manager in a small engineering business. She had held her present post for four years and had acquired a high level of self assurance. Her confident manner made her

Contd…..3


dealings with the other departments easier to manage. Indeed, on some occasions it made the situation possible. The same level of development and attention had not been give to the personnel aspects of the business. This function had always tended to receive less attention and had been without any designated person in charge for some months. Now that the directors had taken on an experienced personnel manager, there were hopes that the situation would improve. Almost necessary each department had handled their own personnel needs. With this background it was no surprise to the new personnel Manager that there was little in the way of formal systems and procedures. He was working on these when there was an incident in the production department. The supervisor wished to take disciplinary action against an employee for disobeying an instruction and the employee wished to register a grievance against the supervisor for the way the supervisor had acted. This situation, if property handled, would provide the personnel Manager with the opportunity to shoe the importance of the function. At the same time the Administration Manager had employed two new staff to start at the beginning of the next month. This gave her three weeks to produce an induction programme. One of the positive employee was a mature woman with considerable experience of office routine while the other was an eighteen-year-old straight from college. The Administrative Manager knew she would get no help from personnel, as she had always been very critical of the way the personnel function had been neglected. In contrast to this she offered some assistance to the Personnel Manager, both personally and by two of the staff. Unfortunately, this offer was rejected in a rathe offhand manner. He said that he wanted to sort things out himself. The purchasing of materials and general items had always been the responsibility of the Administration Manager, but stock control and the small warehouse was the responsibility of the Production Supervisor. The arrangement nominally worked satisfactorily, but when there was a breakdown on the flow of information, production could be interrupted. Questions: a) Discuss the weakness of the informal structure in Sumprint and suggest how

improvements could be made. b) Advice the Personnel Manager on the immediate way forward in the combined

disciplinary and grievance case. c) Discuss the approach the Administration Manager should take to devise the

induction programme for the two new staff.

Contd…..4


Section-D (1X10=10)

Note:

a. This Section is only for the student of NEW Scheme (with 20

internal assessment marks).

b. Answer any one question and it carries 10 marks

c. Answer to the theory question shall be in not more than five pages.

10. “Decision making is the primary task of the manager”. Critically analyze this statement.

11. Explain the different types of communication. Discuss the comparative advantages of verbal and written communications.

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First Year M. Com Degree Examinations August / September 2014


DPA 530 Paper: III: Financial Management Time: 3 hrs.] [Max.Marks: New Scheme: 80 Old Scheme: 70 Note: a. Sections – A, B and C are common and compulsory for the students



Section-A (5X2=10)


sentences. 1.

a) How do you compute wealth of a firm?

b) What is modified IRR?

c) Define explicit cost of capital.

d) What do you mean by Home-made leverage?

e) What is operating cycle?

Section-B (3X10=30)


2. “Wealth maximization is superior than the profit maximization”. Explain.

3. Coefficient of variation is superior to standard deviation in measuring projects”.

Explain with illustration.

4. Explain the role of IFCI in industrial development.

Contd…..2


5. The Broasdway ltd., belong to a risk class whose appropriate capitalization rate is 20

percent. It has 50,000 shares and currently selling at Rs 100 each. The firm’s expected earning to ordinary share holders are Rs. 12,00,000 and it has an investment proposal requiring an outlay of Rs 15,00,000. The firm is contemplating the declaration of Rs 16 as divided at the end of current financial year. Assuming MM theory you are required to compute value of the firm when (1) dividends are declared, and (2) when dividend are not declared.

6. You are a financial analyst for ABC Ltd. The director of investments has requested you to analyse the two projects – Project A and Project B. the investment will be made in the beginning of 2014 financial year. The following are the cash flows after tax before depreciation.

Year 2014 205 2016 2017 2018 Project A (Rs. In Lakhs) -40 26 12 12 04 Project B (Rs. In Lakhs) -38 14 14 14 14

ABC Ltd spent Rs. 2,00,000 on conducting marketing survey and each project requires an additional working capital of Rs 50,000. The proposed investment are eligible for 15% investment allowance. You are requested to suggest which project is feasible when ABC adopts PBP, NPV and PI.

Section-C (2X15=30)

Note:




7. Discuss the various capital budgeting evaluation techniques with merits, demerits and decision rule.

8. Discuss the various factors considered while estimating working capital.

9. Funfosys Ltd’s., present book value capital structure is as follows.

RS Equity share capital (Rs. 10 each) 80,00,000 Preference share capital (Rs 100 per share) 24,00,000 Debenture capital (Rs 100 per debenture) 56,00,000 1,60,00,000

All these securities are traded in the secondary market and their recent prices are:

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Equity stock Rs. 20 per share ; preference stock Rs 110 per share; and Debentures Rs 105 per debenture. Anticipated external financing opportunities are: a) 14 percent, 10 year redeemable debentures of face value 100. Flotation cost 4

per cent. b) 16 per cent redeemable preference shares (8 years), it involve a flotation cost

of 5 per cent and the sales price Rs. 100. c) Equity share: Rs 2 per share brokerage, Rs 20 sales price.

In addition, Funfosys is expecting to pay a dividend of Rs 5 per share at the end of first year. The dividends are anticipated to grow at 7 per cent and the firm follows 100 percent dividend payout ratio. The corporate tax rate is 35 per cent. Compute cost of capital.

Section-D (1X10=10)

Note:





10. State the essence of NOI approach to capital structure and value of the firm.

11. Ankush Ltd is considering a change in cash discount policy from 2% to 3% and extension of credit period from 30 days to 45 days. This change is expected to,

(i) increase the total sales from R 50 lakhs to R 60 lakhs; (ii) decrease the proportion of customer taking discount from 0.70 to 0.60; and (iii) increase the average collection period from 20 days to 24 days.

The firm’s cost of capital is 18% and the ratio of variable cost to sales is 0.85. calculate the effect of change in the discount policy. Do you recommend it? Why?

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DPA 540 Paper: IV: Accounting Theory Time: 3 hrs.] [Max.Marks: New Scheme: 80 Old Scheme: 70 Note: a. Sections – A, B and C are common and compulsory for the students



Section-A (5X2=10)


sentences. 1.

a) What is meant by accounting standard?

b) Mention any four important objectives of Financial reporting.

c) What do you mean by GAAPs?

d) Define Accounting Conventions.

e) What is matching principle?

Section-B (3X10=30)


2. Select any Accounting Standard issued by ICAI and explain the major aspects of that

Standard.

3. Write an analytical note on the early history of Accounting thought.

4. “Materiality is essentially a matter of professional judgment”. Do you agree? Why?

Contd…..2


5. Define Human Resource Accounting and bring out a case for capitalization of human resource costs.

6. Prepare a statement showing the amount of depreciation under Current Cost Accounting (CCA) method for each of the four years as well as the backlog depreciation for a certain item of the asset from the following details.

a. Cost of Machine R 50,000 b. Estimated life: 4 years c. Residual value: Nil d. Inflation factor: 10% per annum

Assuming straight line method of depreciation.

Section-C (2X15=30)

Note:




7. Describe the Current Purchasing Power Method and explain how the items of Financial Statements are restated under Partial and under Complete Revelation Methods.

8. Compare and contrast Entity Theory and Proprietary Theory.

9. A company has a capital base of R 10 crore and has earned profits to the tune of R 11 lakhs. The return on investment (RoI) of the particular industry to which the company belongs is 12.5%. if the service of a particular executive are required by the company, it is expected that the profits will increase by R 2.5 lakhs over and above the target profit.

Determine the amount of maximum bid price for that particular excecutive and the maximum salary that could be offered to him.

Section-D (1X10=10)

Note:






10. “Conventional financial statements fail to exhibit true and fair view of business”. Do you agree? Why?

11. Describe the inductive approach to accounting theory construction.

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DPA 510 Paper: II : Marketing Management Time: 3 hrs.] [Max.Marks: New Scheme: 80 Old Scheme: 70 Note: a. Sections – A, B and C are common and compulsory for the students



Section-A (5X2=10)


sentences. 1.

a) Define marketing management.

b) What is marketing research?

c) What is product identification?

d) How sales force is motivated?

e) Identify any four characteristics of services.

Section-B (3X10=30)


2. Write an note on marketing environment.

3. Define market segmentation and explain the bases for market segmentation.

4. Explain the factors that influence channel selection in marketing mix.

5. What is anew product? Explain the strategies for the new product development.

6. Discuss the features of product life cycle..

Contd…..2


Section-C (2X15=30)

Note:




7. What are the guidelines for selecting a target market? Explain pre-purchase and post-purchase behavior model.

8. Explain the marketing mix strategies for services..

9. Read the following case carefully and answer the questions given at the end of the case.

Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports. The company focused on the providing high-quality running shoes designed especially for the athletics. Founder Philip Knight believed that high-tech shoes for runners could be manufactures at comparative prices if imported from abroad. The company’s commitment to designing innovative footwear for serious athlets helped it build a cuit following among U.S. consumers. Nike believes a “Pyramid of influence” where product and brand choices were influenced by the preferences and behavior of a small percentage of top athletes. Therefore, from the start, Nike’s marketing campaigns featured winning athletes as spokes people. Nike’s first spokeperson, runner Steve prefontaine, had an irreverent attitude that ,matched the company’s spirit. In 1985 Nike signed up then-rookie guard Michale Jordan as a spokeperson. Jordan was still an up-and-comer, but he personified superior performance. Nike’s bet paid off. The Air Jordan line basketball shoes flew off the shelves, with revenues of over $100 million in the first year alone. In 1988, Nike aired the first ads in its $20million “Just Do It” ad campaign. The campaign, which ultimately features 12 TV spots in all, subtly challenged a generation of athletic enthusiasts to chase their goals. It was a natural manifestation of Nike’s attitude of self empowerment through sports. As nike began expanding overseas of Europe, however it found that its U.S. style ads were seen there as too aggressive. Nike realized it had to “authenticate” its brand in Europe the way it had in the United States. That meant building credibility and relevance in Europe sports. Especially soccer (known outside the United States as football). Nike became actively involved as a sponsor of youth leagues, local clubs and national teams.

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Authenticity also required that consumers see athletes using the product, especially athletes who win. The big break came in 1994, when the Brazilian team (the only national team for which Nike had any real sponsorship) won the World cup. That victory in the World’s most popular sport helped Nike succeed in other international market such as China, where Nike came to command 10% of the shoe market. By 2003 overseas revenues surpassed U.S. revenues for the first time , and by 2006 international divisions generated nearly $7.3 billion in revenue, compared to $ 5.7 billion from the Unioted states. In addition to expanding overseas, Nike moved into new athletic footwear, apparel, and equipment product categories. These included the Nike Golf band of footwear, apparel and equipment, which were all endorsed by megastar Tiger Woods. In 2005 Nike introduced an urban themed collection of retro footwear and apparel bearing the name of the original company. Blue ribbon sports. Blue ribbon sports designs-which included jeans, belts,sweaters and woven shirts were sold at high-end retailers such as Barney’s and Fred Segal. Today, Nike dominants the athletic footwear market swooshes abound on everything from wristwatches to golf clubs to swimming caps. As a result of its expansion across geographic markets and product categories, Nikeis the top athletic apparel and footwear manufacturer in the world, with corporate fiscal 2007 revenues of nearly $ 16 billion. Questions: a) State the strategies used by Nike to define marketing for the 21st century. b) How does Nike co-relates its technique of marketing with the holistic marketing?

Section-D (1X10=10)

Note:

a. This Section is only for the student of NEW Scheme (with 20 internal assessment marks).

b. Answer any one question and it carries 10 marks c. Answer to the theory question shall be in not more than five pages.

10. Discuss the ethical, social and legal aspects of marketing.

11. Write an analytical note on Sigmund Freudian Psycho analytical theory..

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first year m. com degree examinations - kuvempu …€¦ · · 2015-08-03first year m. com degree...

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