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DBA 1602 - Statistics For Management


Model Paper 1
PART A - (10 x 2 = 20 marks) 1. What is standard error? 2. Distinguish clearly between point estimate and interval estimate. 3. Explain the following with reference to testing of hypothesis: Critical Region. 4. Explain the various uses of X2 test. 5. What is ANOVA? 6. The following date represent the number of hours that a rechargeable hedge trimmer operate before a recharge is required 1.5 2.2 0.9 1.3 2.0 1.6 1.8 1.5 2.0 1.2 1.7 Use the Sign test to test the hypothesis of the 0.05 level of significance that this particular trimmer operates with a median of 1.8 hours before requiring a recharge. 7. What is regression? 8. State the utility of regression in the field of economic analysis. 9. What are the various method of determining trend in a time series? 10. What do you mean by seasonal fluctuations in time series? PART B - (5 x 16 = 80 marks) 11. Use the Kruskal-Wallis test to test for differences in mean among the three samples. If a = 0:01, what are your conclusions? Sample I: 95 97 99 98 99 99 99 94 95 98 Sample II: 104 102 102 105 99 102 111 103 100 103 Sample III: 119 130 132 136 141 172 145 150 144 135 12. (a) (i) Out of 20,000 leader accounts, a sample of 600 accounts was taken to test the accuracy of posting and balancing and 45 mistakes were found. Assign limits within which the number of mistakes can he expected to lie at 5% level. (ii) A machine produces metal rods used in' an automobile suspension system. A random sample of 15 rods is selected and the diameter is measured. The resulting data are shown below. Assume that rod diameter is normally distributed. Construct a 95% two-sided confidence interval on the mean rod diameter. 8.24 8.23 8.20 8.21 8.20 8.28 8.23 8.26 8.24 8.25 8.19 8.25 8.26 8.23 8.24 Or (b) (i) Discuss the importance of student's t-'distribution in tests of significance. When are the tests based on this distribution preferred to the other methods based on the normal distribution? (ii) The diameter of the dot produced by a printer is normally distributed with a mean diameter of 0.002 inch and a standard deviation of 0.0004 inch. (1) What is the probability that the diameter of a dot exceeds 00.0026 inch? (2) What is the probability that a diameter is between 0.0014 and 0.0026 inch? (3) What standard deviation of diameters is needed so that the probability in part (b) is 0.995? 13.(a) (i) Ten individuals are chosen at random from a population and their heights are found to be (in inches): 63, 63, 66,67, 68, 69, 70, 70 and 71 and 71

2 In the light of the data, discuss the suggestion that the mean height in the population is 66 inches. (ii) Two machines are used for filling plastic bottles with a net volume of 16.0 ounces. The fill volume can be assumed normal, with standard- deviation 0.020 and. 0.025 ounces respectively. A member of the Quality engineering staff suspects that both machines fill to the same net volume, whether or not this volume is 16.0 ounces. A random sample of 10 bottles is taken from the output of each machine. Machine I: 16.03 16.04 16.05 16.05 16.02 16.01 15.96 15.98 16.02 15.99 Machine II: 6.02 15.97 15.96 16.01 15.99 16.93 16.04 16.02 16.01 16.00 Machine III: 16.02 15.97 15.96 16.01 15.99 16.03 16.04 16.02 16.01 16.00 Do you think the engineer is correct? use a = 0.05. Or (b) The contingency table below summarizes the results obtained in' a study conducted by a research organisation with respect to the performance of four competing brands of toothpaste among the users. Brand A Brand B Brand C Brand D No cavities 9 13 17 11 One to five cavities 63 70 85 82 More than 5 cavities 28 37 48 37 Test the hypothesis that incidence of cavities is independent of the brand of the toothpaste used. 14.(a) To study the performance of three detergents and three different water temperature, the whiteness readings were obtained with specially designed equipment. Detergent Water temp A B C Cold water 57 55 67 Warm water 49 52 68 Hot water 54 46 58 Perform a two-way analysis of variance using 5% level of significance. Or (b) (i) Weights in kilograms of 10 students are given below: 38,40,45,53,47,43,55,48,52,49 Can we say that the variance of the distribution of weights of all students from which the above sample was drawn is, equal to 20 square kgm? ii) The melting point of two alloys used in formulating solder were investigated by melting 20 samples of each material. The sample mean and standard deviation for alloy 1 was 1 = 421 and S 1 = 4 while for alloy 2 they were X 2 = 426 and S 2 = 3 Do the sample data F F, F F. support a claim that both alloys have the same variance of melting point? Use a = 0.05 in reaching your conclusion. 15.(a) Following is the distribution of students according to their height and weight: Height Weight in lbs. in inches 90-100 100-110 110-120 120-130 50-55 4 7 5 2 55-60 6 10 7 4 60-65 6 12 10 7 65-70 3 8 6 3 Calculate (i) the co-efficients of regression and (ii) obtain the two regression equations. Or

3 (b) (i) From the data given below, fit a straight line trend by the method of squares Years 1975 1976 1977 1978 1979 1980 1981 1982 Sales (00,000 Rs.) 6.7 5.3 4.3 6.1 5.6 7.9 5.8 6.1 (ii) Calculate the seasonal indices by the ratio to the moving average method from the following data: Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1 68 62 61 63 2 65 58 56 61 3 68 63 63 67 4 70 59 56 62 5 60 55 51 58

Model Paper 2
PART A- (10x2 = 20 marks) 1. The compressive strength of samples of cement can be modeled by a normal distribution with a mean of 6000 kilograms per square centimeter and a standard deviation of 100 kilograms per square centimeter. What strength is exceeded by 95% of the samples? 2. What is an estimator? 3. A manufacturer is interested in the output voltage, of a power supply used in a pc. Output voltage is assumed to be normally distributed with standard deviation 0.25 V and the manufacturer wishes to test Ho: = 5V against H1: u = 5V, using n = 8 units. Find the power of the test for detecting a true mean output voltage of 5.1 V. 4. If 12 determinations of the specific heat of iron have a standard deviation of 0.0086, test the Ho: = 0.010 for such determinations. Use the H1: = 0.010 and = 0.01. 5. Explain the meaning and use of analysis of variance. 6. How do the non-parametric methods differ from parametric methods? 7. What is correlation? Point out the significance of its study to the students of Business Administration. 8. Distinguish between trend, seasonal variations and cyclical fluctuations in a time series. 9. Explain the following term: Acceptance and Rejection regions. 10. A random sample of size 16 has 53 as mean. The sum of the squares of the deviations taken from the mean is 150. Can this sample be regarded as taken from the population having 56 as mean? PART B - (5 X 16 =0: 80 marks) 11. An experiment was run to determine whether four specific-firing temperatures affect the density of a certain type of brick. The experiment led to the following data. Temperature (oF) Density 100 21.8 21.9 21.7 21.6 21.7 21.5 21.8 125 21.7 21.4 21.5 21.5 150 21.9 21.8 21.8 21.6 21.5 175 21.9 21.7 21.8 21.7 21.6 21.8 Does the filing temperature affect the density of the bricks? Use significance level = 0.05. . 12. (a) (i) What is student's t-distribution? Discuss the importance of it. (ii) The weight of a sophisticated running shoe is normally distributed with a mean of 12 ounces and a standard deviation of 0.5 ounce. (1) What is the probability that a shoe weighs more than 13 ounces? .

4 (2) What must the standard deviation of weight be in order for the company to state that 99.9% of its shoes are less than 13 ounces? Or (b) (i) A random sample of 100 teachers in a large metropolitan area revealed a mean weekly salary of Rs. 4,870 with it standard deviation of Rs. 480. With what degree of confidence can we assert that the average weekly salary of all teachers in the metropolitan area is between Rs. 4,720 and Rs. 5,020? (ii) A trucking firm is suspicious of the claim that the average lifetime of certain tires is at least 28,000 miles. To check the claim, the firm puts 40 of these tires on its trucks and gets a mean lifetime of 27,463 miles with a standard deviation of 1,348 miles. What can it conclude if the probability of a Type I error is to be at most 0.01 13.(a) (i) The following random samples are measurements of the heat producing capacity (in millions of Calories per ton) of specimens of coal from two mines: Mine I: 8260 8130 8350 8070 8340 Mine II: 7950 7890 7900 8140 7920 7840 Use the 0.01 level of significance to test whether the difference between the means of these two samples is significant. (ii) The following is the distribution of the hourly number of trucks arriving at a Company's warehouse: Trucks arriving per hour: 0 1 2 3 4 5 6 7 8 Frequency: 52 151 130 102 45 12 5 1 2 Find the mean of this distribution and using it (rounded to one decimal place) as the parameter , fit a Poisson distribution.Test for goodness of fit at the 0.05 level of significance. Or (b) (i) A study shows that 16 of 200 tractors produced on one assembly line required extensive adjustments before they could be shipped, while the same was true for 14 for 400 tractors produced on another assembly line. At the 0.01 level of significance, does this support the claim that the second production line does superior work? (ii) Test of the fidelity and the selectivity of 190 radio receivers produced the results shown in the following table. Fidelity Low Average High Low 6 12 32 Selectivity Average 33 61 18 High 13 15 0 Use the 0.01 level of significance to test whether there is a relationship between fidelity and selectivity 14.(a) Suppose that in a study of sedimentary rocks, the following diameters (in millimeters) were obtained for two kinds of sand: Sand I: Sand II: 0.63 1.13 0.17 0.54 0.35 0.96 0.49 0.26 0.18 0.39 0.43 0.88 0.12 0.92 0.20 0.53

5 0.47 1.36 0.51 0.45 0.84 0.32 0.40 1.01 0.48 0.89 1.07 1.11 0.58 -

Use the U-test at the 0.01 level of significance to test the null hypothesis that the two samples come from identical populations against the alternative hypothesis that the populations are not identical. Or (b) The following are the numbers of misprints counted on pages selected at random from three Sunday editions of a newspaper: April 11: 4 10 2 6 4 12 April 18: 8 5 13 8 8 10 April 25: 7 9 11 2 14 7 Use the H-test at the 0.05 level of significance to test the null hypothesis that the 3 samples come from identical populations. 15.(a) Price x and advertising expenditure z are possible explanatory variables for sales y. The following data are available from six test market areas. Sales y Price x Expense z (units} (Rs.) (Rs.) 1000 1080 1200 1020 910 850 10 9 9 10 11 12 100 120 200 50 0 50

Determine the regression equation. Interpret the constants in terms of this problem. Or (b) Fit a constant parentage growth trend to the following quarterly data Period VaIue Period VaIue 1 52 13 63 2 58 14 72 3 40 15 56 4 49 16 61 5 57 17 69 6 61 18 77 7 43 19 59 8 54 20 70 9 65 21 77 10 70 22 82 11 49 23 60 12 56 24 74

DBA 1603 - Economic Foundation of Business Environment


Model Paper 1
PART A - (10 x 2 = 20 marks) 1. What is investment multiplier? 2. What is Gross Domestic Product at Factor Cost? 3. What are the determinants of aggregate consumption? 4. What are the objectives of Indian Fiscal Policy? 5. What is accelerator? 6. What are the quantitative instruments of monetary policy? 7. What is speculative demand for money? 8. What is inflation? 9. Define short -run Phillips curve. 10. What are the major salient features of the latest trade policy of India? PART- B - (5 x 16 = 80 marks) 11. Using Aggregate demand and supply framework, examine current economic conditions of the Indian Economy. 12. (a) The following data characterizes the macro economic conditions of hypothetical economy: C =50 + O.80Yd I = 50 T=0 where C, I T and Y d represent consumption, investment, taxes and disposable income respectively. Calculate equilibrium income of the economy. If the economy is to grow at 10% per annum, what strategies do you suggest? Explain them in detail. Or (b) What are the different phases of business cycle? Explain business cycle using multiplieraccelerator model. 13. (a) What are features of financial sector reform in India? What are the impacts of such reform on the economy! Or (b) How are monetary policy instruments being used in India to achieve economic objectives? Critically analyze. 14. (a) Examine the trend in overall price level in India during the period since I991. Explain using macro economic models. Or (b) Discuss the trend in employment growth in the private and public sectors of the economy. Examine poor elasticity of employment. How do we overcome it? 15. (a) An economy is characterized by the following equations: C (consumption) = ~ + O.9Yd I '(investment) = 10 G (government expenditure) = 10 T (taxes) = 0 . X (exports) = 20 M (imports) = 10 + 0.05Y What is the equilibrium income? Examine the trade balance. If you want to balance your trade account, what strategies, do you suggest? Explain. Or (b) What are the instruments of trade policy? What are the objectives of trade policy? How do we use the instruments to achieve our objectives?

7 Model Paper 2 PART A - (l0 x 2 = 20 marks) 1. What are the objectives of ninth five year planning? 2. Distinguish balance of payment and balance of trade. 3. What is the relationship between marginal propensity to save and income? 4. What is the pattern of Indian tax structure? 5. Define political business cycle. 6. What are the objectives of Indian monetary policy? 7. What is money-supply multiplier? 8. What are the causes of unemployment? 9. What is demand-pull inflation? 10. What is trade multiplier? P ART- B - (5 x 16 = 80 marks) 11. Critically evaluate Indian economic performance during the reform period. 12. (a) The following equations represents the condition of an economy C (Consumption) = 60 + 0.75Yd (disposable income) I (Investment) = 40 G (Government expenditure) = 20 T (Taxes) = 0 What is the equilibrium income? If the government wants to' have balanced budget, haw much tax does it propose to impose? What is the impact of such policy on national income? What strategies do you suggest to overcome this? How? Or (b) Examine the role of fiscal policy in India. What are the impacts of fiscal policy on the Indian economy? 13. (a) what are the monetary instruments? Using monetarist approach, explain how monetary instruments can be used to achieve economic objectives? Or (b) What are the determinants of aggregate demand and supply? How do changes in them affect national income? Discuss. 14.(a) What are the supply constraints? What is the impact of unemployment on the economy? What policy initiatives do we have to overcome unemployment? Or (b) Why does inflation occur? Using demand and supply related factors, explain inflation in India. 15 (a) what are the features of the latest trade policy of India? What ~pacts does it have on the external economy of India? Or (b) Explain the trend in Balance of Payment (BOP) situation in India since 1991 and account for the changes.

DBA 1604 - Organizational Behaviors


Model Paper 1
PART A - (10 x 2 = 20 marks) 1. What is organizational behaviour? 2. Explain the concept of interpersonal roles. 3. Explain classical conditioning. 4. What is organisational commitment? 5. Explain McClelland's theory of motivation. 6. Define group cohesiveness. 7. What is non-verbal communication? 8. What are the characteristics of a good learner? 9. What is organisational effectiveness? 10. How would you measure, job satisfaction? PART B - (5 x 16 = 80 marks) 11. Hariharan is a clerk in a government educational institution. His main work is to receive inward letters and pass it on to actual recipients.' He also has to ensure the timely despatch of letters. He needs to do both after making necessary entries in an appropriate register. For the past four years he has been with the botany department, there has been a spate of complaints against his indifference of the work. However, no official action was initiated against him. There appears to be no sign of him improving on his own accord. One particular teacher even attempted to speak to him to change his style of work. Hariharan, appeared to be aloof, and did dot seem to even barely listen. Shocked, the teacher withdrew hesitantly. Other teachers too would like something to be done about Hariliaran's beqaviour as their work-is affected by it. (i) What functions does the communication process perform in an organization? (ii) What methods could be used by the teachers to get their message through? (iii) Evaluate the communication process in the botany department. How could it be improved? (iv) Is Hariharan a poor Listener? Substantiate on the basis of your understanding of poor listeners. 12. (a) What is reinforcement? Explain how reinforcement can be used in behaviourmodification. Or (b) Why is learning important? Identify and explain any five practical applications of the theory in organisations. 13. (a) Explain the techniques used in group decision making. How do groups affect performance and satisfaction? Or (b) Distinguish between intrinsic and extrinsic motivation. Identify any six motivational tools and explain their use in organisations. 14.(a) Explain trait theories, 'It is followers not traits that make Leaders' substantiate. Or (b) What are the changes that affect an organisation? How is resistance to change reduced? 15.(a) How do biographical characteristics affect individual behaviour? What is the role of ability in the study of organisational behaviour? Or (b) Explain the different types of teams. With suitable examples substantiate how you would create an effective team.

9 Model Paper 2 PART A - (10 x 2 = 20 marks) 1. Give any four reasons for the study of organisational behaviour. 2. Identify the influences in the study of organisational behaviour. 3. Distinguish between type A and type B personalities. 4. What is organisational behaviour modification? 5. What is 'norming'? 6. What is 'brain storming'? 7. What are the characteristics that distinguish a leader from a manager? 8. Explain any four common sources of power. 9. Distinguish between a group and a team. 10. What are the factors influencing organisational climate? PARTB - (5xI6 = marks) 11. Kesav Chand, a young .man of thirty years, has been working for the past five years for Zenith Trends a small software company. He knows that the company's business is down but it is a matter of time before it pickes up steam. He likes the company's pay and benefits. The work climate too is good. Yet of late, he has observed the company tracking his usage of the Internet. He believes the company should not be doing so Kesav feels it will not be long before the company starts prying into other activities of the employee. He loves his freedom so much that he does not think he continue here any longer. He wishes to submit his resignation soon. (i) Is the company ethically right? Substantiate. (ii) Should Kesav really get bothered about the Company's action? (iii) What evaluations should Kesav make before he really resigns? (iv) Explain how the company can reduce resistance to the change it has brought about. 12. (a) Explain the nature and scope of organisational behaviour with suitable examples. Substantiate some of the recent changes that have influenced the study of the organisational behaviour. Or (b) What are the factors influencing perception? Explain the practical users of perception. Use suitable work life examples to substantiate your answer. 13. (a) Explain the process of organisational behaviour modification. Why is learning integral to organisational behavior modification? Or (b) Explain Herzberg's theory of motivation. Identify suitable work life examples and substantiate how they explain this theory. 14. (a) What are the common organisation structures? Explain each briefly. What are the problems likely to occur when there is a transition from a tall to a flat structure? Or (b). Explain Blake and Mouton's managerial grid. What is the relevance of the theory in today's organisational context? 15. (a) What is organisational politics? What impact does it have on organisational climate? Or (b) What factors influence job satisfaction? How does it affect organisational effectiveness?

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DBA 1606 - Accounting For Management


PART A- (10x2 = 20 marks) 1. Explain accounting cycle 2. Give any four managerial applications of accounting information. 3. Explain sectional balancing system. 4. Give any two limitations of cash flow analysis. 5. Define imputed costs. 6. Give any four common bases of apportioning factory overheads. 7. Explain Zero base budget. 8. Define a cost centre. 9. Explain direct material cost variances. 10. Explain profit/volume ratio. PART B- (5 x 16 = 80 marks) 11. Discuss the significance of accounting information from the viewpoint of business stakeholders. 12. (a) (i) Explain the objectives of providing depreciation (ii) X Ltd. purchased a machine for Rs. 60,000 on 1.1.1998. Depreciation is provided @10% p.a., on diminishing balance method. Prepare machinery account for the year 2000 in each of the following alternative cases: (1) If the machine is sold on 1.7.2000 for Rs. 28,600. (2) If a new machine costing Rs. 60,000 is purchased on 1.7.2000 after surrendering the old one and paying cash Rs. 35,000. Or (b) (i) Explain the factors affecting valuation of shares. (ii) ABC Ltd. has 15,000 equity shares of Rs. 100 each, Rs. 80 paid. Also 3000 - 8% preference share of Rs. 100 each fully paid. The company transfers 15% of its profit to. General Reserve every year. The company expects profits of Rs. 8,00,000 (Before tax). The rate of tax is 48%. You are required to calculate the value of equity shares. The normal rate of dividend is 25%. (a) (i) Explain the difference between cash flow' analysis and funds flow analysis. (ii) Statement of financial position of Mr. A is given below: 1.1.2000 31.12.2000 Rs. Rs. Account payable- 29,000 25000 Capital 7,39,000 6,15,000 7,68,000 6,40,000 Cash 40,000 30,000 Debtors 20,000 17,000 Stock 8,000 13,000 Building 1,00,000 .80,000 Other fixed assets 6,00,000 . 5,00,000 7,68,000, 6,40,000 Additional information:

11 There were no drawings. There were no purchase or sale of either building or other fixed assets. Prepare statement of cash flow. Or (b) (i) Explain the assumptions of cost - volume - profit analysis. (ii) S & Co. Ltd. has three divisions, each of which makes a different product. The budgeted data for the next year is as follows: A B C Divisions Rs. . Rs. Rs. Sales 1,12,000 56,000 84,000 Costs: Direct material 14,000 7,000 14,000 Direct labour 5,600 7,000 22,400 Variable Dverhead 14,000 7,000 28,000 Fixed costs Total costs 28, 09 61,600 14,000 35,000 28,000 92,400

The management is considering closing down Division C. There is no possibility of reducing variable costs. Advise whether or not division C should be closed down. 13. (a) (i) Outline the usefulness of process costing. (ii) Fifty units .are introduced into a process at a cost of Rs. 50. The total additional expenditure incurred by the process is Rs. 30. Of the units, introduced 10% are normally spoilt in the course of manufacture these possess a scrap value of Rs. 0.25 each. Owing to an accident only 40% units are produced. You are required to prepare a process account. Or (b) (i) Explain the application of marginal cost analysis for managerial decision making. (ii) A product - X, takes 5 hours to be produced on a machine, which is used to full capacity. Its selling price is Rs. 60 and marginal cost Rs. 30. A component - Z, used in the production of X, can be made on the same, machine in 2 hours. The marginal cost of producing Z is Rs. 10. It can be bought at the net price of Rs. 12 from the market should the rum make or buy the component? (a) (i) Explain the features of a flexible budget. (ii) XY Industries Ltd. is preparing its comprehensive budget for the next year. The sales manager has said that, he does not wish to have, a single estimate of sales, but would prefer to give four forecasts, along with his estimates of the probabilities he attaches to them

Sales forecasts
Rs. 16,00,000 Rs. 20,00,000 Rs. 24,00,000 Rs. 30,00,000

Probabilities
0.4 0.3 0.2 0.1

Variable costs are 40% of the sales and total fixed costs are Rs. 8,00,000 per year. Prepare budgeted income statement based on each of the four forecasts. Or (b) (i) Explain standard costing as a control technique.

12 (ii) You have been appointed as financial executive attached to the central office of AB Ltd., with special responsibility for monitoring the performance of the divisions with in the company. Each division is treated as an investment centre. Summaries of the Divisions X and Y for the year ending 31st Dec. 2000 are given below: Particulars Sales X Rs. 7,00,000 Y Rs. 9,50,000 4,10,000 2,90,000

Variable costs 3,20,000 Fixed overhead 2,00,000

Divisional assets 2,50,000 3,75,000 You are required to assess the performance of the divisions with the help of ROI. Model Paper 2 PART A - (10 x 2 = 20 marks) What do you mean by Accounting Cycle? What is meant by absolute Liquidity ratio? The profit for the current year is Rs. 14,000, opening prepaid expenses is Rs. 28,000 and closing prepaid expenses is Rs. 22,000. Find out the cash from operation. AR. Ltd. has four sales divisions. The relevant data for its northern division is reproduced

1. 2. 3. 4. below.

Direct fixed cost Rs.10, 000 P/V Ratio 0.40. Allocated fixed cost from head office Rs. 5,000. Find out the sales volume required to cover all direct expenses and all fixed costs. 5. What is meant by Job costing? 6. Why is the overhead expenditure to be allocated? 7. How is the zero base budgeting different from traditional budgeting? 8. List out any four limitations of standard cost? 9. Give the formula for calculating labour cost variance. 10. How do you measure business income? PART B - (5 x 16 = 80 marks) 11. From the data given, calculate the material price variance, material usage variance and material mix variances? Material A B Standard 40 units @ Rs. 40 per unit 6(j units @ Rs. 40 Rei unit Actual 50 units @ Rs. 50 per unit 60 units @ Rs. 45 per unit

(a) From the following information at 50% capacity, prepare a flexible budget and forecast the profit or loss at 60%, 70% and 90% capacity. (b) Expenses at 50% capacity Rs.

13 Fixed Expenses: Salaries Rent and Taxes Depreciation Administrative Expenses Variable Expenses: Material Labour Others Semi variable: Repair Indirect labour Others 50,000 40,000 60,000 70,000 2,00,000 2,50,000 40,000 1,00,000 1,50,000 90,000

It is estimated that fixed expenses will remain constant at all capacities. Semi-variable "expenses Will not change between 45% and 60% capacity, -will rise by 10% between 60% and 75% capacity, a further increases of 5% when capacity crosses 75%. Estimated sales at various levels of capacity are: Capacity 60% 70% 90% Sales (Rs.) 11,00,000 13,00,000 15,00,000 Or (b) The following is the summarized Trading profit and loss account of' Boppanna Manufactures' Ltd. for the year ended 31st December 1992, in which year 800 clocks were sold by the company. Trading, Profit an loss account Rs. Rs. To cost of 32,000 By sales 1,60,000 materials To direct wages I 48,000 To manufacturing charges 20,000 To Gross profit 60,000 c/d. 1,60,000 1,60,000 To Office salaries 24,000 To rent and taxes To'selling expenses To general expees To Net Profit 60,000 4,000 8,000 12,000 12,000 60,000 By Gross Prot bId. 60,000

14 The following estimates were made by the cost department of the company for the year ended 31st December 1993. i. The output and sales will be of 1000 clocks. ii. The ratio of materials will rise by 25% on the previous years level. iii. Wages during the year will rise by 12%. iv. Manufacturing costs will 0025% of the combined cost of materials wages. v. Selling cost per unit will remain unchanged. vi. Other expenses' will remain unaffected by the rist in output. From the above information, prepare a cost sheet showing the price at which,the stocks would be marketed so as to show a profit of 10% on the selling price. The cost statement" is to show cost per unit also. 13. (a) (i) what are the different classifications of budgets? Briefly explain. (ii) What is 'Variance'? Indicate its significance to the Management Or (b) From the following information, Calculate the Break Even Point and turnover required to tarn a profit of Rs. 36,000. Fixed overheads Rs. 1,80,000 Variable 1st per unit Rs. 2 i Selling price Rs. 20 If the company is earning a profit of Rs. 36,000, express the margin of safety available to it? 14. (a) (i) what are the various determinants of standard costs? (ii) What do you mean by Historic3J costing? Explain. Or (b) Following is the summarized balance sheet of a concern as at 31st December. Balance sheet as on 31st December Liabilities Rs. Assets 6% preference share capital G 1,50,000 Equity share 2,50,000 Land and building capital General 2O,()OO 'Machinery Reserve Profit and loss 15,000 Furniture 5% Debentures 1,00,000 Stock Sundry 28,000 Sundry Debtors Creditors Bills Pable 12,000 Cash at B Preliminary expenses 5,75,000

Rs. 20,000 2,50,000 1,75,000 10,000 90,000 '21,000 5, 4,000 5,75,000

Other information: Total sales Rs. 4,00,000, 20% of which is made on credit. Gross profit and Net profit (after tax) for the year ended amounted to Rs. 80,000 arid Rs. 20,000 respectively. Coefficient on the financial condition of the concern. 15. (a) (i) Explain the accounting treatment for Merchandising transactions? (ii) Name the persons interested in financial statement? Explain. Or

15 (b} The Balance sheet of a firm as on 31st December 1999 and 2000 are given below. Unabilities 1999 2000 Assets 1999 2000

Share 1,00,000 1,60,000 Capital Retained Earnings 85,300 7,250 . Accumulated 40,000 Dep.60,000 12% 50,000 debenture Sundry Creditors 28,000 3,08,250 3,33,300 48,000 3,08,250

Fixed assets 1,52,000 2,00,000 cost. Inventory Debtors . Expenses prepaid Bank 3,33,300 93,400 30,800 89,200 21,100

3,950 28,100

3,000 20,000

The following additional information for 2000 are also given: (i) Net profit of ~s. 27,050. (ji) Depreciation charged Rs. 10,000. (iii) Cash dividend declared during the period Rs.12,000. (iv) An addition to the building was made during the year at a cost of Rs. 78,000 and fully depreciated equipment costing. Rs. 30,000 was discarded as no salvage being reached repairs a Cash Flow Statement.

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DBA 1607 - Legal Aspects of Business For Management


Model Paper 1
1. 2. 3. 4. PART A- (10x2 = 20 marks) Define 'Commercial Law'. What do you understand by 'Rule of Law'? Define 'Contract'. 'A' offers to sell 'B' his car for Rs. 11lakh, and tells 'B', 'This offer will remain open for one week'. The following day 'B' rejects the offer. Within the week 'B' changes his mind and notifies 'A' that he accepts the offer. Is there a contract? . 5. Give one example of implied condition in a contract of sale of goods by sample. 6. Enumerate two essential features of negotiable instruments. 7. Who is a 'Del Credere Agent'? 8. What do you understand by 'Articles of Association'? 9. State with reasons whether a child of 13 years can be employed in a factory. 10. Define 'Sales Tax'. PART B.- (5 x 16 = 80 marks) 11. Write short notes on the following: (i) Sources of commercial law, in India. (ii) Tax Evasion, Tax Avoidance and Tax planning: (iii) Minor's position in the law of contract. (iv) Memorandum and articles of association. 12.a) (i) what is a bill of exchange? Who can accept a bill of exchange? (ii) What is endorsement and what is the effect of endorsement? (iii) What happens if a negotiable instrument? 1) is lost 2) obtained illegally 3) by brand and 4) is forged. Or (b) (i) What are the different ways an agency can be terminated? (ii) State the respective rights and duties of a principal, and an agent when the principal is undisclosed. (iii) Distinguish between agent and servant. 13. (a) (i) 'A company is a legal person and it has identity separate from 'members comprising it' - Comment. (ii) State and explain the doctrine of 'Indoor Management'. Or (b) (i) Define the term 'statement in lieu of prospectus'. (ii) Define 'promoter (iii) What are the methods of appointment of directors of a company? 14. (a) (i) Enumerate briefly the provision of the 'Factories Act 1948', relating to health of workers. (ii) Define 'wages'. (iii) Distinguish between 'Strike' and 'Lock out'. , Or (b) (i) What is an 'Industrial dispute'? (ii) Discuss the provision of 'Factories Act' regarding employment of children in 'Factories'.

17 (iii) Define and explain 'Deductions for absence from duty'. 15. (a) (i) "All agreements are not contracts but all contracts are agreements." Discuss the statement explaining essential element of a valid contract. (ii) X handed over a motorcar, to a mercantile agent for sale on condition that the car would not be sold below a specified price. In spite of the agreement the agent sold it to 'A' below the price and ran away with the money obtained. 'A' then resold the car to 'B' in good faith. Can 'X' recover the car from 'B'? ' (iii) 'A' sells a horse to 'B' knowing fully well that the horse is vicious. 'A' does not disclose the nature of the horse to 'B'. Is the sale Valid? Or (b) (i) Define offer and acceptance. When are offer and acceptance deemed to be complete if made through post? (ii) What is meant by undue influence? Give two examples. (iii) When does the property in goods pass from the seller to the buyer in a contract of sale of goods? Model Paper 2 PART A - (10 x 2 = 20 marks) What are the sources of Commercial Law in India? Define 'Law'. State the essential elements of a contract. 'A' offers a reward to whosoever shall do a certain thing. 'D' does the thing, not knowing of the advertised reward. Is 'A' bound to pay the reward to 'B'? 5. Who is a 'Mercantile Agent'? 6. A promissory note executed on 31St January 2002, is made payable one month after date. When does the note become payable? 7. Explain the term 'Power of Attorney' 8. Are the shareholders of a company the proprietors of the company? 9. The service of a workman who has stolen some material from the factory has been terminated. Will this termination of service amount to retrenchment? 10. Distinguish between 'Tax planning and 'Tax Avoidance'.

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PART B - (5 x 16 = 80 marks) 11. Write short notes on the following: (i) Void, voidable and unforceable contract. (ii) Holder in Due Course. (iii) Formalities for incorporation of a company. (iv) Need for Corporate Tax Planning. 12.(a) (i) What are the essential features of a Negotiable Instrument? Define Negotiable instruments. Give examples. (ii) State the different parties to a bill of exchange. Discuss their liabilities. Or (b) (i) In what ways an agency can be created? (ii) State the duties of an agent to the principal. 13.(a) (i) Point out the differences between a private company and a public company. (ii)State the points of difference between the Memorandum of Association and the Articles of, Association of a Limited Company. Or (b) (i) What are the contents of the prospects of a company? (ii) What are the powers of directors of a company under the Companies Act?

18 14. (a) (i) Briefly mention the provisions laid down in the 'Factories Act' for the protection of securing the safety of young persons, women and children. Discuss the provisions of Payment of Wages Act relating to deduction for damage or loss. Distinguish between 'Layoff and 'Retrenchment'. Or (b) (i) Distinguish between 'Award' and 'Settlement'. (ii) What are the working hours for children in a Factory? (iii) State and discuss the provisions for time of payment of wages. 15.(a) (i) State the difference between sale, hire purchase, agreement to sale and installment sale. (ii) Who is an unpaid seller of goods and what are his rights against the goods? Has he any remedy against the buyer personally? (iii) What do you understand by 'Caveat Emptor'? Or (b) (i) Explain the difference between 'Condition' and 'Warranty'. Explain the meaning of the terms offer and acceptance. (ii) State the remedies allowed to aggrieved person in case of breach of contract.