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FINALTERM EXAMINATION FALL 2006 MGT601 - SME MANAGEMENT (Session - 1 ) Marks: 60 Time: 120min

StudentID/LoginID: Student Name: Center Name/Code: Exam Date:

______________________________ ______________________________ ______________________________ Thursday, February 15, 2007

SME Management (MGt601)

FINAL TERM EXAM (1) (Fall 2006) TIME ALLOWED: 150 Minutes

This exam consists of 15 Multiple Choice Questions (MCQs) of 1 mark each, 5 True/False of 1 mark each, 5 fill in the blanks of 1 mark each, 3 Short questions of 5 marks each and 2 Descriptive questions of 10 marks each. correct one. This examination is closed book, closed notes and closed neighbours. Do not ask question about the contents of this examination from anyone. You may wish to pace yourself with your own watch, but the Supervisor will be the official timekeeper of the test. Failure to comply with the Supervisors directions will result in your test being cancelled. Please comply with supervisors directions to avoid any unpleasant event. For each Multiple Choice Question, read the options available and select which you consider is the

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Please read the following instructions carefully before attempting any question: All questions are compulsory.

SR

TOTAL MARKS : 60

Question Marks Question Marks Question Marks

1 11 21

2 12 22

3 13 23

For Teacher's use only 4 5 6 7 14 24 15 25 16 26 17 27

8 18 28

9 19 29

10 20 30

Total

Question No: 1

( Marks: 1 )

- Please choose one

The strategic management process:

? ? ?

Is especially difficult for the small business because of its limited resources.

Divides mass markets into smaller, less homogeneous units.

Provides the small business owner with the tools for managing the uncontrollable elements in the External business environment.

Helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives

The primary output of the strategic management process should be:

A matching of its strengths and weaknesses to the opportunities and threats in the environment.

? ? ?

An invitation to outside investors and lenders to put money into the business.

A complete explanation of the company's product or service.

A description of the companys competitive situation. ( Marks: 1 ) - Please choose one

Question No: 3

_____________ Law governs the rights and the obligations between people and the parties, they made promises to or agreements with.

Agency

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Question No: 2

( Marks: 1 )

- Please choose one

Contract

?
Freedom of contract

?
UCC (Uniform Commercial Code Question No: 4 ( Marks: 1 ) - Please choose one

Mr. A is looking for capital to purchase new buildings, equipment and furniture . He is looking for ___________ capital.

Working

? ? ?

Fixed

Growth

Asset-based

Question No: 5

( Marks: 1 )

Equity capital is also called:

Equity money

? ? ?

Stock money

Risk capital

None of the above ( Marks: 1 ) - Please choose one

Question No: 6

A proforma financial statements means:

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- Please choose one

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Looking at the current financial statements

? ? ?

Looking at the past financial statements

Preparing current financial statements

Preparing projected financial statements ( Marks: 1 ) - Please choose one

Question No: 7

The grapevine in most organizations is:

Almost always incorrect in its content.

? ?

The first place employees hear about major organizational changes.

Only used by troublemakers and gossipers within the organization. ( Marks: 1 ) - Please choose one

Question No: 8

When it comes to hiring in the small business:

? ?

Each hire is very important because bad hires are very expensive.

It is only moderately expensive because bad hires can be quickly fixed due to the small businesses flexibility.

They tend to be in full compliance of EEOC and HRM laws, more so than large companies because the hiring process is done by very few individuals.

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Nonexistent in organizations where management communicates face to face and by memo.

SR

The small business owner, generally violates some laws due to the lack of an HRM professional on staff. ( Marks: 1 ) - Please choose one

Question No: 9

Critical to TQM is:

?
Management competence.

? ? ?

Understanding the product.

Continual improvement.

Knowing your competition. ( Marks: 1 ) - Please choose one

Question No: 10

? ? ? ?

Profit

Market share

Brands

Packaging ( Marks: 1 ) - Please choose one

Question No: 11

Way of obtaining new product is __________

By buying a whole company

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The most distinctive skill of professional marketers is the ability to create, maintain, and enhance their:

? ? ?

A patient

A license to produce someone elses product

All the given options ( Marks: 1 ) - Please choose one

Question No: 12

Sales decline for many reasons, including

Technological advances

? ? ?

Shift in customer tastes

Increased competition

All the given options ( Marks: 1 )

Successful implementation of TQM involves:

? ? ? ?

Modification in the operational culture

Work process

Both modification in operational culture and work process

None of the given options ( Marks: 1 ) - Please choose one

Question No: 14

______________ is said to link trading partners, whether they are giant corporations or single individuals with a small business:

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Question No: 13

- Please choose one

SR

? ? ? ?

Technology.

Better management.

Higher salaries.

Smaller organizations. ( Marks: 1 ) - Please choose one

Question No: 15

The most common reasons for a small or a mid-sized company for taking their business to the Web is:

? ? ? ?

To reach new customers

To disseminate information more quickly

For prestige ( Marks: 1 )

Small businesses create more jobs than either medium or large businesses.

True

False
( Marks: 1 ) - Please choose one

Question No: 17

When the location of the business is critical to its success, it may be wise to purchase a business in another location.

True

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Question No: 16

- Please choose one

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To reach new customers and to disseminate information more quickly

False
( Marks: 1 ) - Please choose one

Question No: 18

Only 11% of entrepreneurs analyze their financial statements as part of their managerial planning.

True

False
( Marks: 1 ) - Please choose one

Question No: 19

Typically, factoring is less expensive than bank and commercial finance company loans

True

False
( Marks: 1 ) - Please choose one

Question No: 20

Quality has an impact on both costs and revenues.

True

False
( Marks: 1 )

Question No: 21

Pakistans economy is an economy of ____________________________________.

Question No: 22

( Marks: 1 )

Percentage taken by the bank for discounting receivables is called______________.

Question No: 23

( Marks: 1 )

_____________________________________ = Operating Expenses in Previous year Number of operating cycles in year

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Question No: 24

( Marks: 1 )

_________________is an overview Document, which provide guideline for use and selection of other standards.

Question No: 25

( Marks: 1 )

GATT stands for ______________________________________________________.

Question No: 26

( Marks: 5 )

Efficient selection is the systematic defining of key requirements of each task, how will you conduct job analysis to achieve the desired outcome?

Question No: 27

( Marks: 5 )

While managing the working capital requirements, we must keep some factors in mind that might affect our planning, provide a brief of these factors.

Question No: 29

( Marks: 10 )

What is the role of technology upgradation in entrepreneurship development?

Question No: 30

( Marks: 10 )

How would you define the act of a manufacturer in one country exporting a product to another country at an unfairly low price? Recently Pakistans exports (Textile & Clothing) have been subjected to Antidumping, what measures we must take to manage this situation?

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Do you think there is need of linking ICTs (Information & Communications Technologies) with Entrepreneurship development to eradicate the problem of unemployment in the developing nations with large populations? Explain.

SR

Question No: 28

( Marks: 5 )