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Thursday, 20 March 2014

Distribution & Logistics Management

Examination Paper of Logistics Management

IIBM Institute of Business Management

Examination Paper MM.100

Distribution & Logistics Management

Section A: Objective Type (30 marks)

 This section consists of Multiple Choice questions & short note questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple Choices:

1. It deals with the movement of finished goods from the last point of production to the point of
consumption.
a. Marketing Channel Management
b. Logistics Management
c. Boundaries
d. Relationships

2. Which conflict is one of the major bottleneck in the development & maintenance of partnering
channel relationship
a. Channel conflict
b. Management conflict
c. Logistics conflict
d. Distribution conflict

3. The phase of externally integrated business function era (1990s onwards) is recognized as the
era of
a. Logistics Management
b. Human Resource Management
c. Financial Management
d. Supply Chain Management

4. ___________ may be conducted from time-to-time or at least once in a year to know about
change in the expectation levels & actual performance
a. Customer Service Monitoring cell
b. Formal Customer Satisfaction Survey
c. Customer Conference
d. Customer Feedback System

5. The firm’s incomplete or inaccurate knowledge of customer’s service expectations is known as
a. Market Information Gap
b. Service Standards Gap
IIBM Institute of Business Management 1

Examination Paper of Logistics Management

c. Service Performance Gap
d. Internal Communication Gap

6. This gap exist between the present level of customer service offered and the corporate vision
about customer service
a. Gap 1
b. Gap 2
c. Gap 3
d. Gap 4

7. This stock refers to window display of an inventory in order to stimulate demand and act as a
silent salesman
a. Decoupling stock
b. Psychic stock
c. Pipeline stock
d. None

8. This stock is also known as cycle or lot size stock
a. Working stock
b. Safety stock
c. Anticipation stock
d. None

9. In this system manufacturer is given the responsibility for monitoring & controlling inventory
levels at the retail store level
a. Quick Response
b. Continuous Replenishment
c. Vendor-managed Inventory
d. Customer Relationship

10. This mode of transport is a very significant one but with a very restricted scope. It is used
primarily for the shipment of liquid & gas
a. Airways
b. Railways
c. Pipelines
d. Seaways

Part Two:

1. What is Containerization and also mention the main features of Containerization.

2. What is Third Party Logistics?

3. Differentiate between Public & Private Warehouse.

4. What is Logistics Information System?

END OF SECTION A
IIBM Institute of Business Management 2

Examination Paper of Logistics Management

Section B: Caselets (40 Marks)

 This section consists of Caselets.
 Answer all the questions.
 Each caselete carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).

Caselete 1

Superior Medical Equipment Company supplies electrical equipment that is used as components in the
assembly of MRI, CAT scanners, PET scanners, and other medical diagnostic equipment. Superior has
production facilities in Phoenix, Arizona, and Monterrey, Mexico. Customers for the components are
located in selected locations throughout the United States and Canada. Currently, a warehouse, that
receives all components from the plants and redistributed them to customers, is located at Kansas City,
Kansas. Superior’s management is concerned about location of its warehouse since its sales have
declined due to increasing competition and shifting sales levels among the customers. The lease is about
to expire on the current warehouse, and management wishes to examine whether it should be renewed
or warehouse space at some other location should be leased. The warehouse owner has offered to
renew the lease at an attractive rate of $2.75 per sq. ft. per year for the 200,000 sq. ft. facility. It is
estimated that any other location would cost $3.25 per q. ft. for a similar-size warehouse. A new or
renewed lease will be for five years. Moving the inventory, moving expenses for key personnel, and
other location expenses would result in a one-time charge of $3, 00,000. Warehouse operating costs are
expected to be similar at any location.
In the most recent year, Superior was able to achieve sales of nearly $70 million. Transportation costs
from the plants to the Kansa warehouse were $2,162,535, and from the warehouse to customers were
$4,819,569. One million dollars was paid annually as warehouse lease expenses. To study the warehouse
location question, data shown in Tables 1 and 2 were collected.
Although transport costs are not usually expressed on a $/cwt./mile basis, given that the outbound
transportation costs for the most recent year were $4,819,569, the weighted average distance of the
shipments was 1128 miles, and the annual volume shipped was 182,100 cwt., the estimated average
outbound rate from a warehouse is $0.0235/cwt./mile.

Table 1 Volume, Rate, Distance, and Coordinate Data for Shipping from Plants to the Kansas City
Warehouse in Truckload Quantities (Class 100) for the Most Recent Year.

PLANT
LOCATION
ANNUAL
VOLUME,
CWT.
b

TRANSPORT
RATE, $/CWT.
DISTANCE,
MILES
GRID
Coordinates
Phoenix 61,500 16.73 1163 3.60 3.90
Monterrey 120,600 9.40 1188 6.90 1.00
Total 182,100

a
b
Miles =230 X coordinate distance
Cwt.=100 lb.

IIBM Institute of Business Management 3

a

X Y

Table 2 Volumes, Rate, Distance, and Coordinate Data for Shipping from Plants to the Kansas City
Warehouse in Truck in 5,000 lb Quantities (Class 100) for the Most Recent Year.
Examination Paper of Logistics Management

PLANT
LOCATION
ANNUAL
VOLUME,
CWT.
b

TRANSPORT
RATE, $/CWT.
DISTANCE,
MILES
GRID
Coordinates
a

X Y
Seattle 17,000 33.69 1858 0.90 9.10
Los Angeles 32,000 30.43 1496 1.95 4.20
Denver 12,500 25.75 598 5.60 6.10
Dallas 9,500 18.32 560 7.80 3.60
Chicago 29,500 25.24 504 10.20 6.90
Atlanta 21,000 19.66 855 11.30 3.95
New York 41,300 26.52 1340 14.00 6.55
Toronto 8,600 26.17 1115 12.70 7.80
Montreal 10,700 27.98 1495 14.30 8.25
Total 182,100
Kansan City 8.20 6.00

Questions:

1. Based on information for the current years, is Kansas City the best location for a warehouse? If
not, what are the coordinates for a better location>? What cost improvement can be expected
from the new location?

2. If by year 5 increases are expected of 25 percent in warehouse outbound transport rates and 15
percent in warehouse inbound rates, would your decision change about the warehouse
location?

Caselete 2

Personal Care limited (PCL) is a large and premier FMCG company in India with a turnover of about Rs
1,200 crore. It has 25 production plants and 10 contract manufacturers spread over the whole country,
producing about 120 products ranging from personal care to household goods. Again out of 120
products, about 60 percent have different variants as well as package sizes.
The company has four own central warehouses situated in the four zones of north, south, east and west
that receive products from almost all the plants on a regular and consignment basis in container by
road. These warehouses are responsible for taking care of stocks, order placement for next arrivals,
loading and unloading, protective storage, stock recording, apart from order processing and
replenishment of good to distributors of respective zone whose numbers come around 150 per
warehouse.
After receiving goods from various plants, these warehousing are first entered into the computer for
inventory recording purposes. Suitable storage location spaces are then assigned after taking into
consideration the quantity to be stored, the physical dimension, characteristics of items, frequency of
flow, and availability of the space, which is quite variable and flexible. For storage of goods, a flexible
racking system is used so that the size of a rack’s space can be changed as per the size on the product’s
package. Furthermore, racing is back-to-back in pallet blocks which are 5-storied, and in one block there
are about 400 back-to-back racks.
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Examination Paper of Logistics Management

In certain area, for selected heavy weight and bulky items, 50 selectors drive forklift trucks and in the
remaining area, as many as 350 selectors pick the goods manually and use hand trolley. Selectors are
normally less educated and highly experienced, who have well-defined areas of selection.
With this existing system, there have been a lot of practical problems, such as underutilization of space,
traffic congestion in between the racks as one selector blocks another’s progress while he is picking item
from a location, wrong assortment, difficult to track goods, difficult to fill one single order as it contains
a variety of items, etc. this result into frequent complaints lodged by distributors.
Furthermore, a trucker is required to collect items from different places of the warehouse to make up
the order. Frequently, they have to wait for a full load. Then, the driver has to collect challan and other
required papers. Normally, this whole process takes seven to ten days, subject to ready availability of
the goods in stock. In the case of stock-out item, it may goes anywhere between 15 and 30 days. That is
why replenishment cycle time for nearby distributors is about 10-15 days and for others, it comes to
around 3 weeks.
Due to a gradual increase in the quantum of competition and increasing customer expectations, along
with increasing awareness about the overwhelming contribution of logistics in cost reduction and
service improvement, the top management of PCL have appointed highly qualified and experienced
professionals at all four warehouses with the following objectives:

 To improve the efficiency of the warehouses
 To reduce the replenishment cycle time by percent
 To reduce the total logistical costs by 10 per cent
 To have transparency in dispatch of premium products.

The chief warehouse manager, who joined the north zone warehouse as had a very successful career of
25 years. He wants to redefine the whole warehouse operating system.

Questions:

1. How should the chief warehouse manager of PCL approach this problem?

2. Develop a warehousing operational strategy to overcome the problem and fulfill the
redefined objectives of the firm.

Section C: Applied Theory (30 Marks)

 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should from the part of your answer (Word limit 200 to 150 words).

END OF SECTION B
IIBM Institute of Business Management 5

Examination Paper of Logistics Management

1. Information technology had the major effects on all areas of business. Explain the effective
use of Information Technology in Distribution Management.

2. Explain what Partnering Channel Relationship is and also state the reasons for developing
Partnering Channel Relationship.
END OF SECTION C

IIBM Institute of Business Management 6

Examination Paper of Logistics Management

IIBM Institute of Business Management

Examination Paper MM.100

Business Logistics

Section A: Objective Type (30 marks)

 This section consists of Multiple Choice questions & short note questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple Choices:

1. This decision involves mode of selection, shipment size, routing & scheduling
a. Inventory decision
b. Transport decision
c. Distribution decision
d. Facility location decision

2. This refers to the activities of gathering the information needed about the products & services
desired & formally requesting the products to be purchased
a. Order preparation
b. Order transmittal
c. Observation
d. Order entry

3. A very valuable function for the TMS is to suggest the patterns for consolidating small shipments
into larger ones.
a. Mode selection
b. Routing
c. Scheduling
d. Freight Consolidation

4. This refers to transporting truck trailers on railroad flatcars, usually over longer distances than
trucks normally haul
a. Water
b. Pipeline
c. Roadways
d. Trailers on Flatcars

5. An operating philosophy that is an alternative to the use of inventories for meeting the goal of
having the right goods at the right place at the right time.
a. Just-in-time
b. Kanban
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Examination Paper of Logistics Management

c. MRP Mechanies
d. None

6. A buyer may wish to negotiate the best possible price but not take delivery of the full purchase
amount at one time.
a. Fixed sourcing
b. Contract buying
c. Flexible sourcing
d. Deal buying

7. Transportation rate structure, especially rate breaks, influence the use of storage facilities is
known as
a. Storage function
b. Holding
c. Consolidation
d. Break-bulk

8. These warehouses are the most common type which handle a broad range of merchandise
a. Household warehouses
b. Miniwarehouses
c. Bulk storage warehouses
d. General merchandise warehouses

9. ___________ refers to the time that goods remain in the transportation equipment during
delivery
a. Leased space
b. Storage in transit
c. Load unitization
d. Space layout

10. It refers to the selection of more than one order on a single pass through the stock
a. Zoning
b. Batching
c. Sequencing
d. Modified area system

Part Two:

1. What is Bid-Rent Curves?

2. What is Mixed Integer linear Programming?

3. Differentiate between Lumpy and Regular Demand.

4. Write a short note on ‘Order Transmittal’.

END OF SECTION A
IIBM Institute of Business Management 8

Examination Paper of Logistics Management

Section B: Caselets (40 Marks)

 This section consists of Caselets.
 Answer all the questions.
 Each caselete carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).

Caselete 1

World is a worldwide refiners and distributor of fuel products for a automobiles, aircrafts, trucks, and
marine operations, services stations, and bulk facilities as outlets. Keeping more than 1,000 such outlets
supplied is a significant operating problem for the company. Maintaining adequate fuel levels at the
auto service stations is its major concern, because fuel generates the most revenue for the firm and has
the greatest demand for customer service. Being able to forecast usage rates by product at these service
stations is one of the key elements of goods distribution operations. In particular, the tanker truck
dispatchers need an accurate forecast of fuel usage in order to schedule fuel deliveries at service
stations to avoid stock outs.

SERVICE STATION OPERATION

Service stations may carry three or four different grades of fuel including 87, 89, and 92 octane gasoline
and diesel fuels. These are stored in underground tanks. Due to the variations in the usage rates among
the stations and the limited capacities of these tanks, the frequency of replenishment may range from
two or three times per day to only several times per week. Each tank is dedicated to one type of fuel.
Fuel levels are measured periodically by placing a calibrated stick into a storage tank, although some of
the more modern stations have electronic metering devices on their tanks. Tanker trucks, typically
having four fuel compartments, are used for replenishment.

A FORECASTING SITUATION

Each service station’s fuel grade represents a specific forecasting situation. A case in point is one of the
lower-volume stations selling 87- octane fuel. With replenishment occurring only a few times per week,
forecast of usage rates on a daily basis is adequate. Because usage does depend on the day of the week,
forecasting for a particular day of the week may be quite different from any other day of the week.

Questions:

1. Develop a forecasting procedure for this service station. Why did you select this method?

2. How should promotions, holidays, or other such periods where fuel usage rates deviate form
normal patterns be handled in the forecast?

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Examination Paper of Logistics Management

Caselete 2

As director of purchasing for Industrial Distributors, Walter Negley had to plan the purchasing quantities
for the higher-valued products that Industrial Distribution inventoried and resold to its industrial
customers on a short order cycle. One such product was a replacement motor used in conveyors.
Replacement sales were received from customers located in North America and was approximately
constant throughout the year. These motors were manufactured in West Germany and imported
through the Port of Baltimore. They were transported by truck to industrial’s privately owned
warehouse in the Chicago area. Although the West German manufacturer had a price policy that
included transportation to Baltimore, Industrial incurred the transportation expenses from Baltimore to
Chicago. To help determine the purchase quantities, Walter gathered the following information:

Information Description Quantities/Costs Source of Information
Average annual sales 1,500 units Sales
Replenishment lead time 1 month (0.083 yr) Purchasing
Clerical cost per requisition $ 20 Accounting
Expediting cost per requisition $ 5 Traffic
Inventory-carrying cost 30% per year Finance
Packaged weight per unit 250 lb Traffic
Unloading cost at warehouse $ 0.25 per cwt. Accounting
Storage capacity at
warehouse
Public warehouse storage
rates
$ 300 units Warehouse manager
$ 10 per unit per year Public warehouse

The manufacturer has just announced its new price schedule for motors at the Port of Baltimore.
Checking with the trucking company to move the motors from Baltimore,

Units per Order Unit Price
First 100 $ 700
Next 100 $ 680
All over 200 $ 670

Walter found it practical to contract for either full truckload shipments at $12 per cwt. (100 lb) for
truckload (TL) quantities of 40, 000 lb or more or less-than-truckload (LTL) quantities at $18 per cwt.

Questions:

1. What replenishment order size, to the nearest 50 units, should Walter place, given the
manufacturer’s noninclusive pricing policy?

2. Should Walter change his replenishment order size if the manufacture’s pricing policy were one
where the price in each quantities break includes all units purchased?

END OF SECTION B
IIBM Institute of Business Management 10

Examination Paper of Logistics Management

Section C: Applied Theory (30 Marks)

 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 10 marks.
 Detailed information should from the part of your answer (Word limit 200 to 150 words).

1. What is a heuristic Method? How are they useful in solving warehouse location problem?

2. What is a “Virtual Inventory”? What is the planning problem associated with such inventories?

3. Decision makers such as truck dispatchers, can go a long way toward developing good truck routes
& schedule by applying guideline principles. What are those principles for good Routing &
Scheduling?

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Corporate Governance Professional

Examination Paper of Corporate Governance Professional
IIBM Institute of Business Management

Subject Code-C103 Examination Paper MM.100

Corporate Governance Professional

Guidelines for paper

 Total No. of Questions is 100.
 The minimum passing marks is 40%.
 Each Question carries 1 mark.
 Answer all the Questions.

Multiple Choices: Total Marks: 100
1. Corporate Governance is-

a) About ethical conduct in business
b) Direct or indirect concerns in the organization
c) A manufacturing system
d) None of the above

2. The term corporate governance is derived from the-

a) Greek word
b) English word
c) French word
d) Latin word

3. The definition “Corporate Governance is the system by which business directed and controlled” is
given by-

a) SEBI committee
b) OECD committee
c) Cadbury committee
d) All of the above

4. Internal control is implemented by the-

a) Board of directors
b) Audit committee
c) Management
d) All of the above

5. OECD stands for__________________

6. Which of the following have the power to hire fire and compensate the top management?

a) Board of directors
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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
b) Audit committee
c) Shareholders
d) Management

7. CII stands for ____________________

8. The managers are expected to act in the interest of-

a) Audit committee
b) Stakeholders
c) Employees
d) Customers

9. To endorse the organization strategy, develop directional policy, appoint, supervise and remunerate
senior executives and to ensure accountability of the organization to its owners and authorities is the
responsibility of

a) CEO
b) Manager
c) Top management
d) Board of directors

10. SEBI stands for_________________

11. The role of corporate governance is-

a) To ensure the efficient use of resources
b) It increases the shareholders value
c) Reduce the procurement and inventory cost
d) All of the above

12. Which of the following is not the issue of corporate governance?

a) Internal control
b) Compensation of CEO and other directors
c) Management of risk
d) Rights of corporation

13. The annual report should not include-

a) How decision are taken by the board
b) The name of the chairman, CEO and other directors
c) Ability to hire management
d) The number of meeting

14. _____________________ is equal to the market price of his holding in shares.

a) Stakeholders wealth
b) Ethical conduct
c) Shareholder’s wealth
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Examination Paper of Corporate Governance Professional
d) None of these
15. The key element of good corporate governance principle include-

a) Honesty
b) Mutual respect
c) Performance orientation
d) All of the above

16. SOX stands for_____________________

17. The commonly accepted principle of corporate governance are-

a) Protection of shareholders right
b) Role and responsibilities of board
c) Interest of other stakeholders
d) All of the above

18. CII developed code of corporate governance in_____________________

a) 1997
b) 1996
c) 1994
d) 1878

19. The property right is views simply as ____________________

a) Planning right
b) Control right
c) Both a&b
d) None

20. In which type of model the supervisory board is elected by shareholders and labor unions

a) Japanese model
b) Anglo American model
c) German model
d) The Indian perspective

21. Which of the following come under the five principles of ethical power for organization?

a) Purpose
b) Pride
c) Patience
d) All of the above

22. Which of the following are the theories of corporate governance?

a) Shareholders theory vs. stakeholders theory
b) Stewardship theory
c) Property right theory
d) All of the above

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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
23. The stewardship theory is-

a) Control oriented
b) Involvement oriented
c) Both a&b
d) None of these

24. ____________________ include government nominees and representatives of financial institutions

a) Board of directors
b) Creditors, suppliers
c) Nominee directors
d) Chief executive officer

25. The ____________________ oversees internal control and disclosure controls and procedures for
financial reporting.

a) Nominating committee
b) Audit committee
c) Board committee
d) Higgs committee

26. MDAR stands for_______________

27. Liaison committee designed to make a link between two groups or committees.

a) True
b) False

28. Cadbury committee established in______________

a) 1999
b) 1995
c) 1992
d) 2002

29. How many recommendation is made by CII code-

a) 17
b) 18
c) 16
d) 19

30. Kumar mangalam committee is appointed by the-

a) CII
b) SEBI
c) Government
d) None

31. The remuneration of the non-executive directors should be decided by the-

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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
a) Board of directors
b) Top management
c) Stakeholders
d) Entire board

32. Which of the following committee was appointed by the SEBI to make recommendations on the
representation of independent directors on company board and the composition of audit committee

a) Cadbury committee
b) Kumar mangalam committee
c) Naresh Chandra committee
d) Board committee

33. Basic shareholders rights include the right to-

a) Secure methods of ownership
b) Convey or transfer shares
c) Participate and vote in general shareholder meetings
d) All of the above

34. Which of the following is use to ensure that the takeover bids are serious?

a) Disclosure
b) Trigger
c) Escrow
d) Creeping acquisition

35. Which of the following are the natures of complaints by shareholders?

a) Non receipt of dividend
b) Change of address
c) Transmission of shares
d) All of the above

36. The word “transmission” means-

a) Transfer by operation of law
b) Transfer by operation
c) Both a&b
d) None of the above

37. Competition, debt covenants, takeover and media pressure are the-

a) Internal corporate governance controls
b) External corporate governance control
c) Both a&b
d) None

38. Simple directors who attends board meeting of a company and participate of a company and
participate in the matters before the board is-

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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
a) Ordinary directors
b) Managing directors
c) Executive directors
d) Shadow directors

39. The director who perform a specific role in a company under a service contract which requires a
regular, possibly daily, involvement in management is known as-

a) Non-executive director
b) Additional director
c) Executive director
d) Ordinary director

40. Which of the following is the duty of directors?

a) Statutory duties
b) Duties of general nature
c) Both a&b
d) None

41. Which of the following are the not the general duty of directors?

a) Duty of good faith
b) Duty of care
c) Duty not to delegate
d) To disclose interest

42. A document that specifies the regulations for a company’s operation is known as-

a) Memorandum of association
b) Articles of association
c) Both a&b
d) None

43. Any person, company, or other institution that owns at least one share in a company is known as-

a) Stakeholder
b) Employees
c) Shareholder
d) Customer

44. Nomination committee is appointed by the-

a) CEO
b) Board of directors
c) Management
d) Audit committee

45. The profit earned by the company with reference to the cost of capital in terms of economic profit is
referred to as-

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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional

a) Pay-performance
b) Organization bylaws
c) Economic value added
d) None of the above

46. Which of the following are the types of the auditor?

a) Internal
b) External
c) Government
d) All of the above

47. The auditors specialize in crimes and are used by law enforcement organization when financial
documents are involved in a crime is known as-

a) Forensic auditor
b) Government auditor
c) External auditor
d) Internal auditor

48. Set of standards against which the quality of audits is performed and may be judges is-

a) Generally accepted accounting principles
b) General accepted auditing standards
c) Audit
d) None

49. A ______________ audit is a review in which an auditor analyzes and verifies various records and
processes relating to a company’s quality programs.

a) Cost audit
b) Forensic audit
c) Quality audit
d) none

50. The important aspects of cost audit are:

a) Property audit
b) Efficiency audit
c) Both a&b
d) Government audit

51. SICA stands for_______________

52. BIFR stands for_______________

53. Basic principles of audit are_______________

a) Integrity, objectivity & independence
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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
b) Confidentiality
c) Documentation
d) All of the above

54. As per the SEBI guidelines, the audit committee shall meet at least-

a) Twice a year
b) Thrice a year
c) Once a year
d) None

55. _________________ opined that the chairman of the audit committee should be an independent
director.
a) Cadbury committee
b) Board committee
c) KM Birla committee
d) Audit committee

56. An audit committee should aware of technological changes, which is_________________
risk/condition.

a) Internal
b) External
c) Both a&b
d) None

57. The committees of the board involve_________________

a) Supervisory committee
b) Risk management committee
c) Shareholders’ redressal committee
d) All of these

58. NBFCs stands for_________________

59. CSR stands for_________________

60. Which of the following is the essential of accord of Basel II?

a) Capital adequacy
b) Risk based supervision
c) Market disclosure
d) All of the above

61. Which of the following are the objectives of Basel II ?

a) To promote adequate capitalization of banks
b) To ensure better risk management
c) To strengthen the stability of banking system
d) All of the above

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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
62. The ganguly committee is of the view that the draft minutes of the board meeting should be
forwarded to the director’s within_________________ hours of meeting.

a) 56
b) 64
c) 48
d) 32

63. In which ethical principle of the business ethics are measured by rightness of an act and depend little
on the results of this act?

a) Teleological ethical system
b) Deontological ethical system
c) Hybrid theory
d) Individual freedom

64. One of the major ethical issue in advertising is the use of______________

a) True
b) False

65. Major social responsibilities of business involve-

a) Optimum utilization of scarce national resources
b) Responsibility no to make losses
c) Improve quality of life
d) All of above

66. Government is thinking of making it mandatory for the companies to spend_________________% of
their net profits on CSR.

a) 2
b) 4
c) 6
d) 8

67. It is the responsibility of the firm towards its________________ to avoid any type of cartel formation
that a attempts to reap monopoly profits.

a) Shareholders
b) Customers
c) Employees
d) Management

68. Four important group that business are shareholders, employees, customers and_________________

a) Management
b) Board of director
c) Society
d) Stakeholder

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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
69. NGO stands for_________________

70. Employees should get_________________ wages

a) Clear
b) Minimum
c) Maximum
d) Fair

71. Objectives of environmental audit are-.

a) Verification of legislative and regulatory compliance
b) Assessment of internal policy and procedural conformamance
c) Establishment of current practice status
d) All of the above

72. Review of documents and records, Review of policies, interviews are comes under which stage-

a) Pre-audit stage
b) Post-audit stage
c) Audit stage
d) None

73. Environment protection act was passed in________________ for the protection of environment.

a) 1988
b) 1999
c) 1986
d) 1990

74. The financial or non-financial support of an activity, used primarily to reach the given business goals
is-

a) Media
b) finance
c) Both a&b
d) Sponsorship

75. A printed report giving news or information of interest to a special group.

a) Newsletter
b) Formal meeting
c) Mailing list
d) Media release

76. Media can be used to promote_______________ communication.

a) One way
b) Two way
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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
c) Both a&b
d) None

77. Businesses arrange for______________ meetings with powerful stakeholders.

a) Information display
b) Public forum
c) Formal meeting
d) Informal meeting

78. MRTP stands for_________________

79. IRDA stands for_________________

80. It is said to be exist where there is a large number of procedures (firms) producing a same kind of
product.

a) Monopoly competition
b) Monopolistic competition
c) Perfect competition
d) None

81. Which of the following aspects of economic activity is not control by MRTP?

a) Restrictive on buying/selling
b) Unfair trade practices
c) Concentration of economic power
d) Restrictive trade practices

82. Price control is the restriction on maximum prices that is established and maintained by the
government.

a) True
b) False

83. Public policy is an attempt by the government to address a private issue.

a) True
b) False

84. The SEBI was established on________________

a) March 12, 1992
b) September 14, 1992
c) April 12, 1992
d) June 15, 1993

85. The seller of the security is-.

a) Bear
b) Bull
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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
c) Both a&b
d) none

86. Insider trading can be defined as the sale or purchase of securities by persons who possess price
sensitive information about the company.

a) True
b) False

87. _______________ makes a commitment to get the underwritten issue subscribed either by other or by
them.

a) Utilitarianism
b) Underwriters
c) Insider trading
d) None

88. The board of SEBI consists of_______________

a) 8
b) 7
c) 4
d) 6

89. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial, and quasi-executive.

a) True
b) False

90. SEBI is the regulator for the securities market in India.

a) True
b) False

91. AMFI stands for_________________.

92. Buying a commodity at a low price and instantly selling it for a higher price in another market is
known as-

a) Hedging
b) Speculating
c) Arbitrage
d) Shifting of risk

93. An over-the-counter market where buyers and sellers conduct foreign exchange transaction.

a) Commodity exchange
b) Foreign direct investment
c) FOREX
d) None

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IIBM Institute of Business Management
Examination Paper of Corporate Governance Professional
94. Licensing grant a permit to aloe the use of something or to allow a business activity to take place.

a) True
b) False

95. Government often uses quotas to restrict export.

a) True
b) False

96. Private companies can enjoy the right to transfer shares.

a) True
b) False

97. India has 22 stock exchanges.

a) True
b) False

98. Foreign companies are those, which have been incorporated outside India and conduct business in
India.

a) True
b) False

99. Clause 49 has been prepared by the Reserve Bank of India.

a) True
b) False
100. Corporate Governance ensures easy access to capital.

a) True
b) False

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ARAVIND 09901366442 - 09902787224

BUSINESS COMMUNICATION

Examination Paper of Business Communication

IIBM Institute of Business Management
Examination Paper MM.100
Subject Code-B-109 Business Communication

Section A: Objective Type & Short Questions (30 marks)
 This section consists of multiple choices and Short Notes type questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part Two questions carry 4 marks each.
Part one:
Multiple choice:

1. __________is an essential function of Business Organizations:
a. Information
b. Communication
c. Power
d. None of the above

2. Physiological Barriers of listening are:
a. Hearing impairment
b. Physical conditions
c. Prejudices
d. All of the above

3. Which presentation tend to make you speak more quickly than usual:
a. Electronic
b. Oral
c. Both „a‟ and „b‟
d. None of the above

4. What is the main function of Business Communication:
a. Sincerity
b. Positive language
c. Persuasion
d. Ethical standard

5. The responsibilities of the office manager in a firm that produces electronics spares is:
a. Everything in the office runs efficiently
b. Furniture and other equipment in the office is adequate
c. Processing all the incoming official mail and responding to some
d. All of the above
IIBM Institute of Business Management

1
Examination Paper of Business Communication
6. Labov‟s Storytelling Model based on:
a. Communication through speech
b. Language learning
c. Group Discussions
d. None of the above

7. Diagonal Communication is basically the:
a. Communication across boundaries
b. Communication between the CEO and the managers
c. Communication through body language
d. Communication within a department

8. How to make Oral Communication Effective?

a. By Clarity
b. By Brevity
c. By Right words
d. All of the above

9. Direct Eye contact of more than 10 seconds can create:
a. Discomfort & Anxiety
b. Emotional relationship between listeners and speakers
c. Excitement
d. None of the above

10. Encoding means:
a. Transmission
b. Perception
c. Ideation
d. None of the above
Part Two:
1. Define 7C‟s of effective communication.

2. Explain „Space Language‟.

3. Differentiate between good listeners and bad listeners.

4. List the different types of business report.

5. Define „Kinesics‟.

IIBM Institute of Business Management

END OF SECTION A
2
Examination Paper of Business Communication
Section B: Caselets (40 marks)
 This section consists of Caselets.
 Answer all the questions.
 Each Caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200
words).

IIBM Institute of Business Management

Caselet 1
Mr. and Mrs. Sharma went to Woodlands Apparel to buy a shirt. Mr. Sharma did not read the
price tag on the piece selected by him. At the counter, while making the payment he asked for
the price. Rs. 950 was the answer.

Meanwhile, Mrs. Sharma, who was still shopping came back and joined her husband. She was
glad that he had selected a nice black shirt for himself. She pointed out that there was a 25%
discount on that item. The counter person nodded in agreement.

Mr. Sharma was thrilled to hear that “It means the price of this shirt is just Rs. 712. That‟s
fantastic”, said Mr. Sharma.
He decided to buy one more shirt in blue color.

In no time, he returned with the second shirt and asked them to be packed. When he received the
cash memo for payment, he was astonished to find that he had to pay Rs. 1,900 and Rs. 1,424.

Mr. Sharma could hardly reconcile himself to the fact that the counter person had quoted the
discounted price which was Rs. 950. The original price printed on the price tag was Rs. 1,266.

Questions

1. What should Mr. Sharma have done to avoid the misunderstanding?

2. Discuss the main features involved in this case.

Caselet 2
I don‟t want to speak to you. Connect me to your boss in the US,” hissed the American on the
phone. The young girl at a Bangalore call centre tried to be as polite as she could. At another call
centre, another day, another young girl had a Londoner unleashing himself on her, “Young lady,
do you know that because of you Indians we are losing jobs?”

The outsourcing backlash is getting ugly. Handling irate callers is the new brief for the young
men and women taking calls at these outsourced job centres. Supervisors tell them to be „cool‟.
Avinash Vashistha, managing partner of NEOIT, a leading US-based consultancy firm says,
“Companies involved in outsourcing both in the US and India are already getting a lot of hate
mail against outsourcing and it is hardly surprising that some people should behave like this on
the telephone.” Vashistha says Indian call centre‟s should train their operators how to handle
such calls. Indeed, the furor raised by the Western media over job losses because of outsourcing
3
Examination Paper of Business Communication
has made ordinary citizens there sensitive to the fact that their calls are being taken not from
their midst, but in countries such as India and the Philippines.

The angry outbursts the operators face border on the racist and sexist, says the manager of a call
centre in Hyderabad. But operators and senior executives of call centres refuse to go on record
for fear of kicking up a controversy that might result in their companies‟ losing clients overseas.

“It‟s happening often enough and so let‟s face it,” says a senior executive of a Gurgaon call
centre, adding, “This doesn‟t have any impact on business.”

Questions

1. Suppose you are working as an operator in a call centre in India and receiving calls
from Americans and Londoners. How would you handle such calls?

2. Do you agree with the view such abusive happenings on the telephone do not have any
impact on business?
IIBM Institute of Business Management

END OF SECTION B

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 to 250
words).

`
1. What do you by Communication Barriers? How and why do they occur? What can be

done to overcome the Barriers to Communication?

2. Define and explain the term Negotiation and also briefly explain the phases of
Negotiation.

ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM