practice questions (B. St.)

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1. The Return on Investment (ROI) of a company ranges between 10-12% for the past three years.

To finance
its future fixed capital needs, it has the following options past for borrowing debt:
Option A': Rate of interest 9%; Option B: Rate of interest 13%
Which source of debt, 'Option A' or 'Option B, is better? Give reason in support of your answer. Also state
the concept being used in taking the decision.
2. Miracle Ltd. deals in the sale of stationery and office furniture. They source the finished products from
reputed brands who give them four to six months credit. Because of increase in the demand for electronic
items, they are planning to sell these items also. For this, they have decided to join hands with a Japanese
electronic goods manufacturer, to open sales outlets throughout India. State any three factors affecting
working capital requirement of Miracle Ltd. other than the factors discussed above.
3. Determine the relative proportion of various types of funds depends upon various factors. Explain any five
such factors.
4. Seeta, Geeta and Babita Ltd. is engaged in manufacturing machine components. The target production is
250 units per day per worker. The company had been successfully attaining this target until two months
ago. Over the last two months, it has been observed that daily production varies between 200-210 units
per worker.
a) Name the function of management and identify the step in the process of function which helped in
finding out that the actual production of a worker less than the set target.
b) To complete the process of the function identified in (a) and to ensure performance as per set targets,
explain what further steps a manager has to take.
5. Explain the Relationship between Planning and Controlling.
6. Huna is working in a company on a permanent basis. As per the job agreements she had to work for 8
hours a day and was free to work overtime. Huna worked overtime, due to which she fell ill and had to take
leave from her work. No one showed concern and enquired about her health. She realised that she was
fulfilling only some of her needs while some other needs still remained to be fulfilled
(a) By quoting the lines from the above para, identify the needs of Huna which she is able to fulfill.
(b) Also explain two other needs of Huna followed by the above needs which still remained to be satisfied.
7. Explain four Financial and Four Non Financial Incentives.
8. The Managing Director of 'Verma Chemicals Pvt. Ltd.' held a meeting of all the departmental managers. In
the meeting, the managing director said that besides doing their current work efficiently, they also had to
make themselves capable of shouldering more responsibility in future as the company is going to add an
additional product to its existing product line. For the realisation of this objective he invited suggestions
from all departmental heads. The Managing Director proposed a plan on the basis of the suggestions
received. All the departmental heads carried out the plan.
(a) Identify and give the meaning of the style of leadership referred in the above para.
(b) Explain the other two styles of leadership.
9. Neeraj, a sales representative of 'Omida Ltd.' has changed seven jobs in the last one year. He is a hard
working person but is not able to finalise deals with the customers due to his inadequate vocabulary and
omission of needed words. Sometimes he uses wrong words because of which intended meaning is not
conveyed. All this created a mis-understanding between him and his clients.
(a) Identify the communication barrier discussed above.
(b) State the category of this communication barrier.
(c) Explain any other communication barrier of the same category.

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