MB0038 - Management Process and Organization Behavior - Jan 2011

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Q.1 Write a note on the managerial roles and skills. [10] [10]

Q.2 Explain the social learning theory in detail. [10] [10]

Q.3 Explain the Big 5 model of personality. [10]

Q.4 What are the different factors influencing perception? [10] [10]

Q.5 Write a note on contemporary work cohort. [10]

Q.6 What are the special issues in motivation? Discuss Jan 2011


Master of Business Administration-MBA Semester 1
MB0038 - Management Process and Organization Behavior - Jan 2011

Q.1 Explain the theories of emotion. [10]

Q.2 . Discuss the techniques of decision making in groups. [10]

Q.3 Elaborate the different stages in process of conflict. [10]

Q.4 Write a note on GAS ( General Adaptation Syndrome). [10]

Q.5Discuss the power and influence tactics .[10]

Q.6 Explain the characteristics of organization Development. [10]



MB0039 – Business Communication - February 2011

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Q.1 Explain the different types of communication with relevant examples. (10 marks)

Q.2 What are the general principles of writing especially business writing? (10 marks)

Q.3 How would you prepare yourself for an oral business presentation? (10 marks)

Q.4 You are a team manager having 15 members in your team. Two of your key team members are on 3-weeks leave. You have to call for a monthly team meeting within a week. How effectively you would plan and carry out this meeting? (10 marks)

Q. 5 Distinguish between circulars and notices along with formats. (10 marks)

Q. 6 You are a sales manager for a particular brand of mixer and blender. Frame a sample bad news letter telling a customer about that her claim for the product replacement is rejected on the grounds that the product didn’t have any defect during the sale. (10 marks) February 2011

MB0039 – Business Communication - February 2011

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Q.1 As a part of top management team, how would you communicate to your shareholders about the company’s expansion plans? (10 marks)

Q.2 ABC Ltd. wants to communicate about its corporate image to all its stakeholders and also to the general public. As an advisor, how do you recommend them to do it? (10 marks)

Q.3 What is oral business communication? Explain its benefits to the organisation and to the individual employee. (10 marks)

Q.4. Give short notes on communication network in the organisation. (10 marks)

Q. 5 What are the different types of business letters? Explain with example. (10 marks)

Q. 6 Prepare your resume highlighting your personal achievements, job experience if any and educational background. Also prepare a cover letter to the organisation where you want to apply and the position to be applied for. (10 marks)

MB0040 – STATISTICS FOR MANAGEMENT- Feb Drive 2011

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1. (a) What is the difference between a qualitative and quantitative variable?

[5 Marks]

(b) A town has 15 neighbourhoods. If you interviewed everyone living in one particular neighbourhood, would you be interviewing a population or a sample from the town? Would this be a random sample? If you had a list of everyone living in the town, called a frame, and you randomly selected 100 people from all neighbourhoods, would this a random sample? [5 Marks]

2. a) Explain the steps involved in planning of a statistical survey? [5 Marks]

b) What are the merits & Demerits of Direct personal observation and Indirect Oral Interview? [5 Marks]

3. a) Draw Ogives from the following data and measure the median value. Verify it by actual calculations. [5 Marks]

Central size

5

15

25

35

45

Frequency

5

11

21

16

10

b) Complete the following distribution, if its Median is 2,600 and compute the value of Arithmetic Mean. [5 Marks]


Size

1000-1500

1500-2000

2000-2500

2500-3000

3000-4000

4000-5000

5000-6000

Total

Frequency

120

?

400

500

?

50

20

1500

4. a) What is the main difference between correlation analysis and regression analysis? [5 Marks]

b) In a multiple regression model with 12 independent variables, what are the degrees of freedom for error? Explain? [5 Marks]

5. a) Discuss what is meant by Quality control and quality improvement.
[5 Marks]

b) What are the limitations of a quality control charts? [5 Marks]

6. a) Suggest a more suitable average in each of the following cases:
[5 Marks]
(i) Average size of ready-made garments.
(ii) Average marks of a student.
b) State the nature of symmetry in the following cases: [5 Marks]
(i) When median is greater than mean, and
(ii) When Mean is greater than median

MB0040 – STATISTICS FOR MANAGEMENT- Feb Drive 2011

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1. What are the characteristics of a good measure of central tendency?

[5 Marks]
(b) What are the uses of averages? [5 Marks]

2. For each one of the following null hypothesis, determine if it is a left-tailed, a right-tailed, or a two-tailed test. [10 Marks}

a. μ ≥ 10
b. P ≤ 0.5
c. μ is at least 100.
d. μ ≤ -20
e. p is exactly 0.22

3. What is test statistic? Why do we have to know the distribution of a test statistic? [10 Marks]

4. Suppose you are sampling from a population with mean μ= 1,065 and standard deviation σ = 500. The sample size is n=100. What are the expected value and the variance of a sample mean ̅ ? [ 10 Marks]

5. The time it takes an international telephone operator to place an overseas phone call is normally distributed with mean 45 seconds and standard deviation 10 seconds. [10 Marks]

a) What is the probability that my call will go through in less than 1 minute?
b) What is the probability that I will get through in less than 40 seconds?

6. The following data are the number of tons shipped weekly across the pacific by a shipping company. [10 marks]
Feb Drive 2011

398, 412, 560, 476, 544, 690, 587, 600, 613, 457, 504, 477, 530, 641, 359, 566, 452, 633, 474, 499, 580, 606, 344, 455, 505, 396, 347, 441, 390, 632, 400, 582
Assume these data represent an entire population. Find the population mean and the population standard deviation.

MB0041 Financial and Management Accounting Spring 2011(Feb-July)

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Q.1 Assure you have just started a Mobile store. You sell mobile sets and currencies of Airtel, Vodaphone, Reliance and BSNL. Take five transactions and prepare a position statement after every transaction. Did you firm earn profit or incurred loss at the end? Make a small comment on your financial position at the end. [10 Marks]

Q.2a. List the accounting standards issued by ICAI. [5 Marks]

2b. Write short notes of IFRS. [5 Marks]

Q.3 Prepare a Three-column Cash Book of M/s Thuglak & Co. from
The following particulars: [10 Marks]

20X1 Jan

1. Cash in hand Rs. 50,000, Bank Overdraft Rs. 20,000

2. Paid into bank Rs. 10,000

3. Bought goods from Hari for Rs, 200 for each

4. Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1%

5. Sold goods to Mohan for each Rs. 1.175

6. Received a cheque from Shyam to whom goods were sold for Rs. 800.Discount allowed 12.5%

7. Shyam’s cheque deposited into bank

8. Purchased an old typewriter for Rs. 200 , Spent Rs. 50 on its repairs

9. Bank notified that Shyam’s cheque has been returned dishonored and debited the account in respect of charges Rs. 10

10. Received a money order Rs. 25 from Hari

11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged.

12. Withdrew from the bank Rs. 10,000

18. Discounted a B/E for Rs. 1,000 at 1% through bank

20. Honored our own acceptance by cheque Rs. 5,000

22. Withdrew fir personal use Rs. 1,000

24. Paid tread expenses Rs. 2,000

25. Withdrew from bank for private expenses Rs. 1,500

26. Purchased machinery from Rajiv for 5,000 and paid him by means of a bank draft purchased for Rs. 5,005

27. Issued cheque to Ram Saran for cash purchased of furniture Rs. 1,575

28. Received a cheque for commission Rs. 500 from R.& Co. and deposited into bank

29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paise in the rupee

30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of into bank

31. Paid rent to landlord “Mohan” by cheque of Rs. 220

31. Interest allowed by bank Rs. 30

31. Half-yearly bank charges Rs. 50

Q.4 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it. [10 Marks]

Q.5 From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital

Assets

2008

2007

Cash

1,26,000

1,14,000

Short-term investment

42,400

20,000

Debtors

60,000

50,000

Stock

38,000

28,000

Long term Investment

28,000

44,000

Machinery

2,00,000

1,40,000

Building

2,40,000

80,000

Land

14,000

14,000

Total

7,48,400

4,90,000

Liabilities and Equity

Accumulated depreciation

1,10,000

60,000

Creditors

40,000

30,000

Bills Payable

20,000

10,000

Secured loans

2,00,000

1,00,000

Share capital

2,20,000

1,60,000

Share premium

24,000

Nil

Reserves and surplus

1,34,400

1,30,000

Total

7,48,400

4,90,000

Income statement


Sales

2,40,000

Cost of goods sold

1,34,600

Gross Profit

1,05,200

Less Operating expenses:
Depreciation – machinery 20,000
Depreciation – building 32,000
Other expenses 40,000

92,000

Net profit from operation

13,200

Gain on sale on long-term investment

4,800

Total

18,000

Loss on sale of machinery

2,000

Net Profit

16,000

Adjustments:

1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation on machinery sold]. Proceeds from the sale of machinery were Rs.6000
2) Dividends paid during the year Rs.11600 [ 10 Marks]

Q.6 What is a cash budget? How it is useful in managerial decision making? [10 Marks]

MB0041 - Financial and Management Accounting Spring 2011(Feb-July)

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Financial and Management Accounting Spring 2011(Feb-July)

Q.1 Selected financial information about Vijay merchant company is given below:

Q.1 Selected financial information about Vijay merchant company is given below:

2010

2009

Sales

69,000

43,000

Cost of Goods Sold

57,000

32,500

Debtors

7,200

3,000

Inventories

11,400

5,500

Cash

1,500

800

Other current assets

4,000

2,700

Current liabilities

16,000

11,000

Compute the current ratio, quick ratio, average debt collection period and inventory
turnover for 2009 and 2010. State whether there is a favorable or unfavorable change in liquidity from 2009 to 2010. At the beginning of 2009, the company had debtors of Rs..2500 and inventory of Rs.3000. [10 Marks]

Q.2 Explain different methods of costing. Your answer should be studded with examples (preferably firm name and product) for each method of costing.

[10 Marks]

Q.3 State the importance of differentiating between the fixed costs and variable costs in managerial decision. [10 Marks]

Q.4 Following are the extracts from the trial balance of a firm as at 31st March 2009


Name of the account

Dr

Cr

Sundry debtors

2,05,000

Bad debts

3,000

Additional Information
1) After preparing the trial balance, it is learnt that Mr.X a debtor has become insolvent and nothing could be recoverd from him and, therefore the entire amount of Rs.5,000 due from him was irrecoverable.

2) Create 10% provision for doubtful debt.
Required: Pass the necessary journal entries and show the sundry debtors Spring 2011(Feb-July)

account, bad debts account, provision for doubtful debts account, P&L a/c and Balance sheet as at 31st March 2009. [10 Marks]

Q.5 A change in credit policy has caused an increase in sales, an increase in discounts taken, a decrease in the amount of bad debts, and a decrease in investment in accounts receivable. Based upon this information, the company’s (select the best one and give reason)
1) Average collection period has decreased
2) Percentage discount offered has decreased
3) Accounts receivable turnover has decreased
4) Working Capital has increased.
[10 Marks]

Q.6 Identify the users of accounting information. [10 Marks]

MB0042 – Managerial Economics - Feb drive 2011

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Q.1 Price elasticity of demand depends on various factors. Explain each factor with the help of an example.

Q.2 A company is selling a particular brand of tea and wishes to introduce a new flavor. How will the company forecast demand for it ?

Q.3 The supply of a product depends on the price. What are the other factors that will affect the supply of a product.

Q.4 Show how producers equilibrium is achieved with isoquants and isocost curves.

Q.5 Discuss the full cost pricing and marginal cost pricing method. Explain how the two methods differ from each other.

Q.6 Discuss the price output determination using profit maximization under perfect competition in the short run. [Type text] [Type text] Feb drive 2011


Master of Business Administration - MBA Semester I
MB0042 – Managerial Economics - Feb drive 2011

Q.1 Income elasticity of demand has various applications. Explain each application with the help of an example.

Q.2 When is the opinion survey method used and what is the effectiveness of the method.

Q.3 Show how price is determined by the forces of demand and supply, by using forces of equilibrium.

Q.4 Distinguish between fixed cost and variable cost using an example.

Q.5 Discuss Marris Growth Maximization model and show how it is different from the Sales maximization model.

Q.6 Explain how fiscal policy is used to achieve economic stability.

Master of Business Administration-MBA Semester I
Subject Code – MB0043
Human Resource Management - Jan 2011


Q.1 Write down the difference between Personnel management and Human Resource management.[10 Marks]

Q.2 Write a note on scope of HR in India. [10 Marks]

Q.3 Explain the critical steps in Human Resource Planning system .[10 Marks]

Q.4 With reference to the compensation and salary system what are the systems that are helpful to raise the effectiveness of employees.[10 Marks]

Q.5 What is competency? How it can be linked to the HR system? [10 Marks]

Q.6 “Dynamic Learning” is an organization that wants to revise the HR policies. It has conducted a survey and the results of survey indicated that r=there is employee unrest, tardiness, absenteeism, more grievances. This all clearly indicates low morale. Suggest the measures that can be taken to improve employee morale. [10 Marks]

MB0038 – Management Process and Organization Behavior

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Q.1 Explain controlling and also discuss different types of control [10]

Basically, organizational coordination and control is taking a systematic approach to figuring out if you're doing what you wanted to be doing or not. It's the part of planning after you've decided what you wanted to be doing. Below are some of the major approaches to organizational control and coordination.

Many People Are Averse to Management "Control"

New, more "organic" forms or organizations (self-organizing organizations, self-managed teams, network organizations, etc.) allow organizations to be more responsive and adaptable in today's rapidly changing world. These forms also cultivate empowerment among employees, much more than the hierarchical, rigidly structured organizations of the past.
Many people assert that as the nature of organizations has changed, so must the nature of management control. Some people go so far as to claim that management shouldn't exercise any form of control whatsoever. They claim that management should exist to support employee's efforts to be fully productive members of organizations and communities -- therefore, any form of control is completely counterproductive to management and employees.
Some people even react strongly against the phrase "management control". The word itself can have a negative connotation, e.g., it can sound dominating, coercive and heavy-handed. It seems that writers of management literature now prefer use of the term "coordinating" rather than "controlling".

"Coordination" Must Exist or There's No Organization -- Only an "Experience"


Q.2 Veer Prabhakar is the Vice President of web bazaar, online portal for [10]
shopping of various products. He has team of 100 people at different
levels and departments. He is facing certain challenges.
Challenge 1
To maintain motivation levels of sales associated who are doing good sales
Challenge 2
How to deal with the supply chain associates who are not following up
properly for order delivery. (Currently, they are getting Cell Phone
allowance for consistence follow-up after office hours)
Challenge 3
To deal with the people who keep taking leaves without prior information.
Suggest suitable methods to shape employee behavior. [10]
Q.3 Write a detailed note on Myers-Briggs type indicator [10]
Q.4 Explain the factors influencing perception [10]
Q.5 Describe the leadership Grid with the help of the diagram [10]
Q.6 Given below are certain observations done by an OD consultant for an organization dealing with manufacturing of tyres. She makes the following observations about two key people in the organization.
1. Mr. Raovikram – He is a very friendly person and encourages his team members by giving them recommendations and appreciation. This helps HR to decide about giving a bonus or promotion to employees.
2. Mr. Ranjan kumar- He is an aggressive person. He frequently loses his temper. Ritu observes that he frequently punishes the non-performers and also gives them warnings regarding suspension etc.Now explain what base of power Mr. Raovikram and Mr. Ranjan Kumar belong to. Explain the type of power they use often. [10]
Master of Business Administration-MBA Semester 1
MB0038 – Management Process and Organization Behavior - 4 Credits
(Book ID: B1127)
Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Write a detailed note on management theories developed during classical Era. [10]
Q.2 . Write a short note on: [10]
(a) Contemporary work cohort (b) Alexithymia
Q.3 Mr. Khanna wants to improve his conflict management skills. He visits a consultant to help him. He gives the list of situations to the consultant.
The situations are:

1. When quick, decisive action is vital (e.g., emergencies).

2. On important issues where unpopular actions need implementing (e.g., cost cutting, enforcing unpopular rules, discipline).

3. To merge insights from people with different perspectives.

4. When you perceive no chance of satisfying your concerns.

5. When issues are more important to others than to you - to satisfy others and maintain cooperation.

6. To gain commitment by incorporating concerns into a consensus.

7. On issues vital to company welfare when you know you are right.

_____________________________

MB0039 - Business Communication - 4 credits

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Assignment - Set 1 Marks 60
Note: Each Question carries 10 marks each

1. Briefly describe any situation in your own experience where the communication failed because the non-verbal behavior sent a negative message. Which aspect of non-verbal communication contributed to the failure? How would you correct this? (10 marks)

The following example illustrates an organizational barrier to communication. By the time the message is passed down from the Chief to the lower level Executives, it is distorted completely, so much so that the original message is interpreted differently by each level in the organization.
Memo from CEO to Manager: Today at 11 o’clock there will be a total eclipse of the sun. This is when the sun disappears behind the moon for 2 minutes. As this is something that cannot be seen every day, time will be allowed for employees to view the eclipse in the parking lot. Staff should meet in the lot at ten to eleven, when I will deliver a short speech introducing the eclipse, and giving some background information. Safety goggles will be made available at a small cost.
Memo from Manager to Department Head: Today at ten to eleven, all staff should meet in the car park. This will be followed by a total eclipse of the sun, which will appear for 2 minutes. For a moderate cost, they will be made safe with goggles. The CEO will deliver a short speech beforehand to give us all some information. This is not something that can be seen everyday.

2. What are the biggest barriers that prevent you from listening effectively? Explain how you could overcome these barriers. (10 marks)

3. List and briefly describe the five most important guidelines, in your opinion, to be followed when making oral business presentations. (10 marks).

4. You are a management trainee reporting to the Marketing Manager of an organization. You have been asked to go through business publications and summarize articles related to Branding. Explain the purpose of reading in this case and the type of reading that you will be required to do. (10 marks).

5. In your opinion, what are the five most common mistakes made during business meetings. Justify your answer. (10 marks)

6. Select any article from a business publication and prepare a summary of it in one fourth its size.. Write this in the form of a one page memo, addressed to your professor. Attach the original article with your assignment.(10 marks).

MB0040 – STATISTICS FOR MANAGEMENT- 4 Credits

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(Book ID: B1129)

Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions

Q1. (a) ‘Statistics is the backbone of decision-making’. Comment.
(b) ‘Statistics is as good as the user’. Comment.

Answer:
a. Due to advanced communication network, rapid changes in consumer behaviour, varied expectations of variety of consumers and new market openings, modern managers have a difficult task of making quick and appropriate decisions. Therefore, there is a need for them to depend more upon quantitative techniques like mathematical models, statistics, operations research and econometrics.
Decision making is a key part of our day-to-day life. Even when we wish to purchase a television, we like to know the price, quality, durability, and maintainability of various brands and models before buying one. As you can see, in this scenario we are collecting data and making an optimum decision. In other words, we are using Statistics.
Again, suppose a company wishes to introduce a new product, it has to collect data on market potential, consumer likings, availability of raw materials, feasibility of producing the product. Hence, data collection is the back-bone of any decision making process.
Many organisations find themselves data-rich but poor in drawing information from it. Therefore, it is important to develop the ability to extract meaningful information from raw data to make better decisions. Statistics play an important role in this aspect.
Statistics is broadly divided into two main categories. Below Figure illustrates the two categories. The two categories of Statistics are descriptive statistics and inferential statistics.

2. Distinguish between the following with example.
(a) Inclusive and Exclusive limits.
(b) Continuous and discrete data.
(C) Qualitative and Quantitative data
(d) Class limits and class intervals.

3. In a management class of 100 students’ three languages are offered as an additional subject viz. Hindi, English and Kannada. There are 28 students taking Hindi, 26 taking Hindi and 16 taking English. There are 12 students taking both Hindi and English, 4 taking Hindi and English and 6 that are taking English and Kannada. In addition, we know that 2 students are taking all the three languages.

i) If a student is chosen randomly, what is the probability that he/she is not taking any of these three languages?
ii) If a student is chosen randomly, what is the probability that he/ she is taking exactly one language?

4. List down various measures of central tendency and explain the difference between them?

5. Define population and sampling unit for selecting a random sample in each of the following cases.

a) Hundred voters from a constituency
b) Twenty stocks of National Stock Exchange
c) Fifty account holders of State Bank of India
d) Twenty employees of Tata motors.
6. What is a confidence interval, and why it is useful? What is a confidence level?

MB0043 – Human Resource Management - 4 Credits

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(Book ID: B0909)
Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Discuss the factors affecting recruitment? [10 Marks]

Q.2 Right Time is a watch manufacturing company. It has hired 20 people recently for the company. They will be involved in manufacturing, assembling of watches. They will be using different machines and tools for this. What type of training is best for them. What may be the advantages and limitations of the training method? [10 Marks]

Q.3 Write a note on 360 degree appraisal method.[10 Marks]

Q.4 Given below is the HR policy glimpse of “ZoomVideo”, a multimedia company
1. It offers cash rewards for staff members
2. It promotes the culture of employee referral and encourages people to refer people they know, maybe their friends, ex. colleagues, batch mates and relatives.
3. It recognizes good performances and gives good titles and trphies to the people who perform well and also felicitates them in the Annual Day of the company.
Identify what all aspects does it take care of, based on different levels of Maslow’s Need Hierarchy ? [10 Marks]

Q.5 Describe the emerging employee empowerment practices. [10 Marks]

Q.6 Write a note on directive, permissive and participative type of leadership. [10 Marks]

MB0041- Financial & Management Accounting

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Assignment Set 1- (60 Marks)
  1. Accounting Principles are the rules based on which accounting takes place and these rules are universally accepted. Explain the principles of materiality and principles of full disclosure. Explain why these two principles are contradicting each other. Your answer should be substantiated with relevant examples.

  • Materiality principle: Accountants follow the materiality principle, which states that the requirements of any accounting principle may be ignored when there is no effect on the users of financial information. Certainly, tracking individual paper clips or pieces of paper is immaterial and excessively burdensome to any company's accounting department. Although there is no definitive measure of materiality, the accountant's judgment on such matters must be sound. Several thousand dollars may not be material to an entity such as General Motors, but that same figure is quite material to a small, family-owned business.
  • Full disclosure means to disclose all the details of a security problem which are known. It is a philosophy of security management completely opposed to the idea of security through obscurity. The concept of full disclosure is controversial, but not new; it has been an issue for locksmiths since the 19th century. Full disclosure requires that full details of security vulnerability are disclosed to the public, including details of the vulnerability and how to detect and exploit it. The theory behind full disclosure is that releasing vulnerability information results in quicker fixes and better security. Fixes are produced faster because vendors and authors are forced to respond in order to save face. Security is improved because the window of exposure, the amount of time the vulnerability is open to attack, is reduced. The full disclosure principle states that any future event that may or will occur, and that will have a material economic impact on the financial position of the business, should be disclosed to probable and potential readers of the statements. Such disclosures are most frequently made by footnotes. For example, a hotel should report the building of a new wing, or the future acquisition of another property. A restaurant facing a lawsuit from a customer who was injured by tripping over a frayed carpet edge should disclose the contingency of the lawsuit. Similarly, if accounting practices of the current financial statements were changed and differ from those previously reported, the changes should be disclosed. Changes from one period to the next that affect current and future business operations should be reported if possible. Changes of this nature include changes made to the method used to determine depreciation expense or to the method of inventory valuation; such changes would increase or decrease the value of ending inventory, cost of sales, gross margin, and net income or loss. All changes disclosed should indicate the dollar effects such disclosures have on financial statements.

2. Journalize the below transactions, prepare relevant ledger accounts and finally trial balance. . ( 6+6+3 = 15 Marks)
M/s Ventak Enterprise Pvt Ltd.


01.01.2009

Started business with cash Rs. 2,00,000 Goods Rs. 1,00,000 Furniture Rs. 50,000

01.01.2009

Opened Current Account with Rs. 1,00,000

02.01.2009

Placed an order with Ritik for the supply of goods of the list price of Rs. 1, 00, 00.In this connection, we paid 9% of the list price as an advance by cheque.

03.01.2009

Ritik supplied goods of the list price of Rs. 1, 00,000 less 12% trade discount. Packing and delivery charges Rs. 1,000.

04.01.2009

Purchased goods from Murali of the list price of Rs. 1,00,000 less 12% trade discount and paid him by cheque under a cash discount of 5%

05.01.2009

Received an order from Shyam for supply of goods of the list price of Rs. 1, 00,000 with an advance of 10% of list price.

06.01.2009

Supplied the above goods at 10% trade discount. Packing and delivery charges Rs. 1000.

07.01.2009

Goods costing Rs. 80,000 sold to Mr X at a profit of 20% on sales less 10% trade discount and 2% cash discount

08.01.2009

Goods (cost Rs. 3,000, Sales Price Rs. 4,000) taken away by the proprietor for his personal use.

09.01.2009

Shyam became insolvent and paid 80 paise in a rupee in full and final settlement

10.01.2009

Paid Ritik 80% on account.

11.01.2009

Goods (Cost Rs. 3,000 , Sales Price Rs. 4,000) stolen

12.01.2009

Paid Life Insurance Premium Rs. 1,000.

13.01.2009

Cash embezzled by an employee Rs. 1,000.

3. Explain any two types of errors that are disclosed by trial balance with examples and rectification entry.
Note - Avoid giving examples given in the self learning material. (10 marks) Nov 2010

4. Let us assume you have been recently appointed as Management Accountant of a small but upcoming firm. Your immediate supervisor has asked you to prepare certain financial ratios from the balance sheet of one of their clients M/s Vinod Enterprise.

Liabilities

Amount

Assets

Amount

Equity Share Capital

50000

Fixed assets

87500

8% Pref Share Capital

10000

Investments

25000

Reserve Fund

40000

Stock

30000

6% Debentures

20000

Sundry Debtors

13500

Sundry Creditors

30000

Bank Balance

7000

P & L account
Year 2000 - 1000
2001 - 20000

21000

Preliminary expenses

8000

Total

171000

Total

171000

The director intent to transfer a sum of Rs.5000 out of the current year’s profit to provision for tax. The financial ratios needed are:

a. Return on capital employed

b. Current ratio

c. Fixed assets to networth

d. Debt - Equity ratio

e. Return on owner’s capital. (10 Marks)

5. A friend of you has approached to help him out in setting his books of accounts in order. Unfortunately he is struck with difference in trial balance. Help him in redrafting the trial balance. (5 Marks)

Sl.no

Particulars

Dr

Cr

1

Stock on 31st Dec,2008

1,92,100

2

Capital

13,450

3

Cash in hand

1,400

4

Bank Overdraft

9,320

5

Sales

2,36,400

6

Purchases

106,400

7

Returns inward

13,400

8

Returns outward

2,960

9

Carriage outward

2,360

10

Carriage inward

14,260

11

Salaries

9,600

12

Wages

3,660

13

Sundry debtors

16,300

14

Sundry creditors

37,360

15

Stock on 1st Jan 2006

94,120

16

Land and building

15,000

17

Plant and machinery

20,900

18

Trade expenses

2,090

3,95,540

3,95,540

6. Explain the accounting treatment of bad debt and provision for doubtful debts with suitable example. (10 Marks)

____________________________________________________________________________________

____________________________________________________________________________________

Masters of Business Administration- MBA Semester 1
MB0045 – Managerial Economics - 4 Credits
(Book ID: B1131) Assignment Set- 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

1. Explain what is price elasticity of demand and outline the determinants of price elasticity of demand with examples.

Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or HHelasticityHH, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price (holding constant all the other determinants of demand, such as income). It was devised by HHAlfred MarshallHH.
Price elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to ambiguity. Only goods which do not conform to the HHlaw of demandHH, such as HHVeblenHH and HHGiffen goodsHH, have a positive PED. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is, changes in price have a relatively small effect on the quantity of the good demanded. The demand for a good is said to be elastic (or relatively elastic) when its PED is greater than one (in absolute value): that is, changes in price have a relatively large effect on the quantity of a good demanded.
Revenue is maximised when price is set so that the PED is exactly one. The PED of a good can also be used to predict the HHincidence (or "burden") of a taxHH on that good. Various research methods are used to determine price elasticity, including HHtest marketsHH, analysis of historical sales data and HHconjoint analysisHH.

Definition

PED is a measure of responsiveness of the quantity of a good or service demanded to changes in its price.HH1HH The formula for the coefficient of price elasticity of demand for a good is:HH2HHHH3HHHH4

2. In the newspapers we read about mergers between companies in the same line of business. What are the economies of scale that can be availed of with mergers.

3. Discuss the features of monopolistic competition and the method of price determination in monopolistic competition.

4. If you were to buy a car, what are the factors that would affect the demand for your purchase.

5. When factors of production are combined to produce a particular level of output, what would be the effect on total product when all factors are kept fixed and only one factor is varied. For example, when the amount of land used for producing a particular crop is kept the same, and the other factors of production like labour, fertilisers, etc is increased.

6. A company wishes to project the production requirements of a particular product in the coming years. How will the company forecast the demand in the coming years, using the trend projection method

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