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AC/APR 2003/MGT123/153

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE DATE TIME

FACULTY SEMESTER PROGRAMME/CODE

INTRODUCTION TO BUSINESS MGT 123/153 21 APRIL 2003 3 HOURS (2.15 p.m-5.15 p.m)
Accountancy December 2002 - May 2003 Diploma in Accountancy / AC110

INSTRUCTIONS TO CANDIDATES 1. This paper consists of THREE (3) parts: PART A (20 Questions) PART B (20 Questions) PART C (6 Questions) Answer ALL questions from PART A and PART B and FOUR (4) questions from PART C. i) Answer PART A in the TRUE/FALSE Answer Sheet ii) Answer PART B in the Objective Answer Sheet iii) Answer PART C in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) the Question Paper ii) an Answer Booklet - provided by the faculty iii) an Objective Answer Sheet iv) a True/False Answer Sheet

2.

3. 4.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 9 printed pages CONFIDENTIAL

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PART A (20 Marks)

Answer ALL questions.

1.
2.

The economic system of any country must deal with the problem of allocating scarce resources.
A "free market" is usually associated with a planned economy.

3. 4.

Controllable factors are those directed by an organization and its marketers. Operating management is the highest level of management.

5. 6. 7.
8.
9.

Market segmentation emphasizes the distinguishing features of a good. Competing business firms have the same departmental structure because they are producing the same goods as their competitors. Ethics are beliefs about what is right and wrong, or good and bad in actions that affect others.
Special pay systems designed to motivate high performance of individuals or groups.
A service, if not used immediately, can be produced and stored until needed.

10.
11.
12.

A focus group consists of a small group of people who meet to communicate their opinions about an organization or its products or other important issues.
A debt capital is always a short-term financing method.
While it is easy to start a sole proprietorship, it is usually very difficult to end this type of business.

13.
14.

High absenteeism may be an indicator of low worker's morale.

Monopoly has the power to determine price and are likely to practice price discrimination.

15.
16.

Dividend is the returns of investment in corporations.

Production control covers two major areas, material management and inventory.

17.

Intermediaries include wholesalers, retailers and consumers.

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18.
19.

Fire, flood and total permanent disability are examples of pure risk.
People's wants is more limited than our productive resources.

20.

The current ratio is used to evaluate a firm's ability in paying its short term debt.
(Total: 20 marks)

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PART B - MULTIPLE CHOICE (20 Marks) Answer ALL questions. Choose the most appropriate answer and shade on the Answer Sheet provided.

1.

_____________ involves the recording of business transaction.

a. b. c. d. Accounting Bookkeeping Auditing Private accounting practice

2.

The following are the purposes of goal setting, EXCEPT:

a. b. c. d. goals setting provides direction and guidance for managers at all level goals setting helps to define corporate objectives goals setting helps firms allocate resources goals setting helps to improve communication effectiveness.

3.

The utility created by making a product available when customers wish to purchase is called __________.
a. b. c. d. form utility place utility time utility production utility

4.

7-Eleven is an example of a

a. b. c. d.

supermarket discount store convenience store department store

5.

Which of the following is one of the four elements of the marketing mix?
a. b. c. d. Planning Production People Distribution

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6.

_____________ skill is especially important for first line managers, because they help employees solve work-related problems.
a. b. c. d. Decision -making Human relations Technical Conceptual

7.

The act of taking up a responsibility for the loss or injury that may result from a risk is known as ______________,
a. b. c. d. risk transfer risk assumption risk control risk avoidance

8.

Saiful Aziz is a human resource manager who recently has spent much of his time trying to obtain a sufficient number of the right types of people at the right time to allow the company to select those who best meet its needs. Saiful has been involved
in ______________.

a. b. c. d. 9.

recruiting human resource promotion organizing job analyzing.

The result of monopoly in the marketplace is ____________. a. b. c. d. better services for customers decrease in the price of goods increase in consumer purchasing power rise in the price of goods

10.

Which of the following would be a concern of social responsibility?

a. b. c. d. Health concerns Hiring practices Care of physical environment All of the above.

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11.

A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a
a. b. c. d. just-in-time process job shop process rigid process lean manufacturing process.

12.

Who does not have an insurable interest in a business building?

a. b. c. d. Customers Managers Lessees Owners

13.

The success of a business system can be measured by the following criteria: I II III IV a. b. c. d. growth productivity employment recession I, II and III II, III and IV I, III and IV I, II and IV

14.

The marketing function involves a set of activities such as: I II III IV V a. b. c. d. selling storing producing buying transporting I, II and III II, III and IV II, III, IV and V I, II, III and V

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15.

Which of the following is not classified as an inventory? a. Raw materials

b. Goods shipped

c. Work-in-progress d. Finished goods 16. An example of the psychological pricing is a. b. c. d. 17. odd-even pricing price lining price skimming cost oriented pricing.

_____________ will be conducted to confirm information about an applicant's experience or education. a. b. c. d. Aptitude test Screening interviews Reference checking Application blank

18.

Operational plans that are used only once, not likely to be repeated in the future are referred to _____________. a. b. c. d. standing plans standard operating procedures tactical plans single-use plans

19.

Which stockholders have the right to vote? a. b. c. d. Preferred Pre-emptive Split Common

20.

The research method include all of the following, EXCEPT _____________. a. b. c. d. observation focus group checking experimentation.

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PART C (60 marks)

Answer any FOUR (4) questions - (15 marks each). 1. a. Define risk and risk management.

(3 marks)
b. Describe in detail the various steps in risk management process.

(12 marks)
(Total = 15 marks)

2.

Define product life cycle. With the aid of a diagram, describe the stages in the product life cycle. (15 marks)

3.

Define management and discuss the four (4) functions of management.

(15 marks)

4.

Briefly explain the advantages and disadvantages of any three (3) transportation mode. (15 marks)

5.

What are the responsibilities of a business towards the following stakeholders: a. shareholders

(5 marks)
b. c. environment

(5 marks)
workers (5 marks)
(Total = 15 marks)

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6.

a.

Differentiate between forward buying and hand-to-mouth purchasing practice. Give one (1) advantage and one (1) disadvantage of each.

(6 marks) b. Discuss the steps in the decision making process. (9 marks)

(Total = 15 marks)
END OF QUESTION PAPER

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