Business Administration Paper – 2004

1) In a large corporation, the firm‟s owners are usually its top managers. False

2) The basic information needed to construct a flow of funds statement is found on the income
statement. True

3) The operating break-even point is the point at which operating profits equal revenues
minus operating costs. False

4) A sinking fund is a poorly performing mutual fund whose net asset value is declining.
False

5) Penetration Pricing is used when a marketer introduces a new product at a relatively high
price. False

6) The most common channel for consumer products is manufacturer-retailer- consumer. True

7) In the classification of consumer products, convenience products are usually more
expensive than shopping products. False

8) During the maturity stage of the PLC, sales increase at faster rate than during any other
stage. False

9) A wide span of management results in few organizational levels, and a narrow span results
in many levels. True

10) The Line relationship involves making decisions and acting on them. True

11) Data is defined as “formal system of gathering, integrating, comparing, analyzing, and
dispersing information internal and external to the enterprise in a timely,
effective and efficient manner”. False

12) A manager who believes that people inherently dislike work probably accepts McGregor‟s
Theory X. True

13) If a manufacturer gives a 30 percent discount to retailers and a 10 percent discount to
wholesalers, which type of discount is being given?

A. Quantity
B. Cash
C. Functional also called trade discount)
D. Seasonal

14) Publicity differs from advertising in as much as:

A. It is directed at large numbers of consumers.
B. Its message is of a non personal nature.
C. It is carried by the mass media.
D. It is a non paid Form of reaching the public.

15) In which stage of the PLC are promotion expenses per product item usually highest?

A. Introduction
B. Growth
C. Maturity
D. Decline

16) Which of the following is not a disadvantage of using a Committee?

A. High cost in time and money
B. Splitting responsibility
C. Group deliberation and judgment
D. Compromise decisions

17) Identify the Organization established by our Federal government to regulate security
markets:

A. SBP
B. SEC
C. NAB
D. NFC

18) If the credit terms are 2/10, net 30 and the amount of invoice is Rs. 4000, how much is
the discount if the invoice is paid in 20 days?
for example, the term 2/10, net 30 allows a customer to deduct 2% of the net amount owed if the
customer pays within 10 days of the invoice date. If a customer does not pay within the discount
period of 10 days, the net purchase amount without the discount) is due 30 days after the invoice
date.)

A. Zero
B. Rs. 30
C. Rs. 60
D. Rs. 120

19) Which of the following is not part of the promotion-mix?

A. Public relations
B. Product planning
C. Personal selling
D. Advertising

20) Selling activities include:

A. Sales presentations
B. Demonstrations
C. Handling objections
D. Closing the sale
E. None of these