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01 Dec 2011

Mgt603 Strategic Management Current Mid Term Paper Fall Semester 2011

Total marks 44

28 mcqs 2 qustn of 3 marks n 2 of 5 marks.

Q.1: Relatd to IFE matrix wat is meant by following:
A) If financial ratios are scored 3 = ?
B) If crisis manangement strength is 4 = ?
… C) If the rating is 2.85 = ?
(3 marks)
Q.2: explain concentric diversification strategy with the help of two exmples of local or multinational firms operating in pakistan? (3 marks)

Q.3: wat is market research explain its implications for a firm? (5 marks)

Q.4: xyz firm is come to know the importanc of MIS systm so they want to have an MIS systm in thier organization.explain how can a MIS systm can help the manager to improve decision making of an organization? (5 marks)

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29 Nov 2011

Mgt613 Production And Operation Management Mid Term Current Paper Fall Semester 2011

What is automation, elaborate with the basis of operations strategy with respect to process selection? 5 Marks

How can we measure reliability explain with the examples? 5 Marks

Suppose you are a manager and you have to develop the design facility layout, what factors should you keep in your mind while developing facility layout? 3 Marks

Explain the major factor in design strategy? 3 Marks

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24 Nov 2011

Mgt603 Strategic Management Solved Mid Term Papers

Question No: 29 ( Marks: 3 )

Planning function is mostly carried out by managers in strategy formulation stage. What activities are performed under this function?

Strategic formulation means a strategy formulate to execute the business activities. Strategy formulation Includes developing:-

1-Vision and Mission Statement (target of the organization)

2-Stregnths and Weaknesses.(Internal factors.)

3-Opportunities and Threats.(External factors)

Strategy formulation is concerned with setting long term goals and objectives, generating strategies to achieve those goals.

Strategy formulation is also concerned with setting long term goals and objectives, generating

alternative strategies to achieve that long term goals and choosing particular strategy to pursue.

Page #3&4

Question No: 30 ( Marks: 3 )

What should be the characteristics of a firm that is successfully pursuing a Cost

Leadership Strategy? Enlist any six of them.

Answer:

Six characteristics of successfully pursuing cost leadership strategy firm:

1-Limited perks.

2-High efficiency.

3- Low overhead.

4-Wide spans of control.

5-Intensive screening of budget.

6-Employees participation in cost control efforts.page#86

Question No: 31 ( Marks: 5 )

List down and explain five steps that comprise an effective framework for conducting an IFE Matrix.

Steps involved in the development of IFE Matrix:

1-List any internal factors identified in the internal audit. Only ten to twenty factors will be

enough including strengths and weakness. Use percentage, ratios and comparative numbers.

2-Assign weights to each factor ranging from 0 to 1.The rates assigned indicate the relative

importance of each factor to being successful. Sum of all weights must be equal to 1.

3-Assign 1-4 rating to each factor to see whether the factor represents major weakness (rate=1) or minor weakness (rate=2), minor strength (rate =3 ) or major strength (rate=4).

4- Multiply each factor’s weights to its ratings to determine its weighted score.

5-Sum the weighted score of each variable page#47

Question No: 29 ( Marks: 3 )

What activities are performed in strategy evaluation stage under controlling function of management?

Controlling function of management includes all those activities undertaken to ensure that actual operations conform to planned operations. Controlling function of management is particularly important for effective strategy evaluation. Controlling function of management has the following activities in strategy evaluation.

1. Establishing performance standards

2. Measuring individual and organizational performance

3. Taking corrective actions

4. Comparing actual performance to planned performance standards page#59

Question No: 30 ( Marks: 3 )

In your opinion, what can be the circumstances when a Low Cost Producer in an industry brings effectiveness?

Low-cost producer in an industry can be especially effective when the market is

Composed of many price-sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to brand, or when there are a large number of buyers with significant bargaining power The basic idea is to under price competitors and thereby gains market share and sales, driving some competitors out of the market entirely. Page#86

Question No: 31 ( Marks: 5 )

What are the major stakeholders that affect pricing decisions?

Following are the five major stakeholders which affect pricing decisions.

1. Governments

2. Suppliers

3. Distributors

4. Consumers

5. Competitors page#62

Question No: 32 ( Marks: 5 )

Mergers or acquisitions are the methods by which two companies combine to form a larger company. What can be the reasons for achieving mergers or acquisitions?

 The 1st reason for acquisition and merger to combine is that they believe that synergy

exist and by joining both of us can achieve something more than we can get individually.

 Acquisition and merger join to spread its risks and exploit new markets.

 The idea is that the larger firm resulting from the merger can produce more cheaply than the previously separate firms.

 firms may derive tax advantages from a merger or acquisition

 Gain new technology

 Gain economies of scale

 Improve capacity utilization

Question No: 32 ( Marks: 5 )

Give at least two examples of multinational or local firms that are operating in Pakistan and have initiated backward integration. Justify your answer?

Explain concentric diversification strategy with the help of two examples of local or multinational firms operating in Pakistan?

1. List down and explain five steps that comprise an effective framework for conducting an EFE Matrix.

Five-Step process:

 List key external factors (10-20)

􀀀 Opportunities & threats

You have to prepare a list of all external factors which will affect the EFE matrix. These factors should be two points to be kept in mind these are opportunities and threats.

 Assign weight to each (0 to 1.0)

Sum of all weights = 1.0

Now you have to arrange them according to their weight age that which factor is most important.

It should be weight age in % ages. The sum of the total of all the factors should always be one.

 Assign 1-4 rating to each factor

• Firm’s current strategies response to the factor: how well firms response to these factors.

 Multiply each factor’s weight by its rating

• Produces a weighted score

How the firm will respond to these factors external factors. Such criteria are known as rating.

 Sum the weighted scores for each

Determines the total weighted score for the organization.

• Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5

PAGE#44

Q_1) what is average collection period? (3 marks)

The approximate amount of time that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients.

Calculated as:

Where:

Days = Total amount of days in period

AR = Average amount of accounts receivables

Credit Sales = Total amount of net credit sales during period

Q_2) Suppose according to the EFE matrix, the weighted score of a certain company is

2.10. How that company will interpret this score in terms of its external factors? (3 marks)

see page#44 to 45

Q_3) joint ventures are Lon lasting the relationship of the firms, why the joint ventures fails give the reasons? (5 marks)

Following are the reasons of failure of joint venture.

Cultural Differences

Cultural and ideological differences top the list. In evaluating joint venture partners, most companies don’t perform a proper compatibility and integration analysis

Poor Leadership

Poor or unclear leaders are another top reason of joint venture failure. Too often, joint venture partners insist on sharing a project leadership role. When the parties disagree, a standoff occurs.

Insufficient Planning

Insufficient planning is also one of the most prevalent reasons for failed joint ventures. Too often, a joint venture “plan” consists of nothing more than a statement of each party’s intended contributions to the project and their respective share of the profits.

Other Failure Reasons

Other reasons of joint venture failure include poor commitment; disagreement over operating policies, strategies, and tactics; and differences in the approach towards management style and systems

Q_4) what are intensive strategies, explain each with relevant example? (5 marks

Intensive Strategies

Market penetration, market development, and product development are sometimes referred to as

Intensive strategies because they require intensive efforts to improve a firm’s competitive position with existing products.

Market Penetration

A market-penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. Market penetration includes increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts

Market development involves introducing present products or services into new geographic areas. The climate for international market development is becoming more favorable. In many industries, such as airlines, it is going to be hard to maintain a competitive edge by staying close to home

Product Development

Product development is a strategy that seeks increased sales by improving or modifying present products or services. Product development usually entails large research and development expenditures. The U.S. Postal Service now offers stamps and postage via the Internet, which represents a product development strategy. Page#89

Question No: 29 ( Marks: 3 )

Explain test marketing and its significance for an organization.

Answer: Test markets allow an organization to test alternative marketing plans and to forecast future sales of new products. In conducting a test market project, an organization must decide how many cities to include, which cities to include, how long to run the test, what information to collect during the test, and what action to take after the test has been completed. Test marketing

is used more frequently by consumer goods companies than by industrial goods companies. Test marketing can allow an organization to avoid substantial losses by revealing weak products and ineffective marketing approaches before large-scale production begins.page#61

Question No: 30 ( Marks: 3 )

Vertical integration is the degree to which the firm owns its upstream and its downstream buyers. What can be the possible benefits if the firm goes for vertical integration?

Answer: Benefits of vertical integration:

Allow a firm to gain control over:

 Distributors (forward integration)

 Suppliers (backward integration)

 Competitors (horizontal integration) page#81

What is the significance of Research and Development for an organization?

Answer:

Research and Development: The fifth major area of internal operations that should be examined for specific strengths and weaknesses is research and development (R&D). Many firms today conduct no R&D, and yet many other companies depend on successful R&D activities for survival. Firms pursuing a product development strategy especially need to have a strong R&D orientation.

The purpose of research and development are as follows:

 Development of new products before competition

 Improving product quality

 Improving manufacturing processes to reduce costs page#71

Question No: 31 ( Marks: 5 )

What are the five forces of Porter’s Five Forces Model?

Porter’s Five- Forces Model

The central point lays the stress on rivalry of the competing firm. This relates to the intensity of the rivalry. How the firms compete with each other and to what extent? That should be taken into account very carefully. Potential entry for new competitors shows a balance between different firms competing in a market. It also refers whenever a new partner enter into a market he may become threat for one and opportunity for other competing partners. As all the new entries and existing firms are competing with each other so the new entry will definitely make an effect on every one transacting in the market. A potential development of substitute products also develops an environment of competition in the market among the competing partners. As all firms want to compete in term of quality and substitute will lasts for longer in the market if the quality of the substitute will be greater than the existing alternate. Other factors also have a major impact on the substitutes. Collective bargaining power of suppliers and consumers: if vendors are less in the market and the organizations that have to purchase from those vendors are more then the demand for those suppliers will be more as the firms have to purchase from that less suppliers.

The reverse is the case if suppliers are more and buyers are less. Then the demand for those suppliers will be less. Such circumstances create difficulties in bargaining.

These above five components constitute the basics elements for the competitive analysis.

Page#43

Question No: 32 ( Marks: 5 )

Explain Merger and Acquisition with the help of examples (examples should be related to a multinational or local company operating in Pakistan)?

When we use the term “merger”, we are referring to the merging of two companies where one new company will continue to exist. The term “acquisition” refers to the acquisition of assets by one company from another company. In an acquisition, both companies may continue to exist. example main polka and walls or milk pack and nestle

Question No: 31 ( Marks: 5 )

What are the two basic types of R & D that can take place in an organization?

Types of research and development

Basic research:

Basic research is experimental or theoretical work undertaken primarily to acquire new

knowledge of the underlying foundation of phenomena and observable facts, without any particular application or use in view.

Applied research:

Applied research is also original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific practical aim or objective.

Experimental development:

Experimental development is systematic work, drawing on existing knowledge gained from research and/or practical experience, that is directed to producing new materials, products or

devices, installing new processes, systems and services, or improving substantially those already produced or installed.

Question No: 31 ( Marks: 5 )

Mr. Mansoor is a finance manager of a firm. He is asked to prepare a financial ratio analysis. What can be the possible limitations of his analysis?

Financial ratio analysis is not without some limitations. First of all, financial ratios are based on accounting data, and firms differ in their treatment of such items as depreciation, inventory valuation, research and development expenditures, pension plan costs, mergers, and taxes. Also, seasonal factors can influence comparative ratios. Therefore, conformity to industry composite ratios does not establish with certainty that a firm is performing normally or that it is well managed. Likewise, departures from industry averages do not always indicate that a firm is doing especially well or badly. Page#67

Question No: 41 ( Marks: 5 )

A good mission statement should include “Customer orientation”, what does it mean? Explain it with the help of simple examples.

Customer orientation definition: customer orientation is a set of activities undertaken by a company for the purpose of supporting beliefs in sales that allow considering customer needs and satisfaction as the major priorities of the company. Read the customer orientation template to find out how to undertake and maintain customer oriented processes in your organization.

Example:

This is the way AT&T’s mission statement focuses on communication rather than telephones and ONGC’s mission statement focuses on energy rather than oil and gas page#24

Question No: 42 ( Marks: 5 )

What are strengths and weaknesses of an organization? Explain with the help of examples.

The strengths and weaknesses internal to the organization we can define as:

Strengths: characteristics of the business or team that give it an advantage over others in the industry. Examples: As far as organizations go, strengths can include a known brand name and reputation, good quality service or products, a strong management team, and a strong sales staff.

An individual can have strengths with a good word-of-mouth reputation and strong experience in an area of knowledge.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

EXAMPLES.

* Poor quality goods or services.

* Damaged reputation.

* Undifferentiated products or services (i.e. in relation to your competitors).

Question No: 41 ( Marks: 5 )

Critically analyze this statement, “Internal audit provides more opportunity for participants

to understand how their jobs, departments, and divisions fit into the whole organization than the external audit”.

an internal audit provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization. This is a great benefit because managers and employees perform better when they understand how their work affects other areas and activities of the firm. For example, when marketing and manufacturing managers jointly discuss issues related to internal strengths and weaknesses, they gain a better appreciation of issues, problems, concerns, and needs in all the functional areas. PAGE#50

Question No: 42 ( Marks: 5 )

What are strategies? Discuss their significance for an organization.

Definitions :

 Strategy refers to a plan of action designed to achieve a particular goal.

 Alternative chosen to make happen a desired future, such as achievement of a goal or solution to a problem.

significance for an organization:

 Strategy is more important than ever, particularly for organizations that want to differentiate themselves from others.

 The core aspects of strategies are to sustain a competitive advantage on other organizations

 Managers are at all time should be involved in implementing the set strategies.

 Strategic implementation entails the transformation of an organization strategies plan into action and ultimately into a result

 It increase its capacity to compete on the basis of its intellectual competencies

Question No: 41 ( Marks: 5 )

If CPM matrix reveals total weighted score of

_ A is 2.50

_ B is 1.50

_ C is 3.24

From above given data, how would you interpret the total weighted score of each firm and compare firm B with firm A and firm C.

B is the weakest firm as compared to A and c (for more detail see page#46)

Question No: 42 __ ( Marks: 5 )

Staffing is one of the functions of managers. Enlist and describe any five basic activities to be performed under the faction of staffing?

Staffing activities are centered on personnel or human resource management. Included are wage

and salary administration, employee benefits, interviewing, hiring, firing, training, management development, employee safety, affirmative action, equal employment opportunity, union relations, career development, personnel research, discipline policies, grievance procedures, and public relations page#53

Question No: 41 ( Marks: 5 )

“Strategists today must possess skills to deal more legalistically and politically than

Previous strategists”. Elaborate this statement?

Strategists today must possess skills to deal more legalistically and politically than previous strategists, whose attention was directed more too economic and technical affairs of the firm.

Strategists today are spending more time anticipating and influencing public policy actions. They spend more time meeting with government officials, attending hearings and government sponsored conferences, giving public speeches, and meeting with trade groups, industry associations, and government agency directors. Before entering or expanding international operations, strategists need a good understanding of the political and decision-makings processes

in countries where their firm may conduct business. For example, republics that made up the formerSoviet Uniondiffer greatly in wealth, resources, language, and lifestyle. Page#36

Question No: 42 ( Marks: 5 )

Explain any two intensive strategies with examples?

Product Development:

Developing and modifying new products and offering to the existing market is called product development strategy

Example: Google develop a new browser Chrome for the existing internet user

Market development:

Developing a new market for the existing company product is called market development strategy. It involves introducing present products or services into new geographic areas.

EXAMPLE:Pakistanstate oil (PSO) developing new market by exporting oil toAfghanistan

Page#90

http://en.wikipedia.org/wiki/Capacity_planning

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24 Nov 2011

Mgt613 Production And Operation Management Solved Mid Term Papers

Paper 1

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

Which ONE of the following statements correctly explains the role of operation’s

manager?

To coordinate the activities between marketing and finance department

To sustain, protect and project the company’s long term strategies

To develop organizational strategy that reflects the operational strategy

To sustain, protect and project the company’s operation/production side

. (page 1)Whether profit or non profit, the role of an OPERATIONS MANAGER is

to sustain, protect, and project the company’s operations side.

Question No: 2 ( Marks: 1 ) – Please choose one

What would be the productivity if a machine produced 50 units in 3 hours?

0.066 units per hr

16.66 units per hr

6.766 units per hr

60.66 units per hr

50 /3 = 16.66

Question No: 3 ( Marks: 1 ) – Please choose one

Operations manager is responsible for all of the following EXCEPT:

Forecasting

Capacity planning

Inventory management

Distributing organizations’ goods

Operations Managers job responsibility includes but is not limited to (page 3)

Ø Forecasting

Ø Capacity planning

Ø Scheduling

Inventory Management

Ø Quality Assurance and Control

Ø Motivating employees

Ø Deciding where to locate facilities

Question No: 4 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

(Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

(Quality + Speed – Cost) / Flexibility

(Quality + Speed+ Cost) / Flexibility

Question No: 5 ( Marks: 1 ) – Please choose one

Which one the following formula or function can be used to measure the

performance?

Flexibility + profit+ operations

Work + profit + value

Quality + speed + flexibility

Profit + Incentives + standards

Question No: 6 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

Survival, profitability, growth rate and market share

Profitability, survival, leads times and target market

Quality, operating resources, growth rate and market share

Scheduling, profitability, lead times and survival

Question No: 7 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s services

that cause it to be perceived as better than the competitors services

Order winners are the criteria that differentiate the products and services of the

firm from others’. These are the characteristics of an organization’s goods or

services that cause it to be perceived as better than competitors’ products

Question No: 8 ( Marks: 1 ) – Please choose one

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time dimension

·Operations strategy – The approach, consistent with organization strategy that is

used to guide the operations function page#14

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the elements of a good forecast?

Timely, having a purpose, accurate, written, reliable, meaningful

Timely, accurate, judgmental, correctness, verbal, simple to use

Timely, accurate, reliable, meaningful, written, simple to use

Timely, accurate, reliable, consistent, meaningful, written, simple to use

(Handout Page 34) Timely, Reliable, Accuracy, Meaningful Forecast,

Written/Documented, Simple to understand and use

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the qualitative forecasting technique?

It consists mainly of numerical descriptions and defies subjective inputs of managers.

It consists mainly of subjective inputs and defies particular numerical descriptions.

It consists mainly of subjective inputs and defies human factor, personal opinions.

It consists mainly of analyzing objective and hard data and defies human factor, opinion.

(page 34)Qualitative Techniques which use subjective inputs and no numerical data.

It relies solely on soft information like human factors, personal opinion, hunches.

Thus Qualitative Forecasts are often biased and tilted towards what the

management wants to predict.

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the quantitative forecasting technique?

It consists mainly of numerical descriptions and resists subjective inputs of

managers.

It consists mainly of subjective inputs and resists particular numerical descriptions.

It consists mainly of subjective inputs and resist human factor, personal opinions.

It consists mainly of analyzing objective and hard data and resist human factor,

opinion.

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to

predict future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

(page 35)Associative models – uses explanatory variables to predict the future for

example demand for a small car may be dependant upon increase in price of petrol

or CNG. The analysis in this case would employ a mathematical model that would

relate the predicted variable with the predictor variable or variables.

Question No: 13 ( Marks: 1 ) – Please choose one

Given the table:

Alternatives Possible future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMAX approach?

Rs. 10,000

Rs. 18,000

Rs. 20,000

Rs. 32,000

(reference ) Example

The maximax criterion (an optimistic approach):

1. For each option, find the maximum payoff

2. Choose the option with the greatest maximum payoff

Profit in $1,000’s

(States of Nature)

Investment

Choice

(Alternatives)

Strong

Economy

Stable

Economy

Weak

Economy

Large factory

Average factory

Small factory

200

120

-120

-30

Maximum profit

large factory

Maximum profit

200

average factory

Maximum profit

small factory

120

Greatest maximum is to chosen large factory

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

However, traditional moving averages have one very serious deficiency. They are a

‘lagging’ technical indicator. This means that moving averages, due to their

mathematical construction (averaging prices over a number of prior periods) tend

to lag behind the current market price.

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to design

capacity?

Utilization

Efficiency

Effective capacity

Effectiveness

(Handout page 66) Efficiency and Utilization Example

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute

utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

(Handout page 66) Efficiency and Utilization Example

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to more predictable

behavior in terms of capacity requirements?

Introduction

Growth

Maturity (not sure )

Decline

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following statement is TRUE about cost-volume relationship?

It represents the relationship between cost, revenue and volume of output.

It represents the relationship between cost and volume of output.

It represents the relationship between cost and revenue.

It represents the relationship between inputs, cost and volume of output.

(handout page 73)Cost Volume Relationship focuses on relationships between costs, revenue

and volume of output

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute break even point?

Q = VC / (R – VC)

Q = FC / (R – VC)

Q = VC / (R + FC)

Q = FC / (R + VC)

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is a characteristic of continuous process?

High lead times

Short process times

The ability to handle high variety

The ability to handle high volumes

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following refers the way an organization chooses to produce its good or

services?

Process selection

Process reengineering

Process redesign

Process design

(page 77). Process Selection refers to the way an organization chooses to produce its good

or services

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following best describes the cellular layout?

It groups machines into departments according to their function.

It groups machines into small assembly lines that produce families of parts.

It allows production of larger lots by reducing set-up time.

It encourages the use of large, efficient machinery.

(page 83)Cellular Production

– Layout in which machines are grouped into a cell that can process items that have

similar processing requirements.

Group Technology

– The grouping into part families of items with similar design or

manufacturing

characteristics.

Question No: 23 ( Marks: 1 ) – Please choose one

Which one of the following statements is NOT correct about cycle time?

It represents daily operating time divided by desired production

It is the maximum allowable time at each work station

It determines the time often items take to roll off in assembly line

It is the time required to complete a product from start to finish

(Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

Fixed position layout

Process layout

Product layout

Cellular layout

Question No: 25 ( Marks: 1 ) – Please choose one

What would be the required cycle time for a process that operates 9 hours daily with a

desired output of 300 units per day?

0.03 minutes

1.8 minutes

2700 minutes

291 minutes

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following defines the range of the smoothing constant (Alpha)?

2 and -2

1 and -1

0 and -1

0 and 1

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

Functional design

Production design

Service design

Product design

Product design (i.e., industrial design) is perhaps most associated with aesthetic

considerations (Bel Geddes 1934, pp. 222-241)

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following refers to using some of the components of old products in

the

manufacturing of new products?

Manufacturability

Remanufacturing

Robust design

Automation

(Handout page 51) Design for Remanufacturing: Using some of the components of

the old products in the manufacture of new products.

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions can be used to compute

availability?

(MTBF)/ (MTBF+MTR)

(MTBF)/ (MTBF-MTR)

(MTR)/ (MTBF+MTR)

(MTR)/ (MTBF-MTR)

(page 63 )Availability = (MTBF)/(MTBF + MTR)

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is correct about the range of availability on a measuring

index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

(page23)http://books.google.com/books?id=818wT_TGJgAC&pg=PA23&dq=range

+of+availability+on+a+measuring+index&hl=en&ei=BcmMTbzCFdDirAfIprTQD

Q&sa=X&oi=book_result&ct=result&resnum=4&ved=0CDoQ6AEwAw#v=onepag

e&q&f=false

Question No: 31 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for 300

hours between repairs, and the mean repair time is expected to be 2 hours?

6.02

2.0

0.99

0.006

we represent mean time between failures by MTBF and mean time to repair by

MTR

Availability = (MTBF)/(MTBF + MTR)

= 300/ 300+2

= 0.99

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following operating levels is best with respect to capacity?

The maximum point of the cost curve

The level of capacity for which average unit cost is minimized

The level of capacity for which average unit cost is maximized

The level of capacity for which total cost is minimized

(page463)

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of work sampling?

Individual human motions that are used in a job task

Determining the length of time it will take to undertake a particular task

Determining the amount of time a worker spends on various activities

Specifying the content and methods to perform a job

Question No: 34 ( Marks: 1 ) – Please choose one

The advantages of specialization to management include all of the following

EXCEPT:

Rapid training of the workforce

Ease in recruiting new workers

Fewer turnovers

Less boredom for workers

Question No: 35 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More difficult to teach the job

Question No: 36 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

(page 31)·Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more

Question No: 37 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

Customers typically interact directly with the service delivery process.

Consumption and production take place simultaneously.

Services are intangible.

Services can be stored.

Question No: 38 ( Marks: 1 ) – Please choose one

All of the following are examples of the transformation process EXCEPT:

Cutting

Packing

Facilitating

Labeling (not sure )

Question No: 39 ( Marks: 1 ) – Please choose one

Which one of the following represents the series of a time forecast?

Averaging, cycle, seasonality, random variations

Trend, seasonality, exponential smoothing

Trend, cycle, seasonality, moving average

Trend, cycle, seasonality, random variations

(

Question No: 40 ( Marks: 1 ) – Please choose one

Which of the following is a characteristic of linear regression?

It is superior to a moving average

It is a causal forecasting model

It compensates for both trend and seasonal variations in demand

It is superior to an exponential smoothing

Paper 2

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Question No: 1 ( Marks: 1 ) – Please choose one

Who developed the use of standardization in large-scale mass production using a

moving assembly line?

Frederick Winslow Taylor

Frank Gilbreth

Adam Smith

Henry Ford

Question No: 2 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term

management decision?

Control decision

Non-operational decision

Strategic decision

Tactical decision

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

Capital

Energy

Labor

Machine

Labor Productivity

Units of output per labor hour

Units of output per shift

Value-added per labor hour

Question No: 4 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar

input?

Capital

Energy

Labor

Machine

Capital Productivity Units of output per Rs. Input Dollar value of output per Rs. input

Question No: 5 ( Marks: 1 ) – Please choose one

Operations manager is responsible for all of the following EXCEPT:

Forecasting

Capacity planning

Inventory management

Distributing organizations’ goods

Operations Managers job responsibility includes but is not limited to (page 3)

Ø Forecasting

Ø Capacity planning

Ø Scheduling

Inventory Management

Ø Quality Assurance and Control

Ø Motivating employees

Ø Deciding where to locate facilities

Question No: 6 ( Marks: 1 ) – Please choose one

Which of the following is NOT usually considered a general characteristic of a

service?

Production and sales cannot easily be separated functionally

Many services involve both tangible and intangible outputs

Production and consumption can always be separated

Degree of customer contact is high

Question No: 7 ( Marks: 1 ) – Please choose one

Which of the following is NOT a decision to be made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 8 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

Are specific to the operations function

Are specific to the marketing function

Are interdependent with other processes

Have exactly the same performance measures for any process

A process is a sequence of related activities, or may be a sequence of related

tasks which make up an activity. These activities or tasks are usually

interdependent, and there is a well-defined flow from one activity to another or

from one task to another.

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

(Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

(Quality + Speed – Cost) / Flexibility

(Quality + Speed+ Cost) / Flexibility

Question No: 10 ( Marks: 1 ) – Please choose one

Which of the following refers to the essential elements of operations strategy?

Policies, tactics and objectives

Plans, strategies and vision

Mission, goals and plans

Mission, policies and distinctive competencies

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the qualitative forecasting technique?

It consists mainly of numerical descriptions and defies subjective inputs of

managers.

It consists mainly of subjective inputs and defies particular numerical

descriptions.

It consists mainly of subjective inputs and defies human factor, personal

opinions.

It consists mainly of analyzing objective and hard data and defies human factor,

opinion.

Qualitative Techniques which use subjective inputs and no numerical data. It relies

solely on soft information like human factors, personal opinion, hunches. Thus

Qualitative Forecasts are often biased and tilted towards what the management

wants to predict

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following approaches favors adopting a “go for it” strategy?

Maximin

Maximax

Minimax regret

Laplace

Maximax(page 26)

􀀀 Maximax determines

􀀀 the best possible outcome

􀀀 Choose the Alternative with the best possible payoff.

􀀀 It does not take into account any other alternative then the best payoff.

􀀀 An optimistic approach.

􀀀 Go for it strategy.

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximax?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Maximax(page 26)

􀀀 Maximax determines

􀀀 the best possible outcome

􀀀 Choose the Alternative with the best possible payoff.

􀀀 It does not take into account any other alternative then the best payoff.

􀀀 An optimistic approach.

􀀀 Go for it strategy

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

Ref:

However, traditional moving averages have one very serious deficiency. They are a

‘lagging’ technical indicator. This means that moving averages, due to their

mathematical construction (averaging prices over a number of prior periods) tend

to lag behind the current market price.

Question No: 15 ( Marks: 1 ) – Please choose one

Which of the following is a technique that averages a number of recent actual values

that are updated as new values become available?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

(Handout page 37)Moving average – A technique that averages a number of recent

actual values, updated as new values become available.

Question No: 16 ( Marks: 1 ) – Please choose one

A workers strike represents which of the following behaviors of a time series?

Cycle

Trend

Seasonality

Irregular variations

(page 37)Irregular variations - caused by unusual circumstances such as severe weathers,

earthquakes, worker strikes, or major change in product or service. They do not capture or

reflect the true behavior of a variable and can distort the overall picture. These should be

identified and removed from the data.

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following is called as the difference between designed and utilized

capacity?

Design capacity (not sure )

Effective capacity

Buffer capacity

Utilization rate

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to

design capacity?

Utilization

Efficiency

Effective capacity

Effectiveness

(Handout page 66) Efficiency and Utilization Example

Question No: 19 ( Marks: 1 ) – Please choose one

The formula for determining the required cycle time is operation time per day

divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

(Handout page 85) cycle time = OT/ D

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions can be used to compute output

capacity?

OT/CT

CT/OT

CT+OT

CT-OT

(page 85)If OC is the Output capacity, OT is the operating Time and CT is

the Cycle time then output capacity = OT/CT

Question No: 22 ( Marks: 1 ) – Please choose one

What would be the output capacity if an assembly line operates for 7 hours per day

with a cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

output capacity = OT/CT

= 7/2.0

= 3.5

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that past

data is more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast

Naive forecast

Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following ensures that the design meets the performance

characteristics that are specified in the product concept?

Functional design

Production design

Service design

Product design

Question No: 25 ( Marks: 1 ) – Please choose one

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

(page 46)CBR denotes Center Board of Revenue

Question No: 26 ( Marks: 1 ) – Please choose one

In order to comply with the environmental standards, an organization ABC has to

implement Occupational Safety Hygiene Administration (OSHA).Which one of the

following is a way to accomplish this task?

Promoting friendly relations among employees

Installing safety guards and devices to reduce the risk of potential accidents

Installing machinery to make the process speedy

Installing machinery that provides cost effective output

(Handout page 46)

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Question No: 28 ( Marks: 1 ) – Please choose one

Which of the following refers to translate the voice of the customer into technical

design requirements?

Concurrent design

Design for manufacture

Robust design

Quality functional deployment

Question No: 29 ( Marks: 1 ) – Please choose one

A product ‘A’ is specified to work well up to 30 degree Celsius temperature and

30% humidity. What would these specifications represent?

Reliability factor

Standard conditions

Normal operating conditions

Standard operating procedure

Question No: 30 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

350 hours between repairs, and the mean repair time is expected to be 3 hours?

0.99

1.0

3.0

7.03

Availability = (MTBF)/(MTBF + MTR)

350/353 = 0.99

Question No: 31 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

300 hours between repairs, and the mean repair time is expected to be 2 hours?

6.02

2.0

0.99

0.006

Question No: 32 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

Top-level management

* Require an extensive knowledge of management roles and skills.

* They have to be very aware of external factors such as markets.

* Their decisions are generally of a long-term nature

* Their decisions are made using analytic, directive, conceptual and/or

behavioral/participative processes

* They are responsible for strategic decisions.

* They have to chalk out the plan and see that plan may be effective in the future.

* They are executive in nature.

Question No: 33 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

(Handout page 64)

What kind of capacity is needed?

2. How much is needed?

3. When is it needed?

Question No: 34 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnover

More difficult to teach the job

Question No: 35 ( Marks: 1 ) – Please choose one

Which of the following can be used to compute standard time?

Multiplying the elemental average time by the rating factor

Dividing the average elemental time by the rating factor

Multiplying the normal cycle time by the rating factor

Multiplying the normal cycle time by one plus the allowance factor

(page 92)Standard Time=ST=NT X AF is the normal time plus allowance for delays like (

getting a glass of water or going to the washroom human needs)

Question No: 36 ( Marks: 1 ) – Please choose one

Which one of the following is an example of community factors that affect location

decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

(page 96)Community Considerations

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Question No: 37 ( Marks: 1 ) – Please choose one

Which one of the following statements is true about Occupational Safety Hygiene

Administration (OSHA)?

To safeguard against potential hazards

To develop cost effective processes

To implement legal standards

To carry out implication of manufacturability and fitness

Question No: 38 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

(page 31)A statement about the future value of a variable of interest such as resource

requirements, capacity planning, SCM and product or service demand.

Question No: 39 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

Customers typically interact directly with the service delivery process.

Consumption and production take place simultaneously.

Services are intangible.

Services can be stored.

Question No: 40 ( Marks: 1 ) – Please choose one

Forecasting for groups tend to be more accurate than forecasting for individual

items because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

(page 33) Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals.

Paper 3

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term

management decision?

Control decision

Non-operational decision

Strategic decision

Tactical decision

Question No: 2 ( Marks: 1 ) – Please choose one

What would be the productivity if 9 workers installed 650 square yards of carpeting

in 6 hours?

12.03 square yards/hr

72.20 square yards/hr

108.30 square yards/hr

5850 square yards/hr

productivity = 650/ 9*6 = 12.03

(reference) ]

OPERATIONS STRATEGY

E.g. 4 workers installed 720 square yards of carpeting in 8 hours.

Productivity = 720/(4*8) = 22.5 yards/hour

Question No: 3 ( Marks: 1 ) – Please choose one

All of the following are the decision areas of an operations manager EXCEPT:

Financial reporting

Inventory management

Scheduling tasks

Supply chain management

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s

services that cause it to be perceived as better than the competitors services

Question No: 5 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the elements of a good forecast?

Timely, having a purpose, accurate, written, reliable, meaningful

Timely, accurate, judgmental, correctness, verbal, simple to use

Timely, accurate, reliable, meaningful, written, simple to use

Timely, accurate, reliable, consistent, meaningful, written, simple to use

(Handout page 34)

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the quantitative forecasting

technique?

It consists mainly of numerical descriptions and resist subjective inputs of

managers.

It consists mainly of subjective inputs and resist particular numerical descriptions.

It consists mainly of subjective inputs and resisit human factor, personal opinions.

It consists mainly of analyzing objective and hard data and resist human factor,

opinion.

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to

predict future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

(page 35)Associative models – uses explanatory variables to predict the future for

example demand for a small car may be dependant upon increase in price of petrol

or CNG. The analysis in this case would employ a mathematical model that would

relate the predicted variable with the predictor variable or variables

Question No: 8 ( Marks: 1 ) – Please choose one

Which one of the following involves completing a series of questionnaires each

developed from the previous one, to achieve a consensus forecast?

Consumer surveys

Executive opinion

Time series forecast

Delphi method

(page 35)Delphi method: Managers and staff complete a series of questionnaires,

each developed from the previous one, to achieve a consensus forecast

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

However, traditional moving averages have one very serious deficiency. They are a

‘lagging’ technical indicator. This means that moving averages, due to their

mathematical construction (averaging prices over a number of prior periods) tend

to lag behind the current market price.

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques is used to identify a trend when

data is neither growing nor declining rapidly and has no seasonal characteristics?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

Question No: 11 ( Marks: 1 ) – Please choose one

Effective capacity is influenced by all of the following factors EXCEPT:

Facilities

Product mix

Processes

Operations

(Handout page 66 and 67)

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to more predictable

behavior in terms of capacity requirements?

Introduction

Growth

Maturity

Decline

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following statement is TRUE about cost-volume relationship?

It represents the relationship between cost, revenue and volume of output.

It represents the relationship between cost and volume of output.

It represents the relationship between cost and revenue.

It represents the relationship between inputs, cost and volume of output.

(page 73)Cost Volume Relationship focuses on relationships between costs, revenue and

volume of output

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following refers to the volume of output at which total cost equals

total revenue?

Optimal operating rate

Break even point

Feasible volume

Utilization

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following manufacturing process is associated with high volume

car manufacture?

Job shop

Assembly line

Batch

Automation

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following statements is NOT correct about cycle time?

It represents daily operating time divided by desired production

It is the maximum allowable time at each work station

It determines the time often items take to roll off in assembly line

It is the time required to complete a product from start to finish

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

Question No: 18 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

Fixed position layout

Process layout

Product layout

Cellular layout

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

Fixed position layout

Process layout

Product layout

Hybrid layout

Product – Layout should suit to the nature of product and its method of production.

i.e. aircraft manufacturing and car manufacturing layouts will be different. Sales

also affects the layout.

Question No: 20 ( Marks: 1 ) – Please choose one

In which one of the following techniques, the least squares method models uses one

dependent and one or more independent variables?

Trend adjusted forecast

Simple moving average

Regression analysis

Exponential smoothing

Question No: 21 ( Marks: 1 ) – Please choose one

In exponential smoothing model, a denotes:

Smoothing constant

Actual forecast

Forecast error

Previous forecast

(Handout page 40)a = Alpha smoothing constant

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following is responsible for administering environmental issues

about product and service design?

Central Board Revenue

Environmental Protection Agency

Federal Drug Agency

Occupational Safety Hygiene Administration

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

Functional design

Production design

Service design

Product design

Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following ensures that the design meets the performance

characteristics that are specified in the product concept?

Functional design

Production design

Service design

Product design

(page51)

Question No: 25 ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

(Handout page 44)A good product/service design can ensure customer satisfaction,

quality and production costs

Question No: 26 ( Marks: 1 ) – Please choose one

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

Question No: 27 ( Marks: 1 ) – Please choose one

An automatic car wash is an example of which of the following?

Customized service

Batch processing

Intermittent processing

Standardized service

Standardized service implies that every customer or item processed receives

essentially the same service. An automatic car wash is a good example; each car,

regardless of how clean or dirty it is, receives the same service. Standardized

processes deliver standardized service or produce standardized goods.

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following statements relates to the final stage of product life cycle?

Improve reliability, and reduce production costs

Improve packaging, and reliability

Improve reliability, and reduce quality

Improve reliability, and reduce promotion costs

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following statements is TRUE about product life cycle?

It depicts demand of a product at various price levels

It depicts demand of a product with respect to time

It relates demand of a product to quality

It relates demand of a product to market share

Question No: 30 ( Marks: 1 ) – Please choose one

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Question No: 31 ( Marks: 1 ) – Please choose one

CPFR stands for which of the following?

Collaborative Promotion, Forecasting, and Replenishment

Collaborative Planning, Forecasting, and Reactivity

Co-operative Planning, Function, and Replenishment

Collaborative Planning, Forecasting, and Replenishment

(page 177)CPFR is an acronym derived from the first letters of the following phrase:

Collaborative Planning, Forecasting and Replenishment

Question No: 32 ( Marks: 1 ) – Please choose one

Forecasting accuracy has relation with time horizon.

Inverse

Linear

Direct

Parallel

(page 33)Forecast accuracy decreases as time horizon increases indicating it is safe to make

short range forecasts instead of long term forecasts. If you can recall we had talked about

Flexible and Agile Corporations in the past.

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is a key benefit of process plant strategy?

Economies of scale

Diseconomies of scale

Product variety

Task specialization

(page 369)

Question No: 34 ( Marks: 1 ) – Please choose one

Which one the following is an assumption of center of gravity method?

The quantity to be shipped is variable

The quantity to be shipped is fixed

The quantity carries no value

The quantity to be shipped should be extraordinarily high

The center of gravity method is used to determine the location of a single

distribution center that will minimize distribution costs. It treats distribution cost as

a linear function of the distance and the quantity shipped, which is assumed to be

fixed,

Question No: 35 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

(page 31)A statement about the future value of a variable of interest such as resource

requirements, capacity planning, SCM and product or service demand.

Question No: 36 ( Marks: 1 ) – Please choose one

The type of processing structure that is used for producing discrete products at

higher volume is:

Continuous Flow

Assembly Line

Batch

Job shop

Question No: 37 ( Marks: 1 ) – Please choose one

Quality, costs, lead times, operating resources are all related to which one of the

following strategies.

Organizational strategy

Financial strategy

Operational strategy

Tectical strategy

(page 5)

Question No: 38 ( Marks: 1 ) – Please choose one

The Strategies which are more focused on maintaining or improving the quality of

an organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

(page 18)Quality-based strategies

􀀀 Focuses on maintaining or improving the quality of an organization’s products or

services

Question No: 39 ( Marks: 1 ) – Please choose one

Which of the following is NOT an attribute to classify services?

Tangibility

Perishability

Simultaneity

Courtesy

Question No: 40 ( Marks: 1 ) – Please choose one

Forecasting for groups tend to be more accurate than forecasting for individual

items because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

(page 33) Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals

Paper 4

MIDTERM EXAMINATION

Spring 2009 MGT613- Production / Operation Management (Session – 2)

Question No: 1 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term

management decision?

►Control decision

►Non-operational decision

►Strategic decision

►Tactical decision

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar input?

►Capital

►Energy

►Labor

►Machine

Capital Productivity: Units of output per dollar input

Dollar value of output per dollar input

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following is a measure of productivity that involves

measuring inputs and outputs using a common unit of measurement?

►Multifactor

►Partial

►Single

►Total

OPERATIONS STRATEGY

Multifactor productivity measures require inputs and outputs using a common unit of

measurement, such as cost or value.

Question No: 4 ( Marks: 1 ) – Please choose one

The major business function consisting of research and development,

product design, manufacturing, marketing, distribution, and customer

service is refers to:

►Value chain

►The transformation process

►Quality control

►Life cycle

Question No: 5 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

►Are specific to the operations function

►Are specific to the marketing function

►Are interdependent with other processes

►Have exactly the same performance measures for any process

A process is a sequence of related activities, or may be a sequence of related tasks which make up an

activity. These activities or tasks are usually interdependent, and there is a well-defined flow from

one activity to another or from one task to another.

http://www.martymodell.com/pgsa2/pgsa13.html

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

►(Quality + Speed – Flexibility) / Cost

►(Quality + Speed+ Flexibility) / Cost

►(Quality + Speed – Cost) / Flexibility

►(Quality + Speed+ Cost) / Flexibility

(HANDOUT PAGE 10)

Question No: 7 ( Marks: 1 ) – Please choose one

Which one the following formula or function can be used to measure the performance?

► Flexibility + profit+ operations

►Work + profit + value

►Quality + speed + flexibility

►Profit + Incentives + standards

(HANDOUT PAGE 10)

Question No: 8 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

►A factor which may be significant in other parts of the organization

►A factor which gives an organization a competitive edge

►A factor which serves as a minimum standard for purchase

►A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s services

that cause it to be perceived as better than the competitors services.

Question No: 9 ( Marks: 1 ) – Please choose one

As a manager, you have defined the purpose of the forecasts. What

should be the next step in forecasting process?

►Choose a forecasting technique.

►Determine the purpose of the forecast.

►Set up a time horizon or a time limit.

►Collect and analyze the appropriate data.

(Handout page 34)

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following forecasting technique is based on historical data?

►Judgmental

►Associative

► Time series

► Qualitative

(page 35) · T ime series - uses historical data assuming the future will be like the

past and depend on developing relationships between variables that can be

expressed to predict future values.

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques use

subjective inputs su from consumer surveys, sales staff,

managers and experts?

►Time series

►Quantitative

►Judgmental

►Associative

(page 35) J udgmental - uses subjective inputs meaning that a judgmental forecast rely

on analysis of subjective inputs obtained from various sources, such as consumer surveys,

the sales staff, managers and executives, and panels of experts. These insights are not

available publicly.

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following approaches favors adopting a “go for it” strategy?

►Maximin

►Maximax

►Minimax regret

►Laplace

(Handout page 26)

Question No: 13 ( Marks: 1 ) – Please choose one

Possible future demand

Low (Rs.) High (Rs.)

10,000 8,000

12,000 20,000

18,000 15,000

Given the table:

Alternatives

Which one of the following is the correct payoff under MAXIMAX approach?

► Rs. 10,000

► Rs. 18,000

► Rs. 20,000

► Rs. 32,000

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a step of decision making process?

►Develop alternatives

►Monitor results

►Consider risk averseness strategies

►Specify criteria for decision

Ref: 1. Specify Objectives and the Criteria for decision making

2. Develop Alternatives

3. Analyze and compare alternatives.

4. Select the best alternative.

5. Implement the chosen Alternative

6. Monitor the results to ensure the desired results are achieved.

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to

more predictable behavior in terms of capacity requirements?

►Introduction

►Growth(not sure)

►Maturity

►Decline

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following statement is TRUE about cost-volume relationship?

►It represents the relationship between cost, revenue and volume of output.

►It represents the relationship between cost and volume of output.

►It represents the relationship between cost and revenue.

►It represents the relationship between inputs, cost and volume of output.

Ref: Cost Volume Relationship focuses on relationships between costs, revenue and

volume of output. (page 73)

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute break even point?

►Q = VC / (R – VC)

►Q = FC / (R – VC)

►Q = VC / (R + FC)

►Q = FC / (R + VC)

Question No: 18 ( Marks: 1 ) – Please choose one

ABC Corporation has planned to purchase a new machine. Total annual

fixed cost is Rs. 10,000, variable cost is Rs. 5 per unit and revenue is Rs. 7

per unit. What would be the break even point?

►833 units

►2000 units

►5000 units

►1012 units

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the

organization to proceed with a capacity alternative decision?

►Cash flow and fixed cost

►Present value and fixed cost

►Cash flow and present value

►Cash flow and profit

Ref: Operations manager along with managerial accountant often work to calculate

what cash flow or present value in terms of rupees is available for the organization

to proceed with a capacity alternative decision.(page 76)

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following is a system designed to coordinate all activities

and information needed to complete business processes?

►Enterprise resource planning

►Supply chain management

►New product development

►Customer relationship management

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following is NOT a characteristic of product layouts?

►High material handling costs

►Sequential arrangement of machines

►Standardized output

►Continuous production system

Ref: Lecture slide#19

1. High rate of output.

2. Low unit cost.

3. Labor specialization.

4. Low material handling cost.

5. High utilization of labor and equipment.

6. Established routing and scheduling.

7. Routing accounting and purchasing.

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

►Fixed position layout

►Process layout

►Product layout

►Hybrid layout

Question No: 23 ( Marks: 1 ) – Please choose one

In exponential smoothing model, a denotes:

►Smoothing constant

►Actual forecast

►Forecast error

►Previous forecast

(Handout page 40)= Alpha smoothing constant

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following designs resists modifications?

►Frozen design (review again)

►Product design

►Service design

►Robust design

(Page 48)

Question No: 25 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

►To test the robustness of a design

►To articulate the “voice of the customer”

►To reduce the degree of automation

►To create a concurrent design

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following refers to using some of the components of old

products in the manufacturing of new products?

►Manufacturability

►Remanufacturing

►Robust design

►Automation

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following is a curve showing failure rate over time?

►Cost curve

►Bath tub curve

►Fish bone diagram

►Reliability curve

(Page 59 and 60)

Question No: 28 ( Marks: 1 ) – Please choose one

ble to operate for 250

What would be the

availability if a carpe hours

between repairs, and the

mean rep?

►1.01

►5.03

►3.0

►0.98

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of method analysis?

► Dividing and analyzing a job

►Check individual human motions used to perform an operation

►Determining the length of time it will take to undertake a particular task

►Determining the amount of time a worker spends on various activities

(page 87)

Design of Work System also entails method analysis which in turn centers on how

jobs are performed.

(page 93)

Supplementary discussions focused on Method Analysis and Motion Study

Techniques, which focused on efficiency aspect of the job. This may ignore the

behavior aspect but still form an important and integral part of job design.

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is an example of regional factors that

affect location decisions?

►Transportation

►Quality of life

►Development support

►Location of new markets

(page 96)

Regional Factors

􀀀 Location of raw materials

􀀀 Location of markets

􀀀 Labor factors

􀀀 Climate and taxes

Question No: 31 ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors

that affect location decision?

►Transportation

►Quality of life

►Location of new markets

►Location of raw materials

(page 96)

•Land

•Transportation

•Environmental

•Legal

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following statements is true about Occupational

Safety Hygiene Administration (OSHA)?

►To safeguard against potential hazards

►To develop cost effective processes

►To implement legal standards

► To carry out implication of manufacturability and fitness

(page 46) OSHA refers to Occupational Safety Hygiene Administration

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is used to produce gasoline and petroleum products?

►Job shop

►Batch processing

►Assembly line

►Continuous processing

Continuous and Semi Continuous Operations

1. A system that produces highly uniform products or continuous services, often

performed by machines.

1. Processing of chemicals, photographic film, newsprint and oil products

2. Repetitive Processing. A production system that renders one or a few highly

standardized products or services.

1. Automobiles, televisions, computers ,calculators, cameras and video equipments

Question No: 34 ( Marks: 1 ) – Please choose one

The type of processing structure that is used for producing discrete

products at higher volume is:

►Continuous Flow

►Assembly Line

►Batch

►Job shop

Question No: 35 ( Marks: 1 ) – Please choose one

An example of a business/industry that uses batch flow process structure is:

►Commercial printer

►Heavy equipment

►Automobile assembly

►Sugar refinery

Question No: 36 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

►Customers typically interact directly with the service delivery process.

►Consumption and production take place simultaneously.

►Services are intangible.

►Services can be stored.

Question No: 37 ( Marks: 1 ) – Please choose one

Quality, costs, lead times, operating resources are all related to

which one of the following strategies.

►Organizational strategy

►Financial strategy

►Operational strategy

►Tectical strategy

Os is related to products, processes, methods, operating resources, quality, costs,

lead times, and scheduling.

Question No: 38 ( Marks: 1 ) – Please choose one

All of the following are examples of the transformation process EXCEPT:

►Cutting

►Packing

►Facilitating

►Labeling(not sure )

Question No: 39 ( Marks: 1 ) – Please choose one

___________ purpose is to coordinate and control all the required sources so that

productive system can be used efficiently and to ensure the delivery of product in time.

► Total quality control’s

►Demand management’s

►Forecasting’s

►Operations management’s

Question No: 40 ( Marks: 1 ) – Please choose one

Which of the following is a characteristic of linear regression?

It is superior to a moving average

► It is a causal forecasting model

► It compensates for both trend and season

► It is superior to an exponential smoothing

Paper 5

MIDTERM EXAMINATION

Spring 2010

MGT613- Production / Operations Management

Question No: 1 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term management

decision?

► Control decision

► Non-operational decision

► Strategic decision

► Tactical decision

Question No: 2 ( Marks: 1 ) – Please choose one

The management of systems or processes that creates goods and provides services is

known as:

► Operation Management

► Operation/production Management

► Operation/Research Management

► Production/Research Management

Page#3 perations Management (The management of systems or processes that create

goods and/or rovide services)

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following decision is NOT made by operations managers?

► How much capacity is required to balance demand?

► What should be the location and layout of a facility?

► How to improve operational efficiency?

► Which market areas to manufacture the products for?

Question No: 4 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

► Are specific to the operations function

► Are specific to the marketing function

► Are interdependent with other processes

► Have exactly the same performance measures for any process

Question No: 5 ( Marks: 1 ) – Please choose one

Which one the following formula or function can be used to measure the performance?

► Flexibility + profit+ operations

► Work + profit + value

► Quality + speed + flexibility

► Profit + Incentives + standards

Question No: 6 ( Marks: 1 ) – Please choose one

Which of the following statements describes an order-qualifier characteristic?

► A competitive dimension used to make final decision among competitors

► A factor which directly and significantly contribute to winning business

► A factor which increases the profitability of the organization

► A factor perceived as a minimum standard as a potential for purchase

Page#15

Order qualifiers are those significant characteristics that service customers perceive

as minimum standards of acceptability to be considered as a potential purchase

while order winners

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to predict

future demand?

► Associative forecast

► Time series forecast

► Consumer survey

► Executive opinion

Question No: 8 ( Marks: 1 ) – Please choose one

In which one of the following decision environments it is impossible to assess the

likelihood of various future events?

► Risk

► Bounded rationality

► Certainty

► Uncertainty

• Uncertainty – Environment in which it is impossible to assess the likelihood of

various future events

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is an implication oflaplaceapproach of decision making?

► The best of the worst possible payoff

► The best possible payoff

► The best average payoff

► The least of the worst regrets

Page#27 Determines the Average payoff for each alternative

Ø And chooses the alternative with the best average.

Ø This is a cautious approach

Ø Laplace approach treats the states of nature as equally likely.

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of MINIMAX regret?

► The best of the worst possible payoff

► The best possible payoff

► The best average payoff

► The least of the worst regret

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

► The forecast lags behind the actual

► The forecast represents demand more accurately

► The forecast will not be accurate

► The forecast will not be reliable

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following refers to the maximum output that a firm can produce under

ideal conditions?

► Design capacity (not sure)

► Effective capacity

► Capacity planning

► Utilization rate

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following is a characteristic of continuous process?

► High lead times

► Short process times

► The ability to handle high variety

► The ability to handle high volumes

Question No: 14 ( Marks: 1 ) – Please choose one

Which of the following is an example of a business that uses assembly line process

structure?

► Automobile assembly

► Sugar refinery

► Heavy equipment

► French restaurants

Assembly line – Example: automobile production line

A good example of an assembly line is an automobile plant.

Question No: 15 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

► Fixed position layout

► Process layout

► Product layout

► Cellular layout

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

► Fixed position layout

► Process layout

► Product layout

► Hybrid layout

Question No: 17 ( Marks: 1 ) – Please choose one

A department store discovered that in a four-month period, the best forecast can be

determined by using 50 percent of the sales for the most recent month, 20 percent of the

sales of two months ago, 10 percent of the sales of three months ago, and 20 percent of

the sales of four months ago. Which forecasting method should the store use to forecast

demand?

► Simple Moving Average

► Linear Regression

► Time Series Analysis

► Weighted Moving Average

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is an application of simple exponential smoothing?

► Establishing durability

► Finding reliability

► Scheduling services

► Quality improvement

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the product?

► Functional design

► Production design

► Service design

► Product design

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following statements is TRUE about product life cycle?

► It depicts demand of a product at various price levels

► It depicts demand of a product with respect to time

► It relates demand of a product to quality

► It relates demand of a product to market share

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

► To test the robustness of a design

► To articulate the “voice of the customer”

► To reduce the degree of automation

► To create a concurrent design

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following is a curve showing failure rate over time?

► Cost curve

► Bath tub curve

► Fish bone diagram

► Reliability curve

(Handout page 60)

Question No: 23 ( Marks: 1 ) – Please choose one

Which of following statement is true about effective capacity?

► It is the actual output achieved

► It is always less than actual output

► It is the maximum output that a firm can produce

► It is always less than designed capacity

(page 249)

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following is used to produce gasoline and petroleum products?

► Job shop

► Batch processing

► Assembly line

► Continuous processing

Question No: 25 ( Marks: 1 ) – Please choose one

Quality, costs, lead times, operating resources are all related to which one of the

following strategies.

► Organizational strategy

► Financial strategy

► Operational strategy

► Tectical strategy

Os is related to products, processes, methods, operating resources, quality,

costs, lead times, and scheduling.

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase.

► Reverse engineering

► Concurrent engineering

► Manufacturability

► Serviceability

(Handout page 53) Concurrent engineering is the bringing together of engineering design

and manufacturing personnel early in the design phase.

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following refers to the way an organization chooses to produce its goods or

services?

► Process selection

► Process reengineering

► Process redesign

► Process design

(page 77) Process Selection refers to the way an organization chooses to produce its

good or services

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following is the first step in line balancing?

► To specify the sequential relationship among tasks.

► To determine the required cycle time.

► To determine the minimum number of workstations.

► To determine the desired output

Paper 6

MIDTERM EXAMINATION Spring 2010

MGT613- Production and operation management (Session – 3)

Question No: 1 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

► Capital

► Energy

► Labor

► Machine

Page#19 Labor Productivity Units of output per shift

Question No: 2 ( Marks: 1 ) – Please choose one

All of the following are the decision areas of an operations manager EXCEPT:

► Inventory management

► Scheduling tasks

► Supply chain management

► Financial reporting

http://wiki.answers.com/Q/What_are_Operations_management_decisions

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

► (Quality + Speed – Flexibility) / Cost

► (Quality + Speed+ Flexibility) / Cost

► (Quality + Speed – Cost) / Flexibility

► (Quality + Speed+ Cost) / Flexibility

Value= Performance/Cost= (Quality +Speed+ Flexibility)/Cost_______ Eq. 1

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following refers to the essential elements of operations strategy?

► Policies, tactics and objectives

► Plans, strategies and vision

► Mission, goals and plans

►Mission, policies and distinctive competencies

Question No: 5 ( Marks: 1 ) – Please choose one

As a manager, you have defined the purpose of the forecasts. What should be

the next step in forecasting process?

► Choose a forecasting technique.

► Determine the purpose of the forecast.

► Set up a time horizon or a time limit.

► Collect and analyze the appropriate data.

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques is used to identify a trend when

data is neither growing nor declining rapidly and has no seasonal characteristics?

► Simple moving average

►Delphimethod

► Trend adjusted forecast

► Naïve forecast

Ref:The Moving Average model takes the average of several periods of

data; the result is a dampened or smoothed data set; use this model

when demand is stable and there is no evidence of a trend or seasonal

pattern.

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute utilization?

► Actual output / effective capacity

► Actual output / design capacity

► Actual output + effective capacity

► Actual output -effective capacity

Question No: 8 ( Marks: 1 ) – Please choose one

Effective capacity is influenced by all of the following factors EXCEPT:

► Facilities

► Product mix

► Processes

► Operations

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is concerned with short term capacity needs?

► Cycle

► Trends

► Seasonality

► Average

(page 76)Long term capacity decisions relate to overall level of capacity while short

term capacity decisions refer to seasonal, random or irregular variations in demand.

Question No: 10 ( Marks: 1 ) – Please choose one

Which of the following statements is correct about capacity evaluating alternatives?

► Minimum cost and optimal operating rate are functions of size of plant

► Minimum cost and optimal operating rate are functions of fixed cost.

► Minimum cost and productivity are functions of size of plant.

► Maximum cost and optimal operating rate are functions of size of plant.

(page 6)

Question No: 11 ( Marks: 1 ) – Please choose one

Which of the following is an example of a business that uses assembly line process

structure?

► Automobile assembly

► Sugar refinery

► Heavy equipment

► French restaurants

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

► Fixed position layout

► Process layout

► Product layout

► Cellular layout

(

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following defines the range of the smoothing constant (Alpha)?

► 2 and -2

► 1 and -1

► 0 and -1

► 0 and 1

The value of α can be between 0 and 1.

Question No: 14 ( Marks: 1 ) – Please choose one

Which method of forecasting is most widely used?

► Regression analysis

► Adaptive forecasting

► Weighted moving average

► Exponential smoothing

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following refers to a design that takes into account organization’s

operational capabilities, when designing a product?

► Design for assembly

► Design for manufacturing

► Design for recycling

► Design for disassembly

Page#51

Design for Manufacturing (DFM): The designers’ consideration of the

organization’s manufacturing capabilities when designing a product. The more

general term design for operations encompasses services as well as manufacturing

Question No: 16 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

300 hours between repairs, and the mean repair time is expected to be 2 hours?

► 6.02

► 2.0

► 0.99

► 0.006

Calculation: Availability = (MTBF)/(MTBF + MTR)

Where, MTBF = Mean time between factor =300

MTR = Mean repair time =2 hours

Availability = (300)/(300+2)

=300/302

= 0.99

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

► Lower management

► Middle management

► Top management

► Non managerial employees

Question No: 18 ( Marks: 1 ) – Please choose one

Which of the following is NOT an emerging trend in the workplace?

► Increasing workplace diversity

► Decreasing work schedule flexibility

► Increasing number of part time jobs

► Increasing use of temporary labor

http://highered.mcgrawhill.

com/sites/0072402857/student_view0/chapter10/multiple_choice_qui

z.html

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

► Budgeting

► Capacity planning

► Inventory management

► Quality control

Page#31 Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more.

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors that affect location

decision?

► Transportation

► Quality of life

► Location of new markets

► Location of raw materials

Ref: Site Related Factors

•Land

•Transportation

•Environmental

•Legal

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about work sampling?

► It describes individual human motions that are used in a job task

► It involves determining the length of time it will take to undertake a particular

task

► It involves determining the amount of time a worker spends on various

activities

► It provides standard times for micro motions such as reach, move and release

Reference

Question No: 22 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

► Customers typically interact directly with the service delivery process.

► Consumption and production take place simultaneously.

► Services are intangible.

► Services can be stored.

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following is NOT an attribute to classify services?

► Tangibility

► Perishability

► Simultaneity

► Courtesy

Question No: 24 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

► Survival, profitability, growth rate and market share

► Profitability, survival, lead times and target market

► Quality, operating resources, growth rate and market share

► Scheduling, profitability, lead times and survival

Question No: 25 ( Marks: 1 ) – Please choose one

The purpose of ___________ is to coordinate and control all the required sources so

that productive system can be used efficiently and to ensure the delivery of product

in time.

► Total quality control

► Demand management

► Forecasting

► Operations management

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following forecasting methods uses subjective inputs such as

opinions from consumer surveys, sales staff, managers and experts?

► Time series model

►Least Squaremethod

► Judgmental forecasting model

► Associative forecasting model

Page# 35 · Judgmental – uses subjective inputs meaning that a judgmental

forecast rely on analysis of subjective inputs obtained from various sources,

such as consumer surveys, the sales staff, managers and executives, and

panels of experts. These insights are not available publicly.

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following refers to translating the voice of the customer into

technical design requirements?

► Concurrent design

► Design for manufacture

► Robust design

► Quality function deployment

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following statements represents use of cost-volume analysis?

► It is a tool for reliability measurement

► It provides a base for marketing research

► It helps in comparing capacity alternatives

► It is important in product design

Page#73 Cost Volume Relationship focuses on relationships between costs, revenue

and volume of output. The primary purpose of cost volume analysis is to estimate

the income of an organization under different operating conditions. It is particularly

useful as a tool for comparing capacity alternatives.

Paper 7

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

Are specific to the operations function

Are specific to the marketing function

Are interdependent with other processes

Have exactly the same performance measures for any process

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

(Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

(Quality + Speed – Cost) / Flexibility

(Quality + Speed+ Cost) / Flexibility

Question No: 3 ( Marks: 1 ) – Please choose one

Which of the following is referred to as plans for achieving goals?

Rules

Strategies

Policies

Mission

(page 17)

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

Question No: 5 ( Marks: 1 ) – Please choose one

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time dimension

page#14 Operations strategy – The approach, consistent with organization strategy

that is used to guide the operations function

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following techniques uses historical data to predict future value of a

variable of interest?

Time series method

Causal forecasting method

Qualitative forecasting method

Intuitive forecasting method

(page 35)Time series - uses historical data assuming the future will be like the past and

depend on developing relationships between variables that can be expressed to predict

future values. future

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to predict

future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

(Handout page 35) Associative models - uses explanatory variables to predict the

future for example demand for a small car may be dependant upon increase in price of

petrol or CNG

Question No: 8 ( Marks: 1 ) – Please choose one

Which one of the following involves completing a series of questionnaires each

developed from the previous one, to achieve a consensus forecast?

Consumer surveys

Executive opinion

Time series forecast

Delphi method

(page 35) Managers and staff complete a series of questionnaires, each developed from

the previous one, to achieve a consensus forecast.

Question No: 9 ( Marks: 1 ) – Please choose one

In which one of the following situations, the use of a decision tree is required instead of a

payoff table?

When there are more than three states of nature

When there are more than three decision payoffs

When the decision situation encompasses an extended time period

When a series of decisions is required

If a decision situation requires a series of decisions, then a payoff table cannot be

created, and a decision tree becomes the best method for decision analysis.

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximin criterion?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

(page 55)

Question No: 11 ( Marks: 1 ) – Please choose one

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff underLAPLACEapproach?

Rs. 9,000

Rs. 16,000

Rs. 33,000

Rs. 16,500

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following is called as the difference between designed and utilized

capacity?

Design capacity( not sure )

Effective capacity

Buffer capacity

Utilization rate

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

(Handout page 66)

Question No: 14 ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the organization to

proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

(page 76)Capacity alternatives are often evaluated with the aid of certain financial

analyses. Operations manager along with managerial accountant often work to

calculate what cash flow or present value

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is the first step in line balancing?

Specify the sequential relationship among tasks.

Determine the required cycle time.

Determine the minimum number of workstations.

Determine the desired output

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

Fixed position layout

Process layout

Product layout

Hybrid layout

Product – Layout should suit to the nature of product and its method of

production. i.e. aircraft manufacturing and car manufacturing layouts will be

different. Sales also affects the layout.

Question No: 17 ( Marks: 1 ) – Please choose one

What would be the required cycle time for a process that operates 9 hours daily with a

desired output of 300 units per day?

0.03 minutes

1.8 minutes

2700 minutes

291 minutes

Question No: 18 ( Marks: 1 ) – Please choose one

What would be the output capacity if an assembly line operates for 7 hours per day with a

cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following probability distribution is used most extensively in dealing with

forecasting errors?

Normal

Exponential

Beta

Pareto

(question 10)http://highered.mcgrawhill.

com/sites/0072443901/student_view0/chapter3/self_quiz_from_cd.html

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the product?

Functional design

Production design

Service design

Product design

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

Page#44

A good product/service design can ensure customer satisfaction, quality and

production costs

Question No: 22 ( Marks: 1 ) – Please choose one

An automatic car wash is an example of which of the following?

Customized service

Batch processing

Intermittent processing

Standardized service

Standardized service implies that every customer or item processed receives

essentially the same service. An automatic car wash is a good example; each car,

regardless of how clean or dirty it is, receives the same service. Standardized

processes deliver standardized service or produce standardized goods.

http://highered.mcgraw-hill.com/sites/dl/free/0070911894/90584/2ndSampleCh4.pdf

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following is the most significant disadvantage of standardization?

Reduced design costs

Interchangeable parts

Reduced variety

Customized parts

Question No: 25 ( Marks: 1 ) – Please choose one

Product life cycle is based on which of the following components?

Place

Demand

Supply

Price

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following is the final stage of product life cycle?

Growth

Decline

Maturity

Planning

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following statements relates to the final stage of product life cycle?

Improve reliability, and reduce production costs

Improve packaging, and reliability

Improve reliability, and reduce quality

Improve reliability, and reduce promotion costs

Question No: 28 ( Marks: 1 ) – Please choose one

Which of the following refers to translate the voice of the customer into technical design

requirements?

Concurrent design

Design for manufacture

Robust design

Quality functional deployment

(page43)

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following is correct about the range of availability on a measuring

index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

Question No: 30 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for 250

hours between repairs, and the mean repair time is expected to be 3 hours?

1.01

5.03

3.0

0.98

Availability = (MTBF)/(MTBF + MTR)

Question No: 31 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

P–64

1. What kind of capacity is needed?

2. How much is needed?

3. When is it needed?

Question No: 32 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

(page 109)

Question No: 34 ( Marks: 1 ) – Please choose one

Which one of the following refers to the length of time needed to complete a job?

Work sampling methods

Work measurement

Job design

Methods analysis

(page 90) Work Measurement determines how long it should take to do a job.

Question No: 35 ( Marks: 1 ) – Please choose one

Which one of the following location strategies follows a decentralized approach?

Process plant strategy

Market area plant strategy

Cost conservation strategy

Product plant strategy

Question No: 36 ( Marks: 1 ) – Please choose one

Which one of the following location strategies is favored by automobile manufacturers?

Product plant strategy

Process plant strategy

Market area plant strategy

Cost conservation strategy

Question No: 37 ( Marks: 1 ) – Please choose one

Which of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase.

Reverse engineering

Concurrent engineering

Manufacturability

Serviceability

(Handout page 53) Concurrent engineering is the bringing together of engineering design

and manufacturing personnel early in the design phase.

Question No: 38 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

Question No: 39 ( Marks: 1 ) – Please choose one

Which of the following best describes the concept of the value chain?

The step-wise increases in product prices as raw materials are turned into goods/services

Adding financial value to an organization through the acquisition of other firms

A sequence of activities that involve movement of materials in a production facility

All steps in the transformation process that add value even if they don’t come from

manufacturing

Question No: 40 ( Marks: 1 ) – Please choose one

The Strategies which are more focused on maintaining or improving the quality of an

organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

Page#18 •Quality-based strategies

Ø Focuses on maintaining or improving the quality of an organization’s products or

services

Paper 8

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Question No: 1 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar input?

Capital

Energy

Labor

Machine

Question No: 2 ( Marks: 1 ) – Please choose one

What would be the productivity if a machine produced 50 units in 3 hours?

0.066 units per hr

16.66 units per hr

6.766 units per hr

60.66 units per hr

50/3=16.66

Question No: 3 ( Marks: 1 ) – Please choose one

The major business function consisting of research and development, product design,

manufacturing, marketing, distribution, and customer service is refers to:

Value chain

The transformation process

Quality control

Life cycle

Page#379

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following is NOT usually considered a general characteristic of a service?

Production and sales cannot easily be separated functionally

Many services involve both tangible and intangible outputs

Production and consumption can always be separated

Degree of customer contact is high

Question No: 5 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s services

that cause it to be perceived as better than the competitors services

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following is an implication ofLaplaceapproach of decision making?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Page#27

Determines the Average payoff for each alternative

Ø And chooses the alternative with the best average.

Ø This is a cautious approach

Ø Laplace approach treats the states of nature as equally likely

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximin criterion?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Question No: 8 ( Marks: 1 ) – Please choose one

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMIN approach?

Rs. 8,000

Rs. 12,000

Rs. 18,000

Rs. 20,000

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques is used to identify a trend when data is

neither growing nor declining rapidly and has no seasonal characteristics?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following refers to the maximum output that a firm can produce under

ideal conditions?

Design capacity

Effective capacity

Capacity planning

Utilization rate

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following perspectives is the most obvious to be considered while

evaluating alternatives for future capacity?

Social

Political

Economic

Legal

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the organization to

proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

(page 76)Capacity alternatives are often evaluated with the aid of certain financial

analyses. Operations manager along with managerial accountant often work to

calculate what cash flow or present value

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following manufacturing process is associated with high volume car

manufacture?

Job shop

Assembly line

Batch

Automation

Question No: 14 ( Marks: 1 ) – Please choose one

The formula for determining the required cycle time is operation time per day divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

Question No: 15 ( Marks: 1 ) – Please choose one

Assembly lines relate most closely to a:

Functional layout

Product layout

Process layout

Departmental layout

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that past data is

more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast (not sure )

Naive forecast

Question No: 18 ( Marks: 1 ) – Please choose one

In exponential smoothing model, a denotes:

Smoothing constant

Actual forecast

Forecast error

Previous forecast

Page#40

Exponential Smoothing Model

a = Alpha smoothing constant

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the product?

Functional design

Production design

Service design

Product design

Product design (i.e., industrial design) is perhaps most associated with aesthetic

considerations (Bel Geddes 1934, pp. 222-241).

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

Page#44.A good product/service design can ensure customer satisfaction, quality

and production costs

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following is the overall objective of product and service design?

Customer satisfaction and variety

Customer satisfaction and profitability

Reliability and variety

Quality and reliability

Page#44,Importance of Product/Service Design

Product/Service design plays a strategic role in helping an organization achieve its

goals. A good product/service design can ensure customer satisfaction, quality and

production costs

Question No: 22 ( Marks: 1 ) – Please choose one

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

Question No: 23 ( Marks: 1 ) – Please choose one

Which one of the following designs resists modifications?

Frozen design (not sure)

Product design

Service design

Robust design

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following is a curve showing failure rate over time?

Cost curve

Bath tub curve

Fish bone diagram

Reliability curve

Question No: 25 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

REF:

* Require an extensive knowledge of management roles and skills.

* They have to be very aware of external factors such as markets.

* Their decisions are generally of a long-term nature

* Their decisions are made using analytic, directive, conceptual and/or

behavioral/participative processes

http://en.wikipedia.org/wiki/Management

Question No: 26 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

Page#64

1.What kind of capacity is needed?

2. How much is needed?

3. When is it needed?

Question No: 27 ( Marks: 1 ) – Please choose one

The advantages of specialization to management include all of the following EXCEPT:

Rapid training of the workforce

Ease in recruiting new workers

Fewer turnovers

Less boredom for workers

Q#5

Question No: 28 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Q#6

Question No: 29 ( Marks: 1 ) – Please choose one

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Q#10

Question No: 30 ( Marks: 1 ) – Please choose one

Which of the following can be used to compute standard time?

Multiplying the elemental average time by the rating factor

Dividing the average elemental time by the rating factor

Multiplying the normal cycle time by the rating factor

Multiplying the normal cycle time by one plus the allowance factor

P#92, Standard Time=ST=NT X AF is the normal time plus allowance for delays

like ( getting a glass of water or going to the washroom human needs)

Question No: 31 ( Marks: 1 ) – Please choose one

Which one of the following is the focus of predetermined motion time system?

Individual human motions that are used in a job task

Determining the length of time it will take to undertake a particular task

Determining the amount of time a worker spends on various activities

Providing standard times for micro motions such as reach, move and release

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following is an example of community factors that affect location

decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96Community Considerations

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors that affect location

decision?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96

Site Related Factors

•Land

•Transportation

•Environmental

•Legal

Question No: 34 ( Marks: 1 ) – Please choose one

Which one of the following location strategies follows a decentralized approach?

Process plant strategy

Market area plant strategy

Cost conservation strategy

Product plant strategy

Question No: 35 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

(Handouts Page#31)And other ref:

For conventional goods, demand forecasts are used to set safety stock and

replenishment levels; to drive procurement, especially of long lead-time

items; to establish production plans; and as input to capacity and financial

planning processes. In services, demand forecasts are used primarily for

financial planning, capacity and workforce planning.

Question No: 36 ( Marks: 1 ) – Please choose one

Which of the following statements would generally be considered as correct job shop?

A continuous process has lower output volume as compared to job shop

Equipment flexibility is lower in job shop than that of a continuous process

Labour costs are higher in a Job Shop operation than in most other processes

Batch processing produces a more standard range of products than continuous flow

processes

Question No: 37 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about work sampling?

It describes individual human motions that are used in a job task

It involves determining the length of time it will take to undertake a particular task

It involves determining the amount of time a worker spends on various activities

It provides standard times for micro motions such as reach, move and release

Work Sampling is the statistical technique for determining the proportion of time

spent by workers in various defined categories of activity (e.g. setting up a machine,

assembling two parts, idle…etc

Question No: 38 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

Customers typically interact directly with the service delivery process.

Consumption and production take place simultaneously.

Services are intangible.

Services can be stored.

Question No: 39 ( Marks: 1 ) – Please choose one

___________ Purpose is to coordinate and control all the required sources so that

productive system can be used efficiently and to ensure the delivery of product in time.

Total quality control’s

Demand management’s

Forecasting’s

Operations management’s

Question No: 40 ( Marks: 1 ) – Please choose one

Forecasting for groups tend to be more accurate than forecasting for individual items

because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

Page#33·Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals.

Paper 9

MGT613 mid 2010

Question No: 1 ( Marks: 1 ) – Please choose one

Who developed the use of standardization in large-scale mass production using a

moving assembly line?

► Frederick Winslow Taylor

► Frank Gilbreth

► Adam Smith

► Henry Ford

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

► Capital

► Energy

► Labor

► Machine

Page#19 Labor Productivity: Units of output per shift

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar input?

► Capital

► Energy

► Labor

► Machine

Question No: 4 ( Marks: 1 ) – Please choose one

Which one of the following is a measure of productivity that involves measuring

inputs and outputs using a common unit of measurement?

► Multifactor

► Partial

► Single

► Total

Question No: 5 ( Marks: 1 ) – Please choose one

What would be the productivity if 9 workers installed 650 square yards of carpeting

in 6 hours?

► 12.03 square yards/hr

► 72.20 square yards/hr

► 108.30 square yards/hr

► 5850 square yards/hr

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

► (Quality + Speed – Flexibility) / Cost

► (Quality + Speed+ Flexibility) / Cost

► (Quality + Speed – Cost) / Flexibility

► (Quality + Speed+ Cost) / Flexibility

Question No: 7 ( Marks: 1 ) – Please choose one

All of the following are examples of quantitative forecasting EXCEPT:

► Delphi method

► Time series analysis

► Associative models

► Naïve forecasting

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

► The forecast lags behind the actual

► The forecast represents demand more accurately

► The forecast will not be accurate

► The forecast will not be reliable

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to

design capacity?

► Efficiency

► Effective capacity

► Effectiveness

► Utilization

Question No: 11 ( Marks: 1 ) – Please choose one

What would be the utilization, if 34 cars are produced in a day with a design capacity

of 50 cars per day?

► 68%

► 1.47%

► 84%

► 16%

Utilization = Actual Output/ Design Capacity

=34/50

68%

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to more predictable

behavior in terms of capacity requirements?

► Introduction

► Growth

► Maturity (not sure )

► Decline

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

► Fixed position layout

► Process layout

► Product layout

► Hybrid layout

Question No: 14 ( Marks: 1 ) – Please choose one

Which of the following probability distribution is used most extensively in dealing

with forecasting errors?

► Normal

► Exponential

► Beta

► Pareto

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is an application of simple exponential smoothing?

► Establishing durability

► Finding reliability

► Scheduling services

► Quality improvement

Question No: 16 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that past

data is more indicative of the future than the most recent occurrences?

► Naive forecast

► Exponential smoothing

► Linear regression

► Judgmental forecast (review again)

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

► Functional design

► Production design

► Service design

► Product design

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is the overall objective of product and service design?

► Customer satisfaction and variety

► Customer satisfaction and profitability

► Reliability and variety

► Quality and reliability

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following is the final stage of product life cycle?

► Growth

► Decline

► Maturity

► Planning

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of method analysis?

► Dividing and analyzing a job

► Check individual human motions used to perform an operation

► Determining the length of time it will take to undertake a particular task

► Determining the amount of time a worker spends on various activities

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following is the focus of predetermined motion time system?

► Individual human motions that are used in a job task

► Determining the length of time it will take to undertake a particular task

► Determining the amount of time a worker spends on various activities

► Providing standard times for micro motions such as reach, move and

release

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following location strategies follows a decentralized approach?

► Process plant strategy

► Market area plant strategy

► Cost conservation strategy

► Product plant strategy

Question No: 23 ( Marks: 1 ) – Please choose one

Which one of the following location strategies is favored by automobile

manufacturers?

► Product plant strategy

► Process plant strategy

► Market area plant strategy

► Cost conservation strategy

Reference (Page#369)

Question No: 24 ( Marks: 1 ) – Please choose one

In which of the following approaches location decision is based on personal opinions

and quantitative information?

► Factor rating

► Market area plant strategy

► Currency fluctuations

► Product plant strategy

Question No: 25 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about the importance of capacity planning?

► It is profitable

► It increase the capacity of productive unit

► It helps managers quantify production capability

► It establishes good relationship with the customer

Acts as a major determinant of initial costs. It is typical to see that greater the

capacity of a productive unit, greater would be the cost. (page 65)

Question No: 26 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

► Survival, profitability, growth rate and market share

► Profitability, survival, lead times and target market

► Quality, operating resources, growth rate and market share

► Scheduling, profitability, lead times and survival

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following forecasting methods uses subjective inputs such as

opinions from consumer surveys, sales staff, managers and experts?

► Time series model

►Least Squaremethod

► Judgmental forecasting model

► Associative forecasting model

Page# 35 · Judgmental – uses subjective inputs meaning that a judgmental

forecast rely on analysis of subjective inputs obtained from various sources,

such as consumer surveys, the sales staff, managers and executives, and

panels of experts. These insights are not available publicly.

Question No: 28 ( Marks: 1 ) – Please choose one

Transportation method helps in solving which of the following problems?

► Facility location problems

► Allocation of cost problems

► Workforce management problems

► Unfamiliar laws and regulaitons problems

Page#28 Transportation Method

Transportation Method is a quantitative approach that can help solve multiple

facility location problems.

Paper 10

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

A business process is a logical set of tasks or activities that:

Are specific to the operations function

Are specific to the marketing function

Are interdependent with other processes

Have exactly the same performance measures for any process

Which of the following is referred to as plans for achieving goals?

Rules

Strategies

Policies

Mission

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time dimension

Chapter 1, Heizer/Render, 5th edition

Operations strategy is the approach consistent with organization strategy that

is used to guide the operations function. It is narrower in scope, dealing with

the operations aspect of the organization

Which one of the following techniques uses historical data to predict future

value of a variable of interest?

Time series method

Causal forecasting method

Qualitative forecasting method

Intuitive forecasting method

􀀀􀀀T time series - uses historical data assuming the future will be like the past

and depend on developing relationships between variables that can be

expressed to predict future values. Some time series forecast try to smoothen

out random variations in historical data. There are some time series forecast

which identify specific patterns and then may even extrapolate those patterns

into the future.

Which one of the following forecasting techniques uses explanatory variables

to predict future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

Ref: • Associative models – uses explanatory variables to predict the future for

example demand for a small car may be dependant upon increase in price of

petrol or CNG. The analysis in this case would employ a mathematical model

that would relate the predicted variable with the predictor variable or

variables.

Which one of the following involves completing a series of questionnaires

each developed from the previous one, to achieve a consensus forecast?

Consumer surveys

Executive opinion

Time series forecast

Delphi method

􀀀Delphi method: Managers and staff complete a series of questionnaires, each

developed from the previous one, to achieve a consensus forecast.

In which one of the following situations, the use of a decision tree is required

instead of a payoff table?

When there are more than three states of nature

When there are more than three decision payoffs

When the decision situation encompasses an extended time period

When a series of decisions is required

Decision Trees A schematic representation of the alternatives and their possible

consequences is presented graphically. You can refer

􀀀 The diagram resembles a tree

􀀀 Extremely suitable for analyzing and evaluating situations which involve

sequential decisions

􀀀 Decision Trees

http://businessmanagementcourses.org/Lesson37DecisionTheory&DecisionTre

es.pdf

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under LAPLACE approach?

Rs. 9,000

Rs. 16,000

Rs. 33,000

Rs. 16,500

Which one of the following is called as the difference between designed and

utilizes capacity?

Design capacity(not sure)

Effective capacity

Buffer capacity

Utilization rate

Which one of the following mathematical expressions is used to compute

utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

Which one of the following is the first step in line balancing?

Specify the sequential relationship among tasks.

Determine the required cycle time.

Determine the minimum number of workstations.

Determine the desired output

What would be the required cycle time for a process that operates 9 hours daily

with a desired output of 300 units per day?

0.03 minutes

1.8 minutes

2700 minutes

291 minutes

What would be the output capacity if an assembly line operates for 7 hours per

day with a cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

OC = Output capacity = OT/CT

=7/2.0

=3.5

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

An automatic car wash is an example of which of the following?

Customized service

Batch processing

Intermittent processing

Standardized service

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Which one of the following is the most significant disadvantage of

standardization?

Reduced design costs

Interchangeable parts

Reduced variety

Customized parts

Product life cycle is based on which of the following components?

Place

Demand

Supply

Price

Which one of the following statements relates to the final stage of product life

cycle?

Improve reliability, and reduce production costs

Improve packaging, and reliability

Improve reliability, and reduce quality

Improve reliability, and reduce promotion costs

Which of the following refers to translate the voice of the customer into

technical design requirements?

Concurrent design

Design for manufacture

Robust design

Quality functional deployment

Which one of the following is correct about the range of availability on a

measuring index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

What would be the availability if a carpenter is expected to be able to operate

for 250 hours between repairs, and the mean repair time is expected to be 3

hours?

1.01

5.03

3.0

0.98

Which one of the following refers to a team having representatives from

different functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

Ref: Cross-functional systems were designed to integrate the activities of the

entire business process, and are called so because they ‘cross’ departmental

boundaries.

Which one of the following refers to the length of time needed to complete a

job?

Work sampling methods

Work measurement

Job design

Methods analysis

p—93 Work Measurement determines how long it should take to do a job.

Which of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase?

Reverse engineering

Concurrent engineering

Manufacturability

Serviceability

p#53 Concurrent engineering is the bringing together of engineering design and

manufacturing personnel early in the design phase.

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

Ref: For conventional goods, demand forecasts are used to set safety stock and

replenishment levels; to drive procurement, especially of long lead-time items;

to establish production plans; and as input to capacity and financial planning

processes. In services, demand forecasts are used primarily for financial

planning, capacity and workforce planning.

Which of the following best describes the concept of the value chain?

The step-wise increases in product prices as raw materials are turned into goods/services

Adding financial value to an organization through the acquisition of other firms

A sequence of activities that involve movement of materials in a production facility

All steps in the transformation process that add value even if they don’t come from

manufacturing

The Strategies which are more focused on maintaining or improving the

quality of an organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

p#18 􀀀Quality-based strategies

􀀀 focuses on maintaining or improving the quality of an organization’s

products or services

Paper 11

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 __ ( Marks: 1 ) – Please choose one

Which ONE of the following statements correctly explains the role of operation’s

manager?

To coordinate the activities between marketing and finance department

To sustain, protect and project the company’s long term strategies

To develop organizational strategy that reflects the operational strategy

To sustain, protect and project the company’s operation/production side

Question No: 2 __ ( Marks: 1 ) – Please choose one

Which one of the following decision is NOT made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 3 __ ( Marks: 1 ) – Please choose one

The major business function consisting of research and development, product

design, manufacturing, marketing, distribution, and customer service is refers to:

Value chain

The transformation process

Quality control

Life cycle

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following is referred to as plans for achieving goals?

Rules

Strategies

Policies

Mission

Question No: 5 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning

characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

Question No: 6 __ ( Marks: 1 ) – Please choose one

Which of the following statements describes an order-qualifier characteristic?

A competitive dimension used to make final decision among competitors

A factor which directly and significantly contribute to winning business

A factor which increases the profitability of the organization

A factor perceived as a minimum standard as a potential for purchase

Page#15 Order qualifiers are those significant characteristics that service customers

perceive as minimum standards of acceptability to be considered as a potential

purchase while order winners

Question No: 7 __ ( Marks: 1 ) – Please choose one

As a manager, you have defined the purpose of the forecasts. What should be

the next step in forecasting process?

Choose a forecasting technique.

Determine the purpose of the forecast.

Set up a time horizon or a time limit.

Collect and analyze the appropriate data.

(Handout page 34)

Question No: 8 __ ( Marks: 1 ) – Please choose one

Which one of the following techniques uses historical data to predict future value

of a variable of interest?

Time series method

Causal forecasting method

Qualitative forecasting method

Intuitive forecasting method

Question No: 9 __ ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques use subjective inputs such as

opinions from consumer surveys, sales staff, managers and experts?

Time series

Quantitative

Judgmental

Associative

(Handout page 35)

Question No: 10 __ ( Marks: 1 ) – Please choose one

Which of the following approaches favors adopting a “go for it” strategy?

Maximin

Maximax

Minimax regret

Laplace

(Handout page 26)

Question No: 11 ( Marks: 1 ) – Please choose one

In which one of the following situations, the use of a decision tree is required

instead of a payoff table?

When there are more than three states of nature

When there are more than three decision payoffs

When the decision situation encompasses an extended time period

When a series of decisions is required

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following reasons account for using moving average in

forecasting?

It eliminates the trend

It smoothes the random fluctuations

It counteracts the seasonal variations

It approximates the period average

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following refers to the maximum output that a firm can produce

under ideal conditions?

Design capacity

Effective capacity

Capacity planning

Utilization rate

Question No: 15 __ ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute

utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

(Handout page 66)

Question No: 16 ( Marks: 1 ) – Please choose one

What would be the utilization, if 40 cars are produced in a day with a design

capacity of 60 cars per day?

67%

20%

100%

150%

Actual output / design capacity

40/60 *100 = 67%

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following statements is correct about capacity evaluating

alternatives?

Minimum cost and optimal operating rate are functions of size of plant.

Minimum cost and optimal operating rate are functions of fixed cost.

Minimum cost and productivity are functions of size of plant.

Maximum cost and optimal operating rate are functions of size of plant.

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is the first step in line balancing?

Specify the sequential relationship among tasks.

Determine the required cycle time.

Determine the minimum number of workstations.

Determine the desired output

Question No: 19 ( Marks: 1 ) – Please choose one

The formula for determining the required cycle time is operation time per day

divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

Page#85 Cycle time is the maximum time allowed at each workstation to complete

its set of tasks on a unit. If CT represents cycle time and D represents the desired

output then we can calculate cycle time as

CT = cycle time = OT/D

Question No: 20 __ ( Marks: 1 ) – Please choose one

Which one of the following statements is NOT correct about cycle time?

It represents daily operating time divided by desired production

It is the maximum allowable time at each work station

It determines the time often items take to roll off in assembly line

It is the time required to complete a product from start to finish

Question No: 21 __ ( Marks: 1 ) – Please choose one

What would be the required cycle time for a process that operates 9 hours daily

with a desired output of 300 units per day?

0.03 minutes

1.8 minutes

2700 minutes

291 minutes

CT = cycle time = OT/D

=9/300

=0.03

Question No: 22 __ ( Marks: 1 ) – Please choose one

What would be the output capacity if an assembly line operates for 7 hours per

day with a cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

OC Output capacity = OT/CT

=7/2.0

=3.5

Question No: 23 __ ( Marks: 1 ) – Please choose one

Which one of the following types of manufacturing layout is considered a hybrid?

Process layout

Product layout

Fixed-position layout

All of the given options

Page#80 Hybrid/Combination. A Layout that makes use of the combination of

Product, Process or Fixed Position Layout

Question No: 24 __ ( Marks: 1 ) – Please choose one

A department store discovered that in a four-month period, the best forecast can

be determined by using 50 percent of the sales for the most recent month, 20

percent of the sales of two months ago, 10 percent of the sales of three months

ago, and 20 percent of the sales of four months ago. Which forecasting method

should the store use to forecast demand?

Simple Moving Average

Linear Regression

Time Series Analysis

Weighted Moving Average

Question No: 25 __ ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that

past data is more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast (review again)

Naive forecast

Question No: 26 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

Functional design

Production design

Service design

Product design

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Slides No 11&13

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following is the most significant disadvantage of

standardization?

Reduced design costs

Interchangeable parts

Reduced variety

Customized parts

See Slide#14

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

To test the robustness of a design

To articulate the “voice of the customer”

To reduce the degree of automation

To create a concurrent design

Page#52 Taguchi Approach To Robust Design

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is correct about the range of availability on a

measuring index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

Question No: 31 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

350 hours between repairs, and the mean repair time is expected to be 3 hours?

0.99

1.0

3.0

7.03

Availability = (MTBF)/(MTBF + MTR)

=350/350+3

=0.99

Question No: 32 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

REF:

* Require an extensive knowledge of management roles and skills.

* They have to be very aware of external factors such as markets.

* Their decisions are generally of a long-term nature

* Their decisions are made using analytic, directive, conceptual and/or

behavioral/participative processes

http://en.wikipedia.org/wiki/Management

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

Reference (Page#109)

Question No: 34 ( Marks: 1 ) – Please choose one

Which of the following refers to changing the job role of one worker with another?

Job rotation

Job enlargement

Job enrichment

Job design

Question No: 35 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

Page#31 Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more.

Question No: 36 __ ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors that affect

location decision?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96 Site Related Factors

•Land

•Transportation

•Environmental

•Legal

Question No: 37 __ ( Marks: 1 ) – Please choose one

In which of the following approaches location decision is based on personal

opinions and quantitative information?

Factor rating

Market area plant strategy

Currency fluctuations

Product plant strategy

Reference (Page#379)

Question No: 38 __ ( Marks: 1 ) – Please choose one

Which of the following best describes the concept of the value chain?

• The step-wise increases in product prices as raw materials are turned into

goods/services

Adding financial value to an organization through the acquisition of other firms

• A sequence of activities that involve movement of materials in a production

facility

• All steps in the transformation process that add value even if they don’t

come from manufacturing

Question No: 39 __ ( Marks: 1 ) – Please choose one

The Strategies which are more focused on maintaining or improving the quality of

an organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

Page#18 Quality-based strategies

􀀀 Focuses on maintaining or improving the quality of an organization’s products or

services

Question No: 40 __ ( Marks: 1 ) – Please choose one

Which one of the following describes the Naïve forecast?

Attempt to predict the future value based on the past data.

Determine long term upward or downward movement in data.

Forecast for any period equals the previous period’s actual value.

Collect outside opinion of consumer and potential customers.

Paper 12

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

The management of systems or processes that creates goods and provides services is

known as:

Operation Management

Operation/production Management

Operation/Research Management

Production/Research Management

Page#3 Operations Management (The management of systems or processes that create

goods and/or provide services)

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

Capital

Energy

Labor

Machine

Page#19

Labor Productivity

Units of output per labor hour

Units of output per shift

Value-added per labor hour

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity is expressed as dollar value of output

per kilowatt hour?

Machine

Capital

Energy

Labor

Page#19 Energy Productivity

Units of output per kilowatt-hour

Rupee value of output per kilowatt-hour

Question No: 4 ( Marks: 1 ) – Please choose one

What would be the productivity if a machine produced 50 units in 3 hours?

0.066 units per hr

16.66 units per hr

6.766 units per hr

60.66 units per hr

Question No: 5 ( Marks: 1 ) – Please choose one

Which of the following functions of an organization consists of all activities directly

related to production of a good or service?

Operations

Marketing

Accounting

Finance

Question No: 6 ( Marks: 1 ) – Please choose one

Which of the following is NOT a decision to be made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 7 ( Marks: 1 ) – Please choose one

All of the following are the decision areas of an operations manager EXCEPT:

Financial reporting

Inventory management

Scheduling tasks

Supply chain management

http://wiki.answers.com/Q/What_are_Operations_management_decisions

Question No: 8 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

Survival, profitability, growth rate and market share

Profitability, survival, leads times and target market

Quality, operating resources, growth rate and market share

Scheduling, profitability, lead times and survival

Question No: 9 ( Marks: 1 ) – Please choose one

Which of the following statements describes an order-qualifier characteristic?

A competitive dimension used to make final decision among competitors

A factor which directly and significantly contribute to winning business

A factor which increases the profitability of the organization

A factor perceived as a minimum standard as a potential for purchase

Page#15 Order qualifiers are those significant characteristics that service customers

perceive as minimum standards of acceptability to be considered as a potential

purchase while order winners

Question No: 10 ( Marks: 1 ) – Please choose one

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time

page#14Operations strategy – The approach, consistent with organization strategy

that is used to guide the operations function

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the qualitative forecasting technique?

It consists mainly of numerical descriptions and defies subjective inputs of managers.

It consists mainly of subjective inputs and defies particular numerical descriptions.

It consists mainly of subjective inputs and defies human factor, personal

opinions.

It consists mainly of analyzing objective and hard data and defies human factor,

opinion.

Page#34 Qualitative Techniques which use subjective inputs and no numerical data.

It relies solely on soft information like human factors, personal opinion, hunches.

Thus Qualitative Forecasts are often biased and tilted towards what the

management wants to predict.

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the quantitative forecasting technique?

It consists mainly of numerical descriptions and resist subjective inputs of

managers.

It consists mainly of subjective inputs and resist particular numerical descriptions.

It consists mainly of subjective inputs and resisit human factor, personal opinions.

It consists mainly of analyzing objective and hard data and resist human factor,

opinion.

Question No: 14 ( Marks: 1 ) – Please choose one

Given the table:

Alternatives Possible future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff underLAPLACEapproach?

Rs. 9,000

Rs. 16,000

Rs. 33,000

Rs. 16,500

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a step of decision making process?

Develop alternatives

Monitor results

Consider risk averseness strategies

Specify criteria for decision

Page#24 Normally the decision making process involves the following six important steps

1. Specify Objectives and the Criteria for decision making

2. Develop Alternatives

3. Analyze and compare alternatives.

4. Select the best alternative.

5. Implement the chosen Alternative

6. Monitor the results to ensure the desired results are achieved.

Question No: 16 ( Marks: 1 ) – Please choose one

As an operations manager you have collected data about the demand of certain product

“P” over time “t”. The data shows short-term fairly regular variations over the time

period “t“. Which one of the following is correctly explaining the behavior of the data?

Cycle

Random variation

Seasonality

Trend

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute break even point?

Q = VC / (R – VC)

Q = FC / (R – VC)

Q = VC / (R + FC)

Q = FC / (R + VC)

Page# 76 QBEP= FC/ ( R-VC)

Question No: 18 ( Marks: 1 ) – Please choose one

ABC Corporation has planned to purchase a new machine. Total annual fixed cost is Rs.

10,000, variable cost is Rs. 5 per unit and revenue is Rs. 7 per unit. What would be the

break even point?

833 units

2000 units

5000 units

1012 units

Page# 76 QBEP= FC/ ( R-VC)

=10,000/(7-5)

=10,000/2

=5000

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following manufacturing process is associated with high volume car

manufacture?

Job shop

Assembly line

Batch

Automation

http://en.wikipedia.org/wiki/Assembly_line

Reference

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is a characteristic of continuous process?

High lead times

Short process times

The ability to handle high variety

The ability to handle high volumes

Slide#7 Slide#9

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following refers the way an organization chooses to produce its good or

services?

Process selection

Process reengineering

Process redesign

Process design

Page#77 Process Selection refers to the way an organization chooses to produce its

good or services

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following is an example of business that uses job shop process

structure?

French restaurants

Heavy equipment

Sugar refinery

Automobile assembly

Page#329 Under the heading of competitive advantages

Question No: 23 ( Marks: 1 ) – Please choose one

In which of the following layouts, work stations are arranged according to the general

function they perform without regard to any particular product?

Product

Process

Fixed-position

Storage

In a Process layout, work stations are arranged according to the general

function they perform without regard to any particular product.

Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

Fixed position layout

Process layout

Product layout

Cellular layout

Reference(Page#28)

Other ref

Supermarket layouts are essentially process layouts, yet we find that most use fixedpath

material-handling devices such as roller-type conveyors in the stockroom and

belt-type conveyors at the cash registers.

Question No: 25 ( Marks: 1 ) – Please choose one

OSHA stands for which one of the following?

Occupational stock hygiene administration

Occupational safety hygiene administration

Occupational safety hygiene agency

Occupational science hygiene administration

Page#46 OSHA refers to Occupational Safety Hygiene Administration,

Question No: 26 ( Marks: 1 ) – Please choose one

In order to comply with the environmental standards, an organization ABC has to

implement Occupational Safety Hygiene Administration (OSHA).Which one of the

following is a way to accomplish this task?

Promoting friendly relations among employees

Installing safety guards and devices to reduce the risk of potential accidents

Installing machinery to make the process speedy

Installing machinery that provides cost effective output

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following statements is TRUE about product life cycle?

It depicts demand of a product at various price levels

It depicts demand of a product with respect to time

It relates demand of a product to quality

It relates demand of a product to market share

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

To test the robustness of a design

To articulate the “voice of the customer”

To reduce the degree of automation

To create a concurrent design

Page#52 Taguchi Approach To Robust Design

Question No: 29 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Question No: 30 (Marks: 1) – Please choose one

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Question No: 31 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed

Cross-functional team

Self motivated team

Reference (Page#109)

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

Page#31: Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more.

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following factors makes a forecast LESS perfect?

Randomness

Non serious attitude

Non availability of data

Un qualified personnel

Reference (Page#69)

Question No: 34 ( Marks: 1 ) – Please choose one

Which one of the following is an example of community factors that affect location

decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96 Community Considerations

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Question No: 35 ( Marks: 1 ) – Please choose one

Which one of the following location strategies is favored by automobile manufacturers?

Product plant strategy

Process plant strategy

Market area plant strategy

Cost conservation strategy

Reference (Page#369)

Question No: 36 ( Marks: 1 ) – Please choose one

Which one the following is an assumption of center of gravity method?

The quantity to be shipped is variable

The quantity to be shipped is fixed

The quantity carries no value

The quantity to be shipped should be extraordinarily high

Question No: 37 ( Marks: 1 ) – Please choose one

Which of the following statements would generally be considered as correct job shop?

A continuous process has lower output volume as compared to job shop

Equipment flexibility is lower in job shop than that of a continuous process

Labor costs are higher in a Job Shop operation than in most other processes

Batch processing produces a more standard range of products than continuous flow

processes

Question No: 38 ( Marks: 1 ) – Please choose one

Which one of the following is NOT an input in the transformation process?

Information

Services

Facilities

Materials

Question No: 39 ( Marks: 1 ) – Please choose one

Which one of the following describes the Naïve forecast?

Attempt to predict the future value based on the past data.

Determine long term upward or downward movement in data.

Forecast for any period equals the previous period’s actual value.

Collect outside opinion of consumer and potential customers.

Question No: 40 ( Marks: 1 ) – Please choose one

Which one of the following is an advantage of a moving average forecast?

All the values in the average are weighted equally

The method is reliable to forecast the demand accurately

The method is easy to compute and easy to understand

The most recent values are given the more weight age

Paper 13

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

The major business function consisting of research and development, product

design, manufacturing, marketing, distribution, and customer service is refers

to:

Value chain

The transformation process

Quality control

Life cycle

Which of the following is NOT usually considered a general characteristic of a

service?

Production and sales cannot easily be separated functionally

Many services involve both tangible and intangible outputs

Production and consumption can always be separated

Degree of customer contact is high

Which one of the following is an implication of Laplace approach of decision

making?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Which one of the following is an outcome of Maximin critrion?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMIN approach?

Rs. 8,000

Rs. 12,000

Rs. 18,000

Rs. 20,000

Which one of the following forecasting techniques is used to identify a trend

when data is neither growing nor declining rapidly and has no seasonal

characteristics?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

Which one of the following refers to the maximum output that a firm can

produce under ideal conditions?

Design capacity

Effective capacity

Capacity planning

Utilization rate

REF: page#74

Which one of the following perspectives is the most obvious to be considered

while evaluating alternatives for future capacity?

Social

Political

Economic p#70

Legal

Which of the following terms of financial analysis are important for the

organization to proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

Which one of the following manufacturing process is associated with high

volume car manufacture?

Job shop

Assembly line

Batch

Automation

The formula for determining the required cycle time is operation time per day

divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

Assembly lines relate most closely to a:

Functional layout

Product layout

Process layout

Departmental layout

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

In exponential smoothing model, a denotes:

Smoothing constant

Actual forecast

Forecast error

Previous forecast

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

Which one of the following designs resists modifications?

Frozen design p 48 (review again)

Product design

Service design

Robust design

Which one of the following is a curve showing failure rate over time?

Cost curve

Bath tub curve

Fish bone diagram

Reliability curve

Which of the following management level is responsible for long-range

capacity planning?

Lower management

Middle management

Top management

Non managerial employees

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

The advantages of specialization to management include all of the following

EXCEPT:

Rapid training of the workforce

Ease in recruiting new workers

Fewer turnovers

Less boredom for workers

The disadvantages of specialization to management include all of the

following EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Which of the following can be used to compute standard time?

Multiplying the elemental average time by the rating factor

Dividing the average elemental time by the rating factor

Multiplying the normal cycle time by the rating factor

Multiplying the normal cycle time by one plus the allowance factor

Page#92 Standard Time=ST=NT X AF is the normal time plus allowance for

delays like ( getting a glass of water or going to the washroom human needs)

Which one of the following is an example of community factors that affect

location decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

Community Considerations p#96

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Which one of the following is an example of site related factors that affect

location decision?

Transportation

Quality of life

Location of new markets

Location of raw materials

Site Related Factors

•Land

•Transportation

•Environmental

•Legal

Which of the following statements would generally be considered as correct

job shop?

A continuous process has lower output volume as compared to job shop

Equipment flexibility is lower in job shop than that of a continuous process

Labour costs are higher in a Job Shop operation than in most other processes

Batch processing produces a more standard range of products than continuous

flow processes

Which one of the following is TRUE about work sampling?

It describes individual human motions that are used in a job task

It involves determining the length of time it will take to undertake a particular

task

It involves determining the amount of time a worker spends on various

activities

It provides standard times for micro motions such as reach, move and release

Purpose is to coordinate and control all the required sources so that productive

system can be used efficiently and to ensure the delivery of product in time.

Total quality controls

Demand management’s

Forecasting’s

Operations management’s

Forecasting for groups tend to be more accurate than forecasting for individual

items because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

Page#33 •Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals.

Paper 14

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Question No: 1 __ ( Marks: 1 ) – Please choose one

Which of the following is NOT a decision to be made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forecasting technique is based on historical data?

Judgmental

Associative

Time series

Qualitative

Question No: 3 __ ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximax?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Maximax

􀀀 Maximax determines

􀀀 the best possible outcome

􀀀 Choose the Alternative with the best possible payoff.

􀀀 It does not take into account any other alternative then the best payoff.

􀀀 An optimistic approach.

􀀀 Go for it strategy.

Question No: 4 __ ( Marks: 1 ) – Please choose one

Given the table:

Alternatives Possible future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMIN approach?

Rs. 8,000

Rs. 12,000

Rs. 18,000

Rs. 20,000

Question No: 5 __ ( Marks: 1 ) – Please choose one

A workers strike represents which of the following behaviors of a time series?

Cycle

Trend

Seasonality

Irregular variations

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to

design capacity?

Utilization

Efficiency

Effective capacity

Effectiveness

Question No: 7 __ ( Marks: 1 ) – Please choose one

What would be the utilization, if 34 cars are produced in a day with a design

capacity of 50 cars per day?

16%

68%

1.47%

84%

Utilization = Actual Output/ Design Capacity

=34/50

=68%

Question No: 8 __ ( Marks: 1 ) – Please choose one

Effective capacity is influenced by all of the following factors EXCEPT:

Facilities

Product mix

Processes

Operations

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following statement represents use of cost-volume analysis?

It is a tool for reliability measurement

It provides a base for marketing research

It helps in comparing capacity alternatives

It is important in product design

Cost Volume Relationship focuses on relationships between costs, revenue and volume of

output. The primary purpose of cost volume analysis is to estimate the income of an

organization under different operating conditions. It is particularly useful as a tool for

comparing capacity alternatives.

Question No: 10 ( Marks: 1 ) – Please choose one

ABC Corporation has planned to purchase a new machine. Total annual fixed

cost is Rs. 10,000, variable cost is Rs. 5 per unit and revenue is Rs. 7 per unit.

What would be the break even point?

833 units

2000 units

5000 units

1012 units

Question No: 11 __ ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the

organization to proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following is an example of a business that uses assembly line

process structure?

Automobile assembly

Sugar refinery

Heavy equipment

French restaurants

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following is a type of layout where equipment, machinery and

people are moved as required?

Product layout

Fixed position layout

Process layout

Hybrid layout

Question No: 14___( Marks: 1 ) – Please choose one

A self-service cafeteria is usually positioned as:

Process layout

Fixed position layout

Hybrid layout

Product layout

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions can be used to compute

output capacity?

OT/CT

CT/OT

CT+OT

CT-OT

(page 85)

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following types of manufacturing layout is considered a hybrid?

Process layout

Product layout

Fixed-position layout

All of the given options

(page 80)Hybrid/Combination. A Layout that makes use of the combination of Product,

Process or Fixed Position Layout.

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that

past data is more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast (review again)

Naive forecast

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is responsible for administering environmental issues

about product and service design?

Central Board Revenue

Environmental Protection Agency

Federal Drug Agency

Occupational Safety Hygiene Administration

Question No: 19 __ ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

Question No: 20 ( Marks: 1 ) – Please choose one

OSHA stands for which one of the following?

Occupational stock hygiene administration

Occupational safety hygiene administration

Occupational safety hygiene agency

Occupational science hygiene administration

Question No: 21 ( Marks: 1 ) – Please choose one

In order to comply with the environmental standards, an organization ABC has to

implement Occupational Safety Hygiene Administration (OSHA).Which one of the

following is a way to accomplish this task?

Promoting friendly relations among employees

Installing safety guards and devices to reduce the risk of potential

accidents(not sure )

Installing machinery to make the process speedy

Installing machinery that provides cost effective output

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following designs resists modifications?

Frozen design (not sure )

Product design

Service design

Robust design

Question No: 23 __ ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

To test the robustness of a design

To articulate the “voice of the customer”

To reduce the degree of automation

To create a concurrent design

Question No: 24 __ ( Marks: 1 ) – Please choose one

Which one of the following refers to a design that takes into account

organization’s operational capabilities, when designing a product?

Design for assembly

Design for manufacturing

Design for recycling

Design for disassembly

(page 51)Design for Manufacturing (DFM): The designers’ consideration of the

organization’s manufacturing capabilities when designing a product. The more general

term design for operations encompasses services as well as manufacturing.

Manufacturability is the ease of fabrication and/or assembly which is important for:

i. Cost

ii. Productivity

iii. Quality

Question No: 25 ( Marks: 1 ) – Please choose one

Which one of the following refers to using some of the components of old

products in the manufacturing of new products?

Manufacturability

Remanufacturing

Robust design

Automation

Question No: 26 __ ( Marks: 1 ) – Please choose one

MTBF refers to which of the following?

Measure time before failure

Mean time between failures

Mean time before failure

Measure test before failure

(page 63)

Question No: 27___( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

300 hours between repairs, and the mean repair time is expected to be 2 hours?

6.02

2.0

0.99

0.006

Question No: 28 __ ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

Question No: 29 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of method analysis?

Dividing and analyzing a job

Check individual human motions used to perform an operation

Determining the length of time it will take to undertake a particular task

Determining the amount of time a worker spends on various activities

Question No: 31 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of work sampling?

Individual human motions that are used in a job task

Determining the length of time it will take to undertake a particular task

Determining the amount of time a worker spends on various activities

Specifying the content and methods to perform a job

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

Question No: 34 __ ( Marks: 1 ) – Please choose one

Which one of the following factors makes a forecast LESS perfect?

Randomness

Non serious attitude

Non availability of data

Un qualified personnel

Question No: 35 ( Marks: 1 ) – Please choose one

An example of a business/industry that uses batch flow process structure is:

Commercial printer

Heavy equipment

Automobile assembly

Sugar refinery

Question No: 36 __ ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about work sampling?

It describes individual human motions that are used in a job task

It involves determining the length of time it will take to undertake a particular task

It involves determining the amount of time a worker spends on various

activities

It provides standard times for micro motions such as reach, move and release

Question No: 37 ( Marks: 1 ) – Please choose one

Which of the following is a difference of service organizations as compared to

manufacturing organizations?

Manufacturing organizations are more specialized than service organizations

Manufacturing firms have more variety than service organizations.

Service firms are more flexible than manufacturing organizations

Manufacturing decisions are made by maximizing the profit potential (not

sure)

Question No: 38 ( Marks: 1 ) – Please choose one

All of the following are examples of time based strategies EXCEPT:

Products /service design time

Processing time

Response time for complaints

Response time for innovation

(handout page 18)

Question No: 39 __ ( Marks: 1 ) – Please choose one

purpose is to coordinate and control all the required sources so that productive

system can be used efficiently and to ensure the delivery of product in time.

Total quality control’s

Demand management’s

Forecasting’s

Operations management’s

Question No: 40 ( Marks: 1 ) – Please choose one

Which one of the following is an advantage of a moving average forecast?

All the values in the average are weighted equally

The method is reliable to forecast the demand accurately

The method is easy to compute and easy to understand

The most recent values are given the more weight age

Paper 15

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Within the operations function, which one of the following is a long-term

management decision?

►Control decision

►Non-operational decision

►Strategic decision

►Tactical decision

Which one the following formula or function can be used to measure the

performance?

► Flexibility + profit+ operations

►Work + profit + value

►Quality + speed + flexibility

►Profit + Incentives + standards

Which of the following statements corresponds to an order-winning

characteristic?

►A factor which may be significant in other parts of the organization

►A factor which gives an organization a competitive edge

►A factor which serves as a minimum standard for purchase

►A factor which increases the profitability of the organization

As a manager, you have defined the purpose of the forecasts. What should be

the next step in forecasting process?

►Choose a forecasting technique

►Determine the purpose of the forecast

►Set up a time horizon or a time limit

►Collect and analyze the appropriate data.

Which one of the following forecasting technique is based on historical data?

►Judgmental

►Associative

► Time series

► Qualitative

Which one of the following forecasting techniques use subjective inputs from

consumer surveys, sales staff, managers and experts?

►Time series

►Quantitative

►Judgmental

►Associative

Which of the following approaches favours adopting a “go for it” strategy?

►Maximin

►Maximax

►Minimax regret

►Laplace

p#26

Possible future

demand

Low (Rs.) High (Rs.)

10,000 8,000

12,000 20,000

18,000 15,000

Given the table:

Alternatives

Small facility Medium facility large facility

Which one of the following is the correct payoff under MAXIMAX approach?

►Rs. 10,000

►Rs. 18,000

►Rs. 20,000

►Rs. 32,000

Which one of the following is NOT a step of decision making process?

►Develop alternatives

►Monitor results

►Consider risk averseness strategies

►Specify criteria for decision

Which one of the following stages of product life cycle relates to more

predictable behaviour in terms of capacity requirements?

►Introduction

►Growth

►Maturity(not sure )

►Decline

Which one of the following statement is TRUE about cost-volume

relationship?

►It represents the relationship between cost, revenue and volume of output.

►It represents the relationship between cost and volume of output.

►It represents the relationship between cost and revenue.

►It represents the relationship between inputs, cost and volume of output.

Which one of the following formulae can be used to compute break even

point?

►Q = VC / (R – VC)

►Q = FC / (R – VC)

►Q = VC / (R + FC)

►Q = FC / (R + VC)

Ref: QBEP = FC/ R-VC

Which of the following is a system designed to coordinate all activities and

information needed to complete business processes?

►Enterprise resource planning

►Supply chain management

►New product development

►Customer relationship management

(page 509)

Which of the following is NOT a characteristic of product layouts?

►High material handling costs

►Sequential arrangement of machines

►Standardized output

►Continuous production system

Ref: Lecture slide#19

1. High rate of output.

2. Low unit cost.

3. Labor specialization.

4. Low material handling cost.

5. High utilization of labor and equipment.

6. Established routing and scheduling.

7. Routing accounting and purchasing.

Which one of the following refers to using some of the components of old

products in the manufacturing of new products?

►Manufacturability

►Remanufacturing

►Robust design

►Automation

What would be the availability if a carp hours between repairs, and the

mean rep?

►1.01

►5.03

►3.0

►0.98

Which one of the following is the goal of method analysis?

► Dividing and analyzing a job

►Check individual human motions used to perform an operation

►Determining the length of time it will take to undertake a particular task

►Determining the amount of time a worker spends on various activities

(slide 19)

ble to operate for 250

Which one of the following is an example of regional factors that affect

location decisions?

►Transportation

►Quality of life

►Development support

►Location of new markets

Which one of the following statements is true about Occupational Safety

Hygiene Administration (OSHA)?

►To safeguard against potential hazards

►To develop cost effective processes

►To implement legal standards

► To carry out implication of manufacturability and fitness

Which one of the following is used to produce gasoline and petroleum

products?

►Job shop

►Batch processing

►Assembly line

►Continuous processing

The type of processing structure that is used for producing discrete products at

higher volume is:

►Continuous Flow

►Assembly Line

►Batch

►Job shop

An example of a business/industry that uses batch flow process structure is:

►Commercial printer

►Heavy equipment

►Automobile assembly

►Sugar refinery

Quality, costs, lead times, operating resources are all related to which one of

the following strategies.

►Organizational strategy

►Financial strategy

►Operational strategy

►Tectical strategy

All of the following are examples of the transformation process EXCEPT:

►Cutting

►Packing

►Facilitating

►Labeling (not sure )

Which of the following is a characteristic of linear regression?

It is superior to a moving average

► It is a causal forecasting model

► It compensates for both trend and season

► It is superior to an exponential smoothing

Paper 16

MIDTERM EXAMINATION

Spring 2010

MGT613- Production / Operations Management

Which of the following statements describes an order-qualifier characteristic?

► A competitive dimension used to make final decision among competitors

► A factor which directly and significantly contribute to winning business

► A factor which increases the profitability of the organization

► A factor perceived as a minimum standard as a potential for purchase

In which one of the following decision environments it is impossible to assess

the likelihood of various future events?

► Risk

► Bounded rationality

► Certainty

► Uncertainty

Which one of the following is an outcome of MINIMAX regret?

► The best of the worst possible payoff

► The best possible payoff

► The best average payoff

► The least of the worst regret

Which one of the following is a limitation of a moving average having a trend?

► The forecast lags behind the actual

► The forecast represents demand more accurately

► The forecast will not be accurate

► The forecast will not be reliable

Which of the following is an example of a business that uses assembly line

process structure?

► Automobile assembly

► Sugar refinery

► Heavy equipment

► French restaurants

Which one of the following layout types is associated with car assembly?

► Fixed position layout

► Process layout

► Product layout

► Hybrid layout

A department store discovered that in a four-month period, the best forecast

can be determined by using 50 percent of the sales for the most recent month,

20 percent of the sales of two months ago, 10 percent of the sales of three

months ago, and 20 percent of the sales of four months ago. Which forecasting

method should the store use to forecast demand?

► Simple Moving Average

► Linear Regression

► Time Series Analysis

► Weighted Moving Average

Which one of the following statements is TRUE about product life cycle?

► It depicts demand of a product at various price levels

► It depicts demand of a product with respect to time

► It relates demand of a product to quality

► It relates demand of a product to market share

Which of following statement is true about effective capacity?

► It is the actual output achieved

► It is always less than actual output

► It is the maximum output that a firm can produce

► It is always less than designed capacity

Which one of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase?

► Reverse engineering

► Concurrent engineering

► Manufacturability

► Serviceability

Which of the following refers to the way an organization chooses to produce

its goods or services?

► Process selection

► Process reengineering

► Process redesign

► Process design

The purpose of ___________ is to coordinate and control all the required

sources so that productive system can be used efficiently and to ensure the

delivery of product in time.

► Total quality control

► Demand management

► Forecasting

► Operations management

Which of the following is NOT an attribute to classify services?

► Tangibility

► Perish ability

► Simultaneity

► Courtesy

Which of the following is NOT an emerging trend in the workplace?

► Increasing workplace diversity

► Decreasing work schedule flexibility

► Increasing number of part time jobs

► Increasing use of temporary labor

Which method of forecasting is most widely used?

► Regression analysis

► Adaptive forecasting

► Weighted moving average

► Exponential smoothing

Which one of the following is concerned with short term capacity needs?

► Cycle

► Trends

► Seasonality

► Average

Which relationship exists between the robustness of a product and the

probability of failure.

► Positive relation

► Direct relation

► Inverse relation(not sure)

► Negative relation

(page 218)

Which one of the following management functions is based on forecasting?

► Planning

► Organizing

► Leading

► Controlling

(page 35)

(page 293)

Which one of the following factors provides a basis for comparing alternative

forecasting techniques?

► Time dimension

► Reliability factor

► Degree of accuracy

► Measuring units

(page 35)

Which of the following functions of an organization consists of all activities

directly related to production of a good or service?

► Operations

► Marketing

► Accounting

► Finance

Which of following statement is true about effective capacity?

► It is the actual output achieved

► It is always less than actual output

► It is the maximum output that a firm can produce

► It is always less than designed capacity

In which one of the following decision environments it is impossible to assess

the likelihood of various future events?

► Risk

► Bounded rationality

► Certainty

► Uncertainty

Which of the following is NOT mark of a good layout in manufacturing?

► Bottleneck operations

► Straight line flow pattern

► Work stations close together

► Open plant floors (high visibility)

All of the following are examples of time based strategies EXCEPT:

► Products /service design time

► Processing time

► Response time for complaints

► Response time for innovation

(Handout page 18)

Which one of the following is a key benefit of process plant strategy?

► Economies of scale

► Diseconomies of scale

► Product variety

► Task specialization

Which one of the following refers to a design that takes into account

organization’s operational capabilities, when designing a product?

► Design for assembly

► Design for manufacturing

► Design for recycling

► Design for disassembly

Question No: 28 ( Marks: 1 ) – Please choose one

Which of the following layouts facilitates the handling of varied processing

requirements?

► Product layout

►Process layout

► Fixed-position layout

► Hybrib/Combination layout

Which one of the following forecasting techniques uses explanatory variables to

predict future demand?

► Quantitative forecast

► Time series forecast

► Consumer survey

► Executive opinion

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fin 623 Taxation Management Unsolved Mid term Paper

MIDTERM EXAMINATION
Spring 2009
FIN623- Taxation Management (Session – 2)

Question No: 1 ( Marks: 1 ) – Please choose one
Which of the following is opposite to the literal meanings of Tax?
Burden
Strain
Load
Relieve
REF:
Literal meanings —– Burden, Strain
Question No: 2 ( Marks: 1 ) – Please choose one
Which of the following is the main source of revenue generation of the state?
Taxes & Tariffs
Internal Borrowing
External Borrowing

Penalties & Fines

Question No: 3 ( Marks: 1 ) – Please choose one
_____ is paid to the government on goods and services and can be reclaimed by
retailers.
Income Tax
Value Added Tax
Capital Value Tax
Wealth Tax
Ref:
value added tax is the tax that is only refundable and apply of the good and services.
Question No: 4 ( Marks: 1 ) – Please choose one
Which of the following is not an employment tax?
Social Security Tax
Federal Excise Tax
Federal unemployment compensation tax
State unemployment compensation tax
Ref:
for above mcqs is correct because after reading the definiation of federal excise tax you
should be able to differencete from the aboe. it the tax that government ampossed on the
import of a good and services thats why it has no connection with employment tax.
Question No: 5 ( Marks: 1 ) – Please choose one
How many Schedules are contained in the Income Tax Ordinance 2001?
For evaluation only.Three Schedule
Fifth Schedule
Seven Schedules
Nine Schedules
Ref:
Basic Features of Income Tax Ordinance 2001
Scheme of the Ordinance is given below:
There are thirteen chapters
Chapters are divided into:
ƒParts &
ƒDivisions
There are 240 Sections
This ordinance comprises of seven Schedules
Schedules are integral part of the Ordinance.

Question No: 6 ( Marks: 1 ) – Please choose one
Under which of the following sections of Income Tax Ordinance 2001 vested the
powers to CBR in order to formulate the IT rule 2002?
Section 206
Section 213
Section 237
Section 238
Ref:
IT rules 2002
These were promulgated by CBR on 1st July 2002 in exercise of powers granted under
section 237 of theOrdinance.
Question No: 7 ( Marks: 1 ) – Please choose one
Which one of the following is the Internal aid and help in the interpretation of
Punctuation marks
CBR’s circulars
Definitions in other statutes
Departmental manuals
Ref:
Internal Aids:
These are available in the Act:
ƒ Explanation to the section
ƒ Marginal notes
ƒ Punctuation marks
ƒ Preamble
ƒ Title of a chapter
ƒ Non-Obstinate clause
ƒ Proviso
ƒ Context
Question No: 8 ( Marks: 1 ) – Please choose one
Section 2(13) of Income Tax Ordinance 2001 defined:
“Commissioner” means a person appointed as a Commissioner of Income Tax
For evaluation only.yle=”text-align: left; direction: ltr; margin: 0px;” dir=”ltr”>under section 208, and includes
a taxation officer vest ed with all or any of the
powers, and functions of the Commissioner;
In which criteria the above definition falls?
Exclusive definition
Inclusive definition
Both Exclusive and Inclusive definitions
Statutory definition
Ref:
Question No: 9 ( Marks: 1 ) – Please choose one
Under which of the following conditions a tax payer can adopt a special tax year?
Whenever he decides so
After seeking approval from Tax Office
After seeking approval from Commissioner of income tax
After seeking approval from High Court
Ref:
Special Tax Year:
In case a person has a different accounting period from normal tax year or adopted such
aperiodafter seeking approval from commissioner under section 74(3) it is called special
tax year.
Question No: 10 ( Marks: 1 ) – Please choose one
Mr. A & B Joint Owners of a Building, Which of the following is the legal status
under the provisions of Section 80 of the Ordinance?
Company
Association of Persons
Hindu Undivided Family
Ref:
• “An association of persons”—includes a firm, a Hindu Undivided Family, any artificial
juridical personand anybody of persons formed under a foreign law, but doesn’t include a
company.
Question No: 11 ( Marks: 1 ) – Please choose one
Which of the following is the legal status of Mr. Z, a Director in Private Company
under section 80 of the Income tax ordinance 2001?
Individual
Company
Firm
Hindu Undivided Family
Ref:
Person—Sec. 2(42) read with section 80. Person includes:
• An individual
• • A company or association of persons incorporated or formed in Pakistan or elsewhere;
and
• The federal Government,
• a foreign government,
a political sub division of foreign government, or
• Public international organization
Question No: 12 ( Marks: 1 ) – Please choose one
Which of the following is NOT an example of deemed income?
Golden hand shake
All of the given options
Loan through cross cheque
Gifts through proper transaction
Ref:
Deemed Income at Par with real income
Cash Basis Vs Accrual Basis
Illegal Income
Lump Sum Receipts
Tax-free income
Question No: 13 ( Marks: 1 ) – Please choose one
If the land situated in Pakistan and used for agriculture purposes then which of
the following factor make distinction between agriculture and non-Agriculture
Income?
Nationality of Pakistan
Quantity of the product
Time period
Human effort
Question No: 14 ( Marks: 1 ) – Please choose one
Suppose a merchant acquired Profit from the purchase of standing crops and
resale of it after harvesting. The profit of the merchant will be treated in which of
the following way?
Agriculture Income
Income from Business
Income from Property
Capital Gain
Ref:
Following Incomes are held to be “Non-Agricultural Income”
Profit accruing from the purchase of standing crops and resale of it after harvest by a
merchant having no interest in land except a mere license to enter upon the land and
gather upon the produce, land is not direct, immediate or effective source of income
Question No: 15 ( Marks: 1 ) – Please choose one
Mr. Ali being citizen of Pakistan of 60 years old, if his total taxable income is
Rs.400,000. His tax liability will be reduced by ______ under Part 3 of second
schedule.
10%
25%
50%
75%
Ref:
Reduction in Tax Liability under Second Schedule Part 3
• Any amount received as flying allowance by pilots etc. and junior commissioned officers
or other ranks shall be taxed @2.5% as separate block.
For evaluation only.• Senior citizen-age 60 years &above where taxable income not exceeding Rs. 400,000/-
tax liability reduced by 50%.
Question No: 16 ( Marks: 1 ) – Please choose one
M/s ABC & Co. has been incorporated under Pakistan Companies Ordinance 1984.
However it’s most of the branched and control and management of affairs wholly
situated out of Pakistan? What will be the residential status of M/s ABC & Co.?
Resident Company
Non-Resident Company
Resident Individual
Resident AOP
Question No: 17 ( Marks: 1 ) – Please choose one
Which part of income is charged to tax of resident person under the income tax
ordinance 2001?
Pakistani source of income
Foreign source of income
Both Pakistan and foreign source of income
None of the given option
Ref:
Scope of Total Income of a Resident Person Section 11 (5)
Resident Person Changeable to tax on:
• The income of a resident person under a head of income shall be computed by taking
into account amounts that are Pakistan-source income and amounts that are foreign-
source income
• Pakistan Source Income & Foreign Source Income Sec.11 (5) whereas, non-resident
person charged only on Pakistan Source Income Sec.11 (6)
Question No: 18 ( Marks: 1 ) – Please choose one
Which part of income is charged to tax of non-resident person under the income
tax ordinance 2001?
Pakistani source of income
Foreign source of income
Both Pakistan and foreign source of income
None of the given option
Ref:
whereas, non-resident person charged only on Pakistan Source Income Sec.11 (6)
Question No: 19 ( Marks: 1 ) – Please choose one
____________ means a fixed place of business through which the business of
an enterprise is wholly or partly carried on.
Permanent establishment
Small Business Units SBU
Venture
Ref:
see section 2(41) at page no 9.
Question No: 20 ( Marks: 1 ) – Please choose one
Which of the following come under the ambit of Royalty under section 2 (54)?
Copy right of a literary
Right to use any industrial or scientific equipment
All of the given options
Ref:
Royalty Defined Sec. 2 (54)
Royalty means any amount paid or payable however described or computed, whether
periodical or lump sum, as a consideration for:
a)The use of, or right to use any patent, invention, design or model, secret formula or
process, trade mark
or other like property or right;
b)The use of, or right to use any copy right of a literary, artistic or scientific work,
including films or video
tapes for use in connection with television or tapes in connection with radio broadcasting,
but shall not
include consideration for the sale, distribution or exhibition of cinematograph films.
c)The receipt of, or right to receive, any visual images or sounds or both, transmitted by
satellite, cable,
optic fiber or similar technology in connection with television, radio or internet
broadcasting;
d)The supply of any technical, industrial, commercial or scientific knowledge, experience
or skill;
e)The use of or right to use any industrial, commercial or scientific equipment;
f)The supply of any assistance that is ancillary and subsidiary to, and is furnished as a
means of enabling
the application or enjoyment of, any such property or right as mentioned in sub-clause (a)
through (e)
g)The disposal of any property or right referred to in (sub-clause) (a) through (e).
Question No: 21 ( Marks: 1 ) – Please choose one
What is the relation between the Non-resident and permanent establishment
as per section 105?
Both have same legal entity
Both are separate legal entity
Both are dependent on each other
None of the given options
Ref:
• The profit of the permanent establishment shall be computed on the basis that it is a
distinct and separate person engaged in the same or similar activities under the same or
similar conditions and dealing wholly independently with the non-resident person of which
it is a permanent establishment;
Question No: 22 ( Marks: 1 ) – Please choose one
Salary by members of AOP is not treated as Salary but treated as appropriation of
profit and charged under the head:
Income from Salary
Income from Property
Income from Business
Ref:
Salary by members of AOP is not treated as Salary but treated as appropriation of profit
and charged under the head “Income from Business”
Question No: 23 ( Marks: 1 ) – Please choose one
In which of the following heads of Income No deductions are allowed:
Salary Income
Income from Property
Income from Business
Capital Gains
Ref:
No deductions are allowed under the head “Income from Salary”
Question No: 24 ( Marks: 1 ) – Please choose one
Mr Ali is an employee of ABC Co. the company has provided a driver and a
gardener to Mr. Ali. What will be the treatment of their salaries as per Income
Tax Ordinance 2001?
The salaried paid to them added in the salary of MR. Ali
The salaried paid to them subtracted in the salary of MR. Ali
Have no relation with salary of Mr. Ali
The Salaried paid are exempted from Tax
Question No: 25 ( Marks: 1 ) – Please choose one
A directorship or any other office involved in the management of a company
under section 2(22) of Income Tax Ordinance, 2001 is termed as:
Employment
Employer
Employee
Business premises
Ref:
2(22) “employment includes:
• a directorship or any other office involved in the management of a company;
• a position entitling the holder to a fixed or ascertainable remuneration; or
• the holding or acting in any public office;
Question No: 26 ( Marks: 1 ) – Please choose one
Mr. A non-resident of Pakistan received interest on Australian Bonds Rs.
100,000 (half amount received in Pakistan). What is the treatment of this
amount for calculating his gross total income?
Rs. 100,000 added in his total income
Rs. 100,000 subtracted from his total income
Rs. 50,000 added in his total income
Exempt from tax
Ref:
Page no 35 exercise no 3
Question No: 27 ( Marks: 1 ) – Please choose one
Mr. X employed in Pakistan remittance from USA received Rs. 10,000 in
Pakistan from past profits. Which of the following is right for the above scenario?
income
Mr. X being resident of Pakistan Rs. 10,000 will be Subtracted in Gross
total income
Mr. X being non-resident of Pakistan Rs. 10,000 will be added in Gross
total income
Remittance is not income hence it is not included
Ref:
Note 1:
Since remittance is not income, hence it is not included.
Page 33 exercise not 1
Question No: 28 ( Marks: 1 ) – Please choose one
Mr. X resident of Pakistan remittance from UK received Rs. 20,000 in Pakistan
from past profits. Which of the following is right for the above scenario?

Mr. X being resident of Pakistan Rs. 20,000 will be added in Gross total
income
Mr. X being resident of Pakistan Rs. 20,000 will be Subtracted in Gross
total income
Mr. X being non-resident of Pakistan Rs. 20,000 will be added in Gross
total income
Remittance is not income hence it is not included
Question No: 29 ( Marks: 1 ) – Please choose one
Mr. Kishan Kumar during his yearly tour in Pakistan spends 155 working days, 26
off-working days 1 strike day and 1 Public Holiday in a tax year 2008-09? What
will be the status of the individual?
Resident Individual
Non Resident Individual
Resident Person
Resident HUF
Ref:
155+26+1+1=183
Resident Individual (Section 82)
• An individual shall be a resident individual for a tax year if the individual-
• is present in Pakistan for a period of, or periods amounting in aggregate to, one
hundred and eighty-three days or more in the tax year; or
• Is an employee or official of the Federal Government or a Provincial Government posted
abroad in the tax year?
Question No: 30 ( Marks: 1 ) – Please choose one
Mr. Zeeshan during his yearly tour in Pakistan spends 180 working days and in a
tax year 2008-09? What will be the status of individual?
Resident Individual
Non-Resident Individual
Resident Person
Resident HUF
Ref:
Resident Individual (Section 82)
• is present in Pakistan for a period of, or periods amounting in aggregate to, one
hundred and eighty-three days or more in the tax year; or
• Is an employee or official of the Federal Government or a Provincial Government posted
abroad in the tax year?

Question No: 31 ( Marks: 5 )
Why the right to acquire share is not chargeable to tax under Employee Share
Scheme section 14. Under what condition the right to acquire share under section
14 is taxable?
Answer:
Employee Share Schemes sec 14:
ƒThe value of a right or option to acquire share under this scheme shall be not chargeable
to tax.
ƒWhere shares issued are subject to a restriction on transfer of the shares-
a)no amount shall be chargeable to tax under the head Salary until the earlier of-
i. the time the employee has a free right to transfer the shares; or
ii. the time the employee disposes of the shares &
b)the amount chargeable to tax to the employee shall be fair market value of shares at the
time
employee has free right to transfer as reduced be any amount given as consideration for
the grant
of a right or option to acquire the shares.
ƒWhere in a tax year an employee disposes of a right or option to acquire shares under an
employee
share scheme, the amount chargeable to tax shall include the amount of any gain made on
the
disposal computed accordance with the following formula:
A-B
ƒWhere A is the consideration received from the disposal of the right or option.
ƒB is the employee’s cost in respect of the right or option.
Question No: 32 ( Marks: 10 )
What is meant by Fiscal Policy?
Highlight the role of taxes in Fiscal Policy. Differentiate between Budget deficit
and Budget Surplus.

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fin623 Taxation Management Mid Term Subjective Papers

FIN623 CURRENT MIDTERM PAPER

Total Question was 32
28 MCQ
And 4 Subjective
2 for 3 Num
And 2 for 5 Num
And the Subjective question was these…..

1) What is Individual resident status explain its different points?

2)If Mr. Kamal resident of Pakistan suffered a foreign loss against the income
received from foreign country in tax year. What is the treatment of such
foreign loss? Which section deals this kind of loss? Such losses can be
carried forward up to how many years?

3)What is association of person and how profit will be distributed among partners?

4)Profit on debt earned by a non-resident person is exempt from tax under clause (77) of Part I of the second schedule. Is this exemption only available to “Individuals” as reference has been made to persons being citizens of Pakistan or otherwise? Provide the details of this clause.

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FIN623 MIDTERM PAPER 2011 ALL IN 1 THREAD
Fin 623 my paper
There were 23 total questions
mcq`s were from all past papers
Five were subjective
Q1
Section 45 pride of performance president award? Marks 3
Q2
If Mr. Kamal resident of Pakistan suffered a foreign loss against the income
received from foreign country in tax year. What is the treatment of such
foreign loss? Which section deals this kind of loss? Such losses can be
carried forward up to how many years? 5marks
Q3
Tax treatment of utilites paid by a abc company to an employee in tax year 2009?

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RE: FIN623 MIDTERM PAPER 2011 ALL IN 1 THREAD
Total Question was 32*
*28 MCQ*
*And 4 Subjective*
*2 for 3 Num*And 2 for 5 Num*
*And the Subjective question was these…..*

*1)* What is Individual resident status explain its different points?*
2)*If Mr. Kamal resident of Pakistan suffered a foreign loss against the
income received from foreign country in tax year. What is the treatment of such Foreign loss? Which section deals this kind of loss? Such losses can be carried forward up to how many years?*

*3)*What is association of person and how profit will be distributed among partners?*

*4)* Profit on debt earned by a non-resident person is exempt from tax under clause (77) of Part I of the second schedule. Is this exemption only
available to “Individuals” as reference has been made to persons being
citizens of Pakistan or otherwise? Provide the details of this clause.*

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FIN 623 Midterm Paper

28 ==> MCQ
02 ==> 3 Number Questions
02 ==> 5 Number Questions

Subjective question were.…..

Question # 1: What is Individual resident status explain its different points? (3 Marks)

Question # 2: If Mr. Kamal resident of Pakistan suffered a foreign loss against the income received from foreign country in tax year. What is the treatment of such foreign loss? Which section deals this kind of loss? Such losses can be carried forward up to how many years? (3 Marks)

Question # 3: What is association of person and how profit will be distributed among partners? (5 Marks)

Question # 4: Profit on debt earned by a non-resident person is exempt from tax under clause (77) of Part I of the second schedule. Is this exemption only available to “Individuals” as reference has been made to persons being citizens of Pakistan or otherwise? Provide the details of this clause. (5 Marks)
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Question # 1: Under which circumstances business income of a non-resident person shall be considered as Pakistan-source income? (Marks 3)

Question # 2: Determine total income of Mr. Sharif, a non-resident individual for tax year 2009. Relevant data is given below:
i. Share of profit received in Singapore from a business controlled through a permanent establishment in Pakistan Rs 200,000.
ii. Salary income of Mr. Sharif from an employment in Pakistan Rs600,000
iii. Remittance received from China Rs 400,000
iv. Profit on debt received on deposits kept with a bank in Pakistan Rs 50,000
(5 Marks)

Question # 3: What is Employeement under the section of Income Tax Ordinance 2001? (3 Marks)

Question # 4: Describe the Tax tretement for the agricultural income that is being used by the cultivator as the raw material for his business? (5 Marks)
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OBJECTIVE FROM THE PAST PAPERS

29.Question No: 30 ( Marks: 3 )
Under which conditions any royalty is treated as Pakistan source income if it
is paid by: (3)
i. Resident person
ii. Non-resident person
30.Is award to a person by the president of Pakistan taxable? also write the section of those awards (3)
31.Explain Aid agreement w.r.t salary income (5)
32.Determine total income of Mr. Sharif, a non-resident individual for tax year
2009. Relevant data is given below: (5)
i. Share of profit received in Singapore from a business controlled
through a permanent establishment in Pakistan Rs 200,000.
ii. Salary income of Mr. Sharif from an employment in Pakistan
Rs600,000
iii. Remittance received from China Rs 400,000
iv. Profit on debt received on deposits kept with a bank in Pakistan Rs
50,000
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saima but

1) What is Individual resident status explain its different points?

2) If Mr. Kamal resident of Pakistan suffered a foreign loss against the income

received from foreign country in tax year. What is the treatment of such

foreign loss? Which section deals this kind of loss? Such losses can be

carried forward up to how many years?

What is association of person and how profit will be distributed among partners?

Profit on debt earned by a non-resident person is exempt from tax under clause (77) of Part I of the second schedule. Is this exemption only available to “Individuals” as reference has been made to persons being citizens of Pakistan or otherwise? Provide the details of this clause.

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Under which conditions any royalty is treated as Pakistan source income if it
is paid by: (3)

Answer:
i. Resident person
ii. Non-resident person
A royalty shall be Pakistan-source income if it is:
• Paid by resident person, except where the royalty is payable in respect of any right,
property, or information used, or services utilized for the purposes of a business carried on
by the resident outside Pakistan through a permanent establishment; or
• Borne by a permanent establishment in Pakistan of a non-resident person

Is award to a person by the president of Pakistan taxable? also write the section of those awards (3)

Answer:
Section 45 President’s Honour
(1) Any allowance attached to any Honour, Award, or Medal awarded to a person by the President of
Pakistan shall be exempt from tax under this Ordinance.
(2) Any monetary award granted to a person by the President of Pakistan shall be exempt from tax under
this Ordinance.

.Explain Aid agreement w.r.t salary income (5)

Answer:
Any salary received by an individual (not being a citizen of Pakistan) shall be exempt from tax
under this Ordinance to the extent provided for in an Aid Agreement between the Federal
Government and a foreign government or public international organization, where:
(a)the individual is either not a resident individual or a resident individual solely by reason of the
performance of services under the Aid Agreement;
(b) if the Aid Agreement is with a foreign country, the individual is a citizen of that country; and
© The salary is paid by the foreign government or public international organization out of funds
or grants released as aid to Pakistan in pursuance of such Agreement.

Determine total income of Mr. Sharif, a non-resident individual for tax year
2009. Relevant data is given below: (5)
i. Share of profit received in Singapore from a business controlled
through a permanent establishment in Pakistan Rs 200,000.
ii. Salary income of Mr. Sharif from an employment in Pakistan
Rs600,000
iii. Remittance received from China Rs 400,000
iv. Profit on debt received on deposits kept with a bank in Pakistan Rs
50,000

Solution: p#33

Particulars Gross total income if non-resident

Share of profit received 200,000
Salary income 600,000
Remittance received NIL
Profit on debt received NIL
total income 800,000

Question No: 30 ( Marks: 3 )
If Mr. Kamal resident of Pakistan suffered a foreign loss against the income
received from foreign country in tax year. What is the treatment of such
foreign loss? Which section deals this kind of loss? Such losses can be
carried forward up to how many years?
Answer
Foreign losses Sec.104: Deductible expenditures incurred by a person in deriving foreign source
income chargeable to tax under a head of income shall be deductible only against that income.
Foreign losses carried forward up to 6 years
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Mr. Irfan resident of Pakistan received salary from UK. He has also paid tax on his
salary from UK as per the tax laws prevailing there. What will be the tax treatment
of his salary as a Pakistani resident? Which section of the income tax ordinance
deals this scenario?
Answer Foreign-Source Salary Income [102]
Mr. Irfan’s salary from UK would be exempted from tax, because he has paid tax on his salary from UK. Under Foreign-Source Salary Income [section102] foreign source salary income of a resident individual will be exempt from tax, if he has paid foreign income tax in respect of such income. Payment of foreign tax means that the employer has deducted the tax at source and deposited the same to the revenue authorities of the country in which employment was exercised.

Q2: profit on debt in which conditions will be Pakistan source
of income.
1. Resident person (25) page
2-Non Resident Person (25) page.
Answer
Profit on debt shall be Pakistan-source income if it is-
(1) Paid by a resident person, except where the profit is payable in respect of any debt used for the purposes of a business carried on by the resident outside Pakistan through a permanent establishment; or
(2) Borne by a permanent establishment in Pakistan of a non-resident person.

3) Explain the two terms with their relevant sections (5 marks)
Resident individual (page 23,26,27)
Resident AOP(27,36,)
Answer
Resident Individual (Section 82)
• An individual shall be a resident individual for a tax year if the individual:
• is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and [eighty-three] days or more in the tax year; or
• is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year.
Resident Association of Persons Sec. 84
An association of persons shall be a resident association of persons for a tax year if the control and management of the affairs of the association is situated wholly or partly in Pakistan at any time in the year.

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najaf
My paper 18/05/2011

28 mcqs all from past papers

Q1. Resident and non resident person (Marks 3)
Q2. Returning Expatriate (Marks 3)
Q3. Royalties (Marks 5)
Q4. Profit on debt

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samiya sis
My Today FIN630 20 MAY 2011
Q: What you meant by Returning Expatriate? Explain Tax treatment under section 51?
Q: Treatment of Foreign loss of a resident person Mr Basit?section?
Q: Resident Individual and AOP?
Q: Bench Mark Rate?
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Pσяtαl A∂m!η Offline
Administrator
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Administrators Posts: 386
Joined: Apr 2011
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RE: FIN623 MIDTERM PAPER FALL 2011 MONTH OF MAY
Fin 623 my paper
There were 23 total questions
mcq`s were from all past papers
Five were subjective
Q1
Section 45 pride of performance president award? Marks 3
Q2
If Mr. Kamal resident of Pakistan suffered a foreign loss against the income
received from foreign country in tax year. What is the treatment of such
foreign loss? Which section deals this kind of loss? Such losses can be
carried forward up to how many years? 5marks
Q3
Tax treatment of utilites paid by a abc company to an employee in tax year 2009?
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Question # 2: Determine total income of Mr. Sharif, a non-resident individual for tax year 2009. Relevant data is given below:
i. Share of profit received Paper copy from vu thirty nine dot com in Singapore from a business controlled through a permanent establishment in Pakistan Rs 200,000.
ii. Salary income of Mr. Sharif from an employment in Pakistan Rs600,000
iii. Remittance received from China Rs 400,000
iv. Profit on debt received on deposits kept with a bank in Pakistan Rs 50,000
(5 Marks)

Question # 3: What is Employeement under the section of Income Tax Ordinance 2001? (3 Marks)

Question # 4: Describe the Tax tretement for the agricultural income that is being used by the cultivator as the raw material for his business? (5 Marks)
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ubjective Questions are:
Determine total income of Mr. khalid, a resident individual for tax year
2009. Relevant data is given below:
He get salary Rs.400,000.
He get profit on shares from UK Rs. 100,000.
He get remittance from India Rs.360,000. and
he get profit on debt Rs. 650,000. What is his gross total income. (marks : 5)

What is mean by the short-term resident. Identify the tax treatment? (marks : 5)

how differently tax treatment on resident and non resident person? (marks : 3)
Define employment & also mention section? (marks : 3)
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Question No: 31 ( Marks: 5 )
Why the right to acquire share is not chargeable to tax under Employee Share
Scheme section 14. Under what condition the right to acquire share under section
14 is taxable?
Answer:
Employee Share Schemes sec 14:
ƒThe value of a right or option to acquire share under this scheme shall be not chargeable to tax.
ƒWhere shares issued are subject to a restriction on transfer of the shares-
a)no amount shall be chargeable to tax under the head Salary until the earlier of-
i. the time the employee has a free right to transfer the shares; or
ii. the time the employee disposes of the shares &
b)the amount chargeable to tax to the employee shall be fair market value of shares at the time
employee has free right to transfer as reduced be any amount given as consideration for the grant
of a right or option to acquire the shares.
ƒWhere in a tax year an employee disposes of a right or option to acquire shares under an employee
share scheme, the amount chargeable to tax shall include the amount of any gain made on the
disposal computed accordance with the following formula:
A-B
ƒWhere A is the consideration received from the disposal of the right or option.
ƒB is the employee’s cost in respect of the right or option.
Question No: 32 ( Marks: 10 )
What is meant by Fiscal Policy?
Highlight the role of taxes in Fiscal Policy. Differentiate between Budget deficit
and Budget Surplus.

Answer:
What is Fiscal Policy?
Fiscal policy is a discipline that deals with arrangements which are adopted by government to
collect the revenue and make the expenditures so that social and economic stability could be attained /
maintained.
™ Objectives of Fiscal Policy
Economic Development
Raising level of employment (Achieving full employment level)
Influencing consumption patterns
Price stability
Redistribution of income
Removal of deficit in Balance of Payments
™ Instruments of Fiscal Policy
Government Expenditures
Taxes
Deficit Financing
Subsidies
Transfer Payments—like Unemployment Allowances etc.
Sources for Revenue Generation for State
ƒ Taxes, Tariffs
ƒ Internal & External Borrowing
ƒ Penalties & Fines
ƒ Aids & Grants
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Question No: 31 ( Marks: 5 )
Why Government levy tax on Person? What are the important elements that take
into consideration while levying tax?
Answer:
™ Taxes Vs Fees:
Taxes are compulsory levy and it is the legal obligation of the person to pay the amount of tax which is required to pay under the law, where as payment of fee is the discretion of any person and when a fee is paid, the person becomes an entitled to claim counter benefits.
™ Taxes are important instrument of Fiscal Policy.
Question No: 32 ( Marks: 10 )
Determine Gross total income of Mr. Imran in the light of following particulars
information pertaining to tax year 2008.
a. Dividends received in UK on 20th Aug 2008 from a Pakistani resident
company: amounting Rs. 50,000.
b. Interest on Swiss Bonds (one-third is received in Pakistan) Rs. 60,000.
c. Pension from Pakistan Government but received in New York Rs. 25,000.
d. Rent for tax year 2008 of a house property situated in New York and
received there on 01-01-2008; Rs.500,000.
e. Income from agriculture in New York received there but later on remitted
to Pakistan Rs.80,000.
Find out gross total income of Mr. Imran, if he is:
a. Pakistani resident
b. Non– resident
\\\\\\\\\\\\\\\\\\\\\\\\\\\\
Question No: 31 ( Marks: 5 )
Define Income that is charged to tax under section 2(9).
Answer:
Business Defined Section 2(9)
“Business includes any trade, commerce, manufacture, profession, vocation but doesn’t include employment”
Following incomes (except exempt income) shall be charged to tax under the head ‘Income from Business’.
a)Profits & Gains from any business in a tax year.
b)Income derived from any trade, profession, sale of goods or provision of any services.
c)Income from hire or lease of tangible movable property.
d)FMV of Perquisites derived by a person by virtue of business relationships.
e)Management Fee derived by a management company.
Income from Business also includes:
• Any profit on debt derived by a person. (it is only applicable to such person, whose is business is to
derive such income. e.g.; a banking company)
• Any amount received by schedule bank from mutual fund, as share of profit.
• Profit earned on debts in course business shall be chargeable to ‘income from business’.
• Income on leasing by lessor, being banks, leasing companies etc.
Income derived from any trade, profession, sale of goods or provision of any services.
• Income from hire or lease of tangible movable property
• FMV of Perquisites derived by a person by virtue of business relationships.
• Management Fee derived by a management company
Question No: 32 ( Marks: 10 )
Determine the legal status of the following persons under section 80 of the
ordinance.
1. Virtual University of Pakistan (company)
2. A joint family of Mr. Arun (a Hindu), Comprising Mr. Hamel, His sons
Mr. Kumar & Mr. Deepak (Hindu undivided family)
3 . Government of Punjab, Pakistan (company)
4. Edhi Welfare Trust (company)
5. Federal Government (person)
6 . Mr. Suleman & his wife Joint Owners in a House (Association of persons)
7. Alpha Cooperative Housing Society (company)
8. Mr. Ali & Babar Joint Owners in Building (Association of persons)
9. Mr. Imran Serving as a Manager in a Textiles Company (Individual)
10. Habib Modaraba (company)
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Question No: 29 ( Marks: 3 )
What is meant by reduction in tax liability? Give an example from Income Tax ordinance 2001?
Question No: 30 ( Marks: 3 )
If Mr. Kamal resident of Pakistan suffered a foreign loss against the income received from foreign country in tax year. What is the treatment of such foreign loss? Which section deals this kind of loss? Such losses can be carried forward up to how many years?
Question No: 31 ( Marks: 5 )
Define the following under the Income Tax Ordinance 2001 with their respective sections:
a. Resident Individual
b. Resident Associations of Persons
Question No: 32 ( Marks: 5 )
If Mr. Basit resident of Pakistan suffered a foreign loss against the income received from foreign country in tax year 2008-09. What is the treatment of such loss? Which section deals this kind of loss?
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Question No: 29 ( Marks: 3 )
What is meant by reduction in tax liability? Give an example from Income Tax ordinance 2001?
Question No: 30 ( Marks: 3 )
Define the employment as per its respective sections.
Question No: 31 ( Marks: 5 )
Define the following under the Income Tax Ordinance 2001 with their respective sections:
a. Resident Individual
b. Resident Associations of Persons
Question No: 32 ( Marks: 5 )
Mr. Bajwa resident of Pakistan received salary from UK. He claimed that he has also paid foreign tax in respect of his salary in UK. How his claimed will be verified and what is the tax treatment of his salary under which section of the income tax ordinance deals this scenario?
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: An association of persons named M/S Khan and sons has its
most of its branches in Pakistan is it sufficient to be resident
AOP or not?m5

Define the following their respective sections: m3
Employee
Employer
salary

Is the income of non- resident and resident taxed in Pakistan.define m5

define royalty under the ordience 2001.m5
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Collected By The S Team

Posted in Solved Past Papers and tagged AOP, Current Midterm Papers, fin623, Fin623 Current Midterm Papers, fin623 Mid Term Subjective Papers, income tax, old Papers, Past Papers, solved subjective papers, taxation Management, virtual university, Vu old papers, vuseekerz | Leave a Comment

MGT602 Entrepreneurship Final Term MCQ & Papers 100% Solved

MGT602 Entrepreneurship Final term Papers & MCQs

The resistance of employees in an organization against flexibility, growth, and diversification can be overcome by developing:

 Entrepreneurship

 Intrapreneurship

 Managerial domain

 Administrative domain

For the success of business plan the goals should be

 Limitless

 Generalized

 Specific

 Imaginary

LMM stands for:

 Locally Manufactured Machinery

 Locally Manufactured Marble

 Local Marble Market

 Local Meat Market

Which of the following is NOT essential part of the contract?

 All the parties involved should be named

 Transaction should be described in detail

 Obtain signatures of the persons involved

 Place where contract takes place

Normally sponsor links are used in which of the following type of promotion?

 Publicity

 Trade shows

 Personal selling

 Internet advertising

The Grameen Bank model is affectively used by which of the following institute?

 Education sector

 Finance Sector

 Rural Sector

 NGOs

Which one of the factors should be considered while assessing the space for business?

 Parking

 Access from roadways to facility

 Delivery rates

 All of the given options

An actor and a person who managed large project were termed as the entrepreneur in the

_________.

 Earliest period

 Middle ages

 17th century

 19th and 20th century

Which of the following usually is NOT deducted to the salaries?

 Provident fund

 Income Tex

 Insurance

 Zakat

LLC is more flexible than

 S Corporation

 Limited Partnership

 Sole Proprietor

 All of the above

Which of the following is NOT an example of collecting primary data?

 Internet

 Focus Group

 Interview

 Observation

Which two work environments should be good for spawning the new enterprises?

 Finance and marketing

 Finance and R&D

 Marketing and R&D

 Marketing and IT

Which one of the following should consider in economy while conducting environmental analysis?

 GNP

 Disposable income

 Unemployment

 Channel of distribution

__________ is commonly used to measure the short-term solvency of the venture?

 Debt to equity ratio

 Current ratio

 Profitability ratio

 Activity ratio

Which one of the following is a barrier to new product creation and development?

 Trial and error

 Opportunity parameter

 Opportunity cost

 Intrapreneurship culture

What is a target market?

 A group of customers a venture reaches by accident

 All consumers who purchase the venture’s product

 A specific group of potential customers toward which a venture aims its marketing plan

 A chain of discount stores

In stage of responsibility allocation process the entrepreneur follows:

 Highly centralized decision making process

 Highly decentralized decision making process

 Somewhat centralized decision making process

 No particular standard

Which one of the following is the process of entrepreneurs developing new products that over time make current products obsolete?

 Creative destruction

 New business model

 Anatomization

 None of the given options

Factors contribute to the creation of new venture EXCEPT:

 Government

 Finance

 High interest rates

 Role models

Which one of the following gives suggestions for new product but also helps to market

new product in the market?

 Existing products and services

 Distribution channels

 Federal government

 Consumers

The chief motivational factor for _________________ entrepreneurs to leave jobs is the frustration of not being allowed to perform at the level of which they are capable.

 Male

 Female

 Young

 All of the given options

Which of the following is the most important for the entrepreneur, while starting a new

venture, to make an assessment of?

 Risk

 Profit

 Market

 Competitors

An entrepreneur doing business within the national border is called:

 International entrepreneurship

 Intrapreneurship

 Domestic entrepreneurship

 Imports

A typical inventor is usually ________________________.

 Highly creative & in love with the invention

 Does not encourage change

 Willing to modify the invention in order to augment commercial benefit

 None of the given options

According to the governing bodies of common laws, the life of trade secret is:

 12 years

 17 years

 20 years

 As long as it remains confidential

A contract must be signed by:

 At least one party

 Both the parties

 Not necessary to sign

 By third party

Selling goods to another country by taking care of transactions is called:

 Indirect exporting

 Direct exporting

 Importing

 Management contract

Which of the following is alternatively called corporate venturing?

 Entrepreneurship

 Intrapreneurship

 Act of stating a new venture

 Offering new products by an existing company

In USA Public Limited Companies may have ______ Director/s

 1

 2

 3

 4

Which one of the following is an important source of idea generation due to their

familiarity with the needs of market?

 Existing products and services

 Distribution channels

 Federal government

In which of the following situation the company is considered to be on breakeven point?

 No Profit no lose

 Profits are higher then expenses

 Expenses are higher then profits

 None of the given options

Which of the following shows the example of collateral?

 Real State

 Shares

 Tangible property

 All of the given options

The difference in the entrepreneurial and managerial domains has contributed towards an increase interest in:

 Forming new firms

 Partnership

 Intrapreneurship

 Private firms

Which of the following is NOT a requirement of Disclosure Document?

 Description of the invention

 Claims for invention’s usefulness

 Photos of invention

 Cover letter

Professional support network includes following EXCEPT:

 Personal affiliations

 Mentor

 Trade associations

 Friends

Which of the following is NOT a characteristic of a marketing plan?

 It should be flexible

 It should be long and detailed

 It should be based on facts and valid assumptions

 It should provide a strategy

Degree of influence and control on other people is called:

 Locus of control

 Locomotion of control

 Locust of control

 Loss of control

Normally sponsor links are used in which of the following type of promotion?

 Publicity

 Trade shows

 Personal selling

 Internet advertising

Which of the following is essential if your business deals with the Paper production?.

 Operational Plan

 Bank loan

 Production plan

 Organizational plan

Which one of the following is NOT an internal factor?

 New technology

 Manufacturing

 Marketing

 Personnel

The longest lasting trade agreement with the objective of liberalizing trade by eliminating

or reducing tariffs, subsidies and quotas is:

 Free trade area – FTA

 European community – EC

 General agreement on tariffs and trade – GATT

 The North American free trade agreement – NAFTA

In which of the following business, the records are needed to be maintained on the basis

of monthly charges paid by the customers?

 Pharmaceutical

 Service venture

 Online venture

 Auto industry

Which of the following is the previous name of SME?

 SPCC

 SMEDA

 SBFC

 FMBC

The entrepreneur’s_______________ depends on his perception of the opportunity.

 Commitment to opportunity

 Commitment of resources

 Control of resources

 Strategic orientation

Which of the following are the key factors for choosing the type of financing?

 Availability of funds

 Assets of the venture

 Prevailing interest rates

 All of the above options

The difference between the value of a country’s imports and exports over time is called:

 Deficit exports

 Deficit imports

 Balance of payment

 Balance of debt

Licensing is a significant marketing strategy to:

 Use intellectual property of others

 Pirate others’ patents

 Grow the business in new markets

 Control the costs

The _________ plan should contain control points to ascertain progress.

 Business

 Marketing

 Financial

 Operational

Which one of the following method shows the term which is related to starting from

scratch to a bigger picture?

 Upward movement method

 Incremental method

 Downward movement method

 None of the above options

Which is one of the most important leadership qualities among managers and employees

in the organization?

 Entrepreneurship

 Communication

 Motivation

 Staffing

Which of the following contains large number of new ideas?

 Files of Patent office

 Official Gazette

 Government patent Board

 All of the given option

Which of the following firm achieves modest growth:

 High potential growth firm

 Foundation firm

 Life style

 Public company

Which of the following is representing a single expense account?

 Depreciation

 Cash account

 Wages & Salaries

 Utilities account

Which one of the following is a barriers to new product creation and development?

 Trial and error

 Opportunity parameter

 Opportunity cost

 Intrapreneurship culture

Targeting the market consists of ______ Procedures

 1

 2

 3

 4

Which one of the following is important for international business to avoid trade barriers?

 Protectionist attitude

 Entrepreneurial partnering

 Free trade areas

 None of the given options

Which of the following ratio will be helpful for assessing the firm’s capital structure?

 Current ratio

 Acid test ratio

 Profitability ratio

 Debt to equity ratio

A typical inventor is usually ________________________.

 Highly creative & in love with the invention

 Does not encourage change

 Willing to modify the invention in order to augment commercial benefit

 None of the given options

Following are the types of non equity arrangements EXCEPT:

 Licensing

 Management contracts

 Direct export

 Turnkey projects

In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier

between ages of:

 15 and 22

 22 and 45

 45 and 57

 57 and 63

Which of the following is included in the description of the business?

 Location

 Products offered

 History

 All of the given options

Companies identify their assets with the date of purchase, because it can be helpful in

determining depreciation for:

 Goodwill

 Trade rebate

 Tax purposes

 Capital structuring

What is the primary concern of founders who trade equity for capital for their growing

venture?

 Capitalization

 Investor capabilities

 Valuation

 Control

The creative process for problem solving that involves making the strange familiar in first

step and then making the familiar strange through personal, direct or symbolic analogy is

called:

 Synectics

 Gordon method

 Checklist method

 Scientific method

Capital rising entirely depends on the entrepreneur in which of the following entity?

 Corporation

 Sole Proprietorship

 Partnership

 All of the above

Which of the following is another exit to the equity partnership arrangement?

Impartial partnership

 General partnership

 Royalty partnership

 Minor partnership

Selling goods to another country through a person in the entrepreneur’s home country is known as:

 Trading

 Direct export

 Indirect export

 Domestic sales

Developing a new idea through inquiry and testing is called:

 Heuristics

 Forced relationship

 Scientific method

 Value analysis

What can be the effect on cash flows due to delays in payments by the clients?

 Positive cash flows

 Negative cash flows

 No effect on cash flows

 None of the given options

The Marketing Plan section should focus for the strategies of

 First Year

 First two years

 First Three Years

 First four years

The business plan should be prepared by:

 Entrepreneurs

 Consultants

 Engineers

 All of above options

All of the following are essential to maintain secrecy EXCEPT:

 Train employees to refer sensitive questions to one person

 Discuss business in public places

 Provide escorts for all office visitors

 Use simple security such as locked file cabinets

Assessment of the needed resources by the entrepreneur starts with:

 An appraisal of the entrepreneur’s present resources

 An assessment of economic conditions of the country

 A scanning of friends and family for funds

 A survey of banks and other financial institutions in the area

The former USSR received technology and syrup from Pepsi and provided it with Soviet

vodka and rights to distribute it in the US. This is an example of:

 Economic development

 Barter system

 Balance of payment

 International trade

Health insurance premium is less expensive if there is:

 One insured participants

 Ten participants

 Large group of participants

 Very small group of participants

In which of the following year implementation of SBA Financial plan took place?

 1971

 1972

 1973

 1974

The resources acquired from others(creditors, banks etc) are usually:

 Easily available

 Difficult to obtain

 Very useful

 Very cheap

Lenders are primarily interested in the:

 Personal relationship

 Ability to pay back loan

 Progress of the venture

The entrepreneur utilizes the resources through:

 Identifying and evaluating the opportunity

 Developing a business plan

 Implementing the business plan

 Manage the enterprise

Focus group discussion carries in

 Formal Way

 Informal Way

 Both of the above

 Problemat way

Which one of the following best represents the environment of an entrepreneurial

oriented organization?

 Corporate culture

 Entrepreneurial culture

 Intrapreneurial culture

 Traditional culture

Question No: 1 ( Marks: 1 ) – Please choose one The level at which an individual is viewed by society is called:

► Financial status

► Qualification

► Social status

► Achievement

Question No: 2 ( Marks: 1 ) – Please choose one Individuals who help the entrepreneur in business activities are called:

► Role models

► Moral support networks

► Professional support networks

► Business support networks

Question No: 3 ( Marks: 1 ) – Please choose one Following are the problems in developing the economies EXCEPT:

► Gap of knowledge

► Variable rate of return

► Same communication style

► Different accounting system

Question No: 4 ( Marks: 1 ) – Please choose one Which one of the following is a business arrangement in which someone else is allowed

to use something of the company?

► Patent

► Trade mark

► Copy right

► Licensing

Question No: 5 ( Marks: 1 ) – Please choose one Which of the following method entrepreneur can use to do international business with

least risk?

► Turnkey projects

► Joint venture

► Merger

► Synergy

Question No: 6 ( Marks: 1 ) – Please choose one Combination of at least two firms at different market levels is called:

► Joint venture

► Synergy

► Horizontal merger

► Vertical merger

Question No: 7 ( Marks: 1 ) – Please choose one A patent is granted for a specified amount of time because of the assumption:

► That during this time firm will cover its development costs

► That firm will earn a sufficient profit during this period

► To limit the monopoly of the firm

► That it will stimulate idea and development of a better product

Question No: 8 ( Marks: 1 ) – Please choose one A/an ______ is an online connection between the company and its customers.

► Internet advertising

► Website

► E-Commerce

► World Wide Web

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is the next stage to the Concept Stage of Product Planning

and Development Process?

► Idea Stage

► Product Planning Stage

► Product Development Stage

► Test Marketing Stage

Question No: 10 ( Marks: 1 ) – Please choose one Which of the followings give the owners a negative right, preventing anyone from

making, using, or selling the invention?

► Patent

► Copyright

► Trade mark

► Trade secret

Question No: 11 ( Marks: 1 ) – Please choose one Which one of the following is a longest lasting trade agreement with the objective of

liberalizing trade by eliminating or reducing tariffs, subsidies and quotas?

► Free trade area – FTA

► European community – EC

► General agreement on tariffs and trade – GATT

► The North American free trade agreement – NAFTA

Question No: 12 ( Marks: 1 ) – Please choose one Which of the following grants protection to owner from anyone else making, using and selling the identified innovation?

► Utility patent

► Design patent

► Plant patent

► International patent

Question No: 13 ( Marks: 1 ) – Please choose one Which one of the followings statements is NOT true about trademarks?

► The entrepreneur can not file after the mark already been in use

► A trademark could be a slogan or a particular sound

► Some trademarks have no relationship with the product

► The filing date for the trademark becomes the first date use of the mark

Question No: 14 ( Marks: 1 ) – Please choose one According to the governing bodies of common laws, the life of trade secret is:

► 12 years

► 17 years

► 20 years

► As long as it remains confidential

Question No: 15 ( Marks: 1 ) – Please choose one Which one of the following is the main problem for the entrepreneur in the beginning

stages of creating a new venture?

► Lack of experience

► Limited resources

► Lack of education

► None of the given options

Question No: 16 ( Marks: 1 ) – Please choose one Which one of the following protects continuity of the business(specially in

partnership)?

► Property insurance

► Casualty insurance

► Life insurance

► Bonding

Question No: 17 ( Marks: 1 ) – Please choose one A legally binding agreement between two parties is called:

► A contract

► Licensing

► Insurance

► A copyright

Question No: 18 ( Marks: 1 ) – Please choose one Information regarding all of the following is related to operations, EXCEPT:

► Location

► Promotion

► Raw materials

► Labor skills

Question No: 19 ( Marks: 1 ) – Please choose one Which of the following is NOT studied in industry analysis?

► Economic conditions

► Technology advancements

► Organizational culture

► Legal concerns

Question No: 20 ( Marks: 1 ) – Please choose one Which one of the factors should be considered while assessing the location for

business?

► Parking

► Access from roadways to facility

► Delivery rates

► All of the given options

Question No: 21 ( Marks: 1 ) – Please choose one Which one of the following is NOT included in four C’s evaluation by lender?

► Character

► Cost

► Continuity

► Contribution

Question No: 22 ( Marks: 1 ) – Please choose one Which of the following is a characteristic of a good partner?

► Help to achieve goals

► Share entrepreneur’s vision

► Do not exploit the partnership

► All of the given options

Question No: 23 ( Marks: 1 ) – Please choose one Having more than 50% ownership position that provides the entrepreneur with

managerial control is called:

► Joint venture

► Majority interest

► Horizontal merger

► Diversified activity merger

Question No: 24 ( Marks: 1 ) – Please choose one Which one of the following is a sound strategic option for an entrepreneur when

synergy is present?

► Merger

► Joint venture

► Minority interest

► Majority interest

Question No: 25 ( Marks: 1 ) – Please choose one Which of the following is a method of selling goods to another country by taking care

of transactions?

► Indirect exporting

► Direct exporting

► Importing

► Management contract

Question No: 26 ( Marks: 1 ) – Please choose one Following are the types of non-equity arrangements EXCEPT:

► Licensing

► Management contracts

► Direct export

► Turnkey projects

Question No: 27 ( Marks: 1 ) – Please choose one Andrew Carnegie is an example of entrepreneur of which century:

► Earliest period

► 19th and 20th century

► Middle ages

► 17th century

Question No: 28 ( Marks: 1 ) – Please choose one A person who managed large project was termed as the entrepreneur in the _________.

► Earliest period

► Middle ages

► 17th century

► 19th and 20th century

Question No: 29 ( Marks: 1 ) – Please choose one In some countries, point of purchase displays are not allowed in retail stores. Such

differences are studied by international entrepreneurs under __________.

► Economic Environment

► Political Environment

► Cultural Environment

► Technological Environment

Question No: 30 ( Marks: 1 ) – Please choose one

Which of the following factor is most important in forming a new business?

► Finance

► Marketing

► Government support

► Family support

Question No: 31 ( Marks: 1 ) – Please choose one Most of the finance for the new firm comes from following resources EXCEPT:

► Friends

► Foreign aid

► Relatives

► Personal savings

Question No: 33 ( Marks: 1 ) – Please choose one The intersection of knowledge and a recognized social need to start a product

development process is called which of the following?

► Iterative synthesis

► Product-evolution process

► Ordinary innovation

► Situation analysis

Question No: 34 ( Marks: 1 ) – Please choose one A foundation company is formed through which of the following?

► Fashion

► Most popular business

► A winding up company

► Research and development

Question No: 35 ( Marks: 1 ) – Please choose one Which of the following factors is the most important in forcing U.S companies to focus

on new product development and increased productivity?

► Entrepreneurship

► Hyper competition

► Governmental laws

► Organizational culture

Question No: 38 ( Marks: 1 ) – Please choose one Individuals influencing an entrepreneur’s career choice and style are known as which of

the following?

► Role model

► Moral-support network

► Professional support network

► Support system

Question No: 39 ( Marks: 1 ) – Please choose one An entrepreneur is also successful in international business as well if he understands:

► Difference of domestic and international business

► Domestic business

► International business

► None of the given options

Question No: 40 ( Marks: 1 ) – Please choose one Which of the following is NOT an important aspect of international success?

► Planning

► Diversification

► Reporting

► Control

Question No: 41 ( Marks: 5 ) What is meant by role models? What role do they perform?

Question No: 42 ( Marks: 5 )

Briefly discuss the product planning and development process.

MIDTERM EXAMINATION

Spring 2009

MGT602- Entrepreneurship (Session – 4)

Time: 60 min

Marks: 50

Question No: 1 ( Marks: 1 ) – Please choose one

Which of the following has not yet been empirically established as a

distinguishing characteristic of entrepreneurs?

► Locus of control

► Feeling about independence

► Need for achievement

► Risk taking

Which one of the following is a business arrangement in which someone else is allowed

to use something of the company?

► Patent

► Trade mark

► Copy right

► Licensing

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following method entrepreneur can use to do international business with

least risk?

► Turnkey projects

► Joint venture

► Merger

► Synergy

Question No: 5 ( Marks: 1 ) – Please choose one

A company dealing in beer has a merger with cigarettes manufacturing firm. This merger

is called:

► Horizontal merger

► Product extension merger

► Market extension merger

► Vertical merger

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following is an important source of idea generation due to their

familiarity with the needs of market?

► Existing products and services

► Distribution channels

► Federal government

► Consumers

Question No: 7 ( Marks: 1 ) – Please choose one

Members of distribution channels are excellent sources for new ideas because:

► They are familiar with the needs of the market

► They earn a handsome profit from new business

► They do not bother if entrepreneur bears a loss

► They have well-developed sales force

Question No: 8 ( Marks: 1 ) – Please choose one

Which one of the following is the most important characteristic of a successful

business websit?

► Speed

► Innovation

► Graphics

► Products

According to the governing bodies of common laws, the life of trade secret is:

► 12 years

► 17 years

► 20 years

► As long as it remains confidential

Question No: 11 ( Marks: 1 ) – Please choose one

SBA stands for:

► Small business accountants

► Small business administration

► Small business adequacy

► Small business advisors

Question No: 12 ( Marks: 1 ) – Please choose one

Why should an entrepreneur do a feasibility study for starting a new venture?

► To see if there are possible barriers to success

► To identify possible sources of funds

► To estimate the expected sales

► To explore potential customers

Question No: 13 ( Marks: 1 ) – Please choose one

Information regarding all of the following is related to operations, EXCEPT:

► Location

► Promotion

► Raw materials

► Labor skills

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following guide the firm through the long term decision making?

► Mission statement

► Product forecast

► Industry analysis

► None of the given options

Question No: 15 ( Marks: 1 ) – Please choose one

Which of the following is included in the description of the business?

► Location

► Products offered

► History

► All of the given options

Question No: 16 ( Marks: 1 ) – Please choose one

For which of the following copy right acquisition is desirable?

► Songs

► Poems

► Models

► All of the given options

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following is TRUE for Disclosure Document?

► It gives recognition that he was the inventor of the idea in past

► It gives recognition that he is the first the inventor of the idea

► It gives recognition that he will be the invent an idea in future

► It gives recognition that he wants to copy the idea

Question No: 18 ( Marks: 1 ) – Please choose one

Which of the following is idea generation method that focuses on parameters?

► Brainstorming

► Reverse brainstorming

► Creative problem solving

► Synoptic

Question No: 19 ( Marks: 1 ) – Please choose one

The transitional disturbance and lack of reform has led to a booming black market in:

► China

► Hungary

► Singapore

► Poland

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following geographical area is of least interest to U.S entrepreneurs?

► Europe

► The Far East

► Central Asia

► Transition economies

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following gives suggestions for new product and also help to market

new products?

► Existing products and services

► Distribution channels

► Federal government

► Consumers

Question No: 22 ( Marks: 1 ) – Please choose one

Which of the following is used by entrepreneurs to acquire experience in an international

market before making a major commitment?

► Merger

► Joint venture

► Minority interest (Doubted)

► Majority interest

Question No: 23 ( Marks: 1 ) – Please choose one

GATT is established in 1947, under:

► German leadership

► French leadership

► U.S. leadership

► U.K. leadership

Question No: 24 ( Marks: 1 ) – Please choose one

The entrepreneur was distinguished from capital provider in:

► Middle ages

► 18th century

► 17th century

► 19th and 20th century

Question No: 25 ( Marks: 1 ) – Please choose one

A person who managed large project was termed as the entrepreneur in the _________.

► Earliest period

► Middle ages

► 17th century

► 19th and 20th century

Question No: 26 ( Marks: 1 ) – Please choose one

Which of the following factor is most important in forming a new business?

► Finance

► Marketing

► Government support

► Family support

Question No: 27 ( Marks: 1 ) – Please choose one

What is the process by which individuals pursue opportunities without regard to

resources they currently control?

► Startup management

► Entrepreneurship

► Financial analysis

► Feasibility planning

Question No: 29 ( Marks: 1 ) – Please choose one

Which of the following shows the process of creating something new?

► Business model

► Modeling

► Innovation

► Creative flexibility

In the administrative domain, the commitment of resources is for which of the

following?

► Periodic intervals

► Total amount needed

► For certain tasks

► For long time

Question No: 32 ( Marks: 1 ) – Please choose one

Which of the following is alternatively called corporate venturing?

► Entrepreneurship

► Entrepreneurship

► Act of stating a new venture

► Offering new products by an existing company

Question No: 33 ( Marks: 1 ) – Please choose one

Which is the most common cause of business failure?

► Insufficient capital

► Unstable market

► Insufficient experience

► Poor entrepreneurship

Question No: 34 ( Marks: 1 ) – Please choose one

Which of the following areas are preferred by women entrepreneurs?

► Administration

► Utilities

► Manufacturing

► None of the above

Question No: 35 ( Marks: 1 ) – Please choose one

Degree of influence and control on other people is called:

► Locus of control

► Locomotion of control

► Locust of control

► Loss of control

Question No: 36 ( Marks: 1 ) – Please choose one

Individuals influencing an entrepreneur’s career choice and style are known as which of

the following?

► Role model

► Moral-support network

► Professional support network

► Support system

Question No: 37 ( Marks: 1 ) – Please choose one

The activity which occurs when the new venture is started is called:

► Motivation

► Business skills

► Departure point

► Goal orientation

1. An entrepreneur’s primary motivation for starting a business is

a. To make money

b. To be independent

c. To be famous

d. To be powerful

2. To be successful in an entrepreneurial venture, you need

a. Money

b. Luck

c. Hard work

d. A good idea

3. Entrepreneurs are best as

a. Managers

b. Venture capitalists

c. Planners

d. Doers

4. A successful entrepreneur relies on which of the following for critical management advice

a. Internal management team

b. External management professionals

c. Financial sources

d. No one

5. Entrepreneurs are:

a. High risk takers

b. Moderate risk takers

c. Small risk takers

d. Doesn’t matter

6. Entrepreneurs typically form

a. Service businesses

b. Manufacturing companies

c. Constructive companies

d. A variety of ventures

7. Entrepreneurs:

a. Are the life of the party

b. Are bores at a cocktail party

c. Will never go to parties

d. Just fit into the crowd at a party

8. Entrepreneurs and ventures capitalists:

a. Get along well

b. Are the best friends

c. Are cordial friends

d. Are in conflict

9. An entrepreneur’s primary motivation for high ego and need for

achievement is based upon a relationship with:

a. Spouse

b. Mother

c. Father

d. Children

10. An individual usually begins his or her first significant entrepreneurial

business enterprise at what age

a. Teens

b. Twenties

c. Forties

d. Fifties

1. Personal characteristics to be a successful entrepreneur includes

e. Understanding environment

f. Creating management options

g. Encourage open discussion

h. All of the above

2. Without top management commitment, the organization will

e. Be able to make changes

f. Not be able to make any changes

g. Not be able to make effective changes

h. None of the above

3. Entrepreneurial experience becomes increasingly important as

e. Work load increases

f. Complexity of venture increases

g. Complexity of wok increases

h. None of the above

4. Entrepreneurs are concerned about basic issues of:

e. Sales, costs and benefits

f. Customers, sales and costs

g. Risk, costs and benefits

h. None of the above

5. Licensing arrangements have

e. Low risk process involved

f. Easy way to generate incremental income

g. Several pitfalls

h. All of the above

6. Joint ventures have been used by entrepreneur:

e. When the entrepreneur wants to purchase local knowledge

f. When rapid entry in to the market is needed

g. Both of the options given

h. None of the above

7. A horizontal merger is

e. Is the combination of firms in successive stages of production

f. Is the combination of firms that produce closely related projects

in same area

g. Is the combination of firms that produce same products and sell in

different areas

h. None of the above

8. Main reason(s) for merger is (are)

e. When synergy is present

f. When complementary resources can be combined

g. Economies of scale can be achieved

h. All of the above

9. First stage of production planning and development processes is

e. Idea stage

f. Concept stage

g. Establishing and evaluating criteria stage

h. None of the above

1. NAFTA stands for:

a) North American Free Trade Agreements

b) North Asian Free Trade Agreements

c) National Asian Free Trade Agreements

d) National American Free Trade Agreements

2. The factor______________ is probably the most prevalent reason for mergers.

a) Taxation

b) Economies of scale

c) Inflation

d) Mergers

3. A _____________ merger is a combination of two firms producing the same products but selling them in different geographic markets.

a) Diversified Activity Merger

b) Product Extension Merger

c) Vertical Merger

d) Market Extension Merger

4. One of the most frequent reasons an entrepreneur forms a joint venture is to share the ________________.

a) Resources b) Cos t c) Cost and risk of

a project d) Profit

5. _______________ involves having a foreign purchaser in the local market or using an export management firm.

a) Direct Exporting

b) Indirect Exporting

c) Management Contracts

d) Turn-Key Projects

6. The ______________measures the payments that flow between any individual country and all other countries.

a) International Business

b) Economies of Scales

c) Balance of Payment

d) None of the given options

7. ________________ is an entrepreneurial type who quickly identifies new promising business opportunities but rarely, if ever, follows through on the opportunity to create a successful new venture.

a) Simplicity Sue

b) Shotgun Sam

c) Hidden Agenda Harry

d) Inventor Irving

8. One study found that the typical minority business owner was the

a) Oldest child in a blue-collar family and married.

b) Oldest child in a white-collar family and married.

c) Youngest child in a blue-collar family and married.

d) Youngest child in a white-collar family and married.

9. Traditional managers are:

a) Deals with mistakes and failures

b) Tries to avoid mistakes and surprises

c) Attempts to hide risky projects from view until ready

d) None of the given Options

11. Risk decisions are often postponed until

a) Hard facts can be gathered or a consultant hired to illuminate the

unknown.

b) Hard facts can be gathered or an auditor hired to illuminate the

unknown.

c) There is no need to gather facts and hired a consultant/auditor

d) None of the given options

12. _________________ is one method of stimulating, and then

capitalizing on, individuals in an organization who think that

something can be done differently and better.

a) Strategic Orientation b) Capitalization

c) Intrapreneurship d) Management

13. The typical _________________ has a climate and reward system

that favor conservative decision making.

a) Entrepreneurship culture

b) Corporate culture

c) Intrapreneurial culture

d) None of the given options

14. Female entrepreneurs normally start their venture at the age of

_____________ years.

a) 35-45 b) 25-30 c) 20-25 d) 40-45

15. Male entrepreneurs normally start their venture at the age

of____________ years.

a) 20-25 b) 25-35 c) 40-50 d) After the age of retirement.

16. The ________________ is the process through which innovation develops and commercializes through entrepreneurial activity, which in turn stimulates economic growth.

a) Product-evolution process

b) Technological innovations

c) Breakthrough innovations

d) None of the given options

17. A____________________ is a type of company formed from research and development that usually does not go public.

a) Foundation

b) Life-Style Firm c) High-Potential Venture d) Both

b and c

18. _________________ involve such things as writing, listening, oral presentations, coaching and technical know-how.

a) Business Management skills

b) Personal entrepreneurial skills

c) Technical skills

d) None of the given options

19. The ___________________ means to do things in his or her own

way and time.

a) Need per independence

b) Need for achievement

c) Personal values

d) Ethics

20. ________________ is a reason or set of reasons for engaging in a

particular behavior, especially human behavior.

a) Moral value

b) Act

c) Motivation

1. Any patents, trademarks , copyright or trade secrets held by the

entrepreneur is known as

a. Disclosure document

b. Patent

c. Intellectual property

d. None of the mentioned

2. The organization will never be able to make the necessary changes

without_________

a. Top management commitment

b. Employees

c. Workers

d. None of the mentioned

3. The ways entrepreneurs make decisions.

a. Entrepreneurial domain.

b. Reverse brain storming

c. Heuristics

d. Reverse brain storming

4. A trademark is

5. A word, symbol, name or device that a business uses to identify its

goods.

a. A legal protection for information on foreign products.

b. Legal protection for intellectual works.

c. Legal protection for a U.S. product exported to another country.

6. locus of control is

e. A feeling

f. Attitude

g. Attribute

h. None of the above

7. Licensing arrangements have

i. Low risk process involved

j. Easy way to generate incremental income

k. Several pitfalls

l. All of the above

8. Personal characteristics to be a successful entrepreneur includes

i. Understanding environment

j. Creating management options

k. Encourage open discussion

l. All of the above

9. International entrepreneurship is

a. Licensing

b. Exporting

c. Both of the mentioned options

d. None of the two mentioned

Which of the following is not a characteristic that is helpful for an

entrepreneur to have?

a. Self-esteem

b. Caution

c. Drive

10. Hindrance for going in the international business is known as

a. Synergy

b. Turn key point

c. Trade barrier

d. Minority interest

1. An entrepreneur’s primary motivation for starting a business is

m. To make money

n. To be independent

o. To be famous

p. To be powerful

2. To be successful in an entrepreneurial venture, you need

i. Money

j. Luck

k. Hard work

l. A good idea

4. A successful entrepreneur relies on which of the following for critical

management advice

i. Internal management team

j. External management professionals

k. Financial sources

l. No one

6. Entrepreneurs typically form

m. Service businesses

n. Manufacturing companies

o. Constructive companies

p. A variety of ventures

7. Entrepreneurs:

i. Are the life of the party

j. Are bores at a cocktail party

k. Will never go to parties

l. Just fit into the crowd at a party

8. Entrepreneurs and ventures capitalists:

i. Get along well

j. Are the best friends

k. Are cordial friends

l. Are in conflict

9. An entrepreneur’s primary motivation for high ego and need for achievement is based upon a relationship with:

i. Spouse

j. Mother

k. Father

l. Children

10. An individual usually begins his or her first significant entrepreneurial business enterprise at what age

i. Teens

j. Twenties

k. Forties

l. Fifties

10. Personal characteristics to be a successful entrepreneur includes

q. Understanding environment

r. Creating management options

s. Encourage open discussion

t. All of the above

11. Entrepreneurial experience becomes increasingly important as

m. Work load increases

n. Complexity of venture increases

o. Complexity of wok increases

p. None of the above

12. Entrepreneurs are concerned about basic issues of:

i. Sales, costs and benefits

j. Customers, sales and costs

k. Risk, costs and benefits

l. None of the above

13. Licensing arrangements have

q. Low risk process involved

r. Easy way to generate incremental income

s. Several pitfalls

t. All of the above

14. Joint ventures have been used by entrepreneur:

m. When the entrepreneur wants to purchase local knowledge

n. When rapid entry in to the market is needed

o. Both of the options given

p. None of the above

15. A horizontal merger is

m. Is the combination of firms in successive stages of production

n. Is the combination of firms that produce closely related projects

in same area

o. Is the combination of firms that produce same products and sell in

different areas

p. None of the above

16. Main reason(s) for merger is (are)

m. When synergy is present

n. When complementary resources can be combined

o. Economies of scale can be achieved

p. All of the above

17. First stage of production planning and development processes is

m. Idea stage

n. Concept stage

o. Establishing and evaluating criteria stage

p. None of the above

1. What causes people to do something?

Need for achievement

Need for independence

Motivation

None of the mentioned options

2. Individuals who help the entrepreneur in business activities

Role models

Professional-support network

Parents

None of the mentioned options

3. The managers in an organization strongly supporting

intrapreneurship is called ———

Top management commitment

Upper management commitment

Lower management intrapreneur

Upper management intrapreneur

4. ————- involves a manufacturer giving a foreign manufacturer

the right to use a patent, trademark or technology in return for a

royalty

Licensing

Turn-key projects

Management contracts

1. A set of reasons for engaging in a particular behavior, especially human

behavior is

known as _____________.

a. Values

b. Vision

c. Entrepreneurship

d. Motivation

2. Which of the following techniques is an excellent method for

initially screening ideas and concepts in addition to generating new

ideas?

a. Focus group

b. Brain storming

c. Problem inventory analysis

d. Reverse brainstorming

3. The creative process for problem solving that involves making the

strange familiar in first step and then making the familiar strange

through personal, direct or symbolic analogy is called _________.

a. Synoptic

b. Gordon method

c. Checklist method

d. Scientific method

4. When the multiplicity of environments become too complex to

handle, the international entrepreneurs often __________.

a. Go for mergers

b. Diversify

c. Decentralize operations

d. Sale out the foreign business

5. An entrepreneur into the hosiery business found out the reason his

hosiery was not selling was due to its color. What could be the best

source of this information?

a. Supplier

b. Retailer

c. Competition

d. Government bureau

7. Entrepreneurial success has been significant because of the culture

and the political and economic systems in _________.

a. European countries

b. Asian countries

c. Transition economies

d. Middle east

9. The under-developed or lesser developed countries need

manufacturing technology

and infrastructure and yet do not want to turn over substantial portion

of their

economy to foreign ownership. Which of the following is a solution to

this dilemma?

a. Management contract

b. Indirect exporting

c. Licensing

d. Turn-key project

10. The development of a new venture based on an inventor’s work

often requires

________.

a. Expertise of an entrepreneur

b. Heavy investment from financers

c. Skilled human resources

d. Highly educated staff

Solution No. 1

Gazelles are the firms with:

High growth rate

Moderate growth rate

Zero% growth rate

Low growth rate

The resources acquired from others(creditors, banks etc) are usually:

Easily available

Difficult to obtain

Very useful

Very cheap

Which of the following firm achieves modest growth:

High potential growth firm

Foundation firm

Life style

Public company

Which of the following statements about the intrepreneurial climate is (are) true?

Trial and error are discouraged.

Resources of the firm need to be available and easily accessible

A multidisciplinary approach is discouraged.

Failures are not allowed

The difference in the entrepreneurial and managerial domains has contributed

towards an increase interest in:

Forming new firms

Partnership

Intrapreneurship

Private firms

The commitment of administrative domain to the resources is for:

Periodic intervals

Total amount needed

For certain tasks

For long time

Which one of the following is NOT an intrapreneurial leadership characteristic?

Understands environment

Encourage the team work

Not flexible

Persistent

Factors contribute to the creation of new venture EXCEPT:

Government

Finance

High interest rates

Role models

The activities which occur when the new venture is started are called:

Motivation

Goal orientation

Departure point

Business skills

The entrepreneur must possess the abilities:

Creative

Conceptualization

Understanding environment

All of the given options

In terms of chronological age, most entrepreneurs initiate their entrepreneurial

carrier between ages of:

15 and 22

22 and 45 22 55

45 and 57

57 and 63

Which of the following factors does not affect a person for being an

entrepreneur?

Family background

Education

Personal values

Gender

The chief motivational factor for _________________ entrepreneurs to leave

jobs is the frustration of not being allowed to perform at the level of which they

are capable.

Male

Female

Young

All of the given options

The activities which occur when the new venture is started are called:

Motivation

Goal orientation

Departure point

Business skills

Which one of the following is NOT an intrapreneurial leadership characteristic?

Understands environment

Encourage the team work

Not flexible

Persistent

The startups which rarely go public are called:

Life style

Foundation Company

Small company

High potential venture

It is proved that most businesses failed because of improper planning of an/a:

Investor

Marketer

Entrepreneur

Consultant

Which one of the following culture that has a climate and reward system that

favor conservative decision making?

Entrepreneurial

Intrapreneurial

Corporate

None of the given options

Which one of the following is the fourth step in the entrepreneurial process?

Developing successful business ideas

Deciding to become an entrepreneur

Growing the entrepreneurial firm

Moving from an idea to an entrepreneurial firm

All of the following are the broad categories of External forces EXCEPT:

Economic forces

Socioeconomic forces

Technological forces

Competitive forces

External forces directly affect all of the following EXCEPT:

Market segmentation strategies

Types of products/services offered

Management structure of organization

Choice of businesses to acquire or sell

There is evidence that an entrepreneur usually has _______________ parents.

Self employed

Discouraged

Non supportive

Strict

Government can help in forming new venture by providing:

Finance

Technology

Infrastructure

Subsidiaries

The decision to start a new business is taken when one perceives that forming a

new business is:

Possible

Desirable

Accurate

Both a and b

entrepreneurs differ from male entrepreneurs in terms of following EXCEPT:

Motivation

Business skills

Departure point ???

Goal orientation

An entrepreneur into the hosiery business found out the reason his hosiery was

not selling was due to its color. What could be the best source of this

information?

Supplier

Retailer

Competition

Government bureau

of the following factors has allowed small companies to act like they are big

ones?

Competition

Economic development

Technology

Customers

Which two work environments should be good for spawning the new enterprises?

Finance and marketing

Finance and R&D

Marketing and R&D

Marketing and IT

Which of the following receives highest investment?

High potential venture

Foundation firm

Life style

Public company

of the following has a contradictory relationship with an individual for being an

entrepreneur?

His birth order

Parents’ social status

Parents’ occupation

Relationship with parents

Which one of the following is required to develop a good team for creating

something new?

Relationship with team members

Open discussion

Non flexible behavior

Discouragement of team member’s ideas

Good entrepreneurs are usually from families which are:

Landlords

Capitalists

Can be from any family with supportive parents ???????

Conservative parents

___________ is required if a company wants to be more flexible in adopting

changes.

Management commitment

Contact with customers

Technology

More productivity

It is proved that most businesses failed because of improper planning of an/a:

Investor

Marketer

Entrepreneur

Consultant

Female entrepreneurs differ from male entrepreneurs in terms of following

EXCEPT:

Motivation

Business skills

Departure point

Goal orientation

Q #2: ___________ Process of creating incremental wealth is called

Entrepreneurship.

A. Dynamic

B. Static

C. Continues

D. Systematic

Q #3: Most important factor in forming a new business is:

A. Finance

B. Marketing

C. Govt Support

D. Family Support

Q #4: Which one of the following is the process of entrepreneurs developing new

products that over time make current products obsolete?

A. Creative destruction

B. New business model

C. Anatomization

D. None of the given options

Q #6: Which one of the following is the primary cause of failure in small

businesses?

A. Poor financial control

B. Poor location

C. Management mistakes

D. Improper inventory control

Q #7: Which one of the following is the first step in the entrepreneurial process?

A. Developing successful business ideas

B. Deciding to become an entrepreneur

C. Growing the entrepreneurial firm

D. Moving from an idea to an entrepreneurial firm

Q #8: Which of the following is NOT included in the opportunity evaluation

process?

A. Length of the opportunity

B. Real and perceived value of opportunity

C. Goals and objectives of customers

D. Risks and rewards of opportunity

Q #9: The resistance of employees in an organization against flexibility, growth, and diversification can be overcome by developing:

A. Entrepreneurship

B. Intrapreneurship

C. Managerial domain

D. Administrative domain

Q #10: The entrepreneur’s_______________ depends on his perception of the opportunity.

A. Commitment to opportunity

B. Commitment of resources

C. Control of resources

D. Strategic orientation

Q #11: Which of the following statements about the entrepreneurial climate is (are) true?

A. Trial and error are discouraged

B. Resources of the firm need to be available and easily accessible

C. A multidisciplinary approach is discouraged

D. Failures are not allowed

Q #12: Which of the following makes the formation of new venture difficult within corporate culture?

Lack of entrepreneurial talent

Lack of freedom to make autonomous decisions

Lack of market opportunity

D. All of the given options

Q #13: Which of the following factors has allowed small companies to act like they are big ones?

A. Competition

B. Economic development

C. Technology

D. Customers

Q #15: Being one’s own boss is a need of:

A. Independence

B. Achievement

C. Affiliation

D. Authority

Q #16: An individual’s need to be recognized is called:

A. Need for independence

B. Need for affiliation

C. Need of fame

D. Need for achievement

Q #17: Which one of the following factors does not affect a person for being an entrepreneur?

A. Family background

B. Education

C. Personal Values

D. Gender

Q #20: Which one of the following is NOT TRUE about male entrepreneurs?

A. Males often have investors, bank loans, or personal loans in addition to personal funds

B. Males often have more experience in manufacturing, finance, or technical areas

C. Men are often more confident and less flexible and tolerant

D. Men usually list outside advisors as the least important supporters

Plan Outline:

1.0 Executive Summary

a. Mission

b. Objectives

c. Keys to Success

2.0 Company Summary

d. Company Ownership

e. Company History

f. Company Locations and Facilities

3.0 Services

g. Service Description

h. Competitive Comparison

i. Sales Literature

j. Fulfillment

k. Technology

l. Future Services

4.0 Market Analysis Summary

m. Market Segmentation

n. Service Business Analysis

i. Main Competitors

ii. Competition and Buying Patterns

iii. Business Participants

iv. Distributing a Service

5.0 Strategy and Implementation Summary

o. Marketing Strategy

i. Promotion Strategy

ii. Distribution Strategy

iii. Positioning Statement

iv. Pricing Strategy

p. Sales Strategy

i. Sales Programs

ii. Sales Forecast

6.0 Management Summary

2. Organizational Structure

3. Appendix

There is an evidence that an entrepreneur usually has _______________ parents.

Self employed

Discouraged

Non supportive

Strict

Which one of the following makes formation of new ventures within a corporate structure

difficult?

Lack of intrapreneurial talent ??

Lack of freedom to make autonomous decisions

Lack of market opportunity

Lack of knowledge

Question # 8 of 10 Total Marks: 1

Professional support network includes following EXCEPT:

Personal affiliations

Mentor

Trade associations

Friends

Which of the following is NOT a characteristic of an entrepreneur?

Need for independence

Need for affiliation

Need for achievement

Risk taking

With a commercial history of only 300 years, which country was a new comer to

the international arena?

► Japan

► U.S

► China

► U.K

International entrepreneur’s decisions are more complex because of:

► Business expansion

► Analysis of Huge information is difficult

► Complex transactions

► Uncontrollable factors

Which of the following techniques is an excellent method for initial screening

of ideas and concepts?

► Focus group

► Problem inventory analysis

► Brain storming

► Reverse brainstorming

Which one of the following is a method for obtaining new ideas and solutions by

focusing on problems?

► Product inventory analysis

► Gordon method

► Checklist method

► Scientific method

The marketing perspective of business plan considers the venture through the

eyes of:

► Investor

► Customer

► Entrepreneur

► Marketing manager

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a condition of a contract?

► An offer is made

► An acceptance of offer

► Counter offer

► Consideration is given

Trade barriers cause:

► Increase in cost

► Decrease in cost

► Increase in profit

► None of the given options

Which of the following is a method of selling goods to another country through

a person in the entrepreneur’s home country?

► Trading

► Direct export

► Indirect export

► Domestic sales

Which of the following is required for a company that wants to be more flexible

in adopting changes?

► Management commitment

► Contact with customers

► Technology

► More productivity

Which of the following typical culture has a climate and reward system that

favors conservative decision making?

► Entrepreneurial

► Intrapreneurial

► Corporate

► None of the given options

Which of the following statement about the intrapreneurial climate is true?

► Trial and error are discouraged

► Resources of the firm need to be available and easily accessible

► A multidisciplinary approach is discouraged

► Failures are not allowed

Which of the following are known as barriers to new product creation and

development?

► Trial and error

► Opportunity parameters

► Opportunity cost

► Intrapreneurship culture

All of the following are true regarding male entrepreneurs EXCEPT:

► Typically most male entrepreneurs are first-borns ??

► Dissatisfaction with present job is a departure point for a male entrepreneur

► Male entrepreneurs mostly have a occupational background of middle-management

or administrative-experience in the field

► Male entrepreneurs tend to be opinionated and persuasive in their approach

Entrepreneurial endeavors consist of all of the following key elements Except:

► New business venturing

► Increasing productivity

► Innovativeness

► Proactiveness

Which of the following factor does not affect a person for being an

entrepreneur?

► Family background

► Education

► Personal values

► Gender ??

The former USSR received technology and syrup from Pepsi and provided it with

Soviet vodka and rights to distribute it in the US. This is an example of:

► Economic development

► Barter system

► Balance of payment

► International trade

An entrepreneur doing business within the national border is called:

► International entrepreneurship

► Intrapreneurship

► Domestic entrepreneurship

► None of the given options

Which one of the following may need the business plan?

► Employees

► Investors

► Advisors

► All of the given options

Following are the types of foreign direct investment EXCEPT:

► Joint venture

► Management contracts ??

► Minority interest

► Merger

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cs 507 Information System Mid Term Papers -2

Question No: 1

Every decision we take in daily life requires some sort of information about the

alternatives available.

True False

Question No: 2

A structure through which individuals cooperate systematically to conduct business

called organization.

True False

Question No: 3

Information system must fulfil the needs of which of the following:

Customers Business Employee

Question No: 4

Closed system is dependent on the internal resources and data.

True page34 False

When we refer to a closed system we talk of a system that is dependant on internal

resources and data for decision making rather than external environment.

Question No: 5

——- seek to put intelligence into the hardware in the form of generalized capability

to learn.

Neural network System Fuzzy logic DSS ESS

Question No: 6

Decisions in which the decision maker must provide judgment, evaluation, and

insights into the problem definition would be characterized as:

Structured Semi Structured Unstructured

Question No: 7

System design can be explained and presented in ——————– form.

Narrative Written Explanatory Descriptive

Question No: 8

Targeting advertising to customers to increase the probability, that an offer is

accepted.

True False

Question No: 9

Production subsystem needs to be linked with the marketing system to produce

right amount of product.

True False

Question No: 10

Accounts should have a control over various recording points in the entire process

from procurement to finished good store room.

True False

Question No: 11

Decision making is the cognitive process of selecting a course of action from among

multiple alternatives

True False

——

Question No: 12

Structured Problems possess multiple solutions, solution paths, fewer parameters

which are less manipulate able, and contain uncertainty about which concepts,

rules, and principles.

True False

Unstructured: Problems possess multiple solutions, solution paths, fewer parameters

which are less manipulate able, and contain uncertainty about which concepts, rules, and

principles

Question No: 13

Information that is outdated, inaccurate, or hard to understand has much less value

TRUE FALSE

Question No: 14

Evaluate recovery patterns, relevant costs involved is an example of Choice phase

TRUE FALSE

Evaluate recovery patterns, relevant costs involved is an example of monitoring

Question No: 15

The spiral lifecycle model is a combination of the classic water Fall model and

aspects of risk analysis.

True False

Question No: 16

The spiral model emphasizes the need to go back and reiterate earlier steps number

of times as the project progresses.

True False

Question No: 17 ( Marks: 1 )

Why does it need for Production subsystem to be linked with marketing system?

Question No: 18 ( Marks: 1 )

What are the conglomerate organizations?

Question No: 19 ( Marks: 2 )

What do you mean by System Analyst?

Page80,83

Question No: 20 ( Marks: 3 )

Identify different phases of Spiral model.

Page 98

Question No: 21 ( Marks: 5 )

Discuss the Characteristics of the Incremental Model with pros and cons.

Page 95

Question No: 22 ( Marks: 10 )

Discuss different types of Decisions in detail.

Page 70

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MIDTERM EXAMINATION

Spring 2009

CS507- Information Systems (Session – 2)

Question No: 1

A newspaper article is a primary source if it reports events, but a secondary source

if it analyses and comments on those events.

——

True False

Question No: 2 Information technology is being used to overcome the business issues

like, Marketing, Brand of the product, Quality of the product, Cost control,

Organizational internal and external issues.

True False

Question No: 3

They represent Equations / Formulae representing relationship between two or

more factors related to each other in a defined manner is called————

Graphical Model Mathematical Model Algebra Model

Question No: 4

The departmental structures are ————— in banking and financial sector.

Different Same Mixed

Question No: 5

—————- helps in getting the right material and physical resources together at

the right place and at the right time to meet the customer’s requirements.

BRP MRP CRP

Question No: 6

Production subsystem needs to be linked with the marketing system to ————–

right amount of product. Produce Sale Purchase

Question No: 7

WaterFall model places emphasis on documentation (such as requirements

documents and design documents) as well as source code.

True False

Question No: 8

BRP helps in getting the right material and physical resources together at the right

place and at the right time to meet the customer’s requirements

True False

MRP helps in getting the right material and physical resources together at the right place

and at the right time to meet the customer’s requirements.

Question No: 9

Decision procedures can be pre-specified, but not enough to lead to the correct

decision are called

Structured Decisions Unstructured Decisions Semi Structured

Decisions

Question No: 10

Which of the following phase of decision making process involves implementing the

selected course of action?

Intelligence Design Choice Implementation

Question No: 11

Devise a discount or training policy is an example of choice phase.

TRUE FALSE

Devise a discount or training policy is an example of design

Question No: 12

Source of information is generally categorize in primary, secondary and _______

Proximity Initially Tertiary

Question No: 13

Which of the following structure contains less number of management levels?

——

Flat Structure Tall Structure Classical structure

Question No: 14

_____ Information is just like feedback of organization image in public.

Formal Informal External

Question No: 15 Which of the following model combines the elements of the waterfall

model with the

philosophy of prototyping?

Iterative Incremental Raid

Question No: 16

RAID model combines the elements of the waterfall model with the philosophy of

prototyping.

True False

Incremental model combines the elements of the waterfall model with the philosophy of

prototyping.

Question No: 17 ( Marks: 1 )

What do you understand by Business environment?

Question No: 18 ( Marks: 1 )

What is information System?

Question No: 19 ( Marks: 2 )

Define Technical Feasibility?

Technical Feasibility – is the available technology sufficient to support the proposed

project? Can the technology be acquired or developed?

Question No: 20 ( Marks: 3 )

What will be the results if we compare Incremental models with Iterative Models? Explain

with any example

Page 97

Question No: 21 ( Marks: 5 )Discuss information requirements at different levels of

Management in Marketing information System?

Page52

Question No: 22 ( Marks: 10 )

The difference between the manual and computerized environment arises due to the many

reasons , discuss them in detail.

Page102

\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

MIDTERM EXAMINATION

Spring 2009

CS507- Information Systems (Session – 2)

Question No: 1

Manufacturing process involves more than one sub-process.

True False

Question No: 2

Office automation system includes formal and informal electronic systems with the

communication of information to and from persons both inside and outside the firm.

True False

Question No: 3

——

DSS can stimulate innovation in decision making by helping managers to existing

decision making procedures.

True False

Question No: 4

———- needs data preparation which may involve filtering data and data

transformations, selecting subsets of records.

Model Building Deployment Exploration

Question No: 5

Which of the following is an approach for developing systems based on producing

deliverables frequently/repetitively. Each iteration, consisting of requirements, analysis &

design, implementation and testing, results in the release of an executable subset of the

final product?

Incremental Model Iterative Model RAID Spiral

Question No: 6

The departmental structures are different in banking and financial sector

True False

Question No: 7 Every transaction that an organization undertakes has a financial

impact, to be recorded and reported by the accounts & finance department.

True False

Question No: 8 Decision making is the cognitive process of selecting a course of

action from

among multiple alternatives

True False

Question No: 9

Devise a discount or training policy is an example of design phase

TRUE FALSE

Question No: 10

Technical Reports are examples of _________ resource.

Tertiary Primary Secondary

Question No: 11

_________ sources are used, which simplify the process of finding the proximity

Literature.

Secondary Primary Tertiary

secondary sources are those which simplify the process of finding and evaluating the

primary literature.

Question No: 12 _________ is a group of people organized to accomplish an overall

goal

System Procedure Organization

Question No: 13

Information quality checklist is the criteria to evaluate ______ of information.

Size Quality Need

Question No: 14

Which of the following has collection of predefined procedures related to each other?

Organization System Firm

Question No: 15

_________ is connected to its environment by means of recourse of flows.

Open loop system Close system Open system

——

Question No: 16 Which of the following model combines the elements of the waterfall

model with the

philosophy of prototyping?

Iterative Incremental Raid

Question No: 17 ( Marks: 1 )

Information systems produce the information that organizations need to make decisions,

control operations, analyze problems, and create new products or services. Identify and

describe the three activities found in information systems.

Question No: 18 ( Marks: 1 )

Define water fall model of SDLC.

Question No: 19 ( Marks: 2 )

Identify the purpose of Feasibility study.

Question No: 20 ( Marks: 3 )

List any three benefits of CRM.

Question No: 21 ( Marks: 5 )

What is the purpose of Transaction Processing system?

Question No: 22 ( Marks: 10 )

What is the purpose of Feasibility Study? Discuss key areas?

ns. Explain it with examples.

\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

1 *Question No: 1 ( Marks: 1 ) – Please choose one***

*** **Elements that exist outside the boundary of the business

(Organization) and have the potential to affect all or part of the

organization called—————————–***

► *WTO***

► *Company Ordinance***

*► **Business Environment***

► *Company Structure ***

*Question No: 2 ( Marks: 1 ) – Please choose one***

*** **Every system comprises of basic components which in a co-ordination

formulate a system. ***

*► **True***

► *False***

——

*Question No: 3 ( Marks: 1 ) – Please choose one***

*** **Data warehouses are generally batch updated at the end of the day,

week or some period.***

* ► **True***

► *False***

*Question No: 4 ( Marks: 1 ) – Please choose one***

*** **Due to fluctuating changes in fashion trends, pre-seasonal planning

becomes———***

*► **Critical***

► *Simple***

► *Moderate***

*Question No: 5 ( Marks: 1 ) – Please choose one***

*** **Information systems based on Rational Man Model need to be based on

availability of perfect and complete information on all alternatives so as

to ensure certainty***

* ► **True***

► *False*

*Question No: 6 ( Marks: 1 ) – Please choose one***

*** ** In which of the following Models it is Difficult to convince some

customers that the evolutionary approach is controllable***

* ► Spiral***

——

► WaterFall

► Incremental

► Iterative

*Question No: 7 ( Marks: 1 ) – Please choose one***

*** WaterFall **model places emphasis on documentation (such as

requirements

documents and design documents) as well as source code. ***

*► True***

► False

*Question No: 8 ( Marks: 1 ) – Please choose one***

*** **Computer-aided manufacturing (CAM), is a form of automation where

computers communicate work instructions directly to the manufacturing

machinery.*

* ► **True***

► False

*Question No: 9 ( Marks: 1 ) – Please choose one***

*** **Which of the following is a form of automation where computers

communicate work instructions directly to the manufacturing* *machinery?*

► CAD

* ► CAM***

► CIM

——

*Question No: 10 ( Marks: 1 ) – Please choose one***

*** *Using a decision support system involves an interactive analytical

modeling process.

* ► TRUE***

► FALSE

*Question No: 11 ( Marks: 1 ) – Please choose one***

*** *Directories are example of __________ resource.

► Primary

► Secondary

* ► Tertiary ***

*Question No: 12 ( Marks: 1 ) – Please choose one***

*** *_______ is the raw data entered in the computer system.

* ► Input element ***

► Control Mechanism

► Output System

*Question No: 13 ( Marks: 1 ) – Please choose one***

*** *Feed back is the integral part of the _______

► Open system

► Close System

*► Closed Loop System***

——

*Question No: 14 ( Marks: 1 ) – Please choose one***

*** *Spoken and written form of an entity is used in _________ model.

Physical►

Narrative***►*

Graphical►

*Question No: 15 ( Marks: 1 ) – Please choose one***

*** **—————— combines many human resource functions like

benefits administration, payroll, recruiting and training etc.***

**Human Resource Information System

*Account Information► System***

*Financial Information System***►

*Question No: 16 ( Marks: 1 ) – Please choose one***

*** In which of the following decisions the problems are non routine,

critical and novel in nature, require individual judgment, evaluation and

insight varying on case-to-case basis.*

*Semi-Structured► decisions***

**Unstructured decisions***►*

*Structured► decisions***

*Question No: 17 ( Marks: 1 ) ***

**Give any example that is basically a primary source but is also a

——

secondary

source too.

A good example of this source is Newspaper articles.

*Question No: 18 ( Marks: 1 ) ***

*** Define TQM?***

TQM is a set a philosophy and style of management that gives everyone in an

organization responsibility for delivering quality to the customer.

*Question No: 19 ( Marks: 2 ) ***

*** *Identify the Characteristics of the Incremental Model

There are the following characteristics of the Incremental Model.

1. Once an incremented portion is developed, requirements for that increment

are frozen.

2. Partial systems are successively built to produce a final total system.

3. Highest priority requirements tackled early on.

4. The system development is broken into many mini development projects.

*Question No: 20 ( Marks: 3 ) ***

*** What are the information requirements for Management level in Accounting

& financial Information Systems.***

There are two systems used for this purpose which are the following.

*Accounting information system**:* This system shares all accounting

reports at different levels of management.

*Financial Management Information System**:* This system provides financial

information to managers in an organization. Based on these reports, managers

analyze historical and current financial activity, and also project future

——

financial needs. It is also used for monitoring and controlling the use of

funds over time using the information developed by the MIS department.

Professional

MIS reports are made by accounting firms for accurate analysis. These

reports are comprehensive and help the middle and top management take

important decisions regarding the finance, accounting and overall business

operations.

*Question No: 21 ( Marks: 5 ) ***

*** ***

What should be the basic characteristics of paper free environment?

The basic characteristics of Paper Free Environment are as following.

1. It makes easy payments made through Electronic payment system.

2. As we know Information overload enhances paper work.

3. Report generation and record analysis gets convenient and easy.

4. An IS/CBIS should be efficient enough to properly manage of documents

electronically.

5. Maintenance of records in hard form has always proven to be a cumbersome

task.

6. Customer orders met through Virtual Private Networks and intranets.

* *

*Question No: 22 ( Marks: 10 ) ***

*** *What are the management styles? Discuss in details.

There are the following 3 basic types of Management Styles

1. Authoritative

2. Participative

3. Mixed

——

*1. Authoritative *

In this style of management authoritarian manager makes all the decisions,

keeping the information and decision making among the senior management.

Objectives and tasks are set and the workforce is expected to do exactly as

required. The communication involved with this method is mainly downward,

from the leader to the sub-ordinate critics. The main advantage of this

style is that the direction of the business will remain constant, and the

decisions will all be similar, this in turn can project an image of a

confident, well managed business. On the other hand, subordinates may

become

highly dependent upon the leaders and supervision may be needed. Decisions

are taken centrally by the senior management themselves and are enforced at

all levels.

*2. Participative *

This is also called Democratic style. In this style the manager allows the

employees to take part in decision-making so everything is agreed by the

majority. The communication is extensive in both directions. This style can

be particularly useful when complex decisions need to be made that require a

range of specialist skills.

*3. Mixed *

The style of management is a combination of both authoritative and

participative style. In this type the Input from employees is taken and

respected. Final decision is taken by the senior management keeping in view

the views given by the employees.

Q17: List the sources of information. (1 Marks)

Q18: When the news article would become a secondary source, although it is a primary

sourc? (2 Marks)

Q19: What you know about ESS. (3 Marks)

Q20: Any one model of DSS. (1 Marks)

Q21: How the information systems influences the organization, people and technology?

(5 Marks)

Q22: Write the benefits and risks of evaluating prototyping. (10 Marks)

Qusetion1= cons of incrimental modal(1)

2= key area of feasibilitty(2)

3= Decision Maiking application internation ndech ancide to apen

branch in pak(5)

——

4 = What is incimental modal pros and cons of Incimental modal(10)

5= Define primary data(1)

what system analyst do(3 marks)

Culture of organization (5 marks)

spiral model (10 marks)

AIS (2 marks)

1 types of Sources of Information ?

2 benefits of CRM ?

3 Describe organization in ur own words?The main objectivs of Organization?(10)

What is system (1)

Internet environment and external environment of system (10)

types of manufacturing system (2)

2 qustion which have one mark

what are information systems?

what is data mining?

one is 3 marks

what we developed after the development system?

one is 5 marks

what is the databse and pointout the scope and features, explain briefly?

one is 10 marks

why we information system needed?

2 Questions of 1 mark i.e.

1. What are the source of Information?

2. How information need differ in organizations?

1 Question of 2 marks i.e

Official system Automation (kuch aysa hi tha)

1 question of 3 marks (Yad nahi )

1 question of 5 marks i.e

Explain Garbage Can Model and Empire Building Model

1 question of 10 Marks i.e

Explain the process of Decision Making in detail

1)_how information system influence at people,organization n technology marks 5

2)_write abt types of decision/ marks10

3)_what is SDLC means / marks 3

4)_increment model / waterfall model /marks 1Why Prototypes are used ? (2)

Incremental Model of SDLC ? (3)

Discuss Incremental Model with a real life Example ? (5)

——

Spiral Model……. its weakness and Strengths (10)

5 marks question discuss Data ware house is a logical collection of information?

10 marks question what do you know about incremental model? Discuss pros and

cons?

3 marks question what is the difference between data and information?

2 maks question point out any one weakness of incremental model

\\\\\\\\\\\\\\\

MIDTERM EXAMINATION

Spring 2010

CS507- Information Systems

Time: 60 min

Marks: 40

Question No: 1 ( Marks: 1 ) – Please choose one

A hierarchical organization is structured in a way such that every entity in the

organization, except one, is subordinate to a single other entity.

► True

► False

Ref: This is the dominant mode of organization among large organizations; most

corporations and governments are hierarchical organizations.

Question No: 2 ( Marks: 1 ) – Please choose one

Systems have collection of predefined ———————-related to each other in a

sequenced logical manner in order to collectively achieve the desired results.

► Procedures

► Sequences

► Policies

——

Question No: 3 ( Marks: 1 ) – Please choose one

The results given by the system after the process has been performed on the data

being input to the system called as——————.

► Output

► Input

► Processing

Question No: 4 ( Marks: 1 ) – Please choose one

Which type of decision is one for which there may be several “right” answers and there is no precise way to

get a right answer?

► Structured

► Unstructured

► Semi-Structured

Ref : Unstructured: Problems possess multiple solutions, solution paths,

fewer parameters which are less manipulate able, and contain uncertainty

about which concepts, rules, and principles are necessary for the solution or

how they are organized and which solution is best.

Question No: 5 ( Marks: 1 ) – Please choose one

Which of the following level is formulation of new sales products, and identifying

new sales opportunities?

► Operational

► Managerial

► Strategic

Question No: 6 ( Marks: 1 ) – Please choose one

Every transaction that an organization undertakes has a financial impact, to be

recorded and reported by the accounts & finance department.

► True

► False

——

Question No: 7 ( Marks: 1 ) – Please choose one

The procedures to follow when decision is needed can be specified in advance

► True

► False

Question No: 8 ( Marks: 1 ) – Please choose one

Companies are investing in data-driven decision support application frameworks to

help them respond to

• Changing market conditions

• Customer needs

► TRUE

► FALSE

Ref : As opposed to model driven DSS, these systems use large pools of data found

in major organizational systems. They help to extract information from the large

quantities of data stored. These systems rely on Data Warehouses created from

Transaction Processing systems.

Question No: 9 ( Marks: 1 ) – Please choose one

Information that is outdated, inaccurate, or hard to understand has much less value

► TRUE

► FALSE

Question No: 10 ( Marks: 1 ) – Please choose one

In __________ final product is intangible

► Service sector

► Manufacturing Sector

► Trading sector

Question No: 11 ( Marks: 1 ) – Please choose one

_____ is a set of defined set of instructions aimed to achieve goals

——

► Procedure

► System

► Organization

Question No: 12 ( Marks: 1 ) – Please choose one

Closed System depends on __________ and data.

► Internal resources

► External resources

► Procedures.

Ref : • A system that is not connected with its environment

Neither environment exerts any influence on the system nor does system influence

the environment. When we refer to a closed system we talk of a system that is

dependant on internal resources and data for decision making rather than external

environment.

Question No: 13 ( Marks: 1 ) – Please choose one

______ is the set of interconnected structural elements that provide the framework.

► Infrastructure

► System

► Organization

Ref : The term is used differently in a variety of fields; perhaps the single most

well-known usage is in economics, where it refers to physical infrastructure such as

buildings and roads.

Question No: 14 ( Marks: 1 ) – Please choose one

Incremental model combines the elements of the RAID model with the philosophy of

prototyping.

► True

► False

Ref : This model combines the elements of the waterfall model with the

philosophy of prototyping.

——

Question No: 15 ( Marks: 1 ) – Please choose one

System analysis creates the understanding and lays out the necessary relationships that will

assist in defining a solution to the problem or the design of the proposed software that will

meet the user needs.

► True

► False

Ref: “A problem solving technique that decomposes a system into its component

pieces for the purpose of studying, how well those component parts work and

interact to accomplish their purpose.”

Question No: 16 ( Marks: 1 ) – Please choose one

Which of the following model is a series of short waterfall cycles, each producing an early

prototype representing a part of the entire project?

► Spiral

► Iterative

► WaterFall

► Incremental

Ref : SPIRAL is an iterative approach to system development. The spiral lifecycle

model is a combination of the classic waterfall model and aspects of risk analysis.

This model is very appropriate for large and complex Information Systems. The

spiral model emphasizes the need to go back and reiterate earlier steps a number of

times as the project progresses. It’s actually a series of short waterfall cycles, each

producing an early prototype representing a part of the entire project. It is a

circular view of the software lifecycle as opposed to the linear view of the waterfall

approach. It can incorporate other models in its various developmental phases.

Question No: 17 ( Marks: 1 ) – Please choose one

There are five phases of the decision making process, first one is intelligence.

► True

► False

Phases of decision-making process are:

• Intelligence – searching for conditions in the environment that call for decisions

• Design – inventing, developing, and analyzing possible courses of action

——

• Choice – selecting a course of action from those available

• Implementation – implementing the selected course of action

• Monitoring – checking the consequences of the decision made after

implementation

Question No: 18 ( Marks: 1 ) – Please choose one

_____ information is just like feedback of organization image in public.

► Informal

► External (not sure)

► Formal

Question No: 19 ( Marks: 1 ) – Please choose one

__________ sources materials in which the information from secondary sources has been

digested.

► Primary

► Tertiary

► Secondary

Ref : Materials in which the information from secondary sources has been

“digested” -

reformatted and condensed, to put it into a convenient, easy-to-read form.

Question No: 20 ( Marks: 1 ) – Please choose one

In which of the following category information is presented in its original form,

neither interpreted nor condensed nor evaluated by other writers ?

► Primary Information

► Tertiay Information

► Secondary Information

► All of above

Question No: 21 ( Marks: 2 )

——

What do we mean by cognitive process?

Ans: Cognitive process is the mental process of knowing, including aspects such as

awareness, perception, reasoning and judgment.

Question No: 22 ( Marks: 2 )

Identify the basic function and responsibities of a system analyst.

Ans: A person who has a detailed knowledge of computers and system design and

his basic function is to analyze the whole system and find out the problems it there

is.

Question No: 23 ( Marks: 3 )

What do you understand by ERD? Define briefly

Ans: Entity Relationship Diagram (ERD) is a tool used in system design.

ERD as shown in the above indicates simple relationships. These relationships can

be read as.

- one department has one supervisor

- A department may have more than one employees

- An employee ma be in more than one departments

- An employee may not be working on any project but a project must have at

least one employee working on it.

Question No: 24 ( Marks: 3 )

List any three normative models of Choice Phase of decision making

process.

Question No: 25 ( Marks: 5 )

What do you understand by system design and identify the steps it includes.

——

Ans: it can be explained and presented in narrative form

Question No: 26 ( Marks: 5 )

DSS are used to take help in Semi structured decisions. What does DSS use

as support in order to facilitate Semi Structured Decision making?

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MIDTERM EXAMINATION

Spring 2009

CS507- Information System (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

The organizational structures are formulated in order to efficiently manage which of the following:

► Business Cost

► Business Operations

► Business Size

Ref: PAGE # 5

The organizational structures are formulated in order to efficiently manage

the business operations.

Question No: 2 ( Marks: 1 ) – Please choose one

Elements that exist outside the boundary of the business (Organization) and have the potential to affect all

or part of the organization called—————————–

► WTO

► Company Ordinance

► Business Environment

► Company Structure

Ref: PAGE # 14

Business Environment is defined as “all elements that exist outside the

boundary of the business (Organization) and have the potential to affect all

——

or part of the organization

Question No: 3 ( Marks: 1 ) – Please choose one

The comparison of actual system with expected system is done with the help of control mechanism.

► False

► True

Ref: PAGE # 20

• Control mechanism

Comparison of actual with expected

Question No: 4 ( Marks: 1 ) – Please choose one

The study of business problem domain used to recommend improvements and specify the business

Requirements for the solution is called:

► Risk Analysis

► System Analysis

► System Design

► Risk Management

Ref: PAGE # 92

System Analysis:

System analysis can be defined simply as: “The study of business problem

domain to recommend improvements and specify the business requirements

for the solution.”

Question No: 5 ( Marks: 1 ) – Please choose one

The First increment in incremental model is usually the core product which addresses the basic

requirements of the system.

► True

► False

Ref: PAGE # 85

The first increment is usually the core product which addresses the basic

requirements of the system.

——

Question No: 6 ( Marks: 1 ) – Please choose one

Which of the following design involves breaking up the logical design into units?

► Physical

► Logical

► None of above options

► Commercial

Ref: PAGE # 81

Physical Design

The logical design is converted to physical design in this phase. The physical

design involves breaking up the logical design into units, which in turn

can be decomposed further into implementation units such as programs and

modules.

Question No: 7 ( Marks: 1 ) – Please choose one

Which of the following is a form of automation where computers communicate work instructions directly

to the manufacturing machinery?

► CAD

► CAM

► CIM

Ref: PAGE # 53

Computer Aided Manufacturing (CAM)

Computer-aided manufacturing (CAM) is a form of automation where

computers communicate work instructions directly to the manufacturing

machinery.

Question No: 8 ( Marks: 1 ) – Please choose one

Information that is outdated, inaccurate, or hard to understand has much less value.

► True (Doubt)

► False

Question No: 9 ( Marks: 1 ) – Please choose one

Which of the following phase of decision making process involves selecting a course of action from those

——

available?

► Design

► Choice

► Implementation

► Intelligence

Ref: PAGE # 61

Decision-making process

• Intelligence – searching for conditions in the environment that call for

decisions

• Design – inventing, developing, and analyzing possible courses of action

• Choice – selecting a course of action from those available

• Implementation – implementing the selected course of action

• Monitoring – checking the consequences of the decision made after

implementation

Question No: 10 ( Marks: 1 ) – Please choose one

There are TWO phases of the decision making process

► TRUE

► FALSE

Question No: 11 ( Marks: 1 ) – Please choose one

MIS is the primary source for the managers to be aware of red-alerts.

► TRUE

► FALSE

Ref: PAGE # 61

Intelligence: Identifying the problems occurring in an organization. MIS is

the primary source for the managers to be aware of red-alerts.

Question No: 12 ( Marks: 1 ) – Please choose one

Information quality checklist is the criteria to evaluate ______ of information.

——

► Size

► Quality

► Need

Ref: PAGE # 6

Information Quality Checklist:

The information can also be ranked in accordance with the qualities it has in

it. The experts have devised certain criteria to evaluate the quality of

information.

Question No: 13 ( Marks: 1 ) – Please choose one

Management is concerned with the day to day costs, production targets in ____

► Service sector

► Manufacturing Sector

► Trading sector

Ref: PAGE # 8

Information Requirements of Manufacturing Sector:

Management is concerned with the day to day costs, production targets,

quality of the product, delivery schedules, etc.

Question No: 14 ( Marks: 1 ) – Please choose one

Organization is a group of elements that are integrated with the common purpose of achieving an object.

► True

► False

Ref: PAGE # 23

A system is a group of elements that are integrated with the common

purpose of achieving an objective.

Question No: 15 ( Marks: 1 ) – Please choose one

The system used to record the transactions of routine and repetitive nature is called as _________ .

——

► Support system

► Decision support system

► Transaction control system

Ref: PAGE # 30

Transaction Processing System:

This system is used to record transactions of routine and repetitive nature.

Question No: 16 ( Marks: 1 ) – Please choose one

Which of the following helps in getting the right material and physical resources together at the right

place and at the right time to meet the customer’s requirements?

► BRP

► MRP

► CRP

Ref: PAGE # 52

MRP helps in getting the right material and physical resources

together at the right place and at the right time to meet the

customer’s requirements. This helps in achieving on time delivery,

High Quality, at the best price.

Question No: 17 ( Marks: 1 ) – Please choose one

Cost benefit analysis is must in choosing an alternative in a decision making model.

► False

► True

Ref: PAGE # 65

Bounded Rationality — Example

Cost benefit analysis is a must in choosing an alternative in a decision

making model.

Question No: 18 ( Marks: 1 ) – Please choose one

A system that is not connected with its environment is called ————————

——

► Closed system

► Open system

► Open loop system

Ref: PAGE # 21

Open Systems

• A system that is connected to its environment by means of resource flows

is called an open system.

Question No: 19 ( Marks: 1 ) – Please choose one

_________ sources are used, which simplify the process of finding the proximity Literature.

► Secondary

► Primary

► Tertiary

Ref: PAGE # 3

In science, secondary sources are those which simplify the

process of finding and evaluating the primary literature. They

tend to be works which repackage, reorganize, reinterpret,

summarize, index or otherwise “add value” to the new information

reported in the primary literature.

Question No: 20 ( Marks: 1 ) – Please choose one

An information system that automatically generates report on regular basis and are not used to monitor

input or activities is called

► Open loop system

► Closed loop system

► Closed end System

Ref: PAGE # 20

Open-Loop System

Example

An information system that automatically generates report on regular basis and are not used to monitor input or activities.

Question No: 21 ( Marks: 2 )

What is the basic benefit of diagrammatic view of system?

Question No: 22 ( Marks: 2 )

What are the information requirements for Strategic level in Accounting & financial Information Systems

Question No: 23 ( Marks: 3 )

List any three normative models of Choice Phase of decision making process.

Question No: 24 ( Marks: 3 )

Differentiate between Incremental and iterative models with the help of one example each.

Question No: 25 ( Marks: 5 )

Discuss any five benefits of Marketing IS?

Question No: 26 ( Marks: 5 )

Discuss System Analysis in the light of the following points:

1. A technique to map the system under study.

2. To drill down into the various aspects of the business process without losing sight of the complete

system.

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