AMIT TALDA MENTORSHIP

FULL SYLLABUS
TEST PAPER
FINANCIAL
MANAGEMENT &
STRATEGIC
MANAGEMENT
CS EXECUTIVE
OLD SYLLABUS

BY
AMIT TALDA SIR

AFTER APPEARING FOR TESTS, STUDENT HAS TO WHATSAPP

ON MY STAFF NUMBER 7249869322 FOR ANSWERS.
(WORKING HOURS 11AM TO 7PM)
 FINANCIAL MANAGEMENT & STRATEGIC MANAGEMENT
100 MARKS – 3 HOURS

PART I FINANCIAL MANAGEMENT

1. ABC Ltd. has estimated cash inflow of year 1, 2 and 3 as ` 750 lakh, 960 lakh
and 1440 lakh respectively. The profitability of success is 0.72, 0.68 and 0.69
respectively. The PV factor @ 12% for the year 1, 2 and 3 are 0.893, 0.797 and
0.712 respectively. Estimated initial investment is ` 1800 lakh. The expected NPV
is:
(A) – 90.06 Lakh
(B) -116.85 Lakh
(C) 90.06 Lakh
(D) 116.85 Lakh

2. A firm is considering investment in a project that requires ` 100 Lakhs. Either the
firm can invest the entire amount through equity shares of ` 100 each (option A), or
it can arrange 12% Bank Loan of ` 40 Lakhs and invest remaining amount equity
shares of ` 100 each (option B). Assume a tax rate of 35%. The indifference point of
these two options will be :
(A) ` 7,00,000
(B) ` 10,00,000
(C) ` 12,00,000
(D) None of the above

3. A company has 20,000 equity shares of ` 200 each and its current earnings for
equity shareholders is ` 4,80,000. The growth rate expected in EPS is 7%. The
current market price of company’s shares is ` 300 each. The approximate cost of
equity capital of the company on the basis of Earnings-price Ratio approach is :
(A) 8%
(B) 9%
(C) 8.56%
(D) 9.56%

4. What is the future value of an annuity amount of ` 2,500 payable at the beginning
of each of the next 5 years, if the rate of return is 12% p.a.?
(A) ` 20,288 approx.
(B) ` 15,882 approx.
(C) ` 11,948 approx.
(D) ` 8,436 approx.

5. What will be the approx. present value of an annuity of ` 25,000 to be received at

the end of each of the next 5 years, if the discount rate is 8%? (Round off Annuity
Factor at 4 decimals)
(A) ` 99,000
(B) ` 98,917
(C) ` 99,817
(D) ` 91,817

6. A firm is considering a project requiring `5,00,000 with 8 years life and `60,000
salvage value. The project is expected to generate net profit before depreciation and
tax of `1,80,000 per annum. If straight line method of depreciation it to be followed
 and applicable income tax rate is 30%, the Average Rate of Return (ARR) of the
project will be:
(A) 17.50%
(B) 31.25%
(C) 25.20%
(D) 45%

7. If an investment of ` 3,00,000 pays ` 25,000 p.a. in perpetuity, what is the Net

Present Value, if the interest rate is 10%?
(A) ` - 5,000
(B) ` - 50,000
(C) ` + 50,000
(D) ` + 5,000

8. A sum of ` 40,000 is invested @ 12% p.a. for 6 years. What will be the present value
of its maturity value, assuming a required rate of return of 10%?
(A) ` 78,960
(B) ` 79,860
(C) ` 44,533
(D) ` 45,533

9. If the rate of tax is high, the cost of debt _________________:

(A) increases
(B) decreases
(C)remains constant
(D) cannot be determined

10. The lower the levels of financial gearing, the more __________are the financial
policies of the company:
(A) Aggressive
(B) Conservative
(C) Moderate
(D) Any of above

11. When choosing among mutually exclusive projects, the project with –
(A) Longest payback is preferred
(B) Highest NPV get selected
(C) Higher Average Rate of Return is preferred
(D) Lower cost of capital will be selected

12. Ram has taken a 20 month car loan of ` 6,00,000. The rate of interest is 12% p.a.
What will be the amount of monthly loan amortization?
(A) 33,294.1
(B) 33,249.1
(C) 33,924.1
(D) 32,349.1

13. Which of the following is vulnerable to hostile takeovers?

(A) Horizontal Capital Structure
(B) Vertical Capital Structure
(C) Pyramid Shaped Capital Structure
(D) All of the above
14. ________________is the optimum combination for bringing optimum return on
equity:
(A) High Operating Leverage, High Financial Leverage
(B) High Operating Leverage, Low Financial Leverage
(C) Low Operating Leverage, High Financial Leverage
(D) Low Operating Leverage, Low Financial Leverage

15. In India, RBI has specified a minimum Capital Adequacy requirement of _______for
banks:
(A) 8%
(B) 9%
(C) 10%
(D) 12%

16. __________ reflects the market’s confidence in the company’s equity.

(A) Net profit ratio
(B) Cash profit ratio
(C) P/E ratio
(D) Total assets turnover ratio

17. As per Walter’s Model when r > k, increase in dividend payout ratio will lead to –
(A) Increase in market price
(B) Decrease in market price
(C) No change in market price
(D) None of the above

18. When a firm is short of cash yet it wishes to distribute something to shareholders,
it should consider –
(A) Cash dividend.
(B) Liquidating dividend
(C) Stock dividend
(D) None of the above

19. A decrease in the firm’s receivable turnover ratio means that –

(A) It is collecting credit sales more quickly than before
(B) It is collecting credit sales more slowly than before
(C) Sales have gone down
(D) Inventories have gone up

20. Funds represented by cheques which have been issued, but which have not been
debited from bank is technically referred to as:
(A) Indenture
(B) Forward Cover
(C) Float
(D) Proxy

21. Bill discounting is always with……

(A) Recourse
(B) Non-recourse
(C) Recourse or without recourse
(D) Resource
22. The _________of the funds of a business are invested in working capital,
__________is the return in terms of profitability:
(A) Moderate, More
(B) Lesser, Lesser
(C) More, Lesser
(D) More, More

23. Which of the following is not correct with matching principle?

(A) Temporary current assets should be financed with temporary working capital.
(B) Long term assets should be financed from long term capital.
(C) Permanent current assets should be financed with Long term capital.
(D) Fixed Assets should be finance from Cash Credit

24. If the intrinsic value is more than the market value, the fundamentalists
recommend ______________the security:
(A) Buying
(B) Selling
(C) Hold
(D) Any of above

25. __________type of chart is useful for making broad analysis over a longer period of
time:
(A) Bar Chart
(B) Line Chart
(C) Candle Stick Chart
(D) Point & Figure Chart

26. Speculator is a person:

(A) Who acts in a risky financial transaction, in the hope of substantial profit
(B) Who acts in a less risky financial transaction, in the hope of substantial profit
(C) Who uses only his own fund to make profit
(D) Who analyse the performance of the company but does not make any transactions

27. …………………… focus more on past price movements of firm’s stock than on the
underlying determinations of future profitability.
(A) Fundamental Analysis
(B) System Analysis
(C) Credit Analysis
(D) Technical Analysis

28. ______________indicates the bottom which the share values are unable to pierce:
(A) Support Level
(B) Resistance Level
(C) Head & Shoulder
(D) None of above

29. If rate of return of two securities are independent, Covariance is______________:

(A) Positive
(B) Negative
(C) Zero
(D) Can’t Say
30. Which of the following is the correct formula of Portfolio Risk?
(A) 𝜎𝑝 = √𝑊𝑥 2 . 𝜎𝑥 2 − 𝑊𝑦 2 . 𝜎𝑦 2 + 2𝑊𝑥 𝑊𝑦 (𝑟𝑥𝑦 𝜎𝑥 𝜎𝑦 )

(B) 𝜎𝑝 = √𝑊𝑥 2 . 𝜎𝑥 2 + 𝑊𝑦 2 . 𝜎𝑦 2 + 2𝑊𝑥 𝑊𝑦 (𝑟𝑥𝑦 𝜎𝑥 𝜎𝑦 )

(C) 𝜎𝑝 = √𝑊𝑥 2 . 𝜎𝑥 2 + 𝑊𝑦 2 . 𝜎𝑦 2 + 𝑊𝑥 𝑊𝑦 (𝑟𝑥𝑦 𝜎𝑥 𝜎𝑦 )

(D) 𝜎𝑝 = √𝑊𝑥 2 . 𝜎𝑥 2 − 𝑊𝑦 2 . 𝜎𝑦 2 − 2𝑊𝑥 𝑊𝑦 (𝑟𝑥𝑦 𝜎𝑥 𝜎𝑦 )

31. It is possible to develop a fairly simply decision rule for selecting an optimal
portfolio for an investor that can take both risk and return into account. This is
called a __________:
(A) Risk Less Return
(B) Risk Added Return
(C) Risk Adjusted Return
(D) Risk Avoidable Return

32. Which of the following is not a dimension of liquidity management of firms?

(A) Management of Cash and Marketable Securities
(B) Credit Policy Decision
(C) Management and Control of Inventories
(D) Investment in Fixed Assets

33. In case of agricultural and rural development projects generally the prescribed IRR
for viability is:
(A) 10% in India and other developing countries
(B) 15% in India and other developing countries
(C) 20% in India and other developing countries
(D) 25% in India and other developing countries

34. In terms of difference between operating leverage and financial leverage, which of
the following is incorrect?
(A) Operating Leverage is associated with investment activities of the company,
whereas Financial Leverage is associated with financing activities of the company.
(B) Operating Leverage consists of fixed operating expenses of the company, whereas
financial leverage consists of fixed financial expenses of the company.
(C) Operating Leverage represents the firm’s ability to use the fixed financial cost,
whereas financial leverage represents the firm’s ability to use the fixed operating cost.
(D) Operating Leverage is calculated as Contribution/EBIT, whereas financial leverage
is calculated as EBIT/EBT.

35. Which of the following statements is not true in the context of ‘M-M’s dividend
theory?
(A) The firm operates in perfect capital markets
(B) All investors are rational
(C) There is no fixed investment policy of the firm
(D) The dividend policy of the firm is irrelevant

36. Which of the following is not a salient feature of a financial lease?

(A) It can be cancelled during the initial lease period
(B) The lease is more or less fully amortized during the primary lease period
(C) The lessee is responsible for maintenance, insurance and taxes
(D) The lessee generally enjoys the option of renewing the lease for future periods at
substantially reduced lease rentals

37. A critical assumption of the net operating income (NOI) approach to valuation is:
(A) That debt and equity levels remain unchanged
(B) That dividends increase at a constant rate
(C) That 𝑘0 remains constant regardless of changes in leverage
(D) That interest expenses and taxes are included in the calculation

38. Which of the following is not an assumption of CAPM?

(A) Diversified Portfolio
(B) Single-period transaction horizon
(C) Investor can borrow and lend at the risk-free rate of return
(D) Capital market is not perfect

39. The annual cash requirement of A Ltd is Rs. 10 Lakhs. The company has
marketable securities in lot sizes of Rs. 50,000, Rs. 1,00,000, Rs. 2,00,000, Rs.
2,50,000, Rs. 5,00,000. Cost of conversion of marketable securities per lot is Rs.
1,000. The company can earn 5% annual yield on its securities.

Calculate the Economic lot size by Baumal Model.

(A) 1,00,000
(B) 2,00,000
(C) 2,50,000
(D) 5,00,000

40. The earning per share of a company is ` 10. It has an internal rate of return of
15% and the capitalization rate of the same risk class is 12.5%. If Walter’s model is
used, what should be the price of a share at optimum pay-out?
(A) 92
(B) 94
(C) 96
(D) 98

41. If Current Ratio is 2.5, Acid Test Ratio is 1.5 and Current Liabilities are `50,000,
the value of inventory is:
(A) `50,000
(B) `75,000
(C) `1,25,000
(D) `1,50,000

42. Mr. A is planning to buy a security and is in a dilemma regarding price to be paid.
For this he is relying on the required rate of return on the security. Help him out to
calculate the aforesaid rate (%), if you are informed that security’s standard
deviation is 6%, correlation coefficient of the security with the market is 0.8, and
market standard deviation is 5%. You may assume that return from risk-free
security in the market is 8%, and return on market portfolio is 15%.
(A) 12.72%
(B) 10.88%
(C) 14.58%
(D) 14.72%
43. JP Limited has earned 10% return on total assets of ` 18,00,000 and has a net
profit ratio of 7.2%. Find out sales of the company.
(A) ` 14,40,000
(B) ` 25,00,000
(C) ` 27,50,000
(D) ` 22,50,000

44. Which of the following is not a valid assumption of EOQ model?

(A) Demand forecast is available
(B) Inventory can be replenished immediately
(C) Cost per order is variable
(D) Carrying cost is a fixed percentage

45. From the following information calculate the working capital:

Equity share capital 18,00,000
Stock 3,15,000
Income tax payable 56,250
Outstanding expenses 1,40,000
Prepaid expenses 37,500
Debtors 4,00,000
Creditors 1,50,000
The management is of the opinion to make 20% margin for contingencies on computed
figure.
(A) ` 4,81,250
(B) ` 4,59,370
(C) ` 4,87,500
(D) ` 4,51,370

46. Consider the following information & compute Portfolio Risk:

Security Proportion of Standard Expected
Investment Deviation Return
A 40% 3% 13%
B 60% 3% 15%
Co-variance of Stock A & B is 9.
(A) 1%
(B) 3%
(C) 6%
(D) 9%

47. When a portfolio comprises investment in three shares (Share A – 50%, Share B –
25% and Share C – 25%) whose beta factors are 1.5, 1.2 and 1.1, respectively, the
portfolio beta is:
(A) 1.285
(B) 1.432
(C) 1.325
(D) 1.420

48. GRI Co. Ltd., decided to invest in plant and machinery ` 650.00 lakh and life of
asset estimated is 5 years. At the end of the fifth year estimated residual value
3.00 lakh and disposal expenses 1.00 lakh only. The estimated inflow ` 75, 90,
110, 125 and 140 lakh respectively and PVF @ 9% for the year 1-5 as (0.9174,
0.8417, 0.7722, 0.7084 and 0.6499 respectively). Calculate NPV.
(A) 239.66
(B) (-) 239.66
(C) 240.96
(D) – 240.96

49. A company is considering two mutually exclusive projects X and Y. Project X costs
` 3,00,000 and Project Y ` 3,60,000. You have been given below the net present
value, probability distribution for each project:
Project X Project Y
NPV Estimate Probability NPV Estimate Probability
(`) (`)
30,000 0.1 30,000 0.2
60,000 0.4 60,000 0.3
1,20,000 0.4 1,20,000 0.3
1,50,000 0.1 1,50,00O 0.2
Compute the expected net present value of Projects X and Y.
(A) 30,000 : 30,000
(B) 60,000 : 60,000
(C) 90,000 : 60,000
(D) 90,000 : 90,000

50. B Ltd. gives following details:

Equity Capital [` 10 each] `
5,00,000
Market value per share ` 12
Dividend per share ` 2.88
Debentures [` 100] `
2,50,000
Market value per debenture 80
Interest rate 8%
Tax Rate 50%
WACC based on market value = ?
(A) 19.00%
(B) 22.65%
(C) 16.45%
(D) 18.75%

51. Covariance of Security A & B is -0.8

Standard Deviation of A is 4.56% & of B is 2.90%
Calculate Coefficient of correlation.
(A) -0.17
(B) -0.27
(C) -0.605
(D) -0.506

52. An investor purchases an 10% bond having a face value of ` 1,000 and maturity of
5 years for ` 900. A year later he sells it for ` 950 in the market. The holding period
gain of the investor is:
(A) 8.88%
(B) 14.00%
(C) 16.66%
(D) 15.55%
53. Current Assets & Current Liabilities of Deelip Ltd. are 9,60,000 and 3,60,000
respectively. Maximum permissible bank finance as per method III as per Tandon
Committee norms is 3,15,000. What are the core current assets of Deelip Ltd.?
(A) ` 30,000
(B) ` 45,000
(C) ` 60,000
(D) ` 90,000

54. Economic Order Quantity of a product is 6000 units. Its cost per unit is ` 2.50 and
ordering cost is ` 15 per order. If the carrying cost per annum is 10% per annum
for average inventory value, annual consumption in units is :
(A) 1,50,000 units
(B) 3,00,000 units
(C) 1,68,750 units
(D) 2,00,000 units

55. A firm has a Degree of Operating Leverage (DOI) of 5 and Degree of Financial
Leverage (DFL) of 4. The interest burden is ` 300 Lakhs, variable cost as a % to
sales is 75%, and the effective tax rate is 45%. Its fixed cost is:
(A) ` 1600 Lakhs
(B) ` 1450 Lakhs
(C) ` 1500 Lakhs
(D) ` 1700 Lakhs

56. A firm is currently selling its goods on 30 days credit. It is selling 4 Lakh units @ `
12.5 each. Variable cost is ` 10 per unit and average cost is ` 11.5 per unit. The
firm is planning to double the credit period. It will increase the sales by 20% and
bad debts by ` 20,000. If the pre-tax required rate of return of the company is 20%,
what will be the impact on company’s profit if the policy is changed? Assume a 365
days’ year.
(A) Profit will increase by ` 98,000 approx.
(B) Profit will increase by ` 78,000 approx.
(C) Profit will increase by ` 70,000 approx.
(D) Profit will decrease by ` 70,000 approx.

57. Reorder level + Reorder Quantity – (Minimum Consumption × Minimum delivery

period) determines which stock level:
(A) Reorder level
(B) Maximum level
(C) Minimum level
(D) Average level

58. Which statement is true about terms of trade credit of 2/10, net 30?
(A) A 10% cash discount is offered for payment before 30 days
(B) A 2% cash discount can be taken for payment before the 10th of the following
month
(C) A 10% cash discount can be taken if paid by the second day after invoicing
(D) No cash discount is offered from the eleventh day of sales

59. Relationship between Liquidity and Profitability is:

(A) Direct
(B) Inverse
(C) Both are mutually exclusive
(D) None of the above

60. …………………. does not result in a substantial transfer of the risks and rewards of
ownership from one party to other.
(A) Finance Lease
(B) Operating Lease
(C) Sale
(D) None of the above

PART II STRATEGIC MANAGEMENT

61. __________________organisational structure is based on dual channels of authority

and accountability:
(A) Functional
(B) Divisional
(C) Matrix
(D) Free Form

62. __________________strategy involves scaling down the level of business or cut back
in cost or reduction of scale of operations through divestment of some units or
divisions:
(A) Stability
(B) Internal Growth
(C) External Expansion
(D) Retrenchment

63. What is Business Process Re-engineering Risk/Return Level?

(A) High - Low
(B) Medium - High
(C) Low - Low
(D) High – High

64. _______________created the bureaucratic theory, which says an organization will be

most efficient if it uses a bureaucratic structure.
(A) Henry Fayol
(B) George R Terry
(C) Max Weber
(D) Harold Koontz

65. Which of the following is false with respect to Corporate Level Strategy:
(A) It is formulated by Top Level Management
(B) It deals with Entire business organisation
(C) It is long term
(D) Major Strategies include Cost Leadership, Focus & Differentiation

66. A firm successfully implementing a differentiation strategy would expect:

(A) Customers to be sensitive to price increases
(B) To charge premium prices
(C) Customers to perceive the product as standard
(D) To automatically have high levels of power over suppliers

67. What is likely to happen if many new businesses enter a market?

(A) Barriers to entry will rise.
(B) Industry capacity will fall.
(C) Competitive rivalry will intensify.
(D) Industry profits will increase.

68. Identify Defensive Strategy as per TOWS Analysis from the following:

(A) Use Strengths to maximise Opportunities

(B) Minimize Weakness by taking advantage of opportunities
(C) Minimize Weakness and Avoid Threats
(D) Use Strengths to minimize threats

69. Under the BCG growth-share matrix, low-share, high-growth businesses or

products are called
(A) Stars
(B) Cash cows
(C) Question marks
(D) Dogs

70. Which of the following is not a force in the Porter Five Forces model?
(A) Buyers
(B) Suppliers
(C) Complementary products
(D) Industry rivalry

71. Which of the following perspective is not a part of Balance Scorecard?

(A) Financial Perspective
(B) Customer Perspective
(C) Learning and Growth Perspective
(D) Creditors Perspective

72. Top Level Managers require ____________Conceptual skills and ____________technical

Skills.
(A) More, More
(B) Less, Less
(C) More, Less
(D) Less, More

73. Under Six Sigma, IDOV stands for__________:

(A) Identify, Define, Optimize, Validate
(B) Identify, Design, Optimize, Validate
(C) Identify, Define, Optimize, Verify
(D) Improve, Design, Optimize, Validate

74. ______________is a function which brings together human, physical and financial
resources of the organisation.
(A) Planning
(B) Organizing
(C) Controlling
(D) Directing

75. He ensures shareholder value through courageous decision-making that supports

enterprise or unit-wide interest called as _______
(A) Navigator
(B) Entrepreneur
(C) Enterprise Guardian
(D) Talent Advocate

76. Blue Ocean Strategy is concerned with:

(A) Moving into new markets with new products
(B) Creating new market places where there is no competition
(C) Developments of products and markets in order to ensure survival
(D) Making the product unique in terms of attributes

77. In BCG Matrix, what is the label of the Vertical axis?

(A) Relative Market share
(B) Business Strength
(C) National Growth Rate
(D) Market Growth Rate

78. Which of the following is not correct related with reference to PERT?
(A) Compels managers to plan their projects critically in considerable detail from
beginning to the end and analyse all factors affecting the progress of the plan.
(B) Provides management a tool for forecasting the impact of schedule changes. The
likely trouble spots are located early enough to take preventive measures or corrective
actions
(C) A considerable amount of data may be presented in precise manner. The task
relationships are presented graphically for easier evaluation
(D) The PERT time is based upon 5-way estimate and hence is the most objective time
in the light of uncertainties and results in greater degree of accuracy in time
forecasting.

79. ___________structure is suitable for firms operating single or related business:

(A) Functional
(B) Divisional
(C) Matrix
(D) Free Form

80. ______________is designed to check systematically whether the assumptions set

during strategy formulation and implementation process are still valid:
(A) Strategic Leap Control
(B) Strategic Momentum Control
(C) Premise Control
(D) Implementation Control

81. Benchmarking Wheel is a …………. Stage process.

(A) Four
(B) Five
(C) Six
(D) Seven

82. Total Quality Management was initially applied in:

(A) South Korea
(B) Japan
(C) United Kingdom
(D) United State of America
83. __________are the back office processes which reinforce the core processes.
(A) Support Processes
(B) Business Network Processes
(C) Management Processes
(D) None of the above

84. Which category of benchmarking involves multi-site comparison of process and

performance?
(A) Internal
(B) Generic
(C) Competitive
(D) Functional

85. The existence of price-wars in the airline industry in India indicates that:
(A) Customers are relatively weak because of the high switching costs created by
frequent flyer programs
(B) The industry is moving towards differentiation of services
(C) The competitive rivalry in the industry is severe
(D) The economic segment of the external environment has shifted, but the airline
strategies have not changed

86. Potential rivals will not find it difficult to enter a market where:
(A) Existing firms have long-term contracts with the biggest customers.
(B) Product differentiation is very strong.
(C) Existing firms have the ability to retaliate strongly.
(D) Economies of scale are insignificant

87. When management pays attention to more important areas and when the day to
day routine problems are looked after by lower level management, it is known as –
(A) Management by objectives
(B) Management by Exception
(C) Participative Management
(D) Critical path method

88. “Unity of Command” means –

(A) An employee shall give orders to one junior only.
(B) An employee shall receive orders from one senior only.
(C) An employee shall receive orders from as much senior as possible.
(D) An employee shall have one plan for every action.

89. What is synergy?

(A) When the parts of an organization are combined and managed in such a way to
reduce costs
(B) When the parts of an organization are combined and managed in such a way that
the drawbacks exceed those which would result if the parts were operating separately
(C) When the parts of an organization are combined and managed in such a way that
the benefits exceed those which would result if the parts were operating separately
(D) When the organization is providing a product to the customer that perfectly suits
their requirements

90. The Answer to the Question “Are the actions being performed according to the
plan?” is given by which of the following:
(A) Planning
(B) Organizing
(C) Directing
(D) Controlling

91. Gartner coined the term “enterprise resource planning” in _____________:

(A) 1980
(B) 1985
(C) 1990
(D) 2000

92. “Chatbots” is an Example of______________________:

(A) ERP
(B) Industry 4.0
(C) Artificial Intelligence
(D) Block Chain Technology

93. ______________measure is undertaken to assess the impact of any major

environmental events such as technological inventions, regional disturbances,
strategic actions taken by a country:
(A) Strategic Surveillance
(B) Strategic Leap Control
(C) Special Alert Control
(D) Strategic Momentum Control

94. Arrange the following steps of Benchmarking Wheel in Sequence:

(i) Identify Customer Needs
(ii) Formulate a redesign Business Plan
(iii) Implement the Redesign
(iv) Study the Existing Process
(v) Define the Objectives & Framework

Which of the following is correct sequence:

(A) (v),(iv), (i), (ii), (iii)
(B) (v), (i), (iv), (iii), (ii)
(C) (iii), (i), (iv), (v), (ii)
(D) (v), (i), (iv), (ii), (iii)

95. Under Matrix Structure, Authority flows ____________within functional department

while authority of project manager flows __________________:
(A) Horizontally, Vertically
(B) Vertically, Horizontally
(C) Vertically, Vertically
(D) Horizontally, Horizontally

96. Marketing Strategy is a _________________type of Strategy:

(A) Business Level
(B) Corporate Level
(C) Functional Level
(D) All of above

97. Threat of new entrants is high in the following situations except:

(A) There is no/little government regulation
(B) Products are not being able to be differentiated
(C) Customer switching costs are High
(D) There is low customer loyalty

98. Which of the following is not a Support Process under Business Process Re-
engineering Project:
(A) Financial Systems
(B) Order Fulfilment Processes
(C) Human Resources Systems
(D) Information Technology

99. Systems Theory was formulated by:

(A) Douglas and McGregor
(B) Ludwig von Bertalanffy
(C) Elton Mayo
(D) None of the above

100. Which of the following competitive position is a rare phenomenon:

(A) Dominant
(B) Strong
(C) Tenable
(D) Weak