Describe the key activities of the Decision – Making Process.
Business Administration
This paper
Business Administration · all yearsQ. 2 · Describe the key activities of…Q. 3 · Briefly describe the steps involved…Q. 4 · What are the important contemporary…Q. 5 · How can the SBUs of…Q. 6 · Discuss the major Brand Strategy…Q. 7 · Compare the important features of…Q. 8 · Describe the main features of…Q. 9 · A company is evaluating the…Q. 10 · DP Company presently has Rs.3…With this paperPart-I MCQs20← 20092013 →Not yet checked 1 of 9 questions have not yet been compared with the official paper.
Section I
Briefly describe the steps involved in setting Corporate Goals.
What are the important contemporary issues in Organizational Control?
Section II
How can the SBUs of a company be classified according to the 'Growth-Share Matrix' of the Boston Consulting Group.
Discuss the major Brand Strategy Decisions for a new range of ladies shoes.
Compare the important features of ‘Value – Based Pricing', 'Good – Value Pricing' and 'Value - Adding Pricing'.
Section III
Describe the main features of the Main Methods of Evaluation of attractiveness of various investment proposals.
A company is evaluating the following three investment proposals: Produce a new line of aluminium trays. Expand its existing cooker line to include several new sizes. Develop a new higher-quality line of cookers. If only the project in question is undertaken, the expected present values and the amounts of investment required are: Project Investment Required Present Value of Future Cash Flows 1 Rs.200,000 Rs.290,000 2 115,000 185,000 3 270,000 400,000 If projects 1 and 2 are jointly undertaken, there will be no economies; the investment required and present values will simply be the sum of the parts. With projects 1 and 3, economies are possible in investment because one of the machines acquired can be used in both production processes. The total investment required for projects 1 and 3 combined is Rs.440,000. If projects 2 and 3 are undertaken, there are economies to be achieved in marketing and producing the products but not in investment. The expected present value of future cash flows for projects 2 and 3 is Rs.620,000. If all three projects are undertaken simultaneously, the economies noted will still hold. However, a Rs.125,000 extension on the plant will be necessary, as space is not available for all three projects. Which project or projects should be chosen?
DP Company presently has Rs.3 million in debt outstanding bearing an interest rate of 12 percent. It wishes to finance a Rs.4 million expansion program and is considering three alternatives: additional debt at 14 percent interest, preferred stock with a 12 percent dividend, and the sale of common stock at Rs.16 per share. The company presently has 800,000 shares of common stock outstanding and is in a 40 percent tax bracket.
- (i)If earnings before interest and taxes are presently Rs.1.5 million, what would be earnings per share for the three alternatives, assuming no immediate increase in profitability?
- (ii)Develop a break-even, or indifference chart for these alternatives.
- (iii)Which alternative do you prefer?
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The 2011 CSS Business Administration paper set by the FPSC. Question wording only; questions marked “Not yet checked” have not been compared with the official paper yet.
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