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IVA01EMI Entrepreneurship and Management of Innovations.docx
IVA02MCS_MANAGEMENT CONTROL SYSTEM.docx
IVA05SMA-SERVICES MARKETING.docx
IVA05WCM_WORKING CAPITAL MANAGEMENT.doc
IVA06IFM INTERNATIONAL FINANCIAL MANAGEMENT .doc
IVA06SHR STRATEGIC HUMAN RESOURCE MANAGEMENT.docx
IVA06SMB STRATEGIC MARKETING AND BRAND MANAGEMENT.docx
IVA07GSC Global Supply Chain Management.doc
IVA07IHR INTERNATIONAL HUMAN RESOURCE MANAGEMENT.doc
IVA07RMA RETAIL MANAGEMENT.docx
IVA07SFM STRATEGIC FINANCIAL MANAGEMENT MBA.docx
IVA08IMA INSURANCE MANAGEMENT.doc
IVA08MHS MANAGING HOSPITALITY SERVICES.docx
Seat No.__________
GANPAT UNIVERSITY ONLINE M. B. A. SEMESTER- IV REGULAR
EXAMINATION
MAY-JUNE 2020
IVA01EMI Entrepreneurship and Management of Innovations
TIME: 2 HRS. WT.: 40 Marks
Part I MCQ (20 Marks)
1.Which of the following inputs is NOT involved in entrepreneurship?
o Opportunity
o Proactive individual(s)
o Risk
o External locus of control
2.Women-owned businesses may be smaller than those owned by men because they:
o cannot find good quality training programs.
o have a more difficult time finding employees.
o do not have equal access to capital.
o do not have as much management experience as men.
3.In a business plan, the succession plan becomes more of a concern for bankers and investors:
o when there are more than three children involved.
o as the entrepreneur ages.
o when the entrepreneur has no children.
o if a family council exists.
4.The business plan must show consistent, but manageable projected growth because:
o many entrepreneurs fail after expanding too rapidly.
o investors want to see quick growth.
o banks are interested in profits, not expenses.
o bankers and investors prefer small companies.
5.A new business should keep in reserve enough working capital to cover expenses for:
o one to two months.
o six months to one year.
o three to six months.
o two to five years.
6.Two common forms of partnerships are:
o public and private.
o trade and consumer.
o S partnerships and C partnerships.
o general and limited.
7.A legal agreement between two parties to operate for a specific purpose and for a limited
period of time is called a(n):
o joint venture.
o limited partnership.
o general partnership.
o S corporation.
8.If an entrepreneur's business is based on current technology, an uncontrollable risk might be:
o changes in consumer tastes.
o new technology developments.
o the weather.
o fashion trends.
9.The period of business when an entrepreneur must position the venture in a market and make
necessary adjustments to assure survival is called the:
o pre-startup stage.
o startup stage.
o early growth stage.
o later growth stage.
10 Which of the following is a purpose of a business plan?
o to attract financing.
o to inform competitors of plans.
o to discipline the entrepreneur to think of all aspects of the proposed venture.
o to attract financing and to discipline the entrepreneur to think of all aspects of the
proposed venture.
11A recently formed business enterprise that provides goods and/or services for sale is called
a(n) _________.
o nascent operation
o organization
o small business
o new venture
12 In a business plan, risks should be handled by:
o ignoring them.
o a brief description of the steps that will be taken if the uncontrollable risk
actually develops.
o a detailed plan for handling every imaginable uncontrollable risk.
o Stating an awareness of the risks.
13 Which of the following are true, except:
o SMEs often lack scale and scope.
o SMEs often lack financial resources.
o SMEs often lack entrepreneurship, innovation and adaptation.
o SMEs often lack manpower.
14 Name the institution which was set up in 1982 to promote integrated rural development
o NSIC
o NABARD
o SIDBI
o NCEUS
15 A short-term, internal source of funds can be obtained by reducing all of following EXCEPT
o Short-term assets
o Cash
o Fixed Assets
o Inventory
16 The most common form of organization for a small business is:
o Partnerships
o Corporations
o Sole proprietorships
o Limited companies
17 Which of the following is idea generation method that focuses on parameters?
o Brainstorming
o Reverse brainstorming
o Creative problem solving
o Synoptic
18 Innovation can best be defined as:
o the generation of new ideas
o the evolution of new ideas
o the opposite of creativity
o the successful exploitation of new ideas
19 User innovation is:
o less likely than manufacturer innovation
o more difficult to manage than other types of innovation
o when the developer expects to benefit by using it
o when the developer expects to benefit by selling it
20 Strategic entrepreneurial marketing has been summarised as the 4Is: identification of target
markets, interactive marketing methods, informal intelligence gathering and – what is the fourth?
o independence
o interactiveness
o innovation
o Internet
Part II Subjective type questions (20 Marks)
Q # 1 To boost entrepreneurship in micro, small and medium enterprises (MSME), the Small
Industries Development Bank of India (SIDBI) has number of functions to play.
Elaborate on the efforts made by SIDBI in order to promote entrepreneurship.
05
Q # 2 The extraordinary growth of the Reliance Group of companies was based on the vision,
energy and lobbying power of Dhirubhai as well as the willingness and ability of the
Indian government to promote its expansion. The competition now is with major
multinational players whose ability to influence governments in various ways is well
known. Right from the time he suffered his first stroke in 1986, Dhirubhai groomed his
sons Mukesh and Anil Ambani to take care of the day-to-day operations of Reliance. It
was from Dhirubhai that his sons imbibed the quality to think big. Mukesh's skills were
quite evident from his successful management of the Patalganga and Jamnagar projects
and Anil was adept at the finances. Despite their elite education, their most important
training came from Dhirubhai. He provided them with a strategic vision. His sons
always considered themselves as co – builders rather than inheritors of Reliance.
Dhirubhai's words way back in 1993 reflected the immense confidence he restored in his
sons, "Reliance can now run without me." After his demise, Mukesh was appointed the
Chairman and Managing Director of the Reliance group while Anil became the Vice
Chairman.
Explain the advantages to Reliance group of companies by remaining as family
owned business
07
Q # 3 IndiaCo: A Business Incubator with a difference IndiaCo is an investment management
firm listed on the Bombay Stock Exchange. The promoters of IndiaCo have a long
history in India. It was the first company in India to launch a private incubator in 2000. In
2002, this incubator was recognized by the World Bank group and also received support
from the Department of Science & Technology, Government of India. Business
incubation is a business support process that facilitates in the successful development of
start-ups and early growth stage companies by providing entrepreneurs with an array of
resources and services through its network of contacts. A business incubators’ main goal
is to produce successful firms that will leave the project financially viable and self
sustaining. The promoter of IndiaCo aim to provide transparency and regularize a new
model for private equity markets. They invest the capital required to frame the new
business model of the acquired company. IndiaCo has had the experience of working
with incubators across different geographical locations. Based on its experience, the most
common problems that business incubators face in developing countries are the lack of
innovative high-growth projects IndiaCo; non-availability of capital; lack of basic
operating infrastructure; and problems of self-sustenance. Institutional marketing for
incubators is a major challenge in most developing countries.
Since its inception, IndiaCo has been active in the area of incubation and technology
transfer, the key success factors of IndiaCo are the entrepreneurial experience of the
founder; visionary leadership; strategic positioning in the domestic and international
markets; good management teams; and milestone-based e-mentoring. IndiaCo functions
as a “venture creation engine” for high-tech start-ups and early-stage companies. It
provides the infrastructure and network to translate research into innovative products to
support entrepreneurs. The international network at IndiaCo is made available to the
companies even before they graduate from the incubator. The traditional model of
business incubators consist of a group of start-up firms that are located in a common
physical space sharing various resources and mentorship. IndiaCo follows an equity
model unlike most incubators. It deploys its funds and investment directly through the
holding company into portfolio companies. This structure provides the flexibility to
invest in the holding company, a sector of choice, or just the company of choice.
1. Critically examine how IndiaCo enables new venture creation?
2. Why is IndiaCo a business incubator with a difference?
08
Page 1 of 3
Seat No.__________
GANPAT UNIVERSITY ONLINE M. B. A. SEMESTER- IV EXAMINATION
MAY-JUNE 2020
IVA02MCS MANAGEMENT CONTROL SYSTEMS
TIME: 2 HRS. WT.: 40 Marks
Part I MCQ (20 Marks) 1. Following is not the characteristics of a Service Organization.
a. Absence of Inventory Buffer
b. Difficulty in Controlling Quality
c. Labour intensive
d. Continuous process
2. Which one out of the following is the characteristic of a Financial Service Organization?
a. Labor Intensive
b. Quality Control
c. Time period of service delivery
d. Customization
3. High level of professionalism and importance of quality control is very much crucial in which
form of service organization?
a. Financial Services
b. Educational Services
c. Healthcare Services
d. Leg al advisory Services
4. Third party payers are present in
a. Financial services
b. Educational Services
c. Healthcare Services
d. Legal Advisory Services
5. Fund accounting and governance are special characteristics of
a. Law firm
b. Educational service
c. Not for profit firm
d. Architectural firm
6. Which among the followings is not the cultural dimension as per Hofstede?
a. Power Distance
b. Delegation of Authority
c. Individualism
d. Uncertainty Avoidance
7. What refers to as shared values, assumptions, and norms of behaviour?
a. Mission
b. Ethics
c. Culture
d. Motivation
8. Decentralization of decision making and participation in budget preparation is crucial in
a. The dimension of power distance
b. The dimension of Individualism
c. Uncertainty avoidance
d. Masculinity
9. The nations having highly collectivistic culture are,
Page 2 of 3
a. USA, Australia, UK
b. Saudi Arabia, Venezuela, Peru
c. USA, Russia, Saudi Arabia
d. China, UK, India
10. Preference for reward is very important element of management control system in,
a. The dimension of power distance
b. The dimension of Individualism
c. Uncertainty avoidance
d. Masculinity
11. Foreign exchange hedging strategies are used to manage
a. Translation exposure
b. Transaction exposure
c. Transnational exposure
d. Economic exposure
12. The exchange rate prevailing at the time budgets are set is
a. Initial Exchange rate
b. Projected Exchange rate
c. Actual Exchange rate
d. Ending Exchange rate
13. Structure and process of management control systems depend upon various external and
internal factors, known as
a. Goal Congruence
b. Contingency Theory
c. Competency Theory
d. Strategic Management
14. Which one from the following is not the factor influencing control system design:
a. Size
b. Strategy
c. Technology
d. Materials
15. The organizational structure of single industry firm is
a. Functional
b. Business Units
c. Holding Company
d. Matrix
16. When profitability is measured with the total assets employed, it is known as
a. Profit center
b. Expense center
c. Revenue center
d. Investment center
17. The negative aspect of ROI as the measure of performance is,
a. It is easy to calculate
b. It is easy to understand
c. It is Short-sighted
d. It is not used widely
18. EVA is used beyond a control tool as following except,
a. For strategic direction
b. For valuing acquisitions
c. For product discontinuation
d. For Environment scanning
19. It starts with the approval of plan, resource allocation and financing and ends when the
objectives get accomplished/ cancelled.-What are we talking about here?
a. A control system design
b. A performance appraisal
c. A balance scorecard
Page 3 of 3
d. A Project
20. Headquarter management, relieved of day-to-day decision making and can concentrate on
broader issues.- This is a benefit of,
a. Profit center
b. Revenue center
c. Expense center
d. Management control system
Part II Subjective type questions (20 Marks)
Q # 1 Analyze the current situation the world is facing and provide the elements of
Management Control System that the healthcare provider in particular has to incorporate
additionally with its ongoing operation.
5
Q # 2 Why devising a Management Control System is challenging when the case is of
Multinationals? Discuss the crucial elements.
5
Q # 3 In organizations, there are interrelated units where the output of one unit may be the
material used for another. How Management Control Systems comes in question here?
What are the various methods you can use so that it will bring an optimum common
ground for both the units?
5
Q # 4 Explain the need for having different responsibility centers. Why there is a constant
debate on ROI and EVA as better measure of profitability?
5
Page 1 of 4
Seat No.__________
GANPAT UNIVERSITY ONLINE M. B. A. SEMESTER- IV REGULAR EXAMINATION
JUNE 2020
IVA05SMA SERVICES MARKETING
TIME: 2 HRS. WT.: 40 Marks
Part I MCQ (20 Marks) Choose only one option which is most appropriate.
Each question carries one mark.
1. In the Gaps Model of Service Quality, difference between customer expectations and
perceptions refers to
a) Provider gap 1
b) Provider gap 2
c) Provider gap 3
d) Customer gap
2. Products high in search qualities are more difficult to evaluate compared to products high on
credence qualities. This statement is _________
a) True
b) False
c) May be, True
d) May be, False
3. Services cannot be easily patented due to the characteristic of:
a) Heterogeneity
b) Perishability
c) Intangibility
d) Inseparability
4. Which of the following is not an element of physical evidence?
a) Employee Dress
b) Facility design
c) Branding
d) Signage
5. A dominant logic for marketing that suggests that all products and physical goods are valued
for the service they provide. This statements relates to looking at services as
a) Pure services
b) Value-added services
c) Customer services
d) Derived services
Page 2 of 4
6. Customers’ service expectations are bounded by desired and adequate service levels. The
difference between desired service and the level of service considered adequate is called the
____________ .
a) Service encounter
b) Customer-defined standards
c) Moments of truth
d) Zone of tolerance
7. Customer expectations that are driven by another person or group of people is called
________
a) Adequate services expectation
b) Derived service expectation
c) Desired service expectation
d) Perceived service expectation
8. In Service Blueprint, the line separating all service activities that are visible to the customer
from those that are not visible is called _________
a) Line of interaction
b) Line of support processes
c) Line of internal interaction
d) Line of visibility
9. For an airlines company, on-time arrival is example of ____________
a) Hard customer-defined standards
b) Soft customer-defined standards
c) Inadequate customer-defined standards
d) Elastic customer-defined standards
10. Tone of voice on telephone calls while resolving customer complaints is example of
______________
a) Hard customer-defined standards
b) Soft customer-defined standards
c) Inadequate customer-defined standards
d) Elastic customer-defined standards
11. Mass production is difficult. This describes the ___________characteristic of services
a) Intangibility
b) Inseparability
c) Perishability
d) Heterogeneous
12. Which product do you feel is high in credence quality?
a) Clothing
b) Auto repair
c) Vacation
d) Hair cut
Page 3 of 4
13. The second level of relationship strategies for retaining customers and building switching
barriers refers to:
a) Financial bonds
b) Structural bonds
c) Social bonds
d) Customizations bonds
14. The last stage of the new service development process is:
a) Commercialization
b) Market testing
c) Business Analysis
d) Postintroduction evaluation
15. Which service quality dimension captures the notion of flexibility and ability to customize
the service to customer needs?
a) Tangibles
b) Reliability
c) Assurance
d) Empathy
16. Which of the following business could be considered as a pure services?
a) Teaching
b) Fast-food outlets
c) Cosmetics
d) Automobiles
17. Going-rate pricing in services industry is an example of:
a) Competition based pricing
b) Demand-based pricing
c) Cost based pricing
d) Fee based pricing
18. Which of the following could be used to develop a service architecture?
a) Quality function deployment (QFD)
b) Service Blueprinting
c) Both QFD and Service Blueprinting
d) SERVQUAL
19. The pricing strategies when the customer means “Value is the quality I get for the price I
pay” include
a) Prestige pricing
b) Price framing
c) Synchro-pricing
d) Market segmentation pricing
Page 4 of 4
20. A marketing research method in which a customer is asked a short list of questions
immediately after a particular transaction about their satisfaction is known as
a) Complaint solicitation
b) Critical incident studies
c) Trailer calls
d) Cold calls
Part II Subjective questions exam (20 Marks)
Write your subject related information i.e name, enrolment number etc on main page as
instructed in your training and university guidelines.
Write in full scape paper or in A4 size papers.
Write new question on new page.
Upload single scanned pdf file in inpod. Send the same pdf file to instructor via email.
Q # 1 Describe the key differences between customer evaluation of pricing for services and
goods. List the common pricing structures in services and explain the challenges
associated with their use
5
Q # 2 Explain characteristics of an effective service guarantee. Comment on when to not to use
service guarantees as a particular type of recovery strategy. 5
Q # 3 What are customer-defined service standards? Describe how to translate customer
expectations or requirements into behaviors and action that are specific and actionable. 5
Q # 4 "The zone of tolerance varies across customers and expands or contracts with the same
customer". Comment on this statement. Also, explain the factors that influence customer
expectations of services.
5
Page 1 of 3
Seat No.__________
GANPAT UNIVERSITY ONLINE M. B. A. SEMESTER- IV REGULAR EXAMINATION
APRIL-JUNE 2020
IVA05WCM WORKING CAPITAL MANAGEMENT
TIME: 2 HRS. WT.: 40 Marks
Part I MCQ (20 Marks)
1. The risk that the market price of an asset will decline, resulting in a capital loss when sold.
Sometimes referred to as interest-rate risk. It is,
A. Default risk
B. Market risk
C. Political risk
D. Inflation risk
2. The probability that a borrower will fail to meet one or more promised principal or interest
payments on a loan or security is,
A. Market risk
B. Default risk
C. Inflation risk
D. Currency Risk
3. Which one among the following is not the basic ingredient of financial flexibility and profitability?
A. Cost
B. Reserve
C. Amount
D. Time
4. Financial Flexibility is not
A. Stability of earnings
B. Relative debt/equity position
C. Opportunity cost
D. Availability of credit lines
5. Cash management is not concerned with the managing of:
A. cash balances held by the firm at a point of time by financing deficit or investing surplus cash
B. cash flows into and out of the firm,
C. Cash use in inventory and sales
D. cash flows within the firm, and
6. Four Facets of Cash Management do not include
A. Cash planning
B. Optimum cash level
C. Credit granting decision
D. Managing the cash flows
7. Which is considered as Traditional Measures of the liquidity?
A. Quick ratio
B. Assets employed ratio
Page 2 of 3
C. Net margin ratio
D. Market Efficiency ratio
8. Working capital provided by financing activities is all but not,
A. Increase in share capital
B. Sale of finished goods
C. Sale of non current assets
D. Increase in long term liabilities
9. Select among the transactions that decrease working capital are classified as uses of fund
A. Purchase of non current assets
B. Dividends
C. Decrease in long term liabilities
D. Issuance of share capital
10. An increase in current asset balance cause an increase in working capital. The increase may be
due to following except,
A. Issuance of debentures in exchange of current liabilities
B. Issuance of fresh share capital
C. Working capital provided by current operations
D. Purchase of long term assets
11. Model for Optimum Cash Balance under Certainty is
A. Stone Model
B. Modigliani and Miller model
C. The Miller–Orr Model
D. Baumol’s Model
12. The model of Optimum Cash Balance under Uncertainty is
A. Modigliani and Miller model
B. The Miller–Orr Model
C. Stone Model
D. Beranek Model
13. The assumption of Boumol's model is all but not
A. The firm’s cash payments fluctuates over a period of time.
B. The opportunity cost of holding cash is known and it does not change over time
C. The firm will incur the same transaction cost whenever it converts securities to cash
D. The firm is able to forecast its cash needs with certainty.
14.The cash optimization model which talks about the control limits is
A. Baumol's model
B. Beranek model
C. Stone model
D. Miller-Orr model
15.The rationale for the extension of credit does not include
A. Financial motive
B. Contracting Cost Motive
C. Precautionary motive
D. Operating Motive
16.Sources of credit information do not include
A. Trade checking
B. Bank references
Page 3 of 3
C. Customer bureaus
D. Financial statements
17. Five C’s of credit do not include
A. Cost
B. Character
C. Collateral
D. Capital
18. The task of monetary system is all except
A. Mobilising the savings of the community and enlarging the financial savings pool
B. Promoting efficiency in the allocation of the savings of the community to relatively more
productive purposes in accordance with national economic goals
C. Restricting price stability
D. Enabling the resource needs of the major entrepreneur in the country, i.e. the government, to be in
adequate measure
19. Which among the following is not included in Sources of Reserve Money
A. Government’s Currency Liabilities to the Public less Net non-monetary liabilities of RBI
B. RBI credit to Individuals
C. Net Foreign Assets of RBI
D. Net RBI credit to Government
20. Narrow money is denoted as
A. M0
B. M1
C. M2
D. M4
Part II Subjective type questions (20 Marks)
Q # 1 A firm has Rs 800 per year carrying cost on each unit of inventory, an annual usage
rate of 50000 units and an ordering cost of Rs 1500 per order. Ignoring any potential
stock out costs:
1. Calculate the economic order quantity for the firm.
2. What would be the total annual inventory costs of the firm if it orders in this
quantity?
5
Q # 2 In the current COVID-19 crisis, what approach of working capital management you will
follow for the Retail business and Construction business respectively. Substantiate your
answers with sound arguments.
5
Q # 3 "For efficient management of working capital, it is essential to have knowledge about
the existing money market conditions."-Discuss the reasons with the explanation of
Indian Money Market and its functionality.
5
Q # 4 How Discriminant Analysis is different than Heuristics approach? Explain in detail. 5
Page 1 of 4
Seat No.__________
GANPAT UNIVERSITY ONLINE M. B. A. SEMESTER- IV EXAMINATION
MAY-JUNE 2020
IVA06IFM INTERNATIONAL FINANCIAL MANAGEMENT
TIME: 2 HRS. WT.: 40 Marks
Part I MCQ (20 Marks)
1. The commonly accepted goal of the MNC is to:
a. maximize short-term earnings.
b. maximize shareholder wealth.
c. minimize risk.
d. maximize international sales.
2. The __________ refers to the orderly relationship between spot and forward currency exchange
rates and the rates of interest between countries.
a. one-price rule b. interest-rate parity c. purchasing-power parity d. exchange-power parity
3. Interest rate swaps are usually possible because international financial markets in different countries
are
a) Efficient b) Perfect c) Imperfect d) both Efficient & Perfect
4. An arbitrageur in foreign exchange is a person who
a) earns illegal profit by manipulating foreign exchange
b) causes differences in exchange rates in different geographic markets
c) simultaneously buys large amounts of a currency in one market and sell it in another market
d) None of the these
5. A floating exchange rate
a) is determined by the national governments involved
b) remains extremely stable over long periods of time
c) is determined by the actions of central banks
d) is allowed to vary according to market forces
6. According to the Purchasing Power Parity (PPP) theory,
a) Exchange rates between two national currencies will adjust daily to reflect price level differences
in the two countries
b) In the long run, inflation rates in different countries will equalize around the world
c) In the long run, the exchange rates between two national currencies will reflect price level
differences in the two countries
d) None of these
7. A simultaneous purchase and sale of foreign exchange for two different dates is called
a) currency devalue b) currency swap c) currency valuation d) currency exchange
8. Example of derivative securities includes
a. swap contract
b. option contract
c. futures contract
d. all of these
Page 2 of 4
9. The forward market is especially well-suited to offer hedging protection against
a. translation risk exposure.
b. transactions risk exposure.
c. political risk exposure.
d. taxation.
10. Which category does external commercial borrowing is categorised as under the balance of payment
(BOP) accounting principles
a. Current account
b. Capital account
c. Official reserve account
d. Exports
11. Which of the following is a credit transaction under the BOP’s accounting principle
a. Imports of goods and service
b. Unilateral transfer (or gifts) made to foreigner
c. Capital inflow
d. None of these
12. Which of the following forecasting techniques would best represent the use of today's forward
exchange rate to forecast the future exchange rate?
a. fundamental forecasting. c. technical forecasting.
b. market-based forecasting. d. mixed forecasting.
13. Which of the following is not true regarding host government attitudes towards foreign direct
investment (FDI)?
a. Host governments may offer incentives to MNCs in the form of subsidies in certain
circumstances.
b. Host governments generally perceive FDI as a remedy to eliminate a country's political
problems.
c. The ability of a host government to attract FDI is dependent on the country's markets and
resources.
d. Some types of FDI will be more attractive to some governments than to others.
14. If inflation in New Zealand suddenly increased while euro area inflation stayed the same, there
would be:
a. an inward shift in the demand schedule for NZ$ and an outward shift in the supply schedule
for NZ$.
b. an outward shift in the demand schedule for NZ$ and an inward shift in the supply schedule
for NZ$.
c. an outward shift in the demand schedule for NZ$ and an outward shift in the supply
schedule for NZ$.
d. an inward shift in the demand schedule for NZ$ and an inward shift in the supply schedule
for NZ$.
15. The primary component of the current account is the:
a. balance of trade.
b. balance of money market flows.
c. balance of capital market flows.
d. unilateral transfers.
16. _____________ are most commonly classified as a direct foreign investment.
a. Foreign acquisitions
b. Purchases of international stocks
c. Licensing agreements
d. Exporting transactions
17. The international Fisher effect (IFE) suggests that:
a. a home currency will depreciate if the current home interest rate exceeds the current
foreign interest rate.
Page 3 of 4
b. a home currency will appreciate if the current home interest rate exceeds the current
foreign interest rate.
c. a home currency will appreciate if the current home inflation rate exceeds the current
foreign inflation rate.
d. a home currency will depreciate if the current home inflation rate exceeds the current
foreign inflation rate.
18. According to the international Fisher effect, if euro investors expect a 5% rate of domestic
inflation over one year, and a 2% rate of inflation in the US, and require a 3% real return on
investments over one year, the nominal interest rate on one-year euro Treasury securities
would be:
a. 2%.
b. 3%.
c. 5%.
d. 8%.
19. Largest number of buyer and seller , greater the
a. Liquidity
b. Speculation
c. Hedging
d. Forward rate 20. Assume you are an exporter and you want to sell USD that you have received as export remittance.
The bank quotes a price of 45.10/ 45.12 for USDINR. At what price can you sell one unit of USD? a. 45.12 b. 45.11 c. 45.09 d. 45.10
Part II Subjective type questions (20 Marks)
Q # 1 1. Suppose that the current spot exchange rate is €1.05/$ and the three-month forward
exchange rate is €1.02/$. The three-month interest rate is 5.6 percent per annum in the
United States and 5.45 percent per annum in France. Assume that you can borrow up to
$1,000,000 or €1,050,000.
a. Show how to realize a certain profit via covered interest arbitrage, assuming that you
want to realize profit in terms of U.S. dollars. Also determine the size of your arbitrage
profit.
b. Assume that you want to realize profit in terms of euros. Show the covered arbitrage
process and determine the arbitrage profit in euros.
5
Q # 2 2. Assume you are a trader with Deutsche Bank. From the quote screen on your computer
terminal, you notice that Dresdner Bank is quoting €1.242/$1.00 and Credit Suisse is
offering SF1.5030/$1.00. You learn that UBS is making a direct market between the
Swiss franc and the euro, with a current €/SF quote of 0.7650. Show how you can make a
triangular arbitrage profit by trading at these prices. (Ignore bid-ask spreads for this
problem.) Assume you have $5,000,000 with which to conduct the arbitrage. What
happens if you initially sell dollars for Swiss francs? What €/SF price will eliminate
triangular arbitrage?
5
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Q # 3 A Ltd and B ltd Companies can borrow for a five-year term at the following rates:
A Ltd B Ltd
Fitch’s credit rating AA BAA
Fixed rate borrowing cost 10 % 12.5%
Floating rate borrowing
cost
LIBOR LIBOR+1.5
a. Calculate the quality spread differential (QSD).
b. Develop an interest rate swap in which both A ltd and B ltd have an equal cost
savings in their borrowing costs. Assume A ltd desires floating-rate debt and B ltd
desires fixed-rate debt. No swap bank is involved in this transaction.
5
Q # 4 Putting yourself in the position of an MNC Manager, list out major steps that you
would like to evaluate the feasibility of an overseas project.
5
End of Paper
Page 1 of 4
Seat No.__________
GANPAT UNIVERSITY ONLINE M. B. A. SEMESTER- IV REGULAR EXAMINATION
MAY-JUNE 2020
IVA06SHR STRATEGIC HUMAN RESOURCE MANAGEMENT TIME: 2 HRS. WT.: 40 Marks
Part I MCQ (20 Marks)
Q # 1 In Strategic human resource management, HR strategies are generally aligned with
a. Business Strategy
b. Marketing Strategy
c. Finance Strategy
d. Economic Strategy
1
Q # 2 The metrices which explains the value created by employees; provides a means of
productivity and expense analysis
a. Profit per employee
b. Human capital value added
c. HR Expense factor
d. Yield ratio
1
Q # 3 Human Resource Strategy in which focus is mainly on innovation, growth and
decentralized structuring of firm is classified as
a. cost leadership
b. differentiation
c. organisation centralisation
d. competency advantage
1
Q # 4 Immigration regulation against spouse employment is an example of which type of
compensation
a. deferred compensation
b. skill based compensation
c. variable compensation
d. benefits based compensation
1
Q # 5 If a bank is acquiring the majority shares of a manufacturing company then it should
a. push for quick post acquisition integration of HR Systems.
b. push for slow post acquisition integration of HR Systems
c. never try to integrate HR Systems at all
d. engage external consultant to design a common business process
1
Q # 6 Imagine a company is going to lose a few senior managers within a few months on
account of superannuation and needs immediate replacement of those managers.
Then most likely it will
a. seek help of professional employment agencies
b. seek placement cell if academic institutes
c. place professionally designed advertisements in local newspapers
d. go for short-term contract for a few recruits from open market
1
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Q # 7 Which is not a type of a career issue in repatriation process
a. Anxiety for the job role
b. Adoption of culture in the organization
c. Family readjustment
d. Adaptation to change
1
Q # 8 Which of the following is not a common HR Metrics
a. Capital asset pricing
b. Training investment factor
c. Turnover costs
d. Yield ratio
1
Q # 9 The metric which explain the value of employee knowledge, skills, and
performance and how much human capital adds increment value to an organization
a. Profit per employee
b. Human capital return on investment
c. Human capital value added
d. Capital return on investment
1
Q # 10 ______________provides some variety by increasing the number of tasks, activities,
or jobs to help alleviate the boredom of highly specialized work.
a. Job rotation
b. Job enlargement
c. Job description
d. Job specification
1
Q # 11 The process of reassigning the supervisory responsibilities to employees
is commonly referred to as
a. Horizontal loading
b. Transactional loading
c. Vertical loading
d. Rotational loading
1
Q # 12 Which of the following a personality dimension not as Personality type in ‘Big Five
Personality’ model
a. extraversion
b. agreeableness
c. conscientiousness
d. ruggedness
1
Q # 13 Which is following is not Judgement error in performance appraisal
a. Halo effect
b. Horn effect
c. Regains effect
d. Stereotyping
1
Q # 14 A Scale in which enlists traits and performance values is called
a. Force distribution
b. Graphic rating scale
c. Management by Objectives
d. alteration ranking method
1
Q # 15 ___________ equity considers employee perceptions of pay differentials among
individuals who hold identical jobs in the same organization
a. Internal equity
1
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b. External equity
c. Individual equity
d. Group equity
Q # 16 Which of the following is a short term strategy for managing surplus of employees
a. Offer early retirement
b. Hiring freezing
c. Voluntary leaves
d. Cross training of employees
1
Q # 17 Nalcom, the manager of the sales department at a automotive firm, is in the process
of evaluating his staff's performance. He has determined that 10% of the group will
be identified as high performers, 20% as above average performers, 25% as average
performers, 20% as below average performers, and 25% as poor performers. Which
performance appraisal tool has Malcom chosen to use?
a. behaviorally anchored rating scale
b. management by objectives
c. forced distribution
d. alternation ranking
1
Q # 18 In which of staffing approach the coordination and communication is controlled by
headquarter to the local subsidiary
a. Polycentric
b. Ethnocentric
c. Regio-centric
d. Geocentric
1
Q # 19 The process of bargaining under which the workers and management representative
negotiate on working hours, wages and employment conditions is known as
a. union bargaining
b. distributive bargaining
c. descriptive bargaining
d. collective bargaining
1
Q # 20 The VRIO framework can be used to identify
a. a firm's resources and external opportunities.
b. the organizational structure of multinational firms.
c. a firm's technical resources.
d. a firm's core competencies.
1
Part II Subjective type questions (20 Marks)
Q # 1 How does Strategic HR has evolved in today’s organizational context and it is
differentiable from HRM?
5
Q # 2 A multinational firm operating in India, want to transfer its employees from it
headquarter to its international divisional office located. What kind of training is
required for employees by the HR Department prior going for the assignment?
5
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Q # 3 During COVID19, How technology helps the Organization to train their employees at
living spaces and what are its benefits and pitfalls? Illustrate with example?
5
Q # 4 Softcore Technologies is acquired by Fincare Technologies. As a HR Head of Fincare
Technologies, what step do you take to make the smooth transition between both the
companies and how will you reduce the employee stress.
5
Page 1 of 4
Seat No.__________
GANPAT UNIVERSITY ONLINE M. B. A. SEMESTER- IV REGULAR EXAMINATION