CSS Business Administration Past Paper 2006
PART-2(Subjective) 80 Marks
Attempt ONLY FOUR questions from PART-II selecting AT LEAST ONE question from EACH SECTION. (20×4)
PART-II
SECTION – I (MANAGEMENT)
Q.1. (a) What is negotiation?
(b) What are the major negotiation strategies?
(c) How do the two major bargaining strategies differ?
Q.2. How can a manager serve as a change agent? Describe the major organizational development techniques used to facilitate the change process.
SECTION-II: (Principles of Marketing)
Q.3. Retailers can position themselves at four levels of service. List and describe those levels. Also, discuss supply chain management.
Q.4. Diamond Machine Technology makes a tool for sharpening the blades of pruning shears and grass clippers. The company has invested $250,000 in developing this sharpener. This tool is about the size of a piece of chewing gum and costs $3 to make. Fixed costs for the sharpener are $10,000. The company expects to sell 100,000 sharpeners this year. Diamond Machine’s markup on sales is 30% and it wants to earn a 20% ROI. Calculate its markup price and its target-return price, as well as its breakeven volume at both prices. Which price should Diamond Manufacturing use?
SECTION-III: (Financial Management)
Q.5. General Electric Company has annual sales (all on credit) of $1.6 million. Their average collection period is 40 days, and they typically have an inventory turnover of 8. Their gross profit margin is 20 percent. Assume, for ease of collection, a 360-day year:
(a) Calculate the company’s accounts receivable.
(b) Calculate the amount in inventory.
Q.6. Cavalier Construction Company is considering buying one of two machines, A or B; the respective costs and benefits of each are listed below:
(a) Calculate the after-tax cash flow for each machine. Assume, for ease of calculation, straight-line depreciation and no salvage value for either machine. The firm’s tax rate is 40 percent and its required rate of return is 16 percent.
(b) Calculate the NPV of each machine and determine which would you select and why?