KATHMANDU UNIVERSITY Marks Obtained:

BBA and BBIS

End - Semester Examination
February – June 2016 Session
July 2016

SUBJECT : GEM 231 – Business Management TIME : 10 min.

YEAR :I SEMESTER : II
FULL MARKS : 10

Examination Roll No.:___________________ Registration

No.____________________

SECTION “A”
[10 Q. ×1 = 10 Marks]

Encircle the most appropriate answers from the given choices.

1. A proponent of the classical view of social responsibility would most likely agree with which
of these statements?
a. Social responsibility improves the public image of business
b. The primary responsibility of business is to maximize business profits
c. By acting responsibly, businesses avoid government regulation
d. Business can and should do “good” while doing business.

2. When a manager notices that Namita has strong social needs and puts her in a job that involves
customer relations, while also being sure to give Manish lots of praise because of his strong ego
needs, the manager is displaying which of the following?
a. System thinking
b. Motion study
c. Contingency thinking
d. Open-systems

3. A manager is failing to live up to which of the concepts of MBO when he or she does the
following?
a. Sets performance objectives for subordinates
b. Actively supports subordinates in their work
c. Jointly reviews performance results with subordinates
d. Keeps a written record of subordinates’ performance objectives

4. A manufacturing business with a functional structure has recently developed two new product
lines. Which among the following structures might the president of the company consider
shifting to in order to gain a stronger focus on each product?
a. Virtual
b. Informal
c. Divisional
d. Network

5. Which among the following describes a leader who would be described as achievement
oriented in the path-goal theory?
a. Works hard to achieve high performance
b. Sets challenging goals for others
c. Gives directions and monitors results
 d. Builds commitment through participation

6. When a manager uses e-mail to send a message that is better delivered in person, the
communication process suffers from which of the following?
a. Semantic problems
b. A poor choice of communication channel
c. Physical distractions
d. Information overload

7. Being asked to develop a plan to increase international sales of a product is an example of

which of the following types of problems that managers must be prepared to deal with?
a. Routine
b. Crisis
c. Unstructured
d. Structured

8. A manager who understands the importance of proxemics in communication would be likely to

do which of the following?
a. Avoid sending mixed messages
b. Arrange work spaces so as to encourage interaction
c. Be very careful in the choice of written and spoken words
d. Make frequent use of e-mail messages to keep people well informed.

9. When a problem is addressed according to the positive or negative context in which it is

presented, this is an example of which of the following?
a. Framing error
b. Escalation of commitment
c. Availability heuristics
d. Strategic opportunism

10. When an automobile manufacturer is careful to purchase only the highest-quality raw materials
to be used in production, this is an example of which kind of control?
a. Concurrent
b. Feed forward
c. Feedback
d. Statistical
 KATHMANDU UNIVERSITY

BBA and BBIS

End - Semester Examination
February – June 2016 Session
July 2016
SUBJECT : GEM 231 – Business Management TIME : 2:50 Hrs.
YEAR :I SEMESTER : II
FULL MARKS : 40
SECTION “B”
[6 Q. × 4 = 24 Marks]
Attempt any SIX questions

1. Explain why the external environment is so important in the open-systems view of

organizations.

2. How do you differentiate between an optimizing decision and a satisficing decision?

3. How can MBO be used for better planning and controlling?

4. Briefly describe what a manager would do to be an “active listener” when communicating with
subordinates.

5. Why do you think most small companies use functionally organized departments?

6. Experience is referred often not only as an expensive basis for decision making but also a
dangerous one. Do you agree with this statement? Can managers make a good use of
experience?

7. Why is real-time information not good enough for effective control?

SECTION “C”
[2 Q.× 8 = 16 Marks]
Attempt any TWO questions

8. A growing cosmetics company based out in UK that offers natural beauty products (does not
utilize animals for production and testing) has just received an attractive offer from a business
in India to outsource some of their specific products. The offer would allow for substantial cost
savings over the current supplier. The company manager, however, has read reports that some
Indian businesses use animals for testing and for production of beauty products. What would
you have done if you were the company manager? Explain with justification.

9. You are the president of a company dealing in healthcare that was organized along functional
lines. A consultant suggested that you organize along territorial or product lines. What might
concern you in following this recommendation? Discuss

10. KaushalSapkota supervises a group of seven project engineers. His unit is experiencing a heavy
workload as the demand for different versions of one of his firm’s computer components is
growing. Faisal finds that he does not have time to follow up on all design details for each
version. Up until now he has tried to do this all by himself. Two of the engineers have shown
interest in helping him coordinate work on the various designs. As a consultant, what would
you advise Faisal in terms of delegating work to them? Give reasons.
ANSWER KEY
GEM 231 – Business Management

1. B
2. C
3. A
4. C
5. B
6. B
7. C
8. B
9. A
10. B