For Recruitment to the Posts of Provincial Management Service (PMS)
SUBJECT: Business Administration (Paper-1)
Time Allowed: 3 Hours
Maximum Marks: 100
Attempt FIVE questions in all. Attempt in Urdu or English.
Q.1 Explain the following factors that have posed diverse challenges for managers: a) Globalization b) Technology c) Energy crisis d) Social media (4 × 5 = 20 Marks)
Q.2 What are the Big Five personality traits and how do they affect work behavior? (20 Marks)
Q.3 Explain any TWO of the following classical motivational theories: a) Abraham Maslow – Hierarchy of Needs b) Frederick Herzberg – Two-Factor Theory c) Three Needs Theory (10 + 10 = 20 Marks)
Q.4 Briefly explain the following tools of measuring organizational performance: a) Feedforward control b) Concurrent control c) Feedback control d) Balanced Scorecard (4 × 5 = 20 Marks)
Q.5 Explain the role of Information Technology in improving managers’ ability to monitor and control organizational performance. (20 Marks)
Q.6 Structural issues might arise in managing employees’ flexible work arrangements. Explain the relationship between organizational design and such arrangements and how managers can address these issues. (20 Marks)
Q.7 What is a strong culture? How can organizations create an ethical culture and why is it important? (20 Marks)
SUBJECT: Business Administration (Paper-II)
Time Allowed: 3 Hours
Maximum Marks: 100
PART-I: Marketing (50 Marks)
NOTE: Attempt any FOUR questions including Question No. 1 (Compulsory). Attempt in Urdu or English.
Q.1 (Compulsory)
Briefly describe the five different marketing forces/factors that influence marketing strategy of any Pakistani business organization. Also explain how a firm can follow effective marketing management to achieve competitive advantage. (20 Marks)
Q.2
Explain the micro-environmental factors in marketing. Also discuss how changes in demography and economic environment affect marketing decisions. (10 Marks)
Q.3
Explain different advertising objectives. Also describe the major decisions involved in developing an advertising program. (10 Marks)
Q.4
Discuss how companies in Pakistan can use social media and mobile marketing to engage consumers and build brand loyalty. (10 Marks)
Q.5
Explain the three key approaches used by domestic companies in Pakistan to enter international markets. (10 Marks)
PART-II: FINANCIAL MANAGEMENT (50 Marks)
NOTE: Attempt any FOUR questions including Question No. 6 (Compulsory). Use calculator (non-programmable). Attempt in Urdu or English.
Q.6 (Compulsory)
Kohinoor Limited has two investment proposals, which have the following characteristics:
Kohinoor Limited – Investment Proposals Table
Period
Project A Cost (Rs. ‘000)
Project A Profit after Tax (Rs. ‘000)
Project A Net Cash Flow (Rs. ‘000)
Project B Cost (Rs. ‘000)
Project B Profit after Tax (Rs. ‘000)
Project B Net Cash Flow (Rs. ‘000)
0
9,000
—
—
12,000
—
—
1
1,000
5,000
1,000
5,000
2
1,000
4,000
1,000
5,000
3
1,000
3,000
4,000
8,000
For each project, compute its payback period, its net present value, and its profitability index using a discount rate of 15 percent (lO+1O =20 Marks)
Q.7
Seven Star Limited Company currently pays a dividend of Rs. 10 per share and has a share price of Rs. 200. a. If this dividend was expected to grow at a 12 percent rate forever, what is the firm’s expected, or required, return on equity using a dividend discount modelapproach? b. Instead of the situatlon in Part (a), suppose that the dividend was expected to grow at a 20 percent rate for five years and at 10 percent per year thereafter. Now what is the firm’s expected, or required, return on equilty? (lO+1O =20 Marks)
Q.8
(a): Zee Limited is considering a new investment proposal having the following conventional cash flows:
(Zee Limited – Cash Flows Table)
Year-end
0
1
2
3
4
5
6
7
Cash Flows (Rs.)
(28,000)
7,184
8,326
7,109
6,377
6,376
5,929
5,280
Assuming a required rate of return of 14%, determine (i) payback period, (ii) net present value (NPV), and (iii) profitability index (PI) for the proposal.
(b) Using NPV and PI criteria, would this proposal be acceptable? Explain why.
(c) If the IRR is 14.75%, what will be your decision?
Q.9
P-Tex. Llmlted has total annual sales (all credlt) of Rs. 4,000,000 and a gross profit margin of 20 percent. Its current assets are Rs. 800,000; current liabilities, Rs. 6OOO,OO lnventories Rs. 300,000; and cash Rs. 100,000.
a. How much average lnventory should be carried lf management wants the lnventory tumover to be 4? b. How rapidly (ln how many days) must accounts receivable be collected lf management wants to have an average of Rs. 500,000 lnvested ln recelvables? (Assume a 360-day year). (5+5 =10 Marks)
Q.10
(a) Differentiate passive and active dividend policy. (5 Marks) (b) Briefly describe according to the pecking order theory why firms prefer internal financing to external financing.(5 Marks)
