-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment-(2019-21 Batch)
18MBAFM301–Banking and Financial Services
Submission Deadline: 23rd October.., 2020
Course Outcomes:
1. Understand the functioning of Investment banking 2. Be aware of operation connected with depositories and custodians 3. Know how financial services like factoring, venture capital, leasing and hire purchase are provided in
the financial system.
4. Understand the working of Housing finance and non-banking finance companies. 5. Identify the developments happening in micro finance, credit rating and securitization system.
Note: Answerthe following Questions:
*Weightage CL* CO*
1. a. What is Underwriting? 2 1 1
b. Explain the features of SEBI (Depositary & Participant) Regulation Act. 6 2 2
c. Narrate specific SEBI guidelines touching upon issue management. 8 3 1
2. a. Define reverse Mortgage. 2 1 4
b. Distinguish Between commercial banking and merchant banking. 6 2 1
c. Discuss the guidelines for merchant bankers issued by SEBI. 8 3 1
3. a. What is housing finance? 2 1 4
b. Explain the services offered by a depository. 6 2 2
c. Explain the code of conduct for merchant bankers as per SEBI Act. 8 2 1
4. a. What is dematerialization? List its advantages. 2 1 2
b. Write a note on of NHB and LICHFL. 6 3 4
c. Write a note on regulation of Capital Market. 8 3 1
5. a. Write a note on NSDL. 2 3 4
b. Define a Depositary system & explain the advantages of its system. 6 2 4
c. Explain the procedure of housing finance 8 2 4
6. ABC Co. Pvt. Ltd. has been in the business of furniture manufacturing for the past 8 years and has been
growing steadily since 3 years with at least a return of 12% ROI on an average. The company wants to
expand further and become a public limited company by investing further 120 crores for expansion. The
CEO is contemplating on an IPO to raise about half of the requirement and the other half through issue of
6 lakh 8% debentures of Rs.1000 each at par.
a. Advice the CEO regarding the decision taken by him, as per the
regulations of SEBI. 2 3 1
b. Highlight the Pre & Post issue process of public issue of shares. 6 3 1
Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – Second Assignment-(2019-21 Batch)
18MBAFM301–Banking and Financial Services
Submission Deadline: 12th November, 2020
Course Outcomes:
1. Understand the functioning of Investment banking 2. Be aware of operation connected with depositories and custodians 3. Know how financial services like factoring, venture capital, leasing and hire purchase are provided in
the financial system.
4. Understand the working of Housing finance and non-banking finance companies. 5. Identify the developments happening in micro finance, credit rating and securitization system.
Note: Answer the following Questions:
*Weightage CL* CO*
1. a. What is venture capital? 2 1 3
b. Distinguish between operating lease and financial lease. 6 2 3
c. Discuss microfinance delivery mechanisms in detail. 8 3 5
2. a. What is meant by leveraged lease? 2 1 3
b. Discuss the features of venture capital. 6 3 3
c. Explain the types of leases. 8 2 3
3. a. What is Pass Through Certificate? 2 1 5
b. Compare leasing and Hire purchasing. 6 2 3
c. What is securitization? Explain the process in detail. 8 1 5
4. a. What is credit rating? 2 1 5
b. Discuss the process of credit rating. 6 3 5
c. Explain the mechanism of international factoring 8 2 5
5. a. Mention the players involved in securitization of debts. 2 1 5
b. Discuss the mechanism of factoring. 6 3 3
c. Distinguish between factoring and forfeiting. 8 2 3
6. XYZ Builders Ltd. need to acquire the use of a crane for their construction business, and are considering
buying or leasing the crane. The crane costs Rs 1,000,000 and is subject to the straight line method of
depreciation to a zero salvage value at the end of 5 years. In contrast, the lease rent is Rs. 220,000 per
year to be paid in advance each year for 5 years. XYZ Builders Ltd can raise the debt at 14 percent
payable in equal installments, each installment due at the beginning of the year. The company is in the
50% tax bracket.
a. Should it lease or buy the crane. (Show all the calculations / workings
legibly) 8 3 3
Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment- (2019-21 Batch)
18MBAFM302–Subject name: Investment Management
Submission Dead line: 24/09/2020
Course Outcomes:
1. Understand the process of investments.
2. Get an insight into functioning of stock markets in India and abroad.
3. Have insight into the relationship of the risk and return.
4. Have familiarity of the fundamental and technical analysis.
5. Learn the Theories of Portfolio management and also the tools and techniques for efficient portfolio
management Note: Answer any the following Questions
Q.
No Questions
*Weight
age
C
L
C
O
1 a What do you mean by Investment? 3 1 1
b What are the various investment attributes? 7 1 1
c Discuss the investment process in detail. 10 3 1
2 A Differentiate between financial and economic investment. 3 1 1
B
The returns of two assets under 4 possible states of nature are given below:
Probability R1 R2
0.1 3% 4%
0.3 18% 4%
0.5 12% 16%
0.1 210% 222%
a. What is the standard deviation of the return of R1 and R2? b. What is the covariance between the returns on R1 and R2? c. What is the co-efficient of correlation between the return on returns on R1 and R2?
7 3 3
C
You have been given the following information:
Year Return (X) Return on (Y)
2000 0.2 0.1
2001 0.3 0.2
2002 0.4 0.3
2003 0.4 0.5
2004 0.6 0.5
a. What is the beta value? b. What is the alpha value? c. What is the coefficient of correlation? d. What is the coefficient of determination?
10 3 3
3 A Define securities market. 3 2 2
B Differentiate between Investment and speculation. 7 2 2
C Discuss the various participants in security market. 10 2 2
4 A Discuss the concept of risk and return. 3 1 3
B
A portfolio consists of 5 securities, A, B, C, D & E. The returns of these securities are as
follows; 17%, 18%, 23%, 15% and 14% respectively. The respective SD are 5%, 7%, 9%,
4% and 6%. The securities A, B, C, D and E are invested in proportion of 12%, 18%, 16%,
25%, 20%. The coefficients of correlation between securities are as follows:
A-B=0.8 B-C=0.65 C-D=0.65 D-E=0.75
A-C=0.6 B-D=0.5 C-E= 0.55
A-D= 0.7 B-E=0.7
A-E= 0.75
7 2 3
-
Calculate the risk and return of portfolio.
C Discuss the trading and settlement procedure adopted by exchanges. 10 2 2
5 A State the methods of Index calculation. 4 2 2
B
The returns on securities A and B under 5 possible situations are given below. Compute co-
variance between the returns of security A & B.
Situation Probability Return A Return B
1 0.1 -10% 5%
2 0.3 15% 12%
3 0.3 18% 19%
4 0.2 22% 15%
5 0.1 27% 12%
8 3 3
C
Given below are the financial data relating to two scrips in the pharmaceutical industry with a
paid up value of Rs. 10/- per share.
Year 2000 2001 2002 2003 2004
Particulars A B A B A B A B A B
Face value 10 10 10 10 10 10 10 10 10 10
Book value 15.12 26.29 17.60 28.99 19.98 36.73 23.26 41.05 25.04 47.18
EPS 2.78 2.26 5.48 2.96 5.87 8.97 8.06 6.90 6.28 9.13
DPS 2.40 1.00 3.00 2.00 3.50 3.00 4.00 4.00 1.50 3.00
a. Based on the data presented calculate(i) Standard deviation of scrip A (ii) Standard deviation of scrip B (iii)coefficient of variation of scrip A (iv) coefficient of variation
of scrip B
b. Identify the scrip to be selected giving reasons.
8 3 3
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
III Semester – Second Assignment- (2019-21 Batch)
18MBAFM302–Subject name: Investment Management
Submission Date: 20/11/2020
Course Outcomes:
1. Understand the process of investments.
2. Get an insight into functioning of stock markets in India and abroad.
3. Have insight into the relationship of the risk and return.
4. Have familiarity of the fundamental and technical analysis.
5. Learn the Theories of Portfolio management and also the tools and techniques for efficient portfolio
management Note: Answer any the following Questions
Q.
No Questions *Weightage CL CO
1 A State the bond characteristics. 3 1 3
B Discuss the changing complexion of Bond market in India. 7 2 3
C State the relation between covariance and correlation. 10 1 3
2 A State the valuation formula for a bond which pays interest semi-annually. 3 1 3
B Briefly describe the different types of corporate bonds. 7 3 3
C Describe the key features of the methodology used for debt ratings. 10 2 3
3 A
A Rs 100 par value bond bearing a coupon rate of 12 percent will mature after five
years. What is the value of the bond, if the discount rate is 15 percent? 3 3 3
B
The market price of a Rs. 1,000 par value bond carrying a coupon rate of 14
percent and maturity after five years is Rs. 1050. What is the yield to maturity on
this bond? What is the approximate YTM? What will be the realized yield to
maturity if the reinvestment rate is 12 percent?
7 3 3
C Discuss the following theories: expectations theory, liquidity preference theory,
and preferred habitat theory. 10 2 4
4 A What is efficient portfolio? 3 1 5
B
The stocks of LG limited perform relatively well compared to other stocks during
recessionary periods. The stock of Samsung ltd., on the other hand does well
during growth periods. Both the stocks are currently selling for Rs. 100/share. The
financial analyst’s assessments of the rupee return (dividend plus price) of these
stocks for the next years are as follows:
Economic Condition
High Growth Low growth Stagnation Recession
Probability 0.3 0.4 0.2 0.1
Return (LG) 100 110 120 140
Return (Samsung) 150 130 90 60
7 3 5
C
The following table gives an analyst’s expected return on two stocks for particular
market returns:
Market Return Aggressive stock Defensive stock
6% 2% 8%
20 30 16
a. What are the betas of the two stocks?
b. What is the expected return on each stock if the market return is equally likely
to be 6% or 20%?
c. If the risk free rate is 7% and the market return is equally likely to be 6% or
20%, what is SML?
d. What are the alphas of the two stocks?
10 3 3
-
5 Following information is provided regarding the performance of Blue-chip fund,
Leading sector fund and Contra fund for a period of last 6 months. Risk free rate of
interest is assumed to be 5%, Rank the find with the help of:
a) Sharpe index and discuss
b) Treynor’s index and discuss
c) Discuss between open ended and close end mutual funds
d) Give a brief explanation of NSE nifty
Rp SDp Beta
Blue Chip 25.38 4 0.23
Leading Sector 25.11 9.01 0.56
Contra 25.01 3.55 0.59
20 3 4
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment--(2019-21 Batch)
18MBAFM303--Direct Taxation
Submission Dead line: 30th October 2020
Course Outcomes:
The students will be able to
1. To provide the students the comprehensive understanding of basic concepts of Income Tax.
2. To understand the computation of Total Income under Different heads.
3. To know the deductions available while computing the Income.
4. To Understand Corporate Taxation System in India.
Note: Answer the following Questions
Q. No Questions *Weightage CL CO
1. a. Explain Tax Planning and Tax Management 2 1 CO1
b. Differentiate between capital expenditure and capital receipt. 6 1 CO1
c. What are the income that does not become part of Total Income 8 3 CO2
2.
a. Define Salary and Explain the different Perquisites. 2 1 CO1
b. What are the Taxable allowances? 6 2 CO2
c.
Dr. Satish is medical practitioner. He gives you the following summary
of cash book for the year ended 31/3/2020:
Rs Rs
To Balance 10,000 Rent of clinic 18,000
To Consultant fee 60,000 Purchase of
medicine
38,000
To Visiting fee 45,000 Staff salaries 24,000
To Gifts and presents 8,000 Surgical
equipments
40,000
To Sale of medicine 42,000 Motor car
expenses
8,000
To Dividend from
UTI
6,000 Purchase of
motorcar
1,40,000
To Life Insurance
Maturity
1,00,000 Household
expenses
7,000
To Interest from
National defence
bonds
6,000
Closing balance 2,000
2,77,000 2,77,000
Other information:
I. 50% of the motor car expenses incurred in connection with profession. Car was purchased in December 2019.
II. Household expenses include Rs 6,800 for life insurance premium.
III. Gifts and presents include Rs 3,000 from relations.
8 3 CO2
-
3. a. Define the term Capital Asset with examples. 2 1 CO1
b.
Mr. Nixon an American citizen was appointed as a senior scientific
officer in India on 1st April 2012. On 31st Jan 2015 he went to Uganda
on deputation for a period of 3 years but left his wife and children in
India. On 1st may 2018, he came to India and took with him his family
to Uganda on 30th June 2018. He returned to India and joined his
original job on 15th Feb. 2019. What would be the residential status of
Mr Nixon for the income tax purpose for the A.Y 2020-2021?
6 3 CO3
c. Explain the allowances and Dis-allowances with respect to Income
from Business and Profession. 8 2 CO3
4. a. State the provision relating to Sec 32 of Income Tax Act. 2 2 CO3
b.
After serving for 33 years and 9 months in Bharath chemicals ltd. Mr.
X who is covered under the payment of Gratuity Act retires from
service on 30th November 2019. The employee gets a Gratuity of
Rs 9, 00,000. His monthly Basic Salary is Rs 30,000, DA Rs 9000 pm
and HRA Rs 4500/-.You are required to calculate the taxable Gratuity
for the AY 2020-2021.
6 3 CO3
c.
1. Smt Kumudha is drawing a monthly salary of Rs 10,000/- and entertainment allowance of Rs 1750pm from a ltd company. She
is also getting conveyance allowance of Rs 1200pm. Bonus equal
to 2 months salary and Commission equal to one month pay.
During the PY she paid Rs 2000 as employment tax. She is
provided with a rent free furnished house by the company at
Jaipur. The company is paying Rs 60,000 p.a as Rent for this
house and Rs 9000 pa for furniture and fittings. The electric and
water charges amounting to Rs 18,000/- are also borne by the
company in respect of this house. She is also provided with lunch
by the company during the working hours at work place. The cost
of meals Rs 80/- per meal for 3000 days. During the PY the
company recovered Rs 20/- per meal from her. From the above
information calculate the taxable Salary of Smt Kumudha for AY
2020-2021.
8 3 CO2
5. a. Explain the Residential Status of the Individual as per IT Act. 2 1 CO1
-
b.
X owns the following assets on April, 1 2019:
Assets Written down
value on April 1,
2019 {Rs}
Rate of
depreciation
Furniture 20,170 10%
Building 9,00,500 10%
Plant and
Machinery
2,10,000 20%
Plant and
Machinery
64,00,000 15%
Plant and
Machinery
2,05,000 40%
During the PY 2019-2020, the following assets are purchased by
X:
Determine the amount of deprecation for the AY 2020-2021
.
Date of
purchase
Date when
the assets is
put to use
Asset Cost Rs. Rate of
depreciation
(%)
October 1,
2019
October 9,
2019
Trade mark 15,000 25
June 20,
2019
June 22,
2019
Plant
(Second-
hand)
1,90,000 40
November
30, 2019
December
1, 2019
Foreign made
car
1,40,000 15
December
6, 2019
December
10, 2019
Books for
professional
use
2,700 100
6 3 CO2
c.
Mr. Om Prakash was a manager in a company. He retired from service
on 30/11/2019 after completing 25 years of service. From 01/08/2019
his pay scale was Rs 18,000-700-24300 and he was getting DA of Rs
1800 pm which was treated as Salary for the purpose of retirement
benefits. He had 7 months earned leave to his credit. On the basis of 30
days per year which was accrued, He was paid Rs 1, 32,300 as Salary
and Rs 12,600 as DA. Compute the taxable earned leave for the AY
2020-2021.
8 3 CO2
6 a.
Explain the computation of Taxable House Property and Define
Sec(24) in detail.
4 2 CO2
b.
2. The following is the P&L account of Mr. X for the year ended on 31/3/2020. Compute his taxable income from business for that
year:
Rs Rs
Opening stock 15,000 Sales 1,80,000
Purchases 40,000 Closing stock 20,000
Wages 20.000 Gift from father 10,000
Rent 46,000 Sale of car 17,000
Repairs of car 3,000 Income tax
refund
3,000
4 3 CO3
-
Medical expenses 3,000
General expenses 10,000
Depreciation of car 4,000
Profit for the year 89,000
2,30,000 2,30,000
Following further information is given:
a) Mr. X carries on his business from a rented premises half of which is used as his residence.
b) Mr. X bought a car during the year for Rs 20,000. He charged 20% depreciation on the value of the car. The car was sold
during the year for Rs17,000. The use of the car was 3/4th for
the business and 1/4th for personal use.
c) Medical expenses were incurred during the sickness of Mr. X for his treatment.
d) Wages include Rs 250 per month on account of Mr. X’s driver for 10 months.
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – Second Assignment--(2019-21 Batch)
18MBAFM303--Direct Taxation
Submission Dead line: 30th November 2020
Course Outcomes:
The students will be able to
1. To provide the students the comprehensive understanding of basic concepts of Income Tax.
2. To understand the computation of Total Income under Different heads.
3. To know the deductions available while computing the Income.
4. To Understand Corporate Taxation System in India.
Note: Answer the following Questions
Q. No Questions
*Weightage CL CO
1. a.
What are the conditions allowing for the deductions in Interest on
borrowed Capital u/s 24. 2 2 CO3
b.
Shri Anil Bhushan Gupta, working in Western India Limited, Mumbai,
has furnished the following details of his income for the year ended
March 31, 2020:
a) Salary Rs. 12,000 p.m. b) Bonus equal to Six months’ of salary. c) Transport Allowance (for coming to office & going back to his
residence) at Rs.650 p.m.
d) Entertainment Allowance @ Rs.500 p.m. e) Received House Rent Allowance of Rs.3,000 p.m from the
employer. But he paid a rent of Rs. 4,000 p.m.
f) Personal medical bills of Rs.10,000 were reimbursed by the employer. His treatment has been done in a private nursing home
not belonging to the employer.
g) His contribution to the company’s Recognised Provident Fund is Rs.18,000 and the employer contributes an equal amount. The
interest credited to the Provident Fund Account 9.5% p.a Rs.
12,000.
h) Interest on Government securities Rs.3,000. i) Income from units of Mutual Fund Rs.5,500 (Gross) j) Interest on Post office savings bank Rs.6,500 k) Donation paid to Prime Minister's Drought Relief Fund Rs.2,500
by cheque.
l) Donation paid to the Government for the promotion of family planning Rs.2,000.
m) Life Insurance Premium paid during the year Rs.4,200. Compute the total income of Shri Anil Bhushan Gupta for the A.Y
2020-21 and, also state the amount entitled to deduction u/s 80C.
6 3 CO2
-
c.
The following are the Particulars of Income of Mr Raman during PY
19-20
(i)Income from House Property Rs 1,11,200
(ii) Business income Rs 80,000
(iii) Dividends from co-operative society Rs 500
(iv) Long-term capital gain from
(i) Land Rs 1,27,000 (ii) Listed Shares sold through a recognised stock exchange Rs
45,000
(v) Life Insurance premium on his life on policy of
Rs.3,00,000 is Rs 28,000
(vi) Donation to charitable institution approved u/s 80G Rs
20,000
(vii) Deposit in a scheme notified u/s 80C Rs 10,000
(viii) Deposit in National Saving Scheme, 1992 Rs 12,500
(ix) Interest accrued on National Saving Certificate VIII issue
purchased in May, 2016 Rs 1,840
(x) Interest on saving bank deposit Rs 30,000
Compute his total income and tax payable for assessment year
2020-21.
8 3 CO2
2.
a. List out any seven property incomes that are exempted from tax. 2 1 CO1
b. Explain Intra head and Inter head setoff with Examples 6 2 CO2
c. Explain the tax Provision under Sec 16, Sec 24, sec 32,sec 54 , Sec
80C , Sec 80GGB and 80 U
8 2 CO3
3. a.
Name any six incomes taxed under the head income from Other
Sources. 2 1 CO1
b. Explain the Exemptions sec 54 under capital gains. 6 2 CO3
c.
From the following information compute the tax payable by Z & Co.
keeping in view the provision of MAT u/s 115JB for the A.Y 2020-21:
Profit and loss a/c
Particular Amount Particular Amount
Exp. Related to
export sales
Exp. Related to
other sales
Security
transaction tax
paid relating to
LTCG
Depreciation
Proposed
dividend
Income-tax
Net profit
7,20,000
16,00,000
5,000
1,50,000
2,50,000
1,00,000
4,00,000
Export sales
u/s 10A
Other sales
LTCG
[exempt u/s
10 (38)]
Interest on
Govt,.
securities
10,00,000
20,00,000
2,00,000
25,000
32,25,000 32,25,000
The company revalued its assets from Rs.3,00,000 to Rs.6,00,000 and provided depreciation on Rs. 6,00,000. The
depreciation allowable under the I.T Act is Rs.80,000.
B/F loss as per book of account Rs. 2,00,000.
8 3 CO4
-
B/F depreciation as per books of account Rs. 50,000.
B/F unabsorbed depreciation Rs. 1,00,000.
The company received export turnover u/s 10A Rs. 10,00,000 in India in convertible foreign within prescribed
time.
4. a. State the provision relating to Sec 80 E of income Tax Act. 2 1 CO3
b. Explain briefly the Provision u/s 80. 6 2 CO3
c. How to compute Taxable Income of the Company. Explain in detail. 8 2 CO4
5. a. Who is a specified employee. 2 1 CO1
b. What are the Income taxed under the Income from other Sources. 6 2 CO2
c.
Hari Kiran, a Chief Executive appointed on contract period of two year
by the company, furnishes the following particular of his income for
the financial year ending 31st March, 2020:
Compute his total income for the A.Y 2020-21. Rs
a}Basic pay and Dearness Allowance
…………………….4,80,000
b}Other allowances:
Education allowance for 2 children of the assessee…………4,200.
HRA………………………………………………………… 12,000.
Servant Allowance……………………………………………. 1,500
Gas, Electricity, Water Supply……………………………….. 1,500
Conveyance Allowance for private purpose………………… 6,000.
A. He resides in his own house, the annual letting value of which is Rs.18,000. The Municipal Tax thereon Rs.3,000 p.a.
B. Interest Income: Public Provident Fund Rs.1,000 National Saving Certificate VIII Issue (Accrued)
Rs.750.
On Fixed Deposit with Banks Rs.11,000 (Gross). D. He has invested the following amount out of his income:
a) deposited into Public Provident Fund (PPF) Rs.5300 b) Insurance premium paid on the life of:
Dependent son 2,000 Wife 2,000 Rs. 4,000
c) Deposit in National Saving Certificate VIII issue Rs. 5,000
3 CO2
6 a. Define MAT and how to compute Book Profit Under MAT . 4 2 CO4
b.
Mr. Ram had been living in a house which he purchased in 2000-2001
for Rs. 2,00,000. The house was acquired by the Government in July,
2019 and compensation of Rs.18, 00,000 was paid to him . He
4 3 CO3
-
purchased a residential house in Feb., 2020 at Rs. 4,40,000. The
additional compensation of Rs. 70,000 was given to him in March,
2020. If he sells the new residential house in October, 2020 at
Rs.5,60,000, compute the amount of capital gain , chargeable to tax for
the assessment year 2020-21.
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
III Semester – First Assignment (2019-21 Batch)
18MBAFM304– Advanced Financial Management
Submission Date: 24/09/2020
Course Outcomes:
1. Get an overview of capital structure theories 2. Understand and assess the dividend policy of the firm 3. Realize the importance of management of working capital in an organization. 4. Be aware of the techniques of cash, inventory and receivables management
Note: Answer the following Questions
Weightage * CL CO
1. a. Explain various short term sources to finance working capital. 3 1 1
b.
Assuming no tax and given the earnings before interest and taxes (EBIT),
interest @ 10% & equity capitalization rate (ke) below, calculation the total
market value of each firm.
Firm EBIT Interest Ke(%)
X 200000 20000 12
Y 300000 60000 16
Z 500000 200000 15
W 600000 240000 18
Also determine the weighted average cost of capital for each firm.
7 1 1
c. What are demerits of excess and inadequate investment in current assets? Show
how you will determine level of current assets with the help of graph. 10 3 1
2.
a.
The operating income is Rs 50000, cost of debt 10% and outstanding debt
200000. If the equity capitalization rate is 12.5%. What would be the total value
of the firm and the overall capitalization rate?
3 1 1
b. A debt financing is advisable to certain level and after that it is not, though the
cost of debt is cheaper to equity. Do you agree? Explain. 7 1 2
c.
The following information is available for two companies.
Particulars A ltd B ltd
Fixed assets 200000 800000
Current assets 800000 200000
Total assets 1000000 1000000
EBIT 100000 100000
You are required to compare the sensitivity of earnings of the two companies for
25% change in the level of current assets by calculating working capital
leverage.
10 2 2
3.
a.
Following information relating to MNC ltd as on 31st Dec 2007, CA=25000,
FA=75000. You are required to compute working capital leverage.
a) CA as on 31st Dec 2017 Rs 50000 b) CA as on 31st Dec 2017 Rs 15000.
3 1 1
b.
. In considering the most desirable capital structure of a company, the following
estimates of the cost of debt and equity (after tax) have been made at various
levels of debt-equity mix:
Debt as % of total capital
employed
Cost of debt (%) Cost of equity (%) 7 2 2
-
0 5.0 12.0
10 5.0 12.0
20 5.0 12.5
30 5.5 13.0
40 6.0 14.0
50 6.5 16.0
60 7.0 20.0
You are required to determine the optimal debt-equity mix for the company by
calculating the composite cost of capital.
c. State the sources of long term and short term working capital finance. 10 2 2
4. a. What do you mean by dividend policy? 3 1 2
b.
. Following information is available in respect of the firm:
Capitalization rate: 10%
Earnings per share EPS: 10
Assume rate of return on investment: 15%, 8% & 10%
Show the effect of dividend policy on the market price of shares using Walter
Model (dividend payout ratio can be 0%, 25%, 50%, 75%, and 100%.
In this model, assume cost of equity = Cost of capital
7 1 2
c. Following is the information relating to AB ltd, PQ ltd and XY ltd.
Particulars Rs in million
AB PQ XY
Current assets CA 350 400 480
Net fixed assets FA 200 250 120
Total assets TA 550 650 600
EBIT 800 900 1000
You are required to compute the working capital leverage (WCL)
30% decrease in the level of current assets of AB ltd
20% decrease in the level of CA of PQ ltd
10% decrease in the level of CA of XY ltd
10 3 2
5. The following information is available in respect of the rate of return on investment:
12%, the capitalization rate and earnings per share: 20 of H ltd.
Determine the value of the its share as per Gordon’s Model of dividend relevance,
Assuming the following:
Sl.No D/P ratio(1-b) Retention ratio(b) Ke(%)
1 10 90 20
2 20 80 19
3 30 70 18
4 40 60 17
5 50 50 16
6 40 60 15
7 30 70 14
20 3 1
Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
III Semester – Second Assignment (2019-21 Batch)
18MBAFM304– Advanced Financial Management
Submission Date: 20/11/2020
Course Outcomes:
1. Get an overview of capital structure theories 2. Understand and assess the dividend policy of the firm 3. Realize the importance of management of working capital in an organization. 4. Be aware of the techniques of cash, inventory and receivables management
Note: Answer the following Questions
Weightage * CL CO
1. a. Define cash management. 3 1 1
b.
The management popular trader anticipates 1500000 in cash outlays during the next year
to convert marketable securities to cash. The marketable security currently earns 8%
annual return. The fixed cost for transaction amount 30. Find the total cost of managing
cash according to Baumols model.
7 3 3
c.
The ABC limited requires Rs 30lakh in cash to meet its transaction need during the next
3 months cash planning period. It holds marketable securities of an equal amount. The
annual yield on these marketable securities is 20% the conversion of these securities into
cash entails a fixed cost of Rs 3000 per transaction. Using Baumol model compute the
amount of marketable securities converted into cash per order. Assuming ABC limited
can sell its marketable securities in any of the five lot sizes Rs 150000, 300000, 600000,
750000&1500000. Prepare a table indicating the economic lot size using numerical
analysis.
10 3 3
2. a. Define Inventory Management. 3 1 4
b.
B ltd provides the following information about its liquidity:
Annual yield available on marketable securities is 12% on a daily basis. The yield ‘I’ using a 360 day in a year.250
The fixed cost affecting marketable securities; transaction is 1600.
Standard deviation = 5000
The management of B would like to maintain a minimum cash balance of 50000. Calculate RP and UCL.
7 3 3
c. Discuss and define the different cash management models. 10 2 4
3. a. What do you mean by lock box system? 3 1 4
b.
Solomon industries feel a lock-box system can shorten its accounts receivable collection
period by 3 days. Credit sales are estimated at Rs 365 lakh per year, billed on a
continuous basis. The firms opportunity cost of fund is 15%. The cost of lock box
system is Rs 50000.
Will you answer Solomon to go for lock-box system?
Will you answer be different if account receivables collection is reduced by 5 days?
7 3 4
c.
The current sales of pioneer company are Rs 100 million. The company classifies its
customers into 4 credit categories. Credit rating diminishes as one goes from category
one to four. It presently extends unlimited credit to customers in categories one and two.
Limited credit to category 3 and no credit to category 4. As a result of the credit policy
the company is foregoing sales to the extent of Rs 10 million to customers in category 3
and Rs 10 million to category 4. The firm is considering the adoption of more liberal
credit policy under which customers in category 3 would be extended unlimited credit
and category 4 with limited credit. Such relaxation would increase sales by Rs 15 million
on which the bad debt losses would be 10%. The contribution margin ratio for the firm is
20% and average collection period is 40 days past tax cost of fund is 10% and tax rate is
40%.What is the effect of relaxing credit policy on residual income?
10 3 3
4. a. What do you mean by EOQ? 3 1 3
b. 1. Economic enterprises require 90000 units of certain items annually. The cost
per unit is Rs. 3. The cost per purchase order is Rs. 300 and the inventory 7 3 4
-
carrying cost is Rs. 6 per unit per year.
a) What is the EOQ? b) What should the firm do if the supplier offers discounts at detailed below?
Order quantity Discount
4500-5999 2%
6000- above 3%
c. 1. Zeenath corporation currently provides 30 days of credit to its customers its present
level of sales is 50 million. The cost of capital is 10% and the ratio of variable cost
to sales is 0.85, it is considering extending its current period to 60 days. Such an
extension is likely to push sales up by Rs 5 million. The bad debt proportion on
additional sales would be 8%. The tax rate is 40% what is the effect of lengthening
the credit period on residual income.
10 3 4
5. On the basis of the following information. Prepare a cash budget for Khanna manufacturing
company for the first six month of 2008.
Prices and costs are assumed to remain constant.
Credit sales are 75% of the total sales.
The 60% of credit sales are collected after one month, 30% after two months and 10% after 3 months.
Actual and forecasted sales are as follows:
Actual Amount Forecast Amount
Oct.2007 120000 Jan.2018 60000
Nov.2007 140000 Feb.2018 80000
Dec.2007 160000 March. 2018 80000
April.2018 120000
May.2018 100000
June.2018 80000
July.2018 120000
The company expects a profit margin of 20%.
Anticipated sales of each month are purchased and paid in the preceding month. The anticipated operating expenses are as below:
Particulars Amount Particulars Amount
Jan 12000 April 20000
Feb 16000 May 16000
March 20000 June 14000
Interest on 12% debentures 100000 is to be paid in each quarter.
An advance tax of 20000 is due in April.
A purchase of equipment of 12000 is to be made in June.
The company has a cash balance of 40000 on 31st December 2017, which is the minimum balance to be maintained funds can be borrowed in multiples of 2000 on a
monthly basis at 18% per annum.
Interest is payable on the first of the month after borrowing.
Rent is 800 per month.
20 3 4
Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
FIRST ASSIGNMENT Due date: 24th October 2020
CO1 Understand various cost methods and techniques with their features, merits and demerits).
CO2 Demonstrate the application of cost sheet, marginal costing, budgetary control techniques, Activity based costing etc. with numerical problems .
CO3 Analyze the results after applying various costing methods and techniques.
CO4 Critically evaluate all traditional and non-traditional costing methods such as absorption costing, marginal costing and activity based costing.
1 Mks. CO
1a Write a note on Cost Accounting and Cost Management 3 1
b The following data has been extracted from the books of M/s.XYZ Ltd. for the year 2018.
Opening Stock: (Rs.000) Closing Stock: (Rs.000)
Raw materials 25,000 Raw materials 40,000
Work-in-progress 10,000 Work-in-progress 6,000
Finished goods 9,000 Finished goods 7,800
Other information
Purchases: Raw materials Carriage inwards
85,000 5,000
Office furniture Salary-Office Salary-Salesmen
100 2,500 2,000
Wages-Direct
Wages-Indirect
Other direct charges
75,000 10,000
15,000
Other factory expenses
Other office expenses
Advertisement
5700
900
2,000
Rent & rates – Factory
Rent &rates-Office
5,000 500
Sales
Carriage outward
250,000
1,000
Depreciation – Plant
Travelling expenses (Salesman)
Managing Director’s remuneration
1,500
1,100
12,000
Other selling expenses
Advance income tax paid
1,000
15,000
The MD’s remuneration is to be allocated as Rs 4,000,000 to the factory; Rs 2,000,000 to
the office and Rs 6,000,000 to the selling department. Prepare ‘cost sheet’ showing prime
cost, works cost, cost of production, cost of sales and net profit May/June 2010
7 1
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
C 8.Following information has been obtained from the records of ABC Co., for the period
December 2018. Prepare cost sheet.
Opening stock Rs. Closing stock Rs.
Raw materials 60,000 Raw materials 50,000
Work in progress 12,000 Work in progress 15,000
Stock of finished goods 90,000 Stock of finished goods 110,000
Other information
Purchase of raw material 480,000 Wages 240,000
Factory overheads 100,000 Administration overheads 50,000
Selling &distribution OH 25,000 Sales 1,000,000
10 1
2a Write a detailed note on classification of overheads 03 1
b M2-01 DEC09/Jan 10---08MBA32—1.C (simple direct method-adapted)
The following particulars have been extracted from Mayur Engineering works for the year ending 31.3.2018
Particulars Production department Service department
A B C X Y
Direct wages Rs 30,000 45,000 60,000 15,000 30,000
Direct materials Rs 15,000 30,000 30,000 22,500 22,500
Staff number 1,500 2,250 2,250 750 750
Electricity kwh 6,000 4,500 3,000 1,500 1,500
Asset value Rs 60,000 40,000 30,000 10,000 10,000
Light points 10 16 4 6 4
Area sq. mts 150 250 50 50 50
The expenses for the period were as follows
Power = Rs 1,100;; Stores overhead = Rs 800;; Depreciation = Rs 30,000
General overheads = Rs 12,000; Lighting = Rs 200; Welfare to staff Rs3,000
Repairs Rs 6,000; Rent and taxes Rs 550
Apportion the expenses of service department X in the ratio of 5:3:2 and that of Y in
proportion to direct wages to department A, B and C respectively.
07 1
c M2 04. Jan/Feb 2002, (adapted) From the following information work out the production hour rate of recovery of overheads in departments P1, P2 & P3:
Particulars Total Production Departments Service Departments
Rs. P1 Rs. P2 Rs. P3 Rs. S1 Rs. S2 Rs.
Rent 1,000 200 400 150 150 100
Electricity 200 50 80 30 20 20
Fire Insurance 400 80 160 60 60 40
Plant depreciation 4,000 1,000 1,500 1,000 300 200
Transport 400 50 50 50 100 150
Estimated working hours 1,000 2,500 1,800
10 1
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
Expenses of Services Department S1 and S2 are apportioned as under : P1 P2 P3 S1 S2
S1 30% 40% 20% --- 10%
S2 10% 20% 50% 20% ---
3a Write a brief note on allocation and apportionment of Overhead 03 1
b Write a detailed note on BEP-Application-advantages and disadvantages 07 1
c
M3 02 MBA 401 NS—June/ July 2004—(adapted)
From the following data calculate
1. BEP expressed in amount of sales in Rs. (BEP Rs.)
2. No of units that must be sold to earn a profit of Rs. 60,000/yr
3. How many units are to be sold to earn a net income of 10% of sales?
a. Sales price Rs 20/unit b. Variable mfg. costs Rs 11/unit c. Variable selling costs Rs 3/unit
d. Fixed factory overheads 540,000/yr e. Fixed selling costs 252,000/year f. SP 20/unit
10 2
4a Write a note on applications of marginal costing and how does it differ from Absorption costing.
03 1
4b Write a detailed note on Segmental reporting. 07 4
4c M3 06MBA32-Dec06/Jan07—5.C (adapted)
Y Ltd has just been incorporated and plans to produce a product that will sell for Rs 10/unit.
Mkt survey shows that the demand will be around 10,000 units per year.
The company has a choice of buying one of the two machines each of which has a capacity
of 10,000 units per year. M/c ‘A’ would have a fixed cost of Rs 30,000 per annum and would
yield profit of Rs 30,000 on sale of 10,000 units. M/c ‘B’ would have a fixed cost of Rs 18,000
per annum and would yield profit of Rs 22,000 per annum on sale of 10,000 units. Variable
costs behave linearly for both machines. Calculate
i) Break even sales for each machine
ii) Sales level where both machines are equally profitable
iii) Range of sales where one m/c is more profitable than the other
10 2
5 M3 10 2002 scheme-July 2007-08. Case Study (adapted) Bangalore International Products Ltd produces and sells 3 types of products A, B and C. A newly appointed manager Mr. Raj is of the opinion that one of the three products is not doing well and therefore discontinuing the same shall improve the profit of the organization. The company after going through the recommendations of Mr. Raj approached Ms. Sahana for advice. She is a qualified management accountant and has around 20 yrs of experience as consultant. She was of the opinion that discontinuing the product is not only non-profitable but also decreases the overall profits of the organization. Both of them relied upon the following information
10 2
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
Product SP/unit Rs Direct material/unit Rs
Direct wages/unit
Dept A Rs Dept B Rs Dept C Rs
P 300 60 20 15 10
Q 275 30 20 20 10
R 305 70 12 10 20
The absorption rates of overheads on direct wages are
Dept A Dept B Dept C
Variable overhead 150% 120% 200%
Fixed overheads 200% 240% 150%
1. Do you think Raj is justified in forming such a opinion ? How? 2. How prudent is the opinion of Sahana 3. If you were to be the Managing Director of the company, what will be your decision and why? 4. Why do you think that there was difference in their opinion? Note: Calculations must form part of your answers
- - - X - - -
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
SECOND ASSIGNMENT Due date: 14th November 2020
CO1 Understand various cost methods and techniques with their features, merits and demerits).
CO2 Demonstrate the application of cost sheet, marginal costing, budgetary control techniques, Activity based costing etc. with numerical problems .
CO3 Analyze the results after applying various costing methods and techniques.
CO4 Critically evaluate all traditional and non-traditional costing methods such as absorption costing, marginal costing and activity based costing.
1 Description Mks. CO
1a Write a brief note on Budgetary control 3 3
b M4-15-PRODUCTION AND SALES BUDGET A manufacturing company submits the following figures for the 1st quarter of 2018
Product X Product Y Product Z
Sales in units Jan Feb March
25,000 20,000 30,000
30,000 25,000 35,000
10,000 10,000 10,000
Selling price/unit Rs 10 Rs 20 Rs 40
Stock position 1st Jan2018 % of Jan 2018 sales
50%
50%
50%
Stock position 31st March, 2018 20,000 25,000 5,000
Stock position-end Jan & Feb % of subsequent month’s sales
50% 50% 50%
You are required to prepare the sales and production budget for the 1st quarter of 2019 with workings
07
c M5-01 :ABC Manufacturing Co has been using a cost system that allocates all factory overhead costs to products based on 350% of direct labor cost. The company has just decided to use Activity Based Cost system (ABC) that traces indirect costs to products based on consumption of major activities as indicated below
Activity Annual cost driver quantity
Cost Rs Product cost driver consumption
Labour Rs 3,00,000 30,000 Rs 10,000
Machining 20,000 hours 500,000 800 hours
Setup 10,000 hours 100,000 100 hours
Production order 2,000 orders 200,000 12 orders
Material handling 1000 requisitions 20,000 5 requisitions
Parts administration 12,000 parts 480,000 18 parts
Required Compare the total annual costs of the product using both the traditional volume-based and new ABC system
10 CO3
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
Solution
Cost system Pool rate Cost driver consumption
Cost assignment
Traditional cost system 35% Rs 10,000 Rs 35,000
ABC system
1. Labour 10% Rs 10,000 Rs 1,000
2. Machining Rs 25 per hour 800 hours 20,000
3. Setup Rs 10 per hour 100 hours 1,000
4. Production order Rs 100 per order 12 orders 1,200
5. Material handling Rs 20 per requisitions 5 requisitions 100
6. Parts administration Rs 40 per part 18 parts 720
Rs 24,020
2a Write a brief note Cost Audit 03 4
b Write a detailed note on Activity based costing 07 2
c M4-04 05MBA32 5C A company working at 50% capacity has incurred the following expenditure during the year
2005.
Rs.
Fixed expenses :
Rent and taxes
Depreciation
Salaries and other
105,000
122,000
146,000
Semi-variable expenses :
Maintenance and repairs
Indirect labour
Salesmen’s salary
Sundry expenses
30,000
124,000
36,000
32,000
Variable expenses :
Material
Labour
Sales commission
300,000
350,000
40,000
Sales at 50% capacity 1,200,000
It is further stated that semi-variable expenses remain constant between 35% to 65%
capacity. Then increase by 10% of the above figures between 65% to 80% capacity and by
15% above 80% up to 100% capacity. Fixed expenses remain constant for all levels.
Prepare a flexible budget and find out the profit/loss when the company works at 50%,
60%, 80% and 100% capacity. (10 Marks)
10 3
3a Write a brief report on purposes of Segmental reporting 03 4
b Write a detailed note on cost reduction and cost control 07 4
c Write a detailed note on steps in ABC costing, its advantages and disadvantages 10
4a Write a brief note on Management Audit 02 4
4b Write a detailed note on target costing 06 4
4c Hind General Corporation produces only one product which has the following cost.
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
Variable manufacturing costs Rs. 4 per unit
Fixed manufacturing costs Rs. 200,000 per year
The normal capacity is set at 200,000 units. There are no work-in-progress inventories in
2001, the company produced 200,000 units and sold 90% of them at a price of Rs. 7 per
unit. In 2002, the company produced 210,000 units and sold 215,000 units at the same
price. You are required to prepare income statements for 2001 and 2002 based on
absorption costing and marginal costing. June/July 2009
5 M4-16- 05MBA32-JULY 2007(adapted) XYZ Ltd. Manufactures a product P, uses a standard costing system. For getting 1000kg of finished
products P, the following are the inputs:
Material Qty in kg Rate per kg Total cost (Rs.)
A
B
C
800
200
200
2.50
4.00
1.00
2000
800
200
Normal loss 200 - -
Output 1000 3000
For the month of January 2006 the following information is available: Actual output 200,000kg.
Material Quantity (kg) Rate
A 157,000 2.40
B 38000 4.20
C 36000 1.10
Case Study: 20 marks
Nubo Manufacturing Inc., is engaged in the manufacture of a patented electronic
component. Present sales are direct to retailers. But in recent years there has been a
steady decline in output because of increasing foreign competition. The accounting
records showed decline in profits for past five years. The company considers that a profit
of Rs.80,000 should be achieved. The marketing director after a thorough review passes
on three proposals to you for evaluation and recommendation, together with profit and
loss account, for the year ending 31st Dec. 2005.
Nubo Inc., profit & loss a/c for the year ending 31-12-2005. .
Sales revenue (100,000 units @ Rs.10) 1,000,000
Factory cost of goods sold:
Direct materials 100,000
Direct labour 350,000
Variable factory overheads 60,000
Fixed factory overheads 220,000 730,000
Administration overheads 140,000
Selling & distribution overhead:
Sales commission (2% of sales) 20,000
10 CO3
-
DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82
THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305
Delivery costs (variable) 50,000
Fixed costs 40,000 980,000
Profit 20,000
The three proposals recommended are as follows:
i) 1) To proceed on the basis of analysis of market research indicating that the demand for
the product is such that a 10% reduction in selling price would increase demand by 40%.
2) That a price reduction of 10% together with an intensive advertising campaign
costing Rs. 30,000 may increase sales to 160,000 units.
3) A mail order company intends to purchase 50,000 units and it would transport the
product from Nubo Ltd., to its own warehouse and no sales commission would be
paid on these sales by Nubo Ltd., if negotiated price is acceptable. Nubo Ltd., agrees
to contribute Rs.60,000 per annum towards the fixed cost and also provide an
additional packaging cost of Rs.0.50 per unit.
You are required : a. To calculate the break-even sales based in 2005 accounts.
b. A financial evaluation of proposal (i) and a calculation of the number of units Nubo
Ltd. would required to sell at Rs.9 each to earn a target profit of Rs.80,000.
c. A financial evaluation of proposal (ii).
d. Quote the selling price for proposal (iii) to earn a target profit of Rs.80,000.
May/June 2010
- - - X - - -
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment--(2019-21 Batch)
18MBAFM306- Project Appraisal Planning and Control
Submission Dead line: 30th October 2020
Course Outcomes:
The students will be able to
1. To screen and Assess project Ideas
2. To Plan appraise and Evaluate implementation of Project.
3. To assess financial and social risk concerned with implementation of projects.
4. To Understand various aspect of Project Management
Note: Answer the following Questions
Q. No Questions *Weightage CL CO
1. a. What a firm can do to stimulate the flow of project ideas. 2 2 CO1
b. Explain porter model of Profit potential 6 2 CO1
c. Which Key issues would you examine in Project Preliminary
Screening? 8 3 CO4
2.
a. What are the three components of cash flow 2 1 CO2
b. Explain the level’s of Decision making in Capital Budgeting Process. 6 1 CO1
c. Explain different Steps in Simulation analysis. 8 2 CO2
3. a. What are the sources of Secondary information? 2 1 CO4
b. Describe in Detail the phases of capital Budgeting process. 6 2 CO4
c. Explain briefly the parameters considered in technical analysis for
manufacturing type of a project. 8 3 CO1
4. a.
What are the principles that should be followed while estimating the
cash flow of a project. 2 3 CO2
b. What are the types of Risk? 6 2 CO2
c. Explain the Elementary Investment Strategies in capital Budgeting. 8 3 CO1
5. a. What are the three element of cash flow stream of the project? 2 2 CO2
b. Explain Project Rating Index with Illustration. 6 3 CO1
c. How to estimate project cash flows. 8 2 CO2
6 a. How do you estimate the cost of the project? 4 2 CO2
b. Explain Sensitivity analysis and Scenario Analysis 4 2 CO2
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams8
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – Second Assignment--(2019-21 Batch)
18MBAFM306 --Project Appraisal Planning and Control
Submission Dead line: 30th November 2020
Course Outcomes:
The students will be able to
1. To screen and Assess project Ideas 2. To Plan appraise and Evaluate implementation of Project. 3. To assess financial and social risk concerned with implementation of projects.
4. To Understand various aspect of Project Management
Note: Answer the following Questions
Q. No Questions
*Weightage CL CO
1. a. Explain various methods of Demand forecasting. 2 2 CO2
b. Explain the project Review and Administrative aspects. 6 1 CO4
c. Explain the methods of Ranking in case of multiple projects. 8 3 CO2
2.
a. Explain the rationale for SCBA. 2 2 CO3
b. What do you mean by Environmental, Appraisal of Projects 6 2 CO3
c. What are the types and Dimensions of Projects? 8 3 CO4
3. a. Explain Abandonment Analysis. 2 1 CO3
b. Explain the qualitative factors in Capital Budgeting 6 2 CO2
c. Explain the forms of Project Organization. 8 2 CO4
4. a. Explain the meaning of shadow price. 2 2 CO3
b. Explain the meaning UNIDO approach to SCBA 6 2 CO3
c. Explain Strategic Planning and Financial analysis. 8 3 CO3
5. a. What is Post audit analysis. 2 2 CO4
b. What is agency problem and what is its impact on Project Decisions. 6 3 CO4
c. Explain the human aspect of Project Management. 8 2 CO4
6 a. What are the prerequisite for successful project implementation 4 2 CO4
b. Explain the Environment Impact Assessment and Environment impact
Statement. 4 3 CO3
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment- (2019-21 Batch)
18MBAHR301 – Recruitment and Selection
Submission Dead line: 14th Oct 2020
Course Outcomes:
The students will be able to
1. Gain the insights of various principles and practices of recruitment and selection in an industry
2. Equip students with various selection procedure practiced in industry.
3. Develop students with latest selection tools in the corporate sector.
4. Develop students with various testing of job recruitment and selection
Note: Answer any the following Questions
Q. No Questions *Weightage CL CO
1. a. Define job analysis. 2 1 CO1
b. Explain the purpose of job analysis in the HR department. 6 2 CO1
c. Briefly explain the critical incident technique of job analysis. State its
merits and demerits. 8 2 CO1
2.
a. Differentiate between recruitment and selection. 2 1 CO1
b. Explain the term position analysis questionnaire. How is it used in
recruitment and selection? 6 2 CO1
c. Explain the internal sources of recruitment .state the advantages &
disadvantages in terms of time, cost, quality and suitability. 8 2 CO3
3. a. Differentiate between job description and job specification 2 2 CO1
b. Write a detailed note on full time hiring. 6 2 CO2
c. Explain the various nature of hiring employed in the present day. 8 2 CO2
4. a. Define task analysis inventory. 2 2 CO1
b. Discuss the advantage & disadvantage of internal hiring. 6 2 CO3
c. Explain the various methods of data collection for job analysis. 8 2 CO1
5. a. Define recruitment. 2 1 CO1
b. Explain the task analysis inventory method of job analysis. 6 2 CO1
c. Recruitment is an ongoing process. Comment 8 3 CO3
6. Case Study
Tropical Storm Charley
In August 2004, tropical storm Charley hit North Carolina and the Optima Air Filter Company. Many
employees’ homes were devastated and the firm found that it had to hire almost 3 completely new
crews, one for each of its shifts. The problem was that the “Old-timers” had known their jobs so well
that no one had ever bothered to draw up job descriptions for them. When about 30 new employees
began taking their places, there was general confusion about what they should do and how they should
do it.
The storm quickly became old news to the firm’s out-of state customers- who wanted filters, not
-
excuses. Phil Mann, the firm’s President, was at his wits end. He had about 30 new employees, 10 old-
timers, and his original factory supervisor, Maybelline. He decided to meet with Linda Lowe, a
consultant from the local universities business school. She immediately had the old-timers fill out a job
questionnaire that listed all their tasks, duties & responsibilities. Arguments ensued almost at once-
Both Phil & Maybelline thought the old-timers were exaggerating to make themselves look more
important, and the old-timers instead that the list faithfully reflected their duties. Meanwhile, the
customers clamoured for their filters.
Questions
a.
Should Phil & Linda ignore that old-timers’ protests and write up the job
descriptions as they see fit? Why? Why not? How would you go about
resolving the differences? 4 3 CO1
b. How would you have conducted the job analysis? What should Phil do
now? 4 3 CO1
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester –Second Assignment- (2018-20 Batch)
18MBAHR301 – Recruitment and selection
Submission Dead line: 30th November 2020
Course Outcomes:
The students will be able to
1. Gain the insights of various principles and practices of recruitment and selection in an industry
2. Equip students with various selection procedure practiced in industry.
3. Develop students with latest selection tools in the corporate sector.
4. Develop students with various testing of job recruitment and selection
Note: Answer any the following Questions
Q. No Questions *Weightage CL CO
1. a. What do you mean by employee referral? 2 1 CO3
b. Explain the advantages and disadvantages of external hiring. 6 2 CO3
c. Describe the different types of tests in the recruitment. 8 2 CO5
2.
a. Define external recruitment. 2 1 CO3
b. Describe the contents of appointment letter. 6 2 CO5
c. Describe the sources of external hiring. 8 2 CO3
3. a. Define Applications Blanks. 2 2 CO4
b. Outline the importance of reference checking. 6 2 CO5
c. Explain the steps in the interview process 8 2 CO4
4. a. Define testing 2 2 CO4
b. Describe weighted application blank with advantages and disadvantages. 6 2 CO4
c. Bring out the difference between CV & resume. 8 2 CO4
5. a. Define reference check. 2 1 CO5
b. Write a note on methods of medical examination of a candidate. 6 2 CO5
c. Discuss job advertisement, drafting and size & contents. 8 2 CO4
6 a. Prepare a CV for your desired job for a reputed organization 4 3 CO5
b. Design a recruitment advertisement in a leading newspaper for the position
of senior tax analyst in a MNC. 4 3 CO5
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment- (2019-21 Batch)
18MBAHR302 – HR Analytics
Submission Deadline: 26th Oct 2020
Course Outcomes:
1. To enable the students, understand the importance of analytics in overall HR Management 2. To make the learners remember the various methods of measuring HR & reporting value 3. To enable the students, understand evaluation of HR Analytics, frameworks, models & typical
applications
4. To prepare the students, to analyze various data sources, challenges one can encounter & data cleaning methodology
5. To make the students understand preparation of HR scorecards
Note: Answer any the following Questions
Q. No Questions *Weightage *CL *CO
1.
a. What is HR Analytics? 2 1 CO1
b. What are the challenges in HR Analytics? 6 2 CO1
c. Explain Role of HR Analytics with diagram. 8 2 CO1
2.
a. What is BSC (Balance Scorecard)? 2 1 CO1
b. Explain in detail the benefits of HR Analytics. 6 2 CO2
c. Explain 5stages of HR Maturity for analytics implementation. 8 2 CO2
3.
a. List of approaches to measure HR. 2 2 CO1
b. Explain how to choose skill assessment tool? 6 2 CO2
c. Explain how to create HR Management system? 8 2 CO2
4.
a. Write the benefits of HR Metrics. 2 2 CO2
b. Explain HR Scorecards with example. 6 2 CO1
c. HR Scorecards is different from HR Analytics… Explain 8 2 CO2
5.
a. Difference between strategic HR & Benchmarking 2 1 CO2
b. Explain the 5 steps involved in valuing HR Analytics in an
organization 6 2 CO2
c. Explain the benefits of workforce scorecards. 8 2 CO2
6.
Case Study
Sysco, the $36.8 billion Fortune 100 global food-service company. Sysco is a complex organization
made up of nearly a hundred autonomous operating units and about 51,000 fill time employees
servicing approximately 400,000 customers.
The company began its workforce analysis with three gross measures for each operating unit: work
climate and employee satisfaction, productivity, and retention. It has drilled deeper to understand,
measure, and manage seven other dimensions of the work environment, including frontline supervisor
-
effectiveness, diversity, and quality of life.
Sysco’s analysis revealed that operating units with highly satisfied employees have higher revenues,
lower costs, greater employee retention, and superior customer loyalty. The company can efficiently
identify what actions by management will have the greatest impact on the business. For an example, in
six years it has improved the retention rate for delivery associates --- who provide customer service and
build customer relationship--- from 65% to 85%. Sysco track the group’s satisfaction scores, and when
they dip, it institutes immediate improvements to go them back on track.
By retaining the key talent, Sysco saved nearly $50 million in hiring and training costs for new
associates.
Questions
a. What is the maturity level of this organization? What steps they
would have taken to track these metrics? 4 3 CO2
b.
How do you think the training & development department of the
company leverage these insights to predict future talent development
programs?
4 3 CO2
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – Second Assignment- (2019-21 Batch)
18MBAHR302 – HR Analytics
Submission Deadline: 26th Oct 2020
Course Outcomes:
1. To enable the students, understand the importance of analytics in overall HR Management 2. To make the learners remember the various methods of measuring HR & reporting value 3. To enable the students, understand evaluation of HR Analytics, frameworks, models & typical
applications
4. To prepare the students, to analyze various data sources, challenges one can encounter & data cleaning methodology
5. To make the students understand preparation of HR scorecards
Sl. No. No of
students Creative Assignment Topic Details Marks
Topic 1 2 Global and cultural awareness - As a HR Analyst explain through 7 tasks
and competencies. 5
Topic 2 2 Create a HR Metrics and explain by giving proper examples for each level. 5
Topic 3 2 As a HR Analyst – How do you handle HR Maturity in your organization.
Explain with proper example and diagram. 5
Topic 4 2 In a Hospital Sector how do you measure the performance of group D staff?
Explain with proper example. 5
Topic 5 2
In a manufacturing organization, what are the parameters for measuring the
performance of the workers. Create proper and suitable HR Metrics
accordingly.
5
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment- (2019-21 Batch)
18MBAHR303 – Compensation & Reward System
Submission Deadline: 26th Oct 2020
Course Outcomes:
The students will be able to
1. Gain insights of various conceptual aspects of Compensation and Benefits to achieve organizational goals.
2. Determine the performance-based compensation system for business excellence and solve various cases.
3. Designing the compensation strategies for attraction, motivation and retaining high quality workforce.
4. Understand the Legal & Administrative Issues in global compensation to prepare compensation plan, CTC,
wage survey and calculate various bonus.
Note: Answer any the following Questions
Q. No Questions *Weightage *CL *CO
1. a. What is compensation? 2 1 CO1
b. Explain the types of compensation management with relevant
examples. 6 2 CO1
c. Explain the pay model. 8 2 CO1
2.
a. Differentiate salary and wage with proper example 2 1 CO1
b. Explain Job description & Job specification. 6 2 CO2
c. Explain the common methods of job evaluation. 8 2 CO2
3. a. What is internal equity and external equity? 2 2 CO1
b. State the importance of Job evaluation. 6 2 CO2
c. Write short notes on i) Merrick’s Multiple Piece Rate Plan,
ii) Rowan Premium Bonus Plan 8 2 CO2
4. a. Define Job evaluation. 2 2 CO2
b. Discuss the internal alignment and internal pay structures. 6 2 CO1
c. Write short notes on i) Emerson Efficiency Plan ii) Bedeaux Point
Method 8 2 CO2
5. a. Differentiate between Job analysis & Job evaluation. 2 1 CO2
b. Explain Taylor Differential Piece Rate Method 6 2 CO2
c. Explain any 2 methods of compensation calculation employed. 8 2 CO2
6. Case Study
Salary inequities at Acme Manufacturing.
-
Joe Black was trying to figure out what to do about a problem salary situation he had in his plant. Black
recently took over as president of Acme Manufacturing. The founder and former president, Bill
George, had been president for 35 years. The company was family owned and located in a small
eastern Arkansas town. It had approximately 250 employees and was the largest employer in the
community. Black was the member of the family that owned Acme, but he had never worked for the
company prior to becoming the president. He had an MBA and a law degree, plus five years of
management experience with a large manufacturing organization, where he was senior vice president
for human resources before making his move to Acme.
A short time after joining Acme, Black started to notice that there was considerable inequity in the pay
structure for salaried employees. A discussion with the human resources director led him to believe that
salaried employees pay was very much a matter of individual bargaining with the past president.
Hourly paid factory employees were not part of this problem because they were unionized and their
wages were set by collective bargaining. An examination of the salaried payroll showed that there were
25 employees, ranging in pay from that of the president to that of the receptionist. A closer
examination showed that 14 of the salaried employees were female. Three of these were front-line
factory supervisors and one was the human resources director. The other 10 were non-management.
This examination also showed that the human resources director appeared to be underpaid, and that the
three female supervisors were paid somewhat less than any of the male supervisors. However, there
were no similar supervisory jobs in which there were both male and female job incumbents. When
asked, the HR director said she thought the female supervisors may have been paid at a lower rate
mainly because they were women, and perhaps George, the former president, did not think that women
needed as much money because they had working husbands. However, she added she personally
thought that they were paid less because they supervised less-skilled employees than did the male
supervisors. Black was not sure that this was true.
The company from which Black had moved had a good job evaluation system. Although he was
thoroughly familiar with and capable in this compensation tool, Black did not have time to make a job
evaluation study at Acme. Therefore, he decided to hire a compensation consultant from a nearby
university to help him. Together, they decided that all 25 salaried jobs should be in the same job
evaluation cluster, that a modified ranking method of job evaluation should be used, and that the job
descriptions recently completed by the HR director were current, accurate, and usable in the study.
The job evaluation showed that the HR director and the three female supervisors were being underpaid
relative to comparable male salaried employees. Black was not sure what to do. He knew that if the
underpaid female supervisors took the case to the local EEOC office, the company could be found
guilty of sex discrimination and then have to pay considerable back wages. He was afraid that if he
gave these women an immediate salary increase large enough to bring them up to where they should
be, the male supervisors would be upset and the female supervisors might comprehend the total
situation and want back pay. The HR director told Black that the female supervisors had never
complained about pay differences.
The HR director agreed to take a sizable salary increase with no back pay, so this part of the problem
was solved. Black believed he had for choices relative to the female supervisors:
-
1. To do nothing.
2. To gradually increase the female supervisors salaries.
3. To increase their salaries immediately.
4. To call the three supervisors into his office, discuss the situation with them, and jointly decide what
to do.
Questions
a. What would you do if you were Black? Give your recommendations. 4 3 CO2
b.
How do you think the company got into a situation like this in the
first place?
4 3 CO2
*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT
UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – Second Assignment- (2019-21 Batch)
18MBAHR303 – Compensation & Reward System
Submission Deadline: 26th Oct 2020
Course Outcomes:
The students will be able to
1. Gain insights of various conceptual aspects of Compensation and Benefits to achieve organizational goals.
2. Determine the performance-based compensation system for business excellence and solve various cases.
3. Designing the compensation strategies for attraction, motivation and retaining high quality workforce.
4. Understand the Legal & Administrative Issues in global compensation to prepare compensation plan, CTC,
wage survey and calculate various bonus.
Sl. No. No of
students Creative Assignment Topic Details Marks
Topic 1 2 Create a pay model for an Engineering Industry. Explain with diagram and
example 5
Topic 2 2 You are a HR Manager of a Retails outlet (Like BigBazar/Lifestyle). How
you will structure the reward model for the staffs. 5
Topic 3 2
You are a HR Manager of a IT industry and you are observing that last 2
years the attrition rate has increased around 20%. What you will do for your
employees to reduce the attrition rate? Explain with proper example
5
Topic 4 2
You are working in a hospital industry, how you will create the
compensation structure for Group D level, Hospital Desk job staffs, and for
the Doctors.
5
Topic 5 2
You are working in a hotel industry and you are the HR manager. In respect
of HR alignment, Job evaluation and Job Analysis how will your job
perfectly. Explain with proper example.
5
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – First Assignment (2019-21 Batch)
18MBAMM301–Consumer Behavior
Course Outcomes:
CO 1. Find out the contemporary retail management, issues, and strategies.
CO 2. Evaluate the recent trends in retailing and its impact in the success of modern business.
CO 3. Relate store management and visual merchandising practices for effective retailing
Note: Answerthe following Questions:
*Weightage CL* CO*
1. a. What is consumer behavior? 2 1 1
b. Discuss the role of situational influence on CB. 6 3 2
c. Explain the rights and responsibilities of consumers in India. 8 2 2
2. a. What is personality? 3 1 2
b. Explain the various types of perceived risks and also discuss how the
consumers handle the same. 7 2 1
c. Explain the Maslow’s hierarchy of needs as relevant to the study of
consumer behavior. 10 2 1
3. a. Differentiate between consumer and customer. 3 1 1
b. Discuss the various sources of primary and secondary data for
consumer research. 7 3 2
c. Explain theInput, process, output Model of CB. 10 2 3
4. a. What are qualitative and quantitative researches? 3 1 1
-
b. Explain the various levels of consumer decision making with
examples. 7 2 3
c. Discuss the nature and characteristics of Indian Consumers. 10 2 2
5. Case Study:
Ramesh is a vegetable vendor in a locality of Bangalore city and is into this business for more than 12
years in the same place. He initially started selling vegetables on a rented push cart and steadily grew
up witnessing the stages of owning a push a cart, an auto rickshaw, two more assistants and from
vegetables to fruits to flowers and the like. He is very popular in the locality and residents like to buy
from him (though he charges a premium price) for the quality of vegetables, fruits and flowers he
gets. An additional selling point for Ramesh is the relationship he has maintained with the residents of
locality.
Recently Ramesh was exposed to smart phones and android applications which made him think of
utilizing the same for his business purposes. As of now people call him on his mobile phone to place
orders and there were incidents of Ramesh forgetting the order content. He is now seriously thinking
of getting an application built for his business and enhancing business over a period of time.
a. What kind of low budget consumer research you can suggest
Ramesh? Justify. 4 3 2
b. What are the various variables you can think of which can be
considered for the business feasibility research? Discuss. 4 3 2
c. Evaluate the suitability of a model of consumer behavior suitable in
this case. 5 3 1
d. Discuss the intervention of elements of AIDA model affected by
elements of consumer behavior as relevant to this case. 5 3 3
Note: *Weightage based on Marks allocated to questions during VTU Semester Exams
*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)
*CO- Course Outcomes
-
DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82
DEPARTMENT OF MANAGEMENT STUDIES
Third Semester – Second Assignment (2019-21 Batch)
18MBAMM301–Consumer Behavior
Course Outcomes:
CO 1. Find out the contemporary retail management, issues, and strategies.
CO 2. Evaluate the recent trends in retailing and its impact in the success of modern business.
CO 3. Relate store management and visual merchandising practices for effective retailing
Note: Answerthe following Questions:
*Weightage CL* CO*
1. a. What is consumer perception? 2 1 1
b. Explain the classical conditioning theory of learning. 6 3 2
c. Explain the Sigmund Freud’s theory of personality as relevant to the
study of CB. 8 2 2
2. a. What are attitudes? 3 1 2
b. Discuss the characteristic features of various social classes in India. 7 2 1
c. Explain the various types of reference groups and their influence on
consumer behavior. 10 2 1
3. a. What is opinion leadership? 3 1 1
b. Discuss the key family roles and their influence on purchase and consumption decisions.
7 3 2
c. Explain the tri-component model of consumer attitude. 10 2 3
4. a. What is consumer motivation? 3 1 1
b. Explain the various types of CRM. 7 2 3
-
c. Describe the various elements of consumer perception. 10 2 2
5. Case Study:
A certain showroom dealing with refurbished cars used to put on display, various brands of cars. Both
automatic and manual transmission cars were displayed. The automatic versions of the cars were
usually bought by the software engineers and businessmen. Also these refurbished cars were bought
by the people who bought the cars for the first time.
It was observed that the customers who came to buy the cars came with their family members and
sometimes their friends and relatives also. It was noticed that most of them were interested to buy the
vehicle through finance. Most of the sales would take 3 – 4 weeks to close. The sales were observed
to be highest during end of the year and festival seasons. There was a great influence of housewives
and children in buying cars as they were the ones to enjoy the ride. Since the showroom is interested
in sales to materialize, rather than pushing any par