POKHARA UNIVERSITY business response.

Central unit act as a link between the company and the

marketing people as they communicate the targets to the marketing people and
submit the reports, send by those people, to the higher authorities.
Level: Master Year :2022 Spring Sangita, Mohan, and Rajesh are the member of the marketing team looking
Program: MBA Full Marks : 100 after the whole market. They are responsible for getting monthly requirements
Course: Human Resource Management (MGT 543) Pass Marks : 60 from the clients, mailing the same to the respective departments, looking after
Trimester: III Time : 3hrs the supply whether the goods are reaching the customers as per schedule, and
attending the customers in case of any quality issue. Additionally, they need to
Candidates are required to give their answer in their own words as far as send weekly report about all the above mentioned issues to the top level
practicable. The figures in the margin indicate full marks. management at the central units.
Group A In recent days, Karnali Pardesh unit is facing different problems. The
Attempt any Two questions. [2×15=30] marketing department finds it very difficult to get the materials from the plant
1. Human resource management is a system which needs to be changed with and supply it to the needy customers. Most of the time, it happens that the
changing in business environment. Based on the statement, state and production unit itself was supposed to be stopped due to the non-availability
explain the changing role of human resource managers. of materials. The marketing team has to attend quality issues at least thrice a
2. Prepare a well-structured Job Description and Job Specification for a week. They have sent a number of reports regarding these issues to top
position ‘project manager’ for a construction based company in Nepal. management but no improvement was realized in the production side. As the
3. Explain the ERG theory of motivation with its significance in current quality issue was increased constantly and no interventions were made, slowly
situation. the customers started purchasing goods from other sources. In this situation,
the CEO of KBP visited the customers in the region where there were
Group B maximum complaints, almost all the customers highlighted the quality as the
Attempt any Four Questions [4×10=40] main issue. As soon as he returned to head office he sent a mail to all the
4. Describe the economic environment of human resource management. marketing executives claiming that: The marketing executives failed to
5. Explain in brief, the need of management development in organization. maintain their rapport with customers, major reason for increasing complaints
6. Differentiate between performance based and membership based and decrease in sales is due to the irresponsive nature of the marketing
compensation. department, marketing unit failed to check out whether the schedule is met or
7. What is training need assessment? Explain its methods in brief. not. He further asked all the employees in the marketing department to provide
8. Suggest most feasible strategic HRM principles to cope with different HR a detailed explanation including a detailed report, from Production Manager,
related issues. regarding Production and Dispatch of products along with schedules received
by the production department from the Marketing Department. He also
Group C instructed HR Head to investigate the issue and submit the report and also
Case Study [30] suggest a reporting model that will avoid such an issue later.
Based on the following case, analyze and answer the given questions. Questions:
KBP Ltd. is a manufacturer of the supplies of the offices for creating internal a. Who is at fault in this case CEO or Marketing or Production Department or
service, service to customers. KBP is a highly valued manufacturing company marketing people? Justify your answer. Also find the issue in the case.
to the majority of institutional customers ranging from small to large. KBP b. If you are the HR Head how will you proceed for the investigation? What
has 3 manufacturing units and all of them are situated in 3 different parts of model do you suggest to solve such issues?
Nepal; Madhesh Pradesh, Bagmati Pradesh and Karnali Pardesh. KBP c. Based on the case, what should be the role of HR manager in the
handles the overall management of the business from Bagmati Pradesh unit as organization? How employee relations can be maintained for the defect less
most of the customers are located in this Pradesh as central unit and from here business flow?
marketing managers can reach other units and rest of the parts for prompt Best of Luck
 POKHARA UNIVERSITY 2. Ruru Trading Company in a process of preparing the master budget gathered
the following information about its assets and liabilities and also about
Level: Master Year :2022 Spring future sales.
Program: MBA Full Marks : 100 Schedule 1 Schedule 2
Course: Managerial Accounting (ACC 516) Pass Marks : 60 Inventory of Merchandise Rs. 125,000 November sales (Actual) Rs. 150,000
Trimester: III Time : 3hrs Accounts Receivable 104,000 December sales (Actual) 200,000
Cash in hand 24,000 January sales (Budgeted) 250,000
Candidates are required to give their answer in their own words as far as Equipment 150,000 February sales(Budgeted) 300,000
practicable. The figures in the margin indicate full marks. Accounts Payable 180,000 March sales(Budgeted) 350,000
Management Accounting 9% Debentures 50,000 April sales(Budgeted) 400,000
Group A
Comprehensive Answer Questions 20% sales are cash sales and 80% are credit sales. Experience shows that 50%
Attempt all questions [2× 20 = 40] of credit sales are collected in the month of sales. 30% of credit sales are
1. A manufacturing company provides income statement for its products as collected in next month and 15% of credit sales are collected in next two
follows months of sales and remaining portion is bad debts.
Income Statement All purchases are credit purchases and payments are made on the following
Particulars X Y Total month of purchases. Margin on sales is 40%. Operating and distribution
Units produced and sold 8000 12000 20000 expenses are 30% of the month sales. Expenses are payable on the month of
their being due. The company has a policy of maintaining sufficient inventory
Sales revenue 400,000 900,000 13,00,000
of merchandise to meet the following month’s sales and a minimum cash
Less: Variable cost:
balance of Rs. 20,000.
Direct materials @ Rs. 5/kg 160,000 180,000 340,000
The company has been thinking to buy new equipment in the month of
Direct labour @ Rs. 8/hrs 128,000 288,000 416,000
January at a cost of Rs. 80,000. Depreciation is charged for both existing and
Contribution Margin 112,000 252,000 544,000
new assets at 10% using diminishing balance method. The company has plans
Less: Fixed cost:
to issue the share in the month of February Rs. 150,000. The company going
Departmental fixed cost 52,000 68,000 120,000
to redeemed the debenture at the end of February with 10% premium. At the
end of March 50% of old assets sold at Rs. 85,000.
Joint fixed cost 43,200
The company has reached with an agreement with a bank for a soft loan at
Net income before tax 380,800 12% interest. Loans are received in a multiple of Rs. 5,000 and payments are
Required: made in Rs. 1000. Amount of interest due are paid at the time of loan repaid.
a. Overall BEP Sales in units [4] Required:
b. Profit if total sales of both product is 40,000 units [2] a. Merchandise purchase budget [4]
c. There is possibility of short supply of both raw material and direct labour b. Cash receipt and disbursement budget [8]
hour and it is expected to available as follows c. Budgeted income statement [4]
Raw material 21,000 kg d. Budgeted balance sheet [4]
Direct labour hours 15,000 hours
Use linear programming model, find out optimal product mix for Group B
maximizing profit. [8] Long Answer Questions
d. Probability of sales mix at least breakeven under following expected sales Attempt any SIX questions [6 × 10 = 60]
and probability [6] 3. Management accounting system is useful only for large-scale business
Sales mix 5000 6000 7000 8000 organization it is not suitable for small-scale business organization because it
Probability 0.2 0.3 0.3 0.2 is costly. Do you agree with this statement? Justify.
4.a. The objective of a business firm is always to seek profit. Therefore, there is b. Estimate the total overhead cost for 150,000 units. [2]
nothing to bother about the break-even point. Discuss. c. Standard error of coefficient (Sb) [2]
b. Briefly explain about the relevant cost and irrelevant cost with suitable d. t value at 90% confidence limit [3]
example.
8. Jupiter manufacturing company reported the following operating results at
5. A company has three divisions namely A, B and C. These three divisions are the end of the year
operating at full capacity. The output of the division A is the input of the Production units 25,000
division B. The cost of producing one unit of output for A is Rs. 300. The Sales units 22,000
division A can transfer it to the division B or sell it in the outside market for Opening stock units 2000
Rs. 400. Department B can purchase the same component from outside Selling price per unit Rs.50
suppliers X at Rs. 400. Direct material per unit Rs. 10
Outside supplier X is also supplying some component to the division C at Rs. Direct labour per unit Rs. 8
50 and market price of which is Rs. 70. Outside suppliers X would stop to Variable manufacturing overhead per unit Rs. 5
supply of component to C, if B stop to buy the component from X.
Variable selling per unit Rs. 4
Required:
Fixed manufacturing overhead under absorption by Rs. 15,000
a. Should the division B Continue to buy its component from outside suppliers?
Fixed selling overhead Rs. 30,000
b.If there is no capacity constraints what will be the transfer price.
Standard fixed manufacturing overhead per unit Rs. 3
6. Balaju Manufacturing Company currently utilized only 80% of its capacity. Required:
The cost structure relating to produce one unit of regular product is presented a. Normal capacity [2]
below: b. Income statement under variable costing [6]
Direct material Rs. 10 c. Explain why variable costing and absorption costing report difference
Direct labour Rs. 10 profit. [2]
Manufacturing overhead Rs. 6
Variable selling overhead Rs. 2 9. Delta Company decided to develop the flexible budget for production
The company has defined its capacity in direct machine hour. The total department because of diverse nature of expenses. The company’s capacity is
capacity of the company is 50,000 machine hour. One unit of product required defined in terms of direct machine hours. Total capacity of the company is
0.5 machine hours. The fixed manufacturing cost at normal capacity volume 50,000 hours. Currently the company working at 80% capacity.
is Rs. 400,000. A local customer supplied a offer of 25,000 units at a price of Direct material Rs. 15 per unit
Rs. 25 each. Regular selling price of product is Rs. 40 each. The acceptance Direct labour Rs. 10 per unit
of offer will increase 10% labour cost for extra labour required. Because of Repair and maintenance cost Rs. 250,000 (40% fixed)
bulk purchasing, a discount of 10% will be received on all material purchase. Supervision cost Rs. 100,000 (40% variable)
Required: Depreciation Rs. 150,000 (100% fixed)
a. Prepare differential income statement and suggest whether the order Standard hour allowed per unit of output 2 hours
should be accepted or not. [8] Required: Flexible budget for production level at 60% and 90% capacity.
b. Opportunity cost of offer if any [2]
7. The following information are collected from the book of a manufacturing Best of Luck
company:
Year 2018 2019 2020 2021 2022
Output in units (00) 100 150 250 400 500
Overhead Rs. (000) 50 100 170 230 300
Required:
a. Segregate overhead cost using Least-square method. [3]
 POKHARA UNIVERSITY c. Why customer service is the key variable in distribution
management?
Level: Master Year :2022 Spring Group B
Program: MBA Full Marks : 100 Comprehensive Question (15×2 = 30; answer any TWO question)
Course: Marketing Management (MKT 561) Pass Marks : 60 1. Imagine yourself as the marketing manager of a company which
Trimester: III Time : 3hrs makes shoes. The company is one amongst many running this kind of
business. The manager has come to you for consultation. Help him
Candidates are required to give their answer in their own words as far as devise the STP (Segmentation, Targeting and Positioning) Strategy.
practicable. The figures in the margin indicate full marks. 2. How has the internet affected marketing? What are the new trends
Group A that you observe as a result of advent of internet?
Case Study [20] 3. How can companies initiate price changes and what are the traps that
CASE: DELL COMPUTERS companies can fall into because of this? How should one respond to
Dell computers sold personal computers directly to end users while at the price changes by the competitor?
that time most computer manufacturers sold their products through
distributors and resellers. Selling direct first started through telephone Group C
then later via Internet. Dell’s direct distribution enabled customers, Conceptual Question (5×10=50; Answer any FIVE question)
especially corporate customers to express what features they wanted in 1. What do you understand by the product line and product mix?
computers. Dell then quickly assembled the components and shipped Explain various product line strategies giving examples.
them away to the target customers. 2. What is Product Life Cycle? Explain the strategies associated with
Dell became very popular among computer buyers since they can get the growth stage of Life Cycle with the help of examples.
computers exactly in the shape, size, and functions they always desired. 3. Distinguish between convenience goods, shopping goods and
Moreover, the price-value offer of Dell was unbeatable. Customers got specialty goods with examples.
computers at almost the same price as other brands with customer’s own 4. What is competitive frame of reference? Explain giving example?
specifications. In addition, the waiting time for computers was cut down 5. Give various tools of the communication mix. Also explain any three
to minimum. This strategy gave the company a competitive edge in the tools.
computer market. 6. Write short notes on any two
In order to maximize the customer services and minimize distribution a. Reference Price
costs, the company worked very closely with local suppliers of spares, b. Channel conflict
parts, and customer service. In later years when the business expanded c. SBU
the company was forced to add a minimum number of local distributors
in the channels. The costs were also cut down by keeping only 15 days
inventory of parts and components while the major competitors Compaq
was keeping inventory for 65 days. Best of Luck
Discussion Questions
a. Analyze Dell’s distribution strategy in distribution to get the
competitive edge.
b. Can this distribution strategy be applied in case of marketing of
other consumer durables like refrigerators and TV sets?
 POKHARA UNIVERSITY whereas second group is provided with same old teaching methods.
Researcher will collect the data after six months of program.
Based on the case above answer the question
Level: Master Year :2022 Spring a) What is the appropriate research design for the study? Also
Program: MBA Full Marks : 100 categorize the design. [5]
Course: Business Research Methodology (RES 611) Pass Marks : 60 b) What are the merits and demerits of the research design? [5]
Trimester: III Time : 3hrs c) If you are the researcher, why would you choose the design? [5]
2. A market research firm has been hired to conduct a study on consumer
Candidates are required to give their answer in their own words as far as preference for new product. The firm plans to conduct a survey on
practicable. The figures in the margin indicate full marks. Lalitpur district.(Assume that the total population of the district is
Group-A 100,000).
Attempt any five questions. [5×10=50] a) Calculate the appropriate sample size for the study [5]
1. Scientific research focuses on theoretical and empirical set of skills b) Explain the concept of sampling along with its category. Also
(Bhattacherjee, 2012). Justify the statement with examples. explain which sampling technique you would use for the study [10]
2. “Research is much concerned with proper fact finding, analysis and 3. Explain the concept of data collection and its techniques. [15]
evaluation.”Do you agree with this statement? Give reasons in
support of your answer. Group C
3. Conducting the literature requires series of steps. Explain Case Analysis [20]
4. The task of defining the problem formulation follows sequence of Determinants of Employee Satisfaction
steps. Explain The importance of Job satisfaction has been recognized from many
5. Scaling describes the procedures by which numbers are assigned to decays in academic as well as in organizational level. Agho et al. (1993)
various degrees of opinion, attitude and other concepts.” Discuss. conducted a study using causal model to identify the factors affecting the
Also point out the bases for scale classification. employee satisfaction. The study showed the importance of job satisfying
6. Explain the following terms: stating that job satisfaction has been consider as the important concept in
a) Type I and Type II error organizational study. In line with this, it is also considered that the
b) Meta Analysis success and failure of any organization depends on employee
c) Pure research and Basic research satisfaction. In this regard, Roeth and Dickson (n.d.) proposed that job
d) Measurement and Scaling satisfaction increases productivity leads to goals achievement. However,
e) Research Philosophy and Paradigm there are numerous factors that affect job satisfaction. In this regard,
there is serious questions about considering those factors. In order to
Group-B address the problem Price-Mueller model of job satisfaction has been
Attempt any two questions [2×15=30] introduced. The model considered nine exogeneous variables (Agho et
1. Quest International College is interested in investigating the al., 1993) that includes routinization, centralization, instrumental
effectiveness of new teaching and learning program for communication, integration, pay, distributive justice, promotional
undergraduate and graduate students. Students were divided into two opportunity, role overload and professionalism. However, the model has
groups. Teachers are also provided with training of new teaching been criticized from many aspects. For example, House (1981), as cited
methods, pedagogy, internet-based teaching methods and others. First in Agho (1983) critically examined as concludes that the model excludes
group of students are provided with new teaching tools and methods important job characteristics like role conflict, supervisor support and
many others. In similar context, the model also failed to address the
important characteristic like job characteristics. Scholars developed the
revised model that addresses all the criticism.
In this regard, Agho et al. (1993) used the environmental variable, job
characteristics variable, and personality variables in the study. More
specifically environmental variable includes job opportunity; similarly
job characteristics include job autonomy, role ambiguity, role conflict,
role overload, distributive justice, supervisory support, internal labor
market, task significance, integration, pay and routinization, likewise
personality attributes includes work motivation, positive affectivity and
negative affectivity. The revise causal model of job satisfaction with 405
full time and part time employee were considered. Multiple regression
analysis and correlation analysis is used in the study. Similarly, structural
equation model is used to examine the effect of independent variables to
dependent variable. The study concludes that job autonomy, information
transparency, payment and compensation, role overload, role conflict,
has significant impact on job satisfaction.
Similarly, the study also used demographic variables like age, gender,
education, tenure, marital status. The study found that age, and sex has
significant impact on job satisfaction.
1. Write down the research question and Objective of the study. [5]
2. Formulate the hypothesis and Conceptual framework. [5]
3. Write the significance of the study. [5]
4. State your recommendation based on the study. [5]

Best of Luck
 POKHARA UNIVERSITY Net income before tax
Less: Tax @ 50%
Rs 120,000
60,000
Net income Rs 60,000
Level: Master Year :2022 Spring Industry Average Ratios
Program: MBA Full Marks : 100 Current ratio 2 times Quick ratio 1.20 times
Course: Financial Management (FIN 531) Pass Marks : 60 Inventory 3 times Total Assets 1.5 times
Trimester: III Time : 3hrs Turnover Turnover
Debt ratio 40% DSO 40 days
Net Profit Margin 2% Times interest earned 7 times
Candidates are required to give their answer in their own words as far as Return on equity 10% P/E ratio 20 times
practicable. The figures in the margin indicate full marks. The market price of stock is Rs 102 per share.
Group A a. Calculate current ratio and quick ratio. What observations do you make about the
Long Answer Questions: (Attempt any two questions) [2×15=30] liquidity position of the company?
1. What is the role of financial manager? Why shareholders wealth maximization b. Calculate inventory turnover ratio, day’s sales outstanding and total asset
objective superior than profit maximization objective? turnover. How do you compare the company’s asset utilization as compared to
2. You have just completed your post-graduation in Finance from Pokhara the industry?
University and have been appointed as financial consultant to the chief financial c. Calculate debt ratio and times interest earned ratio. How do you compare the
officer in Sagarmatha Textile Company. The company is one among newly company’s debt utilization and interest paying capacity as compared to the
established companies in the Textile industry. The company has just completed industry?
its two years of operation and company’s management is seeking advice in d. Calculate profit margin, and return on equity. Do you think that the company’s
relation to the company’s financial performance as compared to other firms in the profitability position is satisfactory?
industry. The Chief Financial Officer of the corporation has provided you the e. Calculate the price earnings ratio. How do you compare this ratio with industry
following financial statements of the recent year and you derive the relevant average?
industry average ratios of the industry average ratios of the Textile industry for f. If the management of the company offers you to buy shares of the company,
the recent year. You need to consider the following industry average and financial would you buy them? Why?
statements for Sagarmatha Textile Company to answer the questions that follow: g. If the management of the company applies for more long term loan, would you as
Balance Sheet as of 31st Dec 2022 a lender recommend loan to the company? Why? Give reasons?
Liabilities & equity Amount Assets Amount
3. On January 1, the total asset of the Rohita Company was Rs. 60 million. During
Accounts payable Rs 120,000 Cash Rs 120,000
the year, the company plans to raise and invest Rs 30 million in new projects.
Notes payable 120,000 Marketable securities 88,000
Other current liabilities 56,000 Accounts receivables 176,000 The firm's present market value capital structure, shown below, is considered
Long-term debt 64,000 Inventories 424,000 to be optimal. Assume that there is no short-term debt.
Common stock (10,000 504,000 Fixed assets 512,000 Debt Rs.30,000,000
shares) Common equity 30,000,000
Retained earnings 336,000 Total Rs.60,000,000
Total Rs1,200,000 Total Rs 1,200,000 New bonds will have an 8 percent coupon rate, and they will be sold at par.
Income statement for the year ended Dec 31, 2022 Common stock is currently selling at Rs.30 a share. Stockholders' required rate of
Sales revenue Rs return is estimated to be 12 percent, consisting of a dividend yield of 4 percent
Less: Cost of goods sold 2,120,000 and an expected growth rate of 8 percent. The marginal corporate tax rate is 40
1,760,000 percent.
Gross profit Rs 360,000 a. To maintain the present capital structure, how much of the new investment
Less: Operating expenses 228,000 must be financed by equity?
Net income before interest and Rs 132,000 b. Assume that there is sufficient cash flow such that Rohita can maintain its
taxes 12,000 target capital structure without issuing additional shares of equity. What is the
Less: interest WACC?
 c. Suppose now that there is not enough internal cash flow and the firm must You have narrowed your selection down to two choices: (1) Franchise K, Kamala’s
issue new shares of stock. Qualitatively speaking, what will happen to the Soups, Salads, & Stuff, and (2) Franchise B, Bimala’s Fabulous Fried Chicken. The
WACC? net cash flows shown below include the price you would receive for selling the
franchise in Year 3 and the forecast of how each franchise will do over the 3-year
Group B period. Franchise K’s cash flows will start off slowly but will increase rather
Short Answer Questions: (Attempt any five questions) [5×10=50] quickly as people become more health-conscious, while Franchise B’s cash flows
1. What is agency problem? How could you resolve it? will start off high but will trail off as other chicken competitors enter the
2. Assume that you are nearing graduation and that you have applied for a job with a marketplace and as people become more health-conscious and avoid fried foods.
local bank. As part of the bank's evaluation process, you have been asked to take Franchise K serves breakfast and lunch whereas Franchise B serves only dinner, so
an examination, which covers several financial analysis techniques. The first it is possible for you to invest in both franchises. You see these franchises as perfect
section of the test addresses discounted cash flow analysis. See how you would complements to one another: You could attract both the lunch and dinner crowds
do by answering the following questions. and the health-conscious and not so-health-conscious crowds without the franchises
a. A company’s sales in 2009 were Rs 500 million. If sales grow at 8%, what will directly competing against one another.
they be 10 years later, in 2019? Here are the net cash flows (Amount in thousands)
b. How long would it take Rs 1,000 to double if it were invested in a bank that pays Expected Net Cash Flow
6% per year? Year Franchise K Franchise B
3. You are planning to borrow Rs 100,000 on a 3-year, 12 percent, annual payment, 0 (Rs 100) (Rs 100)
fully amortized term loan. What fraction of the payment made at the end of the 1 10 70
third year will represent repayment of principal? 2 60 50
4. The current selling price of bond in market is Rs 1,000. The bond has a Rs 1,000 3 80 20
par value, pays interest at 10 percent, and matures in 10 years. Your required rate Depreciation, salvage values, net working capital requirements, and tax effects are
of return for the bond of this class is 9 percent. Would you buy this bond? all included in these cash flows.
5. A common stock with Rs 100 par value that will pay dividend of Rs 20. The You also have made subjective risk assessments of each franchise and concluded
growth rate of dividend is 8 percent per year forever. The stock is selling for Rs that both franchises have risk characteristics that require a return of 10%. You must
200 per share and you think that the required rate of return on such stock is 20 now determine whether one or both of the franchises should be accepted
percent. Would you buy this stock? Required:
6. Write short notes (Any two) a) (i) Define the term net present value (NPV). What is each franchise’s NPV?
a. YTC vs YTM (ii) What is the rationale behind the NPV method? According to NPV, which
b. Capital structure Vs Financial structure franchise or franchises should be accepted if they are independent? Mutually
c. Real assets Vs Financial assets exclusive?
(iii) Would the NPVs change if the cost of capital changed?
Group C
Case Answer Questions [20] b)(i) Define the term internal rate of return (IRR). What is each franchise’s IRR?
1. Carefully read the following case and analytically answer the questions given (ii) What is the logic behind the IRR method? According to IRR, which
below: franchises should be accepted if they are independent? Mutually exclusive?
You have just graduated from the MBA program of Pokhara University, and one of (iii) Would the franchises’ IRRs change if the cost of capital changed?
your favorite courses was “Entrepreneurship.” In fact, you enjoyed it so much you
have decided to “be your own boss.” While you were in the master’s program, your c) (i) What is the payback period? Find the paybacks for Franchises K and B.
grandfather died and left you Rs 1 million to do with as youplease. You are not an (ii) Which method of cash flow evaluation should You use? Why do you think
inventor, and you do not have a trade skill that you can market; however, you have this method is the best?
decided that you would like to purchase at least one established franchise in the
fast-foods area, maybe two (if profitable). The problem is that you have never been
one to stay with any project for too long, so you figures that yourframe is 3 years.
After 3 years, you will go on to something else. Best of Luck