Admas University

Faculty of Business
Department of Business Management
Model Exit Exam II CODE MG-002

Name _________________________ SENE, 2015

ID.No._________________________ Time allotted: 3:00 hrs
Section _________________
Model Exit Exam Business Management
Department of Business Management
Share of Competencies (KSA) per course in Exit Exam
Course
Share of Competencies
Weight Share of
Themes Course Name Total
Cr.Hrs./ Courses%
Knowledge Attitude Skill
ECTS
Theme 1: Introduction to Management 3 8 7 1 8
Fundamentals of
Principles of Marketing 3 7 7 7
Management and
Marketing International Marketing 3 7 7 7
(9) 22% 22 21 0 1 22

Theme 2: Human Human Resource Management 4 8 5 1 2

Resource and Organizational Behavior 3 7 4 2 1
Organizational
Behavior Leadership and Change
3 6 5 1
Management
(9) 21% 21 14 3 4 21
Entrepreneurship 3 6 4 1 1
Theme 3:
Innovation, Management information systems 3 4 2 2
Strategy and
Project Strategic Management 3 6 5 1
Management
Project Management 3 6 5 1
(12) 22% 22 16 1 5 22
Theme 4: Business Research Methods 3 7 7
Managerial
Statistics for Management I 3 4 2 2
Statistics and
Business Research Statistics for Management II 3 4 4
(9) 15% 15 9 0 6 15
Theme 5: Operations Management 4 8 7
Management 1
Science and Financial Management 3 5 2 3
Financial
Management Operations Research 4 7 3 4

(11) 20% 20 12 0 8 10
(50) 100% 100 72
4 24 100
Instruction: Read the questions and choose the right answer from the given alternatives and
write the letter of your choice on the space provided at the separate answer sheet. (1 point
each)

1. Which of the following leadership style results in low motivation from the employees’ point
of view?
A. Democratic leadership
B. Free rein leadership
C. Autocratic leadership
D. Trait leadership
2. In an organization where decentralization is greater,
A. Decisions are made at the top level of management
B. More complex nature of work will not get better accomplished
C. Well-trained subordinates would exist
D. Narrow span of management appears
3. Organizational concept which refers to the number of subordinates who report directly
to a manager, or the number of subordinates who will be directly supervised by a
manager is:
A. Span of power
B. Span of Authority
C. Span of responsibility
D. Span of control
4. The ability to change the attitude or behavior of individuals or groups in the organization is:
A. Authority
B. Delegation
C. Power
D. Span of control
5. is the process of identifying and choosing those applicants who can successfully
perform a job from the available candidates.
A. Selection
B.Recruitments
C. Human resource development
D. Delegation
6. is a rational choice or selection of one alternative from among a set of alternatives
A. Staffing
B. Decision Making
C. Recruitments
D. Organizing
7. What do organizations call the short statement which lists the title, duties, and

responsibilities for a specific position?

A. Job specification
B. Induction
C. Training
D. Orientation
8. Of the following which one is the benefit of training?

A. Chances of promotion
B. Increased productivity
C. Fewer accidents
D. All of the above
9. The politics that exists in company’s home country is
A. Foreign politics B. Domestic politics C. International D. A & C
10. --------------------- is the process of evaluating each market segment's attractiveness and
selecting one or more segments to enter.
A. Mass marketing
B. Market segmentation
C. Market targeting
D. Market positioning

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11. __________ refers to producing and selling of the same product worldwide.
A. Product adaptation
B. Product standardization
C. Product customization
D. Product Modification
12. __________ refers to direct exchange of goods of equal value, with no money and no third
party involved in it.
A. Countertrade
B. Merger
C. Barter
D. Turnkey contract
13. --------------The commercial activity of selling and shipping goods to a foreign country.
A. Turnkey project
B. Management contract
C. Contract manufacturing
D. Exporting
14. The need for international marketing arises due to:
A. Growth of overseas markets
B. Profit
C. Diversification
D. All of the above

15. Which one of the following is true about domestic and international marketing?
A. Domestic marketing is less risky while international marketing is more complex
B. Domestic marketing requires huge financial resources while international
marketing need less financial resources
C. Domestic market deals with different countries market while international market
deals with only a single country market
D. In domestic marketing the company can have the different policies and strategies
while international market requires the same policies and strategies.

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16. Marketers divide a market into distinct groups of buyers who have distinct needs,
characteristics, or behaviors in order to design separate marketing mix for each group
of markets. What is this customer-driven marketing strategy known as?
A. Market Targeting
B. Mass Marketing
C. Undifferentiating
D. Differentiation
17. A non-personal communication to target markets, usually paid for by the advertiser,
delivered through mass media is referred to as:
A. Advertising
B. Sales promotion
C. Personal selling
D. Publicity
18. ________ includes physical attributes that influence consumer’s perceptions, such as
colors, shapes, sizes and materials.
A. Price
B. Product
C. Promotion
D. Distribution

19. Consumer goods that the consumer does not know about or does not normally think
about buying are called:
A. Custom products.
B. Unsought products.
C. Specialty products.
D. Shopping products.
20. ________is the activity of designing and producing the container or wrapper for a product.
A. Labeling
B. Packaging
C. Product support services
D. Product line decisions

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21. Direct marketing refers to communication between the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ and
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ directly.
A. Agent and retailer
B. Producer and Consumer
C. Society and target market
D. Price and services.
22. Anything that can be offered to a market for attention, acquisition, use, or consumption
that might satisfy a want or need is called a(n):
A. Idea.
B. Demand.
C. Product
D. Service
23. Which one of the following is not the disadvantage of external recruitment?
A. New ideas come in.
B. Intensive training.
C. Extensive orientation time.
D. High recruiting cost.
24. Which one of the following is a method of internal recruitment, which can facilitate promotion and
transfer within the organization?
A. Advertisement
B. Employee referral
C. Job posting
D. Employment agency
25. The kind of appraisal in which lower employees evaluate the performance of their supervisors refers
to
A. Peer evaluation C. Subordinate evaluation
B. Self-Appraisal D. Group Appraisal
26. Which one of the following is different from the others
A. Life Insurance C. Vacations
B. Retirement Assistance D. Salary
27. A type of compensation that includes any satisfaction, which employees receive from the job, such as
the need for recognition, responsibility, personal growth and the like or from environment in which
they work.
A. Direct compensation C. Financial compensation
B. Indirect compensation D. Non-financial compensation
28. Which one of the following factors affects compensation decision?

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 A. Quality and quantity of needed skill
B. The organization’s current financial position and financial prospects for the coming year.
C. Cost of living index
D. All
29. A compensation system in which a firm determines the relative value of one job in relation to another
is
A. Job analysis C. Job design
B. Job evaluation D. Job rotation
30. Employees pay dissatisfaction may lead to all of the following, except;
A. Strikes D. All of the above
B. Increased grievances
C. Forms of physical withdrawal
31. Which of the following is not the characteristic of a functional conflict?

A. Disagreement with management may be considered as disloyalty.

B. Conflict leads to innovation and creativity, as there is competing sprit among various groups.
C. Conflict develops cohesiveness within the group members.
D. Enhance work culture leads to up gradation of various systems within the organization.
32. When someone join a group or team to fulfill his /her social need the reason to join the group
is called the need for___________________________________
A. Affiliation C. Power
B. Goal achievement D. Self-esteem
33. When an individual fails to achieve his objective and exhibits irritation, errors, frustration
and apathy; the stress has reached on the stage of _____________________________
A. Mild B. Burn out C. Moderate \ D. All

34. Organization Behavior focuses at 3 Levels.

A. Individuals, Organization, Society
B. Society, Organization, Nation
C. Employee, Employer, Management
D. Individual, Groups, Organization.
35. Which of the following is true about punishment?
A. Administering a negative consequence when the undesired behavior occurs.
B. Punishment increases the frequency of a behavior.

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 C. Punishment is almost the same as negative reinforcement
D. Punishment removes a negative consequence.
36. Which of the following is not the characteristic of mechanistic form of organizational
Structure?
A. standardized job structure C. Fluctuation in work culture
B. Centralized work culture D. High specialization
37. In______________________ stage group or team members really start to feel that they
belong to the team or group, and they develop close ties with one another.
A.Norming C. Forming
B. Storming D. Performing

38.One of the following is a leadership theory states that effective leadership is contingent up on
a given situation

A. Behavioral theory
B. Contingency theory
C. Trait theory
D. None of the above

39.Which one of the following is a leadership theory which states that leaders are assumed to be
different from other people?

A. Trait theory
B. Behavioral theory
C. Contingency theory
D. None of the above
40.Which one of the following is correct in refreezing stage of Kurt Lewin’s model?

A. The objective of refreezing stage is to stabilize the new situation by balancing the driving
and restraining forces
B. The emphasis is on the reinforcing of new processes and tasks in the organization by the
employer
C. Reward is crucial for behavior modification in refreezing stage
D. All of the above

41.Which one of the following is correct?

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 A. Work centered leaders are known as democratic, considerate, consultative and
participative leaders.
B. People centered leaders are known as democratic, considerate, consultative and
participative leaders
C. People centered leaders are known as autocratic, result oriented and highly centralized
D. Both work centered and people centered leaders are democratic.

42. One of the following is false concerning Herzberg’s two factor theory

A. In Herzberg’s two-factor theory motivations factorsare the primary cause of job

satisfaction
B. In Herzberg’s two-factor theory hygiene factors includes organizational policies and
salaries.
C. In Herzberg’s two-factor theory motivations factors are the primary cause of job
dissatisfaction
D. In Herzberg’s two-factor theory hygiene factorsare the primary cause of job
dissatisfaction

43.Douglas McGregor identified two opposing perspectives (Theory X and Theory Y) that he
believed typified managerial views of employees and suggested that management must start with
the basic question of how managers see themselves in relation to others. Which of the following
is not correct about his theory?

A. Theory X managers view people as having an inherent dislike of work

B. Theory X managers assume that people are self-motivated and do not want to be
directed
C. Theory Y managers assume that the average person will accept, even seek,
responsibility
D. Theory Y managers view people as responsible and conscientious
44. The process of spotting good ideas and eliminating poor ones while developing a product
is called

A. Idea generation C. Idea screening

B. Product development D. Commercialization

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 45. Select the wrong statement
A. Proprietorship businesses have limited liability
B. In Partnership business, 2/more individuals are founders of the business
C. Corporations have limited liability
D. Corporations have separate and legal entity

46. Which stage of new venture development deals with evaluating business opportunities
and examining and gathering required resources?
A. Discovery B. Evaluation C. Implementation D. Termination
47. ________ is the system of shared actions, values, and beliefs that develops within an
organization and guides the behaviour of its members.
A. Marketing information system C. Organizational culture
B. Organizational conflict D. Power
48. Assume you are running a small business, meanwhile you need money to pay suppliers
and other overhead costs. Which finance is required?
A. Permanent capital C. Asset finance
B. Lease D. Working capital
49. ______________provide exclusive rights to creative individuals for the protection of
literary or artistic productions.
A. Copyright B. Patent C. Trade mark D. Brand

50. _____is a favourable condition in the organization’s external environment which enables
it to consolidate and strengthen its position.
a. Threat
b.Strength
c. Weakness
d.Opportunity

51. Retrenchment strategy can be achieved through the following decisions except:
A. Selling a division or part of an organization.
B. New and related Products or services addition.
C. Product elimination and downsizing the workforce.
D. Restructuring its management team and financial reengineering.
E. Sells a business unit to another firm that will continue to operate
52. ____________is the strategy in which a firm offers products or services to a niche group of
customers at the lowest price.
A. Low-cost focus strategy
B. Best-value focus strategy
C. Differentiation strategy
D. Best-value –differentiation strategy.
53. _________are a group of firms in an industry following the same or a similar strategy along
the same strategic dimensions?
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 A. Competitors
B. Suppliers
C. strategic group
D. consumers
54. _________control involves evaluation of inputs and taking corrective action before a
particular sequence of operation is completed.
a. Feedback Control
b. Concurrent Control
c. Feed Forward Control
d. Steering control
55.A strategy formulation tool used to summarize and evaluate the major strengths and
weaknesses of the functional areas and provides a basis for identifying and evaluating
relationships among those areas
A. Value chain B. Supply chain C. IFE matrix D. EFE matrix
56.Select the wrong statement about project constraints.
A.Project constraints are independent each other
B.Project managers cannot make decision separately regardless of their dependency
C.Successful project management means meeting all the constraints
D.If one constraint is primary constraint, the project manager should adjust the other
factors accordingly
57.Which constraint answers ‘what is going to be done?’
A. Time B. Cost C. Scope D. schedule
58.____________are the people involved in or affected by project activities.
A. Stockholders B. Stakeholders C. project managers D. Government officials
59.Under UNIDO project cycle, the pre-investment phase includes all, except;
A. Project identification C. Project appraisal
B. Feasibility study D. Project implementation
60.During project evaluation, which technique makes the NPV of the incremental net benefit
stream equal to zero?
A. PBP B. BCR C.BCR D. IRR
61.Which statement is false about net present value?
A. Accept the project if NPV is positive
B. Accept the project if NPV is greater than zero
C. Reject the project if NPV is Zero
D. Reject the project if NPV is negative

62.Which decision making stages deals with identifying problems and raising WH questions?
A. Intelligence B. Design C. Choice D. Implementations

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63.All of the following are true about transaction processing system (TPS), Except;
A. It is cross-functional information system C. Online TPS is economical
B. Online is process data upon their entry D. Batch TPS is easy for control
64.Which DIKW hierarchy deals with the future?
A. Data B. Information C. Knowledge D. Wisdom
65.Which of the following is wrong?
A. Data has no meanings
B. Data can be presented in number, sign forms
C. Data can’t be used for decisions
D. Data as it is, can be used for decision making

66.This type of sampling is most useful for pilot testing.

A. Purposive/Judgmental Sampling Procedure

B. Convenience Sampling Procedure

C. Systematic Sampling Procedure

D. Stratified Sampling Procedure

67.Focuses on a real-life problem or situation with a view to helping reach a

decision how to deal with it (specific). Concerned with the solution to particular
problems.

A. Applied or Policy Oriented Research

B. Basic research (fundamental, pure)
C. Descriptive Research
D. Correlation Research

68.The task of drawing inferences from the collected facts after an analytical
and/or experimental study

A. Data Interpretation
B. Data Analysis
C. Data Processing
D. Formulation

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69.Data which are collected afresh and for the first time, and thus happen to be
original in character

A. Primary data
B. Secondary data
C. Published material
D. All of the above

70._____is a highly structured document that describes your study's topic and
explains how you plan to investigate a specific inquiry

A. Research Problem
B. Research proposal
C. Formulation
D. Research design

71.The preparation of research design, appropriate for a particular research

problem, involves the consideration of

A. Objectives of the study

B. Methods of data collection to be adopted

C. Source of information- sampling design

D. All of the above

72.Which one is not thesis report outline

A. Statement of problem
B. Delimitation of the study
C. Limitation of the study
D. None of the above
73. One of the following isn't the types of probability sampling techniques.

A. Simple random sampling C. Stratified sampling

B. Cluster sampling D. Convenience Sampling

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74. Suppose a total of 80,000 families live in Bole sub city. A sample of 400 families are selected
from this city, and 48 of them own homes. What is

75. The sample proportion of families who own homes in the sample?

A. 8% B. 83 % C. 12% D. 0.05%

76. Which one of the following is appropriate to test the independence between two variables?

A. z-distribution C. . f-distribution
B. t-distribution D. Ch-square distribution

77. Awash Bank manager claims that the average number of customers served per day are
lower than 100. Using a 0.01 level significance, if the computed value of the sample z=2.184,
the hypothesis of the manager should be;

A. Accepted C. Can't determined

B. Rejected D. Estimated
78. Which one of the following defined as the numerical measure of the likelihood or possibility that an
event will occur.in the experiment?

A. Measure of central tendency

B. Sampling distribution
C. Probability
D. Variance

79.For the sample data of 8, 2, 6, 9, 4, 7, 2, 4, 8, 6, 10, 4, what is the value arithmetic mean, mode
and median respectively?

A. 4, 6, 5.83
B. 5.83, 4,
C. 6, 5.84, 4
D. 4, 5.83, 6

80. The daily wages of all employees of certain a company has mean of 100 birr per day with standard
deviation of 8. What is the probability (z-value) that the wages of all employees will be between birr 110
and it's mean?

A. 0.3944
B. 0.3849
C. 0.4032
D. 1.25

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81.Assume that 60% of all customers who enter a department store make a purchase. What is the
probability that exactly 2 of the next 3 customers will make a purchase?

A. 0.72
B. 0.50
C. 0.432
D. 0.288

82.The bank tailor is always expected to deliver service for customer upon the order of customer
bank account from top to bottom. If the tailor issue service by inverting the order of customer
account, what will be the type of job sequencing?
A. FCFS B. LCFS C. Critical Ration D. Slack time
83.The new cement company named as Dangotie intends to open new branch either in Axum or
Bahrdar or Hawassa. Using the following variables to be considered for facility location
decision, determine which location alternatives should be chosen?
Factors Weigh Location (max score 100)
t Hawass Baherdar Axum
a

Availability of 0.15 80 70 60
power
Proximity to 0.20 72 76 92
customer
Display area 0.18 88 90 90
Operating cost 0.27 94 86 80
Infrastructure 0.10 98 90 82
HR availability 0.10 96 85 75
A. Axum B. Bahirdar C. Hawassa D. No difference
84._______is a form of production process where production department are organized according to
the types of product being produced with high volume of standardized output.
A. Continuous process
B. Assembly line process
C. Intermittent processing
D. Job shop process
85. For which of the following operations would a fixed-position layout be most appropriate?
A. Assembling automobiles B.Producing TV sets
C.Constructing a bridge D.Running an insurance agency
86._______ is the planned or engineered rate of output of goods or services under normal or full
scale operating conditions?
A. Actual capacity B. System Capacity C. Design Capacity
D. Nominal capacity

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87. At which stage of product design product ideas are evaluated by people from different
departments?
A. Idea development B. Product screening
C. Preliminary design and testing D . Final design
88. _____________is the assignment of jobs to work or processing centers
A. Scheduling B.Loading C.Sequencing D. Aggregate planning
89.Pick the correct statement:
A. unlike service, manufacturing is labor intensive
B. like manufacturing, service is durable
C. unlike service, manufacturing is easy to measure productivity
D. unlike manufacturing, service is durable
90. A market where short term debt securities are easily traded are;
A. Capital market C. Money market
B. Bond market D. Financial market
91.A short term creditors would be most interested in
A. Profitability ratio C. Liquidity ratio
B. Activity ratio D. Leverage ratio
92.When the market's required rate of return for a particular bond is much less than its coupon
rate, the bond is selling at:
A. discount
B. Premium
C. face value
D. par
93.A bond of Birr 1,000 at 6% is issued at par. The bond had a maturity period of five years. As of today
five more years are left for final repayment at par. The current discount rate is 10 percent. What is the
present value?
A. 900
B. 848
C. 858
D. 800
94.A preferred stock pays an annual dividend of Br. 9 and the current market price is Br. 81. Compute
the required rate of return from the preferred stock.
A. 11.11%
B. 12.11%
C. 14.11%
D. 20%
95.In________________ models, everything is defined and the results are certain,

A. Deterministic Models

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 B. Probabilistic Models
C. stochastic
D. Physical model
96. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is expressed in the form of inequalities or equations in operations research model.
A. Constraints
B. Objective Functions
C. parameters
D. Right hand side
97.One of the following isn't the types of probability sampling techniques.

C. Simple random sampling C. Stratified sampling

D. Cluster sampling D. Convenience Sampling

98.An assumption that implies that limited numbers of choices are available to a decision maker is
known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A. Certainty
B. Proportionality
C. Finite choices
D. linearity
99. MODI method is used to conduct ‐‐‐‐‐‐‐‐‐‐‐‐‐
A. Optimal solutions
B. Optimality test
C. Initial solution
D. optimization
100. For solving an assignment problem, which method is used?
A. Hungarian
B .American
C. NWCM
D. VAM

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 Admas University
Faculty of Business
Department of Business Management
Model Exit Exam
Answer Sheet
Sene, 2015
Time allotted: 3:00 hrs

Name _________________________
ID.No._________________________
Section _________________

Answer Sheet
Fundamentals of Management and Marketing
1. C 2. C 3. D 4. C 5. A 6. B
7. A 8. D 9. B 10. C 11. A 12. C
13. D 14. D 15. A 16. D 17. A 18. B
19. B 20. B 21. B 22. C
Human Resource and Organizational Behavior
23. A 24. C 25. C 26. D 27. D 28. D
29. B 30. D 31. A 32. A 33. B 34. D
35. A 36. C 37. A 38. B 39. A 40. D
41. B 42. C 43. B
Innovation, Strategy and Project Management
44. C 45. A 46. B 47. C 48. D 49. A
50. D 51. B 52. A 53. C 54. C 55. C
56. A 57. C 58. B 59. D 60. D 61. C
62. A 63. C 64. D 65. D
Managerial Statistics and Business Research
66. B 67. A 68. A 69. A 70. B 71. D
72. D 73. D 74. C 75. D 76. C 77. A
78. C 79. B 80. A
Management Science and Financial Management
81, C 81. B 82. A 83. C 84. B 85. C
86. C 87. B 88. B 89. C 90. C 91. C
92. A 93. B 94. A 95. A 96. A 97. D

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98. C 99. B 100.C

GOOD LUCK!