Admas University

Faculty of Business
Department of Business Management
Model Exit Exam IV CODE OL-004

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)

Theme 1 Fundamentals of Management and Marketing

1. The following are the major importance of controlling except one

A. Adapting to changing conditions
B. Limiting the magnification of errors
C. To prevent failure
D. Developing state of Fear For Subordinate
2. Ato Alemu, the general manager of commercial bank of Ethiopia, decided to terminate some
employs as a result of their poor performance. Which type of power the manager exercise?
A. Legitimate power
B. Coercive power
C. Reward power
D. Referent power
3. Identify the one which is not Hygiene factor
A. Recognition
B. Working condition
C. Job security
D. Interpersonal relationship
4. A base of departmentalization in which unity of command is violated is:
A. Functional
B. Product
C. Process
D. Matrix
5. One of the following is not a single use plan
A. Procedure
B. Project
C. Program
D. Budget
6. Which one of the following is not characteristic of effective control system?
A. Timely
B. Reliable
C. Multi-dimensional
D. Partial
7. Kenenisa Bekele is a famous athlete in the world and broke many records of others and his owns.
Which one of the following is most likely to be possessed by Kenenisa in Athletics?
A. Expert power
B. Referent power
C. Legitimate power
D. Reward power
8. Choose the hierarchy of human needs according to their descending order
A. self-actualization, esteem needs, social needs, safety needs, physiological needs
B. Physiological needs, safety needs, social needs, esteem needs, self-actualization
C. Physiological needs, social needs, safety needs, esteem needs, self-actualization
D. Self-actualization, esteem needs, safety needs, social needs, physiological needs
9. What is one of the elements of the marketing mix that produces revenue?
A. Price
 B. Product
C. Place
D. Promotion
10. Which pricing strategies use the buyer perception rather than seller’s cost?
A. Cost based pricing
B. Customers Value-Based Pricing
C. Competitors based pricing
D. Dynamic pricing
11. All are Marketing Strategies during Introduction Stage Except
A. Market Modification
B. Rapid skimming
C. Rapid penetration
D. Slow skimming
12. All distribution channel for a certain product Except
A. Retailer
B. Producer
C. Consumer
D. Competitors
13. Which one is different?
A. Zero level channel
B. direct channels
C. Producer to consumer
D. Indirect channel
14. The most important reason behind the utilization of market segmentation is
A. Market heterogeneity
B. Positioning
C. Test marketing
D. Product life cycle
15. Marketing’s main objective is:
A. Satisfying the business, regardless of what the consumer needs
B. Satisfying the business and governmental policies
C. Satisfying the needs and wants of consumers
D. Satisfying the needs of the government
16. What does it mean to reach global markets?
A. To expand to new regions within a country
B. To expand to new countries around the world
C. To focus on international marketing only
D. To focus on domestic marketing only
17. What is international marketing?
A. The process of selling products or services in multiple countries to multiple customers.
B. The process of selling products or services in one country to multiple customers.
C. The process of selling products or services in one country to one customer.
D. All
18. Which of the following is not a benefit of international marketing?
A. Diversification of revenue.
B. Access to new markets.
C. Increased competition.
D. None
19. Which of the following is not a challenge of international marketing?
A. Cultural differences.
B. Legal and regulatory differences.
C. Homogeneity of consumer needs.
 D. None
20. Which of the following is a strategy for entering a foreign market?
A. Exporting.
B. Merging.
C. Competing.
D. Partnership
21. Which of the following is not a mode of market entry for international marketing?
A. Licensing.
B. Franchising.
C. Distributing
D. Exporting
22. Which of the following is not a consideration when developing international marketing
strategies?
A. Standardization.
B. Localization.
C. Domination.
D. All
Theme 2 Human Resource and Organizational Behavior

1. Which one of the following is correct combination about stages in process of collective
bargaining?
A. Preparation-initial demand-continuing negotiation-settlement and contract agreement
B. Initial demand-preparation-settlement and contact agreement-continuing negotiation
C. Settlement and contract agreement-preparation-initial demand-continuing negotiation
D. Continuing negotiation-preparation-initial demand-settlement and contract agreement
2. _______ is a type of promotion results in greater responsibility, prestige and pay, together with
a change in the nature of the job.
A. Horizontal promotion
B. Vertical promotion
C. Dry promotion
D. All
3. ____________ is intended to avoid imminent lay-offs, particularly, of senior employees.
A. Remedial transfer
B. Shift transfer
C. Replacement transfer
D. Versatility transfer
4. One of the following is not included in the internal environmental factor?
A. The Labor Force
B. Legal Considerations
C. Shareholders
D. All
E. none
5. Which of the following is external source of recruitment is done through informal and operated
by word of mouth, or they may be structured with definite guidelines:
A. Campus recruitment
B. Employee referrals
C. Advertisements
D. none
6. The Last step in delegation of Authority process is
A. Assignment of task
B. Delegation of authority
 C. Acceptance of responsibility
D. Creation of Accountability
7. The grouping of activities in retail stores such as men’s clothing ,women’s clothing and
children’s clothing is
A. Departmentation by product
B. Departmentation by customer
C. Departmentation by process
D. Departmentation by function
8. Moving an employee from to a higher level position based on his /her best performance best
explains
A. Demotion
B. Promotion
C. Transferring
D. Lateral promotion
9. The type of leadership styles decision making is solely by manager includes:
A. Democratic leadership styles
B. Autocratic leadership styles
C. Laissez faire leadership style
D. Situational leadership style
10. The theories of motivation related to the use of rewards and punishments as best motivating
factors regarded as.
A. Carrot and stick approach
B. Theory X and theory Y
C. Maslow’s need hierarchy
D. Both A and C
11. Identify the one which is not Hygiene factor
A. Recognition
B. Working condition
C. Job security
D. Interpersonal relationship
12. _______the type of control designed to detect and anticipate deviation from standard at various
points throughout the process
A. Feed forward control
B. Concurrent control
C. Feedback control
D. Output control
13. All of the following is true about Maslow’s Need hierarchy theory except
A. Only an unsatisfied need can influence behavior
B. A person’s need are arranged in a priority order of importance
C. This theory assumes that unless a lower-level need is satisfied an individual cannot proceed
to the higher-level need
D. This theory argues that an individual can work on higher level need even if his/her
basic/lower-level need remain unsatisfied
14. _______a type of formal communication used to supply information to upper levels about what is
happening at lower levels
A. Upward communication
B. Downward communication
C. Horizontal communication
D. Diagonal communication
15. Which type of leadership style is preferable in organizations with highly skilled and well-trained
employees/ subordinates
A. Laissez faire leadership style
 B. Autocratic leadership style
C. Democratic leadership style
D. Situational leadership style
16. The process of searching for prospective employees and stimulating them to apply for the
jobs in the organization refers:
A. Human resource forecasting
B. Human resource Planning
C. Recruitment
D. Scouting
17. Task-oriented leaders are characterized by
A. Empowerment
B. Supporting the followers
C. Coercion
D. Delegating authority
18. Which type of organizational culture places a strong emphasis on stability, rules, and efficiency?
A. Adhocracy culture
B. Clan culture
C. Hierarchy culture
D. Market culture
19. Which type of conflict arises from differences in goals, values, or beliefs?
A. Interpersonal conflict
B. Intrapersonal conflict
C. Intergroup conflict
D. Intragroup conflict
20. Which type of negotiation strategy involves assertively pursuing one's own goals while also
considering the needs of the other party?
A. Competitive strategy
B. Collaborative strategy
C. Avoidance strategy
D. Compromise strategy
21. Which of the following is a factor that affects individual motivation in the workplace?
A. Organizational structure
B. Social media usage
C. Technological advancements
D. Employee benefits
Theme 3 Innovation, Strategy and Project Management

1. Which project management technique involves breaking down a project into smaller, manageable
tasks?
A. Critical path method
B. Work breakdown structure
C. Gantt chart
D. Risk analysis
2. Which of the following is a component of the PESTEL framework used for environmental
analysis?
A. Internal factors
B. Technological factors
C. Competitive factors
D. Financial factors
3. Which of the following is NOT a step in the recruitment and selection process?
A. Job posting
 B. Job evaluation
C. Job offer
D. Job analysis
4. Which financial ratio measures a company's ability to generate profits from its assets?
A. Return on Investment (ROI)
B. Current ratio
C. Debt-to-equity ratio
D. Gross profit margin
5. Which of the following is an example of a qualitative performance appraisal method?
A. Ranking method
B. Critical incident method
C. Forced distribution method
D. Management by objectives
6. Which ethical principle suggests that individuals should act in a way that treats others with
fairness and impartiality?
A. Justice
B. Respect for autonomy
C. Non-maleficence
D. Beneficence
7. Which type of innovation involves making incremental improvements to existing products or
processes?
A. Radical innovation
B. Disruptive innovation
C. Breakthrough innovation
D. Continuous innovation
8. Which type of marketing strategy targets a specific segment of the market with a specialized
product or service?
A. Differentiation strategy
B. Cost leadership strategy
C. Niche marketing strategy
D. Market penetration strategy
9. Which of the following is NOT a step in the strategic management process?
A. Environmental scanning
B. Strategy implementation
C. Performance evaluation
D. Task delegation
10. One of the following is a kinds of defensive strategies
A. Market development
B. Concentric Diversification
C. Divestiture
D. Conglomerate
11. Two reasons for mergers and acquisitions are
A. To increase managerial staff and to minimize economies of scale.
B. To reduce tax obligations and increase managerial staff.
C. To create seasonal trends in sales and to make better use of a new sales force.
D. To provide improved capacity utilization and to gain new technology.
12. The first component of the strategic management process is:
A. Coming up with a damage control plan
B. Analyzing the macro environment
C. Determining the firm's employee turnover rate
D. Crafting the organization’s mission statement
13. Company’s weakness can be characterized by one of the following
 A. Strong brand names
B. Good reputation among customers
C. Favorable access to distribution networks
D. Lack of patent protection
14. In one of the following strategies, decisions are taken by the senior executive officer and the CEO
in conjunction with the board of directors
A. Business Strategy
B. Corporate Strategy
C. Functional Strategy
D. Shared values
15. One of the following Strategy is concerned about Adding new, unrelated products or services
A. Market penetration
B. Backward Integration
C. Retrenchment
D. Conglomerate Diversification
16. Business practices always considered unethical if they
A. Give opportunities for women
B. Have Service safety
C. Harm to the environment
D. Better recruitment
17. The means by which long-term objectives will be achieved
A. Strategies
B. Objectives
C. Annual objectives
D. Strategist
18. The following are the basic reasons for project failure except
A. Poor project planning and preparation
B. Delay in implementation
C. Cost and time over runs
D. Excess of raw materials
E. Shortage of skilled manpower
19. Which of the following is not the discounted cash flow criterion for appraising the worth of an
investment?
A. Net Present Value
B. Internal Rate of Return
C. Pay Back Period
D. Profitability index
E. None of the above
20. Which of the following is not considered to be a character of a project?
A. An established objective
B. A clear beginning and end date
C. Specific time, cost, and performance requirement
D. Something never been done before
E. For internal use only
21. In the _________________ stage of project life cycle a major portion of the physical work
performed.
A. Identifying
B. Defining
C. Planning
D. Executing
E. Closing
22. One of the following is not included in the stages of project cycle according to the World Bank
 A. Project preparation
B. Project appraisal
C. Project evaluation
D. None of the above
Theme 4 Managerial Statistics and Business Research

1. The local police department must write, on average, 5 tickets a day to keep department
revenues at budgeted level. Suppose the number of tickets written per day follows a
Poisson distribution with a mean of 7 tickets per day. What is the probability that exactly
5 tickets are written on a randomly selected day?
A. 0.109 B. 0.146 C. 0.137 D. 0.149 E. 0.128
2. The variance can never be:
A. Zero. B. Negative. C. larger than the standard deviation D. Positive
3. The mean of ten numbers is 58. If one of the numbers is 40, what is the mean of the other
nine?
A. 540. B. 60. C. 18. D. 162
4. The average yearly income of employees who work in the banking industry is estimated
to be 250,000. This is an example of -------
A. Descriptive statistics
B. Inferential statistics
C. Both descriptive and inferential statistics
D. Neither descriptive nor inferential statistics
5. Student scores on the first statistics test is an example of ---------------level of
measurement.
A. Nominal
B. Ordinal
C. Interval
D. Ratio
6. -------------is a graph of a cumulative frequency distribution.
A. Ogive
B. Frequency polygon
C. Histogram
D. Line graph
7. If the population of interest has a predetermined pattern, the sampling method that will not be
applied is:
B. Simple random sampling
C. Stratified random sampling
D. Systematic random sampling
E. Cluster sampling
8. All of the following conditions necessitates sample except:
A. Saving of time
B. saving of money
C. Destructive nature of certain tests
D. None of the above
9. Mr. Kasu wants to conduct a study in a heterogeneous sub-group of population. The
appropriate technique for him to select sample would be:
A. Simple random sampling
 B. Cluster random sampling
C. Systematic random sampling
D. Stratified random sampling
10. A population consists of the following ages: 10, 20, 30, and 40. A random sample of two is to
be selected from this population without replacement. How many samples of size 2 are
possible?
A. 16 B. 4 C. 6 D. 24
11. In the above question number “4” the mean of all sample means is:
A. 37.5 B. 25 C. 150 D.75
12. If the population mean is 1247 and the population standard deviation is 100, and the sample
size is 100. What is the probability that the sample mean will be greater than 1230?
A. 4.46%
B. 45.54%
C. 95.54%
D. 54.46%
13. A type I error is committed if we:
A. Reject a true null hypothesis
B. Accept a true alternate hypothesis
C. Reject a true alternate hypothesis
D. Accept both the null and alternate hypotheses at the same time
14. The boundaries of a confidence interval are called:
A. Confidence levels
B. The test statistics
C. The degrees of confidence
D. The confidence limits
15. Which one is non-probability sampling method?
A. Quota sampling
B. Cluster sampling
C. Stratified Sampling
D. None of the Above
Theme 5 Management Science and Financial Management
1. In making a capacity planning decision, an operation manager must focus on the following except?
A. Identify the levels of capacity needed by the company now and in the future.
B. Develop alternative ways to modify its capacity
C. Identify factors affecting capacity requirement
D. Identify the products to be manufactured
2. The design capacity for engine repair in the company is 80 trucks per day. The effective capacity is 40
engines per day and the actual output is 36 engines per day. Calculate the utilization.
A. 90%
B. 45%
C. 10%
D. 55%
3. If the efficiency for next month is expected to be 82%, what is the expected output? Refer the above
question.
A. 23.2 engines per day
B. 32.8 engines per day
C. 45 engines per day
D. 90 engines per day
4. In a warehouse location decision, the main objective is:
A. Minimization of cost and speed of delivery.

GOOD LUCK!
 B. Maximization of revenue
C. Minimization of cost
D. Speed of delivery
5. Why firms locate their business near to suppliers except?
A. Perishability
B. Transportation costs
C. Bulk of products
D. Revenue concern
6. In a process layout;
A. Resources used are specialized
B. Facilities are less labor intensive
C. Facilities are more labor intensive
D. Resources have greater rigid
7. What is/are not the goal of assembly line balancing?
A. Obtain task groupings that represent approximately equal time requirements.
B. Minimizing the idle time along the line
C. Increasing the number of work station
D. Utilizing workstation in more effective and efficient manner
8. The MS car is to be assembled on a conveyor belt. Five hundred cars are required per day. Production
time per day is 8 hours. Calculate cycle time?
A. 96%
B. 96 Birr
C. 0.96 minutes
D. 4%
9. Is true about product layout?
A. Used by companies that have repetitive processing systems
B. Layouts that group resources based on similar processes or functions
C. The products are moved from one resource to another, based on their unique needs.
D. Process layouts are very common in universities
10. If the production planner designed a plan to exactly match the forecast of demand, the strategy used is
called?
A. Level production strategy
B. Chase production strategy
C. Stable production strategy
D. Back-order strategy
11. Is false about aggregate planning and master scheduling?
A. Aggregate planning links long-range and short-range planning activities
B. Master scheduling follows aggregate planning and expresses the overall plan in terms of the
amounts of specific end items
C. Aggregate planning follows master scheduling and expresses the overall plan in terms of the
amounts of specific end items
D. Aggregate planning is the process of planning the quantity and timing of output over the
intermediate range (often 3 to 18 months)
12. Which philosophy of TQM concerned with continually striving to be better through learning and
problem solving?
A. Customer focus
B. Continuous improvement
C. Employee empowerment
D. Process focus
13. A decision for replacing machines with modern machinery of high production capacity is a:
A. Investment decision C. Financing decision
B. Dividend decision D. Liquidity management decision
14. In the long run financial analysis of financial statements the stress is on the firms:

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 A. Liquidity position C. Solvency condition
B. Profitability position D. Growth situation
15. Which one of the following statement is not true?
A. A birr received today is worth less than a birr received tomorrow.
B. A birr received tomorrow is worth less than a birr received today.
C. A birr received today is worth more than a birr received tomorrow.
D. The time value of money is refers to what the value of the stream of future cash flow is today.
16. The net present value(NPV) rule can be best stated as:
A. An investment should be accepted if, and only if, the NPV is exactly equal to zero
B. An investment should be rejected if the NPV is positive and accepted if it is negative.
C. An investment should be accepted if the NPV is positive and rejected if it is negative.
D. An investment with greater cash inflows than cash outflows regardless of when the cash flow
occurs will always have a positive NPV and therefore should always be accepted.
17. The first step in solving Operations Research problem is:
A. Model building C. Obtain alternate solutions
B. Formulation of the problem D. Obtain basic feasible solutions
18. The constraints of Maximization problem are of:
A. Greater than or equal type C. Less than type
B. Less than or equal type D. Greater than type
19. The slack variables indicate:
A. Excess resource available C. Nil resources
B. Shortage of resource available D. Idle resource
20. A specific results that an organization seeks to achieve in pursuing its basic mission
A. Objectives
B. Policies
C. Vision
D. Values

GOOD LUCK!
 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. D 2. A 3. A 4. D 5. A 6. D
7. B 8. A 9. A 10. B 11. A 12. D
13. A 14. A 15. C 16. B 17. A 18. C
19. C 20. A 21. C 22. C
Human Resource and Organizational Behavior
1. A 2. A 3. A 4. B 5. B 6. D
7. B 8. B 9. B 10. A 11. A 12. B
13. D 14. A 15. A 16. C 17. B 18. C
19. C 20. A 21. B
Innovation, Strategy and Project Management
1. B 2. C 3. B 4. A 5. D 6. A
7. D 8. C 9. D 10. C 11. D 12. D
13. D 14. B 15. D 16. C 17. A 18. D
19. D 20. E 21. D 22. D
Managerial Statistics and Business Research
1. E 2. B 3. B 4. B 5. D 6. A
7. D 8. D 9. B 10. C 11. B 12. C
13. A 14. A 15. A
Management Science and Financial Management
1. D 2. B 3. B 4. A 5. D 6. C
7. C 8. C 9. A 10. B 11. C 12. A
13. A 14. C 15. A 16. C 17. B 18. B
19. D 20. A

GOOD LUCK!