Paper 20: STRATEGIC PERFORMANCE MANAGEMENT AND BUSINESS
VALUATION (SPBV)
Time Allowed: 3 Hours Full Marks: 100
There are Sections A, B, C and D to be answered subject to instructions given against each.
Section A 20 X 1
You are required to answer all the questions. Each question carries 1 mark. = 20
Instructions: Each question is followed by 4 Answer choices and only one is correct. You are required to Marks
select the choice which according to you represents the correct answer.
1.
a. Which of the following is not an accounting technique to analysis financial performance?
(i) Ratio analysis
(ii) Time series analysis.
(iii) Trend analysis
(iv) Common-size financial analysis
b. Which of the following is not a component of supply chain management?
(i) Plan
(ii) Organize
(iii) Deliver
(iv) Return
c. The Balanced Scorecard is about ___________ .
(i) Creating the Vision, Communicating and Linking, Business Planning and Target Setting,
Feedback and Learning;
(ii) Translating the Vision, Communicating and Linking, Business Planning and Target
Setting, Feedback and Learning;
(iii) Translating the Vision, Coordinating, Business Planning and Target Setting, Feedback
and Learning;
(iv) Creating the Vision, Communicating and Linking, Business Planning and Target Setting,
Feedback and Learning.
d. Which of the following is not a model associated with Duopoly?
(i) Dual model
(ii) Cournot’s solution
(iii) Edgeworth model
(iv) Chamberlin’s model
e. Which of the following is not true for a perfectly competitive firm?
(i) The firm can earn only normal profit in the short run.
(ii) The firm can earn super normal profit in the short run
(iii) The firm can suffer from a loss in the short run.
(iv) The firm can earn only normal profit in the long run.
, !
f. The six sigma DMAIC process consist of _______________________ .
(i) define, measure, analyze, improve, control;
(ii) define, manage, analyze, improve, control;
(iii) define, measure, analyze, improve, co-ordination;
(iv) deliver, measure, analyze, improve, control.
g. Which of the following risks can be reduced by diversification?
(i) Purchasing power risk
(ii) Interest rate risk
(iii) Firm specific risk
(iv) Economy specific risk
h. Which of the following is not a part of Basel III?
(i) Minimum capital requirements
(ii) Supervisory review process
(iii) Market discipline
(iv) Risk elimination
i. The cost function of a firm is given by c = x3 - 4x² + 7x, find at what level of output Average Cost is
minimum and what level will it be?
(i) 2,3
(ii) 3,4
(iii) 4,2
(iv) 1,1
j. Who amongst the following prompted the phrases, “Zero Defects” and “Rights First Time”?
(i) Bill Smith
(ii) Henry Ford
(iii) Philip Crosby
(iv) Henri Fayol
k. Which of the following is not a risk management technique?
(i) Risk avoidance
(ii) Risk maximization
(iii) Risk sharing
(iv) Risk bearing
l. Which of the one is not the principles of Valuation?
(i) Principles of Substitution
(ii) Principle of Time Value of Money
(iii) Principle of Risk & Return
(iv) Discounted cash flow Valuation
m. Which measure of value tells whether a company is able to generate returns that exceed the
costs of capital employed?
(i) Cost of Capital
(ii) Economic Value Added
(iii) Market Value Added
(iv) Financial Profit
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