MGT601 Midterm Past Paper

Rana Abubakar Khan

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JOIN FB GROUP FOR VU HELP · MID TERM SUBJECTIVE QUESTION · OF · SME MANAGEMENT (MGT601) · SOLVED · Q* technical feasibility(3) · 1. Technical Feasibility · It covers the following:

a) Identification of critical technical specifications comprising

a. The functional design of the product.

b. Adaptability to the new customer demand.

c. Durability

d. Reliability of performance.

e. Safety · f. · Reasonable utility (i.e. acceptable level of obsolescence)

g. Standardization (i.e. elimination of unnecessary variety)

Q* you are a manger of fan company , ur sales volume is low, how do you improve ur sales volume(5)

Answer: _

1) improvement of product

2) marketing

3) ads in newz papers and professional journals, tv advertisemrnt

4) free samples with ur product · 5) low pricesss · Q* market myopia (5) ANS:Market Myopia:-

A shortsighted approach of concentrating on production rather than on marketability could lead to avoidable disaster. An entrepreneur may fail to properly assess the market acceptability of his product. He may not appreciate that no product can become instantaneously profitable or could have an endurable success. Selection of the right time for introducing the product is important for its success. If actions are taken too soon or too late, it will result in failure.

Q* Environment post operative problems(5 marks) ANS_

• Environmental Causes:

o Changes in government policy; o Changes in social or political conditions; o Inflationary pressures leading to increases in the input cost.

Q* The benefits that SME enjoy in environmental issues(5 marks)

1) effectiveness of the technology · 2) stabilization · 3) capabilities to manage · 4) generate · 5) technological change · The benifits that SME not enjoy(2 marks) ANS:- · 1) ineffectively exploit available technology options · 2) inefficiently utilize the transferred technologies

PAPER # 3:- Q* “A drain having polluted water from one factory may be used to some other industry and suffer bad effects of pollution” This is an example of ‘externality’ what do you understand by term “externality”? Do you think externalities are positive or negative or both. Explain with examples. (3 marks)

Definition: An externality is an effect of a purchase or use decision by one set of parties on others who did not have a choice and whose interests were not taken into account. Classic example of a negative externality: pollution, generated by some productive enterprise, and affecting others who had no choice and were probably not taken nto account.

Example of a positive externality: Purchase a car of a certain model increases demand and thus availability for mechanics who know that kind of car, which improves the situation for others owning that model.

Q* When you plan a new business, you create a contingency fund to guard against unforeseen natural calamities. Write different natural calamities that are constant threat for your business. 3 marks