This Paper has 47 answerable questions with 0 answered.
F—P13(MSM)
Syllabus 2008 |
| Time Allowed : 3 Hours | Full Marks : 100 |
| The figures in the margin on the right side indicate full marks. |
Answer Question Nos. 1 and 6, which are compulsory and any other two
from Section I and any other two from section II. |
| SECTION I (60 Marks) |
| Marks |
| 1. | (a) | Choose the most appropriate one from the stated options and write it down: | 1x5 | |
| | | (i) | The reason for failure of Strategic Management may be ascribed to | A. | Over–estimation of resource competence | | B. | Failure to obtain senior management commitment | | C. | Failure to obtain employee commitment. | | D. | All of the above. |
| | (0) |
| | | (ii) | The growing predominance of the shareholder wealth culture is largely a consequence of | A. | Manipulation of stock markets through different means | | B. | Globalisation and deregulation of capital markets | | C. | Improving attractiveness of companies to global investors | | D. | Value based management with emphasis on corporate governance |
| | (0) |
| | | (iii) | Corporate Social Responsibility implies | A. | The continuing commitment by business to behave ethically | | B. | Fulfilling all legal expectations | | C. | Fulfilling responsibility towards customers, employees, shareholders and the community at large | | D. | None of the above. |
| | (0) |
| | | (iv) | A Simulation Model is normally used | A. | When an organisation has to take interrelated decisions | | B. | As a method for interpreting a company’s performance | | C. | In developing a relationship between prices, cost and volume of business | | D. | To arrive at a relationship between input and output |
| | (0) |
| | | (v) | Blue Ocean Strategy is concerned with | A. | Moving into new market with new products | | B. | Creating a new market place where there is no competition | | C. | Development of products and markets in order to ensure survival | | D. | Making the product unique in terms of attributes |
| | (0) |
| | (b) | State whether the following statements are ‘True’ or ‘False’: | 1x5 | |
| | | (i) | Business Process Reengineering is an important ingredient of Reverse Engineering. | | (0) |
| | | (ii) | Strategic surveillance is resorted to ward off potential threats, internal or external. | | (0) |
| | | (iii) | Synergy signifies a condition where the whole is greater than the sum of its parts. | | (0) |
| | | (iv) | ‘White Knight Strategy’ is a part of the strategy of hostile take–over. | | (0) |
| | | (v) | Brand equity is the added value to the shares held by the equity shareholders of a company. | | (0) |
| | (c) | Define the following terms (in not more than two sentences): | 2x5 | |
| | | (i) | EVA, | | (0) |
| | | (ii) | Cost of Capital | | (0) |
| | | (iii) | Balanced Scorecard | | (0) |
| | | (iv) | Portfolio Planning | | (0) |
| | | (v) | Value Engineering. | | (0) |
| 2. | (a) | Define a Mission Statement of an organisation. What are its contents? Identify the steps for developing the mission statement for an organisation. | 2+3+4 | (0) |
| | (b) | Benchmarking exercise is based on "best exercise" and not on "best performances". Explain. Also state briefly the important benchmarking processes used in strategy implementation. | 3+8 | (0) |
| 3. | (a) | Explain how the uses of different Forecasting Models assist in taking management decisions. What are the various criteria used in selecting a forecasting method? | 10+5 | (0) |
| | (b) | Describe e–business as defined in July Strauss and Raymond Frost’s E–marketing model. | 5 | (0) |
| 4. | (a) | Explain the term "Strategic Cost Management." | 5 | (0) |
| | (b) | ‘In the context of business strategies the management accountant plays the role of a change agent’. Elucidate the statement bringing out the management accountant’s contribution at each stage of the strategy building exercise in an organisation. | 10 | (0) |
| | (c) | Explain the relationship of synergy with strategic realignment in the context of merger. | 5 | (0) |
| 5. | Write short notes on the following: | 4x5 | |
| | (a) | Audit Committee, | | (0) |
| | (b) | Strategic Outsourcing, | | (0) |
| | (c) | Five ways of Brand Valuation, | | (0) |
| | (d) | Public–Private Partnership. | | (0) |
| 6. | (a) | Choose the most appropriate one from the stated options: | 1x5 | |
| | | (i) | Life Insurance do not include | A. | Whole life | | B. | Pension | | C. | Accident | | D. | Endowment | | E. | Motor Vehicle |
| | (0) |
| | | (ii) | Types of risks do not include | A. | Business risks | | B. | Market risks | | C. | Interest rate risks | | D. | Default risks | | E. | Uncertainty |
| | (0) |
| | | (iii) | Insurance is not | A. | A contract of Uberrimae Fidei | | B. | A contract based on insurable interest | | C. | A contract of indemnity | | D. | A contract of guarantee | | E. | A cover for risk |
| | (0) |
| | | (iv) | Unsystematic risk relates to | A. | Market risk | | B. | Beta | | C. | Inherent risk | | D. | Interest rate risk | | E. | Inflation risk |
| | (0) |
| | | (v) | Commercial insurance do not include | A. | Jewellers’ block policy | | B. | Bankers’ indemnity policy | | C. | Shop Keepers’ policy | | D. Marine cargo policy | | E. | Endowment policy |
| | (0) |
| | (b) | State whether the following statements are ‘True’ or ‘False’ | 1x5 | |
| | | (i) | Measures relating to risk profiling are related to the level of operational efficiency of the company. | | (0) |
| | | (ii) | Capital Asset Pricing Model attempts to measure the risk for capital assets of a company. | | (0) |
| | | (iii) | Risk management techniques include among other things the risk premium payable. | | (0) |
| | | (iv) | Risk cannot be avoided through insurance but may be considered as a mean to transfer the risk. | | (0) |
| | | (v) | The concept of certainty equivalent coefficient represents the computation of a certain amount equivalent to a probable income or loss. | | (0) |
| 7. | (a) | "To be effective, any Enterprise Risk Management (ERM) implementation should be integrated with strategy setting". Do you agree? Give your views bringing out the basic elements of ERM and the reasons why ERM is implemented. | 3+4+3 | (0) |
| | (b) | Write a brief note on the functioning of IRDA. | 5 | (0) |
| 8. | (a) | Why is Risk Reporting considered to be an important step in Risk Management? What are the broad categories of risks that can be identified for an organisation? | 5+2 | (0) |
| | (b) | Describe the following in the context of risk management: | 4+4 | |
| | | (i) | Solvency related measures. | | (0) |
| | | (ii) | Performance related measures. | | (0) |
| 9. | (a) | Explain management accountant’s role in insurance risk management. | 5 | (0) |
| | (b) | Enumerate the characteristics of an insurance contract. | 5 | (0) |
| | (c) | State briefly your understanding about RAPM. | 5 | (0) |
| 10. | Write short notes on: | 5x3 | |
| | (a) | Exposures relating to Agro and Bio Liabilities, | | (0) |
| | (b) | Diversification of risk, | | (0) |
| | (c) | Project Risk Management. | | (0) |
