Maseno University BBA/IT Exam Papers 2011/2012 ABA 405.pdf

This document contains a collection of Fourth Year, First and Second Semester Examination Questions from Maseno University (City and Main Campuses) for the Bachelor of Business Administration (BBA) with Information Technology program, held during the 2011/2012 academic year.
​The papers include questions from the following units:
​ABA 405: Strategic Management (Page 1-2)
​ABA 406: Management of Financial Services (Page 3-4)
​ABA 407: Insurance Theory and Practice (Page 5)
​ABA 408: International Business Management (Page 7-8)
​ABA 413: Entrepreneurship and Small Scale Business Management (Page 9-10)
​This resource is useful for students preparing for examinations in Strategic Management, Financial Services, Insurance, International Business, and Entrepreneurship.
​20 Tags
​Maseno University
​Exam Papers
​BBA
​Business Administration
​Strategic Management
​Financial Services
​Entrepreneurship
​International Business
​Insurance Theory
​Operational Control
​Strategic Control
​BCG Matrix
​Organizational Strategy
​Financial Services Management
​Merchant Banks
​Commercial Paper
​Lease Financing
​International Business Management
​Small Scale Business
​University Examinations

1. QUESTION 6

a) Explain the differences between
1. Premise Control
il. Implementation Control
il. Strategic Surveillance
Iv. Special Alert Control
Highlighting atleast two factors under each that need to be monitored (12 marks)
b) i. Distinguish between Strategic Control and Operational Control
(2 1/2marks)
fi, List the four steps which must be taken for effective operational
control to take place (2marks)

ii, Describe three types of Operational Control Systems (7 1/2 marks)

sen,

MASENO UNIVERSITY

UNIVERSITY EXAMINATIONS 2011/2012

FOURTH YEAR FIRST SEMESTER EXAMINATIONS FOR
THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION WITH INFORMATION
TECHNOLOGY
(CITY CAMPUS)

ABA 405: STRATEGIC MANAGEMENT

Date: 16" April, 2012 Time:_530~7.30pm.

INSTRUCTIONS:

+ Attempt ANY FOUR questions.

2. QUESTION 1

a) Briefly outline the historical development of Strategic Management as à
discipline (marks)

b) Strategic Management can be defined as “a continuous, iterative process
aimed at keeping an organization as a whole appropriately matched to its
environment”. Using this definition, discuss the nature of strategic
management (10marks)

e) Certain person(s) within an organization's system are directly involved in
strategic management. Identify and briefly discuss each (1Omarks)

QUESTION 2

a) When formulating organizational strategy, several general strategic
alternatives exist for managers to choose from. Amongst these are the
growth strategies which may be pursued through different approaches.
Outline each of these approaches detailing all variants of each (20marks)

b) What are some of the constraints likely to face a manager involved in
strategy formulation (Smarks)

QUESTION 3

Strategists do meet challenges In their bid to formulate consistent strategies for
large diversified companies. To overcome this, business portfolio models were
developed. One of the more common ones isthe BCG Matrix.

a) Explain the general concepts of the BCG Matrix (11marks)

b) Outline the four basic strategies that can be formulated out of the BCG
Matrix application (marks)

©) Some criticisms have been leveled against the application of the BCG model
in strategy formulation. Highlight some four of these (Smarks)

2irase

QUESTION 4

a) Differentiate between organizational goals and objectives (2marks)

b) In the process of setting organizational objectives, one must achieve
balance amongst the objectives. Explain how you would achieve this
balance (7% marks)

+) In formulating business strategies, Michael Porter's Structural Analysis of
Competitive Forces becomes very handy. Briefly discuss this framework
(t0maris)

4) Explain the three generic strategies that arse out of the framework in ©
above (5% marks)

QUESTIONS

Institutionalization of an organization's strategy is fundamental for its successful
implementation, Three elements provide the long-term means for achieving this
viz Structure, Leadership and Culture.

a) Define the three terms (3marks)

b) Two critical issues affect the leadership role in strategy implementation.
Discuss each of them with respect to strategy implementation (11marks)

(©) Distinguish between important assumptions and shared assumptions with
reference to an organization's culture (3marks)

4) Discuss the effects of culture on strategy implementation and how you
‘would manage it in a strategy implementation process (8marks)

SiPage

3. Canning, which is financed entirely with qui the fm expects its
financial leverage o be reduced and its costo capital to drop to 11%. The
acquisition of Valley Canning is expected to increase Luxe cash inflows by
$20 000 per year forthe first three years and by $30 000 per year for the
following 12 years.

Required:

Determine whether he proposed Cash Acquisitions desirable, Clearly

explain your answer, (8 marks)

QUESTION FIVE
3) Explain how Merchant Banks undertake the following Financial Services
i. Portílio Management
ü. Issue Management
ii, Credit Syndication
iv. Venture Capital Financing
¥. Corporate Counseling (10 marks)
1) Discuss the merits and demerits of the use of debentures toa Company as a

source of finance. (10 marks)

MASENO UNIVERSITY

UNIVERSITY EXAMINATIONS 2011/2012

FOURTH YEAR FIRST SEMESTER EXAMINATIONS FOR
THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION WITH INFORMATION
TECHNOLOGY
(CITY CAMPUS - EVENING)

ABA 406: MANAGEMENT OF FINANCIAL
SERVICES

Dates 19* April 2012 Time: 530-730 pm.

INSTRUCTIONS:

+ This paper consists of FIVE questions,

+ Answer QUESTION ONE (COMPULSORY) and any OTHER TWO
questions.

+ Question one carries 30 marks and the rest 20 marks each.

+ Do NOT answer more than three questions.

4. QUESTION ONE (COMPULSORY)
2) Management of Financial Services has greatly broadened in scope beyond
the traditional activities to encompass ‘New Financial Products and
Services’ with most of them being in the form of non-fund based activities.
Explain any five such modem activities that have been developed in the
Financial Services Sector. (15 marks)
») Discuss any five characteristics and Features of Financial Services
(15 marks)
QUESTION TWO
4) Explain how the following services are used to provide short-term funds to
business firms:
1. Solliquidating bank loans
fi, Commercial Paper
fl. Line of CreditCredit Card

iv. Single-payment Notes (12 marks)

b) Commercial paper is usually soldat a discount. Fan Corporation has just
sold an issue of 90-day commercial paper with a face value of $1 million.
“The firm has received initial proceeds 0f$ 978 000 (assume a 365-day

year)

à. What Effective Annual Rate (EAR) will he firm pay for financing
with commercial paper assuming hat is olled over every 90 days
throughout the year? (A mans)

fi. ¡Fa brokerage fe of $9612 was paid from the initial procedsto an
investment banker for sing the issue, what FAR will he frm payo
assuming hat the paper rolled over every 90 days throughout the

year? (4 marks)

QUESTION THREE,
4) “Lease Financing can be a major source of funding for firms in Kenya, its
limitations notwithstanding’. Discuss how this financial service can be used
in the light of the Kenyan business environment. (14 marks)
$) Differentiate between Operating Lease and Financial Lease.
(6 marks)
QUESTION FOUR
à) Evaluate the motives often advanced by management of corporate firms to

justify mergers. (12 marks)

$) Luxe Foods is contemplating acquisition of Valley Canning Company for a
cash price of $180 000. Luxe currently has high financial leverage and

therefore has a cost of capital of 14%. As a result of acquiring Valley

5. MASENO UNIVERSITY

UNIVERSITY EXAMINATIONS 2011/2012

FOURTH YEAR FIRST SEMESTER EXAMINATIONS FOR
THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION WITH INFORMATION
TECHNOLOGY
(CITY CAMPUS)

ABA 407: INSURANCE THEORY AND PRACTICE

Date: 23% April, 2012 _ Time: 5.30~ 7.30 pam. |

INSTRUCTIONS:

+ Answer QUESTION ONE and any other TWO questions.
+ Question one carries 30 marks and the rest 20 marks each,
+ Do not write on a question paper.

7. MASENO UNIVERSITY

UNIVERSITY EXAMINATIONS 2011/2012

FOURTH YEAR SECOND SEMESTER EXAMINATIONS
FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION WITH INFORMATION
TECHNOLOGY
(MAIN CAMPUS)

ABA 408: INTERNATIONAL BUSINESS
MANAGEMENT.

Date: 11" April 2012 Time: 9.00 ~ 11.

INSTRUCTIONS:

+ Answer QUESTION ONE and any other TWO questions.
+ Question one carries 30 marks and the rest 20 marks each.

8. QUESTION 1

LE Heller in desribing who should be an international manager sai, “Ideally it seems he
or she should have the stamina of an Olympic runner, the mental agility ofan Einstein, the
conversational skill of professor of languages, the detachment of a judge, the tact of
Aliplomat and the perseverance of an Egyptian Pyramid builder ...........and should also
be able to merge with locals and local government with chameleon- like ease…"In light of
this statement explain the criteria for choosing an overseas manager. (10 mks)

1) Examine FOREX as a critical finance issues an International Business Manager is
likely o be dealing with on day today basis. (1Omks)

©) Intemational Production and Logistics activities include decisions on where to
locate plants and what transportation method to use in delivery of goods. Discuss the
transportation modes commonly adopted b al businesses. (10mks)
QUESTION 2

9) Explain the criteria an International Human Resources Manager would use in selecting
international employees (10mks)

b) Theories of international trade have advanced reasons for interationalization process that
include search for cheap labour, Discuss some of the reasons for internationalization given
by these theories (10mks)

QUESTIONS
(One ofthe modes ofentry into foreign market available for firms is exporting. Explain any
other four modes of entry. (20mks)

QUESTION 4

Discuss factors that drive success of multinational o global corporations (20MKS)
QUESTIONS

2) “One reason why today’s International environment isso confusing and challenging for
international business is because there are many laws and regulations,” There are four
foundations on which international laws are based around the world. Explain these
foundations (10 MKS)

b). Diseuss the reasons that make international business environment complex (LOMKS)

‘Moseno Univers 10 90012008 Certified
Fountain Excelence

9. MASENO UNIVERSITY

UNIVERSITY EXAMINATIONS 2011/2012

FOURTH YEAR SECOND SEMESTER EXAMINATION
FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION WITH INFORMATION
TECHNOLOGY
(HOMABAY CAMPUS)

ABA 413: ENTREPRENEURSHIP AND SMALL
SCALE BUSINESS MANAGEMENT

Date: 15% Apri 2012 Times 2.00 4.00 ps

INSTRUCTIONS:

+ Answer QUESTION ONE and any other TWO questions.

+ Question one carries 30 marks and the rest 20 marks each.

+ Marks will be awarded for being neat, clear and use of
relevant illustrations.

10. QUESTION ONE

(a) Explain the term the term “Entrepreneurship”, according to Peter

Drucker (marks)
(6) Suecinetly explain the profile ofan entrepreneur (1Omarks)
(©) Entrepreneurship is a systematic innovation’. Explain the

processes of entrepreneurship (Bmarks)
(@) Are entrepreneurs born or made? Explain (marks)
(©) What are the potential drawbacks of entrepreneurship in many
economies? (marks)
QUESTION TWO
(a) The death rate of small scale businesses is alarming. Explain the
challenges facing them (l2marks)
(6) Choosing a form of business depends on several factors. Explain
(marks)
QUESTION THREE
(a) Explain the importance of a business plan to development of a firm
(marks)
(©) Explain briefly the main features of a business that would make it good
and sound. (12marks)
QUESTION FOUR
(@ Today, most firms are run on the basis of franchise’. Explain the
advantages ofa franchise toa franchisee (10marks)
(b) Explain the tenets of a strategic plan of firm. (10marks)

QUESTION FIVE

(2) The government of Kenya strives to promote small scale business
development using various programs such as Youth Enterprise funds.
Explain the need to develop this sector (2marks)

(b) Differentiate between the following
Entrepreneurship and small business management (4marks)

(i) Career and profession (marks)