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Enterprise Resource Planning
Subject Code-C102
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiple Choice questions & Short Answer type questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. Enterprise Resource Planning is:
a. Computer System
b. Manufacturing organization
c. Method of effective planning of all the resources in an organization
d. None of the above
2. Enterprise Resource Planning vendors are those people:
a. Who are experts in administration and management of projects
b. Who have developed the ERP packages
c. Who uses the ERP system
d. None of the above
3. Interviewing and cost justification is tool and technique of:
a. Design step of ERP
b. Implementation step of ERP
c. Requirement analysis of ERP
d. Planning step of ERP
4. Support re-engineering processes to fit the software systems best practice is approach of:
a. Re-engineering approach
b. Customizing approach
c. Rational approach
d. None of the above
5. Process of tracking customer contacts and providing the customer with a price quote is:
a. Inventory sourcing
b. Sales order processing
c. Pre-sales
d. None of the above
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IIBM Institute of Business Management
6. The difficulty in creating an audit trial of transactions when multiple transactions use multiple
database is associated with:
a. Product profitability sub-system
b. Finished goods inventory sub-system
c. Management reporting sub-system
d. Creating an audit trial sub-system
7. Differences occur between standard costs and actual costs is problem associated with:
a. Accounting
b. Production
c. Purchasing / Materials Management
d. None of the above
8. MRP in Enterprise resource planning stands for:
a. Maximum retail price
b. Material requirement planning
c. Management requirement planning
d. None of the above
9. Process of providing status of purchase order comes in a category of:
a. Purchase order follow-up
b. Source determination
c. Determine requirement
d. Invoice verification
10. Resource failure occurs when:
a. People clashes
b. Inability to communicate with the system user
c. Poor specification of requirements
d. Conflicts of people, time and project scope due to insufficient personnel
Part Two:
1. What are the advantages of the re-engineering method of implementing ERP?
2. What are the benefits reported from implementing ERP?
3. Write a short note on “Credit Management”.
4. Define Material Requirements Planning.
END OF SECTION A
Examination Paper of Enterprise Resource Planning
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Section B: Caselets (40 marks)
 This section consists of Caselets.
 Answer all the questions.
 Each Caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Tech Knowledge is a start-up founded in 1997 by Robert Thyer. The company is a distributer of
presentation technologies, including computer based projection systems, video equipment, and
display technologies. The firm has 25 employees and does $5 million in sales. It is growing rapidly.
The owner, Robert Thyer, would like to net source the back-office functions of the firm because the
company does not have an internal IT capability. The applications to be net sourced would include
sales and distribution, financial accounting, and inventory management.
Tech Knowledge would like to source SAP or another ERP vendor via a hosting arrangement. It
does not expect to do much customization, and it does not have any legacy systems.
Questions:
1. What factors should it use to evaluate each of these potential hosts?
2. What controls should be in place to monitor the hosting arrangement?
Caselet 2
ITM is a company specializing in network implementation and management. It provides networking
services to mid-sized companies, which do not have an internal networking analyst or IT, manager.
These organizations include real estate companies, law offices, medical practices, architectural /
engineering firms, construction companies, business services providers, country clubs, community
organizations, and churches.
ITM uses a legacy accounting system to handle its financial accounting and financial management
functions. It has added on a billing package for client services. The next step is to obtain a CRM
capability to manage information about current and prospective customers more effectively.
You have been assigned to identify potential sources for a net-sourcing arrangement with an ERP
vendor, which provides CRM capabilities.
Questions:
1. Identify potential sources of software.
2. Determine five criteria you will recommend be used to evaluate each of alternative providers.
END OF SECTION B
Examination Paper of Enterprise Resource Planning
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Section C: Applied Theory (30 marks)
 This section consists of Applied Theory Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Explain in brief Sales and Marketing Modules in ERP System.
2. What are the different development process in ERP systems and write a detailed note on it?

Examination Paper of Financial Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Financial Management
Subject Code-B-103
Section A: Objective Type & Short Questions (30 marks)
 This section consists of multiple choice & Short Notes.
 Answer all the questions.
 Part One carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. The approach focused mainly on the financial problems of corporate enterprise.
a. Ignored non-corporate enterprise
b. Ignored working capital financing
c. External approach
d. Ignored routine problems
2. These are those shares, which can be redeemed or repaid to the holders after a lapse of the
stipulated period.
a. Cumulative preference shares
b. Non-cumulative preference shares
c. Redeemable preference shares
d. Perpetual shares
3. This type of risk arises from changes in environmental regulations, zoning requirements, fees,
licenses and most frequently taxes.
a. Political risk
b. Domestic risk
c. International risk
d. Industry risk
4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment
proposal.
a. Future cost
b. Specific cost
c. Spot cost
d. Book cost
5. This concept is helpful in formulating a sound & economical capital structure for a firm.
a. Financial performance appraisal
b. Investment evaluation
c. Designing optimal corporate capital structure
d. None of the above
Examination Paper of Financial Management
IIBM Institute of Business Management 2
6. It is the minimum required rate of return needed to justify the use of capital.
a. From investors
b. Firms point
c. Capital expenditure point
d. Cost of capital
7. It arises when there is a conflict of interest among owners, debenture holders and the
management.
a. Seasonal variation
b. Degree of competition
c. Industry life cycle
d. Agency costs
8. Some guidelines on shares & debentures issued by the government that are very important for the
constitution of the capital structure are:
a. Legal requirement
b. Purpose of finance
c. Period of finance
d. Requirement of investors
9. It is that portion of an investments total risk that results from change in the financial integrity of
the investment.
a. Bull- bear market risk
b. Default risk
c. International risk
d. Liquidity risk
10. _____________ measure the systematic risk of a security that cannot be avoided through
diversification.
a. Beta
b. Gamma
c. Probability distribution
d. Alpha
Part Two:
1. What do you understand by wealth maximization?
2. Discuss the concept of factoring.
3. Define Annuity.
4. What is the Difference between NPV and IRR?
END OF SECTION A
Examination Paper of Financial Management
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Section B: Case lets (40 marks)
 This section consists of Case lets.
 Answer all the questions.
 Each Case let carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Case1: Credit Decision – Agarwal Case
On August 30, 2006, Agarwal Cast Company Inc., applied for a $200,000 loan from the main office
of the National bank of New York. The application was forwarded to the bank’s commercial loan
department. Gupta, the President and Principal Stockholder of Agarwal cast, applied for the loan in
person. He told the loan officer that he had been in business since February 1976, but that he had
considerable prior experience in flooring and carpets since he had worked as an individual contractor
for the past 20 year. Most of this time, he had worked in Frankfert and Michigan. He finally decided
to “work for himself” and he formed the company with Berry Hook, a former co-worker. This
information seemed to be consistent with the Dun and Bradstreet report obtained by the bank
According to Gupta, the purpose of the loan was to assist him in carrying his receivables until they
could be collected. He explained that the flooring business required him to spend considerable cash to
purchase materials but his customers would not pay until the job was done. Since he was relatively
new in the business, he did not feel that he could compete if he had to require a sizeable deposit or
payment in advance. Instead, he could quote for higher profits, if he were willing to wait until
completion of the job for payment. To show that his operation was sound, he included a list of
customers and projects with his loan application. He also included a list of current receivables.
Gupta told the loan officer that he had monitored his firm’s financial status closely and that he had
financial reports prepared every six months. He said that the would send a copy to the bank. In
addition, he was willing to file a personal financial statement with the bank.
Question:
1. Prepare your recommendation on Agarwal Cast Company
Caselet 2
This case has been framed in order to test the skills in evaluating a credit request and reaching a
correct decision. Perluence International is large manufacturer of petroleum and rubber-based
products used in a variety of commercial applications in the fields of transportation, electronics, and
heavy manufacturing. In the northwestern United States, many of the Perluence products are
marketed by a wholly-owned subsidiary, Bajaj Electronics Company. Operating from a headquarters
and warehouse facility in San Antonio, Strand Electronics has 950 employees and handles a volume
of $85 million in sales annually. About $6 million of the sales represents items manufactured by
Perluence. Gupta is the credit manager at Bajaj electronics. He supervises five employees who handle
credit application and collections on 4,600 accounts. The accounts range in size from $120 to
$85,000. The firm sells on varied terms, with 2/10, net 30 mostly. Sales fluctuate seasonally and the
Examination Paper of Financial Management
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average collection period tends to run 40 days. Bad-debt losses are less than 0.6 per cent of sales.
Gupta is evaluating a credit application from Booth Plastics, Inc., a wholesale supply dealer serving
the oil industry. The company was founded in 1977 by Neck A. Booth and has grown steadily since
that time. Bajaj Electronics is not selling any products to Booth Plastics and had no previous contact
with Neck Booth. Bajaj Electronics purchased goods from Perluence International under the same
terms and conditions as Perluence used when it sold to independent customers. Although Bajaj
Electronics generally followed Perluence in setting its prices, the subsidiary operated independently
and could adjust price levels to meet its own marketing strategies. The Perluence’s cost-accounting
department estimated a 24 per cent markup as the average for items sold to Pucca Electronics. Bajaj
Electronics, in turn, resold the items to yield a 17 per cent markup. It appeared that these percentages
would hold on any sales to Booth Plastics. Bajaj Electronics incurred out-of pocket expenses that
were not considered in calculating the 17 per cent markup on its items. For example, the contact with
Booth Plastics had been made by James, the salesman who handled the Glaveston area. James would
receive a 3 per cent commission on all sales made Booth Plastics, a commission that would be paid
whether or not the receivable was collected. James would, of course, be willing to assist in collecting
any accounts that he had sold. In addition to the sales commission, the company would incur variable
costs as a result of handling the merchandise for the new account. As a general guideline,
warehousing and other administrative variable costs would run 3 per cent sales. Gupta Holmstead
approached all credit decisions in basically the same manner. First of all, he considered the potential
profit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming
that Neck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup
on these sales since the average markup was calculated on the basis of the customer taking the
discount. If Neck Booth did not take the discount, the markup would be slightly higher, as would the
cost of financing the receivable for the additional period of time. In addition to the potential profit
from the account, Gupta was concerned about his company’s exposure. He knew that weak customers
could become bad debts at any time and therefore, required a vigorous collection effort whenever
their accounts were overdue. His department probably spent three times as much money and effort
managing a marginal account as compared to a strong account. He also figured that overdue and
uncollected funds had to be financed by Bajaj Electronics at a rate of 18 per cent. All in all, slow –
paying or marginal accounts were very costly to Bajaj Electronics. With these considerations in mind,
Gupta began to review the credit application for Booth Plastics.
Questions:
1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth
Plastics and give your views to increase the profit?
2. Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of
credit limit that electronics give to Booth Plastics.
END OF SECTION B
Examination Paper of Financial Management
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Section C: Applied Theory (30 marks)
 This section consists of Applied Theory Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 200-250 words).
1. Define Capital Structure. Discuss the important factors that should be considered while
determining Capital Structure.
2. What is the concept of working capital? Discuss the dangers of inadequate as well as excessive
working capital.
END OF SECTION C
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Examination Paper of Information Technology
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Information Technology & Management
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice & Short Note type questions
 Answer all the questions.
 Part one carries 1 mark each & Part two carries 5 marks each.
Part One:
Multiple Choices:
1. It means data that have been processed in a form that is meaningful and useful to the user.
a. Data
b. Information
c. System
d. None of the above
2. BCR stands for____________
a. Bar code reader
b. Basic code reader
c. Business code reader
d. None of the above
3. Which of the following comes under output devices?
a. Printer
b. Speaker
c. Both (a) & (b)
d. None
4. A trackball is a stationary device related to the_______
a. Keyboard
b. Joystick
c. Mouse
d. All of the above
5. ___________is a volatile memory and everything disappears if power goes off or is turned off
abruptly in the middle of work.
a. RAM
b. ROM
c. CDROM
d. None of the above
6. IC stands for____________
a. Integrated Circuit
b. Information Circuit
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IIBM Institute of Business Management
c. Interrelated Circuit
d. None of the above
7. DSS stands for____________
a. Decision Support System
b. Direction Support System
c. Both (a) & (b)
d. None of the above
8. How many characters uses the MICR system?
a. 15 characters
b. 18 characters
c. 24 characters
d. 14 characters
9. One Megabyte contains:
a. 1000 KB
b. 1000 Bytes
c. 1000 MB
d. None of the above
10. The smallest element of data is called_______
a. Byte
b. Bit
c. Giga byte
d. None of the above
Part Two:
1. Write a note on „Cache Memory‟.
2. List the different types of information systems.
3. Write a short note on „Value Chain Analysis‟
4. Discuss peer- to – peer model in distributed computing system.
Section B: Caselets (40 marks)
 This section consists of Caselets.
 Answer all the questions.
 Each caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
END OF SECTIONA
Examination Paper of Information Technology
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IIBM Institute of Business Management
It began as a trading site for nerds, the newly jobless, home-bound housewives, and bored retirees to
sell subprime goods: collectibles and attic trash. But eBay (www.ebay.com) quickly grew into a
teeming marketplace of 30 million, with its own laws and norms, such as a feedback system in
which buyers and sellers rate each other on each transaction. When that wasn‟t quite enough, eBay
formed its own police force to patrol the listings for fraud and kick out offenders. The company even
has something akin to a bank: Its Paypal payment-processing unit allows buyers to make electronic
payments to eBay sellers who can‟t afford a merchant credit card account. “eBay is creating a
second, virtual economy,” says W. Brian Arthur, an economist at think tank Santa Fe Institute. “It‟s
opening up a whole new medium of exchange.” eBay‟s powerful vortex is drawing diverse
products and players into its profitable economy, driving its sellers into the heart of traditional
retailing, a $2 trillion market. Among eBay‟s 12 million daily listings are products from giants such
as Sears Roebuck, Home Depot, Walt Disney, and even IBM. More than a quarter of the offerings
are listed at fixed prices. The result, says Bernard H. Tenenbaum, president of a retail buyout firm, is
“They„re coming right for the mainstream of the retail business.” So what started out as a pure
consumer auction market-place is now also becoming a big time business-to-consumer and even
business-to-business bazaar that is earning record profits for eBay‟s stockholders. And as the eBay
economy expands, CEO Meg Whitman and her team may find that managing it could get a lot
tougher, especially because eBay‟s millions of passionate and clamorous users demand a voice in all
major decisions. This process is clear in one of eBay‟s most cherished institutions: the voice of the
Customer program. Every couple of months, the executives of eBay bring in as many as a dozen
sellers and buyers, especially its high selling “Power Sellers,” to ask them questions about how they
work and what else eBay needs to do. And at least twice a week, it holds hour-long teleconferences
to poll users on almost every new feature or policy, no matter how small. The result is that users
feel like owners, and they take the initiative to expand the eBay economy – often beyond
management‟s wildest dreams. Stung by an aerospace down-turn, for instance, machine-tool shop
Reliable Tools Inc., tried listing a few items on eBay in late 1998. Some were huge, hulking chunks
of metal, such as a $7,000 2,300-pound milling machine. Yet they sold like ice cream in August.
Since then, says Reliable‟s auction manager, Richard Smith, the company‟s eBay business has
“turned into a monster.” Now the Irwindale (California) shop‟s $1 million in monthly eBay sales
constitutes 75% of its overall business. Pioneers such as Reliable promoted eBay to set up an
industrial products marketplace in January that‟s on track to top $500 million in gross sales this
year.Then there is eBay Motors. When eBay manager Simon Rothman first recognized a market for
cars on cars on eBay in early 1999, he quickly realized that such high-ticket items would require a
different strategy than simply opening a new category. To jump-start its supply of cars and
customers, eBay immediately bought a collector-car auction company, Kruse International, for $150
million in stock, and later did a deal to include listings from online classifieds site, AutoTrader.com.
Rothman also arranged insurance and warranty plans, an escrow service, and shipping and
inspection services.This approach worked wonder. Sales of cars and car parts, at a $5 billion-plus
annual clip, are eBay’s single largest market. That has catapulted eBay in front of No. 1 U.S. auto
dealer AutoNation in number of used cars sold. About half of the sellers are brick-and-mortar dealers
who now have a much larger audience than their local area. “eBay is by far one of my better sources
for buyers,” says Bradley Bonifacius, Internet sales director at Dean Stallings Ford in Oak Ridge,
Tennessee. And for now, the big corporations, which still account for under 5 percent of eBay‟s
gross sales, seem to be bringing in more customers then they steal. Motorola Inc., for example,
helped kick off a new wholesale business for eBay last year, selling excess and returned cell phones
in large lots. Thanks to the initiative of established companies such as Motorola, eBay‟s wholesale
business jumped ninefold, to $23 million, in the first quarter.As businesses on eBay grow larger,
they spur the creation of even more businesses. A new army of merchants, for example, is making a
business out of selling on eBay for other people. From almost none a couple of years ago, these so
called Trading Assistants now number nearly 23,000. This kind of organic growth makes it
Examination Paper of Information Technology
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IIBM Institute of Business Management
exceedingly though to predict how far the eBay economy can go. Whitman professes not to know.
“We don‟t actually control this,” she admits. “We are not building this company by ourselves. We
have a unique partner – million of people.”
Questions:
1. Why has eBay become such a successful and diverse online marketplace? Visit the eBay website
to help you answer, and check out their many trading categories, specialty sites, international
sites, and other features.
2. Why do you think eBay has become the largest online/offline seller of used cars, and the largest
online seller of certain other products, like computers and photographic equipment?
Caselet 2
It‟s no secret that somewhere in a back room in the typical Fortune 500 company, there‟s a team of
analytical wizards running sophisticated data mining queries that mine for gems such as data about
about the company‟s best customers – those top 20 percent of clients that produce 80 percent of the
company‟s profits. These jewels can be a business‟s most valuable intellectual property, which
makes them very valuable to competitors. What‟s to prevent that data set from walking out the door
or falling into the wrong hands? Sometimes, not much. Many companies lack the internal controls to
prevent that information from leaking. The problem is that such data is as hard to protect as it is to
find. Owens & Minor Inc. (www.ownes-minor.com), a $4 billion medical supplies distributor,
counts some of the nation‟s largest health care organizations among its customers. In late 1996, it
started mining data internally using business intelligence software from Business Objects SA. “From
the beginning, we were aware of security issues around this strategic information about our
operations,” says Don Stoller, senior director of information systems at Owens & Minor. “For
example, a sales executive in Dallas should only have access to analyses from his region.” It is
always possible that someone who has legitimate access will abuse that trust, but companies can
minimize that potential by strictly limiting access to only those who need it. thus, Owens & Minor
uses role-level security functions that clearly define who has access to which data. “This meant we
had to build a separate security table in our Oracle database,” says Stoller. A few years later, when
the company wanted to open its systems to suppliers and customers, security became even more
important. In 1998, Owens & Minor moved quickly to take advantage of Web-intelligence software
from Business Objects that‟s designed to Web-enable business intelligence systems. The result was
Wisdom, an extranet Web portal that lets Owens & Minor‟s suppliers and customers access their
own transactional data and generate sophisticated analyses and reports from it.“It business-tobusiness
transactions, security is key,” says Stoller. “We had to make absolutely sure that Jhonson &
Jhonson, for example, could not see any 3M‟s information. This meant we had to set up specific
customer and supplier security tables, and we had to maintain new, secured database views using the
Oracle DBMS and Business Objects.”Wisdom was such a success that Owens & Minor decided to
go into the intelligence business with the launch of wisdom2 in the spring of 2000. “We capture data
out of a hospital‟s materials management system and load it into our data warehouse,” Stoller
explains. A hospital can then make full use of its business-intelligence software to mine and analyze
purchasing data. Owens & Minor receives a licensing and maintenance fee for the services.Layers of
security and encryption require a considerable amount of overhead data for systems administration.
Both Stoller and Michael Rasmussen, an analyst at Giga Information Group, say that‟s the main
reason security concerns about business intelligence are often swept under the carpet. The issues of
authentication (identifying the user) and authorization (what things the user is allowed to do) must
be addressed, usually across different applications, Rasmussen says, adding, “Systems
Examination Paper of Information Technology
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IIBM Institute of Business Management
administration can be a real nightmare.”“We are going through some of this,” says David Merager,
director of Web services and corporate applications at Vivendi Universal Games Inc.
(www.vugames.com). “Our business intelligence needs more security attention.” Business
intelligence reports come from two systems: an Oracle-based for budgets on a Microsoft SQL Server
database. The heart of the business intelligence system consists of Microsoft‟s OLAP application
and software from Comshare Inc. that provides the Web-based front end for the analytics. “Our
budget teams use these reports to do real-time analyses,” says Merager. Rodger Sayles, manager
of data warehousing at Vivendi Universal, says one way to secure such a system is to assign roles to
all users within the Microsoft application. Roles determine precisely what a user is allowed to see
and do and are usually managed within a directory. If your computing architecture is amenable to a
single, centralized directory that supports roles, this may be an attractive solution. “The problem is
that once you have over 40 distinct roles, you run into performance issues, and we have identified
about 70 user roles,” Sayles explains. He says there‟s way around this difficulty. “I think we are
going to use a combination of Web portals and user roles. A user would sign on through a particular
Web portal, which would effectively place the user in a role category. This reduces the overhead
burden on the application,” says Sayles.
Questions:
1. Why have developments in IT helped to increase the value of the data resources of many
companies?
2. How can companies use IT to meet the challenges of data resources security?
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Explain distributed systems. What are the advantages and disadvantages of distributed systems?
2. What do you mean by database? List the different types of database model.
END OF SECTION B
END OF SECTIONC