Set No. 1
Code No:
NR-310106
III B.Tech. I-Semester Supplementary Examinations, November-2004
(Common to Civil Engineering, Mechanical Engineering, Production
Engineering, Chemical Engineering, Mechatronics, Metallurgy and Material
Technology and Computer Science and System Engineering)
Time: 3 hours Max Marks: 80
All Questions carry equal marks
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1. What are the contributions and limitations of economic analysis to business decision-making?
2. Discuss the utility of demand forecasting. What are the criteria of a good forecasting method?
3. Why does the Law of Diminishing Returns operate? Explain with the help of a diagram.
4. Write short notes on the following:
a) Profit-Volume Ration
b) Margin of Safety
5. The following are the details pertaining to a company, which is considering acquiring a fixed asset:
Project A: Cost of the proposal: Rs. 42,000, Life 5 years, Average annual cash inflow Rs.14, 000.
Project B: Cost of the proposal Rs. 45,000, Life 5 years
Annual cash inflows: 1st year 28000, 2nd year 12000, 3rd year 10,000 4th year 10,000 and 5th year Rs. 10,000. Determine IRR. Which projects do you recommend?
6. Explain the role of time factor in the determinations of price. Also explain price output determination in case of perfect competition.
7. Define a Public Enterprise? Discuss the need for Public Enterprises in India.
8. Explain the concept of 'Liquidity' and narrate its importance through suitable examples with some assumed data.
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Set No. 2
Code No:
NR-310106
III B.Tech. I-Semester Supplementary Examinations, November-2004
(Common to Civil Engineering, Mechanical Engineering, Production
Engineering, Chemical Engineering, Mechatronics, Metallurgy and Material
Technology and Computer Science and System Engineering)
Time: 3 hours Max Marks: 80
All Questions carry equal marks
- - -
1. What is managerial economics? Explain its focus areas?
2. What is meant by elasticity of demand? Explain giving a suitable illustration, how elasticity of demand determines the price policy of a firm.
3. Explain the following with reference to production function,
a) Substitutability of factors
b) Variable proportions of factors
4. Write short notes:
a) Sunk costs
b) Abandonment costs
5. What is Accounting rate of return and Pay back period? Compare and contrast the two.
6. What are the main features of Monopoly? How does it differ from Perfect Competition?
7. What do you understand by Joint Stock Company? What are its salient features?
8. Determine the required information:
a) If the net income of an enterprise is Rs. l, 62,400.lts fixed interest charges on mortgage debentures amount to Rs.32480 and Income tax provision was Rs. l, 62,400. What is its Interest coverage ratio?
b) When a business effects net sales of Rs.12, 69,000 and the cost of goods sold by it is Rs. 7, 11,000, what will be its Gross profit ratio?
c) If the costs of goods sold as well as operating expenses are Rs. 7,11,000 and Rs. 4,52,000 respectively and the net sales amount to Rs. 12,69,000, what is its operating ratio?
d) Opening stock and closing stock values are Rs. l, 75,000 and Rs.2, 25,000 respectively. Purchases and manufacturing expenses are Rs. 4,00,000 and Rs.6, 00,000 respectively. What is its Stock-Turnover ratio?
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Set No. 3
Code No:
NR-310106
III B.Tech. I-Semester Supplementary Examinations, November-2004
(Common to Civil Engineering, Mechanical Engineering, Production
Engineering, Chemical Engineering, Mechatronics, Metallurgy and Material
Technology, and Computer Science and System Engineering)
Time: 3 hours Max Marks: 80
All Questions carry equal marks
- - -
1. “Managerial economics is the discipline which deals with the application of economic theory to business management”. Discuss.
2. What is meant by Elasticity of demand? What are the determinants of Elasticity and Inelasticity of demand for a product?
3. What do you mean by a firm’s production function? Suppose the price of one input goes up. How does this affect the firms’ production functions? With two inputs how does it affect the firm’s choice of inputs?
4. The information about Raj & Co., are given below:
Profit-Volume Ratio 20%
Fixed Cost Rs.36, 000
Selling price per unit Rs.150
Calculate:
a) BEP (in Rs.)
b) BEP (in units)
c) Variable Cost per unit
d) Selling price per unit
5. A project involves initial outlay of Rs. 1,29,600. Its working life is expected to be 3 years. The cash inflows are likely to be as follows:
1st year: 64,000, 2nd year: Rs.56000, 3rd year: Rs. 24,000. Compute the Internal Rate of Return.
6. What is Perfect Competition? How is Market Price determined under conditions of Perfect Competition?
7. What do you mean by Sole Proprietorship? Explain its merits and limitations
8. Write short notes on the following and give appropriate examples
a) Current ratios and Quick ratios
b) Debtor- Turnover ratio and Inventory turnover ratio
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Set No.
4
Code No:
NR-310106
III B.Tech. I-Semester Supplementary Examinations, November-2004
(Common to Civil Engineering, Mechanical Engineering, Production
Engineering, Chemical Engineering, Mechatronics, Metallurgy and Material
Technology, and Computer Science and System Engineering)
Time: 3 hours Max Marks: 80
All Questions carry equal marks
- - -
1. Explain the various factors that influence the demand for a computer.
2. Explain the following methods of demand forecasting:
a) Test marketing
b) Controlled experiments
c) Judgmental approach.
d) Sales force-polling.
3. Explain the following:
a) Internal Economics
b) External Economics
4. Define Opportunity Cost. List out its assumptions and limitations.
5. A company is considering two investment opportunities (A and B) that cost Rs. 4, 00,000 and Rs. 3, 00,000 respectively. The first project generates Rs. 1,00,000 a year for four years. The second generates Rs. 60,000, Rs.1, 00,000, Rs.80, 000, Rs. 90,000 and Rs.70, 000 over a five year period. The company’s cost of capital is 8%. Which project will you choose under NPV method?
6. Explain the following with the help of a table and diagram under perfect competition and monopoly:
a) Total Revenue
b) Marginal Revenue
c) Average Revenue
7. Define partnership business and explain its salient features.
8. Who are the users of financial statements of a business unit and explain how differently they interpret the financial data?
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