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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH CMA DECEMBER, 2017 EXAMINATION
KNOWLEDGE LEVEL
SUBJECT: IE 02. PRINCIPLES OF BUSINESS AND ECONOMICS
Time: Three hours Full Marks: 100
All questions are to be attempted.
Show computations, where necessary.
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
Q. No. 1
(a) What are the major elements of the Management Process? Explain with examples.
(b) “Training and Development are vital to improve employee efficiency and skill of performance”. Discuss this statement giving relevant examples.
[Marks: (7+8) = 15]
Q. No. 2
(a) Critically examine the role of the IMF and the World Bank in the context of the development of Bangladesh.
(b) “Globalization has not moved in tandem with the requirements of most developing countries”. Do you agree? Discuss giving your reasons.
[Marks: (7+8) = 15]
Q. No. 3
(a) Briefly explain the factors affecting production cost, both in the long and the short run.
(b) Explain the concepts of Oligopoly and Duopoly giving relevant examples.
[Marks: (6+4) = 10]
Q. No. 4
(a) “Human resources is possibly the most difficult factor to plan and manage”. Please comment on this.
(b) Distinguish between compensation and performance management.
[Marks: (6+4) = 10]
Q. No. 5
(a) Explain some of the important social objectives of a business.
(b) “Wealth or value of a business is defined as the market price of shareholders’ investment”. Discuss.
[Marks: (7+8) = 15]
Q. No. 6
(a) Define the term “Cost Accounting”. Prepare a Statement of “Direct Cost” as per BCAS-1.
(b) Define the term “E-business”. What are the factors which will drive the growth of e- business rapidly? Explain this in the context of the economy of Bangladesh.
[Marks: (7+8) = 15]
Q. No. 7
(a) If your company borrows Tk. 300,000.00 at 8% interest and agrees to repay the loan in 10 equal semiannual payments to include principal plus interest, how much would those payments be?
(b) Define the term “Financial Management”. List down the principles of financial management.
(c) Do you think that “Ratio Analysis” is an useful tool for management? Explain.
[Marks: (6+8+6) = 20]
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