MGT502 Current Finalterm papers

MGT502 Organizational Behaviour Subjective Final Term Questions Jan-2012
1- describe procedure of small business innovation research (3 Marks)

2- Describe cash flows statement 3 marks
Complementing the balance sheet and income statement, the cash flow statement (CFS), a mandatory part of a company's financial reports since 1987, records the amounts of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent. Here you will learn how the CFS is structured and how to use it as part of your analysis of a company.




3- long term loan sources 3 marks
hese loans are commonly set for more than three years. Most are between three and 10 years, and some run for as long as 20 years. Long-term loans are collateralized by a business's assets and typically require quarterly or monthly payments derived from profits or cash flow. These loans usually carry wording that limits the amount of additional financial commitments the business may take on (including other debts but also dividends or principals' salaries), and they sometimes require that a certain amount of profit be set-aside to repay the loan.
4- disadvantages of acquisition 5 marks
· Integration problems:The activities of new and old organizations may be difficult to integrate.cultural fit can be problematic.Employees may resit it.
· High cost :The acquirer may pay high cost,especially in cases of hostile take over bids.Value may not be added for the acquirer.
· Financial consequences :The returns from acquisitions may not be attractive.Executed cost saving may not materialize.
· Unrelated diversification:This may create problem of managing resources and competencies.
· Too much focus:Too much managerial focus on acquisitions can be detrimental to internal development.
Advantage of acquisition are :

Speed :It provide ability to speedily acquire resources and competencies not held in house.It allows entry into new products and new markets.Risks and costs of new product development decrease.
Market power :It builds market presence.Market share increases.Competition decrease.Excessive competition can be avoided by shut down of capacity.Diversification is aggrieved.Synergistic benefits are gained.
Overcome entry barrier :It overcomes market entry barrier by acquiring an existing organization.The risk of competitive reaction decrease.
Financial gain :Organization with low share value or low price earning ratio can be acquired to take short term gains through assets stripping.
Resources and competencies :Acquisition of resources and competencies not available in house can be a motive for merger and acquisition.
Stakeholder expectations :Stakeholder may expect growth through acquisitions.

5- Brain storming method 5 marks P91

“Process to generate a quantity of ideas”
Group members actively generate as many ideas and alternatives as possible, and they do so
relatively quickly and without inhibitions.
• It is meant to overcome pressures for conformity in the interacting group that retard the
development of creative alternatives.
• In a typical brainstorming session, a half dozen to a dozen people sit around a table.
• The process:
a. The group leader states the problem clearly.
b. Members then “free-wheel” as many alternatives as they can in a given length of time.
c. No criticism is allowed, and all the alternatives are recorded for later discussion and
analysis.
One idea stimulates others, and group members are encouraged to “think the unusual.”


6- recruitment sources 5 marks
The College’s central recruitment advertising budget normally covers the cost for all agreed College funded posts to be placed in one publication. The relevant School or Professional Service Department will meet the cost of advertising in any additional publications. All advertisements will be screened and placed by the Human Resources Team (see external recruitment).
Recruitment costs for non-College funded posts will normally be met by the appropriate external funding body. Therefore, it is advisable, when applying for a grant to an outside funding body (other than a research council), to include recruitment expenses in the calculation of the overheads for the post.
The College uses a variety of recruitment sources in order to ensure that vacancies may be filled with the most suitable person available in a cost effective and timely manner. Vacancies will normally be advertised both externally and internally, except in certain circumstances as set out in the section on internal recruitment.

7- describe operating and capital budgeting 5 marks

Capital budget
A plan for the acquisition of assets such as equipment and property
Operations budget
A detailed operating plan that includes all revenues and expenses that appear on the income statement and related subsidiary schedules
Preparing the operations budget is a prerequisite to capital budgeting
Capital budgets are prepared not only for the current year, but also for several years into the future