Management Exam Example PDF 2025

"Management" - Example of Examination 2nd Year M.EA0020 1st Year M.EMAT0004 2025-01-03 João Falcão e Cunha Name: Email: EXAMPLE OF ANSWER: The most correct answer is c:...

"Management" - Example of Examination 2nd Year M.EA0020 1st Year M.EMAT0004 2025-01-03 João Falcão e Cunha Name: Email: EXAMPLE OF ANSWER: The most correct answer is c: a b c d [1..30.2 (32Q): correct answer 0.5 points; wrong answer -0.2 points [max.: 18]; 30.3 (1Q): 2 points] [max.: 20] 1. Which of the following is NOT an objective of managing a business? a b c d a) Innovation b) Profit Maximization c) Employee Dissatisfaction d) Risk Management 2. Which is an example of a strategic planning goal? a b c d a) Day-to-day task management b) Immediate cost reductions c) Long-term resource alignment d) Random budget allocations 3. What is the first step in the planning process for a business? a b c d a) Control b) Organization c) Goal Setting d) Evaluation 4. What does the concept of "inflation" signify in financial math? a b c d a) Increase in interest rates b) Rise in general price levels c) Value of money increasing over time d) Fixed value of money 5. Which of the following is a mathematical finance concept? a b c d a) SWOT Analysis b) Future Value c) Employee Motivation d) Strategic Alignment 6. Which management function involves monitoring activities and ensuring they align with a b c d plans? a) Directing b) Organizing c) Controlling d) Planning Page 1-7  "Management" - Example of Examination  2025-01-03 7. Which formula is used to calculate Future Value (FV)? a b c d a) FV=PV×nFV = PV \times n b) FV=PV×(1+i)nFV = PV \times (1 + i)^n c) FV=PV÷(1+i)nFV = PV \div (1 + i)^n d) FV=PV×i×nFV = PV \times i \times n 8. If inflation is 5% and the nominal interest rate is 10%, what is the real interest rate? a b c d a) 15% b) 5% c) 10% d) 50% 9. Why does €100 today have more value than €100 a year from now? a b c d a) Currency stability b) Interest earning potential c) Decrease in purchasing power d) Both B and C 10. Which tool is used for identifying a company’s strengths, weaknesses, opportunities, and a b c d threats? a) Gantt Chart b) SWOT Analysis c) Budgeting d) Financial Ratios 11. Strategic planning operates primarily at which level? a b c d a) Operational b) Tactical c) Corporate d) Functional 12. What is a key requirement for effective strategic planning? a b c d a) Unshared plans b) Quantitative measures for control c) Avoiding competitor analysis d) Flexible budgeting 13. What is the role of value proposition in a business strategy? a b c d a) Defines pricing strategy b) Differentiates the business from competitors c) Aligns marketing and operations d) Manages supply chain Page 2-7  "Management" - Example of Examination  2025-01-03 14. Which of the following is an example of a marketing strategy? a b c d a) Building a supply chain b) Targeting specific consumer segments c) Developing a financial plan d) Hiring new staff 15. What is NOT a component of the marketing mix? a b c d a) Product b) Promotion c) Price d) Profit 16. Why is customer satisfaction crucial in marketing? a b c d a) It reduces product costs b) It ensures customer loyalty and retention c) It aligns with competitors' goals d) It eliminates the need for promotions 17. What is the significance of Occam’s Razor in marketing? a b c d a) Encourages complicated solutions b) Prefers simpler, efficient solutions c) Avoids customer feedback d) Focuses only on product design 18. What is the primary goal of Kaizen? a b c d a) Cost cutting b) Continuous improvement c) Crisis management d) Employee replacement 19. What does ERP stand for in operations? a b c d a) Efficient Resource Planning b) Enterprise Resource Planning c) Enterprise Risk Planning d) Effective Resource Planning 20. Which of the following is an example of a tangible product? a b c d a) Software b) Consulting services c) Machinery d) Air travel Page 3-7  "Management" - Example of Examination  2025-01-03 21. What is a significant challenge of service-based operations? a b c d a) Intangibility b) Excess stock c) Low customer participation d) Lack of flexibility 22. Which document summarizes a company’s income and expenses over a period? a b c d a) Balance Sheet b) Cash Flow Statement c) Income Statement d) Budget 23. What is the primary purpose of the cash flow statement? a b c d a) Track cash inflows and outflows b) Summarize revenues c) Detail liabilities d) Outline annual profit 24. What are retained earnings? a b c d a) Equity held by creditors b) Profits kept by the company after paying dividends c) Liabilities paid over time d) Unpaid taxes 25. What is the goal of capital budgeting? a b c d a) Estimate operating costs b) Assess investment profitability c) Reduce employee turnover d) Manage daily expenses 26. What type of cash flow is most relevant for project evaluation? a b c d a) Gross Revenue b) Net Cash Flow c) Operating Income d) Depreciated Costs 27. Which project type involves upgrading existing systems? a b c d a) Expansion b) Modernization c) Diversification d) Strategic Development Page 4-7  "Management" - Example of Examination  2025-01-03 28. Why are cash flows preferred over accounting profits in investment analysis? a b c d a) Simplicity b) Clarity and objectivity c) They ignore inflation d) They include non-cash items 29. Why is aligning tactical and operational planning with strategic goals crucial for a b c d business success? a) It ensures all plans are flexible and subject to frequent changes. b) It bridges long-term objectives with day-to-day activities, ensuring coherence and execution. c) It allows businesses to avoid defining measurable performance indicators. d) It limits the scope of strategic decisions to short-term profitability. 30. YGing (Your Greening SPP, plc.) is a London-based sustainability consultancy business with a mission to help organizations become more sustainable, focusing on Services, Products, and Processes (SPP). Having also offices in Porto, Cape Town, Goa and Macau, YGing is well-positioned to serve a global clientele. The company's share capital of £2,000,000 is 51% owned by its directors, with the remaining 49% held by the public. The next table shows YGing’s income and costs for the past 5 years, and dividend policy. YGing total Share Capital 2 000 000 UK Corporate tax 25% 2020 2021 2022 2023 2024 Income From Services' greening 750 000 870 000 1 200 000 1 100 000 1 500 000 From Products' greening 1 500 000 1 750 000 2 300 000 2 500 000 3 000 000 From Processes' greening 250 000 300 000 400 000 350 000 500 000 Other 350 000 400 000 550 000 600 000 750 000 Total income 2 850 000 3 320 000 4 450 000 4 550 000 5 750 000 Costs Persons 2 000 000 2 300 000 2 600 000 3 000 000 3 400 000 Infrastructure & equipment leasing 450 000 450 000 450 000 450 000 450 000 Utilities 200 000 220 000 250 000 270 000 300 000 Other 150 000 165 000 225 000 250 000 350 000 Total costs 2 800 000 3 135 000 3 525 000 3 970 000 4 500 000 Profit Gross (before Corp. Tax) 50 000 185 000 925 000 580 000 1 250 000 Profit Net (after Corp. Tax) 37 500 138 750 693 750 435 000 937 500 Dividends (from net Profit) 75% 28 125 104 063 520 313 326 250 703 125 Retained Earnings 25% 9 375 34 688 173 438 108 750 234 375 30.1 Why did Infrastructure & equipment leasing costs remained stable across the period of a b c d time? a) There was no inflation b) There were no strikes by the shop floor personel c) Leasing contracts so established d) It is an error, as prices never stay the same, and are always increasing. Page 5-7  "Management" - Example of Examination  2025-01-03 Suppose you have a stake in YGing and you also had a deposit bank account with the same amount by the end of 2019. You are a “Higher rate taxpayer” and so you have to pay tax on interest and on dividends (see below for further explanations). The following table shows what happened from 2020 until 2024. Your share capital in YGing 250 000 12,5% personal tax on dividends 33,75% 2020 2021 2022 2023 2024 Dividends earned 3 515,63 13 007,81 65 039,06 40 781,25 87 890,63 Dividends after personal tax on dividends 2 329,10 8 617,68 43 088,38 27 017,58 58 227,54 Your Bank investment Account 2019-12-31 250 000 Annual interest rate 5% tax on Bank deposit interest 40% 2020 2021 2022 2023 2024 Bank account 31st december 262 500,00 275 625,00 289 406,25 303 876,56 319 070,39 Interest earned 12 500,00 13 125,00 13 781,25 14 470,31 15 193,83 Interest earned after personal tax 7 500,00 7 875,00 8 268,75 8 682,19 9 116,30 Earnings from bank deposit and YGing shares - net 9 829,10 16 492,68 51 357,13 35 699,77 67 343,84 30.2 In which years your net earnings from the bank interest were higher than the net a b c d earnings from your shares in YGing? a) Always b) 2020 c) 2020 and 2021 d) 2024 30.3 Given the current situation of the World economy what would be your advice to the Executive Board during the next General Assembly of shareholders of YGing? Page 6-7  "Management" - Example of Examination  2025-01-03 Notes on personal tax in UK bank account interest and company dividends UK tax on dividends from Business In the UK, the tax paid on dividends depends on your income tax band and the amount of dividends you receive. For the 2024/25 tax year: Dividend Allowance: The first £500 of dividend income is tax-free. Tax rates on dividends above the allowance: Basic rate taxpayers: 8.75% Higher rate taxpayers: 33.75% Additional rate taxpayers: 39.35% These rates apply to dividend income received above the £500 tax-free dividend allowance. It's important to note that dividend income is added to your other income to determine your tax band. This means you may pay tax at more than one rate if your dividend income pushes you into a higher tax bracket. For example, if you're a basic rate taxpayer and receive £3,000 in dividends: £500 would be tax-free (dividend allowance) The remaining £2,500 would be taxed at 8.75% Remember that dividend income, including the tax-free allowance, counts towards your basic or higher rate limits and may affect your personal savings allowance. For your answer suppose you are in “Higher rate taxpayers”: 33.75%. UK tax on interest from personal Bank accounts In the UK, the tax on bank account annual interest depends on your income tax bracket and the amount of interest you earn. Here's a breakdown: Personal Savings Allowance (PSA) The PSA allows you to earn a certain amount of interest tax-free each year: Basic-rate taxpayers (20%): Up to £1,000 tax-free interest Higher-rate taxpayers (40%): Up to £500 tax-free interest Additional-rate taxpayers (45%): No tax-free allowance24 Tax Rates on Savings Interest: Any interest earned above your PSA is taxed at your income tax rate: Basic rate taxpayers: 20% Higher rate taxpayers: 40% Additional rate taxpayers: 45%3 Starting Rate for Savings: If your income is below £17,570, you may benefit from the starting rate for savings, which allows up to £5,000 in tax-free interest. Important Considerations: Interest from Individual Savings Accounts doesn't count towards your PSA and remains tax-free. Savings interest can push you into a higher tax bracket, potentially affecting your PSA. Banks automatically report interest earnings to HMRC (His Majesty's Revenue and Customs, UK's tax, payments and customs authority). For your answer suppose you are in “Higher rate taxpayers”: 40%. Final note. This document was prepared with the support of the following tools: Perplexity (perplexity.ai), Chat GPT (openai.com), NotebookLM (notebooklm.google). Page 7-7