Business Environment Final
Business Environment Final
Business Environment Final
DATE : 29-August-2016
Instruction to candidates
1. This question paper has THREE (3) Section
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SECTION A
1. In MDG there were …. Goals where as in SDG there were ….. goals.
a. 8, 17
b. 9, 16
c. 8, 16
d. 9, 17
2. Adult Literacy rate (15 years and over) of Nepal is ………….. of male, ……………% of
female. (According to CBS data 2011)
a. 89.2%, 77.5%
b. b.88.2%, 76.5%
c. 90.2%, 77.5%
d. 89.2% 76.5%
4. Organization activities intended to benefit society and the environment beyond the
firm’s immediate financial interests or legal obligation.
a. corporate governance
b. social and business ethic
c. corporate social responsibility
d. long-run investment
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7. Rate at which the commercial banks borrow from Nepal Rastra Bank is called as
…………
a. Repo
b. PLR
c. Bank Rate
d. BPLR
8. Globalization is the term used to describe the process of removal of restrictions on:
a. Foreign trade
b. Investment
c. None of these
d. (a) and (b)
9. Commercial bank's credit creation capacity will ……………., if central bank increases
CRR:
a. Increase
b. Come down
c. Have no effect
d. None of these
11. Analysts using Porter’s five forces model would see which of the following as substitute
for tourist flights to Pokhara offered by airlines such Buddha Air or Yeti Air?
a. Flight provided by Agni and Tara Air
b. Flight offered by low cost Nepal Airlines
c. Travel on the Green line or other Tourist Bus
d. Online ticket booking facilities
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13. When a firm successfully combines assets and skills to do certain things better than
competitors, the firm is using its ………………… effectively.
a. Competitive advantage
b. Core responsibilities
c. Core competencies
d. Core methodologies
14. When a manager attempts to monitor current events in the business environment with
the intention of forecasting future trend, we say that h/she is practicing ……………….
a. Environmental scanning
b. Horizontal integration
c. Diversification
d. Value-chain analysis
15. Globalization is the term used to describe the process of removal of restriction on:
a. Foreign trade
b. Investment
c. None of the above
d. a and b
16. Which of the following does not form part of an organization’s micro-environment?
a. Intermediaries
b. Customers
c. Statute legislation
d. Supplies
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19. It is an agreement on trade in service which extend multilateral rules and disciplines to
serve in the world.
a. GATT
b. TRIMS
c. GATS
d. TRIPS
21. Gross National Product (GNP), Gross Domestic Product (GDP), per capita income,
personal consumption, income distribution, saving debt and credit availability, private
investments are:
a. remote industry
b. economic dimension
c. government activities
d. business environment dimension
23. People perception and purchasing capacity, attitudes and believes, religion, language,
education, social organization, class, structure and business culture are:
a. The ETOP components
b. The socio- culture components
c. The Business environment components
d. ecological components
24. The long term capital investment- involving acquisition by domestic firms of foreign
based factories or any other types of business firm:
a. MNCs
b. Joint venture
c. Merger
d. FDI
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25. The way an organization does its work by using electronic (internet based) linkage with
its key constituencies in order to efficiently and effectively its goal:
a. E-business
b. Foreign direct investment
c. Movement of goods and service
d. World Trade
28. The policy is to look into the requirements of investors and to solve their problems from
one place so that they do not have to run from one office to another:
a. Export facilities service
b. Import facilities service
c. One window service
d. Isolate window service
29. Profit advantage, growth opportunities, competitions, domestic market constraints are
the:
a. pull factors
b. growth factors
c. proactive factors
d. push factors
30. Before going to establish any new launching venture or the new business firm as a
business promoter needs to understand the initial level of:
a. ETOP
b. SWOT analysis
c. Business environmental scanning
d. External and internal environment
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SECTION B
Short Answers Questions
Answer any five (5) questions out of seven (7) questions (5*6=30)
1. PESTLE analysis guides you to identify the positives and negatives inside your institution
and outside of it, in the external environment. Explain
3. How will you define Privatization? Explain the problems of privatization in developing
countries.
4. If you have to start any new venture how would you pay an ethical responsibilities and CSR
to the stakeholder? Explain.
6. “Some taxes are progressive some taxes are regressive” do you agree with this statement? if
so differentiate direct and indirect taxes.
7. Illustrate the role of WTO’s and its implications for developing Nations.
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SECTION C
Long Answer Questions
Attempt any two (2) questions but question no 1 is compulsory (2*20=40)
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CG Holdings is a wing of diversified conglomerate Chaudhary Group. Under the group, CG
Hotels and Resorts recently brought into operation MeghauliSerai Jungle Lodge in Chitwan
which managed by India’s most celebrated luxury hotel chain- Taj Hotels Resorts and
Palaces.
CG Hotels and Resorts had last year acquired a majority stake in Summit Hotel, which had
been run by Dutch group Foundation Nepal Holland House since1978. Summit, which offers
73 rooms and is currently being managed by Zinc Hospitality, will be expanded to 200
rooms.
The company also plans to develop another four-star hotel at Jhamsikhel featuring 114
rooms. The company has acquired a 11-storey building for the hotel and plans to bring the
hotel into operation by June 2017.
It has also acquired property of Hotel ChitwanKeyman in Chitwan. The old property has
been demolished (knock down/pull down) and the construction of a mall-cum-hotel is under
way.
The proposed 10-storey building will have 50 rooms with a Cineplex and a food court. It will
also be managed by Zinc.
Questions:
a. Evaluate the barriers to enter in the tourism sector for CG. Can CG easily enter the new
business platform? Critically analyze in the light of environmental scanning and feasibility
studies.
b. What is SBUs? Critically explain the SBUs with substantial example of CG the 40s
outlets.
c. Suggest some of the ideas as professional business student to the managing director Mr.
Arun Chaudhari before launching the new venture/outlets or different segmental business.
d. State the strategies followed by CG. And where did you find acknowledgeable strategies
after studying the above case.
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2. Companies are drawn to expand into international markets in search of lower costs, new
opportunities, and access to resources. When they arrive, however, they often find that the
politics of foreign environments adds risk and complexity to business performance. A
question for companies operating internationally thus becomes how best to manage
political risk. Explain.
3. Britain had voted to leave European Union (EU). Critically examine the effect of this result
in to Nepalese Business Environment. Will Nepal gain?
****BEST OF LUCK****
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