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401 EPM and 402 IEBE Answer Keys
401 EPM and 402 IEBE Answer Keys
A transfer price is the price charged when goods or services are transferred
between different parts of an organization. Transfer prices are important
because they can affect the profitability of different parts of the organization.
These are just some of the performance evaluation parameters for banks. The
specific parameters that are used will vary depending on the bank's size, location,
and business model.
• Non-performing loans: Non-performing loans are loans that are not being
repaid by borrowers. They can be a significant risk for banks.
• Provisions for loan losses: Provisions for loan losses are reserves that banks
set aside to cover potential loan losses. They are an important measure of a
bank's financial health.
OR
In general, engineered cost centers are more suitable for activities that are directly
linked to the production of goods or services, while discretionary cost centers are
more suitable for activities that are not directly linked to the production of goods or
services.
Here are some additional points to consider when comparing engineered and
discretionary cost centers:
• Engineered cost centers are typically more efficient than discretionary cost
centers. This is because the costs of engineered cost centers are directly
linked to the output of the center, so managers can easily track and control
costs.
• Discretionary cost centers are typically more flexible than engineered cost
centers. This is because managers have more discretion over how to spend
money in discretionary cost centers, so they can adapt to changes in demand
more easily.
• Engineered cost centers are typically more predictable than discretionary
cost centers. This is because the costs of engineered cost centers are more
likely to be stable, while the costs of discretionary cost centers can be more
volatile.
The best type of cost center for a particular activity will depend on the specific
circumstances. However, in general, engineered cost centers are a good choice for
activities that are directly linked to the production of goods or services, while
discretionary cost centers are a good choice for activities that are not directly linked
to the production of goods or services.
OR
b) ABC Company fixes the inter-divisional transfer price for its products on
the basis of cost plus return on investment in the division. The budget for
the division A for 2021-22 is as under:
3) Debtors - 1,00,000
ii) If the volume (units) can be increased by 10%, what will be the
impact of transfer prices.
The transfer price for division A is calculated using the following formula:
In this case, the cost is equal to the variable cost per unit multiplied by the
budgeted volume, or 10 * 200,000 = 2,000,000.
The total assets are equal to the fixed assets plus the current assets plus the debtors,
or 2,50,000 + 1,50,000 + 1,00,000 = 5,00,000.
If the volume (units) can be increased by 10%, the transfer price will increase by
10%.
In this case, the cost is equal to the variable cost per unit multiplied by the new
budgeted volume, or 10 * 220,000 = 2,200,000.
GC - 15 : INDIAN ETHOS & BUSINESS ETHICS
(2019 Pattern) (Semester - IV) (402)
a) Indian Ethos.
b) Business Ethics.
c) IPR.
d) CSR.
e) Work Ethos.
f) PLUS Model.
g) Corporate strategy.
h) Social Media.
a) Indian Ethos
Indian ethos refers to the core values and principles that have shaped Indian culture
over centuries. These values include respect for elders, humility, compassion, and a
deep connection to nature. Indian ethos is often seen as a source of strength and
resilience for Indians, and it continues to influence Indian society today.
b) Business Ethics
Business ethics refers to the moral principles that should guide businesses in their
decision-making. These principles include honesty, integrity, fairness, and social
responsibility. Businesses that adhere to business ethics are more likely to be
successful in the long run, as they will be able to build trust with their customers,
employees, and other stakeholders.
c) IPR
IPR stands for intellectual property rights. These rights protect the creative work of
individuals and businesses, such as patents, trademarks, copyrights, and trade
secrets. IPR is important for innovation and creativity, as it gives inventors and
creators the incentive to share their work with the world.
d) CSR
CSR stands for corporate social responsibility. This refers to the responsibility that
businesses have to the society in which they operate. CSR includes activities such
as environmental protection, social welfare, and community development.
Businesses that engage in CSR are seen as being more responsible and sustainable,
and they are often more successful in the long run.
e) Work Ethos
Work ethos refers to the attitude and values that people bring to their work. A
strong work ethos is characterized by hard work, dedication, and a commitment to
excellence. People with a strong work ethos are often more successful in their
careers, as they are able to overcome challenges and achieve their goals.
f) PLUS Model
The PLUS Model is a framework for corporate social responsibility. The model
stands for Purpose, Leadership, Unity, and Sustainability. The PLUS Model helps
businesses to integrate CSR into their core business activities, and it provides a
framework for measuring the impact of CSR initiatives.
g) Corporate Strategy
Corporate strategy refers to the long-term plans and goals of a business. A well-
defined corporate strategy helps businesses to achieve their goals and objectives.
Corporate strategy should be based on the company's strengths and weaknesses, as
well as the opportunities and threats in the market.
h) Social Media
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Social media is a tool that can be used for a variety of purposes, including
communication, marketing, and customer service. Businesses can use social media
to connect with customers, build relationships, and promote their products and
services. Social media can also be used to gather feedback from customers and
improve products and services.
Deontological theory and teleological theory are two different ethical theories that
can be used to guide decision-making in business. Deontological theory focuses on
the rightness or wrongness of an action itself, while teleological theory focuses on
the consequences of an action.
Deontological Theory
Deontological theory is based on the idea that there are certain actions that are
always right or wrong, regardless of the consequences. This theory is often
associated with the work of Immanuel Kant, who argued that there are certain
moral duties that we have simply because we are human beings. For example, Kant
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argued that we have a duty to tell the truth, even if it is not in our own best interests
to do so.
Teleological Theory
Comparison
The main difference between deontological theory and teleological theory is that
deontological theory focuses on the action itself, while teleological theory focuses
on the consequences of the action. Deontological theory is often seen as being
more absolutist, meaning that there are certain actions that are always right or
wrong, regardless of the consequences. Teleological theory is often seen as being
more relativist, meaning that the rightness or wrongness of an action depends on
the specific situation.
Application in Business
Conclusion
Deontological theory and teleological theory are two different ethical theories that
can be used to guide decision-making in business. There is no one "right" theory,
and the best approach depends on the specific situation and the values of the
organization. However, understanding the differences between deontological
theory and teleological theory can help businesses to make more informed
decisions.
Ethics is a branch of philosophy that deals with morality and right and wrong. It is
the study of what makes an action right or wrong, and it provides a framework for
making moral decisions.
Ethos is a set of beliefs or values that guide the way a person or group behaves. It is
the character or spirit of a person or group, and it is often expressed in their actions
and words.
In other words, ethics is about the rules that we follow, while ethos is about the
values that we hold dear.
Here is a table that summarizes the key differences between ethics and ethos:
Here are some examples of how ethics and ethos can be used in different contexts:
It is important to note that ethics and ethos are not mutually exclusive. They are
often interrelated, and they can both play a role in making moral decisions. For
example, a person's ethos might influence their ethical beliefs, and their ethical
beliefs might influence their behavior.
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Ultimately, ethics and ethos are both important concepts that can help us to make
moral decisions. By understanding the difference between the two, we can better
understand how they can work together to guide our behavior.
Here are some specific examples of how the Arthashastra can be applied to
business leadership:
The Arthashastra is a rich and complex text, and it offers a wealth of wisdom that
can be applied to business leadership. By studying the Arthashastra, business
leaders can gain a deeper understanding of the challenges and opportunities they
face, and they can develop the skills and knowledge they need to succeed in today's
competitive marketplace.
OR
b) Enumerate the Laws of Karma and relate the same with the management
principles and practices.
Here are the Laws of Karma and how they relate to management principles and
practices:
• The Law of Cause and Effect: This law states that every action has a
reaction, and that every thought, word, and deed will eventually bear fruit. In
management, this law can be applied to the concept of accountability.
Employees should be held accountable for their actions, and they should be
rewarded for good behavior and punished for bad behavior. This helps to
create a culture of responsibility and accountability in the workplace.
• The Law of Non-Attachment: This law states that we should not be attached
to the fruits of our actions, and that we should not dwell on the past or worry
about the future. In management, this law can be applied to the concept of
detachment. Managers should not be attached to the success or failure of
their team, and they should not take things personally when things go wrong.
This helps to create a more balanced and less stressful work environment.
• The Law of Karma Yoga: This law states that we should perform our actions
without attachment to the results, and that we should do our best to serve
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others without expecting anything in return. In management, this law can be
applied to the concept of servant leadership. Servant leaders are those who
put the needs of their team members first, and who are willing to sacrifice
their own personal needs for the good of the team. This helps to create a
more collaborative and supportive work environment.
• The Law of Rebirth: This law states that we are reborn into different lives
based on our karma from past lives. In management, this law can be applied
to the concept of continuous improvement. Managers should always be
looking for ways to improve their team and their organization, and they
should never be satisfied with the status quo. This helps to create a culture of
innovation and growth in the workplace.
These are just a few of the ways that the Laws of Karma can be applied to
management principles and practices. By understanding these laws, managers can
create a more positive and productive work environment for their team members.
Here are some additional thoughts on how the Laws of Karma can be applied to
management:
• The Law of Cause and Effect can help managers to create a fair and just
workplace. By rewarding good behavior and punishing bad behavior,
managers can create a system where employees are motivated to do their
best work.
• The Law of Non-Attachment can help managers to stay calm and focused
under pressure. By not being attached to the results of their actions,
managers can avoid getting stressed out or making rash decisions.
• The Law of Karma Yoga can help managers to build strong relationships
with their team members. By serving others without expecting anything in
return, managers can create a sense of trust and respect in the workplace.
• The Law of Rebirth can help managers to have a long-term perspective. By
understanding that their actions in the present will affect their future,
managers can make decisions that will benefit their team and their
organization in the long run.
The Laws of Karma are a complex and nuanced set of principles, but they offer a
wealth of wisdom that can be applied to management. By understanding these
laws, managers can create a more positive and productive work environment for
their team members.
Q4) a) In current materialistic world, discuss the relevance of value based
management and its impact on various stakeholders of the organization.
In the current materialistic world, VBM is more relevant than ever. In a world
where businesses are increasingly driven by short-term profits, VBM provides a
framework for creating long-term value for all stakeholders. VBM can help
businesses to:
• Attract and retain top talent: Employees are more likely to be loyal to and
engaged in businesses that share their values. VBM can help businesses to
attract and retain top talent by demonstrating that they are committed to
creating long-term value for all stakeholders.
• Build strong relationships with customers: Customers are more likely to do
business with businesses that they trust and respect. VBM can help
businesses to build strong relationships with customers by demonstrating
that they are committed to providing quality products and services, and that
they are acting in a responsible and ethical manner.
• Gain the support of the community: Businesses that are committed to
creating long-term value for all stakeholders are more likely to gain the
support of the community. This can be in the form of government grants, tax
breaks, and other forms of support.
In addition to the benefits listed above, VBM can also help businesses to:
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Overall, VBM is a valuable approach to management that can help businesses to
create long-term value for all stakeholders. In the current materialistic world, VBM
is more relevant than ever, and it can help businesses to gain a competitive
advantage.
Here are some specific examples of how VBM can impact various stakeholders of
the organization:
• Employees: VBM can help employees to feel more valued and appreciated,
as they will see that the organization is committed to their long-term success.
This can lead to increased employee morale, productivity, and retention.
• Customers: VBM can help customers to feel more confident in the
organization, as they will see that the organization is committed to providing
quality products and services. This can lead to increased customer loyalty
and repeat business.
• Suppliers: VBM can help suppliers to feel more secure in their relationships
with the organization, as they will see that the organization is committed to
fair and sustainable practices. This can lead to increased supplier
collaboration and innovation.
• Community: VBM can help the community to feel more connected to the
organization, as they will see that the organization is committed to giving
back. This can lead to increased community support and goodwill.
Overall, VBM can have a positive impact on all stakeholders of the organization.
By focusing on long-term value creation, VBM can help businesses to create a
more sustainable and successful future for all.
OR
c) Analyse the essence of Business Ethics and highlight various types of
Business Ethics.
Business ethics is a branch of applied ethics that examines ethical principles and
moral or ethical problems that arise in a business environment. It applies to all
aspects of business conduct, including corporate social responsibility, stakeholder
management, and corporate governance.
The essence of business ethics is the application of ethical principles to the
business world. This includes the following:
• Respect for individuals: Business ethics requires that businesses respect the
rights and dignity of individuals. This includes respecting the privacy of
employees, customers, and suppliers.
• Honesty and integrity: Business ethics requires that businesses be honest
and truthful in their dealings with others. This includes avoiding misleading
or deceptive advertising and marketing practices.
• Fairness and justice: Business ethics requires that businesses treat all
stakeholders fairly and justly. This includes avoiding discrimination and
providing equal opportunities for all.
• Responsibility and accountability: Business ethics requires that businesses
be responsible and accountable for their actions. This includes taking steps
to mitigate the negative impacts of their business activities.
There are many different types of business ethics, but some of the most common
include:
• Corporate social responsibility (CSR): CSR is the responsibility of
businesses to act in a way that is beneficial to society as a whole. This
includes activities such as environmental protection, community
development, and employee welfare.
• Stakeholder management: Stakeholder management is the process of
identifying and managing the interests of all stakeholders in a business.
This includes employees, customers, suppliers, investors, and the
community.
• Corporate governance: Corporate governance is the system by which
businesses are managed and controlled. This includes ensuring that
businesses are run in a responsible and ethical manner.
Business ethics is an important field of study because it helps to ensure that
businesses operate in a way that is beneficial to society as a whole. By
understanding the principles of business ethics, businesses can make better
decisions that are more likely to be successful in the long run.
Here are some additional thoughts on the essence of business ethics:
• Business ethics is not just about avoiding doing bad things. It is also about
doing good things. Businesses have a responsibility to use their power and
influence to make the world a better place.
• Business ethics is not just about following the law. It is also about going
beyond the law to do what is right. Businesses should strive to set high
ethical standards for themselves, even if they are not required to do so by
law.
• Business ethics is not just about being nice. It is also about being fair and
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just. Businesses should treat all stakeholders fairly, regardless of their size
or power.
Business ethics is an important concept that can help businesses to be more
successful and to make a positive impact on the world. By understanding the
principles of business ethics, businesses can make better decisions that are more
likely to be successful in the long run.
Q5) a) Discuss the five major ethical issues experienced by the managers with
relevant examples.
Here are five major ethical issues experienced by managers, with relevant
examples:
These are just a few of the many ethical issues that managers may face. It is
important for managers to be aware of these issues and to take steps to avoid them.
By doing so, managers can help to ensure that their businesses operate in a ethical
and responsible manner.
Here are some additional thoughts on the ethical issues faced by managers:
• These issues can be complex and difficult to resolve. There is often no easy
answer, and managers may need to make difficult decisions.
• It is important for managers to have a strong ethical compass. They should
be able to identify ethical issues and make decisions that are in the best
interests of all stakeholders.
• Managers should also be aware of the laws and regulations that apply to their
businesses. They should ensure that their businesses are in compliance with
these laws and regulations.
Ethical issues can be challenging, but they are also an opportunity for managers to
make a positive difference in the world. By taking steps to address these issues,
managers can help to create a more ethical and just society.
OR
c) Discuss the ethical issues in the functional areas of Finance and Human
Resource Management.
Here are some ethical issues in the functional areas of Finance and Human
Resource Management:
Finance
• Conflict of interest: This occurs when a financial manager's personal
interests conflict with the interests of the business. For example, a financial
manager who owns stock in a competitor may be tempted to make
decisions that benefit the competitor, even if it is not in the best interests of
the business.
• Insider trading: This occurs when a financial manager trades securities
based on non-public information that they have obtained as part of their
job. For example, a financial manager who buys stock in a company before
the company announces a major merger may be guilty of insider trading.
• Misrepresentation: This occurs when a financial manager provides false or
misleading information to investors or other stakeholders. For example, a
financial manager who inflates the company's profits or who hides its debts
may be guilty of misrepresentation.
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• Fraud: This occurs when a financial manager intentionally deceives
investors or other stakeholders for personal gain. For example, a financial
manager who embezzles company funds or who engages in other forms of
financial fraud may be guilty of fraud.
Human Resource Management
• Discrimination: This occurs when a human resources manager treats
employees differently based on their race, gender, religion, or other
protected characteristic. For example, a human resources manager who
refuses to hire women or who gives preferential treatment to white
employees may be guilty of discrimination.
• Harassment: This occurs when a human resources manager creates a hostile
or intimidating work environment for employees. For example, a human
resources manager who makes sexual or racial jokes or who repeatedly
belittles employees may be guilty of harassment.
• Wage theft: This occurs when a human resources manager fails to pay
employees their wages or benefits in full or on time. For example, a human
resources manager who fails to pay overtime or who docks employees' pay
for unauthorized absences may be guilty of wage theft.
• Privacy violations: This occurs when a human resources manager violates
the privacy of employees. For example, a human resources manager who
accesses employees' personal records without their consent or who
discloses confidential information about employees may be guilty of
privacy violations.
These are just some of the many ethical issues that financial managers and human
resources managers may face. It is important for these professionals to be aware
of these issues and to take steps to avoid them. By doing so, they can help to
ensure that their businesses operate in an ethical and responsible manner.
Here are some additional thoughts on the ethical issues faced by financial
managers and human resources managers:
• These issues can be complex and difficult to resolve. There is often no easy
answer, and managers may need to make difficult decisions.
• It is important for financial managers and human resources managers to
have a strong ethical compass. They should be able to identify ethical
issues and make decisions that are in the best interests of all stakeholders.
• Financial managers and human resources managers should also be aware of
the laws and regulations that apply to their businesses. They should ensure
that their businesses are in compliance with these laws and regulations.
Ethical issues can be challenging, but they are also an opportunity for financial
managers and human resources managers to make a positive difference in the
world. By taking steps to address these issues, they can help to create a more
ethical and just society.
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