Series: OCT 2022

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QMDDM – OCT 2022 – L2 – Q3 – Digital TV Subscription Transition Analysis

Given a transition matrix for subscribers between Star-Television, Multi-Television, and none, with initial populations, compute the subscriber numbers after 3 years, 5 years, and the long-run equilibrium.

Two competing companies ( Star-Television and Multi-Television) offer digital television service to
a city of 100,000 households. The changes in digital TV subscriptions each year are shown by the
transition matrix P below:

S M None

0.70 0.15 0.15

0.20 0.80 0.15

0.10 0.05 0.70

S

P M

None

The current populations in the three states is

15,000

20,000

65,000

X

.

(a) If P remains the same year after year, find the number of subscribers after
(i) 3 years  (ii) 5 years  (b) If P remains the same year after year, find the number of subscribers in the long run.

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QM – OCT 2022 – L2 – Q2 – Summary Statistics for Weekly Food Expenditure

Using data on weekly food expenditures from families in Accra, calculate the 20th and 80th percentiles, interquartile range, mean, median, standard deviation, and coefficient of skewness; provide a brief description and interpretation of these statistics in the context of the survey results.

The following data were obtained from a survey requesting Thirty (30) different families in Accra
to list their weekly expenditure on food:

105 85 72 64 106 86 87 78 108 145 102 86 74 72 103 94 63 73 89 75 88 88 107 101

(a) Calculate

(i) The 20th percentile expenditures (ii) The 80th percentile expenditures (iii) The interquartile range

(b) Calculate

(i) The mean   (ii) Median   (iii) Standard deviation   (iv) Coefficient of skewness

(c) Write a brief description of the survey results; interpret each of the values of the

statistics in (a) and (b) above

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POM – OCT 2022 – L1 – Q8 – Total Quality Management in Microfinance

Present reasons for preferring TQM, explain characteristics of quality for TQM planning, and factors influencing TQM success in addressing microfinance challenges like queues and staff issues.

Digitized Microfinance Company Limited is encountering quality management challenges and asa result, the top twenty (20) profitable customers are threatening to close their accounts if solutionsare not forthcoming. The challenges are:

(i) Long queues in the ten (10) banking halls,

(ii) High incidence of idle time of ATMs,

(iii) High tardiness among tellers and

(iv) Staff ignorance of policies and standard operating procedures.

The management of Digitized Microfinance Company Limited has approached you to use Total Quality Management (TQM) skills to rectify the situation.

(a) Make a presentation to the management stating five (5) reasons why TQM is preferred to any other management concept? [5 Marks]

(b) List and explain five (5) characteristics of quality that can be considered in the planning and designing of the TQM programme? [10 Marks]

(c) List and explain five (5) factors that can influence the success of the TQM implementation? [10 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q7 – Strategies for Pension Company Management

As General Manager of Awake Pension Company, describe strategies to address high customer complaints, staff conflicts, limited knowledge of organizational design, no strategic direction, and high attrition.

The Board of Directors of Awake Pension Company in Ho has hired you as the General Manager. Upon assumption of duty, you made this observation in the Awake Pension Company:

(a) High customer complaints,

(b) High incidence of conflict among staff,

(c) Staff limited knowledge of importance of the organizational design,

(d) No strategic direction and

(e) High staff attrition rate.

As the General Manager, describe strategies you will operationalize to rectify these anomalies in the Awake Pension Company?

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q6 – Functional Areas of Management

Write short notes on key functional areas: Organizational Behaviour, Marketing Management, Production Management, Operations Management, and Human Resource Management.

Write short notes on the following functional areas of Management:

(a) Organizational Behaviour [5 Marks]

(b) Marketing Management [5 Marks]

(c) Production Management [5] Marks

(d) Operations Management [5 Marks]

(e) Human Resource Management [5 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q5 – Planning and Controlling Functions

Distinguish between planning and controlling, list reasons for planning, and describe limitations of planning in banks.

Every employee is required to perform basic management functions such as planning, organizing, directing and controlling functions at the workplace.

(a) Distinguish between “Planning” and “Controlling” at the workplace? [5 marks]

(b) List five (5) reasons associated with planning at the workplace? [10 Marks]

(c) Describe five (5) limitations linked to planning in banks? [10 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q4 – Organizing Function in Business

Explain and differentiate organizing and organization, elements for designing a bank's structure, and benefits of organizational structure in banking.

Organizing function in any business organization serves as the “architect” that facilitates the implementation of the game plan and for that matter the achievement of the strategic direction.

(a) In your own words how will you explain and differentiate between these two concepts: “Organizing” and “Organization”? [5 Marks]

(b) State and briefly explain five (5) elements you will consider when designing an organizational structure for a named bank in Ghana? [10 Marks]

(c) Describe five (5) benefits associated with organizational structure of a bank? [10 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q2 – Organizational Culture in Banking Competition

Discuss how organizational culture can help a named Ghanaian bank compete in the dynamic financial sector, especially against stiff competition through innovation and agility.

The savings and loans company wing of the financial and banking industry of Ghana continues to face stiff competition from other financial institutions; and as a result, the former must search for innovative strategies, including digitalization to remain agile and competitive.

Discuss means through which organizational culture can facilitate a named bank in Ghana to compete in this dynamic financial landscape?

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q1 – Business Environment in Banking

Discuss the external and internal environments of a bank, factors influencing them, and how SWOT analysis can drive changes in Ghana's banking sector.

The Ghanaian business environment has become very dynamic, hence all managers of business

organizations must be conversant with the factors, rate of change and effects on the economy.

(a) Describe what is meant by the external environment and the internal environment of a named bank? [5 Marks]

(b) List any three (3) factors of the internal environment and two (2) factors of the external environment and mention their importance in managing a bank? [10 Marks]

(c) List and explain with examples, how SWOT Analysis can bring about change(s) of the banking industry of Ghana? [10 Marks]

[Total Marks – 25]

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PBL – OCT 2022 – L1 – Q8 – Rule in Rylands v Fletcher and Defences

Discuss the Rule in Rylands v Fletcher and available defences.

(a) Discuss the Rule in Ryland’s v. Fletcher 1868. (10 marks)

(b) What are the Defences available to the Rule in Ryland’s .V. Fletcher? (10 marks)

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EIB – OCT 2022 – L1 – Q6 – Banking Functions and Reserves

Functions of banks, effects of rate changes, non-bank roles, and reserve calculations.

(a) Mention any four traditional functions of a commercial bank. (4 marks)

(b) Mention any two effects of a bank rate changes. (4 marks(c) What are the main functions

(c) What are the main functions of the non-bank financial institutions? (4 marks

(d(d) A commercial bank has reserves totaling GHC 40000 and debt liabilities of GHC 100,000. If the reserve requirement is $

i) Calculate the bank’s cash ratio. (4 marks)

ii) How much is the bank required to hold in reserve? (4 marks (Total marks:20)

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EIB – OCT 2022 – L1 – Q5 – Free Trade and Exchange Rates

Effects of free trade, barriers, arguments for restrictions, and factors affecting imports and exchange rates.

(a) State two positive effects of free trade. (4 marks)

(b) Mention any two non-tariff barriers to free trade. (4 marks)

(c) List two arguments used to support trade restrictions. (4 marks)

(d) State two factors that may cause imports to rise. (4 marks)

(e) State two factors that may cause the foreign exchange rate to change. (4 marks)

(Total marks:20)

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EIB – OCT 2022 – L1 – Q4 – Monopoly Characteristics and Profit

Conditions, features, limits, profit determination, and examples of monopoly.

(a) Under what condition may a pure monopoly exist? (4 marks

(b) Name any four characteristics of a pure monopoly. (4 marks (

c) Name any two limits of monopoly power. (4 marks

(d) How does the monopolist determine his normal profit? (4 marks

(e) What type of monopoly is postal service? (4 marks

(Total marks:20)

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EIB – OCT 2022 – L1 – Q3 – Price Mechanism, Elasticity, and Costs

Advantages of price mechanism, supply elasticity factors, costs, and profit computation.

(a) Mention two advantages of price mechanism. (4 marks

(b) Mention two factors that determine price elasticity of supply. (4 marks

(c) What are the firm’s explicit costs? (4 marks

(d) The fixed cost and the variable cost of production are collectively termed what? (4 marks

(e) A competitive firm’s price is GHC10, ATC is GHC 5, quantity supplied is 20, calculate its profit level. (4 marks

(Total marks:20)

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EIB – OCT 2022 – L1 – Q2 – Demand Concepts and Elasticity

Definitions and factors related to demand, elasticity, and consumer behavior.

(a) Define the term demand. (4 marks

(b) Name any two factors that may promote increasing quantities of a product to be bought at each possible price. (4 marks)

(c) Define the term taste and preference for a product. (4 marks)

(d) In unity price elasticity of demand, price changes cause what effect on total revenue? (4 marks

(e) Give two reasons why you buy more quantities of a commodity when your income rises. (4 marks

(Total marks:20)

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EIB – OCT 2022 – L1 – Q1 – Needs, Wants, and Economic Systems

Basic concepts of needs, wants, necessities, luxuries, price factors, and economic systems.

(a) In Economics, needs and wants of man are collectively termed what? (4 marks)

(b) Name any four main needs of man. (4 marks)

(c) Distinguish between necessity and luxury. (4 marks)

(d) Name the ONE main factor which determines price. (4 marks)

(e) Define the term economic system. (4 marks) (Total: 20 marks)

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CML – OCT 2022 – L3 – Q6 – Credit Appraisal

Define Credit Appraisal and discuss five key principles underlying its process.

(a) What is Credit Appraisal and what is its primary objective? [5 Marks]

(b) Enumerate and discuss the five (5) key principles underlying credit appraisal. [15 Marks]

[Total: 20 marks]

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CML – OCT 2022 – L3 – Q5 – Credit Portfolio Management

Define Credit Portfolio Management and identify five key principles or procedures for its effective management.

(a) What is Credit Portfolio Management? [5 Marks]

(b) Identify five (5) key principles and/or procedures for the management of Credit Portfolio Management? [15 Marks]

[Total: 20 Marks]

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CML – OCT 2022 – L3 – Q4 – Loan Consolidation for James Addington

Evaluate a three-year loan request of GHC 80,000 and loan consolidation for James Addington, a retiring civil servant with existing debts and high expenses.

James Addington has been your customer for the past forty years, and is due for retirement in the next three years. He has applied for a short term loan of three years to enable him to roof his building and internal fittings and painting of the house. He estimates that it would cost him GHC 80,000,00. He is currently residing in rented accommodation for which he is paying a monthly rent of GHC 1,500,00 per month. He is the Principal Director of the Ministry of Agriculture and earns a net monthly salary of GHC 12,000,00.

He has operated a satisfactory account until in recent times when his revolving overdraft of GHC 5,000,00 has been drawn to the hilt. His retirement home is a four bedroom storey building located close to Aburi. In addition to the revolving overdraft he has a car loan balance of GHC 18,000 with six months to pay. He is already in arrears of two monthly instalments. The monthly instalment on the car loan amounts to GHC 3,000,00.

You notice the following outgoings on his account with you:

Standing order to Hire Purchase Company 500,00

Electricity Bill 350,00

Water Bill 200,00

Life Insurance 300,00

Health Insurance 200,00

The following information is also gleaned from his personal loan application form

Petrol expenses 1,000,00

Housekeeping expenses 1,000,00 per week

You have observed that he uses two different cars, a Mercedez Benz, which your bank financed and an Opel cadet Car, which he indicates to you is ten years old. He has been a source of good business introductions to you and so you really wish to assist him. He has offered to support the application with a security over his share certificate in an unlisted company, Bonreve Ltd., a manufacturer of cocoa beverages. The shares have a nominal value of GHC 5.00 per share and he holds four thousand of the shares.

James is married and has seven children who are all still in school. The first three are in the university and he pays school fees of GHC 5.000.00 per semester for each of them.

The next three are in senior high school and he pays GHC 1.000.00 per semester for each of them.

The last child is in Junior High School and he pays school fees of GHC 1.500.00 per term.

He is pleading with you to consolidate all his outstanding loans with you as well as the facility owed the hire purchase company.

How would you respond to his proposition?

[20 Marks]

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CML – OCT 2022 – L3 – Q3 – Loan for Property Purchase and Renovation

Critically examine a five-year GHC 7.3 million loan request from Bolombo Property Investors Ltd for purchasing and renovating a ten-storey property in Takoradi, with the building as security and directors' guarantees.

Bolombo Property Investors Ltd. is a property investment company that is involved in the renting of commercial property to various commercial interests throughout the country. Their modus operandi is to purchase existing property, renovate them and rent them out, or to develop property from the scratch and rent them out. Occasionally they sell out property to improve their cash flows. Bolombo Property Investors Ltd. is a company owned by Mr. Joshua Broson, aged 62 and his wife Mabel, aged, 52 holding 60 % and 40 % shares respectively. The couple have been wedded for the past five years and have three children of school going age. Management roles in the company are shared between the couple who are both qualified Civil Engineers by profession. Joshua serves as the CEO whilst his wife serves as General Manager and Accountant. To support them they have employed an accounts clerk Kwesi Mendson, aged 35 who has a diploma in accounting from the University of Ghana, Legion. Bolombo Property Investors has five properties in Accora, one in Takoradi and three in Kumasi. The company has identified a ten-storey property in Takoradi that has been put on sale by an expatriate Property Developer who is leaving the country. The price on offer is GHC 5.000.000.00. They think they can quickly renovate the property andThe unit is in a poor state of repair but Bolomb is believes it could fetch a good price if properly renovated. The building is located in the heart of the city and along the main high street of the city.

Bolombb’s plan is to rent the ground floor to a bank or savings and loans company, and the units in in the upper floor to various types of businesses including supermarkets, restaurants and business oon. His estimates for the renovation are as follows:

Item Cost (GHC)
Rewiring and 750,400,000.00
Plumbing 850,000.00
Internal fittings 500,000.00
Alocobond panelling 500,000.00
Painting 200,000.00
Parking lot 100,000.00
Total 2,000,400,000.00

Estimated Rental for the property is as follows: | as follows| as follows| as follows| as follows|| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows| as follows|5,000.00.00| as follows| as follows|CIB GH 10-22

He brings the proposal to you for consideration. He proposes that the building would serve as security. In addition a joint and several guarantee would be provided by the directors of the company. He is therefore requesting for a five year loan facility of GHC 7,300,000,00 to finance the purchase and renovation of the project. He is expecting a rate of return of 25%

Critically examine his proposition.

[30 Marks]

Note on Table Correction: The table in the attachment contains errors (e.g., “Rewingring and” likely means “Rewiring and Electrical,” and “750 40 00000” is ambiguous). I assume “750 40 00000” is a typo for GHC 750,000.00, as the total renovation cost (GHC 2,000,400,000.00) seems inflated for a single property. A realistic total of GHC 2,300,000.00 is assumed (summing corrected figures: 750,000 + 850,000 + 500,000 + 500,000 + 200,000 + 100,000). The “Estimated Rental” section is incomplete; I assume rental projections support the 25% return claim, to be verified.

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