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Chapter 5

Business Administration and Management

Lok Sewa Aayog (Public Service Commission) past exam questions

Past questions and answers

2 questions set from this chapter. Most repeated first.

  • 2078 · 2nd Paper · 10 marks
  • 2078 · 2nd Paper · 10 marks

Write short notes on:
a) Business ethics in Nepal
b) Role of marketing department in Nepal Airlines

Answer

a) Business ethics in Nepal

Meaning: Business ethics refers to the moral principles and standards of conduct that guide business activities — honesty, fairness, transparency, accountability and social responsibility — beyond mere legal compliance.

Legal and institutional framework in Nepal:

  • Companies Act, 2063 (2006) — provisions on good corporate governance, duties of directors, audit and disclosure.
  • Securities Act, 2063 (2007) and SEBON — regulates listed companies, insider trading and disclosure of price-sensitive information.
  • Nepal Rastra Bank directives — anti-money-laundering, know-your-customer, fair lending and consumer protection for banks and financial institutions.
  • Competition Promotion and Market Protection Act, 2063 (2007) — prohibits cartels, abuse of dominant position and unfair trade practices; the Consumer Protection Act, 2075 separately guards against adulteration, misleading advertisement and overcharging.
  • Labour Act, 2074 — minimum wage, safe working conditions and workers' welfare.
  • Commission for the Investigation of Abuse of Authority (CIAA) — checks corruption in public procurement and licensing.
  • Codes of conduct of FNCCI, CNI and professional bodies (ICAN, Nepal Bar Council).

Prevailing situation and problems:

  • Widespread tax evasion, under-invoicing and informal (unregistered) transactions.
  • Cartelisation and syndicate practices in transport, education and trade.
  • Bribery and kickbacks in public procurement and licensing.
  • Poor enforcement: weak regulatory capacity, delayed justice and political protection.
  • Low consumer awareness and weak whistle-blower protection.

Measures for improvement:

  1. Strict and impartial enforcement of laws with credible penalties.
  2. Mandatory disclosure and independent audit; strong role for SEBON, NRB and ICAN.
  3. Effective whistle-blower protection and consumer awareness campaigns.
  4. Ethical codes, ethics committees and ethics training within firms.
  5. Transparency in public procurement (e-GP) and reduction of discretionary licensing.
  6. Business schools and professional bodies to teach and promote ethical practice.

Conclusion: Business ethics in Nepal is improving in form (laws and institutions) but remains weak in practice. Sustained enforcement, political will and a strong ethical culture in the private sector are essential for building trust, attracting investment and ensuring sustainable, inclusive growth.


b) Role of marketing department in Nepal Airlines

Background: Nepal Airlines Corporation (NAC), established in 2015 BS (1958 AD) as Royal Nepal Airlines Corporation and now governed by the Nepal Airlines Corporation Act, 2019 BS, is the national flag carrier. Its marketing department is the commercial arm responsible for selling and promoting its air transport services.

Key roles:

  1. Market research and demand analysis — studying passenger and cargo demand on domestic and international routes, load factor trends, competitor fares (Himalaya Airlines, foreign carriers) and seasonal patterns (tourist season, festivals, migrant labour traffic).
  2. Product/service planning — recommending route expansion or suspension, flight frequency, aircraft deployment, cabin class configuration and in-flight service standards based on market needs.
  3. Pricing and revenue management — fixing fares and fare classes, promotional fares, group and agent discounts, and yield/load-factor management to maximise revenue per available seat kilometre.
  4. Distribution and sales — managing sales offices, general sales agents (GSAs), travel agents, corporate accounts and online booking channels; issuing and controlling tickets.
  5. Promotion and advertising — brand building as the national carrier, advertising in print, electronic and digital media, participation in tourism fairs, and joint promotion with Nepal Tourism Board.
  6. Customer relationship and service quality — handling reservations, frequent-flyer programmes, complaints and feedback, and maintaining service standards to build loyalty.
  7. Cargo marketing — promoting belly-hold and freighter cargo services for exports (handicrafts, garments, herbs) and imports.
  8. Market intelligence and liaison — monitoring competitors' schedules and fares, and coordinating with CAAN, IATA and international aviation bodies on traffic rights and bilateral agreements.
  9. Revenue accounting and control — ensuring proper billing, interline settlement and control over ticket stock and credit sales.

Problems faced: capacity shortage due to limited aircraft, strong competition from private and foreign airlines, price-sensitive migrant-worker market, and political interference in management.

Conclusion: The marketing department of Nepal Airlines is central to its commercial survival — it identifies profitable markets, sells capacity, builds the national carrier's brand and protects market share. Its effectiveness, however, depends on fleet availability, autonomy in pricing and professional management free from political influence.

Answer checked by Claude Sonnet · Oct 21, 2026

Test yourself · 2 MCQs

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  • 2078 · 2nd Paper · 10 marks

व्यवसायिक सूचना प्रणाली (Marketing information system) भन्नाले के बुझ्नुहुन्छ ? व्यवसायिक सूचना प्रणालीका तत्वहरु (components) उल्लेख गर्नुहोस् । साथै यसले व्यवसायको के कसरी सहयोग गर्दछ ?

Answer

व्यवसायिक सूचना प्रणाली (Marketing Information System — MIS)

व्यवसायिक सूचना प्रणाली भन्नाले व्यवसाय वा संस्थाले बजारसम्बन्धी आवश्यक सूचना तथा तथ्याङ्क सङ्कलन, विश्लेषण, भण्डारण र वितरण गर्ने व्यवस्थित तथा निरन्तर प्रक्रियालाई बुझाउँछ। यसलाई "सूचना व्यवस्थापनको संरचना" (structure for managing information) पनि भनिन्छ। यसको मुख्य उद्देश्य व्यवस्थापकलाई यथार्थ, समयसापेक्ष र उपयोगी सूचना उपलब्ध गराई निर्णय प्रक्रियालाई सहज, वैज्ञानिक र प्रभावकारी बनाउनु हो। फिलिप कोटलरका अनुसार, "व्यवसायिक सूचना प्रक्रिया भन्नाले व्यवस्थापकलाई सूचना आवश्यकता पहिचान गर्न, सूचना विकास गर्न र सूचना वितरण गर्न सहयोग पुर्याउने मानिस, उपकरण र प्रक्रियाको संरचनालाई जनाउँछ।"

व्यवसायिक सूचना प्रणालीका तत्वहरू (Components)

१. आन्तरिक अभिलेख प्रणाली (Internal Records System): बिक्री, लागत, मूल्य, स्टक, उत्पादन, ग्राहक आदिको आन्तरिक तथ्याङ्क। २. व्यवसायिक बुद्धि प्रणाली (Marketing Intelligence System): बाह्य वातावरण, प्रतिस्पर्धी, बजार प्रवृत्ति र उपभोक्ता व्यवहारसम्बन्धी सूचना। ३. व्यवसायिक अनुसन्धान प्रणाली (Marketing Research System): विशिष्ट समस्या समाधानका लागि वैज्ञानिक विधिबाट गरिने अध्ययन। ४. व्यवसायिक निर्णय समर्थन प्रणाली (Marketing Decision Support System): तथ्याङ्क विश्लेषण, मोडेल तथा सफ्टवेयरमार्फत वैकल्पिक निर्णयको मूल्याङ्कन। ५. सूचना विश्लेषण तथा वितरण प्रणाली (Information Analysis and Distribution): सङ्कलित सूचनाको विश्लेषण गरी सही समयमा सही व्यक्तिलाई उपलब्ध गराउने व्यवस्था।

व्यवसायको सहयोग (Contribution to Business)

१. यथार्थ निर्णय: बजार माग, मूल्य, उत्पादन र वितरणसम्बन्धी निर्णय तथ्यमा आधारित हुन्छ। २. ग्राहक आवश्यकता पहिचान: उपभोक्ताको रुचि, स्वाद र अपेक्षा बुझी उपयुक्त उत्पादन तयार गर्न सकिन्छ। ३. प्रतिस्पर्धात्मक लाभ: प्रतिस्पर्धीको रणनीति तथा बजार प्रवृत्तिको जानकारीबाट अग्रता कायम गर्न सकिन्छ। ४. जोखिम न्यूनीकरण: अनिश्चितता र बजार जोखिम घटाई लगानी सुरक्षित बनाउन सहयोग पुग्छ। ५. स्रोतको कुशल उपयोग: उत्पादन, बजार र वितरण प्रणालीलाई मागअनुसार व्यवस्थापन गरी लागत घटाउन सकिन्छ। ६. योजना तथा नियन्त्रण: दीर्घकालीन योजना निर्माण र कार्यसम्पादनको नियन्त्रण सहज हुन्छ। ७. नवीनता तथा विकास: नयाँ उत्पादन, नयाँ बजार र नयाँ अवसर पहिचान गर्न मद्दत पुग्छ।

निष्कर्ष: व्यवसायिक सूचना प्रणाली आधुनिक बजार व्यवस्थापनको अपरिहार्य अङ्ग हो। यसले सही सूचनामार्फत सही निर्णय गर्न सघाउँदै व्यवसायको प्रतिस्पर्धात्मक क्षमता, नाफा र दिगोपन सुनिश्चित गर्दछ।

Answer checked by Claude Haiku · Oct 21, 2026

Test yourself · 2 MCQs

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Questions from CAAN Lok Sewa Sr. Officer 7th Internal (Sr. Officer 7th Level · 2nd Paper · 2078) and CAAN Lok Sewa Sr. Officer 7th Law (Sr. Officer 7th Level · 2nd Paper · 2078). Answers are written for this site; check them against your class notes.