2023 NABTEB GCE Advanced Business/Construction Management Answers

NABTEB Government Answers



The span of control refers to the number of subordinates that a supervisor or manager can effectively manage and supervise. It determines the hierarchical structure of an organization and the number of direct reports that a manager or supervisor can handle efficiently.

Motivation refers to the internal or external factors that drive individuals to take action, set and achieve goals, and maintain their commitment and effort towards those goals. It is the force that energizes and directs behavior, exerting a significant influence on an individual’s level of engagement, performance, and overall satisfaction.

Personnel policy development refers to the process of creating a set of guidelines, rules, and procedures that govern the management and administration of human resources within an organization, specifically related to hiring, training, employment conditions, and employee relations.

A discharge of contract refers to the termination or extinguishment of the contractual obligations agreed upon by the parties involved. It occurs when the parties are released from their respective duties and responsibilities under the contract, thus bringing the contractual relationship to an end.


(i) Goal Clarity: Clearly communicate the objectives and goals to all stakeholders involved. Ensure that everyone understands the specific targets and expectations that need to be achieved.

(ii) Manager-Employee Collaboration: Foster collaboration between managers and employees. Involve employees in the goal-setting process to enhance their commitment and sense of ownership towards the objectives.

(iii) Cascading Objectives: Align individual goals with the broader organizational objectives. Ensure that each employee’s objectives contribute towards the overall strategic goals of the organization.

(iv) Regular Performance Reviews: Conduct regular performance reviews to monitor progress. Provide feedback and guidance to employees, addressing any issues or challenges that may arise.

(v) Accountability and Measurement: Establish clear metrics and indicators to measure progress towards objectives. Hold individuals accountable for their performance, providing rewards or recognizing achievements when objectives are met.

(vi) Continuous Improvement: Encourage continuous improvement and learning. Regularly reassess objectives to ensure their relevance and adjust them as needed based on changing circumstances.


(i) Historical Costing: This method involves determining costs based on actual past expenses. It relies on historical records to develop cost estimates, which are then applied to future periods.

(ii) Absorption Costing: Absorption costing considers all costs, both fixed and variable, incurred in the production process. It assigns a portion of indirect costs to each unit.

(iii) Marginal Costing: Marginal costing focuses on the variable costs involved in producing one additional unit. Fixed costs are treated separately and are not considered for decision-making purposes.

(iv) Activity-Based Costing (ABC): ABC assigns costs to specific activities or processes based on their consumption of resources. It provides a more detailed and accurate picture of costs, especially when multiple products or services are involved.

(v) Standard Costing: Standard costing establishes predetermined costs for elements of the production process. It compares actual costs against the predetermined standards to identify variations, allowing for cost control and performance evaluation.

(vi) Target Costing: Target costing sets the selling price of a product or service first and then determines the cost based on a desired profit margin. It focuses on cost reduction strategies during the design and development stages to achieve the target cost.

Compound interest refers to the interest that is earned on both the initial amount of principal and any previously earned interest. It involves the compounding of interest over time, leading to exponential growth of the investment or loan. Compound interest allows the interest to earn interest, resulting in larger gains or larger debts over time.


(i) Quantity: The minimum level of stock refers to the minimum quantity of stock that should be maintained, while the maximum level of stock represents the maximum quantity of stock that can be held.

(ii) Reordering: The minimum level of stock triggers the need for reordering more stock, while the maximum level of stock indicates the point at which no further stock should be ordered.

(iii) Timing: The minimum level of stock helps determine when to place an order for replenishment, while the maximum level of stock influences the timing of when to stop ordering.

(iv) Demand: The minimum level of stock is set based on anticipated demand and ensures that stock is available during low-demand periods, while the maximum level of stock considers high-demand periods to prevent excess inventory.

(v) Cost: Maintaining stock at the minimum level ensures that storage costs are minimized, while exceeding the maximum level can result in higher holding costs due to unnecessary inventory.

(vi) Risk: Falling below the minimum level of stock carries the risk of stockouts and unfulfilled customer orders, while exceeding the maximum level increases the risk of obsolescence and excess inventory.


(i) Clear and Concise Message: The message should be clear and easy to understand, avoiding any ambiguity or confusion.

(ii) Active Listening: The receiver should actively listen to the speaker, paying attention to both verbal and non-verbal cues.

(iii) Feedback: There should be a feedback mechanism where the receiver provides their understanding or clarifies any doubts.

(iv) Proper Timing: Communication should happen at the right time to ensure relevance and effectiveness.

(v) Proximity: The distance between the sender and receiver should be considered to ensure effective communication.

(vi) Appropriate Medium: The appropriate medium, such as face-to-face discussions, phone calls, or written communication, should be selected based on the nature of the message and the audience.

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(vii) Emotional Intelligence: Understanding and managing emotions is crucial in communicating effectively, as it helps in establishing rapport and empathy.

(viii) Non-Verbal Communication: Non-verbal cues like facial expressions, body language, and tone of voice should align with the intended message to avoid any misinterpretation.

A factory is a building or facility where goods or products are manufactured or assembled on a large scale. It is equipped with machinery, tools, and equipment necessary for various industrial processes.



(i) Express Contract: This is a contract established by the explicit agreement of the parties involved. It can be either oral or written, but it clearly spells out the terms and conditions of the agreement.

(ii) Implied Contract: Unlike an express contract, an implied contract is not explicitly documented or orally discussed. Instead, it is formed based on the actions, conduct, or circumstances of the parties involved. The terms are inferred from their behavior or the nature of their relationship.

(iii) Unilateral Contract: In a unilateral contract, one party makes a promise in exchange for the performance of a specific action by the other party. The contract becomes binding only when the action is completed. For example, rewards or contests often involve unilateral contracts.

(iv) Bilateral Contract: A bilateral contract is formed when both parties make promises to each other and are mutually obligated to perform the agreed-upon actions. This is the most common type of contract, where offers and acceptances are exchanged.

(v) Executed Contract: An executed contract is a contract in which all parties have fulfilled their obligations under the agreement. In other words, both parties have completed their part of the deal.

(vi) Executory Contract: An executed contract, an executory contract is one where the parties involved have yet to complete their obligations. The contract is still ongoing, and performance or payment is expected in the future.


(a) Express Contract:
(i) Offer and Acceptance: The agreement is reached through a clear and explicit offer by one party and the acceptance of that offer by the other party.
(ii) Oral or Written Communication: The terms and conditions of the contract are expressed either orally or in writing.
(iii) Clear Intent: The parties involved clearly express their intention to enter into a legally binding contract.

(b) Implied Contract:
(i) Conduct: The contract is formed based on the conduct, actions, or behavior of the parties involved, rather than through explicit written or oral communication.
(ii) Understanding: The parties involved have an implied understanding of the terms and obligations of the contract.
(iii) Implied by Law: The contract is formed by operation of law, where the circumstances and actions of the parties indicate an intent to be bound.

(c) Unilateral Contract:
(i) One-sided Promise: One party makes a promise or offer that is accepted if the other party performs a specified act.
(ii) Acceptance by Performance: The acceptance of the offer is through the completion of the requested act or performance.
(iii) No Mutual Obligations: Only the performing party has an obligation upon acceptance, while the other party is not obligated until the act is performed.

(d) Bilateral Contract:
(i) Promise for a Promise: Both parties involved make promises to fulfill certain obligations.
(ii) Mutual Assent: There is an agreement and understanding between the parties regarding the terms and conditions of the contract.
(iii) Two Obligations: Both parties have reciprocal obligations to perform under the contract.

(e) Executed Contract:
(i) Completed Performance: Both parties have fulfilled their obligations under the contract.
(ii) Binding Agreement: The contract is fully executed and no further actions or performances are required.
(iii) Legal Consequences: The rights and liabilities of the parties under the contract have been discharged.

(f) Executory Contract:
(i) Ongoing Obligations: The contract is not fully performed yet, and both parties still have outstanding obligations.
(ii) Future Performance: The parties are still required to fulfill their respective contractual obligations.
(iii) Unfulfilled Promises: The contract is still in progress, and the obligations outlined in the agreement are yet to be accomplished.


(i) Fixed Costs: These costs do not change with changes in production or sales level. They remain constant over a certain period, regardless of the number of units produced or sold.

(ii) Variable Costs: These costs vary in direct proportion to the level of production or sales. As the volume of production or sales increases, variable costs increase, and vice versa.

(iii) Semi-Variable Costs: Semi-variable costs, also known as mixed costs, have both fixed and variable cost components. They include elements of both fixed and variable costs.

(iv) Direct Costs: Direct costs are directly attributable to the production or sale of a specific product or service. For example, the cost of raw materials or labor specifically used for a particular product.

(v) Indirect Costs: Indirect costs, also called overhead costs, do not directly relate to specific products or services. They are incurred for the overall operation of the business, such as rent, utilities, or administrative expenses.

(vi) Manufacturing Costs: These costs include direct materials, direct labor, and manufacturing overheads. They are incurred in the production process of goods.

(vii) Marketing and Advertising Costs: These costs include expenses related to promoting and advertising products or services, such as marketing campaigns, sales team salaries, or advertising materials.

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(viii) Research and Development Costs: Research and development costs refer to the expenses incurred in creating or improving products or processes. These costs cover activities like research, product design, and technology development.

(ix) Opportunity Costs: Opportunity costs represent the value of the next best alternative foregone when a decision is made. It reflects the potential benefits or profits that could have been obtained if an alternative option had been chosen.

(x) Social Costs: Social costs are the economic costs associated with the negative impacts of a business’s activities on the environment, public health, or society at large. These costs, such as pollution or resource depletion, are often externalized by businesses.


(i) Proximity to raw materials: Factories tend to locate close to the source of raw materials to reduce transportation costs and ensure a steady supply.

(ii) Transportation infrastructure: Access to proper roads, railways, ports, and airports is crucial for smooth transportation of both raw materials and finished goods.

(iii) Labor availability: A skilled and available workforce is essential for the smooth functioning of a factory. Factors such as population density, education levels, and local labor market conditions should be considered.

(iv) Market proximity: Factories may need to be located near the target market to reduce shipping costs and respond quickly to customer demands.

(v) Utility services: Access to reliable and affordable utilities such as water, electricity, gas, and telecommunications is important for uninterrupted operations.

(vi) Environmental regulations: Compliance with environmental regulations is critical. Factories must consider factors such as air and water quality, waste management, and sustainability measures.

(vii) Political stability: A stable political environment minimizes the risk of disruptions due to political unrest, ensuring a safe and secure business environment.

(viii) Tax incentives and regulations: Governments often offer tax incentives and regulatory benefits to attract businesses. Factories must assess the tax burden and regulatory framework of potential locations.

(ix) Land availability and cost: Sufficient land should be available to accommodate the necessary factory facilities. The cost and availability of land should be considered.

(x) Infrastructure and support services: Access to support services such as banking, legal services, medical facilities, and educational institutions should be evaluated to ensure a sustainable and supportive business ecosystem.


Policy formation refers to the process through which policies are developed, proposed, and implemented within an organization, government, or other governing bodies. It involves systematically analyzing and addressing complex issues, setting goals and objectives, identifying potential solutions, and making informed decisions.


(i) Planning: This involves setting goals, defining objectives, and creating a roadmap to achieve them. It includes making strategic plans, tactical plans, and operational plans.

(ii) Organizing: This involves arranging and allocating resources to achieve organizational goals. It includes designing the organizational structure, establishing job roles, and defining reporting relationships.

(iii) Staffing: This function involves recruiting, selecting, and hiring the right individuals for the organization. It includes workforce planning, job analysis, and talent acquisition.

(iv) Directing: This function focuses on guiding and supervising employees to perform their tasks effectively. It includes providing instructions, motivating employees, and resolving conflicts.

(v) Coordinating: This involves synchronizing and harmonizing various activities and departments within the organization. It includes ensuring teamwork, facilitating communication, and aligning efforts towards common goals.

(vi) Controlling: This function involves monitoring performance, comparing it with predetermined standards, and taking corrective actions if necessary. It includes setting performance targets, measuring progress, and implementing quality control measures.

(vii) Decision-Making: This involves analyzing and evaluating different alternatives to make informed choices. It includes identifying problems, gathering information, and selecting the best course of action.

(viii) Communicating: This function focuses on transmitting information and ideas within the organization. It includes upward, downward, and lateral communication to foster effective information flow across all levels.

(ix) Motivating: This function involves inspiring and energizing employees to improve their performance and contribute to the organization’s success. It includes recognizing achievements, providing rewards, and creating a positive work environment.

(x) Innovating: This function emphasizes fostering creativity and encouraging continuous improvement within the organization. It includes embracing new ideas, adopting innovative practices, and engaging in research and development activities.

Collective bargaining is a process through which representatives of a group of workers, often a labor union, negotiate with an employer or a group of employers to determine the terms and conditions of employment.

An industrial dispute refers to a disagreement or conflict between workers, labor unions, or employees and employers in an industry or workplace setting. These disputes can arise from various issues related to employment conditions, such as wages, working hours, benefits, job security, workplace safety, and other terms and conditions of employment.

Performance appraisal refers to the systematic process of assessing an individual employee’s job performance and providing valuable feedback on their achievements, strengths, weaknesses, and areas for improvement.

The managerial grid, developed by Robert R. Blake and Jane S. Mouton, is a leadership model that evaluates a leader’s concern for people and concern for production. It is represented on a grid with two axes, one indicating concern for people (y-axis) and the other indicating concern for production (x-axis).



(i) Ideation and Design: This stage involves brainstorming and conceptualizing ideas for new products. Designers create sketches, mock-ups, and prototypes to visualize the final product.

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(ii) Research and Development: Once a design is finalized, research and development teams explore various materials, technologies, and production methods to optimize the product’s performance and cost-effectiveness.

(iii) Material Sourcing: In this stage, manufacturers source and procure the required raw materials and components for production. This may involve negotiations with suppliers, assessing quality standards, and ensuring a reliable supply chain.

(iv) Manufacturing Planning: Manufacturers plan the production process, including determining the required resources, setting up production lines, and creating a detailed timeline to ensure efficient and timely production.

(v) Prototyping and Testing: Before mass production begins, prototypes are made to validate the design and functionality of the product. Rigorous testing is conducted to identify any flaws or areas for improvement.

(vi) Production: This stage involves the actual mass production of the item. Raw materials are transformed into finished products using various manufacturing techniques, such as assembly lines, machining, molding, or 3D printing.

(vii) Quality Control: Quality control measures are implemented throughout the production process to ensure that each item meets specific quality standards. Inspections, testing, and statistical analysis are performed to identify and rectify any defects or deviations.

(viii) Packaging and Labeling: Once the items are manufactured and pass quality control, they are packaged and labeled based on the product’s requirements. Packaging may include boxes, containers, or blister packs, and labels provide necessary information and branding.

(ix) Distribution and Logistics: In this stage, the finished items are transported from the manufacturing facility to various distribution centers, wholesalers, retailers, or directly to customers. Logistics, such as transportation, warehousing, and inventory management, are optimized to ensure timely delivery.

(x) Marketing and Sales: The final stage involves marketing and promoting the product to potential customers. Sales channels are established, and various marketing strategies are employed to create awareness, generate interest, and drive sales.


(i) Clarity and Precision: The tendering arrangement may necessitate providing more detailed and specific information in the specification to ensure that all bidders have a clear understanding of the project requirements.

(ii) Technical Requirements: The tendering process may influence the inclusion of specific technical requirements in the specification to ensure that bidders possess the necessary expertise and resources to complete the project successfully.

(iii) Performance Standards: The specification may need to outline performance standards that bidders must meet in order to be considered for the tender, ensuring fairness and evaluating the capabilities of the potential contractors.

(iv) Compliance and Regulations: Tendering arrangements may require the inclusion of compliance and regulatory standards within the specification to ensure that bidders adhere to legal and industry-specific requirements.

(v) Qualification Criteria: The specification may include qualification criteria that bidders must meet, such as certifications, licenses, or prior experience, to ensure that only capable and qualified bidders participate in the tender.

(vi) Delivery Timeframe: The tendering arrangement may require specifying the expected delivery timeframe, including milestones and completion dates, to ensure that bidders understand the project schedule and can commit to the required timelines.

(vii) Quality Assurance: The specification may incorporate quality assurance measures to ensure that the final deliverables meet the desired quality levels. This can include quality control procedures, inspections, testing criteria, etc.

(viii) Pricing Structure: The tendering arrangement may influence the inclusion of pricing-related information within the specification, such as cost breakdown and payment terms, to facilitate accurate and fair bidding.

(ix) Evaluation Criteria: The specification may outline the evaluation criteria that will be used to assess the submitted bids. This can include factors such as price, technical capability, past performance, and compliance with requirements.

(x) Intellectual Property Rights: The tendering arrangement may require explicit terms regarding intellectual property rights ownership and usage of the project deliverables. This ensures clarity and avoids potential disputes in the future.


(i) Standard Units of Measurement: All measurements should be carried out using standard units of measurement defined by the recognized authorities in the construction industry. These units include meters, centimeters, and millimeters for linear measurements, square meters for area measurements, and cubic meters for volume measurements.

(ii) Clear Measurement Guidelines: Proper measurement guidelines should be followed to ensure consistency and accuracy. These guidelines may include procedures for measuring various building elements such as walls, floors, roofs, and foundations, as well as specific rules for handling irregular shapes, chamfers, slopes, and curves.

(iii) Direct Measurements: Whenever possible, direct measurements should be taken from the actual building elements, rather than relying on scaled drawings or assumptions. This helps in minimizing errors and providing accurate measurements.

(iv) Inclusion of Relevant Components: Measurements should include all relevant components and elements of the building work, such as walls, columns, beams, slabs, doors, windows, staircases, and finishes. Each component should be measured separately, ensuring that accurate quantities are captured for each item.

(v) Recording Accurate Measurements: Measurements should be recorded accurately, ensuring proper units are used, and decimals are rounded off appropriately according to the specified precision. This helps in avoiding errors and provides reliable data for estimating, costing, and project planning purposes.

(vi) Consistency in Measurement Practice: To maintain consistency, it is crucial to follow the same measurement practices consistently throughout the project. This includes the use of standardized measuring tools, adherence to defined measurement guidelines, and uniform interpretation of drawings and specifications.


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