Financial Management, Question Paper of MBA 2nd Semester,Download Previous Years Question Paper 1

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Total No. of Questions: 07]                                                            [Total No. of Pages: 2

MBA (Sem – 2^nd)

FINANCIAL MANAGEMENT

SUBJECT CODE: MB – 205(2008-10 Batch)

Paper ID: [C0175]

Time: 03 Hours                                                                                     Maximum Marks: 60

INSTRUCTIONS TO CANDIDATES:

1.     SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks each.

2.     SECTION-B contains SIX questions carrying TEN marks each and students have to attempt any FOUR questions.

SECTION-A

Q.1.

a.     Define Financial Management.

b.     Preference Shares.

c.      Average rate of return.

d.     Operating Leverage.

e.     Capital Structure.

f.       Dividend Policy.

g.     Disadvantages of Leasing.

h.     Working Capital.

i.        Receivable Management.

j.       Cast Management

SECTION – B

Q.2.    What are the sources of long-term funds? Explain factors affecting long term funds requirements?

Q.3.    What is meant by Capital Structure? What are the major determinants of Capital structure.

Q.4.    What is inventory management? Why is it essential to the business concern.

Q.5.    Rank the following projects in order to their desirability according to Pay-back Period Method and the Net Present Value Index Method (Discount rate 10%)

Projects                     Initial Outlay            Annual Cash Flow              Life In Year                                   Rs.                               Rs. A                                 10,000                      2,500                                     5 B                                  8,000                         2,600                                     7 C                                  4,000                         1,000                                     15 D                                 10,000                      2,400                                     20 E                                  5,000                         1,125                                     15 F                                  6,000                         2,400                                     6 G                                 2,000                         1,000                                     2

                                                                                  

Q.6.    Mr. .Krishan wishes to commence a new trading business and gives the following information

(a)  The total estimates sales in a year will be Rs. 12, 00,000.

(b) His expenses are estimates as fixed expenses of Rs. 2,000 per month plus variable expenses equal to five percent of his turnover.

(c)  He expects to turnover his stock four times in a year.

(d) The sales and purchases will be evenly spread throughout the year. All sales will be for cash but he expects one month’s credit for purchases.

Calculate:

(i)                His estimated profit for the year.

(ii)              His average working capital requirements.

Q.7.    What do you understand by lease financing? State its advantages and limitations.