Question paper

P.K.R. ARTS COLLEGE FOR WOMEN, GOBI

II BBM MID-SEMESTER EXAMINATION FEB-2009

FINANCIAL MANAGEMENT (IV-SEMESTER)
Time: 3 Hrs Section-A Max.marks:100

Fill-up the blanks (10 * 1 = 10)

1.Financial decision involve ---------- decisions.

2.The appropriate objective of an enterprise is maximization of --------- wealth

3.A fixed rate of ------ is payable on debentures

4.The capital Structure of company is made----- and----- securities

5.Shares having no face value are known as ------- stock

6.It is better for a company to remain in ------ gear during the period of depression

7.working capital is also known as ------- capital

8.The gross working capital is a ------ concern concept

9.The volume of sales is influenced by ------ policy

10.-----System is a method for accelerating cash inflows


Answer all the Questions Section-B (5 * 6 = 30)

11.(a) What is financial Management? (OR)

(b) What are the objectives of Finance Functions?

12. (a) Write a note on profit maximization Vs wealth maximization (OR)

(b) Why is maximizing wealth a better goal than maximizing profits?

13. (a) What is optimal capital structure? (OR)

(b) Write a note on the importance of capital structure

14. (a) Explain the concept of working capital (OR)

(b) Explain the various kinds of working capital

15. (a) What is Lock box system? (OR)

(b) What is the nature of cash?





Answer all the Questions Section-C (5 * 12 = 60)


16. (a) Explain the Scope of financial management. (OR)

(b) What are various sources available to Indian businessmen for raising long-term funds?

17. (a) Critically examine the short term sources of funds. (OR)

(b) What are the major determinants of capital structure?

18. (a) Explain the factors that influence the dividend policy of a firm. (OR)

(b) Give a critical appraisal of the traditional approach and MM approach to the problem
of capital structure.

19. (a) Explain the various factors influencing working capital. (OR)

(b) What are the advantages of adequate working capital

20. (a) Explain the various motives for holding cash. (OR)

(b)Write short notes on credit policy and collection policy


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