Semester 1 Examination paper
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Financial Management
1. Capital turnover ratio is calculated as
a) Sales *Capital employed
b) Sales / Capital employed
c) Sales /Total Assets
d) Total assets / Owners fund
2. In ABC analysis C class consist of ________.
a) a very large number of items which are less important
b) a very less number of items which are important
c) quaintly if items which take place after a long time
d) that quantity which is fixed in such a way that the total variable cost of managing the
inventory can be minimized
3...
8. The cost which remains constant irrespective of changes in the sales revenue is termed as
a) Fixed cost
b) Variable cost
c) Runtime cost
d) Normal cost
9. The comparison of the ratios of one organisation with that of the other organisation is termed as
________ comparison
a) Inter-firm
b) out-side firm
c) Other firm
d) All the above
10. A systematic record of the events of the business leading to a presentation of a complete financial
picture is known as
a) Financial statement
b) Balance Sheet
c) Trading account
d) Accounting
10. Retained earnings is a source of ________ finance
a) Internal
b) External
c) Quick
d) Liquid
Part Two:
1. What is Annuity kind of cash flow?
2. What do understand by ‘Portfolio risk ?
Semester 1 Examination paper
IIBM Institute of Business Management
3. What do you understand by yield to maturity (YTM)?
4. Elaborate ‘Central limit theorem’.
5. What is the Difference Between NPV and IRR?
Caselet 1
Introduction
Patel Housing finance Corporation (PHFC), the first private sector housing finance company of India
is the brainchild of D.H. Patel who was doyen of financial world. The company began operations on
July 18, 1978. In its earlier years, Patel was able to mobilize funds and get support from diverse
sources namely IEIEI, of which Patel was Chairman at that time, IFC, his Royal Highness, Rashid
Oberoi and most importantly the Indian ...
the home loan market have a distinct advantage as far as cost of funds is concerned, customer base
and distribution network. It is a matter of time before they aggressively expand operations. Foreign
banks are already operating in the market using high quality of services as their USP. In this scenario,
the top management wonders whether the elephant can dance.
1. Evaluate the strategies used by the management in the changed scenario.
2. Which strategies the company adopt for the future?
3. Evaluate the performance of the company financially, using financial ratios and figures.
Semester 1 Examination paper
IIBM Institute of Business Management
4. Analyze the case using SWOT analysis.
Caselet 2
Telecommunications is one of the fastest growing service industries in the world. The accent of
growth is on the value added services, such as e-mail, cellular phones, etc. This sector plays a crucial
role in spurring growth, especially industrial services, in the Indian economy. Multinational
companies are investing in India because of huge latent demand .Telecommunications in India has
been a state initiated and controlled sector. The last two decades have witnessed a restructuring of the
entire sector due to Liberalization, Privatization and Globalization. This has triggered an influx of
foreign capital and technology. India’s 21.59 million-line telephone networks is one of the largest in
the world and the third largest among emerging economies (after China and Republic of Korea).
Given the low telephone penetration rate 2.2 per 100 people of population, which is much below the
global average, India offers vast scope for growth. It is therefore, not surprising that India has on of
the fastest growing telecommunication systems in the world with system size (total connections)
growing at an average of more than 20% over the last 4 years. ...
hoped to have an accounting system which would provide data in the area of costing, pricing,
investment decisions, tax planning and controllable and non controllable costs.
1. Evaluate the company’s ability to sustain its performance in the present scenario.
2. Suggest the possible costing techniques which can help V.K. Gupta its decision-making (Illustrate
using examples).
3. Conduct a financial analysis of the company of the company and comment its financial
performance?
4. Suggest the various funding patterns that may be adopted by the company in light of the
company’s capital structure.
??Each question carries 10 mark each.
1. Explain the norms suggested by Tondon Committee for providing bank credit? How
did the recommendations of Chore Committee bring modifications?
2. A population is made up of groups that have wide variations within the groups and less
variations from group to group. Which is the appropriate type of sampling method?
3. Over capitalization and undercapitalization are both unhealthy signs for a firm
“Discuss”? Can they be remedied?
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Financial Management
1. Capital turnover ratio is calculated as
a) Sales *Capital employed
b) Sales / Capital employed
c) Sales /Total Assets
d) Total assets / Owners fund
2. In ABC analysis C class consist of ________.
a) a very large number of items which are less important
b) a very less number of items which are important
c) quaintly if items which take place after a long time
d) that quantity which is fixed in such a way that the total variable cost of managing the
inventory can be minimized
3...
8. The cost which remains constant irrespective of changes in the sales revenue is termed as
a) Fixed cost
b) Variable cost
c) Runtime cost
d) Normal cost
9. The comparison of the ratios of one organisation with that of the other organisation is termed as
________ comparison
a) Inter-firm
b) out-side firm
c) Other firm
d) All the above
10. A systematic record of the events of the business leading to a presentation of a complete financial
picture is known as
a) Financial statement
b) Balance Sheet
c) Trading account
d) Accounting
10. Retained earnings is a source of ________ finance
a) Internal
b) External
c) Quick
d) Liquid
Part Two:
1. What is Annuity kind of cash flow?
2. What do understand by ‘Portfolio risk ?
Semester 1 Examination paper
IIBM Institute of Business Management
3. What do you understand by yield to maturity (YTM)?
4. Elaborate ‘Central limit theorem’.
5. What is the Difference Between NPV and IRR?
Caselet 1
Introduction
Patel Housing finance Corporation (PHFC), the first private sector housing finance company of India
is the brainchild of D.H. Patel who was doyen of financial world. The company began operations on
July 18, 1978. In its earlier years, Patel was able to mobilize funds and get support from diverse
sources namely IEIEI, of which Patel was Chairman at that time, IFC, his Royal Highness, Rashid
Oberoi and most importantly the Indian ...
the home loan market have a distinct advantage as far as cost of funds is concerned, customer base
and distribution network. It is a matter of time before they aggressively expand operations. Foreign
banks are already operating in the market using high quality of services as their USP. In this scenario,
the top management wonders whether the elephant can dance.
1. Evaluate the strategies used by the management in the changed scenario.
2. Which strategies the company adopt for the future?
3. Evaluate the performance of the company financially, using financial ratios and figures.
Semester 1 Examination paper
IIBM Institute of Business Management
4. Analyze the case using SWOT analysis.
Caselet 2
Telecommunications is one of the fastest growing service industries in the world. The accent of
growth is on the value added services, such as e-mail, cellular phones, etc. This sector plays a crucial
role in spurring growth, especially industrial services, in the Indian economy. Multinational
companies are investing in India because of huge latent demand .Telecommunications in India has
been a state initiated and controlled sector. The last two decades have witnessed a restructuring of the
entire sector due to Liberalization, Privatization and Globalization. This has triggered an influx of
foreign capital and technology. India’s 21.59 million-line telephone networks is one of the largest in
the world and the third largest among emerging economies (after China and Republic of Korea).
Given the low telephone penetration rate 2.2 per 100 people of population, which is much below the
global average, India offers vast scope for growth. It is therefore, not surprising that India has on of
the fastest growing telecommunication systems in the world with system size (total connections)
growing at an average of more than 20% over the last 4 years. ...
hoped to have an accounting system which would provide data in the area of costing, pricing,
investment decisions, tax planning and controllable and non controllable costs.
1. Evaluate the company’s ability to sustain its performance in the present scenario.
2. Suggest the possible costing techniques which can help V.K. Gupta its decision-making (Illustrate
using examples).
3. Conduct a financial analysis of the company of the company and comment its financial
performance?
4. Suggest the various funding patterns that may be adopted by the company in light of the
company’s capital structure.
??Each question carries 10 mark each.
1. Explain the norms suggested by Tondon Committee for providing bank credit? How
did the recommendations of Chore Committee bring modifications?
2. A population is made up of groups that have wide variations within the groups and less
variations from group to group. Which is the appropriate type of sampling method?
3. Over capitalization and undercapitalization are both unhealthy signs for a firm
“Discuss”? Can they be remedied?
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