SHIVANI SCHOOL OF BUSINESS MANAGEMENT FINANCIAL MANAGEMENT IMPORTANT QUESTIONS

9. Write the concept of capital rationing. 10. What is trading on equity?

UNIT I Two Marks 1. 2. 3. 4. Define Financial Management. What is portfolio return? What is time value of money? Name the objective of conventional and modern approach in financial management. 5. What is included (or) under Modern scope view of of financial financial aspects. 2. State and brief few factors which are relevant for determining the payout ratio. 3. What are the difference forms of dividend policies? 4. Write down the different types or forms of dividend? 5. What is stock split? 6. What is operating lease? 7. Write any two bases upon which capital structure is determined? 8. What is indifference point? 16 MARKS 1. What are the basic financial decisions? How do they involve risk-return trade off? 2. Briefly describe the reasons why profit/EPS 16 MARKS 1. Explain the various determinants of dividend policy. 2. Explain in brief Theories of Dividend policy . 3. Explain the different theories of capital structure 4. Explain the various Determinants of capital structure. UNIT-II Two Marks 1. What is payback period? List the two important limitations of this approach. 2. List the phases of capital budgeting process. 3. Why is capital budgeting so important to management? 4. What are the merits of payback period? 5. What are the Components of capital budgeting: 6. Define Internal rate of return: 7. What is NPV? 8. What are the need of capital budgeting?. 5. Briefly describe the short term sources of finance.Explian . UNIT-IV Two Marks 1. State the different types of working capital. 2. How are receivable forecasted? 3. Name the popular methods available for forecasting working capital requirements. 4. List out any four important working capital ratio. 5. Write down the nature of cash. 6. Define commercial paper. 9. What is dividend payout ratio? 10. What do you mean by optimum capital structure? UNIT-III Two Marks 1. Compare a bonus share and share split on various 16 MARKS 1. What is capital budgeting? Explain the methods of evaluating capital expenditure proposals. 2. Explain the Significance of Cost of Capital in detail.

management? management 6. 7. 8. 9.

What are the objective of FM?(goals) What is Rule of 72? Define future value of money. How is term finance more comprehensive than money management?

10. How would you have a fresh look at finance function in business? (Or) Comment on emerging role of finance manager in India?

maximization tail to be consistent with wealth maximization? 3. Discuss the functions of finance manager /management in an organization.

7. What is factoring? What are cost associated with it. 8. Diagram showing working operating cycle. 9.Define ABC analysis. 10.What are different float in cash management.

2. What are functions of Indian capital and stock market? Bring out the relationship between the term capital market with financing. 3. Define lease. How does it differ from hire purchase? What are cash inflows consequences of a lease? 4. What are different between primary and secondary market? Discuss the different classification of shares

PART-B 1. Explain the various determinants of working capital in a concern and also write the significance, advantages and disadvantages of working capital. 2. Explian the importance and scope of accounts receivable management. 3. Explian the tools or techniques of inventory management. 4. Explain the objectives of credit policy and also state optimum credit policy. 5. Explian in detail the cash management models proposed by baumol and miller their merits and demerits. UNIT-V Two Marks 1. State the various features of terms loans. 2. Define the term venture capital. 3. What do you mean by debenture? 4. Define lease. 5. Define hire purchase. 6. What are advantages of debenture as sources of funds? 7. Explain the concept of private equity. 8. State and brief any four rights of equity share holders. 9. Distinguish between preference share and debentures capital. 10. Write down intermediaries in issuing the shares. 11. Mention some companies in venture capital. 12. Define authorized capital and paid up capital. 13. Define restrictive covenants.

traded in stock market.IPO steps. Parties involved in IPO. 5. Explain in detail about venture capital as a source of long term finance.

16 MARKS 1. Discuss the various sources of long term finance of Indian companies.