Financial Management

.1 Explain the Factors determining the dividend decisions in an organization?

Q.2 Differentiate between Financial Management and Financial Accounting

Q.3 What are the various sources of Long term Finance in an organization?

Q.4 Explain the theories of capital structure?

Q.5 Why capital budgeting decisions are difficult to take and are irreversible

Q.6 Critically explain the factors determining the requirement of working capital in an organization

Q.7 Explain any three techniques of Inventory Management?
8. Differentiate between Financial and Operating Leverage with suitable examples?

Q.No 1: What the case is all about?

 

 

Q.No 2: As per case how the balance can be created between net working capital (NWC) and speed of response?

 

 

Q.No 3: How Inventory can be managed effectively and prudently?

 

ASSIGNMENT C

EBDIT stands for …………………. Before depreciation, interest, and taxes.

 (A): Economy

 (B): Earnings

 (C): Exchange

 (D): Export 

An organization has mainly ………………………. Maximization is the objective?

 (A): Wealth

 (B): Profit

 (C): None

 (D): Both 

LIFO and FIFO are the techniques of ………….. Management?

 (A): Cash

 (B): Inventory

 (C): Dividend

 (D): Capital 

______ is regarded as the fourth element of the financial system.

 (A): Financial Services

 (B): Financial Institutions

 (C): Financial Markets

 (D): Financial Instruments 

Private placement covers:

 (A): Equity

 (B): Preference

 (C): Debentures

 (D): All 

CRISIL has been promoted by ………….

 (A): ICICI

 (B): UTI

 (C): Both

 (D): None 

 

------------- is a forced exit option results from a failed venture investment

 (A): Liquidation

 (B): OTC Route

 (C): Public Issue

 (D): All 

 

Which model belongs to cash management?

 (A): LIFO

 (B): Miller Orr

 (C): HIFO

 (D): ABC 

 

According to ………….. Value concept, money has a different value at different point of time?

 (A): Cash

 (B): Money

 (C): Time

 (D): Dividend 

 

JIT stands for just in …………..

 (A): totality

 (B): technical

 (C): tenure

 (D): time 

A minimum level of current assets, which is continuously required by a firm to carry on its business operations, is referred to as permanent or fixed working capital.

 (A): Temporary

 (B): Permanent

 (C): Stationery

 (D): variable 

 

Optimum cash balance must reflect the expected need for cash in the next budget period.

 (A): never

 (B): Always

 (C): Can't say

 (D): Sometimes 

 

MM Theory belongs to:………. Decisions. Solve by www.solvezone.in contact for more details at 8882309876

 (A): Dividend

 (B): Capital

 (C): Inventory

 (D): All 

 

The cash operating cycle is the average …………... of time between paying trade payables and receiving cash from trade receivables.

 (A): Lag

 (B): period

 (C): length

 (D): gap 

Aggressive working capital finance means using more …………. term finance

 (A): Credit

 (B): Short

 (C): Medium

 (D): Long 

 

Receibles management is all about?

 (A): Cash Management

 (B): Loan Management

 (C): Credit Management

 (D): All 

 

The length of the cash ………………….. depends on working capital policy about the level of investment in working capital, and the nature of the business operations of a company.

 (A): requirement

 (B): Operating Cycle

 (C): disbursal

 (D): Management 

 

…………working capital refers to the difference between current assets and current liabilities.

 (A): net

 (B): gross

 (C): Permanent

 (D): Temporary 

Short-term finance tends to be more ………….. than long-term finance.

 (A): Softer

 (B): Rigid

 (C): Flexible

 (D): harder 

……….. Capital refers to the firm’s total investment in current assets.

 (A): Gross

 (B): Net

 (C): Paid

 (D): Unpaid 

WIP stands for work in ………..

 (A): Progress

 (B): placement

 (C): Postponement

 (D): Parity 

Current assets are the assets which can be converted into cash within a …………….. year?

 (A): Calendar

 (B): Accounting

 (C): Assessment

 (D): Financial 

Money withdrawn from a pre-approved line of credit is called?

 (A): Advance

 (B): Token Amount

 (C): Loaning

 (D): Withdrawl 

EOQ is a very popular technique of …………….. Management.

 (A): Inventory

 (B): Cash

 (C): Capital

 (D): Financial 

 

…………...is the time duration required to convert sales, after the conversion of resources into inventories, into cash.

 (A): Credit Duration

 (B): Inventory Cycle

 (C): Cash Cycle

 (D): Operating Cycle 

 

Baumol model and the Miller-Orr model belong to ……………. Management.

 (A): Cash

 (B): Credit

 (C): Inventory

 (D): Purchase 

 

Cash in hand and cash at a bank are examples of …………. Assets.

 (A): Current

 (B): Fixed

 (C): Working

 (D): Permanent 

 

Current assets /Current liabilities describes ………. Ratio.

 (A): Fixed Asset

 (B): Quick

 (C): Liquidity

 (D): Asset Turnover 

 

Every company issuing the CP should appoint a ………………... bank as the issuing and paying agent.

 (A): Scheduled

 (B): Public

 (C): Nationalised

 (D): All 

Inventory and receivables are both current assets. Solve by www.solvezone.in contact for more details at 8882309876

 (A): FALSE

 (B): Can't Say

 (C): Sometimes

 (D): TRUE 

The operating cycle of a manufacturing company involves ………… phases.

 (A): one

 (B): two

 (C): three

 (D): four 

Credit analysis, or the assessment of creditworthiness, is undertaken by analyzing and evaluating information relating to a customer’s ……………… history?

 (A): Non-Financial

 (B): Non-Monetary

 (C): Financial

 (D): Monetary 

Which is the regulator of Indian Banking?

 (A): RBI

 (B): SBI

 (C): PNB

 (D): SEBI 

 

The objective of liquidity ensures that companies can meet their liabilities as they fall due, and thus remain in business.

 (A): Rare

 (B): TRUE

 (C): Sometimes

 (D): FALSE 

 

If a company moves from a "conservative" working capital policy to an "aggressive" policy, it should expect liquidity to decrease, whereas expected ……………. would increase.

 (A): Returns

 (B): Profitability

 (C): Pitfall

 (D): Downfall 

 

Miller Orr defines the difference between the upper limit and lower limit as the ‘…………..’.

 (A): Loss

 (B): Profit

 (C): Spread

 (D): Premium 

 

Risk, as it relates to working capital, means that there is jeopardy to the firm for not maintaining sufficient current assets to meet its …………. obligations as they occur and support the proper level of sales.

 (A): Short-term

 (B): Long-term

 (C): Cash

 (D): credit 

 

Short-term finance is riskier than long-term finance.

 (A): FALSE

 (B): Never

 (C): Sometimes

 (D): TRUE 

 

The firm uses longterm financing to finance all fixed and current assets.

 (A): TRUE

 (B): FALSE

 (C): Sometimes

 (D): Can't say 

 

The …………. principle suggests that long-term finance should be used for long-term investment.

 (A): Matching

 (B): Traditional

 (C): Dual Aspect

 (D): Monetary