“Financial-Management – Only, Theory related, “Questions”” – “For 40 Marks Only”.

- :2019: -
- :“Financial Managements” {For the, “Honours” Candidates Only}: -

- :[Introductory Chapters to the, “Financial-Managements”]: -

1). Discuss in brief the “Functions” of the, “Financial Systems”.

2). “The financial goal of a firm should be to maximise the value or wealth” - explain it in your own words.

3). Explain the inter-relationships, in between the, financing decisions, investment decisions and dividend decisions.

4). What do you mean by the value maximisation objectives of a firm? How does it differ from the profit

maximization objectives?

5). Why is it inappropriate to seek profit maximization as the goal of the financial decision making? How do the

financial managers take the financing and investment decisions? Deliberate, in a nutshell, the roles of the chief

financial officers (CFO).

6). “Wealth maximization, is dependent upon the Profit Maximization” - discuss it in your own words. Discuss the

main objectives of the financial managements. Should the, profit maximization goal be regarded as the primary

goal of the financial managements? Explicate, the roles of the chief financial officer (CFO), in the modern business

environments.

1). The time value of money - Elaborately explain or write a short note upon it. Write a connotation upon the,

“Trued and Fair Values”.

2). State the compounding and discounting techniques of the time value of money. What is the time value of money?

Or;

what do you mean by the time value of money?

3). Mention the importance of the time value of money in the long-term financial decisions making?

4). Give a brief idea, as regards the financial environments of a business.

5). In which techniques, the time is adjusted, with value of money?

6). Discuss the relationship in between the risk and return.

7). Discuss the basic components of the financial environment or environments under which a firm has to operate

within.

“ ‘ ’ ‘ ’”
1). Explicate, the prospect of the lease financing. What is meant by the term financing? Pen down the features

of the term financing, in a nutshell.

2). Deliberate, the advantages and drawbacks or disadvantages or limitations, ploughing back of the profits.

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 “Financial-Management – Only, Theory related, “Questions”” – “For 40 Marks Only”. 2

3). Write connotations upon the: -

I). Convertible securities.

II). Public deposits.

III). Convertible debentures.

4). What is meant by the financial leases? Pen down its features.

- :[“Leverages, and the, Capital Structure Theories”]: -

1). Write up, the, “Connotation”, as regards, the, “Trading on the Equities”.

2). What do you mean by the trading on equity? Illustrate, the concept with the assistance of a citation. Mention,

the factors that determine or discern, the capital structures of a firm.

3). Explain, with the assistance, of the example, the earning theory of the capitalisation.

4). What are the factors considered for the capital structure planning?

5). What do you mean by the optimum capital structure? Deliberate, the features of an Optimum Capital Structure.

6). What will be the effect or effects of the taxation on the value of a firm under the, M & M Approaches?

7). Discuss critically, the modigliani and Miller approach of the capital structure theory.

1). What is meant by the working capital cycle? What is meant by the, positive working capitals and the negative

working capital? - justify your answers as regards this.

2). What do you mean by the Liquidity Profitability Tangles? Mention the significance of the importance regarding

the negative working capital.

3). Write the connotations upon the: -

I). Hard core current assets.

4). Make a distinction, in between fixed working capital and the variable working capital of a firm. Deliberate, in

a nutshell, the relevance, as regards the liquidity and the profitability in the working capital management.

5). Distinguish in between the conservative and the aggressive strategies of the financing the current assets.

6). Give a brief idea about the sources of the finances of the working capitals.

7). Write a short connotation upon the, recommendations of the Choré committee.

8). Explain the concepts, of the, working capital cycle. Deliberate, the different strategies of the financing working

capital of a firm.

- :[“Working Capitals Managements – II”]: -

1). Write the connotations upon the,

I). Inventory managements.

II). Inventories management ratio.

2). Write a short-notes, upon the, recommendations of the Tandon committees relating to the bank financing.

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3). What are the factors in determining or discerning, size of the Debtors?

- :[“Capitals Expenditures’ Decisions – I”]: -

1). Narrate, the, situations when a company needs to have the capital budgeting decisions.

2). State the significances of the capital budgeting decisions.

3). What do you mean by the accounting rate of return (ARR)?

- :[“Capitals Expenditures’ Decisions - II]: -

1). Write a short note upon the:

I). Internal rate of return.

2). What do you mean by the, profitability index method in the context of the capital expenditure decisions? What

is meant by the capital rationing?

3). How will you consider the, accept-reject decisions under the, IRR method in the case of, the evaluation of a

proposed project?

- :[“Financial Controls in the, “Financial Managements”]: -

1). Explain the ratio analysis as the tool of the financial controls. Deliberate, its merits and the demerits, of it.

2). Write the short note upon the:

I). Budgetary control.

II). Break even analysis.

III). Cash flow statements.

3). Explicate, in brief, the break-even analysis and the return on investments as the tools, of the financial controls.

4). Pen down, briefly, upon the, ROI and the, zero base budgeting as the tools of the, financial controls.

5). How does the ratio analysis help a firm(s), in financial controls? Explain the role of return on investments, in

effecting the financial control of a firm.

6). “Return on investments is an important tool of the financial controls” - justify it in your own words.

7). “What is meant by the, ‘Accounting Ratio Analysis’, in this regard”? State the limitations or the, drawbacks of

the accounting ratio analysis as the tool of the financial controls.

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