FINANCIAL MANAGEMENT (I-MBA V)

IMPORTANT QUESTIONS (Module 1&3)

(i.e. Asked in GTU Question papers)

1. Define Financial Management. What role should the financial manager play in a modern
enterprise?
OR
Define the scope of finacial management. Explain the role of financial manager in an
organization.
OR
What would be your role as a financial manager in a business unit? Explain.
OR
Explain the scope of Financial Management.
2. "The importance of finance function as a management activity has increased in modern
time" Explain.
3. Explain the role and significance of Ratio Analysis to achieve the financial goals of the
business.
4. State any 4 benefits and 4 limitations of ratio analysis.
5. Why must financial statements be analysed? If you were a firm' creditors, which ratios
would be especially important to you? Why?
6. Carry out the Du Pont analysis for a company of your choice.
7. Explain Operating, Financial and Combined Leverage.
OR
What is meant by the term Leverage? Explain in detail about Financial Leverage and
Operating Leverage.
OR
Explain with formula the concepts of Operating, Financial and Combined leverage.
8. Describe the traditional view on the optimum capital structure. Compare and contrast this
view with the NOI approach and the NI approach.
9. What is an ordinary share? How does it differ from a preference share and debentures?
Explain its most important features.
10. 'A debenture is a long term promissory note for raising loan capital'. Discuss giving features
of debentures and its advantages and disadvantages.
11. Define and distinguish between leasing and hire purchase.
12. Which are the major credit rating agencies in India? Explain in brief.
13. Define the following
(i) Debtors Ratio; (ii) Asset Turnover Ratio; (iii) Creditors Ratio
14. Write short note on Hire Purchase Financiang
15. Define lease finance. Briefly discuss types of lease.
OR
Define leasing and explain any 3 types of lease.
16. Define leasing. Explain major differences between Operating and Financial Lease.
17. Write a brief note on (i) Under Capitalizations (ii) Over Capitalization
18. Briefly explain the symptoms of undercapitalized and overcapitalized companies.
19. Explain the advantages and disadvantages of overcapitalization.
20. Write a note on Traditional Theory of Capital Structure.
21. Briefly explain the factors that influence the planning of the capital structure in practice.
OR
Discuss factors influencing choice of capital structure.
OR
Define capital structure? Discuss the important factors that should be considered while
 determining capital structure.
22. Write a short note on American Depository Receipt
23. Write a short note on Credit Rating Agency
OR
Whar is Credit Rating? Explain importance & limitations of Credit Rating?
24. Explian an overview of process of credit rating in detail.
25. Write a short note on (i) Du Pont Analysis (ii) Leveraged Lease
26. Explain in brief the major sources of long term finance.
27. "Depreciation and retained earnings are the internal sources of finance." Discuss.
28. What is Fund flow statement? What are the interpretation that can be made from it? Explain
any 3 of them.