Name of the College : Easwari Engineering College
University : Anna University
Subject Code/Name : BA7202 – Financial Management
Dept : Department Of Management Studies
Degree : MBA
Sem: II
Document Type : Question Bank
Website : srmeaswari.ac.in
Download Model/Sample Question Paper: https://www.pdfquestion.in/uploads/srmeaswari.ac.in/3347-BA%207202%20-FM.pdf
SRM Financial Management Question Paper
Question Bank :
PART A
1. How is the term finance more comprehensive than money management?
2. Define financial management.
3. What are agency costs?
Related : SRM Easwari Engineering College BA7051 Logistics And Supply Chain Management MBA Question Bank : www.pdfquestion.in/3349.html
4. What is the Security Market Line?
5. List the major functions of financial managers.
6. Distinguish between the functions performed by a treasurer & controller.
7. What is time value of money?
8. Distinguish between real & financial assets.
9. Briefly explain any two setbacks of Profit maximization.
10. Indicate any two remedial measures of agency problem.
11. Name the objective of conventional and modern approaches in financial management. Distinguish them on two aspects.
12. What is required rate of return?
13. Define YTM.
14. What is effective rate of interest?
15. What is the scope of financial management?
16. What is role of capital budgeting in financial decision making?
17. What are mutually exclusive decisions?
18. What is Profitability Index? (OR) Define Benefit cost ratio. (OR) What does profitability index signify?
19. State the accept reject criteria for IRR.
20. What are free cash flows?
21. How do you calculate the accounting rate of return? What are its limitations?
22. Brief the acceptance rule in ARR and PI methods.
23. What are the merits of payback method?
24. Define “Explicit Cost”
25. What is capital rationing? State the principle of capital rationing.
26. What is cost of capital? What are the various factors affecting cost of debt?
27. State the advantages of trading on equity.
28. What you mean by an optimal capital structure?
29. What is dividend payout ratio?
30. What is stable dividend policy?
31. What is operating leverage? (OR) Explain “Degree of Operating Leverage.
32. What is Financial Leverage?
33. What is combined leverage?
34. What are the different types of dividend that can be paid by a company? (OR) State the various forms of dividends.
35. Compare a bonus issue and a share split on 4 aspects.
36. State and brief any four factors which are relevant for determining the payout ratio.
37. What is share split up?
38. Define Factoring.
39. What is scrip dividend?
40. What is the significance of factoring?
41. State the different types of working capital.
42. How are receivables forecasted?
43. Name three motives for holding cash
44. Define working capital.
45. What is permanent working capital?
46. What is commercial paper? State its 2 features.
47. What are the objectives of cash management?
48. What is term loan?
49. State the various features of term loans
50. Define the term ‘Venture Capital’. (OR) What do you understand by venture capital funds?
51. Mention four rights of an equity share holder
52. What do you understand by debenture? (OR) What is meant by debenture?
53. What is meant by subscribed share capital?
54. What is operating leasing?
55. Define a lease.
56. What are the various types of lease?
57. What are ‘Restrictive covenants’? State two features of it.
58. Distinguish ‘authorized share capital’ and ‘paid up share capital’ on two aspects.
59. What is book building?
60. Differentiate between unredeemable & redeemable debentures.
61. What is the role of Indian Capital market?
62. List the merits of lease financing.
63. What do you mean by private equity?
64. Differentiate between leasing & HP.
PART B
1. ‘Financial Management is an appendage of the finance function’. –Comment.
2. Discuss fully the organization of the finance functions in a business. (OR) Write a note on how the finance function is incorporated in the organizational structure and explain the various functions performed by the Finance Department.
3. Explain briefly the valuation of bonds & shares with an illustration.
4. Explain Agency theory & its implication for financing decisions.
5. Profit Vs Wealth maximization. Explain. OR Explain the various setbacks of Profit maximization and how that can be overcome through Wealth maximization. (OR) What are the goals and objectives of Financial Management?
6. Discuss in detail the functions of financial managers. (OR) Define Financial Management. Explain the functions of Financial Manager. (OR) Explain various important decision making areas in Financial Management. (OR) Explain the role f financial manager
7. List out and explain the different methods that are used for measuring changes in value of money.
8. What is the relationship between Finance Function and other Disciplines?
9. Differentiate between risk & return for a single asset &that of a portfolio.
10. Define options. Explain the factors affecting the value of the option according to the Black Scholes Model.