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Thursday, 03 December 2015 11:59

Business Environment

Business Environment

 

Q. 1.  Define environment and explain various critical elements of macro-economic environment Also examine the interaction between economic and non-economic environment.

Q.2. Explain the trends in industrial policy in India.  What measures have been taken recently to liberate the industry  from excessive controls?

Q.3.  Discuss the problem of poverty in India.  What measures has the Government taken for the removal of poverty in India?

Q.4.  What do you mean by privatisation?  Why is privatisation advocated these days?  Indicate possible areas of privatization in India.

Q.5 Foreign Direct Investment (FDI) is increasingly important in economic development because f its close links in trade, financial flows and technology transfer  Explain the above statement and examine the policy of the government regarding promoting foreign capital in India.

Q.6.  What do you understand by Social responsibilities of Business?  Pont out the various elements involved in this .

Q.7.  Critically examine the rationale behind establishing Public Sector Enterprises (PSEs) inIndia.  What are the reasons for unsatisfactory performance of these enterprises?  What should be the future policy towards PSEs?

Q.8.   Explain the concepts of (a)  monopolistic trade practices,  (b)  restrictive trade practices and (c)  unfair trade practices under the MRTP Act 1969.  Has India succeeded in preventing concentration of economic power through MRTP?  Illustrate with suitable examples.

Q.9.  Explain the objectives of economic planning in India.  Discuss the achievements of economic planning in our country in the light of these objectives.

Q.10.  Point out the need for providing protection to consumers.  What measures have been taken by the Government of India to protect the interest of the consumers? [Faculty notes]

Q.11.  What do you mean by Industrial Sickness?  What factors are responsible for this ?  What has been the Government policy to avoid industrial sickness? [Faculty notes]

Q.12.  Analyse the framework of the Indian financial system.  What are the main recommendationsof the Narasimham committee on financial sector reforms?

Q.13.  What circumstances lead to preferring foreign capital to foreign aid and debt?  Criticallyevaluate the policy  measures adopted by the Government of India to encourage inflow of foreign capital.

Q.14.  Explain the major objectives of the public sector, Give different criteria t evaluate the performance of public enterprises.  Comment on hw to resolve the possible conflict between autonomy and public accountability of public enterprises.

Q.15.  Discuss the balance of payments crisis in India.  Explain critically the emerging trade policy issues.

Q..16     a)       Define the following:

Balance of trade; balance of invisible transfers; current account balance; capital account balanceand balance of payments.

Q.17 .  Collect data on foreign technical and financial collaborations for two different periods 1985-90          and 1991-2001 and write a detailed note on the annual trends of these collaborations.

Q.18 a)   Distinguish between basic restructuring and financial restructuring.

Q.19.   write short notes on :

Q20. write short notes on :

  1. Black economy
  2. Inflation

 

Thursday, 03 December 2015 11:55

Financial Management

Financial Management QUESTION BANK

                                                              Financial Management question bank 

Repeated questions for all indian universities

                                                         

 

Q.1 Define the term Financial Management. What are the characteristics of Financial Management?

Q.2 Explain the basic characteristics of a sound financial plan?

Q.3 Explain EBIT-EPS analysis and the methods determining indifference level of EBIT.

Q.4 Discuss the assumptions of MM Hypothesis and the criticism of this hypothesis

Q. 5. How would you measure the cost of capital in making investment decision?

Or

How is the cost of different types of capital measured? Illustrate and explain.

Or

How should a business firm compute the cost of long-term debt? Is debt financing always the cheapest mode of raising funds?

Q.6 Explain different theories of Capital structures with imaginary figures.

Q.7 Discuss the approaches to the Management of Working Capital.

Or

Discuss the factors determining the working capital requirements.

Q.8 Explain in brief the provisions of Company Law relating to them and the guidelines issued by the Controller of Capital Issues in respect of them.

Q.9 Both over-capitalisation and under-capitalisation are harmful to the financial interest of a corporation." Discuss.

Or

Write short note on `Effects of under-capitalisation.'

Or

"In industries over-capitalisation is as dangerous as under capitalisation". Discuss.

Q.10 �The need for maintaining case balance arises form the non-synchronization of the inflows of cash. Elucidate the statement. Also point out the role of shout costs in determining the cash needs.

Q.11 Wealth maximisation is only a decision criterion and not a goal." Explain.

Q.12 Discuss the relationship between leverage and cost of capital s per the net income approach. How is it different form net operating income approach?

Q.13 What are the five traditional Cs the Finance Manager might consider in evaluating the credit worthiness of a potential customer?

Q.14 Explain and illustrate Arbitrage Process of MM theory of Capital structure.

Q.15 The key argument of Walter�s Model is the a firm would have an optimum dividend policy. Comment and explain taking suitable illustration.

Q.16 What is `Capital Gearing' ? What are the effects of high aqd low gearing on the financial position of a company during the vafious phases of trade cycle ?

Or

Illustrate the meaning and significance of `Gearing Ratio'. Discuss the effects of capital-gearing during trade cycles.

Or

Write a short note on `Capital Gearing'.

Or

What do you mean by Capital gearing or form of Capital ?

Q.17 "Changes in capital structure may be sought as a means of easing tension and giving a better opportunity to the corporation to pursue its purposes." In the light of this statement advocate readjustment in the capital structure of a business corporation.

Q.18 In what circumstances would you recommend debt-financing as against equity financing ? Outline a suitable debt-management policy of a firm whose objective is to Iron-out the fluctuations in the earning per share.

Q.19 . Discuss each of the following measures of company's gearing and state which in your opinion provides the best indicator

Q.20  What are the essentials of Gordon's model of dividend effect? Does dividend policy affect the value of the firm under Gordon's model?

Q.21 . Explain the Lintner's model of dividend. How does the study of Fama and Babiak substantiate the concept of dividend policy of Lintner?

Q.22. What is Modigliani-Miller's irrelevance hypothesis? Explain and evaluate it.

Q.23 Critically evaluate the assumptions of Modigliani-Miller's irrelevance hypothesis.

Q.24 Define operating and financial leverage from an economic and social standpoint. Is the use of financial leverage Justifiable ? Explain by listing some advantages and disadvantages.

Or

Attempt a comprehensive note on types of leverage

Or

Explain the concept of financial "leverage. What are the managerial limitations to leverage ? Explain.

Or

Write short note on 'Financial leverage

Q.25 What is relationship between fixed costs and operating leverage ?

Q.26 Discuss the impact of leverage on earnings per share and dividend per share in various conditions. Explain the effect of leverage on market prices of shares also

Q.27 What is Modigliani-Miller approach to the problem of capital structure? Under what assumption do their conclusion hold good?

Or

What are the different approaches to the problem of cost of capital ?

Or

Do your agree with the view point that a firm�s capital structure does not affect its cost of capital? Given your argument for and against the view>

Or

Briefly discuss the Modigliani �Miller approach abut cost of capital

Q.28 Explain the 'Discounted Cash Flow Methods' of evaluating capital investment proposals.

Or

Explain the following 'Time Adjusted Techniques' of appraising capital projects :

  1. i. Net Present Value Method
  2. ii. Present Value Index Method
  3. iii. Internal Rate of Return Method

Or

Explain the salient features of the present value Method of project evaluation and examine its rationality.

Or

What is the distinguishing feature of  Present Value Technique over the other methods of investment appraisal ? is the former superior to the latter in all cases?

Q.29 Define risk and uncertainty. What are the various methods available for considering risk and uncertainty in capital budgeting decisions.

Q.30 Explain various methods used for evaluation fo Capital expenditure proposals. Bringing out their relative merits and demerits

Or

Explain the various methods used for Evaluation of Capital

Or

Mention the characteristics and the relative merits an demerit of the different Methods of Appraising Capital Investment proposal. Which method would you prefer and why?

Or

Give a comprehensive description of Various Methods of  Ranking Investment proposals.

Q. 31. Explain clearly the Pay-back method of evaluating alternative capital requirement. What are the advantages and limitations of this method ?

Or

Explain with the help of suitable illustrations the Pay back Criterion of Evaluation Investment Proposals.

Or

Explain the concept of 'Payback Period'. Why does the Payback Period. Method has acquired such popularity among businessmen ? What are its limitations ?

Or

"Since Payback Period does not really measure profitability at all, of what value is it in Capital Budgeting ?" Comment.

Or

"Despite all limitations of the Method of Payback Period, It has still got significance in Project Approval" Explain.

Or

"Payback Period Method of Project Evaluation is a test of liquidity and not profitability." Discuss.

Or

Discuss the Payback Criterion of Investment Decisions. What are its strengths and weaknesses?

Q. 32. How is the `Average Rate of turn' on an investment determined ? What are the merits and demerits of the `Average Rate of

Return Method' ?

Or

Discuss the "Rate of Return Method" of evaluating alternative capital requirement. What are itsadvantages and disadvantages ?

Q.33 What do you understand by Capital Structure of a corporation? Distinguish between Capitalisation and Capital structure. Discuss the basic qualities of a sound Capital structure.

Or

What are the characteristics of a sound Capital structure?

Or

What do you mean by capital structure ? Discuss the points one should bear in mind while designing a suitable Capital structure for a business.

Or

Discuss the factors that should enter into designing an ideal capital structure of a Company.

Or

"Types of securities issued by a corporation depends among other factors upon the nature of its business, the state of market and the classes of investors to whom it can appeal" Discuss.

Q.34 Discuss the Dividend Policy & Goals, its legal aspects.

Or

Write down the factors affecting the dividend policy.

Or

Discuss the significance of dividend policy in business decisions. How can dividend policy decision influence value of firm.

Q. 35. Discuss the Baumol Model and 1lillter-Orr Model of cash Management.

Q. 36 . Discuss the Technique or Process of Cash Management.

Q.37 Role of Financial Manager in a modern enterprise.

Q.38 Time Preference of Money.

Q.39 Factors affecting the dividend policy of a company

Q.40 What is an appropriate capital structure of a company? Explain

Q.41 Explain the role working capital Management as part of overall Financial Management.

Q.42 Factors affecting Capital Structure

Q.43 Is Profit Maximisation the sole objective of Financial Management? 

Q.44 Objectives of Cash Management.

Q.45 Meaning of Financial Risks

Q.46 Importance of Cost of Capital in Financial Decision-making. 

Q.47 Operating cycle.

Q.48 Risk and Return trade off.

Q.49 Wealth Maximisation.

Q.50 Adequacy of working capital

Q.51 cash budget

Q.52 lock box system

Q.53 Receivables Management.

Q. 54 the need for maintaining cash balance arises form the non synchronization of the inflows and outflows of cash, Elucidate the statement. Also poking out role of short costs in determining the cash needs.

Q.55 How should a business firm compute the cost of long term debt? Is debt financing always the cheapest mode of raising funds.

Q.1 X Ltd. has operating profit of Rs.8,60,000 and a fixed finance burden of Rs. 60,000. The company is subjected to income tax payment of Rs. 2,00,000. The company has 3,00,000 Equity shares of Rs. 30,00,000 and 18% Debentures of Rs. 3,12,500. The market price of Equity share is Rs. 12 find:

Q.2 SIP Corporation wishes o replace its existing machine. The following information is available:

Q.3 A firm has sales of Rs. 75,00,000 variable cost of Rs. 42,00,000 and fixed cost of Rs. 6,00,000. it has a debt of Rs. 45,00,000 at 9% and equity of Rs. 55,00,000.

Q.4 Form the following data compute the duration of the operating cycle for each of the two years and give reasons for the increase\decrease.

Q.5 From the following information prepare an estimate of working capital requirements:

Q.6  Companies U and L are  identical in every  respect except that U is unleveled while L has Rs. 20 lakh of 8% debt. EBIT of both firms is Rs. 6 lakh and tax rate is 35% Equity capitalisation rate for U is 10%

Q.7 D company currently has 10 lakh  equity shares outstanding. Current market price  per share is Rs. 150. the net income for the current years is Rs 150. The net income for the current year is Rs. 2 corer and investment budget is  Rs. 4 crore  Cost of equity is 12% . the company is contemplating declaration of  dividend @  Rs. 8 per share. Assuming M-M approach

Q.8 Equity share of A Ltd. is currently selling in the market at Rs. 100 Dividends paid in the last 5 years are Rs. 4.00 Rs. 4.25 Rs. 4.60 Rs.4.85 and Rs. 5.05. the  company wants to issue new equity shares and has been advised to piece them at Rs. 90 floatation costs alkali to be s. 8 per share. Calculate the growth rate cost of existing and new equity for the company.

Q.9 Equity share of P Ltd is currently priced at Rs. 60. Dividend Expected at eh end of one year form now s Rs. 6. cost of equity for companies of similar risk is 18%. What is the expected growth rats?

Q.10 From the following data, Calculate:

(i) Operating financial and combined leverage

(ii) Financial Break even point.

(iii) Percentage drop in sales to make the earnings per share zero.

Q.11 The following annual figures relate to  ABC Ltd.

Q.12 The management of Z Ltd. subscribes to the No. 1 approach and believes that its cost of debt and overall cost of capital will remain at 9% and 12% respectively. If the debt-equity ratio is 0.8, what is the cost of equity?

Q.13  The relevant information for XYZ Ltd. for the year ended 2004 is given below:

Sales

Q.14 Arvind Textile Mill currently has 10,00,000 shares of equity outstanding with a market price of Rs. 50 per share. It also has Rs. 4 crore in 12% bonds. The company is considering a Rs. 5 crore expansion programme that it can finance through:

Q.15 A companys share is quoted in the market at Rs. 40 currently. The company pays a dividend of Rs.2 per share and investos expect a growth rate of 10% per year. Compute:

Q.16 Pranshu Ltd. plans to sell 30,000 units next year. The expected cost of goods is as follows:

Q.17 XYZ company is considering replacement of its existing machine by anew machine which is expected to cost Rs. 1,60,000. The new machine will have a life of 5 years and will yield cash revenues of Rs. 2,50,000 and incur annual cash expenses of Rs. 1,30,000. The estimated salvage value of the new machine is nil. The existing machine has book value of Rs. 40,000 and can be sold for Rs. 20,000 today. It is good or next 5 years ad is estimated to generate annual cash revenue of Rs.2,00,000 and to involve annual cash expenses of Rs. 1,40,000. its salvage value after 5 years is zero. Corporate tax rate is 40% . Depreciation rate is 25% on W.D.V. method. The companys opportunity cost of capital is 20% .

Q.18  Surabhi Co. Ltd. Currently provides 36 days of credit to its customers. The present level of sales is Rs. 50 crores. The firms cost of capital is 10% and the ratio of variable cost of  sales is 0.80. The company is considering to extend its credit period to 72 days. Such an extension  likely to push sales by Rs. 5 crores. The bad debt proportion on additional sales.  Would be 8% . The company is under 40% tax bracket. Should the credit period be extended?

Q.19 The earnings per share of a company are Rs. 10. It has rate of return of 15% and the capitalisation rate of risk class is 12.5%. If Walters model is used:

Q.20 . A company believes that it is possible to increase sales if credit terms are relaxed. The profit plan, bases on the old credit terms, envisages projected sales at Rs. 10,00,000 a 30 percent profit volume ratio, fixed cost at Rs. 50,000  bad debts of 1.00 percent and an account receivable turn over ratio of 10 times

Q.21 Two firms X and Y are  identical in all respects including risk factors except for debt/equity. X has issued 10% debentures of Rs. 18 lakhs while Y has issued only equity both the firms earn 20% before interest and taxes on their total assets of  Rs. 30 lakhs.

Q.22 Use Walters modal to determine the value of the firm in 3 cases:

Q.23 Estimate the net working capital of Firm X on the basis of the given data:

Item

Cost per units

 

Q.24  On the basis of the data given below calculate:

Q.25 Chandra Ltd. purchased a special machine one year ago at a cost of Rs. 12,000. At that time the machine was estimated to have a useful life of 6 years and no salvage value. The annual cash operating cost is approximately Rs. 20,000. A new machine has just come in the market which will do the same job but with an annual cash operating cost of only Rs. 17,000. The new machine costs Rs. 21,000 and has an estimated life of 5 years with zero salvage value. The old machine can be sold for Rs. 10,000 to a scrap dealer, straight line depreciation is used, and the company's income tax rate is 40 percent. Assuming a cost of capital of 8%, you are required to compute the incremental cash flows after taxes.

Q.26 The earning per share of Dig Ltd. for the past 10 years is given below:

Q.27 ABC Ltd. expects its cost of goods sold for 2000-2001 to be Rs. 600 lakhs. The expected operating cycle is 90 days. It wants to keep a minimum cash balance of Rs. one lakh. What is the expected working capital requirement ? Assume a year consists of 360 days.

Q.28 S Ltd. and T Ltd. are in the same risk class and are identical in all respects except that company S uses debt while company T does not use debt. The levered firm has Rs. 9,00,000 debentures carrying 10% rate of interest. Both the firms earn 20% operating profit on their total assets of Rs. 15 lakhs. The company is in the tax bracket of 35% and capitalisation rate of 15% on all equity shares.

Q.29 Raja Ltd. wants to replace its existing plant. It has received three mutu�ally exclusive proposals I, II and III. The plants under the three proposals are ex�pected to cost Rs. 2,50,000 each and have an estimated life of 5 years, 4 years and 3 years respectively. The company's required rate of return is 10%. The anticipated net cash inflows after taxes for the three plants are as follows:

Q.30 Amar Ltd. is evaluating two financing plans alpha and Beta. The revenant data about the plans are given below:

Q.31 AB Ltd. provides the following particulars relating to its working:

Q.32 M Ltd. is  considering  a major expansion of its  production facilities and want to raise Rs 50 lakhs for the purpose.  The following alternatives are available to raise the required amount:

Q.33  A company has issued 14% Rs. 100 each Preference shares aggregating Rs. 1,00,000 to be redeemed after 10 years. Floatation cost  around 5%. Determine the true cost of Preference shares.

Q.34  A firms earnings per share is Rs. 8 its cost of Equity is 15% its rate of  return on investment is 10%. What will be the market price of the firm�s share as per Walter�s model of dividend payout ratio is (i) 25% ; (ii) 50% or (iii) 100%. What conclusion will you draw form these prices?

Q.35 The income Statement of X Ltd. for the current years is as follows:

Q.36 A company is currently engaged in the business of manufacturing computer component. The computer component is currently sold for Rs. 1,000 and its variable cost is Rs. 800. For the year ended 31�12�2002  the company sold on an average 500 components per month.

Q.37  A Rs. 100 perpetual bond is currently selling for Rs. 95. The coupon rate of interest is 13.5 percent and the appropriate discount rate is 15%. Calculate the intrinsic value of bond. Should it be bought? What is it yield to maturity?

Q.38 The Balance sheet of  M/s XYZ Company shows the following items as at 31st December 2002:

Q.39 The Balance sheet of Shaw & Co. is as follows:

Q.40 The  Following Data relate to two companies:

Q.41 International foods Limited has the following capital structure:

Q.42 Management of Talash Ltd. has the option to buy either Machine  A or Machine B. Machine A has a cost of Rs. 75,000 its expected lire is 6 years with no salvage value at the end. It would generate net cash flows of Rs. 20,000 per years

Q.43 H. Ltd. has a present annual sales level of 10,000 units at Rs. 300 per unit. The variable cost per unit is Rs. 200 per unit and fixed costs amount to Rs. 3,00,000 per annum. the present credit allowed by the company is one month. The company is considering a proposal to increase the credit period to two months and three months and has made the following estimates:

Q.44 A share  of the face value of Rs. 100 has current market price of Rs. 480. annual expected dividend is 30%. During the fifth year, the shareholder is expecting a bonus in the ratio of 1:5.  Dividend raster is expected to be Rs. 1,000. incidental expenses at time of purchase and sale sere estimated at 5% on the market price. there is no tax on dividend income and capital gain. The shareholder expects  minimum return of 15% per annum.

Q.45 The following data pertain to forge limited:

Q.46 Your company�s share is quoted in remarket at Rs. 20 currently. The company pays a dividend of Re. 1 per  share and the investor�s market expects a growth rate of 5  percent per year. You are required to compute:

Q.47 A trader whose current sales are Rs. 15 lakhs per annum and average collections period is 30 days want to pursue a more  liberal credit policy to improve sales.  A study made be a consultant firm reveals the following information:

Q.48 From the following information taken form the books of  a manufacturing Concern, compute the operating cycle in days:

Q.49 Satija Company has the following capital structure on 1 July 2002;

Q.50 Prepare an estimate of net-Working capital requirements of Zero company for the data given below:

Q.51 A project requires investment of Rs. 75,80,000 (With nil salvage value after 5 year) in the beginning of the years 2003. You are given the following annual operating data to compute the selling price per unit of the single production to be  production and sold:

Q.52  A firm selling a consumer durable item to its two retail dealers in considering relaxation in its credit policy. The credit terms and the expected quantity (no. of units) to be sold to these two dealers is to be as follows:

Q.53 A business firm wants to convert its 8% Convertible Debentures of Rs. 100 each into shares of Rs 10 each. 5,000 such debentures are outstanding in the books. The price Earning Ratio  before this conversion is 20:1 which is expected to be 25:1 after the conversion. The present share capital comprises 1,00,000 shares of Rs. 10 each.  Firm�s EBIT is Rs. 2,00,000. Tax Rate applicable is 40%. Debentures are commanding a premium of 10% in the open market now.

Q.54 The management of a standard firm requests Y as to advise about the economic viability of a capital investment project for expansion purposes. Relevant in formation is as under:

Q.55 A companys current market price per equity share is Rs. 40,  required rate o return 14% , EPS last year was Rs. 4 and D/P  65%. It is know that DPS will grow at an annuals rate of 8% infinitely n the future. Find its equilibrium price per equity shares.

Q.56 A company desires to take up a capital project under its expansion programme involving an outlay or  investment of Rs. 10,00,000. if it sis financed through issue of Debentures (Debt) carrying 14% interest rate, the Price Earnings Ratio will be 6 times. However, if it is finance through Equity Capital issued at premium of Rs.15. then the Price Earning Ratio is to be 7 times. This expansion programme is likely to enhance firm�s sales by Rs. 6,00,000 a year with a net return of 15% on these additional sales before interest and tax.

Q.57 The capital structure of SV LTD. consists of 8% Debentures 6% preference Shares and some equity shares of Rs. 100 each in the ratio of 3:2:5. the company is considering to introduce additional capita to met the needs of diversification plans by rising 9% loan form financial instantiations. As a result of above source would  come down by 1/10 , 1/15 and 1/6 respectively.

Q.58 Mr. X is planning for his retirement. He is 45 years of age now. He wants to have Rs. 3,00,000 when he attains the age of 60. he also wants to exposit a constant amount @ 12% p.a. at the end of each of these 15 years in a PPF account for this  Money. How much should he invest annually at the beginning of each of these 15 years obtain a sum of Rs. 3,00,000 at the end of this 15 years period?

Q.59 A company issues 10% debentures of Rs. 10,00,000 (i) at per , or (ii) at 10% discount and (iii) at 20% premium, assuming the tax rate to be 28%

Q.60 A company has 11% debentures of Rs. 5,00,000 standing in its Balance sheet as on 31-3-2002maturing after 5 year. Assume the same debentures could be ssued now only at a discount of 20%

Q.61 A company has issued equity share capita at a premium of 10% incurring 5% of the issue price as cost of issue. The expected rate of dividend is 20% what is the cost of equity capital issued if the market value of equity share is Rs. 15.

Q.62 A companys present capital structure is as under:

Q.63  From the following particulars of a capital project find (i) pay back period,(ii) Rate of Return (R.O.I.) (iii) present Value Index (Cost of Capital is 10%

Initial Capital Rs.12,000 Annual Cash inflow Rs. 2,000, Life in years 8. Present value of Rs. 1 received annually for 8 years is Rs. 5.3349 [Faculty notes]

Q.64 M/s Avi Om Gupta & Co. is considering to purchase a machine.  Two machines are available X and Y each costing Rs. 1,00.000. Earning after taxation are expected to be as follows-[Dec 2001]

Q.65 M/s G.K. Dass & Co. is considering two investment proposals each of which requires an initial investment of Rs. 90,000. The total cash flows, that is, Profits after taxes and depreciation charges for each profits are as follows-[June 2003]

Q.66 Rank the investment proposals in order of their profitability according to (a) Pay back method (b) Rate of return (c) Present value method (cost of capital 10%)[Faculty notes]

Q.67 M/s Ashutosh & Co. Ltd. Is considering the purchase of a machine.  Two machines A and B are available each costing Rs. 80,000. Earnings after taxations

Are expected to be as follows:  [Faculty notes]

Q.68 M/s Mangla & Co. has got upto Rs. 3,30,000 to invest.  The following proposal are under consideration: [Dec 98]

Q.69 The engineering Department of a Company has suggested a change in operating methods and has asked for a budget appropriation of Rs. 3,200,000 for the necessary equipment.  Annual Operating Costs of the Present and Proposed methods are as follows: [Faculty notes]

Q.70 An investment of Rs.1,00,000 ( having scarp value of Rs. 5000) yields the following return-[June 2002]

Q.71 Sh. Durga Types company has a total invested capital of Rs. 10,00,000 out of this Rs. 5,00,000 has been raised through equity capital and remaining Rs. 5,00,000 through 5% debentures.

Q.72 Following is the information of capital employed by M/s Vinod Bansal & Co.

Q.73 The  Indo-American Co. Ltd. had the  following capital structure on December 31,1973 :-

Q.74 There are three companies namely A,B and C whose owned capital in each company is Rs.  1,00,000. They earn Rs. 10,000, Rs. 15,000 and Rs.3,000 respectively. Each company is in need of Rs. 1,00,000 as additional capital. If they issue 6% debentures what will be the impact on equity?

Q.75 If a company has 30% debt and 70% equity and earns 15% on total capital before taxes, what is the recent on equity, assuming it pays 10% for debt capital an taxes are 50%?

Q.76 The Boots corporation is a new form that wishes to determine an appropriate capital structure. It can issue 8% debt and 6% preferred and has a 50% tax rate. The initial capitalization the form will be Rs. 50 lakes. The  possible capital structure is:

Thursday, 03 December 2015 11:52

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT QUESTION BANK

Q1. Why should an organisation introduce a grievance procedure ? Explain the pre-requisites      of a grievance procedure briefly outline the features of a grievance procedure and the steps in grievance handling.

Or

Briefly outline the features of a grievance procedure and the steps involved in grievance handling.

Q2. Why should organisations have formal grievance procedure

Q3.  Explain the meaning of grievence. Explain the causes of grievances

Q4. Explain machinery for  redressal of grievances

Q5. What is the role of workers participation in management ?discuss. Briefly discuss the level and forms of workers participation in management. Comment upon the. Effectiveness of any one of the forms discussed

 

Q6. Describe the objectives and significance of workers participation

Q 7.  Distinguish between career and succession planning suggest the measures for effectivecareer planning and development.

Q 8 . Define performance appraisal. What are its objectives discuss different methods of appraisal and their merits and demerits

Q 9. Explain the purpose of induction and how it should be conducted. How can it be made more effevtive ? Discuss.

Q 10 . Discuss the significant processes of collective bargaining. What are the objectives and functions of collective bargaining ? Explain the different forms  of collective bargaining. Is the scope of collective bargaining widening in the present scenario ? Discuss.

or

what is the importance of collective bargaining ? Explain the process of collective bargaining and factors essential for successful functioning of collective bargaining

Q 11 . Define and discuss the relationship between job analysis, job descriptions and jobspecifications. Explain the objectives of job evaluation and the procedure for evaluating jobs suitable examples.

 

Q12. Identify the similarities and differences between maslows theory of motivation and herzbergs theory. Discuss critically.

or

what is motivation ? Discuss how mallows theory of motivation differs from herzberg's theory and describe the relevance of these heories

Q 13.what is the process involved in selection ?  How does it differ form placement ? Explain the steps involved in an effective selection programme.

Q 14 define recruitment. What are the methods and techniques of recruitment ? Explain the advantages and limitations of recruiting from internal sources and external sources.

Q 15. Define the term discipline. Discuss different approaches to discipline. Explain the context in which disciplinary procedure is conducted.

Q 16. What is the use of job analysis in managing human resources ? Explain  the methods that can be used to analyse jobs and dicuss the advantages and limitations of them.

Q 17. Explain the essential pre-requisites for a good training programme and evaluate various types of training programmes prevalent in the organisational set-up.

Or

what principles to be kept in mind while designing a sound employee training programme

Q 18. Distinguish between motivation and morale. Discuss the signifiance of morale and its relation to productivity

Q 19. Describe the various kinds of punishments, which are inflicted on a worker for misconduct and explain the procedure of domestic enquiry and the importance of it.

Q. 20. Explain the objectives and significance of labour welfare measures ands social security benefits.

Q 21. Explain briefly important interview techniques used for selecting managerial staff.

Q 22. Discuss the concept and evolution of social security.  Briefly examine the legislative measures adopted in india to ensure social security benefits to industrial workers.

Q 23. Explain the concept and forms of industrial democracy.  Discuss how industrial democracy is practiced in your organisation or an organisation you are familiar with.  Briefly describe the organisation you are referring to.

Q 24. Explain the objectives and  importance of workers participation in management

Q 25. Explain the relationship between motivation and rewards.  Bring out the different reward systems in an organisational setting.  Describe the role of financial and non-financial reward system in improving organisational performance with reference to your organisation or an organisation you are familiar with.  Briefly describe the organisation you are referring to.

Q. 26. Explain the meaning, need, importance and methods of training.  Discuss the existing training system of your organisation or an organisation you are familiar with.  Describe how an organisation identifies the needs of training and comes up with the appropriate training programmes. Describe the organisation you are referring to. 

Q 27. Explain competency approach to job analysis (june 2005)

Q 28 . Describe the process of human resource planning with reference to your organisation or an organisation you are familiar with.  Suggest some measures for improvement of the existing hrp system.  Describe the organisation you are referring to

Q 29.   Define hrm.  Discuss the importance and scope of hrm citing suitable examples.  List the functions of hrm in your organisation or an organisation you are familiar with.  Briefly describe the organisation you are referring to.

Q 30. Define industrial relations in your organization also explains its objectives and significance. Briefly explain various approaches to industrial relations

Q 31 . Discuss the concept of human resource audit, its benefit and scope.  Collect few hr audit reports of your organisation or an organisation where hr audit is carried out and write down your comments regarding their relevance.  Briefly describe the organisation you are referring to.

Q 32. Explain the concept of human resource accounting, its objectives and its role in human      resource management. Describe the human resource accounting (hra) system being       practiced in your organisation or any organisation you are familiar with. Briefly describe     the        organisation you are referring to.

Q 33. What is performance appraisal? Discuss its advantages and limitations

Q 34. What are the aims and objectives of the employers organizations in india? Describe the structure and functions of employers organization

Q 35. What do you understand by the term empowerment?  Make an assessment of your organisation or an organisation you are familiar with and prepare a report as to whether any of the empowerment activities have been undertaken or not.  Briefly describe the organisation you are referring to.

Q 36.explain different types of incentive systems. Discuss, the incentive scheme being followed in your organization or an organization you are familiar  with.  Bring out the advantages and limitations of this scheme. Briefly describe the organization you are referring to.

Q 37. Write short notes

  1. manpower planning
  2. retrechment vs dismissal
  3. motivation and morale
  4. collective bargaining
  5. career planning and succession planning
  6. training and developments
  7. fringe benefits
  8. industrial tribunal
  9. tripartite wage board

10.  theory x and y of motivation

11.  gripe box

12.  dearness allowance

13.  wage boards

Thursday, 03 December 2015 11:45

Organizational Development question bank

 

Q. 1  Distinguish between formal and Informal Organization

Q.2. Distinguish between line organisation vs. Line & Staff organisation.

Q.3. What do you understand by (i) line organisation (ii) Functional organisation and (iii) Staff organisation?

Discuss their advantages and disadvantages. What are the likely sources of conflict between line and Staff in an organisation?

Q.4 Write short notes on Quality of working like

Q.5 Write short note on classical vs. Neo-classical organisation Theory

Q.6 Write short note on role of change agent

Q.7 Write short notes on Management objectives.

Q 8. Distinguish between mechanistic structure and organic

Q.9 Explain the salient characteristics of organizational development. Cite examples to illustrateyour answer

Q.10 Explain the benefits of organisation Development.

Q.11 Describe different approaches to organisation and their relevance.  Explain 7Ss Model and its significance in organisations.  Discuss with suitable examples.

Q 12. Explain the concept of quality of working Life  (QWL) in broader societal perspective. Discuss how does socio-cultural conditions affect the QWL in your organisation or an organisation you are familiar with and suggest some methods to improve the QWL in the organisation.  Briefly describethe organisation you are referring to.

Q 13. Discuss the concept of organisational analysis and organisational diagnosis.  Describe the different perspectives of organisational analysis by citing examples.  Describe how organisationalanalysis is conducted in your organisation or an organisation you are familiar with.  How far it was successful?  Describe the organisation you are referring to.

Q 14. Discuss the meaning, purpose and approaches of job design with suitable examples. Describe how job design is carried out in your organisation or an organisation you are referring to.

Q 15. The dysfunctional aspects of bureaucracy tend to overshadow the functional aspects over a period of time.  In the light of above statement, examine the merits and demerits of bureaucracy for the organisation you are working for or familiar with.  Briefly describe the organisation you are referring to.

Q 16. What is the impact of work redesign on different aspects of the organisation.  Evaluate this taking into consideration your organisation or an organisation you are familiar with

Q 17. How do you construct a questionnaire for the purpose of organisational diagnosis?  Discuss this with reference to your organisation or an organisation you are familiar with.  Describe the organisation you are referring to. uestionnaire Design

Q.18.  Discuss the impact of work structuring on different organisational roles citing suitableexamples.[June 2003, Faculty notes]

Q.19 Describe different phases of a planned change.  Discuss how resistance to change can be reduced with suitable examples.  Describe the organisation you are referring to.

Q.20 . What do you understand by change?  Explain the factors which trigger for change by citingsuitable examples, with reference to your organisation or an organisation you are familiar withDescribe the organisation you are referring to.

Q.21.  Discuss some of the cross-cultural experiences of organisational culture and change in the Present scenario.  Illustrate with reference to an organisation where culture change has taken place.  What steps could be taken to close cultural gaps?  Discuss.

Q.22.  Explain the concepts of delegation of authority and Decentralisation.  What are the individual and organisational factors that influence the decentralization process?

Q.23. Who is a transformational leader?  Discuss the importance of being transformational leader and factor required to be transformational leader.

Q.24. Describe the salient features of Role Analysis Technique (RAT).  If you are asked to undertake the RAT exercise then explain how would you carry it out in your organisation or an organisation you are familiar with.

Q.25.  What are the factors you shall keep in mind while designing an organisation ?  Re these factors taken care of by the organization you are familiar with ?  How do you evaluate the organisation in this regard ?  Briefly describe the organization you are referring to.

Q.26.  Explain technology and organisation structure.

Q.27 What are the characteristics of bureaucracy ?  Under what conditions is bureaucracy encouraged in organisations? Discuss

Q.28.Explain the organisational environment and its significances in studying the organisationaldevelopment.

Q.29.  Differentiate between mechanistic and organic structures.  Under what circumstances would each type of structure be more beneficial in achieving  organisational goals.?

Q 30. Distinguish between tasks and activities in your organization or any organization you are familiar with. Suggest measures to improve the organization structure, which would enhance its effectiveness. Briefly describe the organization you are referring to.

Q 31. What are the general sources of conflict in an organization also explain the ways how conflictcan be managed.   Which way of managing conflict you feel better and why  particularly in the organizational situation where you are working or familiar with. Briefly describe the organization you are referring to.

Q 32. Define role descriptions and discuss its uses.  List out the factors contributing to role changes in the context of your organisation or an organisation you are familiar with.  Briefly describe the organisation you are referring to.

Q 33. What is the purpose and meaning of an OD intervention?  Describe any two interventions and their merits and demerits with reference to an organisation.  Briefly describe the organisation you are referring to.

Q 34. List out the skills required for the role of a change agent.  Describe yourself as a change agent and the tasks you perform as a change agent in your organisation or an organisation you are familiar with.  Briefly describe the organisation you are referring to.

Thursday, 03 December 2015 11:42

ORGANIZATIONAL BEHAVIOUR

ORGANIZATIONAL BEHAVIOUR QUESTION BANK

Q1.(a). In Human Relations Movement, according to Fred Luthans three major events took place, describe these with suitable examples.

(b).  Define Organizational Behaviour, what are the basic assumptions, which you come across during the study of this subject.

Q2.      (a).  Enumerate the basic Fundamental Concepts of Oranizational Behaviour. Also, give out various 4 models with facets one can read in this subject study.

(b).  Describe the theory of unconscious behaviour as shaped by Sigmund Freud. Give out the characteristics of needs or motives, which are directed to satisfy by Human behaviour

Q3.      (a).  Defense mechanism serve as an important function of keeping the human personality integrated, bring out these dense mechanism including the psychological process with illustrations

(b).  Discuss the major differences between content and process work theories.  Explain Abraham Maslows theory of Need-Hierarchy.

Q4.      (a).  Enumerate Herzbergs two factors theory of motivation including principle of job enrichment.

(b).  Define morale, it is said, the higher the morale the higher is the productivity.  However, it may not be true in all cases, illustrate this through a graph.

Q5.      (a).  Explain the various Ego states through which a person oscillates during has daily activities.

(b).  Often the choice of wrong kind of personality proves disastrous for any organization,elucidate?  Bring out the major determinants of any personality

Q6.      Write short notes: -

(a).  Perception

(b). Attitude, Belief & Ideology

(c).  Stress & State of Exhaustion

(d). Leadership & its styles

(e). Path Goal theory of leadership

(f). Organizational resistance to change

Q.7 What are the various determinates or organisational culture/ How does leadership influence the culture of an organisation?

Q.8 Why do people generally resist change?  Do personal factors play a role in this process? What are the common coping strategies for change?

Q.9 Describe conflict avoidance conflict diffusion and conflict confrontation strategies with the help of suitable examples

Q.10 Distinguish between decision making under risk and decision making under uncertainty

Q.11 What kind of decisions is a manager generally required to make in organizational context?

Explain with examples as to which of these correspond to programmed and non-programmed categories

Q.12 What is the system approach to management ? Explain the salient features of this approach

Q.13 Describe various managerial skills briefly. Discuss the roles these skills could play in building an institution.

Q.14 Describe various managerial skills briefly. Discuss the roles these skills could play in building an institution

Q.15. Explain the approaches to leadership and discuss which could be the best suitable style of leadership. Give reasons

Q.16 Define organisational structure and explain with suitable examples how structure and productivity can be linked to each other.

Q.17 What are the major sources of conflict in an organisation ? Discuss the consequences of inter-group conflict and ways to reduce its negative impact.

Q.18 Compare and context theory X and Y. Discuss their relevance in Indian organizational context

Q.19 What are the salient features of different models of decision making? Making any two of them in details and compare them

Q.20 What are the consequences of intergroup conflict ? What are the ways to reduce the nagative cosequence if inter group conflict

Q.21 Define organizational effectiveness. How do you differentiate effectiveness from efficiency? Comment critically with suitable examples from Indian organizations. ?

Q.22 Identify major barriers of communication and explain why do they arise. Explain way to overcome these barriers with suitable example

Q.23 In What ways can a business enterprise discharge its social responsibility? Explain with examples

Q .24  Describe various leadership styles. What kind of leadership style is best suited for a production oriented organisation? Give reason

Q .25  Describe various leadership styles. What kind of leadership style is best suited for a production oriented organisation? Give reason

Q 26. Distinguish between the mission, objectives and goals of an organization. Explain the process of strategy formulation being followed in your organisation or any organisation you are familiar with. Briefly describe the organisation you are referring to.

Q.27. What is professional management? Discuss, how professional managers manage survival and growth of the organisation you are working in or familiar with. Give  three ideas  which you think can improve organisation efficiency. Briefly describe the organisation you are referring to.

Q 28 Distinguish between culture and climate. Explain the influence of leadership style on organisational climate in your organisation or any organisation you are familiar with. Briefly describe the organisation you are referring to.

Q 29. Explain different types of conflicts. Discuss the sources of conflict and strategy for resolvingconflicts in your organisation or any organisation you are familiar with. Briefly describe the organisation you are referring to.

Q 30. Explain the process of Communication.  Discuss various communication net works being used in your organisation or any organisation you are familiar with. Identify which is the most effective one? Why? Briefly describe the organisation you

are referring to.

Q 31 Explain different types of organisational structures. Describe the structure of your organisation or any organisation you are familiar with. Suggest suitable measures for restructuring and discuss the reasons for it.

Q 32Explain different types of organisational structures. Describe the structure of your organisation or any organisation you are familiar with. Suggest suitable measures for restructuring and discuss the reasons for it.

Q.33  Discuss whether you  need any control when every thing going as planned. Design a control system for controlling the performance of your own subordinates, keeping in view the characteristics of effective controls.  Examine the control methods and strategies used in your organisation or any organisation you are familiar with. Briefly describe the organisation you are referring to.

Q 34. Explain the concept of Management by objectives (MBO). Describe some of the successes and failures associated with MBO.   How does MBO work in your organization or any organization you are familiar with. Discuss its advantages and limitations. Briefly describe the organization you are  referring to.

Q 35. Distinguish between tasks and activities in your organization or any organization you are familiar with. Suggest measures to improve the organization structure, which would enhance its effectiveness. Briefly describe the organization you are referring to.

Q 36. Explain the tasks of a professional manager. Identify the  managers whose prime task is to plan and steer the future of the organization you are working in or familiar with. What are the various survival and growth options which your organization has adopted in the recent past. Briefly describe the organization you are referring to.

Q.37 Give a list of the motivational techniques.  Critically evaluate the motivational techniques of your organization or an organization you are familiar with.  Do you think they are conducive for a productivity oriented work culture?

Q.38 What is professional management?  Does the management of your organization or an organization you are familiar with fit into the criteria of professional management? Discuss how would you promote professionalism in your organization.  Briefly describe the organisation you are referring to.

Q.39 Define communication and comment on the efficacy of the communication system in your organization or an organization you are familiar with.  How can the communication system made more effective?  Discuss.  Briefly describe the organization you are referring to.

Q.40 Discuss the process of planning.  In your opinion the process of planning and controlling are interlinked or not?  Explain with suitable examples.

Q.41  Discuss Various Decision-Making Models.  Which Model According To You Is The Best Model?   Justify Your Answer With Example.

Q.42 Discuss the concept of inter-personal relationships.  Discuss the existing inter-personal relationship scenario of your organization or an organization you are familiar with.  Suggest few improvements strategies to develop the skills required for the inter-personal relationships.  Briefly describe organization you are referring to.

Thursday, 03 December 2015 11:41

Marketing management

Marketing management question bank

 

Q 1. What is product life cycle? Explain its various stages

Q 2: Write Short not on Elements of Marketing Mix

Q. 3 Write Short note on Advertising and Publicity

Q.4 Discribe the functions of Packaging

Q.5 Write Short note on

(1)Factors influencing consumer behaviour

Q.6 Middlemen are Parasites  This Charge has been made by many over the centuries. Is thus likely to be case in a competitive economic system? why or why not?

Q. 7 What are  the bases for market segmentation ?

Q. 8 what is brand? What distinct advantages do companies get from branding?

Q.9 Write Short note on full cost pricing and triangular cost pricing.

Q.10 write short note on retailing)

Q. 11 write a short notes on secondary data and its resources

Q.12 What are the determinants of the promotion Mix? Explain

Q.13. Write Short note on Sales Promotion

Q. 14 Write a short note on Family brand and individual brand

Q. 15 Write short note on recruitment and selection of Sales man. [Faculty notes]

Q. 16 What are the steps in the consumer decision making products? Do all consumerdelusions in value these steps?

Q. 17. You are the marketing manger of a medium-sized manufacturing company. The president has just made the following statement: The distribution activity is not a concern of the marketing department is to sell the product- let the rest of the company handle production and distribution; How would you reply to this statement? Discuss whether you are agree or disagree with the statement and justify your answer

Q.18. Marketing management is the process of scanning the environment, analysing marketing opportunities, designing marketing strategies and then effectively implementing and controlling marketing practices. Discuss

Q.19 Write short note one:-

  1. 1. Mark up pricing

Skimming

Q 20 Write short note on Product mix

Q.21 (a) Discuss fully the Stimulus Response Theory or Socio-Cultural Theory ofConsumer Behaviour

Q22. Write short notes on significance of marketing research.

Q.23 What is umbrella brand? Distinguish between brand extension strategy and multibrand strategy.

Q.24. Explain Hierarchy of Effects?

Q.25 What are the various methods for forecasting the sales of a new product.

Q.26  Marketing is a system of integrated business activates designed to develop strategic plans (in the form of marketing mixes) leading to the satisfaction of customer want of selected market segments. Explain.

Q.27 Explain some of the sales promotion methods directed at consumers.

Q.28 (a) Explain the accepts of marketing which are sought to be regulated under theConsumer Protection Act,

Q.29 Write short note on Direct Distribution

Q.30 what are channels of distribution? What channels of distribution would you suggest for marketing.

(i) Canned Food

(ii) Bicycles

(iii) Pens

(iv) Fertilizers

Q.31 Advertising and sales promotion are complementary to personal selling as tools of promotion. Comment

Q. 32 (a) What is Penetration Pricing? Describe the situations where penetration pricing is suitable.

Q 33. Discuss the role of marketing in the following context :

  1. Branded packaged product
  2. Social marketing program\

Q 34. Explain segmentation as a tool for market penetration. Discuss the bases of segmentation for the following products (i) Frost free refrigerators

(Ii) Branded atta

 

Q 35. List out and discuss some major sources of secondary data. What constraints marketers encounter in using secondary data in marketing decision making?

Q 36. Understanding the consumer post purchase evaluation process is important to marketers,             why ? How can marketers control cognitive dissonance? [Faculty notes]

Q 37. Packaging has a direct bearing on the consumer buying behaviour. How and why?

Q38.Distinguish transactional marketing Vs cyber marketing.

Q 39. Discuss in detail the various costs associated with the physical distribution.

Q 40. Specify both the internal and external challenges faced by Indian firms while pricing their products.

Q 41. What unique characteristics make services different from tangibles. Explain. What are the implications of these characteristics in designing a suitable business strategy?

Q42.  What do you understand from Segmentation, Targeting and Positioning (STP) strategies? What are its merits and demerits for the marketers?

Q 43. What is marketing research. ? Discuss its scope in accomplishing the marketing goal of profit maximization set by the firm. Explain with suitable examples.

Q44 criticaly evaluate the promotional packaging techniques being offered by any 3consumer non-durables of your choice.

 

 

 

Thursday, 03 December 2015 11:37

Strategic Management

Strategic Management question bank

Q1.  Why should a company have Mission Statement ?  Discuss its role and functions.  Give examples of mission statements in relation to any three of the following organisations:

  1. A corporate hospital in the private sector
  2. A specialised professional educational and training institution in the Government sector
  3. A technical and management consulting firm in the private sector.
  4. A electric supply undertaking in the Government sector

OR

Briefly explain 7-S Framework.  In what way can the framework be helpful in strategic formulation and implementation?

 

Q.2.  Enumerate the consistent of mega and micro environments of a business firm.  How are the two types of environments interrelated ?  Illustrate your answer with suitable examples.

OR

What are the different criteria for classifying organisational elements into strengths and weaknesses?  Illustrate with suitable example.   Are different criteria exclusive?

 

Q.3.   In what ways do the BOG Matrix GE Planning Grid, and Shells Directional policy Matrix differ from each other / Explain how such portfolio matrices are helpful in strategy formulation.

OR

Briefly explain and then discuss in which situations the following strategies would be useful:

  1. Turnaround strategy
  2. Takeover strategy
  3. Vertical Integration strategy.

Q.4.  Briefly discuss the elements of successful implementation of strategies.  What checkpoints could you use in pre- implementation phase of a strategy.

OR

What factors could corporate decline ?  What measures have been taken in India to deal with corporate/ industrial sickness?  Examine critically.

 

Q.5.  What role does the Board Directors (BOD) play in strategic management of a company ?  What kind of relationship may the BOD have with the top management of the company ?  Examine and discuss.

OR

Explain the concept of corporate strategy.  What kinds of people in a company are responsible for strategic decisions and their implementation?  Is strategic planning the same as strategic management ?

 

Q.6. Why is competitive analysis needed for as business enterprise ? Explain how porters framework to analyze industry structure can be helpful in competitive analysis.  Explain the relevance of the model.

OR

What criteria can be used for determining strengths and weaknesses of a corporate entity ?  what measures can be used for determining strengths and weaknesses ?  Discuss briefly.

 

Q.7.   What is BCGs Growth Share matrix?  Construct a BCG matrix based on hypothetical data.

OR

What role do costs play in different market conditions?  How does this role change? Does Porters generic business strategy of cost leadership have nay relevance in this context ?

 

Q.8.  Distinguish between related and Unrelated diversifications.  Examine the merits and demerits of each.  What kind of trend, in this context, has been dissemble over the recent past?

OR

It is often said that strategy; implementation is much more difficult land challenging than the strategy formulation.  Why is it so? What would you suggest to a company for effective implementation ofstrategies?

Q.9.  There are some managerially  derived expectations from the Board of Directors (BOD) of a company.  What are these expectations
?  Discuss and make a critical assessment of the role of the Board of Directors in the context of Indian corporate sector.

Q.10.  What constitutes socio- cultural and political environment for a business enterprise ?  how do the trends in such environment impact upon a company?  Illustrate with examples.

OR

What is meant by competitive advantage?  How can a company build competitive advantage? Explain giving suitable examples.

Q.11.  What is portfolio analysis in the context of strategic management? What considerations would guide you in balancing the portfolio?

OR

Describe the techniques of strategic financial analysis and explain one of them in detail, pointing out its merits and demerits.

Q.12.  What strategic options may a company have ? Explain and also discuss the risks attached with each option.

OR

Distinguish between backward and forward integrations.  Pointing out the situations in which each would be advisable.  Examine the merits and demerits of both types of integration.

Q.13  (a) Is there any difference between corporate objectives and corporate values? What factors affect corporate values? Discuss briefly.

(b) What role could the Board of Directors play in the area of strategic management? Discuss.

Q.14 (a) What is "competitive advantage"? Citing some real life examples, discuss how competitive advantage could be gained

(b) "The purpose of internal analysis is to match strengths and weaknesses with opportunities and threats." Explain.

Q.15.(a) What factors cause Experience Curve Effect? Discuss briefly. (b) Explain briefly the PIMS model portfolio analysis.

Q.16.(a) How would you predict company failures? Discuss briefly any measurement model in this context.

(b) Differentiate between Concentric and Conglomerate diversifications, citing examples for each.

Q.17. (a) What are the characteristics of Strategic Management Decisions? Differentiate between ! Strategic Decisions and Operating Decisions.

(b) What is meant by "distinctive competence"? In what ways can a company attain distinctive competence?

Q.18(a) Discuss some tools (or frameworks) for analysing the impact of environmental opportunities pointing out their relative merits and shortcomings.

(b) Differentiate between the Economists and the Marketing viewpoints regarding the study of competition.

Q.19(a) Explain briefly Patel and Younger's approach for assessing the strategic position of a company. In what way you think, is this approach an improvement over product portfolio matrices?

(b) What is `Synergy'? What could be the different types of synergies and how can they be brought about? Explain briefly.

Q.20.(a) "Implementation of strategy requires right organisational structure" Explain.

(b) A friend of yours bring to you a proposal for the acquisition of a medium scale company. How would you judge the suitability of the proposal?

Q.21.(a) What are the various routes to building competitive advantage? Discuss them.

(b) Differentiate between the Grid Approach and the 7-S Framework for analysing strengths and weaknesses of a given corporate entity.

Q.22.(a) Explain how at different stages in the life cycle of a product, business organisations need to adopt different strategies.

(b) What do you understand by the term Diversification? When is it resorted to? Explain relevance of the concept of core competencies while evolving diversification strategy and plans.

Q.23.(a) "The success of a takeover, to a large extent, depends upon the post-acquisition management." Explain it with corporate experiences.

(b) What are the structural requirements for proper evaluation, control and updation of strategies?

Q.24.(a) Do you agree with the suggestion that it is now imperative for all enterprises to evaluate global environments for their survival? If yes, why? If no, why not?

(b) Explain what do you understand by turnaround and list various types of turnaround strategies. Discuss them briefly.

Q.25. (a)  Differentiate between strategic decisions and operating decisions, giving examples.

(b)  Evaluate the different approaches to corporate planning, pointing out their relative merits and demerits.

Q.26.  (a)  What are the uses f experience curve in competitive strategy;? Explain. (b)  One purpose of internal analysis is to match strengths and weaknesses with opportunities and threats. Explain.

Q.27. (a)  What are different types of synergies an how can they be brought about? Explain and illustrate.

(b)  Under what conditions are internal and external routes to growth advisable?  Support your answer with some real  life examples.

Q.28.  A company intends to take over another company and approaches you for advice.  What guidelines in general would you like to suggest to the company to follow before and after takeover?

Q.29.  (a)   Implementation of strategy requires right organisation structure. Discuss.

(b)  Indian firms have not been driven by competence  led growth.  Comment on the basis of the system of Industrial licencing prevalent in the past.[20]

Q.30. (a)   Enumerate and briefly explain the various strategies that an organization may ha.  What characteristic should these strategies have in order to be successful?

(b)  Are strategy, strategic plan and corporate plan the same? Discuss.  What could be some of the reasons for failure of plans?

Q.31.  Discuss the importance of mission statement in strategy formulation.  What does a mission statement convey?  Give examples of mission statements for the following organisation:

(a)  An organisation providing internet and related telecommunication services.

(b)  A corporate hospital in private sector.

(c )  A company manufacturing heavy machinery in public sector.

Q.32.  Discus the role and functions of Chief Executive officer (CEO) of a company.  How can he contribute in fostering appropriate values and culture for the organisation?

Q.33.  What is competitive analysis?  In what ways can a company build up competitivg3e advantage?  Explain with examples.

Q34.  Explain and indicate the uses of

  1. GE Planning Grid
  2. Arthur D. Little Companys Matrix

Q.35.  Explain with examples importance of key success factors in strategy formulation and implementation.  How wo7uld you determine them for a particular organisation?

Q.36.  Discuss the motivations for mergers and acquisition of businesses.  Why is post- acquisition management important?

Q.38. Briefly explain McKinsey 7s Framework. How can it be helpful in strategic management?

Q.39.  "The role of BOD is to govern and not to manage" Discuss the statement, bringing out the elements of corporate governance.

Q.40. Briefly explain the constituents of the micro environment of a business organisation, individually or collectively, improve industrial relations climate within and outside?

Q.41. (a)  Explain the concept of strategic choice in relation to inventory items.  What are its uses and limitations?

(b)  What ratios, do you think, can be useful to strategic analysis?  Illustrate your answer.

Q.42.  Why is pre  implementation evaluation of strategy important ?  What check-points would you like to use in the process of evaluation?

Q.43.  Distinguish between  integration and diversification.  What are the pre-requisites for success of conglomerate diversification? Explain.

Q.44.  What role does the Board of Directors play in the strategic management of an organisation? In what way is the Board of Directors (BoD) involved in corporate governance? Discuss.

Q.45.  Explain how portfolio matrices are helpful in strategic analysis. 1-low does the GE Planning Grid differ from BGG matrix?

Q.46. Differentiate between concentric and conglomerate diversification, citing examples of each. In what way is the concept of diversification related with `core competence'?

Q.47. "Strategic management without effective implementation has no meaning." Discuss. How would you ensure successful implementation of strategies?

Q.48.(a) How can a firm build 'competitive advantage'?

(b) "Business firms need to adopt different strategies during the different stages of the product cycle of a product." Explain with examples.

Thursday, 03 December 2015 11:33

Industrial relations

Industrial relations question bank

Q.1. (i)  Explain the determinants of  union  management relations.  Suggest with the help of anexample measures for improving union  management relations in organisations.

(ii)   Describe the influence of International Labour Organisation (ILO) on industrial relations system in India.

Q.2. (i)    Describe the genests and state of the present structure of trade unions in India.

(ii)    Evaluate the status of internal leadership in unions in Indian industries.  Can external leadership influence health of industrial relations. ?

Q.3.(i)  Discuss the reasons for linter group conflicts in organisation Suggest suitable interventions  for resolving ns conflicts.

(ii)   Describe negotiation  process.  Identify the skills which negotiators should possess and give suitable examples.

Q.4.(i)  Explain models in Workers Participation in Management.  What are the prerequisites for success  in Workers Participations in Management ?

(ii)  Evaluate the influence of labour legislations on industrial relations in India.

Q.5(a)   What are the salient features of labour policy, available in the Indian Constitution ? How has labour policy evolved during the five year plans.?

(b)  What are the major issues which influence industrial relations in resent India ?  Describe industrial relations  perspectives for India.

Q.6.(a)  Explain the provisions for registration of trade unions as given in the Trade Unions Act1962.  What are the obligations and rights of a registered trade union ?

(b)  What are the aims and objectives of employers organisation ?  Explain organisation and management of employers organisations in India.

Q.7. (a)  Explain structure of Collective Bargaining.  What are the emerging corners in bargaining ?

(b)   Explain various machinery for investigation and settlement of disputes as prescribed in the Industrial Disputes Act 1947.

Q.8. (a)   Identify and explain the measures required making workers participation more effective.

(b)   Explaining the emerging trend in union  - management relations in India.  What do you suggest for legislative. Intervention for better union  - management relations. ?

Q.9.  What are the broad approaches of  management towards unions and how they influence theUnion  Management  Relations ?

Q.10.  Explain the importance of the Trade Union Act, 1926 in the growth of the trade unions inIndia, State briefly the rights and obligations of trade unions under this Act.

Q.11.  Distinguish between registration and recognition of unions.  
What are the criteria prescribed for the recognition of the trade unions under the code of discipline?

Q.12.  Explain the concept of class interest, How do class interests lead to conflict between labour and management ?

Q.13.  Explain the concept of workers  participation in management.  Briefly discuss the levels and forms of workers participation in management in India.

Q.14. Which are the central trade union organisations recognised by the Central Government for the purposes of national and international tri  partite forums Like ILO and Indian Labour Conference ?  Discuss the philosophy and working of any two of them.

Q.15.  Briefly explain the new developments that are taking place on the Indian Economic and Industrial scene.  In what way are they likely to affect union  management relations ?

Q.16. Distinguish between registration and recognition of unions.  What are the criteria prescribed for the recognition of trade unions under code of discipline.?

Q.17. Explain the concept of call interests.  How do class interests lead to conflict between labour management ?

Q.18.  Critically examine the trends in Collective Bargaining with respect to

(i).            Managerial rights

(ii).            Productivity bargaining,. And

(iii).            Concession bargaining.

Q.19.  Explain the concept of workers Participation in Management Briefly discuss the levels and forms of Workers Participation in India. 

Q.20.  Which are the Central Trade Union Organisations recognised by the Central Government for the purposes of national and international tripartite  forums like ILO and Indian Labour Conference.  Discuss the philosophy and working of any two at them.

Q.21.  Write short notes on any three of the following:

(i)   Strategies for interpersonal conflict resolution

(ii)  Negotiation Process

(iii) Voluntary Arbitration

(iv)  Role of state in IR

(v)   Weak Tripod :  Atrophied Tripartism

 

Q.22.  Critically evaluate the changing role of trade unions in the liberalised economy.  Substantiate  your point of view with suitable examples.

Q.23.  What has been the impact of multiplicity of unions on the Industrial Relations ?  How can this problem be resolved ?

Q.24.  Critically examine the role of state in the resolution industrial disputes / conflicts in India.

Q.25.   For any scheme of workers participation in management to be effective both the management and workers must develop a favourable attitudes.  Elaborate the statement explain with suitable examples.

Q.26.  Examine the trends in collective bargaining with respect to

(i)   managerial rights.

(ii)  Productivity bargaining and

(iii) concession bargaining.

Q.26.  Write short notes on any three of the following

(i).            Negotiation process

(ii).            Voluntary Arbitration

(iii).            Strategies for interpersonal conflict resolution

(iv).            ILO

(v).            Employers organisations

Q.27.  Distinguish between registration and recognition of unions.  What are the criteria prescribed for the recognition of trade unions under the code of discipline ?

Q.28.  Explain the concept of class interest.  How do class interests lead to conflict between labour and management ?

Q.29.  Which are the central trade union organisations recognised by the Central Govt. for the purposes of national and international tripartite forums like ILO and Indian Labour  Conference ?  Discuss the philosophy and working of any two of them.

Q.30.  Examine the usefulness and scope of Voluntary Arbitration  as a mode of settling industrial disputes.  What procedure is followed in general when a dispute is referred to arbitration ?

Q.31.  Workers participation in management has not made any substantial progress in India . Critically analyse this statement

Q.32.  Write short notes on any three of the following:

(i).            Collective Bargaining

(ii).            Week tripod

(iii).            External Leadership in TUS

(iv).            Cross Cultural Aspects of UMR

(v).            Union Elections in India.

Q.33.  Distinguish between registration and recognition of trade unions.  What are the criteriaprescribed for the recognition of trade unions under the code of discipline?

Q.34. Define the concept of workers  participation in management.  Briefly discuss the levels and forms of workers participation in India.

Q.35.  Explain the concepts of class interests.  How do class interests lead to conflict between labour and management ?

Q.36.  Examine the usefulness and scope of Voluntary Arbitration as a mode of settling industrial disputes.  What procedure is followed when a dispute is referred to arbitration?

Q.37.  What are the broad strategies for resolving interpersonal conflicts ?  Explain with suitableexamples.

Q.38.  Write shorts notes on any three of the following :

 

(i).            Collective Bargaining

(ii).            Negotiation Process

(iii).            Employers Organisation

(iv).            Weak Tripod :  Atrophied Tripartism

(v).            ILO

Q.39.  Briefly explain the new developments that are taking place on the Indian Economic and Industrial scene.  In what way are they likely to affect union- management relations. ?

Q.40.  Distinguish between registration and recognition of unions What are the criteria prescribed for the recognition of trade unions under the code of discipline ?

Q.41 Explain the concept of class interests.  How do class interests led to conflict between labour and management ?

Q.42.  Critically examine the trends in Collective Bargaining with respect to

(i).            Managerial rights

(ii).            Productivity bargaining, and

(iii).            Concession bargaining.

Q..43.  Explain the concept of Workers Participation Management,.  Briefly discuss the level and forms of Workers participation in India.

Q.44.  Which are the Central Trade Union Organisations recognised by the Central Government for the purposes of national and international tripartite forums like ILO and Indian Labour Conference.  Discuss the philosophy and working of any two of them.

Q.45.  Write short notes on any three of the following :

(i).            Strategies for inter  personal conflict resolution

(ii).            Negotiation Process

(iii).            Voluntary Arbitration

(iv).            Role of state in IR

(v).            Week Tripod :  Atrophied Tripartism.

 

Q.46. Do you agree with the statement that he role of trade Unions is undergoing significant changes in the present era? Elaborate this statement with reasons.

Q.47.  Discuss the concept of Multiplicity of Unions and their impact on industrial relations.  How can the problem of  multiplicity of unions by resolved ?

Q.48.  Critically examine the role of the state in the resolution of industrial disputes / conflicts inIndia.

Q.49.  For any scheme of workers participation in management to be effective, both management and workers must develop a favourable attitude.  Elaborate the statement and discuss the underlying concepts with suitable examples.

Q.50.  Explain the concept of class interests.  How do class interests lead to conflict between labour and management?

Q.51.Write short notes on any three of the following:

(i).            Negotiation Process.

(ii).            Voluntary arbitration

(iii).            Collective Bargaining

(iv).            Recognition of Unions

(v).            Employers Organisation

Q.52.  What are the approaches to Industrial Relations ? Discuss the changing context of Industrial Relations.

Q.53 Predict the future of Trade Unions by briefly highlighting its genesis and growth and present trends in the Indian context.  .

Q.54.  Discuss the need for recognition of Trade Unions.  What has been the Indian experience in this regard ?  shall it be continued as a voluntary measure ?

.Q.55. Discuss the issues and trend in Collective Bargaining in India.  If is to be made compulsory, what institutional changes shall be brought?

Q.56.  Outline the design and dynamics of Workers Participation  in Management in India.  Cite suitable illustrations.

Q.57. Write short notes on any three of the following

  1. Tripartism in Industrial Relations
  2. Adjudication Machinery
  3. Concession Bargaining
  4. Unfair Labour Practices
  5. Class Conflict
Thursday, 03 December 2015 11:29

Security and portfolio management

Security and portfolio management

Q 1 Analyse the role of Self-regulation in Indian Securities Market. Between the Self-regulation and Legislative regulation, which is more relevant for India and why?

Q 2  Most of the technical indicators make sense when viewed individually but when one examines many technical indicators simultaneously, the interpretation of their collective meaning is often contradictory and confusing Analyse this statement with the help of suitable examples.

Q 3 Compare and contrast the Fundamental Analysis and the Technical Analysis.  Between these  two, which one you consider superior and more realistic in the context of Indian Securities  Market, explain fully.

Q 4 An investor wants to invest some of his surplus money in securities. Discuss, in detail, the various steps that are involved in his investment decision making process.

Q 5 Effective regulation is an essential condition for the orderly growth of securities market. Discuss this statement fully.

Q 6(a) Discuss,  the   price-earnings   ratio  method  as  a  measure  of  future  pricing  of   an      equity share

Q 6 (b)The capital structure of  M/s  Shiva  Ltd. consists  of  equity  share  capital  of  Rs. 10 lakhs  (shares of Rs. 100 each), and Rs. 10 lakhs of 10% debentures.  The company is considering two production levels of 1,00,000 units and 1,20,000 units. The selling price of each unit is Rs.10, and the variable cost is Rs.6 per unit. The fixed cost of the company is Rs. 2,00,000. interest ondebentures is not included in either of the two costs. Applicable tax rate is 50%. You are required (i) to calculate the EPS of the company at both the levels of production, and (ii) to advise the company regarding selection of the appropriate production level.

Q 7 (a) What is Efficient Frontier? Explain the process of tracing the efficient frontier with     the help of an example.

Q 7 (b)Shiva Jyothi is considering an investment in one of the following two securities:

Q 8 Economic forecasting is the heart of economy analysis. Comment and briefly explain the various techniques of economic forecasting.

Q 9 Define Mutual Fund. What role do these funds have in an economy of a country? Discuss the main features of different types of mutual fund schemes those are existing in India. Do they follow uniform investment policy? Give reasons. (Faculty notes)

Q 10 Differentiate between creditorship securities and ownership securities. Discuss, the different types of securities that are included in each of these categories.

Q 11 a)Explain the concept of  Interest Rate Risk with the help of a suitable example and state how can this risk be avoided

Q 11 (b) A company issued a bond with a face value of Rs.5,000 and with a maturity period  of 5 years at par to yield  12%. Interest is paid annually. As a financial analyst you are required to (i)calculate the present value of the bond, and (ii) make your recommendation to buy or not to buy this bond.

Q 12 Explain the role and growth of pension funds in India. Compare and comment on the features of any two pension fund schemes of your choice?

Q 13.The following details are given for X and Y companies stocks and the Bombay sensex1425 for a period of one year. Calculate the systematic and unsystematic risk for the companies stocks. If equal amount of money s allocated for the stocks what would be the portfolio risk?

 

 

Q.16 Vigilent company stock is currently selling at Rs. 25 per share. The stock is expected to pay Re. 1 as dividend per share at the end of the next year. It is reliable estimated that  the stock will be available for as Rs. 29 at the end of one year.

a) if the forecasts about the dividend and price are accurate, is it advisable to buy at the present price?

b) if the investor required 15% return when the dividend remains constant what should be the price at the end fo the first year?

Q.17 fashions Ltd. operates a large ready made garment system in the textile industry. Assume that its common stock can be purchased in the beginning of 1997 at Rs. 40. the dividend per share would be Rs. 2 for the next three years. It is estimated that at the end of 2000 the stock will be sold for Rs. 55. what is the rate of return fashions stock?

Q.18 An investor owns the share of Rise company whose current cash dividend is Rs. 3. the constant growth rate in dividend is 16 per cent per year and the required rate of return is 20 per cent. What is the value of the Rise companys share?

Q.19  Antique Arts company would pay Rs. 2.50 as dividend per share for the next year and expected to grow indefinitely at 12%. What would be the equity value if the investor requires 20% return?

Q.20  Anil has bought the Everest company stock that has paid Rs. 3.00 as dividend per share during the last financial year. He anticipates tow situations either a 5 per cent decline in the dividend or 5% growth in the dividend in the next year. His anticipated return is 20% fix the price  for both  the situations.

Q.21 Determine the  price of Rs. 1,000 zero coupon bond with yield to maturity of 18 per cent and 10 years to maturity b) What is YTM of this bond if its price is  Rs.220?

Q.22 Arvind Considers Rs. 1000 per value bond bearing a coupon rate of 11% that after 5 years. He want a minimum yield to maturity of 15% the bond is currently sold at Rs. 870. should he buy the bond?

Q.23  A bond of Rs. 1000 face value bearing a coupon rate of 12% will mature after 7 years. What is the value of the bond of  if the discount rates are 14% and 12%

Q.24 Anand owns Rs. 1,000 face value bond with five years to maturity. The bond has an annualcoupon of Rs. 75. The bond is currently priced at Rs. 970. Given an appropriate discount rate of 10%n should Anand hold or sell the bond?

Q.25 Prem is considering the purchase of a bond currently selling t Rs. 878.50. the bond has four years to maturity, face value of Rs. 1,000 and 8% coupon raster. The next annual interest payment is due after one years form today. The reburied raze of return is 10%

 

Q.27 Case Assume yourself as portfolio manger. Raj approaches you to select two securities for him form his bundle of choice. He is having some market information too. Everyone in the market is anticipating investor friendly budget to be announced soon. With the given information , choose two securities and reasons out your selection.

Q 28 Suppose you are a Stock Broker and a member of National Stock Exchange (NSE) . Critically comment on the trading system followed by the NSE.

Q 29 What do you understand by `Benchmark Portfolios? Comment on the relevance of  Benchmark Portfolios looking at the prevalent market conditions.

Q 30 Suppose you are a Fund Manager of a mutual fund. How would you go about in creating asuitable portfolio so that the fund is able to achieve its objectives? Take a hypothetical example to explain the concept.

Q 31 How is the analysis of Oscillators or Price Indicators done? Explain giving examples.

Q 32 Investing in leveraged companies is profitable during the boom period and avoiding it during recession is wiser. Elaborate this statement giving suitable examples.

Q 33.  What is technical analysis explain technical analysis assumption ? (Faculty notes)

Q 34  Write short notes  the following

Q 35  Critically evaluate the performance of SEBI

Q 36 Discuss the Markowitz theory of portfolio selection. How does markowitz theory help in planning an investors portfolio?

Q 37 How is a sell signal generated using the following:

(i) Moving average

(ii) Oscillator , and

(iii) Relative strength index.

Q 38 What is meant by an efficient theory ? Describe the three forms of market efficiency.?

Q 39 What is an optimal portfolio? Explain the process of selecting the optimal portfolio.

Q 40 What is capital Assets pricing Model (CAPM)?Explain the CAPM and its assumption and limitation.(Faculty notes)

Q 41 Distinguish between investor and speculator ?

Q 42 . Distinguish between Aggressive stock and Defensive stock?

Q 43. Explain Relative Strength index and its application in buy/sell decision making.?

Q 44. What is the connection between risk and yield?

Q 45. Explain the following

(i) Yield to call

(ii) Realised yield

(iii) Market yield

(iv) Promised yield

Q 46 Describe the Sharpe , trey nor and the Jensen measure of portfolio performance.?

Q 47 Explain Single-Index Model ?

Q 48 Distinguish  between Debt instrument and Equities?

Q 49 What is Arbitrage Pricing Theory (APT)? In what way is it related from capital Assets Pricing Model(CAPM)?

Q 50 What are the types of mutual funds operating in India ? What are the Benefits of Investing in Mutual Funds ?

Q 51 Write short notes on a Portfolio Revision

 

Thursday, 03 December 2015 11:25

International Financial management

International Financial management

 

Q.1 Answer the following questions:

(a) Define exposure, differentiating between accounting and economic exposure.

(b) Describe at least three circumstances under which economic exposure is likely to exist.

(c ) Of What relevance are the International Fisher effect and purchasing power panty to you answer to parts (a) and (b)

(d) What is exchange risk as disinter form exposure?

 

Q.2 The principal problem in analyzing different form of export financing is the distribution of risk between the exporter and the importer. Analyze the following export financing instruments in this respect:

  1. Confirmed revocable letter of credit
  2. Confirmed irrevocable letter of credit
  3. Open account credit
  4. Time draft D/A
  5. Cash in advance
  6. Consignment

 

Q.3 (a) What risks confront dealers in the foreign exchange market?

(b) an investor wishes to buy French spot (at $0.10
IN Rs.6.68
80) and sell French francs forward for 180 days (at $0.10
IN Rs.6.68
86)

 

Q.4 Todays high interest rates put a premium on careful management of cash and marketable securities.

(a) What techniques are available to an MNC with operating subsidiaries in many countries to economize on these short term assets?

(b) What acre the advantages and disadvantages of centralizing the cash management function?

(c ) What can the firm do to enhance the advantages and reduce the disadvantages described in part (b) ?

 

Q.5 The experiences of fixed exchange rate systems and target zone arrangements have not been entirely satisfactory.

(a) What lessons can be drawn form the breakdown of the Breton woods system?

(b) What lessons can be draws form the exchange rate experiences of the European Monetary system?

 

Q.1 (a) The international economy is fast Turing into a borderless global village. Critically examine.

(b) What is the impact of devaluation on foreign investment? How is foreign direct investment different form imitational capital movements in general?

 

Q.2 (a) Explain the functions and role of the world Bank IDA and IFC. How do they differ form each other?

(b) How effective has the regulation of international financial system been? Discuss with suitable examples.

 

Q.3 what are the various kinds of foreign exchange exposures? If you are a finance manager of anIndia software Multinational Company how would you measure the possible translation exposure, if Re. devalues by 5% against $

 

Q.4 what is a political risk?  How is it forecasted? Do you think management of political risk is very crucial for successful foreign direct investment decision? If yes how? Given some examples of recent political risks in the India context.

 

Q.5 (a) What are important techniques of exposure management which may be internally adopted by a multinational firm?

(b) Spot U.K /Rs. is 1 = Rs.68.90 day sincerest rates in Indiana and U.K money markets are 10% and 6% respectively. What is the expected /Rupee 90 days forward rate?

 

Q.6 (a) In which countries or currencies would you like to retain a higher proportion of your earnings for reinvestment? Explain with reasons

(b) Write a brief note highlighting special problems of developing countries in financing foreign trade. Also indicate possible ways out.

 

Q.7 What is the difference between foreign direct investment and portfolio investment? To what extent is the building up of separate investment strategies justified by such difference?

 

Q.1(a) What is the primary goal of multinational companies? Why is stockholders wealth maximisation more important than profit maximisation?

(b) Who do volatile exchange rates exist?

 

Q.2 (a) A countrys current account balance is equal to its private savings surplus minus its government budget deficit. Assume that  a country has a current account surplus of $10,000.00
IN Rs.668,232.75
 a government budget deficit of $1,500.00
IN Rs.100,234.91
 and private savings of $12,000.00
IN Rs.801,879.30
. what is the country private investment? Is the country saving more or less than is needed to finance its private investment and budget deficit?

(b) Most developing countries have incurred huge balance of payments deficits for many years. What alternatives are available to these countries for dealing with their balance of payments problems?

 

Q.3 (a) Discuss some causes of deviations form purchasing power parity.

(b) The exchange rate for Japanese Yen is $0.00
IN Rs.0.00
69 per years and a call option has a strike price of $0.00
IN Rs.0.00
65. an investor has two call options. If the investor exercises, the call options how much profit would be realized.

 

Q.4 (a) What is the basic purpose of economic exposure management?

(b) A.U.S Company has a singly wholly owned affiliate in Japan. This affiliate has exposed assets of Y500 million and exposed liabilities of Y 800 Million. The exchange rate appreciates form Y 150 per dollar to Y 100 per dollar.

  1. what is the amount fo net exposure?
  2. What is the amount of the transaction gain or loss

 

Q.5 (a) What is the role of a factor in foreign trade? How can a factor aid an exporter?

(b) What are bills of lading and how do they facilitate trade financing?

 

Q.6 (a) Explain the theory of comparative advantage as a motive for foreign trade. What is the logic behind third- theory?

(b) Comment on the flow of foreign direct investment in India since 1991.

 

Q.7 (a) Explain the globalisation of financial markets.

(b) Why has the Euro-currency market grown so rapidly?

 

Q.1(a) Identify the factors which are to be taken into consideration by the countries, which see to make use of foreign capital on their terms.

(b) The international economy is fast turning into a borderless global economy. Critically analyse in relation to international financial System.

 

Q.2 Prepare a Balance of Payment (BoP) Statement with the following data. Show clearly, sub-balance such as trade balance. Current account balance and capital account balance etc. in thestatement.

(a) UFL Ltd. of USA invests in India. Rs.30, 00,000 to modernize its Indian Subsidiary.

(b) A tourist form South Africa buys souvenir worth Rs. 30,000 to carry with him. He also paid hotel and travel bills of Rs. 50,000 to a travel agency.

( c) UFL Ltd. remitted Rs. 50,000 as dividends to its parent company in USA.

(d) The Indian subsidiary of UFL Ltd. sold a part of its production in other Asia countries for Rs. 10,00,000. UFL also borrowed Rs. 20,00,000 to be paid in 6 month) form the British money market for meeting it immediate liquidity needs.

(e) An Indian company buys a machine for Rs. 10,00,000 form Germany. 60% of the payment is made immediately and the balance to be made after 3 years.

(f) An Indian subsidiary of French company borrowed Rs. 5,00,000 form the Indian Public to invest for the modernization.

 

Q.3 (a) What do you mean by Foreign Exchange Market? Discuss the role played by the main participants in this market.

(b) Explain briefly and illustrate with an  example the chain method of marking out cross rates.

 

Q.4 Explain the need for foreign exchange exposure management. Discuss the various external exposure management techniques thistle used to manage the exchange risk.

 

Q.5 (a) Define Letter of Credit  explain the explain the various forms of Letters of Credit. Which one is more popular and Why?

(b) Explain briefly the different types of policies offered by she Export Credit Guarantee to provide cover for shimmers made on a short term credit.

 

Q.6 (a)   In the absence fo a common currency throughout the would a series of problems arise n International case management. What are these problems? How can these problems be overcome?

(b) Explain the need for and the advantages of  centralized cashmere managements for a company which is involve in imitational business.

 

Q.7 An export company want to raise capital form international market. what are the basic considerations the firm should take into account while making this international financing decision? Explain.

 

Q.1 (a) What are the major benefits arising out of Antinationalization of financial system?

(b) What are the major challenges which the finance manages in developing countries are facing while taking decision with respect to foreign business?

 

Q.2  Critically examine Purchasing Power Parity Theory with the help of suitable examples.

 

Q.3 The nature and magnitude of foreign exchange exposure depends on the market segment in which a form operates. Comment on this statement with suitable examples. What are the important elements of a currency risk sharing agreement?

 

Q.4 (a) Briefly discuss the various types of short term capital flow.

(b) All hedging is speculation but all speculation is no hedging Discuss.

 

Q.5 What is the geographical location of foreign exchange market? Discuss in brief factions of major players in the foreign exchange market.

 

Q.6 An alterative to investing in foreign stocks is to invest in the shares of domestic MNCs. Discuss. Are MNCs likely to provide a reasonable substitute for intimation portfolio investment?

 

Q.7 Discuss in brief any four of the following :

(a) Netting and Matching

(b) Leasing and Lagging

( c) Objective and function of IMF

(d) forward Hedge

(e) comparative cost theory of intonations Trade

(f) Unique features  of  International Bond Market

 

 

Q.1 (a) Cost of Capital is irrelevant for MNCs Discuss.

(b) What is the impact of devaluation f foreign investments? Discuss.

 

Q.2 Elaborate the economic problems which various kinds of imbalances in imitational flows could create. Also discuss the measures to correct such imbalances.

 

Q.3 The changing international financial system poses new challenges for financial managers in developing countries. Elaborate.

 

Q.4 (a) Explain the relationship between forward and spot Exchange rate.

(b) Briefly explain the present Indian Exchange Rate system.

 

Q.5 Define foreign exchange risk exposure and explain different types of exchange rate exposures

 

Q.6 Compare and Contrast the following

(a) Netting and Matching

(b) Leading and Lagging

(c ) Discounting and lagging

(d) Documentary Bills and Latter of Credit

 

Q.7  Explain in detail the basic considerations involved in intimation financing decisions.

 

Q.8 What do you understand by Portfolio investment? Explain the various strategies usually employed for portfolio investment.

 

Q.9 Explain in detail the evolution of international  financial structure.

 

Q.10 What do you understand by fixed exchange rate system and the following exchange rate system? Discuss the various optional presently available under these system?

 

Q.11 Describe the different kinds of international financial flow and explain their significant for a developing country.

 

Q.12 Explain interest rate parity and describe the reasons for deviation form interest rate parity relationship.

 

Q.13 Write short notes on the following :

(a) Currency futures

(b) currency options

(c ) Currency swaps

 

Q.14 Discuss the objective of raising of resources form international markets. Also compare ADR, GDR and ECBs.

 

Q.15 Distinguish between

(a) Revocable and irrevocable letter of credit

(b) Confirmed and Unconfirmed latter of credit

( c) D/A Bills and D/P Bill s

(d) Supplier credit and Buyers credit

 

Q.16 What type of risks are present in a portfolio? Which risk remains after the portfolio has been diversified? Explain.

 

Q.1 (a) What do you understand by a multinational enterprise (MNE)?

(b) How do MNEs use the technique of transfer pricing?

 

Q.2 (a) What should be the forward rate so as to avoid arbitrage gain with the following data:

Spot exchange rate: Euro 0.90 = US $1.00
IN Rs.66.82

Interest rate:

Euro: 3.5% p.a.

US dollar: 4.5% p.a.

(b) Given the following data, find the price of US dollar in terms fo French francs:

Rs. 6.60 = FF

Rs. 43.50 = US $1.00
IN Rs.66.82

 

Q.3 (a) What is purchasing power parity (PPP)?

(b) What is likely depreciation  of  the rupee against dollar if the rate of information in India is 8% p.a. and in USA 3%  p.a.?

 

Q.4 Explain the following with suitable examples:

(a) Currency risk sharing agreement:

(b) discounting;

( c) Factoring.

 

Q.5 What do you understand by

(a) confirmed irrevocable without recourse letter of credit;

(b) Centralised Cash Management (CCM) in international context.

 

Q.6 Enumerate different strategies of foreign direct investment. Discuss in detail with suitable examples, the strategy based on exploiting a technological lead.

 

Q.1 (a) Explain environmental constraints that confect with the primary goal of multinational companies.

(b) What are special Drawing Rights? How are the value Special drawing right centerlines?

 

Q.2 (a) A county has a merchandise trade surplus of $5,000.00
IN Rs.334,116.37
 a unicameral transfer surplus of $1,000.00
IN Rs.66,823.27
 and a current account deficit of $4,000.00
IN Rs.267,293.10
. what is the service trade balance?

(b) If a country has deficit on its current account what are the countys balance o payments on the capital account? Assume that the country parities a flexible exchange rate system.

(c ) What are the three mayor components of the current account of the balance of payments?

 

Q.3(a) What are the major problems of economic exposure management? Discuss.

(b) for the coming years a Ceriman subsidiary of an American compare is expected to eat an after tax profit of DM 25 million. Its depreciation charge is stimuli at DM 5 million. The exchange rate is expected to rise form DM 2.00 per dollar to DM 1.5 per dollar for the next year.

(i) What is the postorbital gain or loss?

(ii) if the anticipates business activity were to says the same for the next three years, what would be the total economic gain or loss for chat period.

 

Q.4 (a) what is a Bankers Acceptance? Discuss its advantages as an export financing instrument.

(b) Discuss the role of the export import Bank of India.

( c) What are the advantages and disadvantages of joint ventures?

 

Q.5(a) Discuss the reasons for the recent grown of Foreign Direct Investment in the third world countries.

(b) The theory of precut life cycle is used as a motive for foreign trace as well as for foreign investment. Discuss this theory as a motive for both foreign trade and foreign investment.

 

Q.5 (a) How has technology effects the globalisation of financial markets?

(b) common on the objectives and working of the international Monetary fund (MF)?

 

Q.1(a) Compare and contrast. Comparative Advantage Theory with the comparative cost. Theory of international trade.

(b) Regional trade blocks are a challenge to free trade and WTO, Discuss.

 

Q.2(a) Explain with the help of an imaginary illustration, how capital budgeting decisions of anyMNC may be different form domestic firms.

(b) Explain with the help of an imaginary illustration, how capital budgeting decisions of any MNCmay be different form domestic firms.

 

Q.3 (a) Briefly explain different methods of exchange rate forecasting. Discuss their suitability in the Indian context.

(b) Spot and forward exchange rates are based on interest rate parity theorem. Discuss with suitable example.

 

Q.4 (a) Define foreign exchange risk exposure, distinguish between accounting and economic exposures.

(b) What are important elements of a currency risk sharing agreement? Discuss with suitable example.

 

Q.5(a) Spot US $/Rs. is $1.00
IN Rs.66.82
 = Rs. 46.3 months interest rates in India and US money markets are 9% and 5% respectively. What is the expected $/Rupee 3 month forward rate?

(b) Explain the salient features of the regulations over foreign exchange  in India.

 

Q.6 (a) What is systematic risk? Can it be reduced by international diversification?

(b) It is said Euro is here to stay comment. What implications would Euro have on Indian Corporate in the years to come?

 

Q.1 Explain the concept of balance of payment (BoP) and discuss the different account of BoP. Can a country run a current account deficit (Surplus) indefinitely? Give reasons

 

Q.2 Distinguish between pre-shipment and post-shipment financing. Discus the procedure followed by the commercial banks in this regard.

 

Q.3 Distinguish between Foreign Direct Investment (FDI) and Portfolio Investment and discuss strategies of  Portfolio investment.

 

Q.4 What do you understand by foreign exchange risk? What are the different external exposure management landaus which are used by importers and Exporters?

 

Q.5 (a) Briefly discuss the Centralized Cash Management system and its advantages.

(b) What do you understand by special drawing Rights (SDRs)? Discuss its significance in International Finance.

 

Q.6 (a) How are inflation rarest and foreign exchange rates into-related? Illustrate with the heap of an example

(b) Differentiate between Accounting Exposure and Economic Exposure. Discuss the principal translation methods of Foreign Subsidiaries Accounts.

 

Q.7 Write short notes on any four of the following

(a) Irrevocable confirmed letter of credit

(b) Syndicated euro currency loan market

( c) Transfer pricing

(d) International Development. Association (IDA)

(e) Foreign Currency Accounts of non resident Indians

 

 

Q.1 (a) In what respect have the changes in the global financial market made the task of a finance comparative advantage theory Comment..

(b) Comparative cost theory is an extension of comparative advantage theory Comment.

 

Q.2 (a) what is systematic risk? Can it be hedged by international diversification? Explain.

(b) Distinguish between euro bond issue and foreign bond issue.

 

Q.3 (a) centralised cash management is a double edged weapon for international working capital management. Working capital management Discuss with the help of examples.

(b) Distinguish between terms of payment and types of credit.

 

Q.4 (a) What are the important elements of a currency risk sharing agreement?

(b) Briefly discuss the principal elements of an exposure management information system suitable for a Mumbai based Indian exporter.

 

Q.5 (a) Spot and forward exchange rats are based o interest rate parity theorem. Discuss with suitable examples.

(b) Distinguish between accounting and economic exposure.

 

Q.6 (a) Sometimes it is said that the intimation financial system is an extension of domestic financial systems. Do you agree? Explain giving reasons.

(b) Describe the innovations in the international capita markets.

 

Q.7 Discuss in brief and four of the following:

(a) Strategies for portfolio investment

(b) Documentary credit and exchange control restrictions

( c)  Lending programmes fo EXIM bank

(d) Internal techniques for exposure management

(e) PPP theory

(d) IndiaBOP  Past Trends

 

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