This website uses cookies to ensure you have the best experience. Learn more

Finacial Management Essay

1625 words - 7 pages

Examination Paper of Financial Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Financial Management
Subject Code-B-103
Section A: Objective Type & Short Questions (30 marks)
 This section consists of multiple choice & Short Notes.
 Answer all the questions.
 Part One carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. The approach focused mainly on the financial problems of corporate enterprise.
a. Ignored non-corporate enterprise
b. Ignored working capital financing
c. External approach
d. Ignored routine problems
2. These are those shares, which can be redeemed or repaid to ...view middle of the document...

Industry life cycle
d. Agency costs
8. Some guidelines on shares & debentures issued by the government that are very important for the
constitution of the capital structure are:
a. Legal requirement
b. Purpose of finance
c. Period of finance
d. Requirement of investors
9. It is that portion of an investments total risk that results from change in the financial integrity of
the investment.
a. Bull- bear market risk
b. Default risk
c. International risk
d. Liquidity risk
10. _____________ measure the systematic risk of a security that cannot be avoided through
a. Beta
b. Gamma
c. Probability distribution
d. Alpha
Part Two:
1. What do you understand by wealth maximization?
2. Discuss the concept of factoring.
3. Define Annuity.
4. What is the Difference between NPV and IRR?
Examination Paper of Financial Management
IIBM Institute of Business Management 3
Section B: Case lets (40 marks)
 This section consists of Case lets.
 Answer all the questions.
 Each Case let carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Case1: Credit Decision - Agarwal Case
On August 30, 2006, Agarwal Cast Company Inc., applied for a $200,000 loan from the main office
of the National bank of New York. The application was forwarded to the bank's commercial loan
department. Gupta, the President and Principal Stockholder of Agarwal cast, applied for the loan in
person. He told the loan officer that he had been in business since February 1976, but that he had
considerable prior experience in flooring and carpets since he had worked as an individual contractor
for the past 20 year. Most of this time, he had worked in Frankfert and Michigan. He finally decided
to "work for himself" and he formed the company with Berry Hook, a former co-worker. This
information seemed to be consistent with the Dun and Bradstreet report obtained by the bank
According to Gupta, the purpose of the loan was to assist him in carrying his receivables until they
could be collected. He explained that the flooring business required him to spend considerable cash to
purchase materials but his customers would not pay until the job was done. Since he was relatively
new in the business, he did not feel that he could compete if he had to require a sizeable deposit or
payment in advance. Instead, he could quote for higher profits, if he were willing to wait until
completion of the job for payment. To show that his operation was sound, he included a list of
customers and projects with his loan application. He also included a list of current receivables.
Gupta told the loan officer that he had monitored his firm's financial status closely and that he had
financial reports prepared every six months. He said that the would send a copy to the bank. In
addition, he was willing to file a personal financial statement with the bank.
1. Prepare your...

Other Papers Like Finacial Management

Accounting Essay

1536 words - 7 pages ”. United airlines have failed to acknowledge the price of their assets at present time, thereby erosion of capital occurring and overestimation of profit. Adopting this model allows depreciable assets such as their major assets such as airplanes to be properly depreciated thereby acknowledging and increasing future depreciation expense and decreasing future profits. While adopting the revaluation ensures the management understands the actual status of

Nvq Health and Social Care 204

3513 words - 15 pages - Psychological, or emotional abuse, includes the use of threats, fears or bribes to negate a vulnerable adult’s choices, independent wishes and self esteem; Cause isolation or over-dependence (as might be signalled by impairment of development or performance) or prevent a vulnerable adult from using services, which would provide help Finacial abuse- Usually involves an individual’s funds or resources being inappropriately used by a third

Shared Services West

2428 words - 10 pages services in clinical research, data management, and IT support, among others. SSW will become a complete strategic partner by setting the groundwork for all financial and supply chain improvements, as well as other non-core activities such as redevelopment projects. This will allow the members of the service to focus on their core competencies and allow efficiencies to form through specialization and standardization. Over the long-term, SSW will

Project Managemnet


Hagl Creadit Analysis

4590 words - 19 pages 2011, HAGL s revenue reached VND$ 1.227 billion. In 2010, HAGL Group restructured its own organization through businesses in order to create an effective way of management. The Group includes Head Company owning and directly managing 5 companies in specific industries: Real Estate, Cultivation, Minerals, Hydropower, producing wood and Granite. Among the 6 industries, real estate which always brings the biggest revenues for HAGL is over 50% of

Financial Market

2856 words - 12 pages payment made by the borrower because the issuer charges servicing fees for doing the administrative work and prepayments. Mortgage = Dead pledge = Hypothèque . Chapitre 1 : Finance and firm Finacial Crisis : Dodd-Franck ACT : The Dodd–Frank Wall Street Reform and Consumer Protection Act (commonly referred to as Dodd-Frank) was signed into federal law by President Barack Obama on July 21, 2010 at the Ronald Reagan Building in

Audit Procedure of Opsonin Pharmaceutical

3767 words - 16 pages engineering personnel. The process through which the products are made in these machines are also validated, which guarantees that Current Good Manufacturing Practices (cGMP) prevail while goods are being produced. OPL has adopted the world Health Organization's (WHO) Guidelines on GMP in the Quality Management System. Manufacturing Capabilities Product Development Being a national company we have got some social commitments. Apart from the

Target Financial Statements

4140 words - 17 pages 2. What is the primary Standard Industrial Classification? 5331 – Retail Variety Stores 3. What is the corporation’s Central Index Key? 27419 THE PRIMARY FINACIAL STATEMENTS INCOME STATEMENT Growth in Revenues and Profits 1. Percentage of Growth= 71279-7330173301= -2.76% 2. Trend Analysis worksheet: (In Millions)   | 2010 | 2011 | 2012 | 2013 | 2014 | Revenue | $65,786 | $68,466 | $71,960 | $71,279 | $72,618 | Income

Business Strategy

5595 words - 23 pages . Changes in political environment- Changes in the political environment can affect strategic planning as business have to abide by the governing party in power, and adapt to the legislations set by the government this in turn will change and affect the strategic planning that may have ben set out with the previous government party of whom where in power. Lack of co-operation between operational level and higher management level- Another issue

Freedom And Responsibility

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Related Essays

Finacial Derivatives Essay

5963 words - 24 pages been associated with a few truly notable events, including the collapses of Barings By René M. Stulz Financial Derivatives Third Quarter 2005 21 Bank (the Queen of England’s primary bank) and Long-Term Capital Management (a hedge fund whose partners included an economist with a Nobel Prize awarded for breakthrough research in pricing derivatives). Derivatives even had a role in the fall of Enron. Indeed, just two years ago, Warren

Finacial Terms And Goals Essay

863 words - 4 pages Week 1 Financial Terms and Roles Dusty Hardt FIN370 January 14, 2014 Professor Kwende Week 1 Financial Terms and Roles 1) Finance Finance is considers the management of how income acquired and used. Whether dealing with corporate or personal issues, finance may consist of how individual or business acquires, invest, and manage money. Financial decisions are the role finance plays, which consist of money as the resource and how

Finacial Terms And Goals Essay

859 words - 4 pages Week 1 Financial Terms and Roles FIN370 January 14, 2014 Week 1 Financial Terms and Roles 1) Finance Finance is considers the management of how income acquired and used. Whether dealing with corporate or personal issues, finance may consist of how individual or business acquires, invest, and manage money. Financial decisions are the role finance plays, which consist of money as the resource and how and the source of how the

Complexities Of The Us Finacial System

1364 words - 6 pages Assignment One: Complexities of the U.S. Financial System Christine Capell Professor.Umair Warsi FIN 100 - Principles of Finance May 5, 2013 The US financial markets impact the economy, businesses, and individuals in a variety of ways, one of which is providing a way for businesses to raise capital by issuing securities. The capital markets enable new companies to raise funds to grow. Typically, banks would not lend in these situations