Chanderprabhu Jain College of Higher Studies

&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

MODEL QUESTION PAPER

Class : BBA IV(A+B)

Paper Code : BBA 204

Subject : Financial Management

Faculty Name :Ms.Tanu Gupta/ Ms.Isha Goyal

SHORT QUESTIONS:
Write Short notes on:

1) Capital Rationing
2) Bridge Finance
3) P/E Ratio
4) Economic Order Quantity
5) Venture Capital
6) Credit rating
7) Mutual Funds
8) Deep discounting Bonds
9) Commercial Papers
10) MM approach of Capital Structure
11) Why do companies pay dividend.
12) Time Value of Money
13) Define cost of capital.
14) Define Net Working Capital.
15) Formula 72
16) Irrelevance concept of dividend.
17) Inventory Management
18) Accounts receivable and payable management
19) Walters model conditions
20) Define operating working capital
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

21) Arbitage Process by MM

22) Objectives of dividend policy
23) Commercial paper
24) Global depositary receipts
25) Loan Syndication
26) Credit Rating
27) Types of leverage
28) Project Financing
29) Profitability Index
30) Venture Capital

LONG QUESTIONS:
Question 1:- What is Capital Budgeting? Discuss its process. Why this function is considered as
one of the most important function of Financial Management?

Question 2:- Explain the meaning of Financial Management? What are its objectives? Explain
its functions.

Question 3:- Define the Capital Structure? What do you mean by an appropriate Capital
Structure? Explain the theories of capital structure in brief.

Question 4:-What is the importance of working capital management for a manufacturing firm?
Describe the factors that affect working capital requirement of firm.

Question 5: What is the justification for the goal of maximizing wealth of the shareholders?

Question 6: Discuss the salient features of traditional and modern approaches to Financial
Management?

Question 7: What is Risk? Explain the various techniques used for incorporating risk factor in
capital budgeting decisions.

Question 8: What do you meant by Cost of Capital? What are the components of cost of capital?
How is the cost of equity, preference and debt determined?
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

Question 9: What is the management of working capital? Explain how to estimate the amount of
working capital and sources for which these funds have to be used.

Question 10: What is leverage? Differentiate between operating leverage and financial leverage?

Question 11: Write the difference between Management accounting and Financial Management.

Question 12: Write the classification of sources of finance?

Question 13: What is cost of equity capital? Write the classification and methods of calculating
the cost of equity capital?

Question 14: Write the difference between equity shares, preference shares and debentures.

Question 15: What are the difference between retained earnings and dividend decisions? Write
the determinants of Dividend policy.

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