Description

BAOU MBA02C203 (Assignment-2) Solved Assignment 2024

Dr. Babasaheb Ambedkar Open University
Assignment-2
MBA Semester-2
Subject Code: MBA02C203
Subject: Financial Management

Total Marks -15
Passing Marks – 06 marks
Q.1: Answer the following question in 800 words. (Any one) (4*1 = 4 Marks)
1) Explain the scope of financial management.
OR
1) Explain the Factors Affecting the Capital Structure (Determinants).
Q.2: Answer the following questions in 400 words. (Any two) (2*2 = 04 Marks)
1) Describe risk analysis in capital budgeting?
2) Explain the determinants of working capital management.
3) Describe carrying costs.
Q.3: Write a short note. (Any two) (2*2 = 04 Marks)
1) Explain F.S.N. Analysis.
2) Explain the elements of receivables management/decision areas.
3) Describe Residual dividend policy.
4) Explain Criticism of MM approach.
Q-4: Define the following: (0.5*6= 03 Marks)
1) Walter model assumes that for financing future investments, a firm will rely only on
(a) Debentures
(b) Term loans
(c) Retained earnings
(d) External equity
2) Management of all matters related to an organisation’s finance is called:
a) Cash inflows and outflows
b) Allocation of Resources
c) Financial Management
d) Finance
3) For a depositor, when the frequency of compounding is increased
(a) Additional gains increase
(b) Additional gains dwindle
(c) Additional gains are unaffected
(d) There is no additional gain
4) _______________measures the operating cost of the business.
(a) Operating Leverage
(b)Financial Leverage
(c ) Both
(d) None
5) Which of the following criterion is often preferred
(a) Net present value
(b) Profitability index
(c) Internal rate of return
(d) All of the above
6) Idle cash leads to increase in ___________________-
a. Profitability
b. Liquidity
c. Both
d. None of the above