Ganesh

CSI Institute of PG Studies MBA-IV Semester – II Internal Examination SUB: FINANCIAL MANAGEMENT 15 MARKS Student Name:Roll No: Multiple Choice Questions: ½*10 = 5 1.What are the market forces which reduces agency problem?[ ] (a) large group of shareholders (b)Threat of takeover (c)Both (a) and (c)(d) None 2.In modern stage of financial management ,change took place in field of [ ] (a)Capital budgeting (b) Dividend policy (c) Both (a) and (b) (d) None 3.The decision which involves risk-return-trade-off are[ ] (a)Dividenddecisions (b)Workingcapital decisions (c)Capitalstructure decisions (d)none 4. In wealth maximization objectives,all financial decisions must be based on [ ] (a) Cost-banefit analysis (b) Ratio analysis (c) Debt-equity ratio (d) None 5.The scope of finance function includes[ ] (a)Deciding capitalstructure (b)Estimating financialrequirements (c)Selecting a source of finance (d) All the above 6.In NPV method ,the project must be accepted when.[ ] (a) NPV =0 (b) NPV > 0 (c) NPV < 0 (d) NPV<=0 7. A new machinery in place of old equipment due to technological changes is termed as[ ] (a) Balancing (b) Modernization (c) Replacement (d) Expansion 8. Which of the following is not a non-discounting method[ ] (a) Playback period (b) Accounting rate of return (c) Internal rate of return (d) None 9.The characterstic features of capital budgeting are[ ] (a) Funding (b) Complexity (c) Irreversibility (d) All the above 10.If rate of return is more than cost of capital then project is[ ] (a) Accepted (b) Rejected (c) Postponed (d) None Fill in the Blanks ½ *10=5 1.----------------------------------------is a primary function among all other business functions. 2. Net present worth maximization is another name of ------------------------------maximization. 3.In traditional phase of financial management ,the technique and methods used were--------- 4. The relationship that exists in an organization between shareholders and management is known as----------------------------- 5. The net present value of a transaction is calculated as, NPV=--------------------- 6. The method of depreciation mostly used in capital budgeting is--------------------------------- 7.The modern methods of capital budgeting are based on---------------------------------- 8. -----------------method reduces the shortcomings of the risk adjusted discount rate approach. 9.A project whose acceptance does not prevent or require the acceptance of one or more alternative projects is referred to as----------------- 10.The expenditure which is incurred at a point of time but benefits are yield in future after one year then it is called-------------------------- Short notes 1*5=5 ,[object Object],2.Discounted cash flow technique? 3.Time Value of Money? 4.Risk Return Trade-off? 5.Profit Maximization?

Ganesh

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Ganesh