Punjab Technical University 2007-4th Sem M.B.A (-3/)WORKING CAPITAL MANAGEMENT ( - 516) - Question Paper

MBA (Semester - third & 4th)

WORKING CAPITAL MANAGEMENT (MBA - 516)

Time : 03 Hours Maximum Marks :75
Instruction to Candidates:
1) part - A is compulsory.
2) Attempt any 9 ques. from part - B.

part - A
Q1) (15 x two = 30)

a) describe Permanent asset investment.
b) define operating cycle.
c) What is the objective of Financial Manager in Cash Management?
d) What is meant by balance averaging?
e) What is meant by Control in Concentration System?
f) describe collection float.
g) describe zero balance account.
h) describe Accounts Receivable.
i) Identify a few cost associated with Accounts Receivable.
j) define Interest rate.
k) elaborate control devices?
l) What is the general objective of Accounts Receivable?
m) Why do companies offer cash discount?
n) define Cash Forecasting.
o) discuss the term strategies.

part - B
(9 x five = 45)
Q2) discuss the meaning of the credit terms, 2/10, 1/30, 1/45. N/60.
Q3) elaborate the 5 traditional ìCsî the financial manager might consider in
evaluating credit worthiness of potential customer?
Q4) Why should a financial manager focus on cash flow rather than earning?
Q5) In what sense do cash forecasts function as a control device?
Q6) What is the objective of the Financial Manager in Cash Management?
Q7) explain in detail the cost of holding inventories.
Q8) discuss in detail cash concentration strategies.
Q9) How commercial paper differ from factoring?
Q10) How to determine optimum level of working capital?
Q11) discuss recommendations of Tandon Committee for banking policy.
Q12) explain in detail levels of working Capital Investment.
Q13) discuss hedging via interest rate.

Earning:   Approval pending.