Punjab Technical University 2005 M.B.A Business Administration WORKING CAPITAL MANAGEMENT (N2) MB 516 - Question Paper

WORKING CAPITAL MANAGEMENT (N2) MB 516 3rd/4th Sem May 2k5

Max Marks 60

Note: part A is compulsory. Attempt any 4 ques. from part B.

part A Marks two every

1.
(a) Explain inventory management
(b) Define economic order volume.
(c) What do you mean by factoring?
(d) Define net working capital.
(e) Explain the meaning of inter-corporate deposits.
(f) Define future and choices.
(g) What do you mean by marketable securities?
(h) Define trade credit.
(i) Discuss the right debentures of working capital.
(j) What do you mean by operating cycle?

part B Marks 10 every

2. Define the working capital management. What methods do you suggest for estimating working capital needs? Illustrate your ans.

3. What do you mean by forecasting cash flows? elaborate the methods of financial forecasting?

4. Write down the following:
(a) Commercial papers and factoring
(b) Working capital and banking policy (Tandon and Chare Committee Report)

5. Write down the following:
(a) Operating cycle and cash cycle.
(b) Levels of working capital investment

6. The credit policy of a company is criticized because the bad debt losses have increased considerably and the collection period has also increased. explain under what condition this criticism may not be justified.

7. Write down the following:
(a) Hedging via interest rate future and choice on futures.
(b) Importance of working capital.

Earning:   Approval pending.