University of Allahabad 2010 B.Com , (Part-II) , Business Finance - Question Paper

B.Com. (Part-II) Examination, 2010
(New course)
Business Finance
Paper: Tenth
(Group E)
Time Allowed: 3 Hours] [Maximum Marks: 100

Note: This paper is divided into 2 parts-'A' and 'B'. ans all ques. from part-
'A' and any 3 ques. from part 'B'. Use of calculator is not allowed.

Part-'A'
Note: Attempt all 8 ques.. ans in not more than 100 words. every ques. carries five marks.
1. define the nature of financial decision.
2. Critically examine 'profit maximization' as the objective of business.
3. discuss discounting technique for adjustment of time value of money.
4. discuss cost concept as relevant for constructing Balance Sheet.
5. Distinguish funds flow statement and income statement.
6. elaborate the characteristics of 'under-capitalization'?
7. compute Break-Even point in units and rupees and (ii)Profit-Volume Ratio from the subsequent information:
Rs.
Fixed Cost per year 10,500/=
Variable Cost per unit 3.50
Selling Price per unit 5.00
8. What is financial liverage? How is it measured?

Part-'B'
Note: Attempt any 3 ques.. The maximum word limit to ans every ques.
is 600 words. every ques. carries 20 marks.
9. What is the importance of Ratio Analysis? define the main liquidity ratios. How are they computed?
10. Discus any 1 method of capital budgeting with the help of suitable example.
11. discuss the causes and effect of over-capitalization. What steps should be taken for its correction?
12. discuss the Walter Model for dividend decision. elaborate the shortcomings of this model?
13. Critically examine the assumptions and techniques of Break-Even Point Analysis.

Earning:   Approval pending.