Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A Financial and Management Accounting - university paper

Financial Management

1. Which of the subsequent is the not a function of financial management in the modern sense of the term
a) Decision related to funds requirements
b) Decision on legal ,ethical , & financial regulatory matters
c) Investment & financing decisions
d) Divided policy decisions

2. Financial management is broadly connected with
a) Raising of financial recourse
b) All aspects of acquisition and efficient utilization of funds by a business firm
c) Decision of maximizing of profit
d) Maintaining of financial data

3. While fixed capital is meant for acquisition of asset yto be used for long period ,Working capital is used for
a) acquisition is tangible assets
b) Meeting R&D expenses & payments to workers
c) acquisition of intangible assets
d) acquisition of current assets and to meet day today operational expenses of a term
4. The Time value of money prevails as
a) Value of the time cannot be compared with value of money
b) Time and money both are available
c) Value of a rupees received today is more than a Rupee when received after a period
d) Money prompts purchase of goods and necessities

5. current value of redeemable debentures can be ascertained by
a) Dividing annual interest by capitalization rate
b) Adding current value of interest payable with current value of principle amount payable 1 debentures
c) Referring to stock index
d) Adding face value debentures with interest payable for remaining period of maturity

6.The capital structures decision is irrelevant and there is nothing like capital structure This statement is made under
a) Modigliani – Miller (MM) approach b) B) Traditional approach
c) Net income (NI) approach d) Net operating income

7. According to traditional approach the avg. cost of capital
a) Rises constantly at an increase in leverage
b) reduce at an increasing rate with increase in leverage
c) Decease up to a certain point remain unchanged for moderate increase in leverage and rises beyond a certain point
d) remain constant up to a degree of leverage and rises sharply there after with every increases in leverage

8. Which off the subsequent methods do not consider return after pay of period
a) Payback period method b) Internal rate of return method
c) avg. rate of return method d) Net current value method

9. Capital budgeting process involves
a) Project exestuation & monitoring b) Project screening & selection
c) Project generation & evolution d) All

10. Cost of a capital of a firm is

Earning:   Approval pending.