Important MBA (BU) Question
(FFM-2/FFF-2) Working Capital Management
III Sem, MBA (Regular, EX, ATKT) Finance/Financial Management
Unit I
Q.1 Explain the components of working capital marketing. (BU 2024)
Q.2 What is Working Capital Determinants? How does it help estimating working capital requirements? (BU 2024)
Q.3 A company has the following selected assets and (BU 2024)
|
liabilities: |
Rs. |
|
Cash |
45,000 |
|
Retained Earnings |
1,60,000 |
|
Equity share capital |
1,50,000 |
|
Debtors |
60,000 |
|
Inventory |
1,11,000 |
|
Debentures |
1,00,000 |
|
Provisions for Taxation |
57,000 |
|
Outstanding expenses. |
21,000 |
|
Land and Building |
3,00000 |
|
Goodwill |
50,000
|
|
Furniture |
25,000
|
|
Creditors |
39,000 |
You are required to determine:
(i) Gross Working Capital
(ii) Net Working Capital.
Q.4 Explain the principles of working Capital Management. (BU 2022)
Q.5 Discuss the objectives of working Capital Management. (BU 2022)
Q.6 Explain the operating cycle concept of working capital with examples.? (BU 2022)
Q.7 Explain briefly the essentials of a sound working Capital Management. (BU 2022)
Q.8 Write Short note on the following: (BU 2022)
(a) Sources of permanent working capital
(b) New trends in financing of working Capital by banks as per kannan Committee.
Q.9 What is working capital? Explain the difference between Gross and Net Working Capital. (BU 2020)
Q.10 Explain the sources of working capital for an organisation. (BU 2020)
Unit II
Q.1 Write the execution and formation of credit policy with an example. (BU 2024)
Q.2 Define 5C’s of accounts receivables management and explain the factors influencing size of receivables. (BU 2024)
Q.3 What do you mean by receivables? enumerate the various costs of receivables? (BU 2022)
Q.4 Discuss the various aspects or dimension of receivables Management? (BU 2022)
Q.5 Write short notes on any two: (BU 2020)
(i) Commercial Paper
(ii) Cash Budget
(iii) Cheque truncation
(iv) Cash Credit Arrangement
Q.6 How does an efficient cash management system helps in overcoming the liquidity crunch in an organisation. (BU 2020)
Q.7 What do you understand by ordering cost and carrying cost? (BU 2020)
Q.8 What are major decisions which are to be taken in respect of Receivables Management? (BU 2020)
Q.9 Explain how the credit policy is formulated and executed in Receivables Management? (BU 2020)
Unit III
Q.1 What is the Miller model of cash management? (BU 2024)
Q.2 What is optimum Cash balance & how can it be arrived at? (BU 2022)
Q.3 Write the names of various sources of cash and their applications? (BU 2022)
Q.4 Explain the different Cash Management Models. (BU 2020)
Q.5 What are the different motives of Holding Cash? Where the Surplus Funds can be invested? (BU 2020)
Unit IV
Q.1 Explain the purpose and benefits of Inventory Management System. (BU 2024)
Q.2 What is Inventory Management? Explain the techniques of inventory management. (BU 2024)
Q.3 A firm that sells electronic gadgets manages stock level for such products. They adjust their inventory based on market trends, new technological advancements and product life-cycle. The business has a reordering level of 3000 refrigerators and a reorder quantity of 1500 refrigerators. The maximum lead time is 30 days and minimum is 22 days. Maximum monthly sales are 200 refrigerators and minimum sales per month is 120 refrigerators. Maximum and minimum order time 30 and 20 days respectively. (BU 2024)
You are required to calculate:
(i) Minimum level
(ii) Maximum level
Q.4 Explain the Various approaches to Inventory Management. (BU 2022)
Q.5 Explain various tools & techniques used for Inventory Management. (BU 2022)
Q.6 Explain the following with respect of Inventory Management: (BU 2020)
(a) Economic Order Quantity (EOQ)
(b) ABC classification of Inventories.
Q.7 What is Inventory Management. Explain the different techniques of Inventory Management? (BU 2020)
Unit V
Q.1 What do you mean by Working capital Mix’? (BU 2024)
Q.2 What do you mean by Working Capital sources of finance? (BU 2024)
Q.3 What is the objective of working capital financing? Define working capital financing strategy. (BU 2024)
Q.4 What factors are determine the working capital requirement? Explain. (BU 2022)
Q.5 What is Working Capital Cycle? Explain. Also explain the factors which affect Working Capital Requirements in a manufacturing organisation. (BU 2020)
Q.6 Write a detailed note on New Trends in Financing of working capital by Banks. (BU 2020)
Extra Questions
Q.1 A manufacturing company places a semi-annual order of 24000 units at a price of Rs. 20 per Unit. Its carrying cost is 15% and the order cost is Rs. 12 per order. Calculate, what is the most economical order quantity? (BU 2024)
Q.2 Discuss the concept of working capital Distinguish between permanent and Variable Working Capital. (BU 2022)
— Best of Luck for Exam —
