B.C.A. (Semester III) (CGPA) Examination Oct/Nov-2017
FINANCIAL MANAGEMENT
Day Date: Saturday, 18-11-2017 Max. Marks: 70
Time: 2:30 PM to 05:00 PM
Instructions: Q.1 and Q.7 are compulsory.
Attempt any two questions from Q. 3 and 4.
Attempt any one question from Q. 5 and 6.
Q.1 Choose correct alternatives. 14
Excess of current assets over current liabilities is termed as
Fixed assets Total liabilities
Current assets Working capital
Short term assets which in the normal course of business are convertible into
cash within years.
2 1
4 3
Temporary working capital also known as
Variable working capital Gross working capital
Net working capital Fixed working capital
The assets held by business which can be converted in the form of cash,
without distributing the normal operations of business is
Tangible assets Intangible assets
Fixed assets Current assets
Current assets are also referred to as
Working capital Investments
Inventory Livestock
The only feasible purpose of financial management is
Wealth maximization Sales maximization
Profit maximization Assets maximization
Financial management process deals with
Investments Financial decisions
Both a and b None of these
Finance function comprises
Safe custody of funds only
Expenditure of funds only
Procurement of finance only
Procurement and effective use of funds
High degree of financial leverage
High debt proportion Lower debt proportion
Equal debt and equity No debt
Page 2 of 3
SLR-CD-10
10) Combined leverage is obtained from OL and FL by
Addition Subtraction
Multiplication Any of these
11) Financial planning deals with
Preparation of financial statement
Planning for a capital issue
Preparing budgets
None of these
12) Which of the following is studied with the help of financial leverage?
Marketing risks Interest rate risk
Foreign exchange risk Financing risk
13) The objective of wealth maximization takes into
Amount of returns expected
Timing of anticipated returns
Risk associated with uncertainty of returns
All of the above
14) Financial Management mainly focuses on
Efficient management of every business
Brand dimension
Arrangement of funds
All elements of acquiring and using means of financial resources for
financial activities.
Q.2 Attempt any two of the followings:
Explain Financial Plans. 07
Write Theories of Capitalization. 07
Write types of Leverage. 07
Q.3 Attempt any two of the followings:
Explain role of Finance Manager. 07
Distinguish between operating leverage and financial leverage 07
Explain steps and characteristics of financial planning. 07
Q.4 Attempt any two of the followings:
Explain importance of financial management. 07
Write types of working capital. 07
What is under capitalization? Explain remedies for under capitalization. 07
Q.5 What are the merits and demerits of profit maximization? 07
What is financial planning? Explain elements of financial plans. 07
Q.6 What is over capitalization? Explain causes and effects of over capitalization. 07
Distinguish between profit maximization and wealth maximization. 07