M.COM. (Semester III) Examination, 2017
BUSINESS FINANCE
Day Date: Tuesday, 25-04-2017 Max. Marks: 50
Time: 10.30 AM to 12.30 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 10
A company can accept public deposits for a maximum period of
One year Two years
Three years Five years
The shares of over capitalized company are sold at
Premium Par
Discount Profit
not create any charge on the assets of the
company.
Debentures Bonds
Equity shares Bank loans
combine features of open ended and closed
ended funds.
Interval Balanced
Loan Growth
Basic objective of business finance are
Efficient management Arrangement of funds
Procurement and use of
funds
None of the above
Joint venture is the importance form of
Direct investment Indirect investment
Part folio investment Official investment G
In theory, a firm is capitalized on the basis of its
expected earnings.
Cost Earning
Expenditure None of these
If the necessary adjustments are possible in the financial plan, it

Simplicity Intensity
Flexibility Liquidity
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SLR-Q 41
India has liberalized its policies on foreign investment and
collaborations since new economic policy announced in
1971 1981
1991 1951
10) The utilization of retained earnings for meeting financial needs of
a business is known as
External financing Global financing
Corporate financing Self financing
Q.2 Write short notes. 10
Cost theory of capitalization.
Forms of foreign collaborations.
Q.3 Write short answers. 10
What are the steps in financial planning?
Discuss the importance of business finance.
Q.4 Answer any one of the following questions. 10
What is ploughing back of profits? State the advantages and
disadvantages of self financing.
What is over capitalization? State the reasons for over
capitalization.
Q.5 Answer any one of the following questions. 10
Explain the importance of foreign capital in Indian economy.
Explain the different sources of long term financing.