FINANCIAL MANAGEMENT IMPORTANT QUESTIONS
UNIT-1
1.What is Finance Function/Financial Management ? Explain the nature, significance and scope of
finance function.
2. What do you understand by financial decision ? Discuss the major financial decision.
3.Write the advantages and disadvantages of profit maximization and wealth maximization.
4.Outline the factors behind Indian companies according greater importance to the goal of shareholders
wealth maximization,
5.Discuss the new role of finance in the contemporary scenario.
UNIT-2
1.What is Capital Budgeting ? What are the characteristics of capital budgeting decisions ?
2.Describe the investment decision making process and state its significance.
3.Explain the methods of appraisal in Capital Budgeting
4.Problems on Pay back period, ARR, NPV,PI.
5.Discuss the Capital budgeting decision under risk and uncertainty
UNIT-3
1.Discuss the Sources of long-term finance
2.What is meant by Capital structure ? What are the major determinants of capital structure ?
3.Discuss the Net Income and Net Operating Income Approaches relating to capital structure decisions.
4.What is Weighted average cost of capital ? Explain the steps that are used in its calculation
5.What is traditional,NI and NOI theories of capital structure
6.Problems on Cost of Capital
UNIT-4
1.What is working Capital ? Explain the need and importance or advantages and repercussions or
disadvantages of excess or paucity of working Capital.
2.Describe the factors determining working Capital of manufacturing company
3.Define dividends and bring out the importance and factors determining dividend policy in a company
4.Discuss the relevance Theories of dividend
5.Problems on Working Capital, Inventory Management ,Dividend Policies decisions.
UNIT-5
1.Explain the rationale of mergers ,acquisition and takeovers.
2.Briefly examine the different approaches to corporate valuation in affecting the corporate mergers
and acquisitions.
3.What do you Understand by corporate value based management systems ? Discuss its relevance and
need.
4.Explain the need and Significance of corporate governance.
5.What are the Principles of good corporate governance ?
