Financial Management Important Questions for Upcoming Exam [For Both NEP 2023 Syllabus and CBCS Pattern]

Financial Management Important Questions for Upcoming Exam
Dibrugarh University B.Com[For BothNEP 2023 Syllabus and CBCS Pattern]

Important Note: Since Syllabus of BCOM 1st SEM (NEP 2023) and BCOM 5th SEM CBCS Pattern are same, So Important Questions for Both the exams will same. 

Unit – I: Introduction to Financial Management
Financial Management Important Questions CBCS Pattern (Dynamic Tutorials)

Q. What it financial management/Business finance? What are its features? Explain its scope.  2014, 2018

Q. Explain the objectives of financial management in modern era.  2012, 2013, 2014, 2015, 2016, 2021

Q. Explain the importance of financial management in modern era.  2012, 2013, 2014, 2015, 2016

Q. Explain various objectives offinancial management. (Profit maximisation and wealth maximisation)              2012, 2013, 2014, 2015, 2017, 2021

Or

Q. “Maximization of Profit is regardedas the proper objectives of investments but it is not as exclusive as maximizing shareholder’s wealth” – Explain.   2016,2019, 2022

Q. Compare and Contrast between profit maximisation and wealth maximisation objectives of financial management.

Q. “Finance has changed from a field that was concerned primarily with the procurement of funds to one that includes the management of assets, the allocation of capital and valuation of firm”. –Give your views on this statement.

Unit – II: Management of Working Capital
Financial Management Important Questions CBCS Pattern (Dynamic Tutorials)

Q. Explain the concept of working capital. Why it is needed? What are the factors affecting working capitalrequirement of a firm.                             2015,2016, 2017SN, 2018, 2022

Q. What are the advantages of adequate working capital? What shall be the repercussions if a firm has (i) redundant working capital and (ii) inadequate working capital?      2017

Q. Explain various methods for determination of working capital.

Q. Explain various sources of long term and short term working capital of a firm.             2012, 2019, 2021

Q. Practical Questions: Estimation of Working Capital Requirement, Preparation of Balance Sheet, and Calculation of Net operating cycle. (Every year one question is asked)

Also Read: Financial Management MCQs 2012 to 2023

FINANCIAL MANAGEMENT IMPORTANT QUESTIONS VIDEO WITH PRACTICALPROBLMES AVAILABLE

Q. Short notes:

Ø  Working Capital                       2014

Ø  Financial forecasting and planning                  2016

Ø  Working capital management and its significance                   2016, 2018

Ø  Operating Cycle and Net operating Cycle  2022

Ø  Trade Credit

Ø  Capital Gearing         2017, 2022

Unit – III: Investment Decisions
Financial Management Important Questions CBCS Pattern (Dynamic Tutorials)

Q. What do you mean by Investment Decisions? What are its characteristics? Explain the significance of investment decisions. What are its limitations?   2013, 2019

Q. Discuss various techniques of investment decisions.             2012, 2021

Q. What do you mean by Cost of Capital? How it is determined? Explain its significance. What are the problems associated with determination of cost of Capital?                           2016, 2019, 2022

Q. What is meant by cost of capital? What are the components of the cost of capital? How is the cost of new equity issues determined?     2017, 2018SN, 2021

Q. What do you mean by the term Leverage? What are its various types? Explain their features.             2012

Q. What is ‘financial leverage’? How does it magnify the revenue available for equity shareholders? Discuss the relationships between financial leverage and debt financing. 

Q. What do you mean by ‘financial leverage’? Distinguish between financial leverage and operating leverage. Do you think that they are related to capital structure?

Q. What do you mean by Capital structure and Optimal Capital Structure? How it is determined? Explain its significance.             2017

Q. Define capital structure. Using imaginary figures show how to determine the value of firm under (1) the net income (NI) approach and (2) the net operating income (NOI) approach.             

Q. Write short note on:

Ø  Various Capital Budgeting Techniques: 2013, 2014, 2015, 2016, 2017, 2018

Ø  Weighted average cost of capital   2022     

Ø  Operating Leverage and Trading on Equity/Financial Leverage            2012, 2013, 2014

Ø  Optimal Capital Structure                                    2017

Ø  Capital Budgeting Decisions                               2016

Q. Practical: Calculation of Leverage, Calculation of Payback period method, NPV, Rate of Return, Capital Structure, Cost of Equity and Debt Capital.

Unit – IV: Dividend Decisions
Financial Management Important Questions CBCS Pattern (Dynamic Tutorials)

Q. What is Dividend and Dividend Policy? What are various types of dividend and dividend policies?   2014SN, 2015, 2016, 2017

Q. What are the factors affecting dividend decision of a firm?                   2014

Q. Explain the MM theory of dividend distribution. Mention its assumptions. What are the major criticisms to this theory of irrelevance?                 2012, 2013, 2015, 2016, 2018, 2021

Q. Explain the Walter’s theory of dividend distribution. Mention its assumption. What are the shortcomings tothis theory?                                2017, 2019, 2022

Q. What do you mean by ploughing backof profits? Mention the purpose of creating it. What are the factors thatinfluence the ploughing back of profit?                                2012, 2013, 2014, 2019, 2021

Q. “Retained earning does not involve any cost”. Do you agree? Discuss the advantages and limitations of retained earnings/ploughing back of profit.  2019, 2022

Q. Write Short notes on:

Ø  Stable Dividend policy                          2012, 2017

Ø  Optimal Payout Ratio                            2013, 2017, 2022

Ø  Dividend Payout Ratio                          2014

SOLUTIONS: LINK OF ALL PRACTICAL PROBLEMS VIDEOS

Dibrugarh University 5th Sem (Old Course)

Unit 1: Introduction to Financial Management

Q. Explain the objectives and importance of financial management in modern era.  2012, 2013, 2014, 2015, 2016

Q. What it financial management/Business finance? What are its features? Explain its scope.  2014, 2018

Q. Discuss the role and responsibilities of modern finance manager in an establishment. Discuss some of the crucial financial problems that a decision maker faces today.   2013, 2014, 2016, 2017, 2018

Q. Explain various objectives of financial management. (Profit maximisation and wealth maximisation)               2012, 2013, 2014, 2015, 2017

Or

Q. “Maximization of Profit is regarded as the proper objectives of investments but it is not as exclusive as maximizing shareholder’s wealth” – Explain.                             2016

Q. Compare and Contrast between profit maximisation and wealth maximisation objectives of financial management.

Q. “Finance has changed from a field that was concerned primarily with the procurement of funds to one that includes the management of assets, the allocation of capital and valuation of firm”. – Give your views on this statement.

Unit 2: Concept of Working Capital

Q. Explain the concept of working capital. Why it is needed? What are the factors affecting working capital requirement of a firm.                             2015, 2016, 2017SN, 2018

Q. What are the advantages of adequate working capital? What shall be the repercussions if a firm has (i) redundant working capital and (ii) inadequate working capital?      2017

Q. Explain various methods for determination of working capital.

Q. Explain various sources of long term and short term working capital of a firm.     2012

Q. Practical Questions: Estimation of Working Capital Requirement, Preparation of Balance Sheet, and Calculation of Net operating cycle. (Every year one question is asked)

Q. Short notes:

Ø  Working Capital                       2014

Ø  Financial forecasting and planning                  2016

Ø  Working capital management and its significance                   2016, 2018

Ø  Net operating Cycle

Ø  Trade Credit

Ø  Capital Gearing                                        2017

Unit 3: Capital Budgeting, Leverage, Cost of Capital and Capital Structure

Q. What do you mean by Investment Decisions? What are its characteristics? Discuss various techniques of investment decisions.                           2012

Q. Explain the significance of investment decisions.                      2013

Q. What do you mean by Cost of Capital? How it is determined? Explain its significance. What are the problems associated with determination of cost of Capital?                           2016

Q. What is meant by cost of capital? What are the components of the cost of capital? How is the cost of new equity issues determined?     2017, 2018SN

Q. What do you mean by the term Leverage? What are its various types? Explain their features.             2012

Q. What is ‘financial leverage’? How does it magnify the revenue available for equity shareholders? Discuss the relationships between financial leverage and debt financing. 

Q. What do you mean by ‘financial leverage’? Distinguish between financial leverage and operating leverage. Do you think that they are related to capital structure?

Q. What do you mean by Capital structure and Optimal Capital Structure? How it is determined? Explain its significance.                                2017

Q. Define capital structure. Using imaginary figures show how to determine the value of firm under (1) the net income (NI) approach and (2) the net operating income (NOI) approach.             

Q. Write short note on:

Ø  Various Capital Budgeting Techniques: 2013, 2014, 2015, 2016, 2017, 2018

Ø  Weighted average cost of capital

Ø  Trading on Equity/Financial Leverage            2012, 2013, 2014

Ø  Optimal Capital Structure                                    2017

Ø  Capital Budgeting Decisions                               2016

Q. Practical: Calculation of Leverage, Calculation of Payback period method, NPV, Rate of Return, Capital Structure, Cost of Equity and Debt Capital.

Unit 4: Dividend Policy

Q. What is Dividend and Dividend Policy? What are various types of dividend and dividend policies?   2014SN, 2015, 2016, 2017

Q. What are the factors affecting dividend decision of a firm?          2014

Q. Explain the MM theory of dividend distribution. Mention its assumptions. What are the major criticisms to this theory of irrelevance?                 2012, 2013, 2015, 2016, 2018

Q. Explain the Walter’s theory of dividend distribution. Mention its assumption. What are the shortcomings to this theory?                                2017

Q. What do you mean by ploughing back of profits? Mention the purpose of creating it. What are the factors that influence the ploughing back of profit?                                2012, 2013, 2014

Q. “Retained earning does not involve any cost”. Do you agree? Discuss the advantages and limitations of retained earnings/ploughing back of profit.

Q. Write Short notes on:

Ø  Stable Dividend policy                          2012, 2017

Ø  Optimal Payout Ratio                            2013, 2017

Ø  Dividend Payout Ratio                          2014