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    CH 9,10 Business Studies Financial Management & Markets

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    Aman Arya
    This document contains a summary of key points from Business studies chapters 9 and 10, including questions related to components of capital structure, working capital requirements, capital budgeting decisions, money market instruments, secondary markets, financial planning, and the role of the Securities and Exchange Board of India (SEBI). There are 14 multiple choice and descriptive questions testing understanding of concepts like capital structure, financial decisions, capital budgeting, money markets, and the functions of financial markets and regulatory authorities.

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    CH 9,10 Business Studies Financial Management & Markets

    Uploaded by

    Aman Arya
    91 views2 pages
    This document contains a summary of key points from Business studies chapters 9 and 10, including questions related to components of capital structure, working capital requirements, capital budgeting decisions, money market instruments, secondary markets, financial planning, and the role of the Securities and Exchange Board of India (SEBI). There are 14 multiple choice and descriptive questions testing understanding of concepts like capital structure, financial decisions, capital budgeting, money markets, and the functions of financial markets and regulatory authorities.

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    Value Based Questions to help students study and practice.

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    Ch 9,10 Business Studies Financial Management & Markets

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    This document contains a summary of key points from Business studies chapters 9 and 10, including questions related to components of capital structure, working capital requirements, capital budgeting decisions, money market instruments, secondary markets, financial planning, and the role of the Securities and Exchange Board of India (SEBI). There are 14 multiple choice and descriptive questions testing understanding of concepts like capital structure, financial decisions, capital budgeting, money markets, and the functions of financial markets and regulatory authorities.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    91 views2 pages

    CH 9,10 Business Studies Financial Management & Markets

    Uploaded by

    Aman Arya
    This document contains a summary of key points from Business studies chapters 9 and 10, including questions related to components of capital structure, working capital requirements, capital budgeting decisions, money market instruments, secondary markets, financial planning, and the role of the Securities and Exchange Board of India (SEBI). There are 14 multiple choice and descriptive questions testing understanding of concepts like capital structure, financial decisions, capital budgeting, money markets, and the functions of financial markets and regulatory authorities.

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    Business studies Ch-9,10

    Test
    MM:30
    Time :1hour

    1. Which component of capital structure determines the overall financial risk? (1)
    2. Identify the decision taken in financial management which affects the liquidity as well as the
    profitability of business.
    (1)
    3. Amit is running an Advertising agency and earning a lot by providing this
    service to big industries. State whether the working capital requirement of the
    firm will be less or more. Give reason in support of your answer (1)

    4. Why are Capital budgeting decisions considered as Irreversible decisions?(1)


    5. Certain instruments of money market is short term self-liquidating & used to
    finance credit sales name the instruments(1)

    6. How does Secondary market contributes to Economic Growth?(1)


    7. What are two benefits of allocative function of financial market?(1)
    8. A Method of floating new issues does not deal directly to public but operates through
    intermediaries like issuing Houses and brokers Name the Method. (1)
    9. Is Financial planning and financial management synonyms or substitute to each other ?(3)
    10. The directors of a company have decided to expand their business activities by modernising
    th Plant and Machinery at an estimated cost of Rs. 50 lakhs. Name the decision and Explain
    factors that you would consider while taking that decision.(3)
    11. Supriyas grandmother who was unwell, called her and gave her a gift packet.
    Supriya
    opened the packet and saw many crumpled share certificates inside. Her
    grandmother
    told her that they had been left behind by her late grandfather.
    As no trading is now done in physical form, Supriya wants to know the process by
    adopting which she is in a position to deal with these certificates.
    a) Identify and state the process.
    b) Also give two reasons to Supriya why dealing with shares in physical form had
    been
    stopped.( 1+2)
    12. Y Ltd. has invested Rs. 30 lakh and earns a profit before interest and taxes (EBIT)
    of Rs. 2 lakh. Tax rate is 30%.
    (a) Calculate earning per share (EPS) assuming that there is no debt.
    (b) What would be EPS, if total capital of the company includes Rs 10 lakh, 10%
    Debentures?
    (c) Will EPS increase or decrease in case (b)? Explain the reason.
    (4)

    13. Financial Planning is essentially the preparation of financial blueprint of the organisation
    future operations .The objective of Financial Planning is to ensure that enough funds are
    available at right time . The management of Croma Ltd. Decided to raise funds through public
    issue .Keeping in view the protective function executed by government agency ,the
    management decided not to indulge in unfair trade practices.
    a) State any one importance of Financial Planning
    b) What will happen if enough funds are not available at right time
    c) Name the government agency referred above .
    d) Identify the value which is being emphasisized in the Financial Planning.(4)
    14. Explain why SEBI is called watch dog of securities market ?

    (5)

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