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Incorporation of Company and Matters Incidental Thereto Question 1.XYZ a One Person Company (OPC) was incorporated during the year 2020-21 with an authorized capital of ₹ 45 lakh (4.5 lakh shares of ₹ 10 each), the capital was fully subscribed and paid up. Turnover of the company during 2020-21 & 2021-22 was ₹ 2 crores […]
Preliminary Question 1.X Industries Ltd. is a company in which 25% of shareholding is held by Central Government; 10% shareholding is held by Government of Maharashtra and 15% shareholding is held by Central Government and Government of Rajasthan jointly. Examine whether, X Industries Ltd. Is a government company.Answer:Government Company: As per Sec. 2(45) of Companies […]
Introduction to Strategic Management Question 1.State with reasons which of the following statement is correctíincorrect:Strategy is a substitute for Sound, Alert, and Responsible management. (Nov 2008, 2 marks)Answer:Incorrect: Strategy is no substitute for sound, alert and responsible management. Strategy can never be perfect, flawless, and optimal. It is in the very nature of strategy that […]
Financing of Working Capital Question 1.Answer the following:Differentiate between Factoring and Bilis discounting. (Nov 2009, 2 marks), ( May 2015,4 marks) ORDistinguish between factoring and bill-discounting. (May 2013, 4 marks)ORWhat is ‘Bill discounting’? How does it differ from ‘Factoring’? Explain. (Nov 2017, 4 marks)Answer:Difference between Factoring and Bill Discounting Basis of Difference Factoring Bill Discounting […]
Management of Receivables and Payables Question 1.The credit manager of XYZ Ltd. is reappraising the company’s credit policy. The company sells its products on terms of net 30. Cost of goods sold is 85% of sales and fixed costs are further 5% of sales. XYZ classifies its customers on a scale of 1 to 4. […]
Management of Inventory Question 1.A Ltd. uses inventory turnover as one performance measure to evaluate its production manager. Currently, its inventory turnover (based on cost of goods sold ÷ inventory) is 10 times per annum, as compared with industry average of 4. Average sales are ₹ 4,50,000 p.a. variable costs of inventory have consistently remained […]
Treasury & Cash Management Question 1.Enumerate the activities which are covered by Treasury Management. (Nov 2002, 3 marks)ORAnswer the following:Explain briefly the functions of Treasury Department. (May 2008, 3 marks)ORAnswer the following:Write a short note on functions of Treasury Department. (May 2009, 2 marks)ORAnswer the following:Explain briefly the functions of Treasury Department. (Nov 2016, 4 […]
Introduction to Working Capital Management Question 1.An engineering company is considering its working capital investment for the year 2003-04. The estimated Property Plant and Equipment and current liabilities for the next year are ₹ 6.63 crore and ₹ 5.967 crore respectively. The sales, and earnings before interest and taxes (EBIT) depend on investment in its […]
Dividend Decisions Question 1.What are the determinants of Dividend Policy?Answer:Determinants of Dividend Policy: Many factors determine the dividend policy of a company. The factors determining the dividend policy are as follows:(i) Dividend Payout RatioA certain share of earnings to be distributed as dividends has to be worked out. This involves the decision to payout or […]
Financing Decisions Leverages Question 1.What do you understand by Business Risk and Financial Risk? (Nov 2009, 2 marks)Answer:Business RiskIt refers to the risk associated with the firm’s operations. It is uncertainty about the future operating income. That is, how well can the operating income be predicted? It can be measured by standard deviation of basic […]