Vardhman Mahaveer Open University, question paper december 2010 Working Capital Management

Vardhman Mahaveer Open University, question paper december 2010
Papers (A) (December) 2010
(410)
A
MS-41
M.B.A. EXAMINATION, December, 2010
WORKING CAPITAL MANAGEMENT
Paper-MS-41
(Working Capital Management)
Time allowed : Three hours
Maximum marks : 70
Attempt any five questions. All
questions carry equal marks.
1. "Working capital to a business is what blood circulation is
for human body." Explain. 14
2. What is Cash Flow Statement ? How does it differ from
the Fund Flow Statement ? What are the uses of Cash
Flow Statement ? Explain. 4+5+5
3. What are financial ratios ? Explain and illustrate the ratios
used for testing the short-term and long-term financial
position of the firm. 4+10
4. Discuss the factors affecting the investment in a firm's
receivables. How will you control the investment in
receivables ? Explain. 7+7
5. Define Inventory Control. Explain EOQ and ABC analysis
techniques of inventory control. 4+5+5
6. Discuss the management problems involved in the planning
and control of cash. Explain the importance of cash budget
as main tool of cash planning. 7+7
7. What is factoring ? Discuss the types and benefits of
factoring. 5+5+4
8. Explain the rationale of the Chore and Muthaiya
Committee's recommendations. 7+7
9. What is the assessment and appraisal procedure of bank
to finance short-term requirement of a manufacturing
concern ? Explain. 7+7
10. What are the determinants of working capital ? Discuss
the approaches of working capital finance. 7+7

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