2.1 MANAGEMENT OF FINANCIAL SERVICES
1. Risks have always been present in the banking system but their management
has gained prominence over the recent years'. Discuss the various risks which
are being faced by banks and how are they being contained by them?
2. Insurance Regulatory and Development Authority (IRDA) has its prime objective
to protect the interest of policy holders. What regulations have been evolved by it
to attain this objective?
3. "The Stock Exchange is an essential pillar of the private sector corporate
economy". Discuss this statement bringing out the role and functions played by
these exchanges in the process of capital formation and in mobilising resources
for the corporate sector.
4. "Issue managers play a vital role in fund raising through public issue of
securities". Discuss this statement and explain the different pre-issue activities
undertaken by an issue manager.
2.2 INTERNATIONAL FINANCE
1. Discuss about the recent trends in foreign private capital flows in India and
evaluate the impact of this foreign investment inflow into Indian economy in
present and future.
2. Illustrate with suitable examples about the organizational characteristics of the
multinational, global, international and transnational corporation in foreign
trade.
3. Give a detailed study about the impact causes of the balance of payments
disequilibrium and the measures you recommend to correct the disequilibrium.
4. Write a detailed note on India’s foreign trade performance in the recent economic
policy regime, and the changes of government policy on foreign trade will have
some impact on export and import performance in India. Justify your answer
with examples.
2.3 FINANCIAL ANALYSIS AND INDUSTRIAL FINANCING
1) “Analysing ability of business operations in generating funds flow is one of the
major objectives of fund flow statement”. Do you agree or disagree? Justify your
views how fund flow statement helps the management with appropriate
examples.
2) You are given the following information pertaining to a company.
Current ratio .5
Liquid ratio 1.5
Networking capitalRs. 30000
Stock turnover ratio 6 times
(cost of sales/closing stock)
Gross profit ratio 20%
Fixed asset turnover ratio(on cost of sales) 2 times
Average debt collection period 2 months
3
Fixed assets/shareholder’s net worth 0.80
Reserve and surplus/capital 0.50
Draw up the balance sheet of the company
3) a) lower interest rate may reduce the size of the banks
b) banks are at a regulatory disadvantage when competing with other financial
institutions for funds.
Interpret the above statements.
4) ICICI was formed in 1955 to provide medium and long term finance to Indian
businesses. But over the period, it has diversified tremendously. Has this
development helped to achieve its objective. Justify.
2.4 MANAGEMENT OF FUND AND ASSETS
1. As a management accountant you are asked to introduce a system of capital
expenditure control for your organisation. Explain in detail the important
feature you want to incorporate in system you propose to introduce, with a
suitable example of a project involving capital expenditure.
2. “Efficient inventory management is reflected in the liquidity and profitability of
the firm”. Do you agree? Justify your statement.
3. “Lease financing has proved its unique adaptability to various financial
problems”. Explain with suitable examples.
4. If sales forecast is subject to error, then there is no purpose of budgetary. Do
you agree (or)disagree. Give your views with appropriate examples.
2.5 INVESTMENT, SECURITY AND PORTFOLIO MANAGEMENT
1. (a) When selecting bonds for a portfolio, what factors should be considered
before choosing specific maturities and quality ratings?
(b) Comment on the following statement: “In evaluating the suitability of a bond
for a portfolio, I don’t care about its maturity. Duration is all that matters.”
2. Build a portfolio oriented towards capital appreciation using round lots only,
costing about Rs.2,50,000 with a target PE ratio of 20, and a target beta of 1.10.
Assign equal weighting to the beta and PE constraints.
3. With 3 suitable examples show how dollar cost averaging makes a profit even in
a flat market, where a security is not trending up or down but fluctuates around
a mean of 0.
4. Select any company of your choice included in Dow Jones Industrial Average,
and calculate its dividend growth rate over the last fifteen years.
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2.6 STRATEGIC MANAGEMENT
1. Trace the path taken from organizational resources and organizational behaviour
to the development of strategic advantage.
2. In what way can timing and competitor reaction be crucial for a strategic choice ?
Discuss.
3. Congruence and co-ordination among strategies should take place through
vertical and horizontal fit. Explain.
4. Companies should evaluate performance on the basis of a combination of
quantitative and qualitative criteria. Why? Discuss.
2.7.1 E-BUSINESS
1. Give a detailed presentation on designing, developing and deploying the on-line
business system for textile industry.
2. Discuss the challenges and opportunities of e-commerce in Indian Industry.
3. “EDI is not especially complex or convoluted, but many EDI projects fail when
responsibility is thrust wholly on the IT staff”. Discuss in detail.
4. Globalization has put increased pressure on organizations to operate at entirely
new level of effectiveness. This can be managed through application of BPR tools
to reduce procedures and the use of IT for effective decision-making. Present
your perspectives elaborately.
2.7.2 BUSINESS RESEARCH METHODS
1. Consider the following two research questions,
(a) How do the minority groups at a certain university view the students
counseling program?
(b) Examine the relationship between intelligence and creativity among the
students.
Indicate:
(i) The type of research that would best answer the question
(ii) An appropriate sampling method
(iii) The best method of collecting the data.
2. Discuss the role of Regression analysis in business and industry. How are
Regression Coefficient helpful in analysing the Regression lines?
3. The mean weekly sales of soap bars in department stores was 146.3 bars per
store. After an advertising campaign, the mean weekly sales in 22 stores for a
typical week was increased to 153.7 and showed a standard deviation of 17.2.
Was the advertising campaign successful?
4. Prepare questionnaire for the following research problem.
“Identify the factors influencing recently married couples striking a divorce”