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2.1 MANAGEMENT OF FINANCIAL SERVICES1. Risks have always been present in the banking system but their managementhas gained prominence over the recent years'. Discuss the various risks whichare being faced by banks and how are they being contained by them?2. Insurance Regulatory and Development Authority (IRDA) has its prime objectiveto protect the interest of policy holders. What regulations have been evolved by itto attain this objective?3. "The Stock Exchange is an essential pillar of the private sector corporateeconomy". Discuss this statement bringing out the role and functions played bythese exchanges in the process of capital formation and in mobilising resourcesfor the corporate sector.4. "Issue managers play a vital role in fund raising through public issue ofsecurities". Discuss this statement and explain the different pre-issue activitiesundertaken by an issue manager.2.2 INTERNATIONAL FINANCE1. Discuss about the recent trends in foreign private capital flows in India andevaluate the impact of this foreign investment inflow into Indian economy inpresent and future.2. Illustrate with suitable examples about the organizational characteristics of themultinational, global, international and transnational corporation in foreigntrade.3. Give a detailed study about the impact causes of the balance of paymentsdisequilibrium and the measures you recommend to correct the disequilibrium.4. Write a detailed note on India’s foreign trade performance in the recent economicpolicy regime, and the changes of government policy on foreign trade will havesome impact on export and import performance in India. Justify your answerwith examples.2.3 FINANCIAL ANALYSIS AND INDUSTRIAL FINANCING1) “Analysing ability of business operations in generating funds flow is one of themajor objectives of fund flow statement”. Do you agree or disagree? Justify yourviews how fund flow statement helps the management with appropriateexamples.2) You are given the following information pertaining to a company.Current ratio .5Liquid ratio 1.5Networking capitalRs. 30000Stock turnover ratio 6 times(cost of sales/closing stock)Gross profit ratio 20%Fixed asset turnover ratio(on cost of sales) 2 timesAverage debt collection period 2 months3Fixed assets/shareholder’s net worth 0.80Reserve and surplus/capital 0.50Draw up the balance sheet of the company3) a) lower interest rate may reduce the size of the banksb) banks are at a regulatory disadvantage when competing with other financialinstitutions for funds.Interpret the above statements.4) ICICI was formed in 1955 to provide medium and long term finance to Indianbusinesses. But over the period, it has diversified tremendously. Has thisdevelopment helped to achieve its objective. Justify.2.4 MANAGEMENT OF FUND AND ASSETS1. As a management accountant you are asked to introduce a system of capitalexpenditure control for your organisation. Explain in detail the importantfeature you want to incorporate in system you propose to introduce, with asuitable example of a project involving capital expenditure.2. “Efficient inventory management is reflected in the liquidity and profitability ofthe firm”. Do you agree? Justify your statement.3. “Lease financing has proved its unique adaptability to various financialproblems”. Explain with suitable examples.4. If sales forecast is subject to error, then there is no purpose of budgetary. Doyou agree (or)disagree. Give your views with appropriate examples.2.5 INVESTMENT, SECURITY AND PORTFOLIO MANAGEMENT1. (a) When selecting bonds for a portfolio, what factors should be consideredbefore choosing specific maturities and quality ratings?(b) Comment on the following statement: “In evaluating the suitability of a bondfor 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 ina flat market, where a security is not trending up or down but fluctuates arounda 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.42.6 STRATEGIC MANAGEMENT1. Trace the path taken from organizational resources and organizational behaviourto 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 throughvertical and horizontal fit. Explain.4. Companies should evaluate performance on the basis of a combination ofquantitative and qualitative criteria. Why? Discuss.2.7.1 E-BUSINESS1. Give a detailed presentation on designing, developing and deploying the on-linebusiness 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 whenresponsibility is thrust wholly on the IT staff”. Discuss in detail.4. Globalization has put increased pressure on organizations to operate at entirelynew level of effectiveness. This can be managed through application of BPR toolsto reduce procedures and the use of IT for effective decision-making. Presentyour perspectives elaborately.2.7.2 BUSINESS RESEARCH METHODS1. Consider the following two research questions,(a) How do the minority groups at a certain university view the studentscounseling program?(b) Examine the relationship between intelligence and creativity among thestudents.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 areRegression Coefficient helpful in analysing the Regression lines?3. The mean weekly sales of soap bars in department stores was 146.3 bars perstore. After an advertising campaign, the mean weekly sales in 22 stores for atypical 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”