M.Com. (Semester III) (CBCS) Examination Oct/Nov-2017
BUSINESS FINANCE
Day Date: Thursday, 23-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
According to Mr. Hoagland, the finance function is the process of
by a business.
Acquiring funds Utilizing funds
Both a b None of these
5
In theory amount of capitalisation is based on investment in fixed
and current assets.
Earnings Price
Cost Demand
The book value of the shares is more than its real value is one of the
symptoms of
Under capitalisation Over capitalisation
Fair capitalisation Normal capitalisation
fund scheme is open for subscription only during a
specified period, generally at the time of initial public issue.
Close Ended Open Ended
Interval Growth
The utilisation of retained earnings for meeting the fixed or working capital
requirements of an industry is known as
Mutual funds Bank financing
Self financing Debentures
A preference share holder enjoys preferential rights with respect to
Receive dividend before ordinary shares
Preferential right to repayment of capital on winding up.
Both a b
None of the above
The shares of over capitalised company are sold at
Discount Premium
Par Profit
do not create any charge on the assets of a company.
Bonds Bank loan
Hypothecation Equity shares
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have come as boon to the small and medium investors.
Self financing Mutual funds
Foreign Direct investment All of these
10) Global Depository Receipts is one of the route of
Direct Investment Port folio Investment
Private Investment Official Investment
11) is a joint venture which is owned and managed jointly by
Domestic entrepreneur and foreign entrepreneur.
Amalgamation Merger
Foreign collaboration Acquisions
12) The most economical and convenient source of external financing is
Bonds Loans
Debentures Public Deposits
13) Issue of variety of corporate securities makes the financial plan
Complex Ideal
Simple Flexible
14) Forms of Foreign Direct Investment are
Wholly owned subsidiary Joint ventures
Acquisions All of these
Q.2 Write short notes. 14
Theories of Capitalization.
Types of Mutual Funds.
Q.3 Write short answers. 14
State the advantages and disadvantages of self financing.
What are the different forms of foreign collaboration?
Q.4 Answer any one of the following questions. 14
What is under capitalization? State the effects of and remedies for under
capitalization.
State the advantages and limitations of public deposits.
Q.5 Answer any one of the following questions. 14
What do you mean by 'Foreign Capital'? State the role and importance of
foreign capital in Indian economy.
Define the term 'Business Finance'. State the nature and scope of business
finance.