Download GTU MBA 2018 Winter 3rs Sem 2830202 Management Of Financial Services Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 3rs Sem 2830202 Management Of Financial Services Previous Question Paper

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER -3 ? EXAMINATION ? WINTER 2018

Subject Code:2830202 Date:10/12/2018
Subject Name: Management of Financial Services
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
? Attempt all questions.
? Make suitable assumptions wherever necessary.
? Figures to the right indicate full marks.
Q.1) (A) Answer the following MCQs by selecting a correct answer from the from the
following (6)
i) Which was the first Indian Bank, is association with other four major banks, to set up
Factors and Commercial Services in 1991
(a) SBI
(b) CBI
(c) BOB
(d) SIDBI
ii) The Prime Regulatory Authority working, in India, for the regulation of capital
market is __
(a) RBI
(b) IRDA
(c) SEBI
(d) SIDBI
iii) Which of the five big stand-alone ?bulge-bracket? investment banks has filed for
bankruptcy in 2008?
(a) Lehman Brothers
(b) Goldman Sachs
(c) Merrill Lynch
(d) Bear Sterns
iv) The maximum number of lead merchant bankers may not exceed in case of any issue
of Rs. 200 crores but less than 400 crores
(a) 2
(b) 3
(c) 4
(d) 5
v) Internet trading in India made its debut in ________
(a) April 2003
(b) April 2002
(c) April 2000
(d) April 2001
vi) Which of the following is not the fully owned subsidiary of the RBI
(a) National Housing Bank
(b) Deposit Insurance and Credit Guarantee Corporation of India
(c) Bharatiya Reserve Bank Note Mudran Private Limited
(d) National Bank for Agriculture and Rural Development
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Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER -3 ? EXAMINATION ? WINTER 2018

Subject Code:2830202 Date:10/12/2018
Subject Name: Management of Financial Services
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
? Attempt all questions.
? Make suitable assumptions wherever necessary.
? Figures to the right indicate full marks.
Q.1) (A) Answer the following MCQs by selecting a correct answer from the from the
following (6)
i) Which was the first Indian Bank, is association with other four major banks, to set up
Factors and Commercial Services in 1991
(a) SBI
(b) CBI
(c) BOB
(d) SIDBI
ii) The Prime Regulatory Authority working, in India, for the regulation of capital
market is __
(a) RBI
(b) IRDA
(c) SEBI
(d) SIDBI
iii) Which of the five big stand-alone ?bulge-bracket? investment banks has filed for
bankruptcy in 2008?
(a) Lehman Brothers
(b) Goldman Sachs
(c) Merrill Lynch
(d) Bear Sterns
iv) The maximum number of lead merchant bankers may not exceed in case of any issue
of Rs. 200 crores but less than 400 crores
(a) 2
(b) 3
(c) 4
(d) 5
v) Internet trading in India made its debut in ________
(a) April 2003
(b) April 2002
(c) April 2000
(d) April 2001
vi) Which of the following is not the fully owned subsidiary of the RBI
(a) National Housing Bank
(b) Deposit Insurance and Credit Guarantee Corporation of India
(c) Bharatiya Reserve Bank Note Mudran Private Limited
(d) National Bank for Agriculture and Rural Development
Q.1) (B) Define (4)
i) Commercial Paper
ii) Money Market
iii) Letter of Credit
iv) Venture Capital

Q.1) (C) Explain in brief the different types of money market instruments (4)
Q.2) (A) ?Merchant Bankers play a very important role in issue management activity.? State
the major obligations and responsibilities of merchant bankers. (7)
Q.2) (B) Describe the role and important functions of Reserve Bank of India (7)
(OR)
Q.2)( B) Explain the role of Insurance Regulatory Authority in India. Also explain Risk
Management in insurance sector. (7)

Q.3) (A)What is Factoring and Forfeiting? Discuss different types of factoring services (7)
Q3) (B)?Repos are the tool in the hand of RBI for managing the liquidity in the money
market? ? Discuss (7)
(OR)
Q.3) (A)What is leasing? Explain the different types of leases. (7)
Q.3) (B)Explain in detail how SEBI controls and develops stock market. (7)

Q. 4) (A) Discuss the importance and need of venture capital funds in India. (7)

Q.4)(B) How the Securitisation field is developed in India? Give your opinion to make it
more popular in India. (7)
(OR)
Q. 4) (A) How Bill Discounting help as a short term instrument of financing? Which are
different types of bills? (7)
Q4)(B)Describe different types of NBFCs in India. (7)

Q.5) Ajit is 30, newly married and a successful actor in the Indian film industry. Right from
his struggling days, Ajit always saved a part of his income and invested in safe instruments
like fixed deposits. However, during the internet boom in the late 90?s and early 2000, he
successfully invested in equities and mutual funds. Ajit thought that he was always well-
diversified but when the internet stock bubble burst in 2002, Ajit lost a majority of his stock
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Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER -3 ? EXAMINATION ? WINTER 2018

Subject Code:2830202 Date:10/12/2018
Subject Name: Management of Financial Services
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
? Attempt all questions.
? Make suitable assumptions wherever necessary.
? Figures to the right indicate full marks.
Q.1) (A) Answer the following MCQs by selecting a correct answer from the from the
following (6)
i) Which was the first Indian Bank, is association with other four major banks, to set up
Factors and Commercial Services in 1991
(a) SBI
(b) CBI
(c) BOB
(d) SIDBI
ii) The Prime Regulatory Authority working, in India, for the regulation of capital
market is __
(a) RBI
(b) IRDA
(c) SEBI
(d) SIDBI
iii) Which of the five big stand-alone ?bulge-bracket? investment banks has filed for
bankruptcy in 2008?
(a) Lehman Brothers
(b) Goldman Sachs
(c) Merrill Lynch
(d) Bear Sterns
iv) The maximum number of lead merchant bankers may not exceed in case of any issue
of Rs. 200 crores but less than 400 crores
(a) 2
(b) 3
(c) 4
(d) 5
v) Internet trading in India made its debut in ________
(a) April 2003
(b) April 2002
(c) April 2000
(d) April 2001
vi) Which of the following is not the fully owned subsidiary of the RBI
(a) National Housing Bank
(b) Deposit Insurance and Credit Guarantee Corporation of India
(c) Bharatiya Reserve Bank Note Mudran Private Limited
(d) National Bank for Agriculture and Rural Development
Q.1) (B) Define (4)
i) Commercial Paper
ii) Money Market
iii) Letter of Credit
iv) Venture Capital

Q.1) (C) Explain in brief the different types of money market instruments (4)
Q.2) (A) ?Merchant Bankers play a very important role in issue management activity.? State
the major obligations and responsibilities of merchant bankers. (7)
Q.2) (B) Describe the role and important functions of Reserve Bank of India (7)
(OR)
Q.2)( B) Explain the role of Insurance Regulatory Authority in India. Also explain Risk
Management in insurance sector. (7)

Q.3) (A)What is Factoring and Forfeiting? Discuss different types of factoring services (7)
Q3) (B)?Repos are the tool in the hand of RBI for managing the liquidity in the money
market? ? Discuss (7)
(OR)
Q.3) (A)What is leasing? Explain the different types of leases. (7)
Q.3) (B)Explain in detail how SEBI controls and develops stock market. (7)

Q. 4) (A) Discuss the importance and need of venture capital funds in India. (7)

Q.4)(B) How the Securitisation field is developed in India? Give your opinion to make it
more popular in India. (7)
(OR)
Q. 4) (A) How Bill Discounting help as a short term instrument of financing? Which are
different types of bills? (7)
Q4)(B)Describe different types of NBFCs in India. (7)

Q.5) Ajit is 30, newly married and a successful actor in the Indian film industry. Right from
his struggling days, Ajit always saved a part of his income and invested in safe instruments
like fixed deposits. However, during the internet boom in the late 90?s and early 2000, he
successfully invested in equities and mutual funds. Ajit thought that he was always well-
diversified but when the internet stock bubble burst in 2002, Ajit lost a majority of his stock
portfolio. A major mistake he made was that even though he was diversified, he invested only
in tech-stocks. Ajit has always had a penchant for technology from his young age and thus he
usually ended up buying tech stocks and funds. Currently, Ajit suffers from the snake-bite
effect and thus he is not willing to participate in the equity market at all. Ajit, now misses the
high returns that his portfolio had earned during the internet boom days. He has come to you
to seek your suggestions to help his portfolio generate higher returns.
Based on the above information answer the following:
(i) Will you recommend a stock only portfolio to Ajit or a mutual funds only portfolio
for Ajit? (4)
(ii) What kind of mutual fund will you recommend to Ajit? (3)
(iii)Explain to Ajit how his new mutual fund portfolio achieves diversification. Why is
this diversification important? (4)
(iv) Recommend a portfolio mix for Ajit. Explain to Ajit why investments in equities
improves the risk profile of the portfolio. (3)
.(OR)
Q.5) Ritu is a first year MBA student who is always missing her Garam Masala Chai and
Samosas made by Sevkram?s Mobile Restaurant in her hometown of Bhopal. She approaches
Sevkram with a business partnership proposal to open a similar mobile restaurant in
Ambavad near her college. Sevkram is horrified. He is not willing to invest in a city that is
unfamiliar to him and is more than a thousand kilometers away. However, he has known Ritu
for many years as she had patronized his restaurant for years and had never asked for
payment credit and had always paid cash. Thus, he offers her his secret formulas in return for
5 per cent of gross revenues that she can make creating products using his formulas. Ritu
gladly accepts the deal.
She creates samples of Chai, Samosas, Cold sandwiches and Idlis using Sekram?s secret
formula and serves them to her classmates. Her classmates love the Chai and eatables. She
tells them tjat she plans to start a business selling Chai and these eatables across the whole
country. She convinces ten of her classmates to contribute Rs. 1000 each at 10 per cent
simple annual interest with the principal due after two years and one free Chai and eatables
every week till she pays back the loan.
With the seed money that she has now she rents a ultra small mobile kiosk and names itr
Ritu?s Tea House and hires a couple of friends to sell these eatables from her kiosk.
Meanwhile, she focuses in creating these products and streamlining the production process at
her apartment. She delivers these products thrice a day to her kiosk. Ritu?s Tea House even
though a small kiosk is a big success ub ger university campus. Three months later, her 10
friends contribute an additional Rs.50,000 to start another kiosk and a commercial kitchen
where she can create these eatables. She hires production staff and logistics staff and six
months later, she has paid off all her loans and has two very successful kiosks. A commercial
kitchen with trained staff and a small logistics department who delivers on bicycles, and a
very happy Sevkram with his 5 per cent royalties and a happy set of friends who have had a
return of 10 per cent in nine months and 40 sets of free eatables.
Based on the above information answer the following:
(i) Ritu has approached you, a financial consultant, to help her out with additional
finances. She wants to open 18 more kiosks in the campus since the campus has
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Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER -3 ? EXAMINATION ? WINTER 2018

Subject Code:2830202 Date:10/12/2018
Subject Name: Management of Financial Services
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
? Attempt all questions.
? Make suitable assumptions wherever necessary.
? Figures to the right indicate full marks.
Q.1) (A) Answer the following MCQs by selecting a correct answer from the from the
following (6)
i) Which was the first Indian Bank, is association with other four major banks, to set up
Factors and Commercial Services in 1991
(a) SBI
(b) CBI
(c) BOB
(d) SIDBI
ii) The Prime Regulatory Authority working, in India, for the regulation of capital
market is __
(a) RBI
(b) IRDA
(c) SEBI
(d) SIDBI
iii) Which of the five big stand-alone ?bulge-bracket? investment banks has filed for
bankruptcy in 2008?
(a) Lehman Brothers
(b) Goldman Sachs
(c) Merrill Lynch
(d) Bear Sterns
iv) The maximum number of lead merchant bankers may not exceed in case of any issue
of Rs. 200 crores but less than 400 crores
(a) 2
(b) 3
(c) 4
(d) 5
v) Internet trading in India made its debut in ________
(a) April 2003
(b) April 2002
(c) April 2000
(d) April 2001
vi) Which of the following is not the fully owned subsidiary of the RBI
(a) National Housing Bank
(b) Deposit Insurance and Credit Guarantee Corporation of India
(c) Bharatiya Reserve Bank Note Mudran Private Limited
(d) National Bank for Agriculture and Rural Development
Q.1) (B) Define (4)
i) Commercial Paper
ii) Money Market
iii) Letter of Credit
iv) Venture Capital

Q.1) (C) Explain in brief the different types of money market instruments (4)
Q.2) (A) ?Merchant Bankers play a very important role in issue management activity.? State
the major obligations and responsibilities of merchant bankers. (7)
Q.2) (B) Describe the role and important functions of Reserve Bank of India (7)
(OR)
Q.2)( B) Explain the role of Insurance Regulatory Authority in India. Also explain Risk
Management in insurance sector. (7)

Q.3) (A)What is Factoring and Forfeiting? Discuss different types of factoring services (7)
Q3) (B)?Repos are the tool in the hand of RBI for managing the liquidity in the money
market? ? Discuss (7)
(OR)
Q.3) (A)What is leasing? Explain the different types of leases. (7)
Q.3) (B)Explain in detail how SEBI controls and develops stock market. (7)

Q. 4) (A) Discuss the importance and need of venture capital funds in India. (7)

Q.4)(B) How the Securitisation field is developed in India? Give your opinion to make it
more popular in India. (7)
(OR)
Q. 4) (A) How Bill Discounting help as a short term instrument of financing? Which are
different types of bills? (7)
Q4)(B)Describe different types of NBFCs in India. (7)

Q.5) Ajit is 30, newly married and a successful actor in the Indian film industry. Right from
his struggling days, Ajit always saved a part of his income and invested in safe instruments
like fixed deposits. However, during the internet boom in the late 90?s and early 2000, he
successfully invested in equities and mutual funds. Ajit thought that he was always well-
diversified but when the internet stock bubble burst in 2002, Ajit lost a majority of his stock
portfolio. A major mistake he made was that even though he was diversified, he invested only
in tech-stocks. Ajit has always had a penchant for technology from his young age and thus he
usually ended up buying tech stocks and funds. Currently, Ajit suffers from the snake-bite
effect and thus he is not willing to participate in the equity market at all. Ajit, now misses the
high returns that his portfolio had earned during the internet boom days. He has come to you
to seek your suggestions to help his portfolio generate higher returns.
Based on the above information answer the following:
(i) Will you recommend a stock only portfolio to Ajit or a mutual funds only portfolio
for Ajit? (4)
(ii) What kind of mutual fund will you recommend to Ajit? (3)
(iii)Explain to Ajit how his new mutual fund portfolio achieves diversification. Why is
this diversification important? (4)
(iv) Recommend a portfolio mix for Ajit. Explain to Ajit why investments in equities
improves the risk profile of the portfolio. (3)
.(OR)
Q.5) Ritu is a first year MBA student who is always missing her Garam Masala Chai and
Samosas made by Sevkram?s Mobile Restaurant in her hometown of Bhopal. She approaches
Sevkram with a business partnership proposal to open a similar mobile restaurant in
Ambavad near her college. Sevkram is horrified. He is not willing to invest in a city that is
unfamiliar to him and is more than a thousand kilometers away. However, he has known Ritu
for many years as she had patronized his restaurant for years and had never asked for
payment credit and had always paid cash. Thus, he offers her his secret formulas in return for
5 per cent of gross revenues that she can make creating products using his formulas. Ritu
gladly accepts the deal.
She creates samples of Chai, Samosas, Cold sandwiches and Idlis using Sekram?s secret
formula and serves them to her classmates. Her classmates love the Chai and eatables. She
tells them tjat she plans to start a business selling Chai and these eatables across the whole
country. She convinces ten of her classmates to contribute Rs. 1000 each at 10 per cent
simple annual interest with the principal due after two years and one free Chai and eatables
every week till she pays back the loan.
With the seed money that she has now she rents a ultra small mobile kiosk and names itr
Ritu?s Tea House and hires a couple of friends to sell these eatables from her kiosk.
Meanwhile, she focuses in creating these products and streamlining the production process at
her apartment. She delivers these products thrice a day to her kiosk. Ritu?s Tea House even
though a small kiosk is a big success ub ger university campus. Three months later, her 10
friends contribute an additional Rs.50,000 to start another kiosk and a commercial kitchen
where she can create these eatables. She hires production staff and logistics staff and six
months later, she has paid off all her loans and has two very successful kiosks. A commercial
kitchen with trained staff and a small logistics department who delivers on bicycles, and a
very happy Sevkram with his 5 per cent royalties and a happy set of friends who have had a
return of 10 per cent in nine months and 40 sets of free eatables.
Based on the above information answer the following:
(i) Ritu has approached you, a financial consultant, to help her out with additional
finances. She wants to open 18 more kiosks in the campus since the campus has
many colleges and hostels and 20 kiosks will comfortably survive without
cannibalizing each other?s sales. What will be your recommendations? (4)

(ii) 15 months later Ritu approaches you again for help, with additional funding. All her
20 kiosks are a runway success and her commercial kitchen is running at full
capacity. She has a small managerial team of three people who are now managing
the kitchen and the logistics. In a range of 5 kilometers outside the campus, there
are enough commercial businesses to support at least 100 kiosks. Ritu wants to
hire a real- estate manager to negotiate kiosk areas in the commercial and retail
buildings, she wants to buy two delivery trucks for her logistics department, and
she needs funding to create and run the additional 100 kiosks. What will be your
recommendations? (4)

(iii)Two years later Ritu has again approached you for your help . Ritu?s Tea Houses?
revenues tjis year will exceed Rs. 3 crore. Ritu is very satisfied with her success
but she has not achieved her vision of having Ritu?s Tea House in every city, town
and village of the country. She wants to know if she should now become like a
Sevkram and franchise her business model to other franchisees or should she keep
growing the way she has grown in the past four years? Discuss the funding need
and intermediaries that will be involved in both the approaches. (6)

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