Seat No.: Enrolment No.
GUJARAT TECHNOLOGICAL UNIVERSITY
--- Content provided by FirstRanker.com ---
MBA - SEMESTER 3 - EXAMINATION - SUMMER 2018
Subject Code: 2830010 Date: 02/05/2018
Subject Name: Financial Planning
Time: 02:30PM TO 05:30PM Total Marks: 70
Instructions:
--- Content provided by FirstRanker.com ---
- Attempt all questions.
- Make suitable assumptions wherever necessary.
- Figures to the right indicate full marks.
Q.1(a) Multiple Choice Questions: 06
- The final step in the financial planning process is to
- Create a financial plan of action.
- Develop financial goals.
- Evaluate and revise your actions.
- Implement your financial plan.
--- Content provided by FirstRanker.com ---
- Financial strategies refer to
- The process of predicting your future financial situation.
- Courses of action to achieve financial goals.
- Resources an individual has available for investing.
- Ideas or principles that are considered correct, desirable, or important.
--- Content provided by FirstRanker.com ---
- A(n) interview is designed to judge the potential of final candidates for a job position.
- Selection
- Informational
- Screening
- Initiative
--- Content provided by FirstRanker.com ---
- Definite financial obligations are referred to as
- Variable expenses.
- Fixed expenses.
- Equity.
- Investment assets.
--- Content provided by FirstRanker.com ---
- An example of tax-exempt income is
- Gambling winnings.
- Pension funds.
- Rental income.
- Interest from municipal bonds.
--- Content provided by FirstRanker.com ---
- When stocks are traded between investors, they are traded in the market.
- Investment banking
- Primary
- Secondary
- Efficient.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Q.1(b) Define the following terms: 04
- Tax Credit
- Term Insurance
- Liquid Funds
- ELSS
--- Content provided by FirstRanker.com ---
Q.1(c) Write a short note on Life insurance v/s General insurance. 04
Q.2(a) Elucidate “Financial Planning is necessary for every human being.” 07
Q.2(b) Explain the various factors that have an impact on career Opportunities. 07
OR
(b) Explain the Five C’s of Consumer Credit. 07
--- Content provided by FirstRanker.com ---
Q.3(a) Explain the term Health Insurance? Also discuss the various features of Health insurance. 07
(b) Mrs. Patel wants to insure herself with a life insurance company. What are the factors that will affect the choice of insurance plan? 07
OR
Q.3(a) What do you mean by Financial Planning? Explain its process in brief. 07
(b) What are the various risks covered under a Motor Vehicle Insurance? 07
--- Content provided by FirstRanker.com ---
Q.4(a) What do you mean by Mutual Fund? Explain the various schemes of mutual fund in detail. 07
(b) Explain the concept of Time Value of Money in the context of your investment plan. 07
OR
Q.4(a) Explain the various types of financial services. 07
(b) Define Tax Planning? What is its importance in life? Also explain any 2 tax saving options u/s 80 series: 07
--- Content provided by FirstRanker.com ---
Q.5 Case Study
How does the use of credit affect your financial plan? What types of credit are available to you? How do you obtain credit? What factors do lenders consider before extending credit? How do you improve your chances of obtaining the credit you need?
A young woman faces the above questions. She is tempted to buy clothing that she really likes but knows she can’t afford. However, when she makes the decision to use her credit card, she suddenly goes on a shopping spree. She joins most consumers who have a limited understanding of consumer credit and the pros and cons of using it.
Credit is not free money. In addition to repaying the amount she charged, she must pay an additional expense in interest until the full balance is repaid.
When used responsibly, credit is a valuable financial tool. When used excessively, credit can destroy financial plans.
--- Content provided by FirstRanker.com ---
Questions:
a. According to the above case, what do you think are the pros and cons of using credit card? 07
b. What suggestions might you offer the young woman regarding the use of her credit card? 07
OR
--- Content provided by FirstRanker.com ---
Q.5 Case Study
Life is starting to settle down for the Marcottes. It feels good to know that they are starting to put their financial affairs in order, especially now that they know they have made some wise decisions on insurance policies. Some other changes have been positive as well, Mr. Marcotte just received an $8000 raise, and Luz got hired three months ago as a full-time psychologist at the State Mental Health facility. Since the Marcottes were surviving on one income for the last year or so, they have become savvy about cutting many unnecessary expenses as well.
Since the Marcottes have been able to save a sizable amount for their emergency funds, they now want to dabble in some sort of an investment plan. They have some broad goals in mind they want to achieve from their investments; they are quite overwhelmed by the investment choices. At this point in their lives, they are risk averse, because being financially comfortable is a recent phenomenon. Moreover, Martin has been with his company slightly over a year. It is possible if the financial successes continue they may be able to tolerate risk somewhat better.
The Marcottes are hoping that Paloma, and Joel (their kids) will be above average students and secure scholarships when applying to colleges. However they would like to invest prudently for the next 10 years when the kids will be ready to attend college. They would also like to retire comfortably in their late 60’s so that they can enjoy retirement, and also leave some assets for their children’s inheritance.
Questions:
--- Content provided by FirstRanker.com ---
a. Before the Marcottes engage in any kind of investment plan, list some of the factors they need to consider in order to perform a financial checkup. 07
b. Keeping in mind the Marcottes’ investment goals in order of priority, suggest some possible investment instruments? 07
--- Content provided by FirstRanker.com ---
This download link is referred from the post: GTU MBA Last 10 Years 2010-2020 Question Papers || Gujarat Technological University