Download JNTUA MBA 3rd Sem Supple 2015 Dec 12E01302 Working Capital Management Question Paper

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Code: 12E01302

Time: 3 hours

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MBA (Finance) III Semester Supplementary Examinations July 2015

WORKING CAPITAL MANAGEMENT

(For students admitted in 2011, 2012 and 2013 only)

Max Marks: 60

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Answer any FIVE questions

All questions carry equal marks

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1. (a) 'Working capital decisions deal with decisions ensuring an optimum mix and level of current assets and current liabilities'. Elucidate the statement.
   (b) What is a credit policy? Why does a firm need it? How is it evaluated?

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2. Discuss the utility of cash budget as a tool of cash management. What are the steps involved in the construction of a cash budget?
3. Explain the role of financial manager in inventory management.
4. (a) What do you understand by credit-worthiness of a borrower? What factors are taken into account to determine credit worthiness?
   (b) What is meant by cash credit system? Explain its important merits and demerits.
5. What is trade credit? How safe is it to bank, upon trade credit to finance short-term working capital requirements?

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6. (a) Explain the objectives of receivables management.
   (b) Briefly explain the purpose of the following models:
   (i) Baumol model. (ii) Miller and Orr model.
7. What do you understand by management information system? How can it be installed?
8. 'Efficient cash management will aim at maximizing the availability of cash inflows by decentralizing collections and decelerating cash flows by centralizing disbursements'. Discuss.

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