Financial Management: Questions and Answers
National Institute of Business Management
Chennai - 020
FIRST SEMESTER EMBA/ MBA
Subject : Financial Management
Attend any 4 questions. Each question carries 25 marks
(Each answer should be of minimum 2 pages / of 300 words)
1. What are the significant factors of Financial Statements? Discuss the various tools of financial Analysis. (Answered)
2. What is a Fund Flow Statement? Discuss the uses and preparation of Fund Flow Statements. (Answered)
3. What is financial Forecasting? Explain. (Answered)
4. Examine the various tools of Financial Analysis. (Answered)
5. What is Zero Base Budgeting? Explain.
6. Describe the various aspects of Zero Based Budgeting with its merits and demerits.
25 x 4=100 marks
ANSWER SHEET
1. What are the significant factors of Financial Statements? Discuss the various tools of financial Analysis.
Answer:
Financial statements are one of the most reliable of all publicly available data for financial analysis. Also, financial statements are objective in portraying economic transactions and events, they are concrete, and they quantify important business activities. Moreover, since financial statements express transactions and events in a common monetary unit, they enable users to readily work with the data, to relate them to other data, and to deal with them in different arithmetic ways. These attributes contribute to the usefulness of financial statements, both historical and projected, in business decision-making.
Financial statement analysis is one important step in business analysis. Business analysis is the process of evaluating a company’s economic prospects and risks. This includes analyzing a company’s business environment, its strategies, and its financial position and performance. Business analysis is useful in a wide range of business decisions such as investing in equity or debt securities, extending credit through short or long term loans, valuing a business in an initial public offering (IPO), and evaluating
Chennai - 020
FIRST SEMESTER EMBA/ MBA
Subject : Financial Management
Attend any 4 questions. Each question carries 25 marks
(Each answer should be of minimum 2 pages / of 300 words)
1. What are the significant factors of Financial Statements? Discuss the various tools of financial Analysis. (Answered)
2. What is a Fund Flow Statement? Discuss the uses and preparation of Fund Flow Statements. (Answered)
3. What is financial Forecasting? Explain. (Answered)
4. Examine the various tools of Financial Analysis. (Answered)
5. What is Zero Base Budgeting? Explain.
6. Describe the various aspects of Zero Based Budgeting with its merits and demerits.
25 x 4=100 marks
ANSWER SHEET
1. What are the significant factors of Financial Statements? Discuss the various tools of financial Analysis.
Answer:
Financial statements are one of the most reliable of all publicly available data for financial analysis. Also, financial statements are objective in portraying economic transactions and events, they are concrete, and they quantify important business activities. Moreover, since financial statements express transactions and events in a common monetary unit, they enable users to readily work with the data, to relate them to other data, and to deal with them in different arithmetic ways. These attributes contribute to the usefulness of financial statements, both historical and projected, in business decision-making.
Financial statement analysis is one important step in business analysis. Business analysis is the process of evaluating a company’s economic prospects and risks. This includes analyzing a company’s business environment, its strategies, and its financial position and performance. Business analysis is useful in a wide range of business decisions such as investing in equity or debt securities, extending credit through short or long term loans, valuing a business in an initial public offering (IPO), and evaluating