iibm question paper

Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Financial Management (B-103)
Section A: Objective Type (30 marks)
This section consists of multiple choice & Short Notes.
Answer all the questions.
Part One carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. The approach focused mainly on the financial problems of corporate enterprise
a. Ignored non-corporate enterprise
b. Ignored working capital financing
c. External approach
d. Ignored routine problems

2. These are those shares, which can be redeemed or repaid to the holders after a lapse of the stipulated period
a. Cumulative preference shares
b. Non-cumulative preference shares
c. Redeemable preference shares
d. Perpetual shares
3. This type of risk arise from changes in environmental regulations, zoning requirements, fees, licenses and most frequently taxes
a. Political risk
b. Domestic risk
c. International risk
d. Industry risk
4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment proposal a. Future cost
b. Specific cost
c. Spot cost
d. Book cost
5. This concept is helpful in formulating a sound & economical capital structure for a firm
a. Financial performance appraisal
b. Investment evaluation
c. Designing optimal corporate capital structure
d. None
Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
6. It is the minimum required rate of return needed to justify the use of capital
a. From investors
b. Firms point
c. Capital expenditure point
d. Cost of capital
7. It arises when there is a conflict of interest among owners, debenture holders and the management
a. Seasonal variation
b. Degree of competition
c. Industry life cycle
d. Agency costs
8. Some guidelines on shares & debentures issued by the government that are