In this post we have Shared Gauhati University Fundamentals of Financial Management Question Paper 2023 Pdf, B.Com 5th Sem GU, Now this Fundamental of Financial Management Question Paper Very helpful for FYUGP NEP 4th Semester Accountancy Major,Finance Major, HRM Major and Marketing Management Major Students because Syllabus of this subject is similar to previous one so it can be very beneficial for your upcoming exam preparation of Gauhati University FYUGP NEP 4th semester. So read this post from top to bottom and get familiar with the question paper solution .
2023
COMMERCE (Honours Core)
Paper: COM-HC-5026
(Fundamentals of Financial Management)
Full Marks: 70
Time: Three Hours
The figures in the margin indicate full marks for the questions.
Answer either in English or Assamese.
1. Choose the correct answers: (1×10=10)
(i) Which of the following is a part of financial decision-making?
(a) Financing decision
(b) Dividend decision
(c) Investment decision
(d) All of the above
(ii) Which of the following represents the capital structure of a company?
(a) Debt and equities
(b) Equities and preference share capital
(c) All assets
(d) All liabilities
(iii) Which of the following is also known as a long-term investment decision?
(a) Dividend decision
(b) Working capital
(c) Capital budgeting decision
(d) All of the above
(iv) Current assets are twice the current liabilities. If the working capital is ₹2,00,000, current assets would be:
(a) ₹2,00,000
(b) ₹4,00,000
(c) ₹3,00,000
(d) ₹1,00,000
(v) The capitalization of profit is termed as:
(a) Stock dividend
(b) Cash dividend
(c) Property dividend
(d) Bond dividend
(vi) Investment decisions are outside the purview of financial decisions.
(a) True
(b) False
(vii) Increased use of debt increases the financial risk of equity shareholders.
(a) True
(b) False
(viii) Capital budgeting decisions are generally of irreversible nature.
(a) True
(b) False
(ix) The rate of return on investment falls with the shortage of working capital.
(a) True
(b) False
(x) Profitability index is also known as benefit/cost ratio.
(a) True
(b) False
2. Answer the following questions in about 50 words each: (2×5=10)
(a) What is financial management?
(b) What is leverage?
(c) What are the various methods of capital budgeting decisions?
(d) What is a dividend?
(e) What is permanent working capital?
3. Answer the following questions within 150–200 words each (any four): (5×4=20)
(a) State the nature of financial management.
(b) Explain the significance of cost of capital.
(c) Explain the significance and limitations of financial leverage.
(d) Explain the capital budgeting process.
(e) Distinguish between gross working capital and net working capital.
(f) Explain the various forms of dividend.
4. Answer the following questions within 500–600 words each:
(a) Discuss the scope and objectives of financial management. (10)
Or
Describe the determinants of the capital structure of a firm.
(b) State the various factors determining the dividend policy of a company. (10)
Or
State the various factors determining the working capital requirements of a firm.
(c) Discuss the traditional methods of capital budgeting decisions. (10)
ABC Company Case Study:
ABC Company is considering purchasing one of the following two machines. The details are as follows:
Cost of Machine X and Machine Y is Rs. 10,00,000 each.
Calculate Net Present Value and Profitability Index. 7+3=10
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