Distinguish the different working capital financing strategies. Under the present
capital and money market conditions which of these would you recommend to a
consumer durable manufacturing firm. Explain with reasons & list out your
assumption, if any.
2. You are required to recommend as to which of the policies given below should be
adopted by a trader who wants to pursue a more liberal credit policy to improve
sales. His current sales are Rs. 15 lacs per annum & average collection period is
Credit Policy Increase in Collection Period Increase in Sales
P 15 days Rs. 60,000
Q 30 days 90,000
R 45 days 1,50,000
S 60 days 1,80,000
T 90 days 2,00,000
The selling price per unit is Rs. 5. Average cost per unit is Rs. 4 and variable
cost per unit is Rs. 2.75 paise per unit. The required rate of return on
additional investment is 20 percent. Assume 360 days a year and that there are no
3. Assume that the following quantity discount schedule, for a particular bearing,
is available to a retails store:
Order Size (units) Discount
200 and above 12%
The cost of a single bearing with no discount is Rs. 30. The annual demand is 250
units. Ordering cost is Rs. 20 per order and annual inventory carrying cost is Rs.
4 per unit. Determine the optimal order quantity and the associated minimum total
cost of inventory and purchasing costs if shortage is not allowed.
4. Assume that you are in import business. Does a bank need to be satisfied about
your credit worthiness before extending non fund facilities to you. Discuss this
issue with a Banker and explain fully.
5. “In simulating financial decision, the strategy that produces the best
simulated result is not necessarily the optimal financing strategy”, do you agree
with this statement? Why or why not?
1. How can Entrepreneurial Competencies and Skills be developed through suitable
training interaction? Explain.
2. Using the SWOT framework conduct an opportunity analysis for the following.
(a) a leather products outlet
(b) a handicrafts outlet
3. Explain the common errors committed in the formation of a Business Plan.
4. Discuss the management aspects of the following assets whose pitfalls are
commonly observed in the daily operations of a small business.
(a) Land and Building
(b) Trade Debts
5. “The cash flow statement provides a way of relating an entrepreneur’s earning
efforts with their effect on the cash balances”. Discuss this statement with
reference to control of Cash Flow statement.
6. Write short notes on the following:
(a) Industrial Policy Resolution (IPR) 1956
(b) Material Management
(c) Cost and Time Overruns
1. Explain the concept of Research Design. Describe some important research design
for research study.
2. Examine the merits & limitations of the observation method for collecting data.
Illustrate your answer with suitable examples.
3. What is the meaning of measurement in research? What difference does it make
whether we measure in terms of a nominal, ordinal, interval or ratio scale?
4. Assume a research topic of your choice and give the complete format of its
5. A chain of departmental stores opened three stores in Mumbai. The management
wants to compare the sales of the three stores over a six day long promotional
period. The relevant data is given below.
(Sales in Rs. Lakhs)
Use the Kruskal-Wallis test to compare the equality of mean sales in all the three
MS 03--MS 95
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