Top Financial Management question Bank 1. Contrast the salient features of the traditional and modern approaches to financial management.2. Discuss the three broad areas of financial decision making.3. What is the justification for the goal of maximising the wealth of shareholders ?4. Discuss the functions performed by the financial system.5. Give some examples of financial assets.6. Discuss the important functions performed by financial markets.7. List the important functions performed by the financial statements8. Present the account form as well as the report form of the balance sheet.9. Describe the various asset accounts and liability accounts found on a company's balance sheet.10. What are the different types of financial ratios ?11. Discuss the important liquidity ratios.12. Define and evaluate various leverage ratios.13. State the equation for EPS.14. What kinds of questions may be answered with help of cost-volume-profit analysis?15. What assumptions underlie cost-volume-profit analysis?16. Show schematically the planning system of a firm.17. What are the elements of a corporate financial plan?18. What are the benefits of financial planning?19. Why does money have time value ?20. State the general formula for the future value of a single amount.21. What is the difference between compound and simple interest ?22. Describe briefly the various concepts of value.23. Discuss the basic bond valuation model.24. State the formula for a bond which pays interest semi-annually.25. How is the rate of return on an asset defined?26. What is standard deviation? What are its important features?27. Why is standard deviation employed commonly in finance as a measure of risk?28. From the point of view of the option holder, discuss the payoffs of a call option and a put option just before expiration.29. What are the payoffs of a call option and a put option just before expiration, from the point of view of the writer (seller) of the option?30. Explain the put-call parity theorem.31. Why are capital expenditures deemed very important?32. Discuss the phases of capital budgeting.33. Describe the commonly found categories in project classification.34. What are the three elements of the cash flow stream of a project?35. How is the time horizon for cash flow analysis usually established?36. What does the separation principle say?37. List the techniques of risk analysis.38. Discuss the steps involved in sensitivity analysisQ.39.
(a) Explain Standardisation, codification and variety reduction giving examples.
(b) Discuss vendor evaluation and rating. Give a list of factors to be considered.
