ARYA SCHOOL OF MANAGEMENT & IT

BBA 3rd Sem - 1st Internal Examination

Subject-: Financial Management
TIME -:1 hour

1.
2.
3.
4.
5.

FULL MARK-20

(Answer any three questions from SET- A & SET-B is compulsory)

SET A
(3x5)
Define Traditional approach? Elaborate your answer with practical &
Suitable Example?
Define NI approach? Elaborate your answer with practical & Suitable
Example?
Define Degree of Operating leverage? How is it differing from financial
leverage with practical example?
Define the scope of financial management. What role should the
financial manager play in a modern enterprise?
Which project will be selected under NPV and P I methods ?
Particulars
Project A
Project B
Cash outflows
200,000
300,000
Cash inflows at the end of the
year
Slavage value
2000
3000
1st year
60,000
40,000
2nd year
50,000
50,000
3rd year
50,000
50,000
th
4 year
40,000
90,000
5th year
30,000
1,00,000
Cost of capital is 10%
Present Value Factors at 10 %
Factors/
1
2
3
4
5
Period
10%
0.909
0.826
0.751
0.683
0.620

(5X1)
1. Short term finance ?
2. Long term finance ?
3. One rupee note issued by which
authority?

SET B
4. 25th December celebrate as _________
Day?
5. Name gorvener of Reserve bank
India in 2015 ?