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GURU NANAK INSTITUTE OF MANAGEMENT & TECHNOLOGY

MST 2nd

BANKING AND WORKING CAPITAL MANAGEMENT (BB605)

Time Allowed :3 hours

Note to students:
a) Section A is compulsory.
b) Attempt any 4 question from section B.

Section A
( 2*10=20)

Q1 Explain the following

a) Meaning of working capital

b) Economic Order Quantity

c) Operating cycle

d) Cash Cycle

e) Need for inventories

f) Bad debts

g) Cash inflow

h) Safety Stock

i) Credit Policy

j) Matching approach

Section B ( 4*10=40)

Q2 Define working capital .What factors would you take into consideration while
estimating the working capital requirements of a newly formed business?

Q3 Disuss the operating cycle under working capital management.


Q4 Discuss the approaches to determine an appropriate financing mix of working capital

Q5 What is inventory management? Why is it needed

Q6 What are ordering and carrying costs? what is their role in inventory control?

Q7 What are the short term sources of raising finance for meeting the working capital
requirements of a firm?

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