DEGREE PROGRAMME: MBAACADEMIC YEAR: 2013-14SEMESTER: II UNIT TEST: ISUBJECT CODE: BA7202TITLE: FINANCIAL MANAGEMENTDATE:13.02.14TIME: 1 hrs 40minMAX. MARKS: 50PART AANSWER ALL THE QUESTION (5*2=10 marks)1. What do you mean by Time value of money?2. Briefly explain any two setbacks of Profit maximization.3. How is the term finance more comprehensive than money management?4. What are the functions of finance?5. What is capital rationing? State the principles of capital rationing.Part BCompulsory Question (1X14=14)6. In what ways is the wealth maximization objective superior to the profit maximization objective? Explain.Answer the Two questions. (2X13=26)7. What are the main functions of finance management? Explain.8. Explain the features, advantage and objectives of capital budgeting.9. Write about the functions and roles of financial manager.

DEGREE PROGRAMME: MBAACADEMIC YEAR: 2013-14SEMESTER: II UNIT TEST: ISUBJECT CODE: BA7202TITLE: FINANCIAL MANAGEMENTDATE:13.02.14TIME: 1 hrs 40minMAX. MARKS: 50PART AANSWER ALL THE QUESTION (5*2=10 marks)1. What are the needs of capital budgeting?2. How would you have a fresh look at the finance function in business?3. Define and explain financial assets.4. What is effective rate of return?5. What do you mean by capital rationing?Part BCompulsory Question (1X14=14)6. What is risk? How can risk of a security be calculated? Explain your answer with an example.Answer the Two questions. (2X13=26)7. Explain the various setbacks of Profit maximization and how that can be overcome through Wealth maximization.8. Discuss fully the organization of the finance functions in a business.9. Briefly explain about Investment decision and portfolio diversification with suitable illustration.