Burlington junior college
Subject : Sp
Marks: 30
Q.1 A) Select the correct answer from the options given below and rewrite the statements. (4 m)
1. .................. is related to money and money management.
a) Production b) Marketing c) Finance
2. Finance is the management of ................. affairs of the company.
a) monetary b) marketing c) production
3. Corporation finance deals with the acquisition and use of ................. by business corporation.
a) goods b) capital c) land
4. Company has to pay ................. to government.
a) taxes b) dividend c) interest
Q.2 Explain the following terms / concepts. ( any 2) ( 4m)
1. Financing decision
2. Investment decision
3. Fixed capital
4. Working capital
Q.3 Study the following case / situation and express your opinion. (6m)
(1) The management of ‘Maharashtra State Road Transport Corporation’, wants to determine
the size of working capital.
a. Being a public utility service provider, will it need less working capital or more ?
b. Being a public utility service provider, will it need more Fixed Capital ?
c. Give one example of public utility service that you come across on day-to-day basis.
(2) A company is planning to enhance it’s production capacity and is evaluating the possibility
of purchasing new machinery whose cost is ` 2 crore or has alternative of machinery
available on lease basis.
a. What type of asset is machinery ?
b. Capital used for purchase of machinery is fixed capital or working capital ?
c. Does the size of a business determine the fixed capital requirement ?
Q.4 Distinguish between the following.( 8m)
1. Fixed Capital and Working Capital.
2. Equity share and preference share
Q.7 Answer the following questions. (Any 1) (8m)
1. What is an equity share ? Explain it’s features.
2. Define preference shares. What are the different types of preference shares.
