New Questions for Financial Management SMU MBA Examination

There are some new questions for SMU MBA Financial Management examination after questions of financial management.

1. Set A

a) Constant dividend per share
b) Constant percentage of net earnings
c) Small constant dividend per share plus extra dividend
d) Dividend as a fixed percentage of MPS
Set B

i) Constant dividend plus additional funds
ii) Certain percentage of the market price per share
iii) Policy of constant payout ratio
iv) Certain fixed amount per share
A) (a-iv) (b-ii) (c-iii) (d-i)
B) (a-iv) (b-iii) (c-i) (d-ii)
C) (a-ii) (b-iii) (c-iv) (d-i)
D) (a-iv) (b- i) (c-iii) (d-ii)

2. Set A

a) Horizontal merger
b) Vertical merger
c) Lateral merger
d) Conglomerate merger
e) Concentric merger

Set B

i) segments brought together to carry over specific mgmt. functions
ii) two or more firms producing unrelated products
iii) firms producing different products related in some way
iv) different stages of the production of the same product
v) producing same product or doing the same business

A) (a- i) (b-ii) (c-iii) (d-iv) (e-v)
B) (a-ii) (b-i) (c-iv) (d-iii) (e-v)
C) (a-v) (b-iv) (c-iii) (d-ii) (e-i)
D) (a-iii) (b-iv) (c-iv) (d-ii) (e-i)

3.2 + 2 = 5 is the phenomenon known as

A) Economies of scale
B) Reverse synergy
C) Synergy
D) Divesture

4. ——— represent the sale of a segment of a company to a third party

A) Restructuring
B) Divestiture
C) Diversification
D) Merger

5. When an existing parent company distribute on a pro rata basis the shares of the new company to the shareholders of the parent company free of cost.

A) Sell off
B) Spin off
C) Equity carve out
D) Bust ups

6. ESOP stands for

A) Employers’ stock option plan
B) Employees’ stock option plan
C) Employees’ share option plan
D) Equity stock option plan

7. Agreement which allows the bondholder to demand repayment of the amount in the event of hostile takeover

A) Poison pills
B) Poison out
C) White knights
D) Green mail

8. Arrange in sequence the steps of financial planning

i) Laying down the financial procedures
ii) Financial planning
iii) Formulation of financial policies
iv) Setting financial objectives
v) Determination of the form of securities to be issued
vi) Estimating the capital requirement

A) i, iv ,ii, iii, v, vi
B) vi, v, iv, iii, ii, i
C) vi, v, iv, iii, i, ii
D) iv, v, iii, ii, i, vi

9. ——– means the amount of capital employed or invested in a business.

A) Cost of capital
B) Capital structure
C) Equity capital
D) Capitalization

10. When the actual capitalization of a company is more than the proper capitalization?

A) Under capitalization
B) Excess capital
C) Over Capitalization
D) Inadequate capital

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Questions of Financial Management for SMU MBA Examination

There are some most probable questions of Financial Management for SMU MBA examination in the process of examination questions for financial management. You should read SMU MBA assignments also for the assignment preparation.

1. Set A

a) Horizontal merger
b) Vertical merger
c) Lateral merger
d) Conglomerate merger
e) Concentric merger

Set B

i) segments brought together to carry over specific mgmt. functions
ii) two or more firms producing unrelated products
iii) firms producing different products related in some way
iv) different stages of the production of the same product
v) producing same product or doing the same business

A) (a- i) (b-ii) (c-iii) (d-iv) (e-v)
B) (a-ii) (b-i) (c-iv) (d-iii) (e-v)
C) (a-v) (b-iv) (c-iii) (d-ii) (e-i)
D) (a-iii) (b-iv) (c-iv) (d-ii) (e-i)

2.2 + 2 = 5 is the phenomenon known as

A) Economies of scale
B) Reverse synergy
C) Synergy
D) Divesture

3. ——— represent the sale of a segment of a company to a third
Party

A) Restructuring
B) Divestiture
C) Diversification
D) Merger

4. When an existing parent company distribute on a pro rata basis
the shares of the new company to the shareholders of the parent company free of cost.

A) Sell off
B) Spin off
C) Equity carve out
D) Bust ups

5. ESOP stands for

A) Employers’ stock option plan
B) Employees’ stock option plan
C) Employees’ share option plan
D) Equity stock option plan

6. Agreement which allows the bondholder to demand repayment of the amount in the event of hostile takeover

A) Poison pills
B) Poison out
C) White knights
D) Green mail

7. Arrange in sequence the steps of financial planning

i) Laying down the financial procedures
ii) Financial planning
iii) Formulation of financial policies
iv) Setting financial objectives
v) Determination of the form of securities to be issued
vi) Estimating the capital requirement

A) i, iv ,ii, iii, v, vi
B) vi, v, iv, iii, ii, i
C) vi, v, iv, iii, i, ii
D) iv, v, iii, ii, i, vi

8. ——– means the amount of capital employed or invested in a
business.

A) Cost of capital
B) Capital structure
C) Equity capital
D) Capitalization

9. When the actual capitalization of a company is more than the proper capitalization?

A) Under capitalization
B) Excess capital
C) Over Capitalization
D) Inadequate capital

10. ——– means the allocation of the limited funds available for financing the capital projects to only some of the profitable projects in such a manner that the long term returns are maximized.

A) Capital budgeting
B) Capitalization
C) Capital structure
D) Capital rationing

11. The ——— is the variability between the two returns, the ——– is the risk involved in the project.

A) greater, greater equal to
B) greater, lower
C) greater, more
D) lower, greater

12. ———- is a way of analyzing the changes in the NPV or IRR of a project to a given change in one variables of capital investment proposal like the estimated cash inflows etc.

A) Linear programming
B) Sensitivity analysis
C) Simplex method
D) Decision analysis

13. ——– is/ are statistical technique of risk measurement in capital budgeting.

A) Sensitivity analysis B) Standard deviation method
C) Both A & B D) None of these

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Examination Questions for Financial Management of SMU MBA

These are the most probable questions for Financial Management of SMU MBA in the sequence of questions for financial management. Get solved SMU MBA assignments.

1. ———- refers to the mix of or proportion of a firm’s permanent long term financing represented by debt, preference capital and quality capital.

A) Cost of capital B) Capital structure
C) Value of the firm D) Dividends

2. Particular mix of debt & equity which maximizes the value of the firm is known as———–

A) Capital B) Capital structure
C) Optimum capital structure D) maximization

3. Which of the following is not the assumption of capital structure theories?

A) Only two sources of funds
B) EBIT are expected to grow
C) Corporate tax does not exist
D) Company has infinite life

4. V = EBIT / Ko, What does “V” represent in this formula?

A) Value of firm
B) Value of equity
C) Value of cost
D) Value of competitors

5. Net Income Approach has been suggested by

A) Devid Durand B) David Durand
C) David Darand D) David F Durand

6. A company’s expected net operating income is Rs. 100000. The company has issued Rs.500000, 10% debentures of Rs 100 each.
The cost of equity is 12.5%, assuming no taxes find out overall cost of capital and the value of the firm according to NI approach.

A) 11.50% B) 11.10%
C) 11%b D) 11.25%

7. According to ———- approach, the value of the firm can be increased or cost of capital can be reduced by a judicious mix of debt and equity capital.

A) Net income B) NOI
C) Traditional D) MM

8. A company issues 1000 shares of Rs. 10 each and 10% of 5000 debentures of Rs. 10 each. It earns Rs. 30000 as operating profit. Calculate return on equity.

A) 225% B) 250%
C) 275% D) 200%

9. ——— costs are incurred when the funds are raised externally.

A) Brokerage B) Floatation
C) Sunk D) Opportunity

10. ———- is that portion of net profits which is distributed among the shareholders.

A) Interest B) Tax
C) Dividend D) Both A & B

11. R > K is the situation of which firm?

A) Constant firm B) Declining firm
C) Normal firm D) Growth firms

12. (i) The optimum payout ratio for a growth firm is zero
(ii) No optimum ratio for a normal firm
(iii) Optimum payout ratio for a declining firm is 100%
Which of the above equation is true?

A) Only (i) B) Only (i) & (ii)
C) All D) Only (ii) & (iii)

13. ——– issue bonds free of cost to the existing shareholders.
A) Property dividend B) Bonus shares
C) Cash dividend D) Bond dividend

14. A ——– is a method to increase the number of outstanding shares through a proportional reduction in the par value of shares.

A) Stock splits B) Bonus shares
C) Reverse split D) Bond dividend

15. A——— is said to be occur when two or more companies combine into one company.

A) Absorption B) Merger
C) Amalgamation D) Combination

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Questions for Financial Management SMU MBA Examination

This is the Financial Management questions of SMU MBA examination. I have already shared some questions for Financial Management. You can get solved MBA assignments also for all semesters.

1. TATA issues 4 years 12% debentures of Rs. 100/- each for Rs.
105/-. The debentures are redeemable at par. The company has spent Rs.5 per debentures as floatation cost.

A) 13%
B) 12%
C) 11%
D) 10%

2. Dividend on ordinary shares cannot be paid if———- is not paid.

A) Dividend on preference share
B) Interest on debentures
C) Tax
D) None of these

3. According to bond yield plus risk premium approach cost of equity can be calculated as

A) Yield on the bond
B) Risk premium
C) Yield on the bond + debenture interest
D) Yield on the bond + risk premium

4. If EPS = Rs 10, Price per share = Rs 100
Then cost of equity is

A) 100%
B) 10%
C) Data inadequate
D) 1%

5. The earnings before interest and taxes are also known as —–profits.

A) Net
B) Gross
C) Operating
D) Manufacturing

6.”The employment of an assets or funds for which the firms pays a fixed cost of fixed return”

A) James bob B) James hone
C) James Horne D) James bond

7. ——— the fixed cost, ——- will be the variation of operating profits to given rise or fall in sales.

A) higher, lower B) lower, higher
C) lower, lower D) higher, higher

8. The following is the formula of contribution

A) Sales – fixed cost B) Sales – variable cost
C) Sales – opportunity cost D) Sales – sunk cost

9. ———- cost does not change with the change in the output.

A) Variable B) Sunk
C) Fixed D) Material

10. ——– leverage involves the use of fixed cost source of finance like debt and preference capital.

A) Operating B) Favorable
C) Financial D) Unfavorable

11. ABC has an EBIT of Rs 600000 at 5000 level of production. The company has 500000 equity shares of Rs.10/- each, 15% debentures of Rs. 500000 & 10% preference capital of Rs. 500000. Calculate degree of financial leverage.

A) 1.49 B) 1.41
C) 1.70 D) 1.25

12. ———– leverage represents the effect of a given change in the sales revenue on the earning per share.

A) Financial B) Operating
C) Combined D) Favourable

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Questions for MIS SMU MBA Examinations

These are the sample questions for MIS (Management Information System) of SMU MBA examinations. I have already shared some sample questions on this topic – MIS Sample Questions for Sikkim Manipal University MBA and Management Information Systems Type A Sample Questions.

1. ______ is the process through which managers assure that actual activities confirm to the planned activities

a) Control b) Planning
c) Organizing d) Directing

2 The control process measures a progress towards _______

a) Orals b) Steps
c) Operation d) Organizations

3 _______ enables the manager to defect the deviation from the original plan

a) Controls b) Goals
c) Planning d) None of these

4 _______ the basic step of contest process

a) Establish standards b) Decision
c) Organizing d) Implementing

5 Corrective actions are mainly done to _______ process

a) Control b) Planning
c) Delegations d) None of these

6._____ is a Systematic effort to set the performance Standard is line with the objective

a) Management b) Controlling
c) Planning d) Implementing

7. A reliable and effective contest system has the feature of ______

a) Early working mechanism
b) Establishing standard
c) Goals
d) Steps
Ans. a

8. ______ can be defined as the data, which can be organized and present to decision maker

a) Actions b) Objectives
c) Goals d) Information

9._____ is the result /product of processing data.

a) Components b) Goals
c) Objectives d) Information

10.______ reduce uncertainly and triggers action

a) Data b) Goals
c) Information d) Actions

11._______ Competitive and internal information are mainly the requirement of decision maker in planning

a) Data b) Goals
c) External d) None of these

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MIS Sample Questions for Sikkim Manipal University MBA

There are the sample questions for MIS (Management Information System) of SMU MBA examination. I have already shared some sample questions on this topic – Sample Questions for SMU MBA Second Semester MIS, Sample MIS Questions for SMU MBA Examination and Management Information Systems Type A Sample Questions.

1. The four major types of Information System are:

A) (1) AIS (2) EIS (3) KMS (4) ES
B) (1) TPS (2) ISS (3) MIS (4) OAS
C) (I) OAS (2) OIS (3) AIS (4) KMS
D) (1) KMS (2) ISS (3) OAS (4) AIS

2) _______ can be defined as the data, which can be organized and present to decision maker.

a) Information b) Actions
c) Objectives d) Goals

3) Vertical organization is also know as ______

a) Line organization
b) Functional organization
c) Line and staff
d) Committee organization

4. In line organization authority concentrates in the hands of __________

a) Top most b) Middle
c) Lower d) None of these

5 In ____ organization authority will be reduced at each successive level.

a) Line organization
b) Functional
c) Line and staff
d) Committee organization

6. In which organization activity taken out by any department affects the work of other departments

a) Committees organization
b) Staff organization
c) Line organization
d) None

7. Multifaceted problem can be solved by implementing ___________organization

a) Committee organization
b) Line and staff organization
c) Functional organization
d) Line organization

8. _____ is a process of achieving an organizational goals and objectives with resources

a) Management
b) Organization
c) Committee organization
d) Line organization

9. _____ major function of management

a) Planning b) Allocating
c) Sampling d) Operating

10. _____ is the process of deciding in advance. When and also how to undertake actions.

a) Planning b) Management
c) Line organization d) MIS

11. _____ is the mode of checking the program of plans and correcting the deviations

a) Controlling b) Planning
c) Directing d) None

12. Top level management is otherwise called _______ management

a) Strategic b) Tactical
c) Operational d) Controlling

13. _______ level management has the responsibility of implementing over all plans

a) Middle level b) Top level
c) Lower level d) None of these

14. Junior level management has the responsibility of implementing __________ operations

a) Day to day b) Fractional
c) Strategic d) Organization

15. ________ Planning Formulates policies to govern use and disposition of the resources

a) Strategic planning
b) Management contest
c) Operational control
d) Strategic and operational control

16. ________ measure performance, decide on contest actions and also allocate resources

a) Management contest
b) Strategic planning
c) Operational control
d) None of these

17. ________ makes use of pre-established procedures and decision rules

a) Operational contest
b) Strategic planning
c) Management control
d) Organization

18. Planning, Organising, directing and Controlling are the various ____ in the Management process

a) Steps b) Resources
c) Objectives d) None of these

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Sample MIS Questions for SMU MBA Examination

These are the sample questions for MIS (Management Information System) of SMU MBA examination. There are already some questions on this topic – Sample Questions for SMU MBA Second Semester MIS and Management Information Systems Type A Sample Questions. There is a solved assignment question also of Strategic Information Systems and Uses of SIS for a Manager from MB0031.

Qs 1. Groupware is capable of handling core process like

1. Communication and Integration
2. Expedite processing of transaction, application and system
3. Collaboration and delivery
4. All are valid statement

Qs 2. ERP stands for

1. Electronic Resource processing
2. Enterprises Resource planning
3. Enterprises Resource process
4. None of the above is valid

Qs 3. ERP comprises of

1. CRM (customer relation mgmt)
2. SPM (supply chain mgmt)
3. EAI (Enterprises Application Integration)
4. All are correct

Qs 4. E-enterprises raised the issues in the areas of

1. Secrecy, Confidentiality & privacy
2. Destructions & theft of information
3. All of the above
4. None of the above

Qs 5. Factor which does not affect the security of the information and information system are Destruction, deletion, bugs infection, theft and corruption

1. True
2. False

Qs 6. The balance in line and staff organization is achieved by maintaining

A) Structure of the Line organization
B) Functionality of functional organization
C) Functionality of line organization
D) All of the above

7. Strategic planning in an organization refers to

a. 1) Budget allocation 2) Personnel control
B) 1) Policy framing 2) Budget control
C) 1) Formulate policy to govern
2) Budget allocation
D) 1) Deciding the objectives of the organization
2) Planning resources to be used in order to attain the objectives.

8. MIS plays the role of

A) 1) Information 2) Information generation communication
B) 1) Information 2) Information collection processing
C) 1) Information 2) Information recording processing
D) None of the above

9. A well designed Information System helps the manager to resort to exercises like

A) 1) High degree of control
2) High degree of professionalism
B) 1) Experimentation 2) Modeling
C) 1) High degree of motivation 2) Management tools
D) All of the above

10. The Departmental Organization is also termed as

A). (1) Vertical organization
(2) Horizontal organization
(3) Linear organization
(4) Circular organization
B) (1) Line organization
(2) Scalar organization
(3) Military organization
(4) Vertical organization
C) (1) Functional organization
(2) Linear organization
(3) Military organization
(4) Triangle organization
D) (1) Triangle organization
(2) Circular organization
(3) Horizontal organization
(4) Vertical organization

11. A reliable and effective control system has the following features

A) (1) Early warning mechanism
(2) Performance standard
(3) Strategic control
(4) Feedback
B) (1) Accuracy and timeliness
(2) Realistic
(3) Information flow
(4) Exception principal
C) Both A) and B)
D) (1) Standards
(2) Corrective action
(3) Performance evaluation
(4) Warning mechanism

12. The internal constraints in the design of MIS are
a. (1) Top management support
(2) Organization policy
(3) Manpower needs and availability
(4) Cost and resource
b. (1) Cost
(2) Time
(3) Resource availability
(4) User need
c. (1) User analysis
(2) Organizational analysis
(3) Acceptance of the new system
(4) Understanding the limitations
d) (1) Type of information to be made available
(2) Structured and unstructured information
(3) Information policy
(4) Organizational policy

13. The systemic approach to the development of MIS has the following four steps viz.
A) (1) Identify requirements
(2) Locate evaluate and secure software development
(3) Locate evaluate and secure hardware development
(4) Implement the system
B) (1) Locate hardware
(2) Locate software
(3) Evaluate hardware
(4) Evaluate software
C) (1) Identify requirements
(2) Local hardware
(3) Local software
(4) Implement the hardware and software
D) (1) Analyse the need
(2) Analyse the hardware
(3) Analyes the software
(4) Decide the implementation plan

14. The ABC nature of information is

A) (1) Accuracy (2) Broad
(3) Consistent (4) Timely
B) (1) Information (2) Understanding
(3) Intelligence (4) Effectiveness
C) (1) Accuracy (2) Information
(3) Effectiveness (4) Timely
D) (1) Relevancy (2) Accuracy
(3) Communication (4) Effectiveness.

15. a) _____ helps the information system in the intelligence phase where the objective is to identify the problem and then go to the design phase for solution
b) ______ is a process whereby systems are developed swiftly, without having undergone a complete analysis and specification
c) A Neural n/w are especially used for________
A) (a) Decision Support System (b) Prototyping
(c) Pattern recognition
B) (a) Expert System (b) System Maintenance
(c) Prototyping
C) (a) Artificial Intelligence (b) Expert System
(c) System development
D) None of the above

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