: FINANCIAL MANAGEMENT first semester exams

INTERNATIONAL UNIVERSITY, BAMENDA (IUB)

KUMBO OUT-REACH CENTRE.

FACULTY OF SOCIAL SCIENCES AND BUSINESS ADMINISTRATION.

DEPARTMENT OF BUSINESS MANAGEMENT.

Semester Exams.

Course Title:  FINANCIAL MANAGEMENT

Course Code:________________

Time Allowed: 3 Hours.

Instructions: Answer all Questions in good English.

Question ONE

            The decision to start your own firm and go into business can be thought of as a capital budgeting decision.  You only go ahead if projected returns look attractive on a personal and financial basis. Discuss this statement. (10 Marks)

Question Two

            What major steps are involved in the capital budgeting process? (12 Marks)

Question Three.

                Clearly Distinguish between the following sources of finance available to a Business:-

a.     Factoring and Grants

b.     Venture Capital and Bank Loan

c.      Overdraft and Short Term Loan

d.     Retained Profit and Working Capital

e.     Home Equity line of credit and Hire Purchase (10 Marks)

Question Four.

A)   Financial Managers have the Primary responsibility of acquiring funds (cash). Every key decision made by a firm’s manager has important financial implications. Managers usually face allot of questions, List some of them. (8 Marks)

B)    What are the objectives of financial management? (5 Marks)

C)    State and explain the functions of Financial Management. (10 Marks).

Course Master

JAVNYUY JOYBERT.

“Put God First and He is Going to take you Places you could Never

Imagine”