(i) What is risk? How do you distinguish between systematic and unsystematic risk?

(ii) Define "Miller and Orr model" of cash management.

(iii) State the features of money market.

(iv) Define the significance of international finance management.

(v) State the relationship between BOP and national economy.

(vi) Differentiate "arbitration" and "speculation" in foreign exchange market.

(vii) Define marginal cost of capital.

(viii) Write short note on JIT.

(ix) What are the conditions for the redemption of redeemable preference share?

(x) Mention the different types of dividend paid by companies.

Q.2 What do you understand by "Financial Management"? Discuss its significance in Business

Management.

Q.3 What is capital budgeting? Critically examine the various methods of evaluation of capital

Budgeting proposals.

Q.4 Define dividend policy. Explain briefly the factors which affect the dividend policy of a

firm.

Q.5 What is meant by inventory control? Explain the different costs associated with

inventory.

Q.6 Define cash management. Discuss in detail the factors that determine the needs cash of a firm.