MMPF-001 Working Capital Management Solved Question Paper December 2023

MMPF-001 Working Capital Management Solved Question Paper December 2023

Working Capital Management
Course Code: MMPF-001

1. Explain the ‘Gross Concept’ and ‘Net Concept’
of working capital. Discuss the different types
of working capital and their behaviour in
different categories of firms.
[ 2 ] MMPF–001
2. Discuss the Industry Norm Approach and
Economic Modelling Approach to the
determination of working capital.
3. Why do firms need to manage cash ? What are
the motives of holding cash ?
4. How does uncertainty affect inventory
management ? Explain any one model of
inventory management under the condition of
uncertainty.
5. Explain the significance of trade credit. What
are the factors that influence the availability of
trade credit ?
6. What are the objectives of working capital
management in Small and Medium Enterprises
(SMEs) ? Discuss the various barriers in
optimization of working capital in SMEs.
7. What factors are considered while estimating
the working capital needs of a large company ?
[ 3 ]
8. Write short notes on any four of the following :
(a) Cash Reserve Ratio (CRR)
(b) Bridge loans
(c) Behavioural Biases
(d) Mortgage
(e) F-S-N Analysis