MMPF-001 Working Capital Management Solved Question Paper June 2024

MMPF-001 Working Capital Management Solved Question Paper June 2024

Working Capital Management
Course Code: MMPF-001

1. Explain the operating cycle. What are the other
factors influencing the determination of
working capital requirements of a firm ?
2. What do you understand by Cash Reserve Ratio
(CRR) and Statutory Liquidity Ratio (SLR) ?
How does a change in these ratios affect the
availability of bank credit to business
organisations ? Discuss.
[ 2 ] MMPF–001
3. What is the need for credit evaluation of a
customer ? Discuss the different credit
evaluation models used for evaluating the
credit worthiness of customers.
4. Discuss how can a firm create value through
working capital management. Explain the
principles laid down by Walker with respect to
working capital investment.
5. Explain the objectives of working capital
management in SMEs. How is working capital
management in SMEs different from large
firms ?
6. Describe the procedure for discounting of Bills.
What are the advantages of discounting of
Bills ?
7. Which factors are to be considered by MNCs in
managing their working capital ? Discuss how
inventory is managed in MNCs.
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8. Write short notes on any four of the following :
(a) Payables
(b) Bank Guarantee
(c) Re-order point
(d) Certificate of Deposit
(e) Inter-Corporate Loans