IGNOU MMPF-001 December 2022 Previous Year Question Paper

Q1.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.

Q2.What is working capital ? What are the various factors influencing the determinati on of working capital ?

Q3.The management of Alpha Ltd. is considering to change its existing credit policy. The details of options are given below : Credit Policy Existing X Y Z Sales 50 56 60 62 Variable cost (80% of sale) 40 448 48 496 Fixed cost 6 6 6 6 Average collection period (days) 30 45 60 75 Firm’s rate of investment is 20% Assume 360 days in a year You are required to advise which of these options is the best.

Q4.What is the need for credit evaluation of a customer ? Discuss the different credit evaluation models used for evaluating the creditworthiness of customers.

Q5.Explain the principles followed by banks while lending loans. What are the salient features of cash credit system ? Discuss the merits and demerits of cash credit system.

Q6.What do you understand by the term ‘Commercial Paper s (CP)’ ? Describe the eligibility conditions prescribed and the procedure followed for i ssuing Commercial Papers.

Q7.What are the objectives of working capital management in Sm all a nd Medium Enterprises (SMEs) ? Discuss the various barriers in optimization of working capital in SMEs.

Q8.Write short notes on any four of the following :

(a) Just-In-Time

(b) Credit Rating

(c) Public Deposits

(d) Consortium Lending

(e) Payables

(f) Money Market