IGNOU MMPF-001 December 2025 Previous Year Question Paper

Q1.Discuss the different types of working capital and their behaviour in different categories of firms. Also differentiate between Gross Working Capital and Net Working Capital. [ 2 ]

Q2.What factors are taken into consideration, while designing the credit policy of a firm ?

Q3.Discuss the five dimensions popularly called Five C’s of credit analysis.

Q4.Explain the term ‘Marketable Securities ’ and the need for investment in marketable securities. Discuss the different types of Marketable Securities.

Q5.How is value created through working capital management ? Explain the principles laid down by Walker with respect to working capital investment.

Q6.Explain the unique characteristics of Working Capital Management in SMEs.

Q7.Discuss the determinants of working capital management in SMEs.

Q8.Which factors are to be considered by Multi- national Corporations (MNC s) in managing their working capital ? Discuss the issues in International Cash Management that need to be taken care of by an MNC. [ 3 ]

Q9.Write short notes on any four of the following :

(a) Statutory Liquidity Ratio (SLR)

(b) Trade Credit

(c) Behavioural Biases

(d) Economic Order Quantity

(e) Commercial Papers

(f) Mortgage

Q10.You are required to compute the duration of the operating cycle in days from the following information extracted from the books of a manufacturing firm : Particulars ` '000 Average debtors (outstanding) 480 Raw material consumption 4,400 Total production cost 10,000 Total cost of sales 10,500 Sales for the year 16,000 Value of average stock maintained : Raw materials 320 Work-in-process 350 Finished goods 260 [ 4 ] MMPF–001 Additional information :

(i) Period covered : 365 days per year for computation purposes.

(ii) Average period of credit allowed by suppliers : 16 days.