MMPF-001 · June 2023 · English
IGNOU MMPF-001 June 2023 Previous Year Question Paper
WORKING CAPITAL MANAGEMENT
Structured previous year question paper for MMPF-001, June 2023 session.
Max marks: 100 · Questions: 10
Verified: 11 Sept 2026
MASTER OF BUSINESS
ADMINISTRATION
(MBA)
Term-End Examination
June, 2023
MMPF-001 : WORKING CAPITAL MANAGEMENT
Time : 3 Hours Maximum Marks : 100
Note :
(i) Answer any five questions.
(ii) All questions carry equal marks.
Q1.Define working capital and discuss the different components of working capital.
Q2.What is the role of Central Bank in designing and implementing monetary and credit policy ?
Q3.Discuss the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) in detail.
Q4.What do you understand by the term ‘Cash Management’ ? Why do firms hold cash and marketable securities ?
Q5.Explain the following :
(a) Bierman-McAdams optimisation model
(c) Miller and Orr model.
Q6.Explain t he meaning and significance of t rade credit. Discuss the various factors that determine trade credit.
Q7.What do you understand by ‘Term Loans’ ?
Q8.Discuss the purposes for which they are granted by banks.
Q9.Explain the financing options accessible to large and small firms. Discuss the reasons for differences in access to working capital finance for SMEs and large companies.
Q10.Two components X and Y are used as follows : Normal usage = 50 units each per week Minimum usage = 25 units each per week Maximum usage = 75 units each per week Re-order quantity = X–300 units Y–500 units Re-order period = X–4 to 6 weeks Y–2 to 4 weeks You are required to calculate for each component :
(a) Reorder level
(b) Minimum level
(c) Maximum level
(d) Average stock level