JNTU Exam Papers – B -Tech I Sem, February 2008 Managerial economics and financial analysis
JNTU Exam Papers
II B.Tech I Semester Supplimentary Examinations, February 2008
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
( Common to Civil Engineering and Metallurgy & Material Technology)
1. Explain the role of a Managerial Economist in a Business firm.
2. What are the needs for demand forecasting. Explain the various steps involved in demand forecasting.
3. (a) Distinguish between the following:
i. Average cost and Marginal cost
ii. Explicit cost and implicit cost
iii. Short run Average cost and Long run Average cost
iv. Variable cost and semi variable cost [4 × 2]
(b) Diagrammatically represent the relationship between Average Fixed Cost, Average variable cost, Unit cost and Marginal cost.
4. (a) What do you understand by ‘Price discrimination’ and on what basis price can be discriminated?
(b) Do you notice any benefit of price discrimination.
5. (a) What are the different types of business organizations?
(b) What are the differences between proprietary and partnership business organizations?
6. Are there any considerations other than profitability to be made in managerial decisions about investment proposals? Explain them.
7. Explain the following concepts and illustrate their treatment with imaginary data.
(b) Prepaid expenses
(c) Reserve for bad and doubtful debts
(d) Income received in advance.
8. (a) From the following information, calculate
i. Debt Equity ratio
ii. Current ratio
Debentures 1,40,000 Bank balance 30,000
Long term loans 70,000 Sundry Debtors 70,000
General reserve 40,000
Bills payable 14,000
Share capital 1,20,000
(b) Calculate Interest Coverage ratio from the following information.
Net profit after deducting interest and taxes 6,00,000
12% Debentures of the face value of 15,00,000
Amount provided towards taxation 1,20,000