II B.Tech I Semester Supplimentary Examinations, February 2008
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
( Common to Civil Engineering and Metallurgy & Material Technology)
1. State the Law of Demand. What are the various factors that determine the demand for a mobile phone?
2. What are the various methods of demand forecasting. Evaluate various survey based demand forecasting methods.
3. (a) What do you understand by ‘Law of increasing Returns?’ What causes make increasing returns operate?
(b) When do you notice ‘constant returns’ arising?
(c) Do diminishing returns apply only for agriculture or any other fields?
4. (a) What are the circumstances under which monopoly situation can emerge?
(b) ‘The monopolist always enjoys economic profits, rather than normal profits. Substantiate.
5. What are the objectives behind starting public sector enterprises in the country? To what extent have they fulfilled these objectives.
6. Enumerate briefly the major steps in capital budgeting.
7. The trial balance of Bharat is given below. Prepare the Trading and Profit & Loss A/c for the year ending 31st December, 2005 and Balance sheet as on that date.
Debit. Rs Credit. Rs.
Drawings and Capital 10,550 1, 19,400
Plant & Machinery 38,300
Sundry debtors and creditors 62,000 59,360
Purchases and Sales 2,56,590 3,56,430
Opening stock 95,300
Cash at bank 18,970
Interest on loan 14,370
Discounts allowed 4,870
Loan payable 79,630
Total 6,15,090 6,15,090
Closing stock was valued at Rs.90,000.
8. Discuss the importance of Ratio Analysis for inter firm and intra-firm comparison,
including circumstances responsible for its limitations, if any.