JNTU previous Papers-BE-IV-Sem-Managerial Economics And Financial Analysis-Nov-2008

JNTU II B.Tech I Semester Supplimentary Examinations, November 2008

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS

( Common to Civil Engineering and Metallurgy & Material Technology)

SET-2

 

 

1. Managerial Economics is the application of Economic Theory to business management. Discuss.

 

2. What are the needs for demand forecasting. Explain the various steps involved in demand forecasting.

 

3. (a) What are Isoquants? Explain the chief characteristics of Isoquants?

(b) What do you understand by Least Cost Combination of inputs and how can it be achieved.

 

4. (a) What are the causes for the emergence of Monopoly?

(b) Elaborate how price output decisions can be taken by a monopolist.

 

5. Write short note on the following.

(a) Limited Liability

(b) Public and Private Companies

(c) Memorandum of Association

(d) Govt. Company.

 

6. Following is the information in respect of the three projects A,B and C.

 

 

 

Item                                             A                    B                 C

Initial Investment ( in Rs)           60,000/-          2150/-       4,25,000/-

Annual Cash Flow (in Rs)          12,000/-          1500/-       2,51,000/-

Life Period (in years)                    15                  3                     20

 

If the cost of capital for all the three projects is 10%, rank them using NPV method

and simple pay back method.

 

7. The trail balance of Anil is given below, prepare the Trading Account, Profit &

Loss Account for the year ending 31st December 2005 and Balance sheet as on that date

 

 

.                                              Debit Rs.       Credit Rs.

Drawings and capital              72,000           6,00,000

Opening stock                      2,05,000

Purchases and sales            6,80,000          14,05,000

Carriage inwards                     15,000

Debtors and creditors           2,35,000          1,43,000

Cash                                       39,000

Salaries                                2,53,000

Bills payable                                                   42,000

Insurance                             1,12,000

Machinery                            3,00,000

Wages                                 2,15,000

Commission received                                    10,000

Trade expenses                     69,000

Freight inwards                        5,000

22,00,000         22,00,000

 

Adjustments

(a) Closing stock was valued at Rs.3,50,000

(b) Provide a reserve for bad and doubtful debts @ 2% on debtors.

 

8. (a) What are the parties that make use of financial statements for their decision

making?

(b) How do they apply the same? Elaborate.

 

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