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Fin 5013 Microfinance Theories And Practice Weekend Question Paper
Fin 5013 Microfinance Theories And Practice Weekend
Course:Master Of Business Administration In Corporate Management
Institution: Kca University question papers
Exam Year:2014
UNIVERSITY EXAMINATIONS: 2013/2014
EXAMINATION FOR THE MASTERS OF BUSINESS ADMINISTRATION
(MBA) IN CORPORATE MANAGEMENT
FIN 5013 MICROFINANCE THEORIES AND PRACTICE WEEKEND
DATE: AUGUST, 2014
TIME: 3 HOURS
INSTRUCTIONS: Answer Question One and Any Other Three Questions
QUESTION ONE (31 MARKS)
Read the case below and answer questions that follow
POVERTY
In a far away land called Abuti, in a remote rural area on the outskirts of Cai, there are 13 villages.
These villages were once known for widespread unemployment, poor living conditions, and drug
abuse. It seemed like there was no way up, and economic opportunity was just a whisper of a dream.
The economic disparity between villages across the country is increasingly noticeable, with some
being quasi-abandoned by the government, as money is being poured into the development of
neighboring villages.
Barely half the village has access to water, and villagers have been begging the municipality to help
with water and electricity issues but they are concentrating more on other villages, the villages of the
rich . The poor live in huts with limited access to clean water, electricity, and even in some cases no
access to sewage disposal.
A high rate of unemployment, reaching almost 99 percent is noticeable. Those who have an income
work on their farms, but barely any of his villagers have insurance. The only ones who do are those
working for the army. Furthermore, 97 percent of the villagers are not economically independent as
some are forced to be indebted to others and some resort to begging on the street when they don''t find
jobs. The lucky ones have families in nearby cities or in foreign countries that send them money.
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“Many of us don’t even know how to read and write. Women in the village are forced to rely on their
husbands to read for them, whether it is the news or books. They feel they have been deprived of a
basic right that would otherwise allow them to be more independent Those who have an income work
on their farms, but barely any of his villagers have insurance. The only ones who do are those working
for the army. Furthermore, 97 percent of the villagers are not economically independent as some are
forced to be indebted to others and some resort to begging on the street when they don''t find jobs. The
lucky ones have families in nearby cities or in foreign countries that send them money.
Half of our women don’t have access to hospitals and most deliver at home. In their misery they say
“had there been more awareness on the importance of education around here maybe that would have
increased our job opportunities, we could have been secretaries or at least distracted ourselves with
reading.”
Required:
a) Define poverty
b) In the light of the above story what would be your recommendation on how to liberate the
villages from the state of poverty
c)
(10 Marks)
To what extent do you think micro finance can empower the villagers especially women?
Explain
d)
(5 Marks)
10 marks
Will the government funding alone help improve the live hood of this villagers?
(6 Marks)
QUESTION TWO (23 MARKS)
a) Outline the millennium development goals
(6 Marks)
b) Explain the contribution of microfinance to attainment of millennium goals.
(7 Marks)
c) Explain the concept of Microfinance and discuss the dominant Microfinance Models in Kenya
(10 Marks)
QUESTION THREE (23 MARKS)
a)
Clearly indicate the units of measure when carrying out an impact study and in each case
highlight advantages and disadvantages of each
b)
(8 Marks)
With reference to a group that you are familiar with, explain how microfinance has impacted on
the lives of the group members.
c)
(9 Marks)
With the help of a diagram explain the conventional model of the impact chain. (6 Marks)
2
QUESTION FOUR (23 MARKS)
Strategic planning is the process of formulating and implementing decisions about a microfinance’s
future direction making. Clearly describe the formulation and implementations processes. (23 Marks)
QUESTION FIVE (23 MARKS)
a)
Define and explain the relevance of the following accounting concepts
going concern (2 Marks)
prudence (2 Marks)
objectivity (2 Marks)
relevance (2 Marks)
b) What is the significance of preparing a cash budget in a business?
(7 Marks)
c) Define delinquency and explain how an MFI can reduce delinquency of its loan portfolio
(8 Marks)
QUESTION SIX (23 MARKS)
a)
The Deposit Taking Micro Finance A-ct specify the following three different tiers of micro
finance institutions and who should regulate and supervise them:
1. First tier
2. Second tier
3. Third tier
Clearly explain each tier as approaches to regulation’
b)
(12 Marks)
Discuss how appropriate the Central Bank of Kenya is as a regulator of microfinance in Kenya.
(11 Marks)
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