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Diploma Course In Management Section Ii Question Paper
Diploma Course In Management Section Ii
Course:
Institution: Kenya Institute Of Management (Kim) question papers
Exam Year:2009
1)Your company does not have a qualified finance manager to head its finance department as the Ceo of the company the board of directors have asked you to draft a board paper entitled recruitment of a finance manager for their considerations and approval.Summarise the main points which you would include in your board paper under the following headlines
a)managerial finance functions (4 marks)
b)Duties and responsibilities (6 marks)
c)Academic qualifications and experience (6 marks)
d)relevant subject specialization (4 marks)
2a)Explain the utility(usefulness) of CVP or break even analysis(5 marks)
b)A firm has provided you with the following information for last year
i)PV ratio-20%
ii)Margin of safety (Mos)ratio-30%
iii)fixed costs-sh700,000
iv)Sales volume-200,000 units
required:
calculate
a)Break even sales(in value) (3 marks)
b)Selling pricer per unit (3 marks)
c)Variable costs (3 marks)
d)Net profit or the year(3 marks)
e)Sales value when target profit is sh 500000 (3 marks)
3)Explain the following capital management concept
i)Operating cycle of a manufacturing firm(4 marks)
ii)Gross and net working capital(2 marks)
iii)Approaches to financing current asset(6 marks)
4)ABC Ltd has extracted the following figures from its year 2006 books of accounts
Stock of raw materials sh 60,000
Work in progress sh20,000
Finished goods stock sh 100,000
Accounts receivables sh 170,000
Annual credit sales sh 2,400,000
Cost of production sh 1,250,000
Annual cost of sales sh 1,000,000
Accounts payables sh 140,000
Annual purchase of raw materials sh 600,000
Required:
Working capital cycle (assume 1 year =365 days)
5a)What factors affect a firms dividend policy (6 marks)
b)Explain four andvantages and four disadvantages of issuing equity capital to a company(8 marks)
c)Explain the main functions of the Nairobi stock exchange(NSE)6 marks)
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