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Hbf 2305: Financial Management In The Public Sector Question Paper

Hbf 2305: Financial Management In The Public Sector

Course:Bachelor Of Commerce

Institution: Kirinyaga University question papers

Exam Year:2017

KIRINYAGA UNIVERSITY
UNIVERSITY EXAMINATION 2016/2017
YEAR11 SEMESTER 11 EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
HBF 2305: FINANCIAL MANAGEMENT IN THE PUBLIC SECTOR

INSTRUCTION
Answer question one [compulsory] and any other two questions

QUESTION ONE (30MARKS)
a)“The public sector is important to a significant degree”.In relation to this explain the major function of public finance. 6mks
b)Public goods can be classified into five major categories.Identify and explain each of this categories. 5mks
c)Consider a four-year project whose initial outlay is sh 100,000 and it is expected to generate the following cash inflows,
YEAR 1 2 3 4
Cash inflows 50 40 30 20
Sh’000’
The cost of capital is 12%
Required.Determine the net present value (NPV) Using the cost of capital given. 5mks
d) Discuss the constraints of raising public funds in Kenya. 14mks

QUESTION TWO
a.The public sector can accumulate much dept which is not the case in the private sector.Explain 5mks
b.Clearly any role of a budget. 10mks
c.In relation to management of the revenue collection program, explain;
i.Compliance rate
ii.Control over collections

QUESTION THREE
a)Experts in the field of economics and public finance argue that an effective tax system should possess certain principles.In relation to the above, Zero base explain six know principles. 12mks
b)Explain eight key features of financial management in public sector. 8mks

QUESTION FOUR
a.Discuss the consequences of Kenya’s mounting public dept.
b.Zero base budgeting (ZBB) analysis focus on the three type of measures which are key indicators used to measure ZBB performance and results.Explain 8mks

QUESTION FIVE
“corruption has been in existence since the beginning of mankind but with little attention.In developing countries like Kenya many people did not know about it until 1990”.The rise in attention to corruption among the public has been brought about by several factors.Discuss. 20mks

Hbf 2305: Financial Management In The Public Sector Question Paper

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