Chapter Covered -Introduction -Strategies Introduction Supply chain management means that management of chains of supplies for value addition. Almost all the firms try to make supply chains as a core competence to get a competitive edge. The firm is influenced by supply chain management policies on firm’s performance; the participants in the supply chain management […]
Unit 9: Planning demand and supply in supply chain
Course Covered -Characteristics and role of forecasting -Role of IT in forecasting -Role of aggregate planning with problems in supply chain -Role of IT in aggregate Planning -Inventory Planning with known and uncertain demand Characteristics and Role of Forecasting Role of Forecasting in Supply Chain Demand forecasts form the basis of all supply chain planning. […]
Chapter 11: Working Capital Management
Short Questions Answers 1. What do you understand by working capital cash flow cycle? How do you measure it? How can it be shortened? Firm’s liquidity has two major aspects: ongoing liquidity and protective liquidity. Ongoing liquidity refers to the inflow and outflows of cash through the firm as the product acquisition, production, sales, payment […]
Chapter 9: Capital Structure and Leverage
Short Questions Answers Write short notes on: i) Implications of business and financial risks Business risk is the riskiness on a firm’s stock provided that the firm has used no debt capital. It is the risk inherent in the operation of the business. A firm’s business risk arises because of uncertainty associated with projections of […]
Chapter 8: The Basics of Capital Budgeting
Short Question Answer 1. Briefly explain relative merits and demerits of different methods of evaluating capital budgeting projects. Capital budgeting projects are evaluated using non-discounted and discounted cash flow methods. Non discounted cash flow method includes the ranking criteria such as payback period and accounting rate of return, whereas the non-discounted cash flow method includes […]
Chapter 7: Cost of Capital
Short Question Answer 1. What is the significance of marginal cost of capital in decision making? Explain. Marginal cost of capital is the cost of raising an additional rupee of capital. In other words, it is the cost incurred for raising incremental funds. Thus, the weighted average cost of incremental capital is known as the […]
Chapter 6: Stock Valuation
Short Question Answer 1. What are the characteristic features of preference share? Preferred stock is a hybrid security issued by companies. It is called hybrid security because it has some features common to debt and others similar to common stock. The rate of dividend to be paid on preferred stock is fixed and it generally […]
Chapter 10: Internal Analysis
Very Short Question Answer 1. Point out the areas of internal analysis. The areas of internal analysis are: Production and operations Marketing Finance Human resource 2. What do you mean by internal analysis? Internal analysis is an assessment of strengths and weaknesses of an organization. Organizations must exploit and expand on their strengths, as well […]
Chapter 9: Establishing Company Direction
Very Short Question Answer 1. Define vision and mission. Vision can be defined as the description of what an organization wants to be in future. It provides direction to the organization. Through vision, organization can focus on achieving the desired goals. The vision statement of McDonald’s is to be the world’s best quick service restaurant. […]
Chapter 8: Strategic Management
Very Short Answer Question 1. State two characteristics of strategy. Strategy is a long term action plan for achieving sustainable competitive advantage. Its two important characteristics are: Long term direction: Strategy provides long term direction to an organization. Competitive advantage: Strategic decisions always aim at achieving competitive advantage. 2. Define strategy. Strategy is an action […]