Scribd
Upload
3 views2 pages

Assignment of 20 Long Questions:: Subject Business Finance PAPER CODE:F010201T

The document outlines an assignment consisting of 20 long questions related to Business Finance, covering topics such as capital structure, cost of capital, financial risks, investment evaluation methods, financial ratios, and the impact of corporate governance and ethical implications in finance. Each question prompts a detailed exploration of key financial concepts and their application in real-world business scenarios. This assignment aims to deepen understanding of financial decision-making and strategic management in a business context.

Uploaded by

sumit kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
3 views2 pages

Assignment of 20 Long Questions:: Subject Business Finance PAPER CODE:F010201T

The document outlines an assignment consisting of 20 long questions related to Business Finance, covering topics such as capital structure, cost of capital, financial risks, investment evaluation methods, financial ratios, and the impact of corporate governance and ethical implications in finance. Each question prompts a detailed exploration of key financial concepts and their application in real-world business scenarios. This assignment aims to deepen understanding of financial decision-making and strategic management in a business context.

Uploaded by

sumit kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

SHAKUNTALA KRISHNA INSTITUTE OF TECHNOLOGY KD- 64

ASSIGNMENT OF 20 LONG QUESTIONS

SUBJECT: BUSINESS FINANCE

PAPER CODE:F010201T

1. What are the key differences between equity financing and debt financing, and
how should a business determine the optimal capital structure?
2. How does the cost of capital impact a company's investment decisions, and what
factors influence the Weighted Average Cost of Capital (WACC)?
3. Discuss the trade-off theory and pecking order theory of capital structure. How do
companies apply these theories in real-world financing decisions?
4. What role does financial leverage play in a company’s risk and return profile, and
how can businesses balance leverage to maximize shareholder value?
5. Explain the Modigliani-Miller theorem and its implications for corporate finance
decision-making.

6. What are the primary financial risks businesses face (e.g., market risk, credit risk,
operational risk), and how can they mitigate these risks through hedging and
diversification?
7. How does a business evaluate the profitability and feasibility of an investment
project using methods like Net Present Value (NPV), Internal Rate of Return (IRR),
and Payback Period?
8. What are the advantages and disadvantages of using real options analysis in
business investment decisions?
9. How do changes in interest rates and inflation affect business investment
strategies and financial planning?
10. What are the key differences between systematic and unsystematic risk, and how
can a business structure its portfolio to manage them effectively?

11. How do businesses use financial ratios (e.g., liquidity, profitability, solvency,
efficiency) to assess financial health and operational efficiency?
12. Explain the significance of cash flow statements in financial decision-making and
how they differ from income statements and balance sheets.
13. What are the implications of earnings management and creative accounting on
financial statement integrity, and how can investors detect such practices?
14. How do businesses apply break-even analysis to determine the minimum sales
required for profitability?
15. Why is working capital management critical for business success, and what
strategies can companies use to optimize their working capital?
16. How does corporate governance influence financial decision-making, and what
role does transparency play in investor confidence?
17. What are the ethical implications of insider trading, fraudulent financial
reporting, and corporate scandals in financial markets?
18. How can businesses implement sustainable financial practices and integrate
Environmental, Social, and Governance (ESG) factors into financial planning?

19. How do foreign exchange rates and currency risk impact multinational
businesses, and what hedging strategies can firms use to manage exchange rate
fluctuations?
20. What are the effects of global financial crises and economic downturns on
business finance, and what strategies can companies use to maintain financial
stability during uncertain times?

You might also like