Financial Management interview questions

What is underwriting? What role does it play?

For how many days are public issues of shares kept open?

Explain: bills of materials and its functions?

Define Balanced Capitalization?

Define Inter-corporate Deposits (ICDs)? Tell their main characteristic features?

Who can invest in commercial papers?

Explain the term working capital. What is the primary objective of working capital management?

What are the various choices available for a company to choose its dividend policy?

List out the advantages of a LC to an exporter?

Define Capital Rationing? What is the normal procedure followed for Capital Rationing?

What external factors determine the dividend policy?

What is the nature of a commercial paper?

Explain minimum subscription. What is the minimum subscription required for a company to utilize funds?

What methods are used to ascertain the risk in capital budgeting decisions?

What are the motives of a company behind holding the cash?

Define capital structure? What are the principles of capital structure management?

What "rights issue" do the shareholders of a company have under Companies Act, 1956?

Define credit analysis. What are the sources through which a company gets to know about a customer s credit worthiness?

List the advantages of a LC to an importer?

Define working capital cycle?

What is fund based lending? What are the various forms in which fund based lending may be made by banks?

Define Factoring? What is the procedure for factoring?

Explain Equity Warrants. Call warrants, Put warrants

Tell the advantages and disadvantages of commercial papers?

What functions do the registrars to the issue perform?

What are the principles of cash management?

What factors affect working capital requirement?

What does capital market mean? How does the company raise funds in capital market?

Explain: Perpetual inventory system and its aims.

Who decides rate of interest for debentures?