Financial Management interview questions – page 3

Define non-fund based lending?

What do you understand by venture capital? What is it's importance?

Define Accelerated Cash Collection?

What are the provisions of buy back of shares as per Companies Act, 1956?

Explain Accelerated Cash Collection?

What are the consequences of over investment & under investment in inventory?

What functions does the Merchant bank perform when a company wants to raise funds from intermediaries?

What are the different sources available for financing the receivables?

What is secured premium notes?

Can a company make public issue of equity shares if partly paid shares are not fully paid up?

What are commercial papers? Who can issue commercial papers?

What factors are considered for final selection of avenue for investing cash balance?

What are the basic documents a person requires to open an account?

What is net present value? What are its acceptance rules, their advantages and disadvantages?

Who decides the denomination of shares in the public issue by a company?

Differentiate between Compare Component cost and Composite cost?

Explain Earnings Per Share (EPS). How is it calculated? What is it's significance?

What is letter of credit? What are the different parties involved in a LC?

Define Modigliani- Miller (M and M) approach?

What are the different types of venture capital financing?

Explain Retained Earnings/ Ploughed back profits.

Compare Registered vs. Bearer debentures.

Explain cost of capital and its importance.

Explain Operating Leverage. How is it computed? What does high/low operating leverage indicate?

How does Companies Act protect the interest of Debenture holders?

Define undercapitalization? What are the causes of undercapitalization?

What is a term loan agreement? What are its various clauses?

Explain Debt Equity Ratio. What are its components? What does it indicate?

Is stock considered as a liquid asset?

Which ratio is considered as safe margin of solvency?