- JOSEPH COLLEGE OF COMMERCE (Autonomous)
END SEMESTER EXAMINATION – MARCH/APRIL 2014
B.Com (TRAVEL & Tourism) – IV Semester
FINANCIAL MARKETS AND SERVICES
Duration: 3 Hours Max. Marks: 100
Section – A
- Answer all the questions. Each carries two marks: (10×2 =20)
- List out the components of money market.
- What do you mean by pre-emptive shares?
- Write a short note on stock indices.
- What is loan syndication?
- Distinguish between “With recourse factoring “and “Without recourse factoring”.
- Mention any two features of venture capital.
- State the classification of shares by BSE.
- What do you understand by the term Export factoring?
- Write a short note on CRISIL.
- State any two differences between financial lease and operating lease.
Section – B
- Answer any four Each carries 5 marks. (4 x 5 =20)
- Discuss the various kinds of financial derivatives and bring out their features briefly?
- Explain Tripartite Leasing & Sale and Lease Back.
- Ram has recently got promoted as assistant manager and he has received Rs.5,00,000 as bonus. As you are his financial consultant, you are expected to suggest few financial instruments where Mr.Ram can invest in? Mention any five innovative financial instruments?
- Explain the importance of Venture leasing?
- What is Forfaiting? Explain the mechanism of forfaiting with the help of a diagram?
- Briefly explain the benefits of credit rating?
Section – C
- Answer any three Each carries 15 marks:. (3 x 15 = 45)
- Write short notes on the following:
- SEBI b. BSE c. OTCEI
- Explain different types of credit rating and the steps involved in credit rating process?
- Define financial service industry and discuss the various services rendered by it?
- You are a successful entrepreneur and you had been called by Mr.Rahul, Assistant professor of St. Joseph’s college of commerce to give a guest lecture to 2 TT students to inspire them to be a successful entrepreneurs. You are asked to share your experience of approaching a venture capitalist and various stages involved in venture capital financing?
- Explain the different types of factoring and their significance?
Section – D
- Compulsory question – Case study (1 x 15 = 15)
22.
Mr. Rajesh, who is 34 years old had worked for IT industry for 6 years and had saved Rs.15 lakhs. In 2008 he invested all his savings and started up a small garment manufacturing business with 20 employees. In the initial few years he was not able to make profits because most of his business transactions were on credit basis and 40% of his debtors turned out to be defaulters, to overcome the working capital crunchhe decided to sell their trade debts to a financing company that provide factoring service.
In 2012 he made profits of Rs.50 lakhs per year with the efforts of efficient employees and eminent fashion designers. At the end of 2012 he decided to take his business to the next level by exporting his garments to other countries. He realised the need for big production place and high technological equipment’s in the manufacturing process. He listed down the important requirements in the expansion of his business i.e. land, building and high technology equipment’s.
Now he is in a dilemma whether to purchase the land and then build the factory or to directly lease the building and equipment’s as he is not sure about the success of his new venture.
In this situation he approaches a merchant banker who could explain him better the various factors that influence buying and leasing decision.
Questions:
- You being a merchant banker who provides consultancy service, you are expected to suggest Mr. Ramesh by explaining the factors those influencing lease vs buying decisions.
- If you suggest Mr. Ramesh to lease the equipments and the building, explain the type of lease that you would suggest? Or defend your suggestion of purchasing the assets with strong reasons?
(5+10)
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