NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY/FEBRUARY 2013 EXAMINATION

Course Code:               BHM 302.       

Credit Unit:                 2.

Course Title:               Business Finance II

Time Allowed:            2 Hours.

Instructions:                1. Attempt question number one (1) and any other two (2).

                                    2. Question number 1 is compulsory and carries 30 marks   while the other 2 questions carry 20 marks each.

                                         3. Present all your points in coherent and orderly manner

Question 1 (Compulsory)

1. Explain the term Finance.
2. Explain the term Loan.
3. What is Collateral Security? Identify 5 forms of collateral security.
4. Mention and explain 5 sources of short-term funds for financing business operations.

Question 2

1. Enumerate the functions that are inherent in financial planning.
2. What are the two main finance functions in a business operation?

Question 3

1. What is financial planning
2. Identify the objectives of financial planning.
3. Mention and explain 4 sources of medium-term funds for financing business operations.

Question 4

1. Enumerate and discuss traditional sources of funding business operations.
2. Identify and explain the 3 main types of managerial decisions in finance function.

Question 5

1. Explain the term Capital.
2. Mention and discuss the factors affecting working capital requirements in operations.