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A host of forgein companies are in talks with the Indian government for selling B 150 , a tough , short- hual plane ideal for connectivity for smaaller towns which is lacking in India at present. (A) B 150 planers have not only low operationg costs than competing planes like Cezana but also a much better track record in terms of safety and efficiency. (B) The profit margin of road transport operators in the smaller towns connected by B 150 planes has been reduced substantially as a majority of people perfer air transport over other means of transpot. (C) Smaller towns, at persent , are batter connected by roads and railways as compared to flight services. (D) B 150 planes are capable of operating in sector where larger airline cannot fly due to challenging conditions such as mist, short runways, etc. Such planes can also double up as cargo planes and charter flights for the rich and the elite. (E) B 150 planes need to operate in the existing airports which are situated in bigger cities only and are poorly connected to the smaller cities. Which of the statements (A),(B),(C), (D) and (E) would favour the foregin companies bid to sell B 150 planes in India ?

A busines that doesn't grow dies, says Mr. Shah, the owner of Shah Marble Ltd. With glorious 36 months of its grand success having capital base of Rs 80 crore. Within a short span of time, the company could generate cash flow which not only covered fixed cash payment obligations but also create sufficient buffer. the company is on the gorwth path and new breed of consumers is eager to buy the Italian marble sold by Shah Marable Ltd. to meet the increasing demand, Mr.Shah decided to expand his business by acquiring a mine. this required an investment of Rs120 crore. to seek advice in this matter, he called his financial advisor Mr.Seth who advished him about the judicious mix of equity (40%) and Debt (60%) . Mr. Seth also suggested him to take loan from a financial institution as the cost of rasising funds form financial instituations is low. Though this will increase the financial risk but will also rasie the return to equity shareholders. He Also appraished him that issue of debt will not dilute the control of equity shareholders. at the same time, the interset on loan iws a tax deductible expense for computation of tax liability. After due deliberations with Mr. Seth, Mr.Shah decided to raise funds form a financial institution. (a) Identify and explain the concept of Financial Management as advished by Mr. Seth in the above situation. (b) State the four factors affecting the concept as identified in part (a) above which have been discussed between Mr. Shah and Mr. Seth.

Mr Sandhu worked as a manager in a company manufacturing stationery items for 10 years. Later he thought of starting his own business as he acquired the skills and expertise in past years. He started his own venture. He divides the organisation into six major departments Production, Purchase, Marketing, Legal, Human resource and Finance. After a month, he called upon the meeting of all the department heads in his office and told and production marketing and finance department managers to be very vigilant as their departments are critical to the success of the business. Short comings in Purchase, Personnel or Legal department would not affect much the success of business. Therefore, Mr Sandhu determined deviation tolerance limits for the critical departments. 1. Identify the two functions of management referred above. 2. Describe the relevent concept of the indetified functions.