MANAGEMENT OF FUNDS annamali-university (Code: au 19)

1. “The finance manager does not allocate the funds in an effective manner in hisorganisation”. Discuss the consequences faced by the various department in the organisation.
2. “The fund investment process involves a series of activities starting from the policy formulation”. Does this statement is applicable for newly promoted company. Substantiate your views.
3. In deciding to raise financing for a business is there an optimal mix of debt and equity? If yes what is the trade off that let us determine this optimal mix? If not why not?
4. In a organisation the production manager suggest to go for hire purchasing of a machinery. But finance manager suggesting to go to leasing. As a consult what idea you will give to production manager and finance managers. Highlight your suggestion by giving appropriate justification.