JNTU Kakinada B-Tech 2-2 RT22014 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS R13 April 2018 Question Paper

Code No: RT22014
II B. Tech II Semester Supplementary Examinations, April-2018
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (Com. to CE, EIE)Time: 3 hours Max. Marks: 70
Note: 1. Question Paper consists of two parts (Part-A and Part-B) 2. Answer ALL the question in Part-A
3. Answer any THREE Questions from Part-B
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PART ?A
1. a) Explain the nature of Managerial Economics. (3M)
b) Describe the salient features of Cobb-Douglas Production. (4M)
c) Explain the conditions of monopoly. (4M)
d) Explain the salient features of Private Limited Joint Stock Company. (4M)
e) Describe the importance accounting and financial analysis. (3M)
f) Explain the meaning of Capital and Capitalization. (4M)
PART -B
2. a) What is demand? And explain its types, law of demand and its exceptions. (8M)
b) What is elasticity demand? And explain its types and measurement. (8M)
3. a) Briefly explain the law of variable proportions. (8M)
b) Explain any four cost concepts. (8M)
4. a) Explain the salient features of Oligopoly and its Kinked demand curve. (8M)
b) What is market Skimming Pricing? And explain the flat rate and transaction
based pricing. (8M)
5. a) Briefly explain the importance public enterprises and their forms. (10M)
b) Briefly explain the salient features of business cycles. (6M)
6. a) Explain the salient features of ratio analysis. What are the Limitations of Ratio
analyses? (4M)
b) Given the following data relating to firm X and firm Y in the hosiery business,
calculate which firm is handling its debtors and creditors position efficiently?
Substantiate your answer.
Details Firm X Firm Y
Debtors (1.1.2013) 8,000 12,000
Debtors (31.12.2013) 16,000 14,000
Creditors (1.1.2013) 32,000 28,000
Sales (75% credit) 2,50,000 3,60,000
Purchases (60% credit) 1,50,000 2,25,000
Furniture and fixtures 25,000 35,000
Cash 5,000 8,000
Creditors (31.12.2013) 26,000 42,000
(12M)
1 of 2
SET – 1
R13

Code No: RT22014
II B. Tech II Semester Supplementary Examinations, April-2018
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (Com. to CE, EIE)Time: 3 hours Max. Marks: 70
Note: 1. Question Paper consists of two parts (Part-A and Part-B) 2. Answer ALL the question in Part-A
3. Answer any THREE Questions from Part-B
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PART ?A
1. a) Explain the nature of Managerial Economics. (3M)
b) Describe the salient features of Cobb-Douglas Production. (4M)
c) Explain the conditions of monopoly. (4M)
d) Explain the salient features of Private Limited Joint Stock Company. (4M)
e) Describe the importance accounting and financial analysis. (3M)
f) Explain the meaning of Capital and Capitalization. (4M)
PART -B
2. a) What is demand? And explain its types, law of demand and its exceptions. (8M)
b) What is elasticity demand? And explain its types and measurement. (8M)
3. a) Briefly explain the law of variable proportions. (8M)
b) Explain any four cost concepts. (8M)
4. a) Explain the salient features of Oligopoly and its Kinked demand curve. (8M)
b) What is market Skimming Pricing? And explain the flat rate and transaction
based pricing. (8M)
5. a) Briefly explain the importance public enterprises and their forms. (10M)
b) Briefly explain the salient features of business cycles. (6M)
6. a) Explain the salient features of ratio analysis. What are the Limitations of Ratio
analyses? (4M)
b) Given the following data relating to firm X and firm Y in the hosiery business,
calculate which firm is handling its debtors and creditors position efficiently?
Substantiate your answer.
Details Firm X Firm Y
Debtors (1.1.2013) 8,000 12,000
Debtors (31.12.2013) 16,000 14,000
Creditors (1.1.2013) 32,000 28,000
Sales (75% credit) 2,50,000 3,60,000
Purchases (60% credit) 1,50,000 2,25,000
Furniture and fixtures 25,000 35,000
Cash 5,000 8,000
Creditors (31.12.2013) 26,000 42,000
(12M)
1 of 2
SET – 1
R13

Code No: RT22014
7. a) Explain the meaning and need of capital budgeting. (6M)
b) Calculate the average rate of return for project A and B from the following:
Details Project A Project B
Investment Rs. 30,000 Rs. 48,000
Expected life 6 years 8 years (No salvage value)PROJECT NET INCOME (AFTER DEPRECIATION AND TAXES)Years Project A Project B
1 4,000 6,000
2 3,000 6,000
3 3,000 4,000
4 2,000 2,000
5 — 2,000
Total 12,000 20,000 (10M)

2 of 2
SET – 1
R13