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BUSINESS & FINANCE

Time allowed 1 hours


Total Marks 100
[N.B The figures in the margin indicate full marks. Question must be answered in English. Examiner will
take account of the quality of language and of the manner in which the answers are presented.
Different parts, if any, of the same question must be answered in one place in order of sequence]
Marks
1. (a) Define business ethics.
(b) What are the acceptable minimum business ethics?
2. (a) A Ltd. has a capital of Tk. 10,00,000; its turnover is 3 times of the capital and its net profit
margin on the sales is 6 percent. What is the return on investment?
(b) R Ltd. sales goods on cash as well as on credit (though not on deferred installment terms). The
following particulars are extracted from the books of accounts for the current year end:

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TK.
100,000
20,000
7,000
11,000
1,000
10,000

Total gross sales


Cash sales (included in above)
Sales returns
Total debtors
Provision for doubtful debts
Total creditors
Calculate the average collection period.
3.

Write short notes on the following:


(a) Direct cost.
(b) Internal Control.
(c) Economic Value Addition.
(d) Duopoly.

4.

Bengal Corporations financial statements appear as follows:


Bengal Corporation
Balance Sheet
Dec,31, 2010
ASSETS
Current assets:
Cash
Marketable securities
Inventory
Total Current assets
Plant and machinery
Total assets

TK.
1,00,000
2,00,000
300,000

TK.
6,00,000
5,00,000
11,00,000

LIABILITIES AND SHARE HOLDERS EQUITY


Liabilities:
Current liabilities
Long term liabilities
Total liabilities

TK.
2,00,000
1,00,000

TK.
3,00,000
[Please turn over]

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Shareholders Equity
TK.
Ordinary shares, Tk. 1 per share
100,000 ordinary shares
100,000
Premium on shares
500,000
Retained earnings
200,000
Total Shareholders equity
Total liabilities and Shareholders equity
Bengal Corporation
Income Statement
For the year ended Dec, 31, 2010

800,000
11,00,000

Tk.
10,000,000
6,000,000
4,000,000
1,000,000
3,000,000
1,500,000
1,500,000

Net sales
Cost of goods sold
Gross Profit
Operating expenses
Income before taxes
Income taxes
Net income

Additional information includes total dividend of Tk. 6,00,000 for 2010 and Tk. 250,000 of
inventory as of December 31,2009.
Compute the following ratios:
(a) Inventory turnover
(b) debt/equity ratio
(c) earnings per share
(d) dividend per share
(e) dividend payout

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5.

(a)
(b)
(c)
(d)

What is marketing mix?


Describe the various components (known as four Ps) of marketing mix.
Describe the various stages of product life cycle.
What factors influence the supply?

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6.

(a)
(b)
(c)
(d)

Why do business and managers need financial information?


Describe the qualities of good financial information.
What measures should be taken to ensure the security of information?
What is the difference between data and information?

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7.

Define equilibrium price and describe the factors that influence supply.

8.

What is price elasticity of demand? Write the effects when demand inelasticity of a product is
above zero.
What is the difference between risk and uncertainty?

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9.

The End