1. What is the difference between net income and cash generation of a company? In the

long run, would the sum of net income be equal to the sum of cash generation? Why are

are financial Managers interested in cash flows rather than accounting for profit?

2. How do the following fields of finance differ? Discuss briefly.

(a) Public finance and Business finance

(b) Portfolio management and Financial institution management

3. Discuss the reasons for business establishments in holding cash and marketable

securities?

4. What are the factors to be considered in selecting the source of short-term financing to

be availed by business firms?

5. What is inflation? What are the cost or adverse effects of inflation?