Degree July - December Bctswana Upen University Sessional Structured Timed Assessment BFM731 Financial Management SECTION A-SHORT ANSWER TYPE QUESTION. [50 MARKS] Answer ALL questions in this section. 1. Financial management and accounting activities of a business are closely related and are not easily distinguishable". Explain the two basic differences between finance and accounting. (8 marks) 2. Distinguish between the following with the use of relevant examples. (a) Money market vs Capital market (b) Primary market vs secondary market (c) Spot market vs Futures market (4 marks) (4 marks) (4 marks) 3. The following ratios of a business are given to you. You are requested to interpret and do the financial judgement based on your understanding. (10 marks) Current ratio 564 880/351 100 = 1.6 times Profit margin 102 500 / 2 900 000 = 3.5% Stock turn-over 1 750 000/135 230 = 12.94 times 4. Explain three motives of holding cash by a business. (6 marks) 5. Describe five limitations of the economic order quantity. (5 marks) 6. Baboki Ltd are planning to invest in a new project which will cost an initial P375 000 and they expect the following cash. BOU 2021 Page 2 of 6 Degree July - December Bctswana Upen University Sessional Structured Timed Assessment BFM731 Financial Management SECTION A-SHORT ANSWER TYPE QUESTION. [50 MARKS] Answer ALL questions in this section. 1. Financial management and accounting activities of a business are closely related and are not easily distinguishable". Explain the two basic differences between finance and accounting. (8 marks) 2. Distinguish between the following with the use of relevant examples. (a) Money market vs Capital market (b) Primary market vs secondary market (c) Spot market vs Futures market (4 marks) (4 marks) (4 marks) 3. The following ratios of a business are given to you. You are requested to interpret and do the financial judgement based on your understanding. (10 marks) Current ratio 564 880/351 100 = 1.6 times Profit margin 102 500 / 2 900 000 = 3.5% Stock turn-over 1 750 000/135 230 = 12.94 times 4. Explain three motives of holding cash by a business. (6 marks) 5. Describe five limitations of the economic order quantity. (5 marks) 6. Baboki Ltd are planning to invest in a new project which will cost an initial P375 000 and they expect the following cash. BOU 2021 Page 2 of 6