Q1: Firm A and Firm B belong to the same industry. Both the firms made sales of Rs. 500,000 each. Cost of goods sold for Firm A is Rs. 200,000 while that of Firm B is Rs. 250,000. Operating expenditure of Firm A and Firm B are Rs. 75000 and Rs. 50000 respectively. Tax rate is 25%. Which firm displays a better Gross Profit Margin?

Q2: Mr. Vivek argues that Financial Management deals with only procurement and safe custody of funds. What is your view on Mr. Viveks opinion on decision areas of Financial Management? Justify.