1. What is meant by ‘Usage-Rate’ in Inventory Control?(2008)
  2. Rahul wants to start an amusement park near Vishakhapattanam. This will require an investment of Rs. 50  lakhs. Name the financial institution which Rahul should approach for financing this venture.(2015)
  3. Geeta Ram, an orange grower from Nagpur, wants to start a small juice producing factory using the oranges  grown by him as well as by his fellow villagers. Name the financial institutions he should contact for starting  his factory.(2015)


  1. Explain the concept of ‘circulating capital’ with the help of an example.(2008)
  2. State the advantages of ‘Inventory Control’.(2008)
  3. Why is Return on Investment deemed as a yardstick for the performance of an enterprise? Explain with  suitable example.(2009)
  4. ‘For the smooth and orderly functioning of corporate sector in a free market economy, stock exchanges are indispensable because of different roles played by them for different groups’. Explain the importance of stock exchange to investors in the light of this statement.(2015)
  5. ‘The Fancy Store’ a ready-made garments retail shop sold 8,000 shirts at Rs.400 per shirt during the year ended 31st March, 2014. Cost of placing an order and receiving goods is Rs.2000 per order. Inventory holding cost is Rs.500 per year. Calculate the ‘Economic Order Quantity’ for ‘The Fancy Store’.(2015)
  6. Angel investor and venture capital are two sources of raising finance for an entrepreneur. Explain the concept of both the sources stating one distinguishing feature of each. (2015)
  7. ‘The Shop’ a ready-made garments retail shop sold 5,000 shirts at Rs.200 per shirt during the year ended 31st March, 2014. Cost of placing an order and receiving goods is Rs.1000 per order. Inventory holding cost is Rs.250 per year. Calculate the ‘Economic Order Quantity’ for ‘The Shop’.(2015)


  1. ‘Nomy India Ltd.’ are the producers of different sizes of televisions. From the information given below, calculate the ‘Break-Even Quantity’ of the T.V. sets manufactured per month.


Size of T.V.    Unit Selling Price      Unit variable cost      Fixed expense

24”                         Rs.5000                      Rs. 2000               Rs.4000

32”                         Rs.10,000                   Rs.7000                Rs.6000

36”                         Rs.15,000                   Rs.12,000             Rs.8000

42”                         Rs.20,000                   Rs.14,000             Rs.9000                                        (2015)


2. ‘Good wash’ are manufacturers of different sizes of fully automatic washing machines marked as ‘small’, ‘medium’, ‘large’ and ‘industrial’. From the information given below, calculate the ‘Break-Even Quantity’ of the washing machines manufactured per month.


Size of machine. Unit Selling Price      Unit variable cost   Fixed exp

Small                     Rs.10,000                   Rs. 3000                 Rs.35,000

Medium                Rs.15,000                   Rs.8000                  Rs.35,000

Large                     Rs.20,000                   Rs.13,000               Rs.70,000

Industrial              Rs.35,000                   Rs.20,000               Rs.1,50,000                                   (2015)



  1. Raj singh has started a restaurant on a National highway in the name of ‘DesiDhaba’ by spending Rs.25,00,000. He invested Rs.10,00,000 of his own and took a loan of Rs.15,00,000 from  Dena Bank @ 6% per annum. His monthly sales revenue is Rs.17,00,000 and cost of goods sold is  Rs.9,00,000. He pays monthly salary of Rs.3,00,000 to his employees. The tax rate is 25%.

You are required to calculate:

(a) Return on investment and

(b) Return on Equity for Raj Singh                                                                                             (2015)


2. Karan has started a restaurant on a National highway in the name of ‘Apna Dhaba’ by spending Rs.20,00,000. He invested Rs.8,00,000 of his own and took a loan of Rs.12,00,000 from SBI @ 6% per annum. His monthly sales revenue is Rs.12,00,000 and cost of goods sold is Rs.7,00,000. He pays monthly salary of Rs.2,00,000 to his employees. The tax rate is 25%.

You are required to calculate:

  • Return on Investment and
  • Return on Equity for Karan                                                                                                  (2015)

About booksbysonamsachdeva

Hello Readers! I am Sonam Sachdeva and I am an Author, Lecturer, and yes, now a Blogger. I have a rich experience of 4 years in teaching core Management subjects to more than 1000 students. I have done MBA and BBA from Guru Gobind Singh Indraprastha University, PGDIBO from IGNOU and ACM (HRM) from AIMA. I have also qualified UGC NET & JRF. I am presently empanelled as an Assistant Professor at Delhi University, New Delhi. I have attended various National and International Conferences, Seminars and Workshops. I have written several research papers, case studies and book reviews which have been published in reputed International and National journals. I was a rank holder in my post-graduation and graduation and was a scholar at school. Moreover, I have been an active recruiter in the institutions I served. I am a member of All India Management Association and Delhi Management Association. Teaching is my passion and I hope that through this blog, I will help you become expert in some of the most demanding subjects in Management. I hope that you will like the stuff. For any queries, write at: Enjoy reading... Sonam Sachdeva

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