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Principles Of Finance  Question Paper

Principles Of Finance  

Course:Bachelor Of Commerce

Institution: Maasai Mara University question papers

Exam Year:2017



FINANCE
ANSWER QUESTION ONE AND ANY OTHER THREE QUESTIONS.
1
a)Small businesses in the developing countries find it difficult to finance their activities using debt finance. Discuss various possible solutions to this problems. (10mks)
b)Industries in Kenya consider debt finance as the best source of finance for the companies to run its activities thus urging for the total shift to debt finance. Discuss five advantages of debt as a source of finance.
c) Define the following terms.
Bond
Warrant.
QUESTION TWO
Discuss various types of lease financing as a source of debt finance. (15mks)
QUESTION THREE
Discuss the rules of central bank in the national development. (15mks)
QUESTION FOUR
Discuss various factors to consider when investing in the stocks exchange market. (15mks)
QUESTION FIVE
Differentiate the following terms as you understand them.
Stocks and bond.
Brokers and dealers
Promissory note and bill of exchange.
Bonus issue and offer for subscription.
Commercial bank and saving bank.






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