Solved Assignments for
Rs.150 each
08627023490
Fall-2013
Master of
Business Administration - MBA Semester 4
MF0017–Merchant
Banking and Financial Services-4 Credits
(Book ID:
B1815)
Assignment
(60 Marks)
Note: Answers
for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Explain the concept of merchant
banking. Give a small introduction on book building and write about the methods
and guidelines for book building.
Answer. Merchant Banking is a combination of Banking and
consultancy services. It provides consultancy to its clients for financial,
marketing, managerial and legal matters. Consultancy means to provide advice,
guidance and service for a fee. It helps a businessman to start a business. It
helps to raise (collect) finance. It helps to expand and modernize the
business. It helps in restructuring of a business. It helps to revive sick
business units. It also helps companies to register,
Q2. Explain the whole concept of
issue management which includes pre-issue and post issue management.
Answer. The phrase “issue management” was coined by Howard Chase in April of 1976.
Throughout the 1950s and 1960s in his role as a corporate PR officer, Chase was
fascinated with the increasing influence that outside forces exerted on
corporations. Chase was convinced that there exists within the company a group
of professionals with the network of relationships in place that could alert
the organization early on that an issue was brewing. The resulting lead time
could enable the company to better respond when trouble hit.
Q3. Financial services are of several
kinds. Financial services are divided into two extensive categories. Explain in
detail both the categories of financial services.
Answer. Fund Based Services:
Ø Working Capital financing.
A firm's
working capital is the money available to meet current obligations (those due
in less than a year) and to acquire earning assets. China-trust Commercial Bank
offers corporations Working Capital Finance to meet their operating expenses,
purchasing inventory, receivables financing, either by direct funding or by
issuing letter of credit.
Key Benefits:-
1. Funded
facilities, i.e. the bank provides funding and assistance to actually purchase
business assets or to meet business expenses.
Q4. Give the difference between Bank
Vs Depository. Explain the functions performed by depository.
Answer. Bank: A bank is a financial institution
and a financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly by loaning or indirectly through
capital markets. A bank links together customers that have capital deficits and
customers with capital surpluses.
The place
where a deposit is placed and kept, e.g., a bank, savings and loan institution,
credit union, or trust company. A place where something is deposited or stored
as for safekeeping or
Q5. Give the introduction of leasing
with an example. Explain all the four types of leasing.
Answer. Leasing is a process by which a firm can
obtain the use of a certain fixed assets for which it must pay a series of
contractual, periodic, tax deductible payments.
The lessee
is the receiver of the services or the assets under the lease contract and the
lessor is the owner of the assets. The relationship between the tenant and the
landlord is called a tenancy, and can be for a fixed or an indefinite period of
time (called the term of the lease). The consideration for the lease is called
rent. A gross lease is when the tenant pays a flat rental
Q6. Write about the concept of securitization
and its features. Explain the process of securitization of debts and its
advantages.
Answer. Securitization is the process of taking an illiquid
asset, or group of assets, and through financial engineering, transforming them
into a security. The process through which an issuer creates a financial
instrument by combining other financial assets and then marketing different
tiers
Solved
assignments for Rs.150 each
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