problem 1:

What do you understand by the term bill of exchange? Describe carefully the requisites for the bill of exchange to be valid.

[You are anticipated to provide exs of valid and invalid bills of exchange in your answer]

problem 2:

You have a close friend, Peter, who is a renowned marine biologist, and he wants to know how to interprete financial statements which are quite unfamiliar to him. Describe to him how to interprete the essential parts of a financial statement namely such as:-

(a) The balance sheet;

(b) The income statement;

(c) The cash flow statement;

(d) The statement of shareholders’ equity.

problem 3:

What do you understand by the Risk-Return relationship in field of finance and what is the significance of this relationship?

problem 4:

What do you understand by the phrase ‘Dividend Policy’? When are Dividends said to be immaterial?