STUDY MATERIALS FOR (BNU) Bangalore North University

VI Semester B.Com. Examination, July/August 2024 (NEP Scheme) (Freshers) COMMERCE Indian Accounting Standards - 2 Time: 2½ Hours Max. Marks: 60 Instruction: Answers to be written completely in English or Kannada only. SECTION-A Answer any five sub-questions. Each question carries two marks. 1. a) Define a wholly owned subsidiary. A: A wholly owned subsidiary is one whose (subsidiary company) all the shares (100%) are held by the parent company. b) What do you mean by non-controlling interest ? A: The parent company may not purchase all the shares of its subsidiary. When some of the shares of subsidiary company are held by outsiders, their interest in the subsidiary company is known as Non-Controlling Interest. c) What are share warrants? A: Share warrant is a contractual document issued by a company. It gives the warrant holder the right or the option to purchase or sell the company’s shares at a specific predetermined price. d) What is a sale and lease back agreement ? A: In a ...

UNIT 5 PORTFOLIO MANAGEMENT INTRODUCTION Portfolio management refers to the process of managing an individual's or institution's investment portfolio in order to achieve specific financial objectives while considering risk tolerance, investment constraints, and market conditions it involves the selection, allocation, and monitoring of a mix of assets to achieve the desired return with minimal risk. Meaning of Portfolio Management Portfolio management is managing a client's investment by selecting the right investment tools in the right proportion; it focuses on maintaining a balance of risk and helping clients maximize their earnings over a period. A portfolio manager can manage stocks, bonds, real estate, mutual funds and other financial assets, these managers focus on matching goals to outcomes. Some of the objectives portfolio management are, • Ensuring capital appreciation • Optimizing risk • Allocating resources optimally • Ensuring flexibility of portfolio •...