Explore topic-wise InterviewSolutions in .

The impact of any stressful event depends largely on the way we interpret it.True

An individual is rejected in a job interview Rationalisation.

a. Social desirability -It is a tendency on the part of the respondent to endorse items in a socially desirable manner. 

b. Acquiescence is a tendency of the subject to agree with items/questions irrespective of their contents. It often appears in the form of saying ‘yes’ to items. 

In substance dependence, there is intense craving for the substance to which the person is addicted, and the person shows tolerance, withdrawal symptoms and compulsive drug taking. Tolerance means that the person has to use more and more of a substance to get the same effect. Withdrawal refers to physical symptoms that occur when a person stops or cuts down on the use of a psychoactive substance. 

In substance abuse, there are recurrent and significant adverse consequences related to the use of substances. People who regularly ingest drugs damage their family and social relationships, perform poorly at work, and create physical hazards.

a- Amount of information- Information that is given about the topic is just enough, neither too much nor too little.

 b. Rational or an Emotional appeal- giving a logical reason for the product or using emotions that shows caring, loving, and nurturing people. 

Some important actions to protect the environment from pollution are: 

a. Reducing air pollution by keeping vehicles in good condition, or changing to non-fuel driven vehicles, stopping the practice of smoking. 

b. Reducing noise pollution by ensuring that noise levels are low, for example, discouraging needless honking on the road, or making rules regarding noisy music at certain hours. 

c. Managing disposal of garbage sensibly, for example, by encouraging separation of biodegradable garbage from nonbiodegradable waste, or composting of kitchen waste. These practices need to be adopted both at home and in public places. Special attention has to be paid to the management of industrial and hospital waste. 

d. Planting trees and ensuring their care, keeping in mind that those plants and trees should not be planted that have adverse health effects. 

e. Saying ‘no’ to plastics in any form, thus reducing toxic wastes that pollute water, air and the soil. 

f. Reducing the non-biodegradable packaging of consumer goods. 

g. Laws related to construction (especially in urban areas) that violate optimal environmental design.

Listening requires a person to be attentive, patient, non-judgmental and yet have the capacity to analyse and respond. It is a process that involves reception, attention, assignment of meaning, and listener’s response to the message presented. 

Role of Culture in Listening -Asian cultures, such as India, emphasise on listening by being a silent communicator when receiving messages from seniors or elders. Buddhism, for instance, has a notion called ‘mindfulness’ which helps to develop longer attention spans and therefore, lead not only to better listening but also to sympathetic listening. However, in many cultures, such listening enhancing concepts are not present. 

a. Imagination starts developing in early childhood and expressed through physical activities. Variations in potential for creativityheredity and environment like motivation, commitment, family support, peer influences, training, and opportunity. 

b. Terman, 1920, all creative people are intelligent, may not be high IQ, But all gifted people may not be creative. Therefore, intelligence by itself does not ensure creativity. 

c. Creative tests to assess variations- open ended; freedom to use ones imagination and express it in original ways; divergent thinking; ability to see new relationships; guess causes and consequences; put things in a new perspective. 

d. Intelligence tests are closed ended; convergent thinking; assesses memory, logical reasoning, accuracy, perceptual ability, clear thinking. No scope for originality, spontaneity, imagination.

a. Direct techniques tend to rely on information directly obtained from the person who clearly knows that her/his personality is being assessed. In these situations, people generally become self- conscious and hesitate to share their private feelings, thoughts, and motivations. When they do so, they often do it in a socially desirable manner. 

b. Indirect methods of personality assessment uncover the unconscious part of our behavior like, Projective techniques. 

c. Projective techniques were developed to assess unconscious motives and feelings. These techniques are based on the assumption that a less structured or unstructured stimulus or situation will allow the individual to project her/his feelings, desires and needs on to that situation. Experts interpret these projections. 

d. Rorschach’s Ink Blot Test or any other.

 Revenue from Operations = 4,00,000 

Gross Loss = 10% of Rs.4,00,000 = Rs. 40,000 

Cost of Revenue from Operations = Revenue from Operations + Gross Loss 

 = Rs.4,00,000 + Rs. 40,000 

 = Rs. 4,40,000 

Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory 

 = Rs.4, 40,000 / Rs. 55,000 = 8 times.

Current Ratio = 3.5:1 

Quick Ratio = 2:1 

Let Current Liabilities = x 

Current Assets = 3.5x And 

Quick Assets = 2x 

Inventory = Current Assets – Quick Assets 

24,000 = 3.5 x – 2x 

24,000 = 1.5x 

x = Rs.16,000

Current Assets = 3.5x = 3.5 x Rs.16,000 = Rs.56,000.

Verification : Current Ratio = Current Assets : Current Liabilities

= Rs.56,000 : Rs.16,000

= 3.5 : 1

Quick Ratio = Quick Assets : Current Liabilities

= Rs.32,000 : Rs.16,000

= 2:1

(a) Head: Current Assets Sub head ; Inventories 

(b) While calculating Inventory Turnover Ratio it is not included in Inventories 

(c) Objectives - Assessing the ability of the enterprise to meet its short term and long term commitments, Assessing the earning capacity of the enterprise 

(d) Values: Transparency, Honesty, Abiding by law

It will be taken as purchase of Goodwill of Rs.1,50,000 and will be shown under Cash from Investing Activities as an outflow of cash.

a. A substantial number of entrepreneurs prefer to form a private company because of the following important privileges: 

(1) Only two members are required to form a private company. 

(2) Only two directors are required to constitute the quorum to validate the proceedings of the meetings. 

(3) Such company is not required to file prospectus or a statement in lieu of prospectus with the Registrar of Companies. 

(4) It can commence its business immediately after incorporation. 

(5) Holding of a statutory meeting or filing of a statutory report is required by a private company. 

(6) A non-member cannot inspect the copies of the profit and loss A/c filed with the Registrar. 

(7) Limit on payment of maximum managerial remuneration does not apply to a private company. 

(8) Restrictions on appointment and reappointment of managing director do not apply. 

(9) Maintaining of index of members is not required by a private company. 

(10) Directors of the private company need not have qualification shares. 

b. Company is called an artificial person because it is creation of law. It can hold property, sue and be sued but cannot perform other life functions. 

It has perpetual succession because coming and going of members does not affect the life of the company. 

It has a common seal or stamp under which the execution of all its business is done.

Lead time and Demand during lead time.

Sunk Cost cost refers to those cost which have already been incurred and cannot be altered by any decision in the future.

Advertising can be used by the hotel to reach, inform and persuade the tourists all over the country.

The purpose of packaging the tablets in a corrugated box is to facilitate storage, identification and transportation of tablets.

Salary paid to factory manager is an item of Factory Overhead

Aggregate of cost of goods sold and selling and distribution overheads is Total Cost

Conversion cost includes cost of converting Raw material into Finished goods

(b) Not relevant for decision making

Chronological.

Types of Preference Shares are :

(1) Cumulative Preference Shares—Cumulative preference shares are those shares on which dividend is accumulated till it is fully paid. This means i.e., if the company is not in a position to pay dividend to the preference shareholders in a particular year, it will be paid off in the next year. Preference shares are always cumulative unless and otherwise stated in Articles of Association. 

(2) Non-cumulative Preference Shares—Are those shares on which dividends does not accumulate i.e., if the company is not in a position to pay dividend to preference shareholders in a particular year, it will lapse and will not be carried forward to the next year.

(3) Participating Preference Shares—These prefe-rence shareholders are eligible to participate in surplus profits besides preferential dividends. These shareholders participate in the prosperity of the business. The surplus profit which remains after the dividend payment to equity shareholders, is distributed to preference shareholders.

(4) Non-participating preferencce shares—The preference shares are deemed to be non-participating, if there is no clear provision in Articles of Association. They are entitled to only fixed dividends as decided at the time of issue. 

(5) Convertible Preference Shares—These shareholders have right to convert their preference shares into equity shares after certain period of time.

(6) Non-convertible Preference Shares—These shares can't be converted into equity shares during its tenure. They remain as preference shares only until they are repaid or redeemed.

(7) Redeemable Preference Shares—Redeemable preference shares are those which are redeemed after particular period along with their dividend. The period of redemption of such shares is determined at the time of issue of shares itself.

(8) Irredeemable Preference Shares—These are such shares which are not redeemable or paid back during the life time of the company. It is paid only at the time of winding up of the company. As per the Companies Act (Amendment made in 1988), the company is prohibited to issue Irredeemable Preference Shares.

Specimen of a letter to the debentureholder informing him about redemption of debentures into shares.

                                                             ANKIT TEXTILES LIMITED

                                                             109, Janpath, Pune-411 002.                                   

Telegram : ANKIT

Web : [email protected]

Date : 16th January, 2015

Tel. No. (020) 242 1607

Fax No. (020) 242 1689 

Ref. No. ATL/RD/24/2014

To

Brijesh Naik

282, Karuna Apartment,

Gamdevi, Mumbai-400 007

Sub. : Redemption of 15% Debentures issued in April 2009.

  Dear Sir

In the financial year 2009-10, our company had issued to the public 20,000, 15% Redeemable debentures of ` 150 each (amounting to ` 30,00,000) for the period of 6 years. As per the terms of issue, the period of the above stated debentures expires on 31^st March, 2015. The Board of Directors in the Board meeting held on 2nd January, 2015, has passed a resolution for the redemption of the debentures. You are holding 100, 15% Redeemable debentures of ` 150 each, issued by our company and maturing on 31st March, 2015.

You are requested to fill in the enclosed debenture redemption form and submit the same along with the original debenture certificate, duly discharged to the company's office on or before 1^st March, 2015.

On receiving the duly filled in redemption form along with debenture certificate, the crossed cheque for the amount due will be sent to you, so as to reach you before 31^st March, 2015.

Thanking you,

Yours faithfully

For Ankit Textiles Limit

Sd./.....

(Secretary)

Encl. : Blank printed Debenture Redemption Form

Factors affecting requirement of fixed capital :

(i) Nature of Business—The nature of business plays a vital role in determining fixed capital requirement. The big business enterprises providing public utility services, manufacturer and industrial enterprise need large fixed investments. On the other hand, trading concerns require less fixed capital as they do not need large funds for land, building, plants and machinery.

(ii) Size of Business—Larger the size of business, higher is the need of fixed capital. Hence, size of a firm either in terms of its assets and scale of operations affects the fixed capital requirements.

(iii) Growth and Expansion—In order to manage growing production and turnover, a firm with higher growth prospects will require large amount of fixed capital.

(iv) Stage of Development of Business—The requirement of fixed capital for a new established organisation is more than that of an existing or established organisation.

(v) Business Cycle—Where there is boom period in an economy, the organisation needs to invest more in fixed assets so as to increase its production capacity. However, in recession the organisation avoids huge projects, and hence, it may not require more of Fixed Capital.

When price of foreign currency in terms of domestic currency rises in the foreign exchange market it is termed as depreciation of domestic currency. Any depreciation of home currency results in increase in exports of the country since it increases the global competitiveness of the goods i.e., foreign countries can purchase more quantity of goods and services with the same amount of foreign currency from the domestic country. As a result exports of the domestic country rise. For example, if the value of rupee in terms of US dollar falls say ₹ 60 to ₹ 65 per dollar, Indian exporter will begin to earn an extra ₹ 5 per dollar. This works as an incentive to the exporter.

Debenture is a document issued by a company as an evidence of debt to its holder, usually arising out of loan and mostly secured by charge on assets of issuing company.

A person who purchases debenture of a company is called a debentureholder.

Debentureholders are not the owners like shareholders but are creditors of the company.

Fund contributed by debentureholders to company is borrowed funds to company received against assets. Debentureholders get fixed rate of interest irrespective of loss or profit to the company as it is compulsory to be paid as per law.

They do not enjoy voting rights in the management of the company.

Debenture holders being creditors of the company have to be repayed after a specified time period on its maturity.

(a) Financial assistance to flood victims: 

No, this will not be included in the national income as it is a transfer income.

(b) Profits earned by the branches of a foreign bank in India: 

No, the profits will not be a part of the national income of India. They are subtracted from the domestic income to get the national income. 

(c) Salaries of Indians working in the American Embassy in India: 

Yes, the salaries will be a part of the national income as they are factor income from abroad.

(a) NNP_MP= Compensation of Employees + Rent + Profit + Interest + Mixed income of selfemployed - Net Factor Income to Abroad + Net Indirect Taxes

NNP_MP = 3,000 + 600 + 1,000 + 700 + 8,000 - 60 + 500

NNP_MP= 13,740

(b) Gross National Disposable Income = NNP_MP+ Depreciation - Net current transfers to aborad

=13,740 + 200 - 20 = Rs.13,920

The equilibrium level of output will be 4 units. This is because at this point the two conditions of equilibrium (using MR-MC approach) are met. This can be seen as follows:

We are given the Total Revenue (TR) and Total Cost. From here, we can find Marginal Revenue (MR) and Marginal Cost (MC), as given in the following schedule.

Revenue deficit refers to the excess of total revenue expenditure over total revenue receipts.

Revenue deficit = Total revenue expenditure - Total revenue receipts

GNP_MT= Compensation of employees + Profit + Rent + Interest + Mixed income of self employed + Depreciation + Net factor income from abroad + Net indirect taxes + Government final consumption expenditure 

= 2500 + 700 + 400 + 350 + 7500 + 70 + 50 + 150 + 3000

= 14,720

Net National Disposable Income = GNP_MP- Depreciation - Net current transfer to abroad

= 14,720 -70 -100

= 1.4,550

The capital receipts which do not create the burden of debt for future is called non- debt-creating capital receipts. Example are:

(a) Recovery of loan

(b) Proceeds from sale of public sector units.

Stock variables: whose magnitude is measured at a particular point of time are called stock variables. For example, in business accounts, a magnitude of capital employed by a firm is measured on the last day of the financial year, say, capital as on 31st March 2015. This is the position of all the variables entering into the balance sheet, i.e. all assets and liabilities. By this criterion, capital, wealth, inventory, etc. are all stock variables.

Flow variables: whose magnitude is measured over a period of time are called flow variables. For example, when we talk of income, we say income during the month, or during the year. Similarly, we describe the magnitudes of the variables like output, expenditure, investment, intermediate costs, net change in stocks, etc.

Real gross domestic product may be defined as the money value of goods and services at base year’s prices produced in*the accounting year within domestic territory of a country. 

Thus, Real gross domestic product = Output X Base year’s prices. 

Nominal gross domestic product may by defined as the money value of goods and services at current year’s prices produced in the accounting year within domestic territory of a country. Thus, Nominal gross domestic product = Output x Current year’s prices. 

For example, assume 2013 as the base year. Output of tea is 2,000 tones in 2013 as well as 2017. But, the prices are ₹ 1,000 and ₹ 1,500 per ton respectively in 2013 and 2017. Nominal GDP in 2017 will be ₹ 30,00,000 (2,000 x 1,500) while real GDP in 2017 will be ₹ 20,00,000 (2,000 x 1,000). 

Real GDP is a good indicator of economic welfare because it shows real increase in the income over a period of time. Real GDP neutralises the effect of changes in prices over a period of time. Nominal GDP becomes inflated due to inflation (increase in prices) and does not reflect the true growth of national income.

(1) The financial market contributes towards the nation's economic growth and development. This statement is True.

Reasons :

(a) The place where people and institutions borrow money are brought together with those having surplus funds, is called a Financial Market.

(b) The financial market contributes to national growth by facilitating continuous flow of surplus fund to business enterprises (sick and deficit units) through its allocative function ensuring higher rate of return to the savers/household by investing the scarce resources in the enterprises having higher productivity, increasing the rate of capital formation.

(c) The financial market contributes a lot to the development of the entreprenurial class by financing their business requirements. It obtain funds from individual households private and public sector units, Central govt. etc. and supply these funds to those business units who need it for productive purpose.

(d) The components of Financial Market is money market and capital market. It helps in accelerating the rate of industrial and economic development of the country. As a result, the standard of living and social welfare goes up.

Thus, Financial market contributes towards the nations growth and development.

(2) The bond holders are owners of the company. This statement is False.

Reasons :

(i) Bond is an interest bearing certificate issued by a Government, Semi-Government., or business firms to raise capital.

(ii) The bondholders are entitled to get a fixed rate of interest on the amount invested in bonds. It is paid compulsorily by the company even if profits are not earned.

(iii) The holders of such debt security becomes the creditors of the company and they have no right to attend the general meetings and participate in the management through voting rights.

(iv) Since bondholders are non-owners, they are not entitled to get dividend which is paid only to the owners of the company i.e., shareholders. Hence, bondholders are not the owners of the company.

(3) Depositor's approval is must for renewal of deposit. This statement is True.

Reasons :

(i) On maturity of deposits, a depositor may apply for renewal of the deposition, the renewal of deposits, the old deposit receipt is cancelled and in that place new deposit receipt is issued without repaying deposit amount.

(ii) Usually, depositors expect safety and regular income in the form of interest on their investments. If they are satisfied with the above conditions, they get their deposits renewed for a further period.

(iii) A company on its own cannot renew the deposits without approaching deposit holders. However, a company is authorised to renew its deposits only if the proposal to renew, is approved and sanctioned by BOD in Board meetings.

(iv) Thus, if the depositors are willing and interested, the company can allow the renewal of deposits. Hence, depositors approval is must for renewal of deposits.

(4) A Share certificate is a bearer document. This statement is False.

Reasons :

(i) A Share Ceritifcate is a registered document of title of shares issued by the company under its common seal, specifying the number of shares held by a member is a bonafide holder of the shares mentioned therein.

(ii) The particulars mentioned in the share certificate namely the name of the shareholder, the number of shares with their distinctive numbers, the amount paid on shares etc. are recorded in the Register of Members. Hence, a share certificate is a registered document of title of shares. It is not a Bearer Document.

(iii) A bearer document is the one on which the name of the owner is not stated and it can be transferred by mere delivery.

(iv) A share certificate is not such a bearer document. Being a registered document, it indicates the ownership of shares. A shareholder cannot transfer this document to another person without following the procedure of transfer laid down in Articles of Association of the company. Hence, a share certificate is not a bearer document.

(5) Debentures are never redeemed by the company. This statement is False.

Reasons :

(i) Debenture is a document issued by a company under its company seal and signed by the Director, acknowledging the loan accepted by the company from a party under certain terms and conditions stated there in.

(ii) Debenture capital represents borrowed funds, which means, it has to be repaid after the expiry of certain period of time, with a fixed rate of return.

(iii) On the basis of redeemability there are two types of debentures :

(a) Redeemable Debentures—Which are repaid by the company on the expiry of specified time

(b) Irredeemable Debentures—These debentures are repaid by the company according to its convenance.

Therefore, it can't be said that debentures are never redeemed by the company.

Provisions regarding unclaimed/unpaid dividend : 

(1) The dividend which has not been paid to the shareholders within 30 days of its declaration is called 'Unpaid Dividend.' The amount of final dividend and interim dividend may remain unpaid/unclaimed. This dividend is transferred in a separate account called 'Unpaid Dividend Account of...........Company Limited/Company Private Limited in any scheduled bank within 7 days after the expiry of 30 days of declaration of dividend.

(2) Penal Interest—If a company fails to deposit the amount of unclaimed dividend into a separate bank account within stipulated time period, it is liable to pay interest on the amount not transferred at the rate of 12% p.a. Such amount of interest is paid to the members who have not been paid dividends in proportion to their dues. 

(3) Transfer to Investor's Education and Protection Fund—According to the Provision of Section 205 (A) of the Companies Act, 1956, if the amount of unpaid dividend remains in the account for 7 years from the date of transfer to this account, a company is required to transfer such amount together with interest due on it to 'Investors' Education and Protection Fund, as established by the Central Government.

(4) Payment of Unpaid/Unclaimed Dividend—Any person entitled to any amount transferred in IEPF is required to make an application for refund to the authority or committee appointed by the Central Govt.

(5) Penalty—If any company commits default in compliance of above requirements, every officer of such company responsible for this lapse shall be punishable with fine up to ` 5,000 per day during which the default continues.

Global Depository Receipt :

Introduction—Globalisation has facilitated Indian Companies to raise international finance by issuing shares to NRIs. But listing of shares in foreign stock exchanges is complicated, rigid and lengthy process. Avoiding such complications, an Indian company can get its shares listed on Foreign Stock Exchanges, using GDRs and ADRs.

Meaning—GDR and ADR are Dollar/Euro denominated instruments traded on foreign stock exchange, containing fixed number of shares. The 'Depository Banks' issue GDRs and ADRs to investors against Indian companies shares. Their holders get same rights like Indian shareholders. If the depository receipt is traded in USA, it is called ADR and if the depository receipt is traded in any country other than USA it is called GDR. 

Advantages—They are the means of investment for NRI's and foreign nationals wanting to invest money in India.

Balance of payments is defined as the statement of accounts of a country’s inflows and outflows of foreign exchange in a fiscal year. 

Components of Current Account are as under : 

1. Visibles refer to the merchandise/goods exported from or imported by a country. Exports which results inflows for the country are placed on the credit side whereas imports are placed on the debit side as they result into outflow of foreign exchange from the country. 

2. Invisibles refer to the different types of services and transfers that take place between nations. They give rise to monetary receipts and payments for the nation.

Initial Public Offer : 

(a) An Initial Public Offer is a type of public offering where shares are sold by the newly established company to the general public for the first time.

(b) The public company makes an appeal to the general public to subscribe its shares by issuing a Prospectus.

(c) The prospectus contains detailed information about the company its projects and shares. It also includes an application form which is supplied free of charge.

(d) Investors use this application form to apply for the shares of company.

(e) However, for raising capital by issuing shares, a public company has to comply with the specified provisions of the Companies Act and SEBI's guidelines.

Low cost lunch for an adolescent boy: 

(i) Seasonal vegetable 

(ii) Moong daal 

(iii) Chapati 

(iv) Chach 

(v) Seasonal salad

Importance of Financial Planning :

(a) Elimination of waste—Through Financial Planning, several factors such as change in government policy on tax, fluctuations in interests rate etc can be efficiently anticipated and duly tackled. If there is lack of proper Financial Planning, the organisation may suffer huge irreversible and uncompensable losses due to wasteful expenses.

(b) Co-ordination among different business functions—Various business functions like production, distribution, marketing and human resources will hamper if they are not properly supported by effective financial planning. Financial Planning prescribes policies, procedures etc. defining how the funds should be used. Thus, there is uniformity in financial matters across the business functions which brings coordination among these.

(c) Dynamism—Business organisation work in dynamic environment full of shocks and surprises. Thus, through effective financial planning organisation prepares itself in advance to face various environmental shocks and surprises promptly.

(d) Communication—Proper and effective Financial Planning facilitates the finance manager to communicate the various aspects of financial plan to the different departmental heads. This further helps to eliminate the wastage of time and effort, and effective implementation of financial plan brings growth of financial resources and increases goodwill of the organisation.

(e) Decision making—Financial Planning helps a firm to take appropriate and timely decisions to achieve the desired goals. Thus, to implement any scheme or any project, there must be a budgetary provision in the Financial Planning.

(f) Integration—Financial Planning is prepared and completed only when there is proper communication, consultation and cooperation of all the departments of the organisation. This in turn helps in integration of various organisational activities and promotes various activities, team spirit among all the executives of the company. 

(g) Futuristic—Financial Planning is done considering not only the present but also the future developments. It tries to link the present with future. This futuristic component of Financial Planning assists in advance programming.

Placements of decorations should be at compatible angles, prints on different parts should align with those on the bodies, Hem of sleeves and hem of bottom should be well aligned, any other.

(i) Add more nutrient like Protein, Calcium, Iron 

(ii) Snacks provided should be nutritious. 

(iii) Oily food should be avoided. 

(iv) Overeating or skipping meals should be discouraged

Share Warrant :

(a) Meaning—A share warrant is a bearer document of title to shares, issued by a public company, under its common seal, duly stamped and signed by directors and secretary of company.

(b) Issuing Authority—Only the public limited companies can issue share warrants.

(c) Approval—The approval of the Central Government is required to issue share warrants. 

(d) Nature of Shares—A share warrant can be issued only in respect of fully paid up shares of a public limited company.

(e) Transfer—As share warrant is a bearer document on which the name of the owner is not stated, so it can be transferred by mere delivery without following any legal procedure as in case of share certificate.

Safe, cool potable water, saves gas consumption, saves time,