Explore topic-wise InterviewSolutions in Current Affairs.

The primary deficit is defined as the difference between current government spending on goods and services and total current revenue from all types of taxes net of transfer payments. It excludes interest payments on debt.

• primary deficit = government spending – tax revenues

The fiscal deficit is defined as excess of total government expenditure (including loans net of recovery) over total government receipts (excluding borrowings). It measures the total borrowing requirements of the government.

• Fiscal deficit = primary deficit + interest payments on borrowings.

Fiscal deficit indicates total government borrowing requirements including interest whereas primary deficit indicates total government borrowing requirements excluding interest payments.

The correct answer is Janata Party.

• On June 25 in 1975, former Prime Minister of India, Indira Gandhi, took the most controversial decision and imposed an Emergency across the country.
• The Emergency remained intact for 21 months and changed the dynamics of the country’s political system.
• The Emergency was imposed on 25 June 1975, its foundation was laid on June 12 that year.
• After the national emergency was imposed, political leaders of opposition parties including Lal Krishna Advani, Atal Bihari Vajpayee, Morarji Desai, and Jayaprakash Narayan were sent to jail.
• On March 21, 1977, the Emergency ended.
• The Janata Party and its allies came to power at the center by defeating Congress Party in 1977.
• Janata Party and its allies won 330 out of 542 seats in the Lok Sabha. Janata Party itself won 295 seats.

• Railway Strike of 1974 was led by George Fernandes. Its main demand was related to bonuses and service conditions.
• The magazines like ‘Seminar’ and ‘Mainstream’ chose to close down after the declaration of emergency in 1975.

The correct answer is Gujarat.

• Vansda National Park is located in the Navsari district, Gujarat.
• The total area of the park is about 23.99 Km².
• The park got its name Vansda as the area was privately owned by the Maharaja of Vansda.
• It was established as a National park in the year in 1979.
• The area having groves of “Katas” bamboo owes its beauty to no felling of trees since 1952.

1.) India Today 

2.) ABP News 

3.) Aaj Tak (Any Two)

The point at which this indifference curve and the budget constraint touch is called the optimum. It relates preferences to consumption expenditures and to consumer demand curves. Goods and services purchased by a consumer that provides the highest level of utility possible is the optimal choice.

Yes, I agree with the statement. Economic reforms did not benefit the agriculture and the agricultural growth rate has been decelerating.

(i) Public investment in agriculture sector has been reduced in the reform period due to which irrigation, power, roads, market linkages and agricultural research have suffered.

(ii) Further, the removal of fertiliser subsidy has led to increase in the cost of production which has severely affected the small and marginal farmers.

1. sun 

2. seen 

3. quite 

4. last 

5. grown

1. (c) uninterested

2. (b) depletion

3. (a) infamous

4. (c) exact

5. (b) rent

6. (a) juvenile

The eukaryotic cell can be divided into two main portions: the cell membrane that separates the intracellular space from the outer space physically delimiting the cell; the cytoplasm, the interior portion filled with cytosol (the aqueous fluid inside the cell); and the nucleus, the membrane-delimited an internal region that contains the genetic material. 

Animal cells (cells of living beings of the kingdom Animalia) have an interior a membrane that delimits a cell nucleus and thus they are eukaryotic cells; in these cells the genetic material is located within the nucleus. Bacterial cells (cells of living beings of the kingdom Monera) do not have organized cellular nuclei and so they are prokaryotic cells and they're genetic material is found dispersed in the cytosol.

Correct option: e) Numerical

URL Stands for Uniform Resource Locator.

For commercial website

TRUE . Because it is a statement of expected results expressed in numerical terms .

Indian Economy was opened up on July , 1991 .

Reserve Bank of India (RBI) is the Organization that regulates the working of Banks in India.

Fredrick Winslow Taylor is known as the Father of Scientific Management . 

Internship Training is one of the Method of On-the-Job Training and A Trainee undergoing Internship Training is known as an “Intern” .

Factor affecting the choice of capital structure

Advertising is the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by sponsors to promote some goods or service.

Merits of Advertising: 

1. Mass Reach: Advertising is a medium through which a large number of people can be reached over vast geographical area.

2. Enhancing customer satisfaction and confidence: Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.

Limitations of advertising: 

1. Less Forceful: Advertising is an impersonal form of communication. It is less forceful than personal selling as there is no compulsion on the prospects to pay attention to the message.

2. Lack of feedback: The evaluation of the effectiveness of the advertising message is very difficult as there is no immediate feedback mechanism of the message that is delivered.

The factors affecting the working capital requirement of a business are as follows: 

a. Nature of Business: The basic nature of business influences the amount of working capital required. A trading organization usually needs a smaller amount of working capital compared to a manufacturing organization. Similarly, service industries which usually do not have to maintain inventory require less working capital.

b. Scale of Operations: for organizations which operate on a higher scale of operation, the quantum of inventory and debtors required is generally high. Such organizations, therefore, require large amount of working capital as compared to the organizations which operate on a lower scale.

c. Business Cycle: Different phases of business cycles affect the requirement of working capital by a firm. In case of a boom, the sales and production are likely to be larger and therefore larger amount of working capital is required. Working capital requirement will be less during the period of depression as the sales and production will be small.

d. Seasonal Factors: Most business have some seasonality in their operations. In peak season, because of higher level of activity, larger amount of working capital is required. When the level of activity is less, working capital requirement will be less.

Man needs oxygen to live. A man cuts trees for his needs but one day he realises that there is no good air to survive. The man needs oxygen cylinder. He pays the fees of cutting down trees.

Securities Exchange Board of India .

Formal Organisation refers to the organization structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organizational goals. 

Advantages of Formal Organisation include: 

1. It is easier to fix responsibility since mutual relationships are clearly defined. 

2. There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort. 

3. Unity of command is maintained through an established chain of command. 

4. It leads to effective accomplishment of goals by providing framework for the operations to be performed and ensuring that each employee knows the role he has to play. 

5. It provides stability to the organization. This is because behavior of employees can be fairly predicted since there are specific rules to guide them. 

Disadvantages of Formal Organisation: 

1. The formal communication may lead to procedural delays as the established chain of command has to be followed which increases the time taken for decision making. 

2. Poor organization practices may not provide adequate recognition to creative talent, since it does not allow any deviations from rigidly laid down policies. 

3. It is difficult to understand alumna relationships in an enterprise as it places more emphasis on structure and work. Hence, the formal organization does not provide a complete picture of how an organization works.

• Cash flow position 
• Interest Coverage Ratio 
• Debt Service Coverage Ratio 
• Return on Investment 
• Cost of debt 
• Tax rate 
• Cost of Equity 
• Flotation Costs 
• Risk Considerations 
• Flexibility

1. The little green chilli was very hot. 

2. Many brave sailors tried to find a sea route to India. 

3. The big brown dog barked at the children.

4. The most common spice used today is the red chilli pepper. 

5. The long mud path led to a beautiful lake.

Following are the steps involved in Staffing Process: 

1. Estimating the manpower requirements/ Man Power Planning

2. Recruitment 

3. Selection 

4. Placement and Orientation 

5. Training and Development 

6. Performance appraisal(Evaluation) 

7. Promotion and Career Planning 

8. Compensation [Wage and Salary administration} 

1. Manpower Planning: It is the estimation of human resources required by an organization. Its main focus will be on getting right number of qualified people at the right time. While estimating the manpower requirement, the management generally keeps in mind, the available infrastructure including the technology, production schedule, market fluctuation, demand forecasts, etc. 

2. Recruitment: It is the process of finding the candidates for employment and motivating them to apply for the jobs in the organization. 

3. Selection: It is a process of choosing the best candidate from the large pool of applicants. It aims at finding the right person for the right job. 

4. Placement: It is a process of assigning job to the selected candidates. Assigning jobs to employees may involve a new job or different job. it also includes assignment of job to a new employee, transfer, promotion and also demotion of existing employee. Placement involves striking a fit between the requirements of a job and the qualifications of a candidate. 

5. Orientation: It is a process of introducing the selected employee to other employees and familiarizing him with the rules and policies of the organization. This process will help the new entrants to know about their superiors, subordinates, colleagues and about the organization. 

6. Training: Training is the process which is under taken to increase the knowledge and skills of an employee to perform the present job accurately. 

7. Development: It refers to the process of not only building up the skill and abilities for specific purpose, but also the overall competence of managerial executives to undertake more difficult and challenging tasks. Development refers to the training of managers and executives. 

8.Performance appraisal (evaluation): It is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. It is concerned with determining the differences among the employees, working in the organization. It also determines an employee’s worth to the organization. 

9. Promotion and career planning: Promotion is a term usually used for the upward movement of an employee to a higher position with greater responsibilities and higher pay. Promotion requires more knowledge, experience and skills to perform the job. 

10. Compensation: Workers work for wages or salary which can be otherwise known as compensation. The term compensation comprises of cash payments related to wages and salary, bonus, share in the profit, pension etc. A properly developed compensation system enables an employer to attract, obtain, retain and motivate people of required intelligence and qualification in the organization. 

Conclusion: A competent staffing process obtains the most competent person to the organization. Staffing process should be carefully followed to get right man in the right job at the right time and in the right place.

- moment of world peace/ universal brotherhood 

- love forged through introspection in silence

A Good Control System is regarded as a Pervasive Function , as it is required in all types and sizes of organization 

Keeping quiet will help us to introspect on our destructive actions like waging wars or otherwise harming the environment. This will give us a better idea of the consequences of the actions, thus changing our attitude to life.

(a) Heavy investment in Industrial goods – The production of industrial goods calls for heavy capital investment. Most of the companies involved in the production of industrial goods raise capital by issuing shares and debentures and also by resorting to borrowing from financial institutions.

(b) Higher purchase value of Industrial goods – As industrial goods are very highly priced, each purchase involves a very high amount. This is in contrast to consumer and agricultural goods where the amount involved in each purchase is much less. 

(c) Derived demand for industrial goods – The demand for industrial goods is a derived demand. i.e., it is influenced by the demand for the goods they help to manufacture. For example, the demand for a soft drink making plant will be determined by the demand for soft drink. 

(d) Limited number of Buyers – When compared to consumer and agricultural goods, the number of buyers of industrial goods is limited. Such buyers are also found in certain regions. 

Factors affecting Financing Decision. 

In practice, some of the important factors affecting the financing decisions stated below: 

• Cost – the cost of each type of finance is estimated and the source which involves the least cost should be chosen by the financial manger. 
• Risk – The associated risk is different for each source e.g. the risk involved in raising debt capital is higher than equity. 
• Floatation Costs – A source of finance involving less floatation cost is considered to be more preferable. 
• Cash flow position of the business – If the cash flow position of a business is good it should opt for debt else equity. 
• level of fixed operating costs – If the fixed operating cost of a business is low it should opt for debt else equity.

Capital market –

(i) Meaning - The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.

(ii) Duration - It is market for medium and long term securities whose period of maturity is more than a year. 

(iii) Participants - The main participants in capital market are banks, financial institutions, corporate bodies, foreign investors and retail investors. 

(iv) Investment outlay – Since, the cost of certain securities may be low, investment can be made in the capital market even with less capital. Like , the price of a share even be as low as ` 10 or ` 100 etc. 

Money market 

(i) Meaning – The money market constitutes the market for short term funds which deals in monetary assets whose period of maturity is up to one year. 

(ii) Duration – It is a market for short term market instruments whose tenure may range from one single day up to one year. 

(iii) Participants – The main participants in money market are institutional investors like the RBI, banks, financial institutions and finance companies. Although, the individual investors are allowed trade in the secondary money market, however they do not generally do so. 

(iv) Investment outlay – Since, the cost of instruments is high, investment in the money market requires high capital outlay. Like the price of one treasury bill I ` 25,000.

1. A depository participant (DP), either a bank, broker, or financial services company, may be identified. 

2. An account opening form and documentation (PAN card details, photograph, and power of attorney) may be completed. 

3. The physical certificate is to be given to the DP along with a dematerialisation request form. 

4. If shares are applied in a public offer, simple details of DP and Demat account are to be given and the shares on allotment would automatically be credited to the demat account. 

5. If shares are to be sold through a broker, the DP is to be instructed to debit the account with the number of shares. 

6. The broker then gives instruction to his DP for delivery of the shares, to the stock exchange. 

7. The broker then receives payment and pays the person for the shares sold. 

8. All these transactions are to be completed within two days, i.e., delivery of shares and payment received from the buyer is on a T+2 basis, settlement period.

Placement Agencies provide Nationwide Service of matching the Demand and Supply of Work Force .

• Division of work 
• Authority and responsibility 
• Discipline 
• Unity of Command 
• Unity of Direction 
• Subordination of individual interest to general interest. 
• Remuneration of Employees 
• Centralisation and Decentralisation 
• Scalar Principle 
• Order.

Ratio Analysis is quantitative analysis of information contained in company’s financial statement . It is used to evaluate company’s operational and financial performance such as :

 Efficiency , Liquidity , Profitability and Solvency . 

Following are the Objectives of NSE : 

(i) NSE determines the price of securities through its marketability

(ii) NSE creates markets , where the securities are bought and sold . 

• The risks relating to physical certificates like loss, theft, forgery are eliminated completely with a Demat Account.
• The risk of paper work enables quicker transactions and higher efficiency in trading.
• The shares which are created through mergers and consolidation of companies are credited automatically in the Demat account.
• There is no stamp duty for transfer of securities.
• Certain banks also permit holding of both equity and debt securities in a single account.
• A Demat account holder can buy or sell any amount of shares.

(c) Commercial Bill Market

(a) Increase in Prices

• Drawer 
• Acceptor 
• Payee 
• Discounter 
• Endorser 
• Assessment 
• Maturity 
• Credit Rating

Types:

• Demand and Usance Bills: A demand bill is one wherein no specific time of payment is mentioned. So, demand bills are payable immediately when they are presented to the drawee.
• Clean Bills and Documentary Bills: Bills that are accompanied by documents of title to goods are called documentary bills. Clean bills are drawn without accompanying any document.
• Inland Bills and Foreign Bills: Bills that are drawn and payable in India on a person who is resident in India are called inland bills.
• Indigeneous Bills: The drawing and acceptance of indigenous bills are governed by native custom or usage of trade.
• Accommodation and Supply Bills: Accommodation bills are those which do not arise out of genuine trade of transactions.

a) Bank Rate

The Bank Rate of RBI is prepared to buy or rediscount bills of exchange or other eligible commercial paper from other Banks.

Entrepreneurs are now broadly classified into three groups namely risk bearer, organiser and innovator.

(i) Entrepreneur as a risk bearer: Entrepreneurs acts as an agent combining all factors of production to produce a product or service in order to sell at uncertain price in future.

(ii) Entrepreneur as an organiser: Entrepreneur is one who brings together various factors of production and creates an entity to produce product or service and supervise and coordinates several functions in the process.

(iii) Entrepreneur as an innovator: According to Joseph A. Schumpeter in the year 1934 used innovation as a criterion to define an individual as entrepreneui. 

According to him, entrepreneur is one who

• Introduces a brand new product in the market. 
• Institutes new technology to produce a new product. 
• Discovers new course of supply of raw materials

Nature of functional entrepreneurs:

• Innovative Entrepreneur: He is a person who introduces new project. They observe the environment regarding information to the new venture.
• Imitative Entrepreneur: He refers to the person who simply imitates existing knowledge or technology already in advance countries. Redesigning of products suited to the local conditions.
• Fabian Entrepreneur: These are said to be conservatives and sceptical about any changes in their organisation. They are of risk-averse.
• Drone Entrepreneur: Drone entrepreneurs are those who are totally opposed to changes in the environment. They used to operate in the niche market.

Like any other type of Planning , Financial Planning is also considered to be a purposeful activity . 

The Twin objectives of Financial Planning are : 

(i) To Ensure Availability of Funds , whenever these are required : Finance is a scare, but is an essential resource to carry out the activities of a business enterprise . Sound Financial Planning helps in timely and adequate availability of funds which is important for smooth running of a business enterprise . 

(ii) To See that the Firm Does Not Raise Resources Unnecessarily : Each source of finance has a cost attached to it . Therefore , excess funding is likely to have an adverse effect on the Cost Benefit Ratio . The idle funds do not create any benefits , unless Utilized in the best possible manner . Thus , effective financial planning helps to estimate and utilize funds appropriately . 

Current Assets are the assets which are likely to be converted into cash or cash equivalents within 12 months from the date of balance sheet or within the period of operating cycle . 

Two examples of current assets are : 

(i) Current Investments . 

(ii) Short term loans in advance .

b. Geometric shapes

The beehive and spider web are examples of Geometric shapes in nature.

Correct option: (a) Acquisition policies and selection policies