Comprehensive Viva - Question Bank 2018 - R1 PDF

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
COMPEHENSIVE VIVA VOCE SEM I & II

QUESTION BANK
SEMESTER 1 CORE COURSES SEMESTER II CORE COURSES
1. Principles and Practices of 1. Financial Management
Management 2. Marketing Management
2. Business Communication 3. Human Resources Management
3. Managerial Economics 4. Operations Management
4. Accounting for Management 5. Operations Research
5. Quantitative Techniques for 6. Management Information System and
Management Cyber Security
6. Business Law 7. Organizational Behaviour
7. Environment Management 8. Entrepreneurship and Project
8. Business Ethics and Corporate Management
Governance
PRINCIPLES AND PRACTICES OF MANAGEMENT

1. Define Management.
The act of getting things done through people
2. Expand POSDCORB
Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting (Luther
Gullick)
3. List skills of a manager.
Technical skills, Human skills, Conceptual skills
4. List Henry Minzberg‘s roles of a manager
Figurehead, Leader, Liaison, Monitor, Disseminator, Spokesperson, Entrepreneur,
Disturbance handler, Resource allocator, Negotiator.
5. Differentiate Effectiveness and Efficiency
Effectiveness – doing right things, Efficiency – doing things rightly
6. What are the successful attributes needed for effective teamwork?
Commitment to team success and shared goals, Interdependence, Interpersonal Skills,
Open Communication and positive feedback, Appropriate team composition,
Commitment to team processes, leadership & accountability.
7. Who proposed Scientific Management and Administrative management?
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Scientific management – F W Taylor, Administrative Management – Henry Fayol

8. List Fayol‘s 14 Principles of Management
Ans.
1) Division of work
2) Authority and responsibility
3) Discipline
4) Unity of command
5) Unity of direction
6) Subordination of individual to general interest
7) Remuneration of personnel
8) Centralization
9) Scalar chain
10) Order
11) Equity
12) Stability of tenure of personnel
13) Initiative
14) Esprit de corps.
1. Who proposed Management Process School?

Koontz and O‘Donnell.
2. What is Bureaucracy?
Administrative system designed to accomplish large-scale administrative tasks by
systematically coordinating the work of many individuals. (Proposed by Weber).
3. What is Hawthorne Experiments known as?
Human Relations Approach
4. What was the objective of Hawthorne Experiments?
To study the relationship between productivity and physical working conditions
5. List the phases of Hawthorne Experiments.
Illumination experiment, Relay assembly test room experiments, Mass interviewing
programs, Bank wiring observation room experiment
6. Who proposed Management By Objectives?
Peter Drucker.
7. What is Systems approach to Management?
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An integrating approach which considers management in its totality based on empirical

data.
8. List characteristics of Management
Ans
1) Organized activities
2) Existence of Objectives
3) Relationship among Resources
4) Working with and through People
5) Decision making
9. What is the difference between Planning and a Plan?
Planning is a management process, concerned with defining goals for company's future
direction and determining on the missions/ goals and resources to achieve those targets.
To meet the goals, managers may develop plans such as a business plan or a marketing
plan (Plan is commitment to a particular course of action believed necessary to achieve
specific results).
10. List the principles of planning.
Ans.
1) Principle of contribution to objectives
2) Principle of efficiency of plans
3) Principle of primacy of planning
4) Principle of planning premises
5) Principle of policy framework
6) Principle of timing
7) Principle of alternatives
8) Principle of limiting factor
9) Principle of commitment
10) Principle of flexibility
11) Principle of navigational change
12) Principle of Competitive strategies
11. What are the types of planning?
Ans.
1) Corporate planning and functional planning
2) Strategic planning and tactical/operational planning
3) Long-term planning and short-term planning
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4) Proactive planning and reactive planning

5) Formal planning and informal planning
12. What are the types of plans?
Vision, mission, Programs, Schedules, Budget, Methods, Projects, Policies, Objectives,
Procedures, Strategies, Rule.
13. What are Planning Premises?
Planning premises is the anticipated environment in which the plans are expected to
operate. They include assumptions or forecasts of the future and known conditions that
will affect the course of plans.
14. What are the steps in Planning?
1. Perception of Opportunities 2. Establishing Objectives 3. Planning Premises 4.
Identification of Alternatives 5. Evaluation of Alternatives 6. Choice of Alternative Plans 7.
Formulation of Supporting Plan 8. Establishing Sequence of Activities.
15. What is a Decision and Decision Making?
A decision is a course of action purposely chosen from a set of alternatives to achieve
organizational or managerial objectives or goals. Decision-making involves the selection
of a course of action from among two or more possible alternatives in order to arrive at a
solution for a given problem.
16. List the steps in decision making.
Ans.
1) Defining the problem
2) Gathering information and collecting data
3) Developing and weighing the options
4) Choosing best possible option
5) Plan and execute
6) Take follow up action
17. What is MBO?

Management by objectives (MBO) is a management model that aims to improve the
performance of an organization by clearly defining objectives that are agreed to by both
management and employees.
18. List the steps in MBO?
Ans.
1. Define organizational goals
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2. Define employees objectives

3. Continuous monitoring performance and progress
4. Performance evaluation
5. Providing feedback
6. Performance appraisal
19. What is organizing?

Organizing is the function of management that involves developing an organizational
structure and allocating human resources to ensure the accomplishment of
objectives.
20. List the steps in the Organizing process.
Steps in Organizing process:
1. Departmentation
2. Linking departments
3. Defining authority and responsibility
4. Prescribing authority relationships
21. List the principles of organizing.

Ans.
1) Principle of unity of objective
2) Principle of organizational efficiency
3) Principle of span of management
4) Principle of scalar chain
5) Principle of authority and responsibility
6) Principle of unity of command
7) Authority level principle
8) Principle of functional definition
9) Principle of balance
10) Principle of flexibility
11) Principle of stability
12) Principle of simplicity
22. What is an Organization Structure?
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Organisation structure refers to the formal system of task and reporting relationships
that controls, co-ordinates and motivates employees so that they work together to
achieve organisational goals.
23. What is Departmentation?
Departmentation is the process of classifying and grouping all the activities of an
enterprise into different units and sub-units.
24. What are the types of Departmentation?
Ans.
1. Functional Departmentation.
2. Product wise Departmentation.
3. Territorial or Geographical Departmentation.
4. Customer wise Departmentation.
5. Process or Equipment wise Departmentation.
6. Combined or Composite Form of Departmentation.
25. What is Centralization and Decentralization?
Centralization is the systematic and consistent reservation of authority at central
points within an organization. Decentralization applies to the systematic delegation of
authority in an organization-wide context.
26. What is an Organization chart?
A picture of the reporting structure and the division of labor in an organization
27. What is Delegation of Authority?
Delegation means conferring authority from one manager or organizational unit to
another in order to accomplish particular assignments.
28. What are the steps in Delegation?
Ans.
1) Determination of results expected
2) Assignment of duties (description of activities and results expected)
3) Authorization for actions (making commitments, use of resources and other
actions required to get work done)
4) Creation of obligation
29. What is Span of Management?
The number of subordinates who report directly to a manager
30. What is Line and staff authority?
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Line authority is exercised by the superior over his immediate subordinates. Staff
managers assist line managers (in advisory capacity) in discharging their duties
efficiently.
31. What is Network and Virtual Organizations?
Virtual Organizations: A firm that contracts out almost all functions. The only function
retained by the organization is the name and the coordination among the parties. A virtual
organization might not have even have a permanent office.
Network Organizations : A network organization is a collection of autonomous firms or
units that behave as a single larger entity, using social mechanisms for coordination and
control.
32. What is Staffing?
It is the process of filling vacant position by appointing the right personnel at the right
job, at the right time.
33. What are Staffing functions?
Ans.
1) Procurement: manpower planning, Recruitment, Selection, Placement.
2) Development: Orientation, Training, Development, counseling.
3) Compensation: Job evaluation, performance appraisal, promotion, basic pay
and rewards.
4) Integration: Communication, grievance handling, discipline.
5) Maintenance: Welfare measures
34. What are the principles of staffing?
Ans.
1) Staffing objective: qualified personnel who are able and willing to occupy them
fill organization roles.
2) Staffing responsibility: every manager participates in the staffing process.
3) Job definition: The more precisely the results expected of managers are
identified, the more the dimensions of their positions can be defined.
4) Managerial appraisal: The more clearly variable objectives and required
managerial activities are identified, the more precise can be the appraisal of
managers against these criteria.
5) Open competition: The more an enterprise is committed to the assurance of
quality management, the more it will encourage open competition among all
candidates for management positions.
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6) Management development: The more management training and development

are integrated with the management process and enterprise objectives, the
more effective the development programmes and activities will be.
7) Continuing development: The more an enterprise is committed to managerial
excellence, the more it requires that manager practice continuing self-
development
35. What is Direction and Directing?
Direction is the process of instructing, guiding, counseling, motivating and leading the
human resources to achieve organizational objectives. Directing is the guidance, the
inspiration, the leadership of those men and women that constitute the real core of the
responsibilities of management.
36. What is the process of Directing?
Ans.
1) Issuing orders and instructions that are clear, complete and within the
capabilities of subordinates.
2) Continuing guidance and supervision to ensure that the assigned tasks are
carried out effectively and efficiently.
3) Maintaining discipline and rewarding those who perform well.
4) Inspiring the subordinates to work hard for the achievement of predetermined
targets
37. List the principles of Directing?
Ans.
1) Principles relating to the Purpose of direction:
2) Principle of maximum individual contribution
3) Principle of Harmony of objectives
4) Principle of efficiency of direction
5) Principles relating to direction process:
6) Principle of unity of command
7) Principle of appropriateness of direction techniques
8) Principle of managerial communication
9) Principle of comprehension
10) Principle of use of informal organization
11) Principle of leadership
12) Principle of follow through
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38. What is Leadership?

Leadership is the process of influencing the behaviour of others to work willingly and
enthusiastically for achieving predetermined goals.
39. What are the Leadership Traits?
Ans.
1. Physical features
2. Intelligence
3. Emotional stability
4. Human relations
5. Empathy
6. Objectivity
7. Motivating skills
8. Technical skills
9. Communicative skills
10. Social skills
11. What are the types of Leadership Styles?
12. Ans.
13. Authoritarian or autocratic
14. Participative or democratic
15. Delegative or laissez-fair (free-rein)
40. What is Innovation and Creativity?
Innovation is about creating value and increasing efficiency, and therefore growing
one‘s business. Creativity is a mental process involving the generation of new ideas
or concepts, or new associations of the creative mind between existing ideas or
concepts
41. What is e-business?
E-business (electronic business) is the conduct of business processes on the Internet.
These electronic business processes include buying and selling products, supplies
and services; servicing customers; processing payments; managing production
control; collaborating with business partners; sharing information; running automated
employee services; recruiting; and more.
42. What is Organizational Social responsibility?
Organizational social responsibility is measures that are meant to protect and improve the
welfare of society as a whole incorporated by many organizations.
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43. What is control and controlling?

Control refers to the task of ensuring that activities are producing the desired results.
Controlling is determining what is being accomplished – that is, evaluating
performance and, if necessary, applying corrective measures so that the performance
takes place according to plans.
44. What is the relationship between Planning and Controlling?
Planning and controlling functions always co-exist or have to exist together as one
function depends on the other. The controlling function compares actual performance
with the planned performance and if there is no planned performance then controlling
manager will not be able to know whether the actual performance is okay or not.
1. The base for comparison or the yardstick to check is given by planning to controlling
function. On the other hand, the planning function is also dependent on controlling
function as plans are not made only on papers but these have to be followed and
implemented in the organization.
2. The controlling function makes sure that everyone follows the plan strictly. Continuous
monitoring and check in controlling function make it possible that everyone follows the
plan.
45. List the steps in controlling.
Ans.
1. Establishment Of standards for performance
2. Measurement of performance
3. Comparison of actual and standard
4. Developing a report
5. Taking a corrective action
46. What are the types of control?
On the basis of managerial level:
1) Strategic control
2) Managerial control
3) Operational control
4) On the basis of time or stage of Implementation
5) Input stage : Feed forward control
6) Process stage: Concurrent Control
7) Output stage: Feedback control
47. What are the techniques of Control?
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1) Budgetary control: a system which uses budget as a means of planning and

controlling all aspects of producing and / or selling commodities or services.
2) Financial control
i. Financial statements: balance sheets, P&L account, and Cash flow
statements.
ii. Ratio analysis: This examines the relationship between the figures on
financial statements to comprehend the strengths and weaknesses of the
organization.
3) Quality control (QC): is a procedure or set of procedures intended to ensure that
a manufactured product or performed service adheres to a defined set of quality
criteria or meets the requirements of the client or customer
Techniques of quality control: Statistical quality control, Inspection control
1. Inventory control: tries to specify the optimum level of inventory that an organization
should keep.
2. Techniques: ABC analysis, Economic Order Quantity, Just-in-time, Radio Frequency
Identification and Detection
1. Operational control: Aimed at evaluating the performance of the organization and its
various departments.
Types: Productivity, Lean manufacturing
Other measures of control: Internal audit, Human Resource Accounting.
48. What is Management By Exception?
Management by Exception is a system of identification and communication that
signals to the manager when his attention is needed. The essence of this technique is
that all routine matters are handled by the subordinates themselves, whereas the
managers concentrate on exceptional issues.
49. What are the Principles of Control?
Ans.
1) Principle of Uniformity
2) Principle of Comparison
3) Principle of Utility
4) Principle of Exception
50. What is an Information System?
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An information system can be any organized combination of people, hardware,

software, communications networks, and data resources that collects, transforms, and
disseminates information in an organization.
51. List the types of Information Systems.
Ans.
1) Transaction Processing system
2) Management Information System
3) Decision Support System
4) Executive Information System
5) Expert System
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BUSINESS COMMUNICATION
1. What do you understand by the term ‗communication.‘?
Communication is the activity of conveying information through the exchange of
thoughts and messages by speech, visuals, signals, writing or behavior.
2. Can you trace the origin of the word communication?
The word communication has come from the Latin words ‗Communis and
communicare.‘ ‗Communis‘ means common, communality or sharing and
‗communicare‘ means to make something common.
3. What are internal and external communications?
While internal communication takes place between and among employees within an
organization, external communication occurs between those within the company and
those in the outside world.
For internal communication, written media may be memos, reports, bulletins, job
descriptions, posters, notes, employee manuals, electronic bulletin boards etc. Oral
communications may take the form of staff meeting reports, face to face discussions,
presentations, audio tapes, telephone chats, conferences or video tapes. Grapevine
is another oral channel.
External written communication – letters, reports, proposals, e-mails, contracts,
advertisements, brochures, catalogues news releases etc.
External oral communication – face to face discussions, telephones, presentations
through teleconferences, video conferences etc.
4. What are the 7Cs of communication?
I. Completeness - Provide all necessary information-answering all the five W‘s-
who, what, when , where, why
II. Conciseness – Eliminate wordy expressions, include only relevant material
and avoid unnecessary repetition
III. Consideration – Focus on ‗you‘ instead of ‗I‘ and ‗we‘. Show interest in the
audience and in the receiver. Emphasize positive pleasant facts.
IV. Concreteness- Use specific facts and figures – put action in the words, vivid
image building words must be chosen
V. Clarity – Choose precise, concrete and familiar words – construct effective
sentences and paragraphs
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VI. Courtesy – Be sincere, tactful, thoughtful and appreciative – use expressions

that show respect - choose non-discriminatory expressions
VII. Correctness – The message is exact, correct and well-timed. It checks for the
precision and accurateness of facts and figures used in the message.
5. What are the components that make a communication process complete?
Sender, message, encoding, channel, receiver, decoding and feedback are the
components
6. What are the different types of communication barriers?
Semantic barriers – If the receiver attributes different meanings to words and
symbols, poor vocabulary and wrong grammatical use are some of the semantic
barriers
Physical barriers – Noise, Distance, inadequate or overloaded information and
improper time to convey the message are some of the physical barriers.
Organizational barriers – Organizational rules and regulations, Absence of staff
meetings, wrong choice of the communication channel and hierarchical relationship
are some of the organizational barriers that hinder communications.
Psychological barriers – They arise from motives, emotions, social values, different
perceptions etc. These create a psychological distance, cause misunderstandings
among people at work and hinder the communication process.
7. What is the difference between intrapersonal and interpersonal communication?
Intrapersonal communication is internal dialogue occurring within the mind of an
individual. It may be either clear or confused depending on the individual‘s state of
mind.
Interpersonal communication is communication among two or more persons. It is an
important element of the organization.
8. What is Grapevine Communication?
Informal communication which is spontaneous and off the records and beyond
organizational hierarchy is called grape vine communication. It has no set rules and
regulations and also no particular direction
9. What are the important characteristics of an e-mail?
E-mails should be concise, should have a single theme, should be correct, should
have a conversational tone and should be crystal clear
10. What are the guidelines to develop effective style of writing?
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Know the audience, to whom you are writing, avoid lengthy sentences, use simple
words, use of active and vivid words, use of positive ideas, avoid gender biased
words and finally review and revise the text to ensure the message is free from
spelling errors and grammatical mistakes.
11. What are the different types of interviews?
The word interview comes from Latin and French words meaning to ―see between‖ or
―see each other.‖
Person who answers the questions –interviewer
Person who asks the questions – interviewer
Personal interviews –for promotion, retirement and resignation
Evaluation interviews – to review the progress of the interviewee, Persuasive
interviews-to sell someone a product or an idea
Structured Interviews- a set of pre-determined agenda or questions are followed
Unstructured interview- when the interview does not follow the formal rules or
procedures. The discussion will be free flowing
Counseling interviews- to find out what has been troubling the workers and why work
is suffering etc...
Stress interview – to place the interviewee in a stress situation to observe the
interviewee‘s reaction.
Public interviews- political parties‘ radio-television and newspaper discussion
12. What are the characteristics of a good report?
A report is a document that presents information in an organized format for a specific
audience and purpose.
Precision, accuracy of facts, relevant matter, reader-oriented, simple language,
conciseness, grammatical accuracy, unbiased recommendation, clarity and attractive
presentation.
13. What are the characteristics of negotiation?
Minimum of 2 parties
Both parties must have pre-determined goals which they wish to achieve
There is a clash of pre-determined goals
There is an expectation of outcome by both the parties
Both the parities believe the outcome to be satisfactory
Both parties will be willing to compromise their position to a certain extent
Why is listening an important component of the communication process?
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Listening helps to gain information, to develop trust, to reduce conflict, to motivate

employees, to increase productivity and so on..
14. Can you explain the following terms Oculescis, haptics, chronemics
Oculesics-the ways eyes are used during a communication exchange,
Haptics- Touch as an important form of communication,
Chronemics- use of time as a message system
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MANAGERIAL ECONOMICS
1) Explain the difference between Micro Economics and Macro Economics
Microeconomics is the study of individuals, households and firms' behavior in decision making
and allocation of resources. It generally applies to markets of goods and services and deals with
individual and economic issues.
Macroeconomics is the branch of economics that studies the behavior and performance of an
economy as a whole. It focuses on the aggregate changes in the economy such as
unemployment, growth rate, gross domestic product and inflation.
2) State the law of demand. What are the determinants of demand?
Definition: The law of demand states that other factors being constant (cetris peribus), price and
quantity demand of any good and service are inversely related to each other. When the price of a
product increases, the demand for the same product will fall.
Price of the commodity, Income of the consumer Prices of related goods Consumers tastes and
preferences, Consumers‘ expectations Size and composition of population Government policy
3) What are the factors of production? How are they remunerated?
Land labour capital and entrepreneurship
Rent wages interest and profit
4) What do you mean by opportunity cost
The value of the next-best alternative is called opportunity cost. The opportunity cost of any
action is the value of what is given up—the next-highest-ranked alternative—because a choice
was made. When you study one more hour, there may be many alternatives available for the use
of that hour, but assume that you can do only one other thing in that hour—your next-highest-
ranked alternative.
5) Define utility.
Utility is the satisfaction a person receives from the consumption of a good or service or from
participation in an activity. Happiness, joy, contentment, or pleasure might all be substituted for
satisfaction in the definition of utility
6) How do you explain Gross National Product and Gross Domestic Product
Gross domestic product: - Gross domestic product is the money value of all final good and
services produced in the domestic territory of a country during an accounting year
Gross national product: - Gross national product is defined as the sum of the gross domestic
product and net factor incomes from abroad. Net factor income from abroad =Factor income
earned from abroad by residents – Factor income of non-residents in domestic territory.
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7) What is Fiscal Policy? What are its objectives?
Fiscal policy is the use of government revenue collection and expenditure to influence the
economy. Fiscal policy is the government programme of making discretionary changes in the
pattern and levels its expenditure, taxation and borrowings in order to achieve intended
economic growth, employment, income equality and stabilization of the economy on a growth
path
Objectives of the Fiscal policy
•To mobilise adequate resources for financing various programmes and projects adopted for
economic development.
•To raise the rate of savings and investment for increasing the rate of capital formation.
•To promote necessary development in the private sector through fiscal incentive
•To arrange an optimum utilisation of resources
•To control the inflationary pressures in economy in order to economic stability.
•To remove poverty and unemployment
•To attain the growth of public sector for attaining the objective of socialistic pattern of society
•To reduce regional disparities
8) What is monetary policy and what are its objectives?
Monetary policy is the macroeconomic policy laid down by the central bank. It involves
management of money supply and interest rate and is the demand side economic policy used by
the government of a country to achieve macroeconomic objectives like inflation, consumption,
growth and liquidity.
RBI-Monetary policy refers to the use of monetary instruments under the control of the central
bank to regulate magnitudes such as interest rates, money supply and availability of credit with a
view to achieving the ultimate objective of economic policy.
Objectives of Monetary Policy
• Maintain Price stability as a pre-condition for sustainable growth
• Flexible inflation rate
• Maximum feasible output
• Ensuring adequate flow of credit to the productive sectors of the economy to support
economic growth
• High rate of economic growth
• Full employment
• Greater equality in the distribution of income and wealth
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• Healthy balance of payments

9) What is Balance of Payment
Balance of payments is a statement of a country‘s international transactions.
It presents a systematic record of all economic transactions, during a given time period, between
residents of that country and those of the rest of the world.
It registers the changes in the country‘s financial claims and obligations vis-à- vis all other
countries during a month, quarter, or year
10) What do you mean by inflation and what are the types
Inflation:- A continuous increase in the general (average) price level of goods and services in the
economy
In other words, The prices of many goods and services in the consumption basket such as
housing, apparel, food, transportation, and fuel must be increasing in the overall economy.
If prices of just a few types of goods or services are rising, there isn't necessarily inflation.
Types of Inflation
Demand-pull inflation:
A rise in the general price level resulting from an excess of total spending (demand)
Demand-pull inflation occurs when aggregate demand for goods and services in an economy
rises more rapidly than an economy's productive capacity.
Cost-push inflation:
A rise in the general price level resulting from an increase in the cost of production Cost-
push inflation, on the other hand, occurs when prices of production process inputs increase.
Rapid wage increases or rising raw material prices are common causes of this type of inflation
11) Define National Income
National income is the money value of all the final goods and services produced by a country
during a period of one year.
12) What do you mean by equilibrium price and quantity and how it is determined?
Equilibrium price and quantity are determined by the intersection of demand and supply curves.
At the point of intersection, quantity demanded equals quantity supplied, and the market clears.
At the market clearing price, there is no excess demand (shortage) and no excess supply
(surplus)
13) What is Price Elasticity of demand?
Price elasticity of demand measures how sensitive the quantity demanded of a product is to price
changes. Price elasticity of demand typically is expressed as an absolute value. It is determined
by dividing the percentage change in quantity demanded by the percentage change in price.
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Elasticity measures permit comparisons among diverse products because they are based on
percentages.
14) Define Law of Supply
Definition: Law of supply states that other factors remaining constant, price and quantity supplied
of a good are directly related to each other. In other words, when the price paid by buyers for a
good rises, then suppliers increase the supply of that good in the market.
15) Define Law of diminishing marginal utility
As we consume more of a given product, the added satisfaction we get from consuming an
additional unit declines
16) What is Consumer Surplus?
Consumer surplus is the difference between what consumers are willing to pay and what they
actually pay for a product in the market.
17) What is Indifference curve?
An indifference curve is a graph showing combination of two goods that give the consumer
equal satisfaction and utility. Each point on an indifference curve indicates that a consumer
is indifferent between the two and all points give him the same utility.
1) What is you understanding on Economies of scale
As a firm‘s output increases, its Long Run Average Total Cost tends to decline. This results from
specialization of labor and management, and potentially a better use of capital and
complementary production techniques.
19) What is perfect competition and what are the characteristics of perfect competition?
Perfect competition describes a market structure where competition is at its greatest possible
level. To make it more clear, a market which exhibits the following characteristics in its structure
is said to show perfect competition:
■ Many buyers and sellers
■ Homogeneous (standardized) products
■ No barriers to market entry or exit
■ No long-run economic profits
■ No control over price
20) What is Monopolistic competition and What are the characteristics of Monopolistic
competition?
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Monopolistic competition is a market structure where, like perfect competition, there are many
firms and freedom of entry into the industry, but where each firm produces a differentiated
product and thus has some control over its price.
■ Many buyers and sellers
■ Differentiated products
■ No barriers to market entry or exit
■ No long-run economic profits
■ Some control over price
21) What are the characteristics of Oligopoly?
• Fewer firms (such as the auto industry)
• Mutually interdependent decisions
• Substantial barriers to market entry
• Potential for long-run economic profits
• Shared market power and considerable control over price
22) What is monopoly and what are the characteristics of monopoly?
Monopoly is a market structure where there is only one firm in the industry.
■ One firm
■ No close substitutes for product
■ Nearly insuperable barriers to entry
■ Potential for long-run economic profit
■ Substantial market power and control over price
23) What do you mean by Marginal Revenue
The change in total revenue from selling an additional unit of output.
24) What is price discrimination?
Charging different consumer groups different prices for the same product
25) What you mean by marginal utility?
The change in total utility that comes from consuming one additional unit of a good or service
26) What is production function?
Production function the relationship between quantity of inputs and the resulting quantity of
outputs
27) What is marginal cost?
Marginal Cost is (MC) the additional cost incurred by a firm when it produces one additional unit
of output.
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28) Define total revenue, total cost, and profit

The amount that a firm pays for all of the inputs that go into producing goods and services is its
total cost. The amount that a firm receives from the sale of goods and services is its total
revenue. Profit is the difference between cost and revenues.
29) Explain the difference between fixed and variable costs, and give examples of each.
Fixed costs are those that don‘t depend on the quantity of output produced. Often, a fixed cost is
a one-time, upfront payment that has to be made before production can begin. Examples are
buying a factory or hiring researchers to develop a new product. Variable costs are those that
depend on the quantity of output produced. Examples are the cost of raw materials and often
workers‘ salaries.
30) Explain why firms face different costs in the long run than in the short run.
Firms are able to adjust their property and production processes over time. Thus, costs that are
fixed in the short run can become variable in the long run. A firm‘s long-run cost curves reflect
the increased flexibility of fixed costs. In the long run, a small firm can expand its production
capacity to look like that of a larger firm by changing the quantity of inputs that were fixed in the
short run.
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QUANTITATIVE TECHNIQUES FOR MANAGEMENT

1. Define Matrix
A matrix is defined as an ordered rectangular array of numbers.
2. What does transposing of a matrix mean?

The transpose of a matrix is found by exchanging rows for columns
3. What is the role of a determinant?
Determinants play an important role in finding the inverse of a matrix and also in
solving systems of linear equations.
4. Define Probability
A probability is a number that reflects the chance or likelihood that a particular
event will occur. Probabilities can be expressed as proportions that range from 0 to 1,
and they can also be expressed as percentages ranging from 0% to 100%. A probability
of 0 indicates that there is no chance that a particular event will occur, whereas a
probability of 1 indicates that an event is certain to occur.
5. When do you call an event mutually exclusive?
Two events that have no outcome in common are called mutually exclusive
events.
6. Explain Bayes‘ theorem
Bayes‘ theorem describes the probability of an event, based on prior knowledge of
conditions that might be related to the event.
7. What is the difference between correlation and regression
Regression describes how an independent variable is numerically related to the
dependent variable. Correlation is used to represent the relationship between two
variables. In correlation, there is no difference between dependent and independent
variables.
8. State the types of correlation
There are three types of correlation: positive, negative, and none (no correlation).
Positive Correlation: as one variable increases so does the other. Height and shoe size
are an example; as one's height increases so does the shoe size.
Negative Correlation: as one variable increases, the other decreases. Time spent
studying and time spent on video games are negatively correlated; as your time studying
increases, time spent on video games decreases.
No Correlation: there is no apparent relationship between the variables. Video game
scores and shoe size appear to have no correlation; as one increases, the other one is
not affected.
9. What are the components of time series
The factors that are responsible for bringing about changes in a time series, also
called the components of time series, are as follows:
Secular Trends (or General Trends)

Seasonal Movements.
Cyclical Movements.
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Irregular Fluctuations.
10. Define Index numbers
A number showing the variation in a price or value compared with the price or
value at a specified earlier time (often represented by the number 100).
11. Define parametric and non parametric Test
The parametric test is the hypothesis test which provides generalizations for
making statements about the mean of the parent population. A t-test based on Student‘s
t-statistic, which is often used in this regard.
The t-statistic rests on the underlying assumption that there is the normal distribution of
variable and the mean in known or assumed to be known. The population variance is
calculated for the sample. It is assumed that the variables of interest, in the population
are measured on an interval scale.
The nonparametric test is defined as the hypothesis test which is not based on
underlying assumptions, i.e. it does not require population‘s distribution to be denoted by
specific parameters.
The test is mainly based on differences in medians. Hence, it is alternately known as the
distribution-free test. The test assumes that the variables are measured on a nominal or
ordinal level. It is used when the independent variables are non-metric
12. Define ANOVA
Analysis of variance is a collection of statistical models and their associated
estimation procedures used to analyze the differences among group means in a sample.
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ENVIRONMENT MANAGEMENT
1. How environmental awareness support sustainable business?
A. Use products that reduce your reliance on natural resources (e.g. rainwater tanks, solar
hot water systems)
B. Use products that are made from recycled material (e.g. office supplies made from
recycled plastic, furniture made from recycled rubber)
C. Look at all your business activities to see if you can do anything differently (e.g. reducing
air travel by holding conference calls instead of interstate meetings).
Making your business environmentally friendly not only benefits the environment but can also
save you money.
2. What is Green Marketing and its scope for future?
The concept of green marketing has come into existence in response to the growing concern.
There is growing concern about the greenhouse gases in the environment due to the burning of
fossil fuels, about the depletion of ozone layer due to certain chemicals and global warming.
Environmentalists in India and abroad are voicing their concern and are campaigning against
pollution caused by industries.
3. How clean technologies support business development?
Clean technologies are poised for dramatic growth in a manner that will offer significant and
tangible economic, environmental, and social benefits. Furthermore, it will be an added
advantage to show case to the world about the fact that we are responsible citizens of the world.
4. Strategies for achieving sustainable development for a business professional
For the business enterprise, sustainable development means adopting business strategies and
activities that meet the needs of the enterprise and its stakeholders today while protecting,
sustaining and enhancing the human and natural resources that will be needed in the future. This
definition captures the spirit of the concept as originally proposed by the World Commission on
Environment and Development, and recognizes that economic development must meet the
needs of a business enterprise and its stakeholders. The latter include shareholders, lenders,
customers, employees, suppliers and communities who are affected by the organization‘s
activities. It also highlights business‘s dependence on human and natural resources, in addition
to physical and financial capital. It emphasizes that economic activity must not irreparably
degrade or destroy these natural and human resources.
5. How Environment management system becomes useful for business?
An Environmental Management System or EMS can be a powerful tool to help businesses,

improve their environmental performance and reduce their carbon footprint.
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Many organisations implement an EMS to meet the requirements of certification not necessarily
to become a better environmental corporate citizen. However, they soon discover that
implementing a robust EMS is beneficial and adds value to their business.
6. What is eco- friendly manufacturing?
Eco- or environmentally friendly manufacturing protects the planet from exploitation and
conserves natural resources. Products are made from sustainable materials, while waste is
reduced through re-manufacturing, reuse and recycling. Besides being a friend of the earth,
being eco-friendly can reduce a business costs through reduced energy use, for example, or
lower transportation costs.
7. How Biodiversity is of use in environment friendly business?
Business can be a significant driver of biodiversity conservation but it must have a seat at the
table and be allowed to have a constructive role in designing and implementing sustainable
policy solutions with governments. Potential ecosystem degradation and biodiversity loss are
material considerations for all investment decisions. Not because they make for good public
relations, but because companies and investors realized that these are fundamental for business
success in our carbon and natural resource constrained world.
8. What is fair trade and how it is important for marketing?
Fair Trade movement seeks to promote greater equity in international trading partnerships
through dialogue, transparency, and respect. It promotes sustainable development by offering
better trading conditions to, and securing the rights of, marginalized producers and workers in
developing countries. Fair trade is grounded in three core beliefs; first, producers have the power
to express unity with consumers. Secondly, the world trade practices that currently exist promote
the unequal distribution of wealth between nations. Lastly, buying products from producers in
developing countries at a fair price is a more efficient way of promoting sustainable development
than traditional charity and aid.
9. What is carbon credit and how it can be used in trading?
Carbon credit came about in response to the Kyoto Protocol. Signed in Kyoto, Japan, by some
180 countries in December 1997, the Kyoto Protocol calls for 38 industrialized countries to
reduce their greenhouse gas emissions. Carbon is an element stored in fossil fuels such as coal
and oil. When these fuels are burned, carbon dioxide is released and acts as what we term a
"greenhouse gas".
The idea behind carbon trading is quite similar to the trading in a marketplace. Carbon would be
given an economic value, allowing people, companies or nations to trade it. If a nation bought
carbon, it would be buying the rights to burn it, and a nation selling carbon would be giving up its
rights to burn it. The value of the carbon would be based on the ability of the country owning the
carbon to store it or to prevent it from being released into the atmosphere. (The better you are at
storing it, the more you can charge for it.)
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10. What is hierarchy in waste management?
The waste hierarchy, typically displayed as an inverted triangle, offers a hierarchical approach to
showing most preferred versus least preferred approaches to solid waste generation and
management. The actual categories may vary in specific name and number, depending upon the
particular group using this model, but the essential thought process is that the avoidance of
consumption and source reduction, along with reuse, are preferable to recycling.
11. What are the components of ISO 14000 Environment Management System?
ISO 14001 sets out the key elements namely:
• Environmental Policy
The environmental policy and the requirements to pursue this policy via objectives, targets, and
environmental programs.
• Planning
The analysis of the environmental aspects of the organization (including its processes, products
and services as well as the goods and services used by the organization).
• Implementation and operation
Implementation and organization of processes to control and improve operational activities that
are critical from an environmental perspective (including both products and services of an
organization).
• Checking and corrective action
Checking and corrective action including the monitoring, measurement, and recording of the
characteristics and activities that can have a significant impact on the environment.
• Management Review
Review of the EMS by the organization's top management to ensure its continuing suitability,
adequacy and effectiveness.
• Continual improvement
The concept of continual improvement is a key component of the environmental management

system; it completes the cyclical process of plan, implement, check, review and continually
improve.
12. Which are the pillars of Sustainable development concept?
The three pillars of sustainability are a powerful tool for defining the economic, social, and
environmental pillars. If anyone pillar is weak then the system as a whole is considered
unsustainable.
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13. How climate change can influence the business world?
Our world's climate is changing, and with it comes changing weather patterns. Of particular
concern are changes that are subtle, on average, but more severe in the extremes. These are
the changes that have the greatest potential to produce natural catastrophes affecting
businesses, jobs and economies on a regional or global scale. Weather can have a positive or
negative impact on the flow of commerce, affecting a wide range of businesses. Heavy rain or
severe snowstorms can shut down transportation networks or flood buildings, and thus impact a
company's bottom line.
Extreme wet or dry conditions can affect buildings, machinery, data centers, transportation
networks, supply chains, people and sales. When businesses in the United States are
significantly affected by extreme precipitation and flooding, the ramifications can be felt
throughout the global supply chain.
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ACCOUNTING FOR MANAGEMENT

1. Which is the new form of business as per Section 2(62) of Companies Act, 2013?
One Person Company- Section 2(62)of the Companies Act, 2013 (―Act‖) defines
OPC as a company which has only one person as a member. OPC can be
registered only as aprivate company which means that all the provisions
applicable to private company will be applicable to an OPC, unless otherwise
expressly excluded in the Act or rules made thereunder.
2. State Accounting equation.

Assets = Liabilities + Capital
3. Explain the 3 Golden rules of recording.
a. Personal Accounts –
a) Debit the receiver
b) Credit the giver
b. Real Accounts –
a) Debit what comes in
b) Credit what goes out
c. Nominal Accounts –
a) Debit all expenses/losses
b) Credit all incomes/Gains.
4. Explain the term Goodwill.
Goodwill is an intangible asset. The value of a company‘s brand name, solid
customer base, good customer relations, good employee relations, and any patents
or proprietary technology represents goodwill.
5. How you will calculate COGS (cost of Goods sold)?
COGS = the cost of products manufactured and sold or purchased and re-sold by
the company. It can be calculated by (Opening stock + Purchases ) - Closing
stock.
6. What do you mean by Accrual concept
Accrual concept: Revenues and costs are accrued, that is, recognized as they are
earned or incurred (and not as money is received or paid) and recorded in the
financial statements of the periods to which they related.
7. Why we need Bank reconciliation statement?
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Bank reconciliation statement is a statement that depositors prepare to find,

explain and understand any differences between the balance in bank statement
and the cash balance in their accounting records.
8. What do you mean by Contingent liability?
A contingent liability can be defined as a liability which may arise depending on the
outcome of a specific event. It is a possible obligation which may or may not arise
depending on how a future event unfolds. Examples: Sales Tax Disputed,
Outstanding lawsuits (pending legal proceedings).
9. What do you mean by deferred revenue expenditure?
Deferred Revenue Expenditure is an expenditure which is revenue in nature and
incurred during an accounting period, but its benefits are to be derived from a
number of following accounting periods. These expenses are unusually large in
aount and, essentially, the benefits are not consumed within the same
accounting period. Example: Large Amount spent on advertisement.
10. What is the financial impact of buying a fixed asset?
Financial impact of buying a fixed asset- The purchase of fixed assets for cash
affects the balance sheet it will allows increase in the Asset values mainly fixed
asset along with decrease in the cash balances. If it is a credit purchase, then it will
increase the accounts payable or creditors along with increase in the Assets
amount.
11. Is there any difference between management accounting & financial accounting?
Following are main differences between Management accounting & Financial
Accounting:
ial accounting serves interest of external users whereas management
accounting serves the interest of internal users.
accounting is optional.
to provide financial information to
outsiders, meanwhile management accounting helps to assist the
management in planning and decision making process.
Financial accounting reports consist of financial statements like Income
statement and Position statement covers entire organization. Management
accounting reports are monthly, weekly or yearly which can cover entire as
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well as segment wise reporting.

12. Explain the various tools used for financial statement analysis?
Financial statement analysis is the process of systematic and careful examination of
accounting information given in the financial statements with specific purposes.
Following tools can be used:
13. Expand IFRS

IFRS- International Financial Reporting Standards: is a set of accounting standards
developed by an independent, not-for-profit organization called the International
Accounting Standards Board (IASB). It provides a global framework and provides
general guidance related for the preparation of financial statements by business
entities.
14. Explain DuPont analysis and why is it important?
DuPont analysis a financial ratio based on the return on equity ratio that is used to
analyze a company's ability to increase its return on equity which was developed
by DuPont Corporation.
It helps to measure ROE is affected by three things:
- Operating efficiency, which is measured by profit margin
- Asset use efficiency, which is measured by total asset turnover
- Financial leverage, which is measured by the equity multiplier
ROE = Net profit available to equity shareholders
Equity shareholder‘s fund
Or
(Net Income/ Sales) * (Sales/ Assets) *(Asset/Equity)
15. Expand the terms EBIT and EAT?
EBIT – Earning before Interest and Tax EBIT is used to analyze the performance
of a company's core operations without tax expenses and the costs of the capital
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structure influencing profit. The following formula is used to calculate EBIT:

EBIT = Net income + Interest expense + Tax expense
EAT – Earnings After Tax. It is the portion of profit after taxation and it is
available for distribution between the owners and the company.
16. What do you mean by turnover of a company?
Turnover otherwise called Top line of the company – It refers to the company‘s net
sales or revenue.
Bottom line of the company – It refers to the company‘s net income or net profit.
17. Explain the difference between Gross Profit and Net Profit.
Gross Profit- Net sales – Cost of goods sold
Net Profit – (Gross profit+ indirect income) – Indirect expenses.
direct expenses related with production whereas Net Profit is the excess of
gross profit and indirect income over all indirect expenses.
whereas net profit shows the net earnings of the business over a period of
time.
18. Do you think Accounting Standards are mandatory and why?

Yes, accounting standards are mandatory because it provides uniformity and
credibility for the financial statements. It allows a transparency and reliability for the
companies‘ activities.
19. Explain the term Profit center.
Profit center is a subunit or department of a company that is responsible
for revenues and costs. It acts as key drivers of the total results of the organization.
20. What is the difference between Equity share capital and Preference share capital?
Differences:
shares rate is not fixed, which can vary depends upon the availability of
profit.
Where Dividend on Equity shares is paid only after the preference

dividend has been paid.
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equity capital.
whereas preference shareholders cannot avail this right.
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FINANCIAL MANAGEMENT
1. What is meant by Financial Planning?
Ans. Financial planning means deciding in advance, the financial activities to be carried
on to achieve the basic objective of the firm. The basic objective of the firm is to get
maximum profits out of minimum efforts.
2. State the primary objectives of Financial management?
To maximize the shareholders wealth and profit maximization.
3. State the decisions involved in Financial management.
a) Investment decision b) Financing decision c) Dividend decision
4. What is Working Capital ?
Ans. The capital required for day to day operations of the business is called Working
capital.
5. State the difference between gross working capital and net working capital.
Gross working capital is the sum/ aggregate of the current assets, whereas Net working
capital = Current assets – current liabilities.
6. What is meant by capital budgeting decision?

A long term Investment decision is called capital budgeting decision.
7. When is financial leverage considered favorable?
Financial leverage is considered favorable when return on investment is higher than the
cost of debt.
8. How does production cycle effect working capital?
Working capital requirement is higher with longer production cycle.
9. What do you mean by floatation cost?
Cost incurred for raising funds.
10. What is capital structure of a company?
Capital structure is the relative proportion of different sources of long term finance. In
other words Capital structure of a company refers to the make up of its capitalization.
11. Why Capital budgeting decisions are more important?
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The long term Investment decision is called capital budgeting. It is more important due to
the following reasons-
a)Long term growth and affects : As capital budgeting decisions involve investment in
long term fixed assets, it affects the long term growth.
b) Large amount of funds involved : As huge amount of fund is blocked for a long period,
the decision should be taken rationally.
c)Risk involved : As such a decision affects the returns of the firm as a whole, it involves
more risk.
d)Irreversible decisions : These long term decisions taken once cannot be reversed back,
without incurring heavy losses. It will lead to waste of fund, if reversed. Thus capital
budgeting decisions should be taken after careful study and deep analysis.
12. What is the relationship between risk and return?
The risk-return tradeoff is the principle that potential return rises with an increase in risk.
Low levels of uncertainty or risk are associated with low potential returns, whereas high
levels of uncertainty or risk are associated with high potential returns.
13. What is risk diversification?
Diversification is the process of allocating capital in a way that reduces the exposure to any
one particular asset or risk. Diversification is one of two general techniques for reducing
investment risk. The other is hedging.
14 . What do you mean by time value of money?
The time value of money (TVM) is the idea that money available at the present time is worth
more than the same amount in the future due to its potential earning capacity.
15. What is Leverage?
Leverage is the use of various financial instruments or borrowed capital, such as margin, to
increase the potential return of an investment.
16. List the various techniques used in Capital Budgeting?
Payback Period, Discounted Payback Period, Net Present Value, Accounting Rate of Return,
Internal Rate of Return, Profitability Index.
17. What is IRR?
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Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability
of potential investments. Internal rate of return is a discount rate that makes the net present
value (NPV) of all cash flows from a particular project equal to zero.
18. What do you mean by Capital Rationing?
Capital rationing is a process through which a limited capital budget is allocated between
different projects in a way that maximizes the shareholder's wealth.
Capital rationing is a method used to select a project mix in a situation when the total funds
available for investment are less than total net initial investment needed by all the projects
under consideration. It involves calculation of profitability indices for all projects and
selecting projects that lead to highest combined net present value.
20. What is Net Present Value|?
Net present value (NPV) is the difference between the present value of cash inflows and the
present value of cash outflows over a period of time. NPV is used in capital budgeting to
analyze the profitability of a projected investment or project.
21. What is the Optimal capital structure for a company?
The optimal capital structure indicates the best debt-to-equity ratio for a firm that maximizes
its value. Putting it simple, the optimal capital structure for a company is the one which
proffers a balance between the idyllic debt-to-equity ranges thus minimizing the firm's cost of
capital.
22. What is the significance Dividend decision?
Dividend decision refers to the policy that the management formulates in regard to earnings
for distribution as dividends among shareholders. Dividend decision determines the division
of earnings between payments to shareholders and retained earnings.
23. What are the various Dividend policies adopted by companies?
1) Regular dividend policy: in this type of dividend policy the investors get dividend at usual
rate. Here the investors are generally retired persons or weaker section of the society who
want to get regular income. This type of dividend payment can be maintained only if the
company has regular earning.
2) Stable dividend policy: here the payment of certain sum of money is regularly paid to the
shareholders. It is of three types:
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a) Constant dividend per share: here reserve fund is created to pay fixed amount of dividend
in the year when the earning of the company is not enough. It is suitable for the firms
having stable earning.
b) Constant pay out ratio: it means the payment of fixed percentage of earning as dividend
every year.
c) Stable rupee dividend + extra dividend: it means the payment of low dividend per share
constantly + extra dividend in the year when the company earns high profit.
3) Irregular dividend: as the name suggests here the company does not pay regular dividend
to the shareholders. The company uses this practice due to following reasons:
Due to uncertain earning of the company.
Due to lack of liquid resources.
The company sometime afraid of giving regular dividend.
Due to not so much successful business.
4) No dividend: the company may use this type of dividend policy due to requirement of
funds for the growth of the company or for the working capital requirement.
24. What is Cash flow statement used for?
The primary purpose of the statement of cash flows is to provide information about cash
receipts, cash payments, and the net change in cash resulting from the operating, investing,
and financing activities of a company during the period. It is the financial statement that
presents the cash inflows and outflows of a business during a given period of time. It is
equally as important as the income statement and balance sheet for cash flow analysis.
25. What is the difference between Cash flow and Fund flow statement?
Cash Flow statement shows the changes in the cash position (Inflows and outflows) of a
firm. It is an analytical reconciliation statement which explains the reasons for the
differences between the opening and closing cash balances over a period. On the other
hand, Fund Flow statement is a statement that shows the ups and downs of the financial
position or the changes in working capital of the entity between the two financial years.
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MARKETING MANAGEMENT
1. List the various orientations in marketing.
 Marketing orientation
 Selling Orientation
 Production Orientation
 Product Orientation
2. Define Production orientation
 An organization which focuses on production specializes in producing a maximum number of
units to avail the benefits of volumes of scale without considering the quality.
3. Define Product orientation:
 An organization which focuses on product orientation is mainly concerned with the quality of the
products and focuses on developing new and improved features.
4. Define Selling orientation
 An organization which uses sales orientation mainly focuses on the selling or promoting a
particular product, and not determining customer needs or caring about quality
5. What is segmented market?
 Segmenting market is to divide the customers on the basis of certain criteria so that each
segment needs can be recognized and fulfilled properly. The advantage is that there is no need
of selling the product to all the segments of market. A particular segment can be targeted
according to their requirements.
6. What do you understand by ‘target market’?
 A segment which gives maximum profitability is the target market. Products are launched in the
target segment with the needs of the customer‘s in mind.
7. What is the objective of market segmentation?
 The main essence of segmentation analysis is:
a. To choose the most appropriate customer group whose needs match with that of
organization‘s marketing capability.
b. To maximize marketing efficiency and effectiveness by providing focus in marketing activities
and by developing customer relevant value offerings.
8. What are the major factors influencing consumer behaviour?
 Demographic, Cultural, Social and Psychological factors
9. Mention the various steps of a new product development process.
 Stage 1: Idea Generation
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 Stage 2: Idea Screening

 Stage 3: Concept Development and Testing
 Stage 4: Marketing Strategy Development
 Stage 5: Business Analysis
 Stage 6: Product Development
 Stage 7: Test Marketing
 Stage 8: Commercialization
10. Define brand
 A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify
the goods or services of one seller or group of sellers and to differentiate them from those of
competitors.
11. What are services & what are their characteristics?
 Services are acts of performance that one party offers to another and can satisfy a need/ want.
 Services are Intangible, Inseparable, Variable & Perishable
12. Explain PLC
 Products have a limited life and pass through distinct stages, each posing different challenges,
opportunities, and problems to the seller. Profits rise and fall at different stages of the product life
cycle. The Product Life Cycle (PLC) has Five Stages: Product Development, Introduction,
Growth, Maturity, Decline
13. What are the 5 different levels of products?

 Core benefit
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 Basic product
 Expected product
 Augmented product &
 Potential products
14. What is a product mix?
Product Mix (product assortment): is the set of all products and items that a particular seller
offers for sale.
15. What are the factors affecting price?
 Company‘s costs
 Competition
 Customers
 Market structure
 Marketing environment
16. Briefly describe BCG Matrix
BCG matrix is a portfolio analysis tool that helps the company classifies their product line
based on ‗market share‘ & ‗growth‘ of the various brands in the product line. It helps the
company develop suitable & separate strategy for each of the product brand.
17. What is ‘value’ as in Marketing
‗Value‘ is an ability to satisfy a customer ‗need‘.
18. What is need & what are the different types of needs?
‗Needs‘ felt states of deprivation which may be physiological or psychological
The different needs are physiological/ physical, safety & security, love & belongingness, self-
esteem needs & self-actualization needs.
19. What does a marketing plan consist of?
A marketing plan consists of ‗marketing strategy‘ (which involves STP) and ‗marketing
program‘ (involving the 4Ps)
20. What are the commonly seen customer buying roles?
Initiator
Influencer
Decider
Buyer
User
21. What is ‘differentiation’ & ‘positioning’?
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Differentiation is the act of making a marketer‘s product distinct from that of its direct
competitors.
The act of designing a company‘s offering & image to occupy a distinctive position in the
minds of the target customer/ differentiating your offer in the minds of the customer
22. What are the functions of a distribution channel?
 Information function
 Communication function
 Financial function
 Ownership function
 Risk bearing
 Storage function
 Assortment building
 Bulk breaking
23. What is retailing & wholesaling?
Retailing: All activities involved in selling G/S to final consumers for their personal non-
business use.
Wholesaling: Includes all activities primarily involved in selling G/S to those buying for resale
or business use
24. What are the various elements of a promotional mix?
 Advertising
 Sales promotion (consumer & Trade)
 Direct Marketing
 Interactive marketing (digital)
 PR/ Publicity
 WoM/ Viral
 Personal selling
 Events
25. What is communication?
Meaningful ‗exchange of information‘, to induce attitudinal change. Attitude consist cognition,
affection & conation (awareness, interest & desire, action).
26. What are PoPs & PoDs?
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PoPs are ‗points of parity‘ which are the common features that a product shares with its
competitors and ensures its category membership. PoDs are ‗points of difference‘ which are
features that make the product distinct from its competitors.
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HUMAN RESOURCE MANAGEMENT.
What is Human Resource Management?
Ans. HRM refers to acquisition, retention, motivation and maintenance of Human Resources in
an organization.
2. What is the scope of HRM?
Ans. Personnel aspect, Welfare aspect, Industrial relations aspect
3. What are the functions of HRM?
Ans. Managerial Functions: Planning, Organising, Directing and Controlling
Operative functions: Procurement, Development, Appraisal and Compensation, Integration

and Maintenance, IR, HRIS
4. What is Strategic HRM?
Ans. Strategic HRM is the process of defining how the organization‘s goals will be achieved
through people by means of HR strategies and integrated HR policies and practices.
5. List the SHRM Tools.
Ans. Strategy map, The HR scorecard, Digital dashboard
6. What is the difference between HRM and HCM?
Ans.
HRM: 'people are (treated as) a significant cost and should be managed accordingly
HCM: 'people are value adders, not overheads
7. What is Human Resource Planning?
Ans. Human resource planning is the process by which the management strives to have the right
number and the right kinds of people at the right places, at the right time, to do things which
result in both the organization and the individual receiving the maximum long-range benefit.
8. What is Skills Inventory?
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Ans. A skills inventory is an assessment of the knowledge, skills, abilities, experience and career
aspirations of each of the current employees.
9. What is Job Analysis?
Ans. The procedure for determining the duties and skill requirements of a job and the kind of
person who should be hired for it. Job analysis produces information used for writing job
description (a list of what the job entails) and job specification (what kind of people to hire for
the job).
10. What are the methods of collecting Job Analysis data?
Ans. Job performance, Personal observation, Critical incidents, Interview, Panel of experts, Diary
method, Questionnaire method
11. What is Job Description and Job Specification?
Ans. Job Description: A written statement of what the job holder does, how it is done, under what
conditions it is done and why it is done.
Job Specification: Job specification summarises the human characteristics needed for
satisfactory job completion.
12. What is the difference between Recruitment and Selection?
Ans. Recruitment: Recruitment is the process of locating and encouraging potential applicants to
apply for existing or anticipated job openings.
Selection: Selection is the process of picking individuals who have relevant qualifications to fill
jobs in an organisation.
13. What are the sources of recruitment?
Ans. Internal sources: Existing employees, retrenched employees, retired employees,

dependents of deceased employees.
External sources: Employees working in other organisations; job aspirants registered with
employment exchanges; students from reputed educational institutions; candidates referred by
unions, friends, relatives and existing employees; candidates forwarded by search firms and
contractors; candidates responding to ads; unsolicited applications
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14. What is a selection test? What are the types of Selection Tests?
Ans. Selection test: A standardised, objective measure of a person‘s behaviour, performance or

attitude.
Types of tests: Intelligence tests, Aptitude tests, Personality tests, Achievement test, Simulation
test, Assessment centre.
15. What is an Interview? What are the types of an Interview?
Ans: Interviewer tries to obtain and synthesize information about the abilities of the interviewee
and the requirements of the job.
Types:
Non-directive interview
Directive or structure interview
Situational interview
Behavioural interview
Stress interview
Panel interview
16. What is Placement?

Ans: Placement is the actual posting of an employee to a specific job. It involves assigning a
specific rank and responsibility to an employee
17. What is Induction?

Ans. Orientation or induction is the task of introducing the new employees to the organisation
and its policies, procedures and rules.
18. What is Training?

Ans. Training is the act of increasing the knowledge and skills of an employee for performing a
particular job.
19. What is the difference between Training and Development?

Ans.
Training Development
Fix current skill Prepare for future work demands
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deficit
Specific job related General knowledge
Immediate Long term
20. List the benefits of Training.

Ans.
1. Eliminates wastage
2. Fewer accidents
3. Trained workers can show superior performance
4. Enables employees secure promotions easily
21. What is learning?
Ans. Any relatively permanent change in behaviour that occurs as a result of experience.
22. List Learning Principles.

Ans.
1. Modelling
2. Motivation
3. Reinforcement
4. Feedback
5. Spaced practice
6. Whole learning
7. Active practice
23. List the areas where Training can be provided.

Ans.
1. Knowledge
2. Technical skills
3. Social skills
4. Techniques
24. What are the types of training?
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Ans.
1. Skills training
2. Refresher training
3. Cross-functional training
4. Team training
5. Creativity training
6. Diversity training
7. Literacy training
25. List the steps in Training.

Ans.
1. Identifying training objectives
2. Getting ready for the job
3. Preparation of the learner
4. Presentation of operations and knowledge
5. Performance try out
6. Feedback
26. How are training needs identified?
Ans.
1. Organisational analysis: Resource utilisation analysis and Environmental scanning

2. Task or role analysis: detailed examination of job, its components, various operations and
conditions under which it is performed.
3. Person analysis: Whether performance is satisfactory and training is required, whether
the employee is capable of being trained, whether poor performers need to be replaced.
27. List methods of training
Ans.
On the job Off-The-Job Training
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Job Instruction Vestibule training

Training
Coaching Role playing
Mentoring Lecture method
Position rotation Conference/ Discussion
approach
Apprenticeship Programmed instruction
Committee
Assignments
28. What is Training evaluation? And Kirkpatrick’s model of evaluation?
Ans.
Training evaluation: Any attempt to obtain information on the effects of training performance and
to assess the value of training in the light of that information.
Kirkpatrick‘s model: Reaction, Learning, Behaviour, Results.
29. What is development?
Ans. Executive or management development is a planned, systematic and continuous process

of learning and growth by which managers develop their conceptual and analytical abilities to
manage.
30. What are the methods to develop the managerial skills?
Ans.
Decision Interpersonal Job Organisational General Specific

making skills knowledge knowledge knowledge individual
skills needs
In-basket Role play On-the-job Job rotation Special Special
exercise experiences courses projects
Business Sensitivity Coaching Multiple Special Committee
game training management meetings assignments
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Case study Behaviour Understudy Specific

modelling readings
31. What is Career, Career planning, Career development Career Management?
Ans. Career: A career is a sequence of positions held by a person during the course of a lifetime.
Career planning: Process by which one selects career goals and the path to these goals.
Career development: Personal actions one undertakes to achieve a career plan.
Career management: Includes both organisational actions and individual efforts aimed at setting
career goals, formulating and implementing strategies and monitoring the results.
32. What are Career stages?
Ans. Exploration, Establishment, Mid-career, Late career, Decline.
33. What is Succession Planning?
Ans. The process of ensuring a suitable supply of successors for current and future senior or key
jobs arising from business strategy, so that the careers of individuals can be planned and
managed to optimise the organisations‘ needs and the individuals‘ aspirations.
34. What is Performance management?
Ans. Performance management is a strategic and integrated process that delivers sustained
success to organisations by improving the performance of the people who work in them and by
developing the capabilities of individual contributors and team.
35. What is Performance appraisal?
Ans. Performance appraisal is the systematic evaluation of the individual with regard to his or her
performance on the job and his potential for development.
36. List steps in Performance appraisal.

Ans.
1. Define objectives of appraisal
2. Establishing job standards
3. Designing an appraisal programme
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4. Appraise performance
5. Performance interview
6. Use appraisal data for appropriate purpose
37. What is to be measured in performance appraisal?

Ans.
1. Contribution to organisational objectives like production, savings in cost, return on capital,
etc.
2. Behaviours which measure observable physical actions, movements
3. Job related results
4. Traits (personal characteristics)
38. List the methods of Performance appraisal
Ans.
Traditional methods Modern methods

Confidential report MBO
Essay evaluation Graphic rating scale
Critical incidents Behaviorally anchored rating
scale
Checklists Human Resource Accounting
Forced choice method Assessment centre
Ranking 360 degree appraisal
Paired comparison
Forced distribution
39. What is the purpose of Appraisal feedback?
Ans. The employee gets useful feedback information about how effectively and efficiently he is
able to discharge the assigned duties.
40. List the problems with Performance appraisal.

Ans. I. Judgement errors
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1. First impressions (primacy effect)

2. Halo effect
3. Horn effect
4. Leniency
5. Central tendency
6. Stereotyping
7. Recency effect
II. Poor appraisal forms
III. Lack of rater preparedness
41. What is Potential appraisal?

Ans. Potential appraisal is a future-oriented appraisal whose main objective is to identify and
evaluate the potential of the employees to assume higher positions and responsibilities in the
organizational hierarchy.
42. What is Job evaluation?

Ans. Job evaluation is a process of determining the relative worth of the various jobs within the
organisation, so that differential wages may be paid to jobs of different worth.
43. What are Compensable factors?

Ans.
1. Skills – mental and physical
2. Experience
3. Efforts and initiative
4. Working conditions
5. Responsibilities
6. Supervision required
44. What are the methods of Job evaluation?

Ans.
Non-quantitative methods Quantitative methods
Ranking method Point system
Job grading / classification Factor-comparison method
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method
45. What is Wage and salary administration?

Ans. Wage & Salary Administration is the group of activities involved in the development,
implementation& maintenance of a pay system.
46. What is Wage and salary?
Ans. Wage: a fixed regular payment earned for work or services, typically paid on a daily or
weekly basis.
Salary: a fixed regular payment, typically paid on a monthly basis, made by an employer to an
employee, especially a professional or white-collar worker.
47. List the factors affecting wage and salary administration.
Ans.
External Internal
Demand and supply Ability to pay
Cost of living Job requirements
Trade union‘s bargaining Managerial strategy
power
Government legislation The employee (performance,
seniority, experience, potential,
luck)
Social factors
Economy
Technological development
Prevailing market rates
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48. What are the types of Wage Payment?
Ans. Time wage system: Wages are paid according to the time spent by the workers irrespective
of his output of work done.
Piece wage system: Wages are based on output and not on time.
49. What are the wage concepts?
Ans. Minimum wage: the minimum amount of remuneration that an employer is required to
pay wage earners for the work performed during a given period, which cannot be reduced
by collective agreement or an individual contract.
Fair wage: Fair wage is the wage which is above the minimum wage but below the living wage.
The lower limit of the fair wage is obviously the minimum wage; the upper limit is set by the
capacity of the industry to pay.
Living wage: A living wage is one which should enable the earner to provide for himself and his
family not only the bare essentials of food, clothing and shelter but a measure of frugal comfort
including education for his children, protection against ill-health, requirement of essential social‘
needs and a measure of insurance against the more important misfortunes, including old-age.
50. What is an Incentive?
Ans. Incentive refers to performance linked compensation paid to improve motivation and
productivity of employees.
51. List the types of Incentives.

Ans.
Earnings vary in the Earnings vary less Earnings vary Earnings differ at
same proportion as proportionately than proportionately different levels of
output output more than the output
output
Straight Piece Work Halsey plan High Piece Rate Taylor‘s Differential
method method Piece Rate Method
Standard Hour Rowan plan High Standard Hour Merrick Differential
Method method Piece Rate method
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Barth Scheme Gantt Task Method

Bedeaux Plan Emerson‘s Efficiency
Method
52. What is Profit sharing?
Ans. A method of remuneration under which an employer undertakes to pay his employees a
share in the net profits of an enterprise in addition to regular wages.
53. What are Fringe Benefits? Give examples.
Ans. Fringe benefits are indirect compensation because they are usually extended as a condition
of employment and are not directly related to performance.
Types:
1. Payment for time not worked: Paid holidays, Shift premium, holiday pay, paid vacation.
2. Employee security: Retrenchment compensation and Lay off compensation
3. Safety and health
4. Workmen‘s compensation
54. What is Employee Welfare?
Ans. Employee welfare means anything done for the comfort and improvement, intellectual or
social, of the employees over and above the wages paid which is not a necessity of the industry.
55. What are the types of Employee Welfare?
Ans. Internal: Drinking water, Toilets, Crèches, Washing facility, Rest rooms, Uniform and
protective clothing, Recreation facility, Canteen, First aid.
External: Housing, Education facility, Maternity benefits, Transportation, Sports facility, Leave
travel, Vocational training, Holiday homes, Co-operative stores, Social insurance.
56. What are the Statutory Welfare measures given in Factories Act, 1948?
Ans.
1. Washing facilities to male and female workers separately.
2. Facilities for storing and drying clothes.
3. Facilities for occasional rest for workers who work in standing position for long hours.
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4. First aid boxes for every 150 workers and an ambulance facility for more than 500
workers.
5. Canteens, where there are more than 250 workers.
6. Shelters, rest-rooms and lunch rooms where over 150 workers are employed.
7. Creche, if 30 or more workers are employed.
8. Welfare officer, if 500 or more workers are employed
57. What is Flexible benefits program?
Ans. A cafeteria plan, also called a flexible benefit plan, allows employees to choose from a
menu of optional benefits the ones that best fit their individual needs. Thus, employees can
customize their benefit packages.
58. What is Quality of Work Life?
Ans. Quality of work life (QWL) refers to the favourableness or unfavourableness of a job
environment for the people working in an organisation.
59. List the factors affecting QWL?
Ans.
1. Attitude (Skills, experience, energy, job involvement, etc)

2. Environment (awareness of working conditions)
3. Opportunities (for learning, self-development, recognition)
4. Nature of job (being alert)
5. People (boss, peers, subordinates, customers, etc)
6. Stress level
7. Career prospects
8. Challenges (job related and creates interest)
9. Growth and Development
10. Risk involved and reward
60. List QWL efforts are taken by the management of an organisation?
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Ans. Employees‘ involvement, Quality Circles, Sociotechnical systems, Co-determination, Self-

managed work teams, Suggestion programs, Open door policies.
61. What is Industrial Relations?
Ans. The Industrial Relations or IR encompasses the relationship between the management
and workmen and the role of a regulatory body to resolve any industrial dispute.
62. Who are the parties to Industrial Relations?
Ans. Employer, Employees, Government.
63. What are the reasons for Poor Industrial Relations in India?
1. Ans. Economic factors: Poor wages and poor working conditions

2. Organisational factors: faulty communication system, non-recognition of trade unions,
unfair practices, violation of collective agreements.
3. Social causes: Dissatisfaction with jobs and personal life, Factory system and
specialisation have made worker a subordinate to the machine.
4. Psychological causes: Lack of job security, poor organisational culture, non-recognition of
merit and performance, poor interpersonal relations.
5. Political causes: Political nature of unions, multiple unions, inter-union rivalry and outside
leadership.
64. List the approaches to IR?
Ans. Unitary approach, Systems approach, Pluralistic approach, Marxist approach, Strategic
management approach, HRD approach
65. What is an Industrial Dispute?
Ans. Industrial dispute means any dispute or difference between employers and employers or
between employers and workmen or between workmen and workmen, which is connected with
the employment or non-employment or the terms of employment or with the conditions of labour
of any person.
66. What are the causes of Industrial Disputes?
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Ans. Economic causes include: (i) Wages, (ii) Bonus, (iii) Dearness allowance, (iv) Conditions of
work and employment, (v) Working hours, (vi) Leave and holidays with pay, and (vii) Unjust
dismissals or retrenchments.
Non-economic causes include: (i) Recognition of trade unions, (ii) Victimisation of workers, (iii) Ill-
treatment by supervisory staff, (iv) Sympathetic strikes, (v) Political causes, etc.
67. List the types of Industrial disputes?
Ans. Strike, Lockout, Gherao, Picketing and Boycott.
68. List the Methods to resolve Industrial Disputes.
Preventive measures: Grievance Settlement Authority, Welfare Officers, Standing orders, Profit
sharing, Collective bargaining, Recognition of an Union, Code of Discipline.
Settlement measures: Conciliation (conciliation officer, Board of Conciliation), Court of enquiry,

Arbitration (Voluntary arbitration, Compulsory arbitration), Adjudication (Labour court, Industrial
tribunal, National tribunal).
69. What is Collective bargaining?
Ans. Collective bargaining is a process in which management and employee representatives

meet and negotiate the terms and conditions of employment for mutual benefits.
70. List the steps in Collective bargaining.

Ans.
1. Preparation for negotiation
2. Determination of bargaining topics
3. Negotiation
4. Negotiated agreement
5. Ratification of agreement
6. Implementation of agreement.
71. What is a Grievance?
Ans. Grievance is a state of dissatisfaction over some issues related to employment.
72. What are the causes of grievance?
Ans:
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1. Wages and Working Conditions

2. Supervision
3. Management Policies and Practices
4. Maladjustment of employee
73. What is a Grievance Redressal procedure?
Ans. It is a mechanism to settle grievances. The stages include
Stage 1: The aggrieved employee shall represent his grievance either in person or in writing to
the Welfare Officer or any other Officer in the Dept, which should be acknowledged. A written
reply should be sent to the worker
Stage 2: If the employee is not satisfied then he can submit his grievance to the HOD who has to
study the matter and reply to the employee.
Stage 3: If the employee is not satisfied, he may request the Manager/HoD to forward his
Grievance to the Grievance Committee. The recommendations of the Grievance Committee shall
be communicated to the concerned workmen.
Stage 4: If the employee is not satisfied with the reply given by the Grievance Committee, he can
represent the matter to the Corporate level.
74. What is discipline?
Ans. Discipline is a force that prompts an individual or a group to observe the rules, regulations
and procedures which are deemed to be necessary to the attainment of an objective.
75. What are the types of Discipline?
Ans. Positive discipline (preventive, determinative, or self-discipline): Involves actions taken to

encourage employees to follow rules and standards so that infractions do not occur.
Negative discipline: (enforced, corrective, punitive or autocratic discipline): involves the use of
external force or the threat of its use to restrain employees from engaging in behaviours which
are contrary to rules and standards.
76. What is indiscipline?
Ans. The departure from the prescribed disciplined behaviour. It is an act of engagement in
behaviours that have been specified as undesirable.
77. What is Indiscipline?
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Ans. Indiscipline: the departure from the prescribed disciplined behaviour. It is an act of
engagement in behaviours that have been specified as undesirable.
78. How to prevent Indiscipline?
Ans.
1. Specify behaviour expected.

2. Proper training and counseling of employees.
3. Effective grievance handling machinery.
4. Proper reinforcement of positive behaviour.
5. Demonstration effect (by the management – appropriate behaviour)
79. What is Disciplinary action?
Ans. Disciplinary actions means taking corrective actions including administration of punishment
for indisciplined behaviour so that the employee concerned does not repeat the same in future.
80. What is Social Security?
Social benefits are those benefits which are provided during and after retirement. These provide
social security to employee at the event of accident, sickness and child birth, and financial
security during the services and after retirement.
81. List Social Security benefits given to employees in India.
Ans.
1. Gratuity ( Maximum Rs. 20 lakhs)

2. Employees Provident Fund (Employee 12% and Employer 12%)
3. Employee Pension Scheme (8.33% of employer‘s contribution to EPF + 1.16% of
employee‘s pay from the government)
4. Workmen‘s Compensation (Accidental injury and Occupational disease) (Minimum for
Death Rs. 1,20,000; Minimum for permanent total disablement is Rs.1,40,000; maximum for
funeral expenses Rs. 5000)
5. ESI
1. Medical benefit (treatment of self and members of families)
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2. Sickness benefit (payment for absence due to sickness)

3. Disability benefit (arising due to accidents/ occupational disease in course of
employment)
4. Maternity benefit (payment for anti-natal and/or post-natal periods of absence)
5. Dependents‘ benefit (payable to a dependent if an employee dies due to an injury
at employment)
6. Funeral benefit (one time payment of Rs. 10,000)
82. What is Participative Management?
Ans. Participative management is a system where workers and management share important
information with each other and participate in decision making
83. What are the forms of Participation?
Ans.
1. Discussions : on specific problems
2. Group decision making: delegation of power to the group
3. Labour management co-operation: The representatives of the management and workers
discuss the issues involved and find suitable solutions (Collective bargaining).
4. Suggestion system: Workers submit their suggestions in writing to the management
which are scrutinised in their absence.
5. Employee representatives on Board of Directors
6. Profit sharing and share ownership.
84. What is HR Analytics?
Ans. HR Analytics is the application of mathematical, statistical and data mining techniques to
Human Resources and business data to explore concepts and ideas and solve or respond to HR
related business problems.
85. What is HR Metrics? Give examples.
Ans. Human Resource metrics are measurements that help to track key areas in HR data. Some
metrics are as follows:
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1. Resignation rate: How many employees resigned in a given period, as a percentage of the
overall workforce?
2. Time to recruit: How long did a vacancy stand empty before a new hire accepted an offer
of employment?
3. First-year staff turnover rate: How many new hires left in year one, as a percentage of the
number of new hires that year?
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OPERATIONS MANAGEMENT
1. What is Operations Management?
2. Differentiate between a product and a service
3. Name the different types of Productive systems
4. What is a Product layout and a Process Layout?
5. What is Time study?
6. What is Method Study?
7. What is Value Analysis? What is the difference between Value Analysis and Value
Engineering?
8. What do you mean by Hazard? What are the different types of Industrial Hazards?
9. What do the 3 sides of a fire triangle represent?
10. What are the different types of Maintenance
11. What is the difference between ISI and ISO
12. What is the full form of ISO?
13. What are control charts? Why do firm make control charts
14. When do you say that a process is in control and when not in control from Quality
management perspective?
15. What are the factors to be considered while making a factory location decision?
Answers
1. Operations management is defined as the design, operations and improvement of the
transformation process, which converts the various inputs to the desired outputs of
products and services.
2. Difference between an manufactured product and a service
Product Service
Tangible Intangible
Longer life Perishable
Inventoriable Availability ensure by keeping the system
open for service
Minimum or no contact with customer High contact
Large units can take advantage of Not possible
economies of Scale
Demand can be shifted from one Demand cannot be shifted
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production facility to other

Demand varies weekly monthly yearly Demand varies hourly daily and weekly
basis
Market served can be local regional Market served is usually local
national or international
3. Different types of productive system

a. Continuous and Intermittent
b. Under continuous
i. Mass production system
ii. Assembly types systems
iii. Process systems
c. Under Intermittent
i. Job productive system
ii. Batch productive system
4. Product and process layout – Layout is how machines are arranged
a. Product layout –All the machines required for manufacture of that particular
product is only is made available and arranged (layout) in the sequence of its
requirement in the manufacturing process. Also called line layout
b. Process layout – All the machines doing a specific type of work (functions) are
grouped together in one place. Also called the functional layout.
5. Time study – A study to establish the time for a qualified worker to carry out a specified
job at a desired level of performance. In other word a study to determine how long it
would take to perform a particular job
6. Method study - Is the systematic recording and critical examination of existing and
proposed ways of doing work as to develop / apply easier/ more effective methods and to
reduce costs.
7. Value Analysis - Value Analysis is an organized procedure for efficient identification of
and elimination of unnecessary costs. Developed by Lawrence D Miles in 1947. Value
analysis is done for an existing job while Value engineering is done during the design of a
new job.
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8. Hazard – Is a situation that poses a level of threat to life, Property or environment. Types
of Hazards are – Physical, Chemical, biological, Electrical, Fire, mechanical hazard etc.
9. The three sides of a fire triangle represent the three ingredients essential for a fire
incident to happen. They are a fuel, air (O2) and Heat (Temperature).
10. Different types of Maintenances are –
a. Break down maintenance
b. Preventive Maintenance
c. Predictive Maintenance
d. Advanced Maintenance types like- Reliability centered Maintenance, Total
Productive maintenance, Design out maintenance etc.
11. ISI – is a Product certificate while ISO is a system certificate
ISI ISO
Is a Product certificate ( Given to one Is a System certificate. Is a certificate of
product of an organization) quality given to the Organization system
that produces the products
Bureau of Indian Standard is the authority Certified by ISO and international
for issuing the certificate. Issued after organization on recommendation by
inspection by BIS officials. authorized third certifying agencies.
Certificate valid till for the valid shelf life of Certificate valid only for 3 years
the product.
12. Full form of ISO – ISO does not have a full form – It is a Greek word meaning equal and
is adopted by the international Organization for standardization, a Geneva based non-
governmental and non-profitable organization to represent itself and the standards
developed by them.
13. Control charts are pictorial representations of the variations in value of sample data from
a process. It is used in quality management to evaluate whether the process is in control
or out of control.
14. A process is said to be in control when the variations in the parameters of the sample
data from the process is due to non-assignable causes, i.e. they are purely random. It is
out of control if the variations can be attributed to assignable causes
15. Factors to be considered for location decision of a production facility are
a. Proximity to raw materials
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b. Proximity to markets
c. Availability of Skilled labour
d. Availability of Good transportation facility and Infrastructure
e. Favourable Government Policies
f. Availability of cheap land
g. Availability of power
h. Low construction cost.
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OPERATIONS RESEARCH
1. Operations research (OR):

It is an analytical method of problem-solving and decision-making that is useful in the
management of organizations. In operations research, problems are broken down into basic
components and then solved in defined steps by mathematical analysis.
2. Constraint:
An equation or inequality relating the variables in an optimization problem.
3. Feasible solution:
A solution satisfying the constraints of a mathematical programming problem.
4. Infeasible solution:
A solution to a mathematical programming problem where constraints, specifically the non-
negativity constraints of the problem, have not all been satisfied.
5. Basic feasible solution:
A basic solution that satisfies the constraints of a linear programming problem, including the non-
negativity constraints.
6. Artificial variable:
An auxiliary variable introduced into an equality constraint at the start of the simplex method of
linear programming, to provide an identity basis required to initiate the procedure.
7. Assignment problem:
A special case of the transportation problem where in the solution the variables xij are allowed to
take only the values 0 and 1.
8. Simplex method :
An algorithm allowing a systematic search for an optimal solution to an LP problem (if one
exists), from among the basic feasible solutions.
9. Slack variable:
An auxiliary variable introduced to convert an inequality constraint to an equation.
10. Theory of games:
The theory of games deals with games involving two or more players in which the numerical
outcomes for each player, for every combination of permissible moves, are numerically
predetermined.
11. Strategy:
The selection of options for one of the players in each possible situation.
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12. Two-person game:

A game between two players.
13. Zero-sum game:
A game for two or more players where the sum of the losses equals the sum of the gains.
14. Decision tree:
A pictorial representation of a decision problem.
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MANAGEMENT INFORMATION SYSTEM
1. What are the different types of information systems in organizations?

Ans : Transaction Processing Systems (TPS), Management Information Systems (MIS),
Decision Support Systems (DSS), Executive Information Systems (EIS)
2. Give examples of TPS

Ans: Point of Sale Systems (POS), reservation systems, sales force systems
3. What is the difference between a database and a data warehouse?
Ans: A data warehouse is a particular type of database, which focus on a very specific
application: storing, filtering, retrieving and analyzing huge volumes of information. It is a
central repository of data & is mostly used to facilitate reporting and analysis. Used for Online
Analytical Processing (OLAP)
Databases are usually structured. It is an organized collection of data. DBMS is designed to
allow the definition, creation, querying, update, and administration of database. Used for
Online Transactional Processing (OLTP)
4. What is data mining?

Ans: Data mining is the process of discovering patterns in large data sets to identify patterns
and establish relationships to solve problems through data analysis. Data mining tools allow
enterprises to predict future trends. The techniques used are classification, clustering &
forecasting
5. What is the role of KMS in organization?

Ans: Knowledge management systems refer to any kind of IT system that stores and
retrieves knowledge, improves collaboration, locates knowledge sources, mines repositories
for hidden knowledge, captures and uses knowledge
Robust solutions for knowledge management include: Document management systems,

Content management systems (CMSs), Social networking tools etc.
6. What is BPR?
Ans: BPR is the Fundamental rethinking and Radical redesign of Business Processes to
achieve Dramatic improvements in critical measures of performance such as Cost, Quality,
Service and Speed.
7. What are the security threats faced by information systems?

Ans: Viruses, hacking, cracking, phishing, pharming, denial of services(DoS),sniffing,
spoofing etc.
8. What is encryption?
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Ans: Encryption is the process of encoding a message or information in such a way that only
authorized parties can access it. In an encryption scheme, the intended information or
message, referred to as plaintext, is encrypted using an encryption algorithm – a cipher–
generating cipher text that can be read only if decrypted
Symmetric encryption uses the same key for enciphering and deciphering the message to be
transmitted . Asymmetric encryption has 2 pairs of keys
9. Explain public key and private key

Ans: Public key is made available to everyone via a publicly accessible repository or
directory. On the other hand, the Private Key must remain confidential to its respective
owner.
10. What is cloud computing?

Ans: Cloud computing is the delivery of computing services—servers, storage, databases,
networking, software, analytics and more—over the Internet (―the cloud‖). Companies offering
these computing services are called cloud providers and typically charge for cloud computing
services based on usage, similar to how you are billed for water or electricity at home.
11. Explain data, information, knowledge with examples
Ans: Data is unprocessed facts and figures without any added interpretation or analysis.
Information is data that has been interpreted so that it has meaning for the user
Knowledge is a combination of information, experience and insight that may benefit the
individual or the organization
12. What is an ERP? Give names of some ERP in the market

Ans: A cross functional enterprise system driven by an integrated suite of software modules
that supports the basic internal business processes of a company. Gives the company an
integrated real time view of its core business processes
SAP, ORACLE, Microsoft Dynamics, NetSuite, Sage ERP
13. What is a firewall?

Ans: A firewall is a network security system that monitors and controls incoming and
outgoing network traffic based on predetermined security rules. A firewall typically establishes
a barrier between a trusted internal network and untrusted external network, such as
the Internet.
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ORGANIZATIONAL BEHAVIOUR
1. What is Perception?
Perception is a process by which individuals organize and interpret their sensory impressions
in order to give meaning to their environment. Act of seeing what is there to be seen.
Depends on the individual, object and the situation.
2. Explain Maslows Hierarchy of Needs?
Needs were categorized as five levels of lower- to higher-order needs. Individuals must
satisfy lower-order needs before they can satisfy higher order needs. Satisfied needs will no
longer motivate. Motivating a person depends on knowing at what level that person is on the
hierarchy. Lower-order (external): physiological, safety
Higher-order (internal): social, esteem, self-actualization
3. What is personality?
Sum total of ways in which an individual reacts and interacts with others. Unique
combination of an individual‘s characteristics that remain stable over time, influences a
person‘s behavior and determines individual styles. Personality determinants are heredity,
environment, social, and situational factors.
4. What is Attitude?
Evaluative statements – either favorable or unfavorable about objects, people or events.
Reflects how an individual feels about things.
5. What do you mean by Big five model?
Many contemporary personality psychologists believe that there are five basic dimensions of
personality, often referred to as the "Big 5" personality traits. The five broad personality traits
described by the theory are extraversion, agreeableness, openness, conscientiousness, and
neuroticism.
6. Explain the Need hierarchy theory
Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier
model of human needs, often depicted as hierarchical levels within a pyramid. Physiological
needs, Safety needs, Love and belongingness needs, Esteem needs, Self-actualization
needs
7. What is LMX theory?

The leader–member exchange (LMX) theory is a relationship-based approach to leadership
that focuses on the two-way (dyadic) relationship between leaders and followers. It suggests
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that leaders develop an exchange with each of their subordinates, and that the quality of
these leader–member exchange relationships influences subordinates' responsibility,
decisions, and access to resources and performance. Relationships are based on trust and
respect and are often emotional relationships that extend beyond the scope of employment.
Leader–member exchange may promote positive employment experiences and augment
organizational effectiveness. It is widely used by many managers and is replacing many of its
predecessors.
8. What is FIRO B Technique? Why is it used?
Fundamental Interpersonal Relations Orientation (FIRO) is a theory of interpersonal relations,
introduced by William Schutz in 1958. This theory mainly explains the interpersonal
interactions of a local group of people. The theory is based on the belief that when people get
together in a group, there are three main interpersonal needs they are looking to obtain –
affection/openness, control and inclusion. Schutz developed a measuring instrument that
contains six scales of nine-item questions, and this became version B (for "Behavior"). This
technique was created to measure how group members feel when it comes to inclusion,
control, and affection/openness or to be able to get feedback from people in a group.
9. What is Johari window?
The Johari window is a technique that helps people better understand
their relationship with themselves and others. It was created by
psychologists Joseph Luft (1916–2014) and Harrington Ingham
(1916–1995) in 1955, and is used primarily in self-help groups and
corporate settings as a heuristic exercise. Luft and Ingham called
their Johari Window model 'Johari' after combining their first names, Joe and Harrington.
10. Explain the concept of Transactional Analysis
Transactional analysis (TA) is a psychoanalytic theory and method of therapy wherein social
transactions are analyzed to determine the ego state of the patient (whether parent-like,
child-like, or adult-like) as a basis for understanding behavior.In transactional analysis, the
patient is taught to alter the ego state as a way to solve emotional problems. The method
deviates from Freudian psychoanalysis which focuses on increasing awareness of the
contents of unconsciously held ideas. Eric Berne developed the concept and paradigm of
transactional analysis in the late 1950s.
11. What do you mean by Halo effect?
The halo effect, at the most specific level, refers to the habitual tendency of people to rate
attractive individuals more favorably for their personality traits or characteristics than those
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who are less attractive. Halo effect is also used in a more general sense to describe the
global impact of likable personality, or some specific desirable trait, in creating biased
judgments of the target person on any dimension. Thus, feelings generally overcome
cognitions when we appraise others."
12. Explain the steps in group formation
Groups are a common arrangement in today's business environments. Any manager who
works with or supervises groups should be familiar with how they develop over time. Perhaps
the best-known scheme for a group development was advanced by Bruce Tuckman in 1965.
Initially, Tuckman identified four stages of group development, which included the stages of
forming, storming, norming and performing. A fifth stage was later added by Tuckman about
ten years later, which is called adjourning. It is believed that these stages are universal to all
teams despite the group's members, purpose, goal, culture, location, demographics and so
on.
13. What is kinesics?
Kinesics is the interpretation of body motion communication such as facial expressions and
gestures, nonverbal behavior related to movement of any part of the body or the body as a
whole.
14. What do you mean by emotional intelligence?
Emotional intelligence is the ability to identify and manage your own emotions and the
emotions of others. It is generally said to include three skills: emotional awareness; the ability
to harness emotions and apply them to tasks like thinking and problem solving; and the ability
to manage emotions, which includes regulating your own emotions and cheering up or
calming down other people.
15. Explain the classical conditioning and operant conditioning
Classical Conditioning
First described by Ivan Pavlov, a Russian physiologist
Involves placing a neutral signal before a reflex
Focuses on involuntary, automatic behaviors
Operant Conditioning
First described by B. F. Skinner, an American psychologist
Involves applying reinforcement or punishment after a behavior
Focuses on strengthening or weakening voluntary behaviors
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ENTRPRENERURSHIP AND PROJECT MANAGEMENT

1. What is Entrepreneurship?
Entrepreneurship is the art of converting ideas into business. Is the dynamic process of
generating and converting new ideas into successful business ventures?
2. Who is an Entrepreneur?
An entrepreneur is a dynamic individual who has
 Creative talent
 Takes initiatives
 Assembles necessary resources
 Risks his own money
 Introduces something useful in the market &
 Is rewarded with profit or loss.
3. What are the characteristics of a successful Entrepreneurs
1. Passion for business
2. Product and customer focus
3. Tenacity despite failures
4. Execution intelligence
4. Explain Micro, Small and Medium enterprise for manufacturing and Service
Enterprises Manufacturing Service
Investment in Plant & Machinery Investment in Equipment
Micro Does not exceed 25 lakhs Does not exceed 10 lakhs
Small From 25 Lakhs to 5 Crore From 10 lakhs to 2 Crore
Medium Above 5 Crore Above 2 Crore.
5. What are the general forms of business

The general forms of business or the business structures for small businesses are
1. Sole proprietorship firm
2. Partnership firm
3. Limited Liability Partnership
4. One Person Company
5. Private limited company.
6. What are the three stages of any small industry
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The three stages of any industry are

1. Incorporation and Set up stage
2. On-going operations
3. Exit
7. What are the five forces in Porters five force model? What is the use of this model
The five forces are
1. Bargaining power of Suppliers
2. Bargaining power of Customers
3. Threat of substitute products
4. Threat of new entrants
5. Rivalry among existing firms.
8. What are the quantitative and qualitative methods of Demand forecasts
Quantitative methods
1. Moving average methods
2. Exponential smoothening
3. Trend projection methods.
Qualitative Method
1. Expert opinion
2. Delphi method.
9. Define Project, Project management, Program and Portfolio
Projects- are temporary endeavors that create unique products, services or results. They
are complex, non-routine, and one time efforts constrained by time, money resources and
performance.
Project Management – Is the application of knowledge, skills, tools, and techniques to
meet and exceed the needs and expectations of stakeholders regarding the project
Program- Is a set of interrelated projects undertaken by the organization to achieve a
specific objective.
Portfolio- Is a set of projects not necessarily interrelated undertaken to achieve a strategic
business objective that created value to the stake holder.
10. What are the different types of appraisals general done for Project appraisal?
1. Market appraisal
2. Financial Appraisal
3. Socio Economic Appraisal
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4. Ecological appraisal.
11. What are the different means available for financing a project?
1. Share Capital
2. Term loans
3. Debentures
4. Deferred capital
5. Incentives and miscellaneous sources like Government incentives, promotional
Capital.
12. What is cost of capital, Cost of equity, and Cost of debt?
Cost of Capital – Cost of money used by the company to finance a project
Cost of Equity – Is the rate of return expected by the equity shareholders of the
company?
Cost of debt – Is the average interest rate payable for the money borrowed by the
company (debt payable by the company)
13. Define Risk
Risk is the negative consequence of an uncertain event. It is the adverse effect of
uncertainty on the expected outcome of an event.
14. What are the different approaches to managing risks?
1. Ignore the risk
2. Mitigate the risk
3. Remove the risk
4. Transfer the risk – means take insurance.
15. What are the different types of risks in a project
1. Project specific risks
2. Competitive risks
3. Industry specific risks
4. Market risks.
5. International risks
16. What are the different measures used in assessing the risks?
1. Range
2. Standard deviation
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3. Coefficient of variance
4. Semi variance
17. What is Systematic or Market risks
Is a risk that affects all projects alike and not limited to any specific project industry?
18. What is SCBA?
Is the short form of Social cost benefit analysis? It is a methodology developed for
evaluation of investment projects from the point of view of society or economy as a
whole.
19. Why is SCBA better method for evaluation of project?
Commercial evaluation of projects has the following discrepancies that affect the
accuracy of the project evaluation. The imperfections are
1. Market imperfections
2. Externalities
3. Taxes and subsidies
4. Concern for savings
5. Concern for re distribution
6. Merit wants
20. What is EIA? What are the steps in EIA
EIA is Environmental Impact Assessment. The steps in doing an EIA are
1. Screening
2. Scooping
3. Impact Identification
4. Impact prediction
5. Mitigation and enhancement
6. Reporting
21. What the five stages through which groups move while developing itself to successful
teams.
1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning
22. What is PERT and CPM?
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PERT – Programme Evaluation Review technique

CPM – Critical path method
23. Define a Project Critical path?

The longest path in a project schedule is the critical path. This path does not have any
slack and if any activity in the critical path is delayed then the entire project is delayed.
24. What are the different relationships that are used in MS project to link tasks?
1. Finish to start.
2. Start to start
3. Finish to start
4. Start to finish
25. What are the different Project organizations
Types of project organization
1. Functional organization
2. Divisional organization- Dedicated teams
3. Matrix organization
a. Weak
b. Balanced
c. Strong
26. What are the three major constraints of any project?
1. Cost
2. Time
3. Performance ( Quality)
27. Name two Project management software
1. MS projects
2. Primavera
28. What are the different techniques used in monitoring and controlling projects
1. Project S curve
2. Milestone Analysis
3. Tracking Gantt Chart
4. Earned value management.
Page 77 of 77

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SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT

COMPEHENSIVE VIVA VOCE SEM I & II

PRINCIPLES AND PRACTICES OF MANAGEMENT

Scientific management – F W Taylor, Administrative Management – Henry Fayol

1. Who proposed Management Process School?

An integrating approach which considers management in its totality based on empirical

4) Proactive planning and reactive planning

17. What is MBO?

2. Define employees objectives

19. What is organizing?

21. List the principles of organizing.

22. What is an Organization Structure?

6) Management development: The more management training and development

38. What is Leadership?

43. What is control and controlling?

1) Budgetary control: a system which uses budget as a means of planning and

An information system can be any organized combination of people, hardware,

VI. Courtesy – Be sincere, tactful, thoughtful and appreciative – use expressions

Listening helps to gain information, to develop trust, to reduce conflict, to motivate

7) What is Fiscal Policy? What are its objectives?

• Healthy balance of payments

28) Define total revenue, total cost, and profit

QUANTITATIVE TECHNIQUES FOR MANAGEMENT

A matrix is defined as an ordered rectangular array of numbers.

2. What does transposing of a matrix mean?

Secular Trends (or General Trends)

1. How environmental awareness support sustainable business?

2. What is Green Marketing and its scope for future?

3. How clean technologies support business development?

4. Strategies for achieving sustainable development for a business professional

5. How Environment management system becomes useful for business?

An Environmental Management System or EMS can be a powerful tool to help businesses,

6. What is eco- friendly manufacturing?

7. How Biodiversity is of use in environment friendly business?

8. What is fair trade and how it is important for marketing?

9. What is carbon credit and how it can be used in trading?

10. What is hierarchy in waste management?

ISO 14001 sets out the key elements namely:

• Implementation and operation

• Checking and corrective action

The concept of continual improvement is a key component of the environmental management

12. Which are the pillars of Sustainable development concept?

13. How climate change can influence the business world?

ACCOUNTING FOR MANAGEMENT

2. State Accounting equation.

Bank reconciliation statement is a statement that depositors prepare to find,

well as segment wise reporting.

13. Expand IFRS

structure influencing profit. The following formula is used to calculate EBIT:

18. Do you think Accounting Standards are mandatory and why?

Where Dividend on Equity shares is paid only after the preference

whereas preference shareholders cannot avail this right.

2. State the primary objectives of Financial management?

To maximize the shareholders wealth and profit maximization.

3. State the decisions involved in Financial management.

a) Investment decision b) Financing decision c) Dividend decision

4. What is Working Capital ?

6. What is meant by capital budgeting decision?

8. How does production cycle effect working capital?

Working capital requirement is higher with longer production cycle.

9. What do you mean by floatation cost?

Cost incurred for raising funds.

10. What is capital structure of a company?