Stock Exchange

Question 1:
What are primary markets and secondary market?
Answer 1:
The sale of shares by a company directly to shareholders is primary market. The sale of securities via
stock exchange/broker is a secondary market.

Question 2:
What is the meaning of Stock Exchange?
LAnswer 2:
Stock exchange is an institution which helps/facilitates trading in shares/other securities.
Question 3:
What are the main functions of a stock exchange?
Answer 3:
The stock exchange keeps a close watch on the activities of companies and brokers.

Question 4:
What are the full forms of NSE, BSE, SENSEX, NIFTY and SEBI?
EAnswer 4:
NSE: National Stock Exchange.
BSE: Bombay Stock Exchange.
SENSEX: Sensitive Index.
NIFTY: National Stock Exchange Fifty Shares Index.
SEBI: Securities and Exchange Board of India.

Question 5:
What are the main functions of SEBI?
EAnswer 5:
Protective, regulatory and developmental functions.

Question 6:
What is Mid-cap, Large cap?
Answer 6:
Medium size companies and large size companies. Cap refers to capitalisation.

Question 7:
What is speculation?
Answer 7:
Purchasing shares not with a view to retain but to make profits due to fluctuation and changes in the rates
of shares.
Question 8:
Who is a bull and who is a bear?
EAnswer 8:
A bull expects price to rise and a bear expects price to fall.

Question 9:
What is NYSE?
Answer 9:
NYSE: New York Stock Exchange.

Question 10:
When is circuit applied?
Answer 10:
When there is substanial increase or decrease in the price of a securities.
Question 11:
What is bridge financing?
Answer 11:
Borrowing money for business till the time share money is received.

Question 12:
How is stock exchange related to objective of financial managemnent?
Answer 12:
If the price of shares the stock market rises, the shareholders' wealth will rise.
Question 13:
How is Finance Market and Stock Exchange same?
Answer 13:
Finance Market is a broader term. Stock Exchange is a part of Finance Market.

Question 14:
Who is known as big bull in India?
EAnswer 14:
Rakesh Jhunjhunwala.

Question 15:
What is rights issue?
Answer 15:
When shares are offered to existing shareholders in proportion to shares already held by them.
Question 16:
What are bonus shares?
EaAnswer 16:
Capitalisation of reserves.
Question 17:
What is pro-rata allotment?
Answer 17:
Allotment of shares proportionately.

Question 18:
How do you calculate EPS?
Answer 18:
Profit available to equity shareholders divided by number of equity shares.
Question 19:
What is Dalal Street?
EaAnswer 19:
The place in Mumbai where Bombay Stock Exchange is situated.
Question 20:
What is the effect of payment of dividend on share prices?
Ema nswer 20:
Other things remaining same, if the rate of dividend is as per expectation of shareholders/prices will rise.
 Principles of Management
Question 1:
What does principles of management mean?
LAnswer 1:
Principles of Management are general guidelines for decision making by managers.

Question 2:
What are the contradictions between Fayol's Principles and Taylor Principles?
EAnswer 2:
Fayolemphasised unity of command whereas, Taylor emphasised functional foremanship.
Question 3:
Are the principles of Fayol's and Taylor complementary?
EAnswer 3:
Yes. Though their approaches are different.

Question 4:
What are the 7 important principles of Fayol.
Answer 4:
Division of labour, Authority and responsibility, Stability, Equity, Initiative, Espirit De Corps and
Subordination of individual interest to general interest.

Question 5:
What is mental revolution?
aAnswer 5:
Complete change of outlook on the part of managers and workers.
Question 6:
No discrimination on any ground refers to what principle?
auAnswer 6:
Equity.
Question 7:
When is gang plank used?
LAnswer 7:
In case of emergency.

Question 8:
Explain differential piece rate system.
Answer 8:
Ahigher piece rate for a worker who achieves the standard output or exceeds it.
Question 9:
Distinguish between Time Study and Motion Study.
Answer 9:
Time study is the study of time required by an average worker to complete a job. Motion study is the
study of movements of a worker to find if there are unnecessary actions.

Question 10:
What leads to specialisation?
Answer 10:
Division of labour.

Question 11:
Define authority and responsibility.
Answer 11:
Authority means right to use resources and extract obedience from the subordinate. Responsibility is the
obligation towards superiors for the work.

Question 12:
Distinguish between unity of command and unity of direction.
Answer 12:
Having one boss is unity of command. Having one boss to lead a group of persons having the same
objectives is unity of direction.

Question 13:
Which is better centralisation or decentralisation?
Answer 13:
In a small organisation centralisation is good. If a business is expanding it has to decentralise.
Question 14:
Suggestion system can lead to development of which aspect in the organisation.
LAnswer 14:
Initiative.

Question 15:
Distinguish between the principles of equity and remuneration.
Answer 15:
Equity means fairness and justice. It means no discrimination on any ground. Fair remuneration means
payment of wages depending upon the knowledge and skill of the worker and paying capacity of the
employer.
Question 16:
Replacing 'I' with 'we' is application of which principle?
EAnswer 16:
Espirit De Corps.
Question 17:
Suppose you are asked to give discount to customer by marketing manager but not by firm finance
manager, which principle has been violated?
EAnswer 17:
Unity of command.

Question 18:
Which technique helps to avoid unnecessary labour cost?
Answer 18:
Motion study.
Question 19:
Which principle says that exemplary behaviour by manager will raise the stature of manager?
Answer 19:
Subordination of individual interest to general interest.
Question 20:
Top to bottom approach is the approach followed by Fayol or Taylor?
Answer 20:
Fayol.
 Marketing Management
Question 1:
Define the term Market.
EuAnswer 1:
Market is any place where business is transacted.

Question 2:
Define the term Marketing Management.
Answer 2:
Marketing management refers to planning organising and controlling activities relating to marketing.

Question 3:
What can be marketed?
Answer 3:
Any good, service, idea or event can be marketed.

Question 4:
How is marketing different from selling?
Answer 4:
Marketing is a much wider concept compare to selling. Marketing begins with market research and
product planning and ends with customer satisfaction.
Question 5:
How is advertisement different from publicity?
IWARI
Answer 5:
Advertisement has to be paid for. Publicity is done by others for the organisation.

Question 6:
Advertisement creates demand- Do you agree?
Answer 6:
Yes and No both.

Question 7:
What is the brand name?
EAnswer 7:
A brand is a name, term, sign, symbol, design or some combination of them, use to identify the products
of one firm and to differentiate them from those of the competitors. A brand name is that part of a brand
which can be spoken.
Question 8:
What are 4 P's of marketing?
Answer 8:
Product Mix, Price Mix, Place Mix and Promotion Mix.

Question 9:
What are different Pricing strategies?
EAnswer 9:
Price skimming and penetrating pricing.

Question 10:
What is the full form of FMCG?
LAnswer 10:
FMCG: Fast Moving Consumer Goods.

Question 11:
Who is known as father of marketing management?
Answer 11:
Philip Kotler.

Question 12:
What is the full form of AAA?
LAnswer 12:
AAA: American Association of Advertising.
Question 13:
What is digital marketing?
Answer 13:
Marketing through use of social media like Facebook, Twitter, Instagram etc.

Question 14:
What is meant by channels of distribution?
Answer 14:
The people who help in passing the goods to the ultimate consumer.
For example, wholesaler, distributor, retailer etc.

Question 15:
What is sales promotion?
Answer 15:
Short term incentives given to consumers to boost sales.
Question 16:
What is the role of personal selling in marketing?
Answer 16:
Personal selling helps in clarifying doubts of the customer and attending to him at the time convenient to
him.

Question 17:
What is the modern marketing concept?
EAnswer 17:
Societal Marketing Concept. It means taking care of the society while marketing the product.
Question 18:
What is the objective of marketing management?
Answer 18:
Increasing the volume of sales and brand building.

Question 19:
What is meant by market offering?
tAnswer 19:
Market offering refers to complete offer for a good or service with given features like size, quality, price
etc. at a given location or to a person after analysing his needs.