Relationship Between Religious Beliefs Essay

‘The relationship between religious beliefs, religious organisations and social groups is complex and diverse. Different groups have different needs and priorities.’ To what extent do sociological arguments and evidence support this view? Statistics show that women have a greater participation rate in religious organisations than men. Women are more likely to express a greater interest in religion, to have a stronger personal faith and believe in life after death. They are more likely to involve themselves in religious rituals and worship, for example, attend religious services and lead a more religious life generally. There are many sociological explanations as to why women are more religious than men. Firstly, Miller and Hoffmann suggest that gender socialization means females are brought up to be more compliant, obedient and nurturing than males. They state that women are more involved with feelings, co-operation and caring for others. However, Walter and Davie see women as more exposed than men, to the ups and downs and changes of life. This is because of their biological involvement through childbirth, and through their greater participation in paid caring jobs, for example as teachers, nurses, social workers. Davie suggests that these factors give women a closer association with birth and death than men, and these are also central issues for many religions. They make women more aware of the helplessness of human life, and more familiar to the spiritual dimensions for human existence. Women are also more likely to turn to religion as a result of feeling deprived; they are more likely to experience poverty, family problems, less self confidence and less power. This means they turn to religion for comfort, particularly in religious sects and new religious movements which provide theodicies explaining their feelings, as well as solutions and support. Status frustration may be experienced by some women, who lack personal fulfilment or status as a result of being restricted to the home by the constraints of housework and childcare, or are in unsatisfying lower-middle-class jobs, which are mainly done by women. Religious participation, particularly in religious sects or new age cults, may help to overcome or compensate for this. Due to women staying at home for child care or having part time jobs, some would argue that this allows women to have far more spare time to be able to attend religious groups, therefore increasing their attendance. Statistics show women’s attendance to religious organisations are higher than men’s, however some Marxist  feminists such as Bevoir and Bird argue that religion is used to oppress women. The view that religion has negative consequences for women is conveyed in the study by Bevoir, who sees religion as patriarchal and oppressive. She supports the Marxist perspective and suggests that religion is oppressive and serves to control and reimburse the second class status given to woman. Which is similar to Marx’s viewpoint on the polerteriants who believe religion gives women a false belief that they will be compensated for their suffering on earth by equality in heaven. This argument suggests that religion is patriarchal therefore it is inevitable that it will end up having negative consequences for women. According to feminists there are countless example of patriarchy which have been used to control and later oppress women. Places of worship show this as they often segregate the sexes. An example of this is the Jewish synagogue in which women are placed behind screens separate from the men who in turn are situated in the main centre space. This highlights the marginalisation between the men and women. Although there are some rising female readers of religion, scriptures were first and foremost written and interpreted by men and it is men that are the head of the churches in Islam and Catholicism. This could mean that many values and ideologies such as wearing the Burka, beatings, female circumcision and bans on contraception may have been misinterpreted for men’s gain and passed on through generation to generation. May religious women are still not permitted to become priests or are only allowed to work themselves up to a certain level before they hit a religious ‘glass ceiling’, identifying where they want to be, but not being able to reach it due to the constraints set upon them. On the other hand, there are views to suggest that women are no longer oppressed in religion. For example, many cults are run by women and Paganism, from which many New Age religions originate, remains the most female-friendly approach to religion with a strong feminist element, where God is a mixture of male and female, and strong female leadership is common. Individuals seem to develop a greater attachment to religion as they grown older. Religious belief is lowest among those under 34, and highest among those over age 55. Young people are not only less likely to participate in mainstream religious activity than older people; more than half of them say they don’t regard themselves as religious at all, as shown in such studies as the British  Social Attitudes survey and the European Values study. There are three main reasons as to why older people might be more religious than the younger generation. The first being disengagement. This means that as people get older, they become detached from integrating mechanisms of society, such as participation in workplaces through paid employment. Older people may face increasing social isolation as partners and friends die. Participation in religious organisations provides a form of social support in this situation, and a network of people to relate to. The second is religious socialization, where older people are more likely to have a greater emphasis places on religion through the education system and socialization in the family when they were younger. Lastly, ill health and death. Older people tend to be faced with declining health, and death looms on the horizon. These are the very things that religion concerns its self with. The aging process and disengagement from society may therefore generate an engagement with religion for comfort, coping, meaning and support. Young people are less religious in terms of their expressed religious belief in surveys and their participation in mainstream religions, however this may be because these are simply being expressed in new, private ways which are difficult to record in surveys. Lynch suggests that young people may be running away from conventional ideas of religion as they can now go ‘spiritual shopping’. This involves an increasing exposure and accessibility to a diversity range of religious and spiritual ideas. This has encouraged new ways of exploring religion and spirituality. Young people may be choosing to take of their religion, of whatever faith or mix of beliefs, as a private matter. Davie expressed this in the words ‘believing without belonging’. This is where individuals may have a belief in something, however they do not chose to practice this belief. Secular spirituality and the sacred, Lynch suggested that young people may not have lost all religiosity , but that is simply finding new forms, many of which are associated more with the secular and non-religious world than with religious as it is currently understood by most people. Pragmatic reasons also mean there are a range of possible more practical or pragmatic explanations for the decline of religious belief and commitment amongst young individuals. Leisure activities have become a much bigger part of life, and shops and pubs all open for very long hours, including Sundays. Young people have more demands on their time and they may  simply have more interesting ad enjoyable things to do.

Reusability of Code Essay

Designing a code can often take a lot of time, depending on the complexity of the coding. This is why code reusability has become a standard when it comes to computer programming. But to understand why you would reuse code, you need to understand what goes into creating code. This essay will compare and contrast procedural programming modules and objects. Also, it discuss the security terms in hiding code, passing of data versus data encapsulation, code reuse in more than one program, and how object-oriented methods are similar to procedural modules. According to Gaddis (2010) there are two methods of programming that are primarily used: Object-oriented and Procedural. Procedural programming is more focused on creating procedures; object-oriented programming is focused on creating objects. When dealing with procedures, the data items are separate from the procedures. Gaddis (2010) says this can cause problems, but at the same time it will help the program become larger and more complex. But where procedural programming separates code and data, object-oriented programming handles it through encapsulation and data hiding. Encapsulation takes an object and combines data and code into it. Data hiding makes it possible to hide code in the inside of an object from the code outside of the object. An object normally hides its data, but leaves the methods available for access. Gaddis (2010) states, â€Å"When an object’s internal data is hidden from outside code and access to that data is restricted to the object’s methods, the data is protected from accidental corruption.† There is also no reason to worry about formatting of the code inside the object, just the methods of the object. If you want to reuse codes, the best way to do it is to create modules. They let you duplicate code in a program so that you can execute whenever you  need the service. The Microsoft website (What Is Reusable Code?, 2013) says that code reusability can be used if the code doesn’t have to modified, and can perform a specific service regardless of what the application uses it. It just can be too complex of a code. Just as we use standards in everyday life, there are standard code that is used with computer programs. Venit and Drake say (2011) that inheritance goes along with code reusability. Inheritance takes the methods and attributes from old classes and uses them in new ones. In conclusion, there are different aspects between object-oriented programming and procedural programming. These two methods have different ways of functioning within a program. And as long as a code isn’t to complex, code reuse is very possible. References Gaddis, T. (2010). Starting Out with Programming Logic & Design (Second Edition ed.). Addison-Wesley. Microsoft. (2013). What Is Reusable Code? Retrieved from msdn.microsoft.com: http://msdn.microsoft.com/en-us/library/office/aa189112(v=office.10).aspx Venit, S., & Drake, E. (2011). Prelude Programming Concepts and Design (Fifth Edition ed.). Addison-Wesley.

Time Value

TIME VALUE OF MONEY 1. If you were scheduled to receive Rs 100,000 five years hence, but you wish to sell your contract note for its present value, which type of compounding would you rather have the purchaser of your contract note to use to find the purchase price, 8 percent compounded: (a) (b) (c) (d) (e) Continuously Quarterly Semi-annually Annually None of the above 2. According to the rule of 69, the doubling period is equal to (a) (b) (c) (d) (e) 0. 25 + (69/ Interest rate) 0. 35 + (69/ Interest rate) 0. 69 + (0. 35/ Interest rate) 0. 69 + (0. 25 / Interest rate) None of the above 3. For a depositor, when the frequency of compounding is increased (a) (b) (c) (d) (e) Additional gains increase Additional gains dwindle Additional gains are unaffected There are no additional gains None of the above 4. Present value interest factor of a perpetuity represents (a) (b) (c) (d) (e) Interest rate in percentage terms Reciprocal of interest rate in percentage terms Reciprocal of interest rate in decimal terms Interest rate in decimal terms None of the above 5. The present value of a perpetuity of one rupee when the interest rate is r percent is: (a) (b) (c) (d) (e) 1/r 1/ r2 1/r0. 2 r2 None of the above 1 6. The present value of an annuity due is equal to the present value of a regular annuity multiplied by : (a) (b) (c) (d) (e) r (1 + r) 1/r r(1 + r) None of the above 7. Recurring deposit in a bank is a typical example of: (a) (b) (c) (d) (e) Deferred annuity Annuity due Regular annuity Compound annuity None of the above 8. Deposits in a sinking fund is an example of: (a) ( b) (c) (d) (e) Deferred annuity Annuity due Regular annuity Either a or c None of the above 9. In a loan amortisation schedule, as the number of years increases: (a) (b) c) (d) (e) The interest amount increases The principal repayment amount increases The annual installment amount decreases Both a and c None of the above KEY 1 (d) 2 (b) 3 (b) 4 (c) 5 (a) 6 (b) 7 (b) 8 (d) 9 (a) 2 VALUATION OF STOCKS AND BONDS 1. The annual interest on a bond in relation to its prevailing market price is called its: (a) (b) (c) (d) (e) Coupon rate Promised yield Current yield Yield to maturity None of the above 2. Internal rate of return on a bond investment is its (a) (b) (c) (d) (e) Current yield Yield to maturity Holding period return Realised yield None of the above . The constant-growth dividend discount model will not produce a finite value if the dividend growth rate is: (a) (b) (c) (d) (e) Above its historical average Below its historical average Above the market capitalisation rate Below the market capitalisation rate None of the above 4. For any given stock, which of the following must be true? (a) (b) (c) (d) (e) Market value ? book value ? par value Book value ? market value ? par value Par value ? market value ? book value Par value = book value ? market value None of the above must be true 5. Limited growth prospects are indicated by (a) (b) (c) (d) (e) High dividend High P/E ratio Low dividend High dividend and low P/E ratio None of the above 3 6. Riskier stocks have (a) (b) (c) (d) (e) Higher P/E multiple Lower P/E multiple Higher variance (b) and (c) None of the above 7. Which of the following is not true? (a) (b) (c) (d) (e) Earnings-price ratio is equal to r when PVGO is zero Earnings-price ratio is less than r when PVGO is positive Earnings-price ratio is less than r when PVGO is negative Earnings-price ratio is more than r when PVGO is negative None of the above 8. An increase in the market value of a company indicates: (a) (b) (c) (d) (e) Increase in profitability Increase in revenues Increase in future prospects All the above None of the above 9. Intrinsic value of a security is its: (a) (b) (c) (d) (e) DCF value Book value Real value Market capitalization value None of the above 10. Which one of the following is not a major driver of growth? (a) (b) (c) (d) (e) Sales growth ratio Ploughback ratio Return on equity All the above None of the above 11. In the case of stocks with lower P/E multiples: (a) Liquidity is low (b) Required return is high (c) Risk is high 4 d) All the above (e) None of the above 12. All trades on NSE are guaranteed by: (a) (b) (c) (d) (e) SEBI NSDL NSCC CDSL None of the above 13. In respect of the sample shares, sensex reflects the movement of: (a) (b) (c) (d) (e) Average total market value of the floating stocks Average market value of the floating stocks times a fixed multiple Average capitalisation of the issued and paid up stocks Average aggregate market value of the subscribed stocks None of the above Formatted: Font color: Auto Formatted: Font color: Auto Formatted: Font color: Auto 14. The book value of a firm? s equity is nothing but the book value of its assets minus the book value of its liabilities: a. True b. False 15. Market value of a firm has to be at least equal to its: (a) (b) (c) (d) (e) Book value Cash and bank balance Net asset value Lowest of the above None of the above 16. Intrinsic value of a security is its: (a) (b) (c) (d) (e) Market value Book value Economic value Resale value None of the above 5 KEY 1 (c) 12 (c) 2 (b) 13 (a) 3 (c) 14(a) 4 (e) 15(e) 5 (d) 16(c) 6 (d) 7 (c) 8 (e ) 9 (a) 10 (a) 11 (d) 6 RISK AND RETURN 1. Variance will always be (a) (b) (c) (d) (e) Positive Negative Variable Very high None of the above 2. A normal distribution is completely characterised by (a) (b) (c) (d) (e) Expected return and standard deviation Required return and variance Expected return and range Standard return and expected variance None of the above 3. If a variable is normally distributed what percentage of the values fall within a band of one standard deviation on either side of the arithmetic mean. (a) (b) (c) (d) (e) 95. 4 percent 68. 3 percent 99. 7 percent 57. 5 percent None of the above 4. If a variable is normally distributed what percentage of values will fall within a band of three standard deviations on either side of the arithmetic mean? (a) (b) (c) (d) (e) 95. 4 percent 68. 3 percent 99. 7 percent 57. 5 percent None of the above 5. Which of the following is true? (a) (b) (c) (d) The geometric mean is always less than the arithmetic mean The geometric mean is always greater than the arithmetic mean The geometric mean and the arithmetic mean are always the same The geometric mean is always less than the arithmetic mean, except when all the return values being considered are equal (e) None of the above 7 . When the probability distribution of rate of return of a security is defined, the possible outcomes: (a) (b) (c) (d) (e) Should be mutually exclusive Should be collectively exhaustive Should not add to more than 1 All the above None of the above 7. Preparing the probability distribution of rate of return of a security is: (a) An objective exercise based on the pre vailing market conditions (b) An objective exercise based on the past history of the securities performance (c) An objective exercise based on the future prospects of the security. d) A subjective exercise (e) None of the above 8. While analysing the returns of a security based on a continuous probability distribution, probabilities are assigned to: (a) (b) (c) (d) (e) Individual points on the curve Intervals between two points on the curve The gradient between any two referenced points on the curve Either b or c None of the above 9. Diversification eliminates risk if returns are: (a) (b) (c) (d) (e) Not perfectly positively correlated Perfectly positively correlated Perfectly negatively correlated All the above None of the above 10. If the return on a security is negatively correlated with the market return, its beta is: (a) (b) (c) (d) (e) Less than zero Less than one but more than zero More than one Independent of the market return None of the above 8 11. To judge creditworthiness of firms, leading international rating firms use debt ratios expressed in: (a) (b) (c) (d) (e) Market values Book values Real values Discounted values None of the above 12. A defensive stock is characterised by: (a) (b) (c) (d) (e) Negative beta Positive beta less than one Positive beta more than one Beta equal to one None of the above 3. When you want to know the central tendency of a series of returns, the arithmetic mean is the appropriate measure: a. True b. False 14. For a given series of returns geometric mean is always greater than the Arithmetic mean: b. True b. False 15. Business risk of a firm : (a) (b) (c) (d) (e) Is the risk of the firm without financial leverage Depends on cyclicality of revenues Depends on operating lev erage All the above None of the above 16. Debt rating firms such as Standard & Poor? and Moody? s use debt ratios expressed in market values to judge credit worthiness: a. True b. False KEY 1 (a) 12 (b) 2 (a) 13(a) 3 (b) 14(b) 4 (c) 15(d) 5 (d) 16(b) 9 6 (d) 7 (d) 8 (b) 9 (c) 10 (a) 11 (b) TECHNIQUES OF CAPITAL BUDGETING 1. As discount rate increases, NPV of a simple project (a) (b) (c) (d) (e) Increases at a decreasing rate Decreases at an increasing rate Decreases at a decreasing rate Decreases at a steady rate None of the above 2. When time-varying discount rates are involved the suitable investment criterion is (a) (b) (c) (d) (e) NPV IRR MIRR Discounted Pay Back Period None of the above 3. If initial investment is Rs. 10 million and NBCR is 0. 2, the NPV is (a) (b) (c) (d) (e) Rs. 50 million Rs. 2 million Rs. 8 million Rs. 5 million None of the above 4. IRR is unreliable for ranking projects when (a) (b) (c) (d) (e) Life of the projects are long Projects have different patterns of cash flow Projects have decreasing cash flows Both a and c None of the above . If you do not know the discount rate for a project, the right investment criterion to be used will be (a) (b) (c) (d) (e) IRR MIRR NPV BCR None of the above 10 6. The IRR of a capital investment (a) Changes when the cost of capital changes (b) Is equal to annual cash flows divided by the project? s cost when the cash flows are an annuity (c) Is similar to the yield to maturity on a bond (d) Must exceed the cost of capital in order for the firm to accept the investment (e) Both b and d are true (f) Both c and d are true 7. The modified internal rate of return (MIRR) is superior to the regular IRR because: (a) MIRR modifies IRR to reflect project risk (b) While IRR may be negative, MIRR can never be negative (c) MIRR assumes that project cash flows are reinvested at the cost of capital whereas the regular IRR assumes that the project cash flows are reinvested at the project? s own IRR (d) The problem of multiple rates does not exist with MIRR (e) c and d (f) b, c, and d 8. When a firm takes on a new project with a positive NPV, it will necessarily increase the value of the firm. . True b. False 9. The NPV rule assumes that the intermediate cash flows of a project are reinvested at a rate equal to: (a) (b) (c) (d) (e) The cost of capital The cost of equity The internal rate of return The current yield None of the above 10. The modified internal rate of return (MIRR) is superior to the regular IRR because: (a) (b) (c) (d) (e) It assumes that project cash flows are reinvested at the cost of capital Reinves tment cost of capital is more realistic It is not a subjective measure both a and b None of the above 1 11. Which of the following is true: (a) IRR rule assumes that intermediate cash flows are reinvested at the cost of capital (b) The IRR rule cannot distinguish between lending and borrowing (c) IRR is difficult to apply when short-term interest rates from long-term interest rates (d) IRR cannot be used when the cost of capital is not known (e) None of the above KEY 1 (c) 2 (a) 3 (b) 4 (b) 5 (a) 6 (f) 7 (e) 8 (b) 9 (a) 10 (d) 11 (b) 12 PROJECT CASH FLOWS 1. Which one of the following may not be generally relevant in establishing the time horizon for cash flow analysis? (a) (b) (c) (d) (e) Investment planning horizon of the firm Physical life of the plant Technological life of the plant Product market life of the plant None of the above 2. While defining the cash flows on the investment side, interest cost is not considered because: (a) (b) (c) (d) (e) It is a proxy to the rate of return Historical interest rates have no relevance It is included in the cost of capital Both b and c None of the above . All incidental effects of a project on the rest of the firm should be considered while estimating project cash flows because: (a) (b) (c) (d) (e) It may have a complementary relationship with the existing activities It may have a competitive relationship with the existing activities It may have a supplementary relationship with the existing activities Both a and b None of the above 4. The cost created for the rest of the firm as a consequence of undertaking a project is: (a) (b) (c) (d) (e) The company weighted average cost of capital The marginal cost of capital The project weighted average cost of capital An opportunity cost None of the above 5. For purposes of investment analysis, what matters is: (a) (b) (c) (d) Overhead costs allocated to the project Incremental overhead costs attributable to the project Weighted average overhead costs attributable to the project Projected average overhead costs attributable to the project 13 (e) None of the above 6. Which of the following may not generally result in underestimation of project cash flows? (a) (b) (c) (d) (e) Ignoring intangible benefits Under estimation of salvage values Overlooking the value of future options Under estimation of project cost of capital None of the above 7. Product cannibalisation involves (a) (b) (c) (d) (e) Erosion of sales of an existing product due to own new product Erosion of sales of an existing product due to an own older product Erosion of sales due to a competitor? s existing product Erosion of sales due to a competitor? new product None of the above 8. Which one of the following is a sunk cost (f) (g) (h) (i) (j) R & D expenditure not leading to a product Preliminary survey expenses before setting up the plant Sponsorship expenses of Indian cricket team Contribution to Prime Ministers Relief Fund None of the above 9. In the financing side of a project, explicit funds include (k) Trade creditors (l) Bank overdraft (m) Provision for income tax (n) Provis ion for proposed dividend (o) None of the above KEY 1 (b) 2 (c) 3 (d) 4 (d) 5 (b) 6 (d) 7 (a) 8 (b) 9 (b) 14 RISK ANALYSIS IN CAPITAL BUDGETING 1. While evaluating the risk of a project, an undiversified shareholder is more concerned about: (a) (b) (c) (d) (e) Stand-alone risk Corporate risk Market risk All the above None of the above 2. In which of the following, values of a set of variables are varied concurrently by specified values? (a) (b) (c) (d) (e) Scenario analysis Sensitivity analysis Simulation analysis Decision tree analysis None of the above 3. In which of the following, correlations between variables are to be handled properly? (a) (b) (c) (d) (e) Scenario analysis Sensitivity analysis Simulation analysis Decision tree analysis None of the above 4. A lower price: (a) (b) (c) (d) (e) Increases potential demand Decreases the break-even level Increases the break-even level Both a and c None of the above 5. Which one of the following is the best way of incorporating risk in the decision process? (a) (b) (c) (d) Certainty equivalent Pay back period requirement Risk-adjusted discount rate Judgmental evaluation 15 (e) None of the above 6. Financial break even occurs at the point of time when the (a) (b) (c) (d) (e) Firm starts making operating profits Accumulated losses are wiped off Present value of investment becomes zero Cash flows become steady None of the above . Randomly selected values are used in (a) (b) (c) (d) (e) Sensitivity analysis Break even analysis Decision tree analysis Simulation analysis None of the above rate 8. The NPV of a simple project decreases at a constant rate as the discount increases. a. True b. False 9. When the cash flows of a project are perfectly correlated, the standard deviation of the NPV is: n (a) ? t=1 A _____ – I ( 1+ i)t ? t _____ – I ( 1+ i)t ? t _____ ( 1+ i)t 1/2 n (b) ? t=1 n (c) ? t=1 n (d) ? t=1 ? _____ (1+ i)2t 2 t (e) None of the above 16 10. An investor for whom the certainty index is less than the expected value, is (p) (q) (r) (s) (t) Risk loving Risk averse Risk neutral Risk allergic None of the above KEY 1 (b) 2 (a) 3 (c) 4 (d) 5 (e) 6 (c) 7 (d) 8 (b) 9 (c) 10 (b) 17 THE COST OF CAPITAL 1. Which of the following is not reflected in the company cost of capital? (a) (b) (c) (d) (e) Rate of return expected on a proposed investment Business risk of the existing assets Risk of the existing capital structure All the above None of the above 2. A firm has an existing bank loan contracted at 10 percent a year back. The bank has since reduced the lending rates and the company, if it wants, can raise a fresh loan from the bank at 9 percent. While determining the WACC, the cost of bank loan for the company would be: (a) (b) (c) (d) (e) 10 percent 9 percent Weighted average of the old and new bank interest rates Either b or c None of the above 3. The correct cost of debt to be used in calculation of the average cost of capital is the: (a) (b) (c) (d) (e) Marginal cost of debt Yield to maturity Average cost of debt Either a or b None of the above 4. Cost of retained earning is (a) (b) (c) (d) (e) Nil Nearly equal to cost of depreciation Nearly equal to cost of equity Nearly equal to average cost of debt None of the above 5. In determining cost of capital using „Bond yield plus risk premium approach? the risk premium is set at (a) 2 % of the bond yield (b) 4 % of the bond yield (c) 1% of the bond yield if the latter is more than 12 % 18 (d) Both a and c (e) None of the above 6. The chief merit of using book value proportions to calculate WACC is that (a) (b) (c) (d) (e) It is unbiased It is simple It is more realistic It is based on audited figures None of the above . For a given capital structure, the levels of total new financing at which the cost of the new components would change is called (a) (b) (c) (d) (e) Turning points Breaking points Inversion points Relevant points None of the above 8. When the marginal cost of capital is the same for two projects and there are no funds constraints, you will select (a) (b) (c) (d ) (e) Project with the shorter payback period Project with the higher IRR Both the projects if NPVs are positive Preferably project with higher IRR and higher NPV None of the above 9. Which of the following conditions should be satisfied for using WACC for evaluating new investments? (a) The risk of new investments is the same as the average risk of existing investments (b) The cost of equity is greater than the cost of debt (c) The capital structure of the firm will not be affected by the new investments (d) a and c (e) None of the above 19 10. The risk-adjusted discount rate method assumes that the risk increases with time at: (a) (b) (c) (d) (e) Increasing rate A constant rate Decreasing rate A random rate None of the above KEY 1 (a) 2 (b) 3 (a) 4 (c) 5 (e) 6 (b) 7 (b) 8 (c) 9 (d) 10 (b) 20 CAPITAL BUDGETING: EXTENSIONS 1. General Electric? s Stoplight Matrix is used for: (a) (b) (c) (d) (e) Resource allocation Identification of worthwhile projects Abandoning worthless projects Scaling up corporate efficiency None of the above 2. Which of the following conditions must be satisfied by a capital budget to be meaningful and viable? (a) (b) (c) (d) (e) It must be compatible with the resources of the firm It must be controllable It must be endorsed by executive management All the above None of the above . A company? s debt equity ratio is 1:1. It proposes to undertake an aerodrome project with proposed debt equity ratio of 3:1. The discount rate that should be applied to the project should be: (a) (b) (c) (d) (e) Weighted average cost of debt Marginal cost of debt Incremental discount rate Adjusted discount rate None of the above 4. Which of the following are options embedded in real life projects? (a) (b) ( c) (d) (e) Incremental option Flexibility option Abandment option All the above None of the above 5. Which of the following may not result in positive NPV projects? a) (b) (c) (d) (e) Marketing reach Government policy Customer affluence Product differentiation None of the above 21 6. Which of the following is a necessary condition to ensure success in business strategies? (a) (b) (c) (d) (e) Intuition Vision of the leader Rigorous analysis Sponsorship None of the above 7. In determining the adjusted present value, tax shields on financing effects are discounted at (a) (b) (c) (d) (e) Opportunity cost of equity Marginal cost of debt Weighted average cost of debt Average of a and b None of the above KEY 1 (a) 2 (d) 3 (d) 4 (d) 5 (c) 6 (c) 7 (b) 22 MARKET EFFICIENCY AND FINANCING DECISIONS 1. There will be no concern about transfer of wealth from existing to new shareholders if new securities are issued (a) (b) (c) (d) (e) above market price at market price at par by book building method None of the above 2. Market efficiency implies that: (a) (b) (c) (d) (e) Errors in the market prices are biased Market price equals intrinsic value Price deviations cannot be predicted It is not possible to identify over and under-valued stocks None of the above 3. Market efficiency exists because; (a) (b) (c) (d) (e) Portfolio managers are doing their job well There is keen competition among market participants New information cannot be predicted in advance All the above None of the above 4. Returns over horizons of a few weeks or months would be positively correlated because of the action of: (a) (b) (c) (d) (e) Noise traders Arbitrageurs Speculators Both a and b None of the above 5. Which of the following is a calendar anomaly? (a) (b) (c) (d) (e) Week end effect January effect Budget effect Both a and b None of the above 23 6. Serial correlation tests, run tests and filter rules tests have been commonly employed to verify: (a) (b) (c) (d) (e) Strong form of efficient market hypothesis Semi- strong form of efficient market hypothesis Weak form of efficient market hypothesis Both a and b None of the above 7. In an efficient market, the market price of a security is: (a) (b) (c) (d) (e) An unbiased predictor of its intrinsic value An unbiased estimate of its intrinsic value A logical mean of the market participants? expectations The expected value of a normal distribution None of the above 8. Study of market efficiency teaches corporates that: (a) Manipulation of earnings does not pay (b) It is advantageous to issue debt rather than equity (c) The objective of corporate finance should be to maximise the market value of the firm in due course (d) Equity issues should not be deferred because the stock price was significantly low in recent periods (e) None of the above 9. In an efficient market, an unbiased estimate of the intrinsic value of a security can be obtained from its: (a) (b) (c) (d) (e) Market value Book value Cash value Capital value None of the above 0. According to Efficient Market Theory, price changes cannot be forecast since: (a) Inflation cannot be predicted with any acceptable degree of accuracy (b) New information cannot be predicted in advance. (c) Insiders and other vested interest groups will not allow the market to become efficient (d) All the above (e) None of the above 24 11. Though elegant in theory, bulk of the results of empirical studies have fa iled to support Efficient Market Hypothesis: a. True b. False 12. A puzzling calendar anomaly is : (a) (b) (c) (d) (e) The Mid Summer Effect The Easter Effect The January Effect The March Effect None of the above 13. Noise trade is always supported by: (a) (b) (c) (d) (e) Efficient Market Hypothesis Rational expectations theory Technical analysis Fundamental analysis None of the above KEY 1(b) 2 (e) 3 (d) 4 (d) 5 (d) 6 (c) 7 (b) 8 (a) 9(a) 10(b) 11(b) 12(c) 13(e) 25 SOURCES OF LONG-TERM FINANCE 1. As per law the issue price of a share cannot be: (a) Less than the par value (b) Less than the issue price of any preceding public offer. c) More than twenty times the average P/E multiple for the past years. (d) More than 20 times the book value (e) None of the above 2. When a company? s net profit doubles, that has to result in: (a) (b) (c) (d) (e) Increase in market value Increase in book value Decrease in cost of equity Both a and b None of the above three 3. Which one of the following is known not to have any effect on the market price of stocks? (a) (b) (c) (d) (e) Current earnings Growth prospects Risk Company size None of the above 4. Which one of the following is generally viewed with skepticism by the stock market? a) (b) (c) (d) (e) Debenture issue Equity issue Soliciting public deposits Not declaring large dividends None of the above 5. If you are the CEO of a company, which one of the following will you decide to skip in a lean year? (a) (b) (c) (d) Declaring preference dividend Declaring equity dividend Declaring bonus issue Putting on hold new projects 26 (e) None of the above 6. The par value of an equity share is the value: (a) (b) (c) (d) (e) As stated in the memorandum The price at which it is issued The price at which it will be repurchased Both a and c None of the above . The income on which the equity holders have a residual claim is: (a) (b) (c) (d) (e) Profit after tax Profit after tax plus equity dividend Profit after tax less equity dividend Profit after tax less preferred dividend None of the above 8. When the financial performance of a company is impressive, the board of directors, if they so wish, can: (a) (b) (c) (d) (e) Refuse to pay equity dividend Cannot refuse to pay equity dividend without shareholders? approval Refuse to pay preference dividend Both b and c None of the above 9. Issue expenses are the least in the case of: (a) (b) (c) (d) (e) Public issue of equity Public issue of debentures Rights issue Private placement None of the above 10. According to CAPM, going in for debt financing: (a) (b) (c) (d) (e) Decreases the cost of equity Increases the cost of equity Does not affect the cost of equity Either a or c None of the above 27 KEY 1 (a) 2 (b) 3 (e) 4 (b) 5 (d) 6 (a) 7 (d) 8 (a) 9 (c) 10 (b) 28 RAISING LONG TERM FINANCE 1. IPO refers to the first issue of: (a) (b) (c) (d) (e) Equity Debentures Preference shares Either a or b None of the above . The first option to acquire the equity investment held by a VC is typically give to: (a) (b) (c) (d) (e) The public The promoters of the VC fund The associates of the VC fund The promoters of the assisted firm None of the above 3. A rights issue generally tends to result in: (a) (b) (c) (d) (e) Increase in return on equity Decrease in earnings per share Decrease in return on investments Increase in earnings pe r share None of the above 4. In which of the following the identity of investors is generally known at the time of approval of shareholder approval itself? a) (b) (c) (d) (e) Private placement Preferential allotment Convertible debentures GDR None of the above 5. Lead manager of a public issue can be likened to (a) (b) (c) (d) (e) master of ceremonies best man in a wedding conductor of an opera producer of a movie None of the above 29 6. Which one of the following is not a potential advantage that prods a company to go public? (a) (b) (c) (d) (e) Accountability Respectability Investor recognition Liquidity None of the above 7. Composite application form sent along with letter of offer of a rights issue includes (a) (b) (c) (d) (e) a form showing the number of rights shares the shareholder is entitled to a form through which rights can be renounced in favour of someone a form for rejecting the offer both a and b None of the above 8. Wealth of an existing shareholder per se is not affected by the right offering if he (a) (b) (c) (d) (e) sells the rights does not participate in the right exercises the rights partially both a and b None of the above 9. Before a company makes a preferential allotment (a) (b) (c) (d) (e) it must pass a special resolution obtain special approval under section 81(1A) from government both a and b either a or b None of the above 10. Dilution of proportional ownership can be avoided by making (a) (b) (c) (d) (e) private placement debenture issue a rights issue either b or c None of the above 11. Book building is used to help in better (a) Price discovery (b) Retail participation 30 (c) Institutional participation (d) Investor communication (e) None of the above 12. In any IPO, there is infusion of capital in the company: a. True b. False 13. Who among the following is not an eligible QIB? (a) (b) (c) (d) (e) State Industrial Development Corporations Mutual Funds Scheduled commercial banks Foreign institutional investors registered with SEBI None of the above 14. If a company? s project has not been appraised by financial institutions or scheduled commercial banks, it is not eligible for an IPO: a. True b. False 15. Retail investors cannot change their bids during the bidding process in: (a) (b) (c) (d) (e) French auction Book building Commodity auction All the above None of the above 16. In a preferential allotment of shares, the lock-in period is applicable to : (a) (b) (c) (d) (e) 17. QIPs : (a) (b) (c) (d) (e) Fetch a good price Entail minimal cost Can be completed very quickly All the above None of the above The appraising bank FII Lead Manager of the investment bank. The promoters None of the above 31 18. To get an anchor investor you should look among: (a) (b) (c) (d) (e) QIBs QIPs FIIs HNIs None of the above 19. The focus area for an Investment Bank is : (a) (b) (c) (d) (e) Investment Commercial banking Merchant banking All the above None of the above 0. In India, a trader who performs market-making function for a security is not permitted to engage in proprietary trading function in the same security: a. True b. False KEY 1 (a) 12(b) 2 (d) 13(e) 3 (b) 14(a) 4 (b) 15(a) 5 (c) 16(d) 6 (a) 17(d) 7 (d) 18(a) 8 (a) 19(c) 9 (d) 20(b) 10 (d) 11 (a) 32 CAPITAL STRUCTURE AND FIRM VALUE 1. According to net operating income approach increase in leverage will affect (a) (b) (c) (d) (e) cost of debt cost of equity overall capitalisation rate both a and b None of the above . According to net income approach, as leverage decreases (a) (b) (c) (d) (e) average cost of capital decreases average cost of capital increases cost of debt increases cost of equity decreases None of the above 3. According to the Merton Miller argument, the original MM proposition which says that financial leverage does not matter in a tax-free world (a) (b) (c) (d) (e) is valid in a world where both corporate and personal taxes exist is not valid in a world where both corporate and personal taxes exist is valid n a world where the corporates are exempt from taxes is valid in a world where corporate taxes exist but no personal taxes exist None of the above 4. Which one of the following statements is true? (a) (b) (c) (d) (e) Net operating income approach and MM? s first proposition are identical Net income approach and MM? s second proposition are identical Net operating income a pproach and traditional approach are identical Net income approach and MM? s first proposition are identical None of the above 5. One of the assumptions underlying the MM proposition is that firms can be grouped into equivalent risk classes based on their (a) (b) (c) (d) (e) systematic risk financial risk business risk both a and b None of the above 33 6. According to the signaling theory of capital structure, the pecking order of financing is as follows: (a) (b) (c) (d) (e) External equity finance, debt finance and internal finance Internal finance, external equity finance and debt finance Debt finance, external equity finance and internal finance Retained earnings, debt finance and external equity finance None of the above . According to Myers, the pecking order of financing can be fully explained if there is (a) (b) (c) (d) (e) asymmetric information and divergent expectations homogeneous expectations and symmetric information rational expectations reasonable expectations None of the above 8. According to the net operating income approach, the overall capitalisation rate and the cost of debt remain constant for all degrees of leverage: a. True b. False 9. According to the rational expectations hypothesis, what matters in economics is the congruence between what actually happens and what was supposed to happen. . True b. False 10. According to the net income approach, the average cost of capital remains constant for all levels of financial leverage. a. True b. False 11. The relationship between the return on equity (ROE), return on investment (ROI), cost of debt (r), debt-equity ratio (D/E), and tax rate (t) is as follow (a) (b) (c) (d) (e) ROE = [ROI +(ROI –r) D/E ] (1-t) ROE = [ROI – (ROI –r) D/E ] (1-t) ROE = [ROI +(ROI + r) D/E ] (1-t) ROE = [ROI +( r- ROI ) D/E ] (1-t) None of the above 34 KEY 1 (b) 2 (b) 3 (a) 4 (a) 5 (c) 6 (d) 7 (a) 8 (a) 9 (b) 10 (b) 11 (a) 35 CAPITAL STRUCTURE DECISIONS 1. Financial risk is minimum in (a) (b) (c) (d) (e) debt issue IPO rights equity issue both b and c None of the above 2. Financial slack is more valuable to a firm with (a) (b) (c) (d) (e) poor growth opportunities more intangible assets high liquidity less intangible assets None of the above 3. A powerful defence against bankruptcy is (a) (b) (c) (d) (e) flexibility higher growth expansion modernisation None of the above 4. A company should avoid financial hype in an efficient market because of the dominant role of (a) (b) (c) (d) (e) SEBI lead steers aggressive investors conservative investors None of the above 5. Which of the following is an indirect cost of bankruptcy? (a) Due to myopia, managers may sacrifice actions to build value in the long run (b) Legal and administrative costs are quite high (c) Arguments between shareholders and creditors delay the liquidation of assets (d) If assets are sold under distressed conditions, they may fetch a price significantly less than their economic value 36 e) None of the above 6. Weakened commitment of employees, customers, suppliers, distributors, and other stakeholders is a direct cost of financial distress a. True b. False 7. Creditors face the problem of moral hazard when they lend to a firm that has a large outstanding debt in relation to the value of its assets. a. True b. False 8. The tradeoff theory explains satisfactorily why profitable firms like Hi ndustan Lever depend so little on debt. a. True b. False 9. According to the rational expectations hypothesis what matters in economics is what was rationally expected to happen: a. True b. False KEY 1 (d) 2 (b) 3 (a) 4 (b) 5 (a) 6 (b) 7 (b) 8 (b) 9 (b) 37 DIVIDEND POLICY AND FIRM VALUE 1. Walter model assumes that for financing future investments, a firm will rely only on (a) (b) (c) (d) (e) debentures term loans retained earnings external equity None of the above 2. Value of a firm according to MM depends solely on its (a) (b) (c) (d) (e) equity borrowing capacity earning power dividend payout ratio None of the above 3. As per Gordon model when the rate of return is less than the discount rate, as the dividend payout ratio increases, price per share (a) (b) (c) (d) (e) increases decreases remains unchanged at first increases and then decreases None of the above 4. Radicalists support (a) (b) (c) (d) (e) low dividend payout high dividend payout steady dividend payout stock splits None of the above 5. According to the Walter model, the price of a share is equal to : D ——k (E-D) r/k ———-k (a) + 38 (c) D ——-k _ (E-D) r/k ————-k (E +D) r/k —————-k (c) D ———k + (d) D ——-k + E-D)r/k ————–k (e) None of the above 6. According to the traditional position on the impact of dividend policy on the firm value, the firm value is positively influenced by: (a) (b) (c) (d) (e) A liberal payout policy A conservative payout policy Slow but s teady increase in dividends Higher retention ratio None of the above 7. MM? s view on dividend policy and firm value is: (a) (b) (c) (d) (e) Traditional Radical Academic Subjective None of the above KEY 1 (c) 2 (c) 3 (a) 4 (a) 5 (a) 6 (a) 7 (c) 39 DIVIDEND DECISION 1. Which one of the following is not a plausible reason for paying dividends? a) (b) (c) (d) (e) Investor preference for dividends Information signaling Temporary excess cash Clientele effect None of the above 2. According to the Lintner? s model of corporate dividend behaviour, the current dividend can be explained (a) (b) (c) (d) (e) as a weighted average of past earnings in terms of current earnings and previous year dividend solely in terms of previous year dividend both a and b None of the above 3. Dividend declaration is usually made in (a) (b) (c) (d) (e) board meeting annual general meeting special shareholder meeting b or c None of the above . Bonus shares can be issued out of (a) (b) (c) (d) (e) revaluation rese rve share premium collected in cash excess cash balance accounts receivable None of the above 5. In a stock-split (a) (b) (c) (d) (e) earnings are capitalised EPS remains unchanged book value declines both a and c None of the above 40 6. Which of the following can be a motivator for share buy backs? (a) (b) (c) (d) (e) Price stability Idle cash Tax advantage All the above None of the above 7. The post-buyback debt-equity ratio of company should not exceed : (a) (b) (c) (d) (e) 2 . : 1 1. 33 : 1 1. 0 : 1 1. 0 : 2 None of the above 8. According to Graham and Dodd the weight attached by the market to dividends is equal to: (a) (b) (c) (d) (e) five time the weight attached to retained earnings four times the weight attached to retained earnings three times the weight attached to retained earnings half the weight attached to profit after tax None of the above 9. According to the Lintner model (a) (b) (c) (d) (e) Dt – Dt-1 = c ( r EPSt – Dt-1 ) Dt – Dt-1 = c ( Dt†“1 – r EPSt ) Dt = Dt-1 + c ( EPSt – r Dt-1) Dt = r Dt-1 None of the above 10. According to John Lintner, managers are concerned more about the absolute level of dividend than the change in dividend. a. True b. False 11. Junk bonds are bonds that have a credit rating of: (a) (b) (c) (d) (e) BBB or lower BB or lower B or lower C or lower None of the above 41 12. In which stage of the dividend life cycle, informational asymmetry is moderate? (a) (b) (c) (d) (e) Decline Rapid growth Infancy Maturity None of the above 13. A share buyback programme effectively: (a) (b) (c) (d) (e) Decreases the EPS Decreases the P/E ratio Increases the share price All the above None of the above 4. As per SEBI guidelines, buyback of shares can be done through the Dutch auction route: b. True b. False KEY 1 (c) 12(b) 2 (d) 13(b) 3 (a) 14(a) 4 (b) 5 (c) 6 (d) 7 (a) 8 (b) 9 (a) 10 (b) 11 (b) 42 WORKING CAPITAL POLICY 1. Which portion of total capital generates most of the profits? (a) (b) (c) (d) (e) Fixed assets Investments Working capital Paid-up capital None of the above 2. Which on e of the following is not part of working capital? (a) (b) (c) (d) (e) Inventory Receivables Instalments of term loans due within the next twelve months Investments None of the above . The life span of current assets does not depend on: (a) (b) (c) (d) (e) Sales Production Maintenance Synchronisation among them None of the above 4. The working capital needs of a firm are not influenced by: (a) (b) (c) (d) (e) Nature of business Seasonality of operations Production policy Market conditions None of the above 5. A firm that manages with a small amount of inventory is said to be following a: (a) (b) (c) (d) (e) Aggressive policy Conservative policy Defensive policy Survival policy None of the above 43 6. To be consistent with the „The Matching Principle? fluctuating current assets must be supported by: (a) (b) (c) (d) (e) Equity Debentures Short-term bank borrowings Long- term bank borrowings None of the above 7. A negative cash cycle for a company necessarily implies: (a) (b) (c) (d) (e) Poor management of credit sales Poor management of receivables Poor management of trade creditors Poor management of profitability None of the above 8. Which one of the following typically needs the least working capital? (a) (b) (c) (d) (e) A tea plantation A hotel A construction company A departmental store None of the above . Which one of the following will decrease the length of the cash cycle? (a) (b) (c) (d) (e) Increase in inventory period Increase in accounts receivable period Increase in accounts payable period Decrease in accounts payable period None of the above 10. If you subtract net working capital from gross working capital, you will get: (a) (b) (c) (d) (e) Current assets Current liabilities Fixed assets Net profit None of the above KEY 1 (e) 2 (d) 3 (c) 4 (e) 5 (a) 6 (c) 7 (e) 8 (b) 9 (c) 10 (b) 44 CASH AND LIQUIDITY MANAGEMENT 1. The principal tool of cash management is: (a) (b) (c) (d) (e) Short-term cash forecasting Maximising daily collections Maximising the payment slack Obtention of fine rates None of the above 2. In cash forecasting, which one of the following analysis is generally used? (a) (b) (c) (d) (e) Sensitivity analysis Scenario analysis Simulation analysis Decision tree analysis None of the above 3. The method that is generally used for long-term cash forecasting is: (a) (b) (c) (d) (e) Adjusted net income method Adjusted receipt and payment method Average income and expenditure method Cash deficit gap method None of the above . Which of the following, according to Keynes, is not a motive for holding cash (a) (b) (c) (d) (e) Speculative motive Psychological motive Precautionary motive Transaction motive None of the above 5. Float is the difference between: (a) (b) (c) (d) (e) Available balance and the ledger balance Available balance and the amount yet to be collected Total available balance an d the bank balance Total available balance and the balance in hand None of the above 45 6. Net float is: (a) (b) (c) (d) The difference between disbursement float and collection float The sum of disbursement float and collection float The difference of the available balance and balance on hand Either a or c 7. Which of the following is the most important criterion for evaluating various investment instruments? (a) (b) (c) (d) (e) Safety Yield Liquidity All the above None of the above 8. The most popular mutual fund schemes for investing short- term surpluses are: (a) (b) (c) (d) (e) Equity schemes Balanced schemes Debt schemes Hybrid schemes None of the above 9. Commercial paper is a: (a) (b) (c) (d) (e) Secured bill of exchange Unsecured bill of exchange Secured promissory note Unsecured promissory note None of the above 10. Which one of the following is secured in nature? (a) (b) (c) (d) (e) Certificate of deposit Commercial paper Treasury bill Ready forward None of the above KEY 1 (a) 2 (b) 3 (a) 4 (b) 5 (a) 6 (b) 7 (d) 8 (c) 9 (d) 10 (d) 46 CREDIT MANAGEMENT 1. Most commonly, the trade cycle for a business is financed partly by: (a) (b) (c) (d) (e) The sellers The buyers The financiers All the above None of the above 2. A bill of exchange contains a: (a) (b) (c) (d) (e) Unconditional ndertaking to pay Conditional undertaking to pay Unconditional order to pay Conditional order to pay None of the above 3. The beneficiary of a letter of credit is: (a) (b) (c) (d) (e) The seller The buyer The financing bank Either a or b None of the above 4. Which one of the following is not literally part of the „five C? s of credit (a) (b) (c) (d) (e ) Capital Character Capability Collateral None of the above 5. In sequential analysis of creditworthiness, which one of the following should be your starting point? (a) (b) (c) (d) (e) Capital Character Collateral General economic conditions None of the above 7 6. The measure not commonly employed for judging whether accounts receivables are â€Å"in control† is: (a) (b) (c) (d) (e) Ageing schedule Average collection period Bad debt losses Interest collected on delayed payments None of the above 7. In a consignment sale: (a) (b) (c) (d) (e) The title of the goods is with the consignor The title of the good is with the consignee Consignee is an agent of the consignor Both a and c None of the above 8. In type II error: (a) A bad customer is misclassified as a good credit risk. (b) A good customer is misclassified as a poor credit risk (c) None of the above 9. Under the DSO method, if the value of DSO exceeds the specified norm: (a) (b) (c) (d) (e) Collections are considered to be fast Collections are considered to be slow Collections are considered to be satisfactory Collections are considered to be average None of the above KEY 1 (d) 2 (c) 3 (a) 4 (c) 5 (b) 6 (d) 7 (d) 8 (a) 9 (d) 48 INENTORY MANAGEMENT 1. Maintaining ‘organisation' inventories is not for: (a) (b) (c) (d) (e) Reducing the time required for the process Widening the latitude in planning and scheduling successive operations Decoupling the purchasing and production activities to some extent Both b and c None of the above . Which one of the following is not the most commonly used tool of inventory management in India? (a) (b) (c) (d) (e) Just- in-time inventory control ABC analysis FSN analysis Inventory turnover analysis None of the above 3. ABC analysis advocates a selective approach to inventory control with concentration on: (a) (b) (c) (d) (e) Items accounting for the bulk of usage by usage quantity Items accounting for the bulk of usage by usage value The process time related to high value inventory All the above None of the above 4. Which one of the following is not an assumption in the basic EOQ model? (a) The cost of carrying is a fixed percentage of the average value of inventory (b) The cost per order is constant regardless of the size of the order (c) The interval between ordering and receiving goods is constant (d) The usage is even throughout the period (e) None of the above 5. Fixed manufacturing overheads are treated as period costs under: (a) (b) (c) (d) (e) Direct costing Absorption costing Indirect costing Variable costing None of the above 49 6. JIT inventory system requires: (a) (b) (c) (d) (e) Strong and dependable relationship with suppliers Reliable transportation system Either a or b Both a and b None of the above KEY 1 (a) 2 (a) 3 (b) 4 (c) 5 (a) 6 (d) 50 WORKING CAPITAL FINANCING 1. Accruals are treated as part of: (a) (b) (c) (d) (e) Spontaneous financing Regular financing Long- term financing Internal accrual None of the above 2. Which one of the following is the most harmful factor in getting trade credit? (a) (b) (c) (d) (e) Poor earning record Broken promises Unrealistic plans Poor market share None of the above . A firm typically should: (a) Delay the payment till the last day of the net period (b) Delay the payment if possible beyond the net period (c) Avail of the discount for prompt payment in the middle of the discount period (d) Avail of the discount for prompt payment on the last day of the discount period (e) None of the above 4. Which one of the following is not a means of obtaining working capital finan ce? (a) (b) (c) (d) (e) Overdraft Discounting of bills Letter of credit All the above None of the above . In a letter of credit arrangement: (a) (b) (c) (d) (e) Bank assumes the risk Bank supplies the credit Suppliers assume the risk Both a and b None of the above 51 6. In cash credit, the responsibility of cash management lies with: (a) (b) (c) (d) (e) The bank The customer The creditors Both b and c None of the above 7. Which one of the following is typically a demerit of public deposits, for an investor: (a) (b) (c) (d) (e) Interest rate Maturity period Tax exemption Restrictive covenants None of the above . Inter-corporate deposit market is charecterised by: (a) (b) (c) (d) (e) Secrecy Lack of regulations Personal contacts All the above None of the above 9. RBI imposes certain conditions on the terms of issue of a commercial paper because it is: (a) (b) (c) (d) (e) Issued for a short term Issued at a discount to the face value Unsecured Issued for raising working capital None of the above KEY 1 (a) 2 (b) 3 (d) 4 (d) 5 (a) 6 (a) 7 (c) 8 (d) 9 (c) 52 WORKING CAPITAL MANAGEMENT: EXTENSIONS 1. In a MRP system, the master schedule is exploded into: (a) (b) (c) (d) (e) Purchase order for raw materials Shop orders for scheduling the factory Time bound orders for purchase of balancing equipments Both a and b None of the above 2. In which of the following, inventory is treated as the „root of all evil (a) (b) (c) (d) (e) Kaizan Kanban JIT Both b and c None of the above KEY 1 (d) 2 (c) 53 DEBT AND HYBRID FINANCING 1. Market price of a coupon bond is independent of: (a) (b) (c) (d) (e) Maturity period Coupon rate Required rate of return Inflation rate None of the above . Which one of the following can affect real interest rate: (a) (b) (c) (d) (e) Expected higher inflation Tax law changes Heightened competition for funds Both b and c None of the above 3. A debt rating is not a: (a) (b) (c) (d) (e) General evaluation of the issuing organisation Reflection on the timely payment of interest Reflection on the timely payment of principal Recommendation for purchasing a security None of the above 4. Which one of the following is true? a) A debt rating implies that the rating agency performs an audit function (b) A debt rating offers low- cost information (c) A debt rating creates a fiduciary relationship between the rating agency and the users of a rating (d) Both a and b (e) None of the above 5. Which type of firms would do well to incorporate sinking fund provisions in their debt issuances? (a) (b) (c) (d) (e) Firms with higher debt – equity ratio Firms with higher growth rates Firms with smaller asset lives All the above None of the above 54 6. To tackle inflation risk, you will go for: (a) (b) (c) (d) (e) Deep discount bonds Fixed rate bonds Floating rate bonds Inverse floaters None of the above 7. If you are called to fund an airport project, you would prefer to go for (a) (b) (c) (d) (e) deep discount bonds floating rate bonds puttable bonds term loans None of the above 8. Pass Through Securities are serviced from the (a) (b) (c) (d) (e) proceeds of sale of a pool of assets cash flows received from a pool of assets proceeds of a public issue proceeds of a debenture issue for this purpose None of the above . Which one of the following is not a negative covenant in a bond issue? (a) (b) (c) (d) (e) The firm may not dispose or lease its major assets The firm cannot merge with another firm The firm cannot go in for capacity enhancement The firm cannot acquire another firm None of the above 10. When inflation is expected to rise in the coming decade, as a bond issuer, you will prefer to issue (a) (b) (c) (d) (e) Fixed rate bo nds Floating rate bonds Callable bonds Puttable bonds None of the above 55 11. Reinvestment risk for a bond refers to the risk that the periodic interest payment may have to be reinvested at (a) (b) (c) (d) (e) A lower interest rate A higher interest rate A risk-free rate (a) and (c) None of the above 12. For a zero coupon bond (a) (b) (c) (d) (e) Duration is zero Duration is one-half the term to maturity Duration is undefined Duration is the same as the term to maturity None of the above 13. Immunisation attempts to balance (a) (b) (c) (d) (e) Price risk and default risk Price risk and reinvestment risk Recall risk and reinvestment risk Inflation risk and price risk None of the above 4. Which bond has the longest duration? (a) (b) (c) (d) (e) 12-year maturity, 5 % coupon 12-year maturity, 7% coupon 8-year maturity , 7% coupon 8-year maturity , 5 % coupon None of the above 15. Which among the following may not be a plausible reason for a company issuing callable bonds? (a) (b) (c) (d) (e) Superior interest rate forecasting Greater investment flexibility Reducti on in interest rate risk Strategic positioning None of the above 56 KEY 1 (e) 12 (d) 2 (d) 13 (b) 3 (a) 14 (a) 4 (b) 15(d) 5 (d) 6 (c) 7 (a) 8 (b) 9 (c) 10 (a) 11 (a) 57 INTERNATIONAL FINANCIAL MANAGEMENT 1. International foreign exchange market is dominated by (a) (b) (c) (d) (e) Speculative transactions Hedging transactions Mercantile transactions Transactions between central banks None of the above 2. Exchange rates in India are fixed by: (a) (b) (c) (d) (e) Ministry of finance Reserve Bank of India Foreign Exchange Dealers Association of India A committee appointed for this purpose None of the above 3. Commission charged by foreign exchange dealers generally range from: (a) (b) (c) (d) (e) 0. 25 to 0. 50 percent 0. 02 to 0. 05 percent There is no particular range They do not charge any commission None of the above . The bid-ask spread reflects: (a) (b) (c) (d) (e) The breadth of the market The depth of the market The volatility of the market All the above None of the above 5. If the forward bid in points is less than the offer rate in points, which of the following is not true? (a) (b) (c) (d) (e) The foreign currency is at a premium The home currency is at a premium The foreign curr ency is at a discount Both a and b None of the above 6. Currency futures contracts are traded: 58 (a) (b) (c) (d) (e) Over phone/electronic media Over the counter by leading banks In exchanges In all the above In none of the above 7. A tailor made currency option can be purchased from: (a) (b) (c) (d) (e) Organised exchanges Banks dealing in foreign exchange Mercantile agents Investment banks None of the above 8. Eurocurrency market is: (a) (b) (c) (d) (e) 9. The advantage of issuing a GDR is: (a) (b) (c) (d) (e) There is no listing fee Onerous disclosures are not required There are no onerous reporting requirements All the above None of the above Market in which currencies of European nations are traded International market for loans denominated in euro International market for short-term capital International market for long – term capital None of the above 0. Which one of the following attracts stringent listing requirements? (a) (b) (c) (d) (e) Yankee bond ADS GDR Both a and c None of the above 11. Packing credit advance has to be liquidated: (a) (b) (c) (d) (e) By negotiation of export bills By receipt of export proceeds By availing of rupee term loan Either a or b None of the above 59 12. Forfaiting essentially refers to: (a) (b) (c) (d) (e) Financing exporter? s inventory Discounting exporter? s receivables Guaranteeing of the export receivables by the exporter? s bank Surrendering the export proceeds in favour of the discounting bank None of the above 3. The beneficiary of a Letter of Credit is: (a) (b) (c) (d) (e) Importer Exporter Exporter? s bank Importer? s bank None of the above 14. Forward contracts are entered into to hedge: (a) (b) (c) (d) (e) Transaction exposure Translation exposure Operating exposure All the above None of the above 15. Which one of the following may not be a means of mitigating operating exposure? (a) (b) (c) (d) (e) Change in sourcing Shift in the location of production Change in product-market combination Leading and lagging None of the above 6. As foreign exchange market is an OTC market, which of the following is not true? (a) (b) (c) (d) There is lesser price transparency Trades can be customised in terms of maturities There is risk of counter party default There cannot be differences in the exchange rates for the same currency pair, for different counterparties (e) None of the above 60 17. Which of the following currency is traded in both the euromarket and the offshore market? (a) (b) (c) (d) (e) US Dollar British Pound Euro All the above None of the above 18. The spread over SIBOR for a given borrowing is also a function of the prevailing market conditions: a. True b. False 19. Bonds issued by a German company in the US, denominated in dollars are : (a) (b) (c) (d) (e) Foreign bonds Domestic bonds Eurobonds International bonds None of the above 20. In the case of GDRs issued by Indian companies, the reverse conversion i. e. from shares to GDRs is freely permitted: a. True b. False KEY 1 (a) 12 (b) 2 (e) 13 (b) 3 (d) 14 (a) 4 (d) 15 (d) 5 (a) 16(d) 6 (c) 17(d) 7 (b) 18(a) 8 (c) 19(a) 9 (d) 20(b) 10 (a) 11 (d) 61 FINANCIAL MANAGEMENT OF SICK UNITS . RBI study on the causes of industrial sickness shows that the incidence of sickness is highest in India on account of: (a) (b) (c) (d) (e) Labour trouble Market recession Mismanagement and managerial deficiencies Faulty initial planning and other technical drawbacks None of the above 2. If CDR is not possible, the restructuring may be done through: (a) (b) (c) (d) (e) NS OTS ADB Either a or b No ne of the above 3. Which of the following is not a reason for classifying a unit as sick by term lending financial institutions? (a) (b) (c) (d) (e) Default in meeting a certain no. f consequent instalments Continued erosion of market share Cash losses for a certain period Continued erosion of net worth , say by 50 percent None of the above KEY 1 (c) 2 (d) 3 (b) 62 CORPORATE RISK MANAGEMENT 1. Economic risks mostly may not arise on account of : (a) (b) (c) (d) (e) Output price R&D Labour cost Competitive environment None of the above 2. In general, which among the following may not have any significant impact on the performance of a firm? (a) (b) (c) (d) (e) Economic risks Financial risks Technological risks Regulatory risks None of the above 3. Hedging activities aimed at reducing total corporate risk, are regarded as irrelevant by modern finance theory: a. True b. False 4. According to CAPM, only the unique risk has a bearing on the required rate of return: a. True b. False 5. Greater financial flexibility to cope with volatility in financial prices is provided by a: (a) (b) (c) (d) (e) High current ratio High gearing ratio Low gearing ratio High quick ratio None of the above 6. R2 refers to the : (a) (b) (c) (d) Coefficient of multiple regression Variance of regression Coefficient of multiple correlation Coefficient of multiple covariance 63 e) None of the above 7. Total risk cannot be fully offset by hedging with market portfolio: a. True b. False 8. If you want to hedge interest rate risk, you should (a) (b) (c) (d) (e) Go long on interest rate contract Go short on interest rate contract Sell a forward contract Enter into a forward rate agreement None of the above 9. Futures are forward contracts: a. True b. False 10. Y ou will not be marked to market, if you: (a) (b) (c) (d) (e) Purchase a futures contract Sell a futures contract Purchase an options contract Sell an options contract None of the above 11. In a currency swap interest payments are not swapped: a. True b. False 12. Which of the following may not be a reason for going in for a financial swap? (a) (b) (c) (d) (e) Spread compression Market segmentation Market saturation Difference in financial norms None of the above 13. Which among the following is not standardized: (a) (b) (c) (d) (e) Options contract Futures contract Swap contract All the above None of the above 64 14. Insurance companies do face the problem of adverse selection but not that of moral hazard: a. True b. False 15. Globally the most popular measure of risk is: (a) (b) (c) (d) (e) Duration VAR R2 Gap analysis None of the above 6. For commodities the following relationship is expected to hold: Futures price (a) (1+rf)t Futures price (b) (1+rf)t Futures price (c) (1+rf)t Futures price (d) (1+rf)t (e) None of the above = Spot price – Present value of storage costs + Present value of convenience yield = Spot price + Present value of storage costs – Present value of convenience yield = Spot price+Present value of storage costs + Present value of convenience yield = Spot price KEY 1 (b) 12(e) 2 (e) 13(c) 3(a) 14(b) 4(b) 15(b) 5(c) 16(c) 6(c) 7(a) 8(d) 9(a) 10(c) 11(b) 65

Customer Service Operations and Excellence Essay - 1

Customer Service Operations and Excellence - Essay Example The ultimate measure quality of any service is the customer’s perception of the service (Heinonen 2009, 10). An organisation is taken as a social system with an economic purpose. Any strategy taken by an organisation has to ensure fit with the environment of operation, has to be distinct in creating a value chain and increasing competiveness, and has to be sustainable. The strategy has to maintain its distinctiveness and the operating environment changes; strategies basically increase customer value while at the same time reducing the cost of the service to the customer (Anderson, Healey & Locke 2005, 14). Therefore, achieving operational excellence in process that support the customer leads to greater customer intimacy, making decisions to be taken in accordance with the needs of the customer, which leads to operational excellence in an organisation. 2.0 Service Process at BOI Bank 2.1 Service Background The service process is in BOI bank. ... Customers have to queue in lines with the most populated line being the deposit /withdrawal line. There are five counters serving this queue; at any one time five people have to be served simultaneously. Besides this, at least 25 people must be lining up at the queue waiting to be serviced with the number ranging from 10 in low business hours, to at least 40 in high business hours. Customers have to queue while standing, which becomes a challenge in long queues, though the old and the handicapped are allowed to bypass such lines to be served directly. Though the bank representative at the counters serve with due diligence and commitment, in some cases customers claim to spend unnecessary longer durations, which impacts on their businesses, while at the same time making them tired. This may be a sign of poor management and lack of maintaining services operational excellence in ensuring customers spend the least time possible in queues. The chart below summarizes the banking process in the banking hall. 2.2 Service Blue Print A blue print is ideal in providing a common point of discussion necessary when developing new services. Baums (1990, 46) argues that blueprint analysis aims at exposing inefficient time usage, unnecessary labor, but may also be used in selection, recruiting and training. These factors have become real challenges to businesses currently and have an impact on inefficient use of time and increased labor costs (Gemler 2011, 26). A business has to balance between having excess employees, which would be an added cost to the company, and time taken by an employee to queue and get services, which requires the two extremes to meet at the customer comfort zone. The queuing theory states the time taken by customers to arrive at a line, or

Assignment Essay Example | Topics and Well Written Essays - 250 words - 16

Assignment - Essay Example a result, the native trout grew slowly and matured late; the elevation, sex, and genetic introgression have something to do with the effects on growth rates. The rates were decreased at higher elevations and males were larger than females. In addition, cutthroat trout in locations introgressed faster than those located in non-introgressed areas (Belk, McGee & Shiozawa, 56-62). In relation with cutthroat trout in Uintah Basin, the WWF (World Wild Fund) organization works toward the conservation and protection of endangered species. The goal of the organization is to utilize the very best conservation available and participate with the people to find solutions to the arising problem on our environment. The WWF has started in the year 1961 and almost a half century now has shown the vital conservation of species and other natural resources. Therefore, the efforts have brought many animals back from the edge of destruction and bring benefits to local people through new livelihood opportunities and sustainable development. In contrast, human activities led to current rate of species extinction which is at least 100-1,000 times higher than the expected natural rate. The destruction causes loss of species of tigers, rhinos and whales. The species and ecosystems are affected because they are all part of providing essential goods and services that make human life possible and have also contributed to health and well-being (Klenzendorf, n.p.). In conclusion, conservation awareness; stimulation and funding really contributes a lot in places whose populations are threatened and endangered because of illegal hunting, logging and fishing (Klenzendorf, n.p.). Belk, Mark., McGee, Michael and Shiozawa Dennis. Effects of Elevation and Genetic Introgression on Growth of Colorado River Cutthroat Trout. Brigham Young University: Monte L. Bean Life Science Museum, 2009, pp.

The Ethical Issues Concerning Abortion Essay Example | Topics and Well Written Essays - 500 words

The Ethical Issues Concerning Abortion - Essay Example Normally I would say it is a bad idea to totally base one’s argument of an assumption, and I think that that is usually a good rule of thumb to follow when constructing an argument, especially if there can be found a hole in your argument based on the assumption that you made right from the start! However, in this instance, I feel that her assumption if somewhat justified. The writer attempts to back up their argument by tossing around names of other people who believe as she does, and instead of trying to argue against them she decides to assume they are correct and argue with them. It is an interesting stylistic way to present an argument. It does solve the problem of having to argue that point, as she comes off right from the bat stating that she will not argue that and that the whole argument is based off the idea that is taken for an assumption. And while I originally thought it would be ineffective and not work well in the thought process of an argument, it ends up worki ng out quite well for the writer throughout the course of the article. It works for one reason, and it is because of this that I think it is justified to use that assumption. I can find no holes in that assumption, and it is a very fit and sound one to start off an argument. For is the whole abortion debate not over whether or not a fetus is a person? The whole idea is debated over whether or a not a fetus is a person unfit to kill or not, and the assumption that the whole argument is based off that is correct because that is the entirety of the abortion argument. Now, you might think that there is more to the argument than that, but the author debunks that idea in their next paragraph and states that this whole argument is going to be base on the ethics of abortion; not the subtleties that exist in various cases. And with these ideas, she starts up and opens what is followed by a very sound argument, one that totally supports the sound assumption it is based on. I found myself bein g impressed, as I originally was holding out to bust the earlier assumption, and soon found myself thinking that it really is all about the idea of a fetus and if they are in fact people or not. In the end, I believe it is a totally justifiable assumption, and it works exceedingly well in the course of the written argument, even though I did not think that to begin with.  Ã‚  

The Kite Runner Assignment Example | Topics and Well Written Essays - 250 words

The Kite Runner - Assignment Example It enables an individual reading it to get into the central character’s mind (Amir) in all of the happenings he goes through. It is almost as if the reader’s sensation is the same sentiments as Amir. The subjects used in this novel were very fascinating. They vary from interactions between family members and trustworthiness among friends to the terror war and social glitches of the epoch (Hosseini, 7). This hints me to another phase that kept me so fascinated with this novel. I learned many new things about the past and ethos of Afghanistan and its people. It was amazing to learn about the difficulties Afghans encountered during the time the Russians had control of the area. It was surprising to see the variance in social class centred on the race or diverse divisions of Islam. I knew that Sunni and Shi’a had problems but I did not know to what extent. It was fascinating to learn that Sunni and Shi’a had difficulties but I did not know to what level. There is so much history and culture in the novel revealed but still the novel has a beautiful and inspiring story (Hosseini, 8). In conclusion, the relationships between the characters in this novel are filled with so many sentiments. Every character has his/her own division and significance, which keeps the reader amused. When these divisions are organised, it makes the novel to be interesting. I have to say that my preferred portions were the sections that show the situations of war during the Taliban control. Many of the actions are filled with suspense. The parts with action in the novel made me not to stop reading it. This novel is really a page-turner and I endorse it highly to all readers in high school

Alcohol Based Solution and Standard Handwashing Essay

Alcohol Based Solution and Standard Handwashing - Essay Example It concluded that hand-rubbing with liquid aqueous alcoholic solution could be safely used as an alternative to traditional hand-scrubbing in surgical practices. 2. The research done by Girou, et al. at 3 intensive care units in a university hospital in France, 12 healthcare workers were allocated to hand-rubbing with a waterless alcohol based solution and 11 were allocated to hand-washing with antiseptic soap. It concluded that the median percentage reduction in bacterial contamination with hand-rubbing was significantly higher than with hand-washing. 3. Research conducted by Karabay, et al. 35 nurses were randomly selected from a nursing staff of 141 and divided into 2 groups: hand rubbing and hand washing. Hand rubbing with alcohol-based solutions significantly reduced the bacterial contamination of the hands of the nurses more than hand washing with an antimicrobial soap. Compliance was also better in the hand rubbing group than in the hand washing group. While framing our hypothesis we should consider the objective of our research. The purpose of this research is to compare hand-hygiene and skin condition after hand-rubbing with an alcohol based solution or washing our hands with an antiseptic soap. So, the primary object of our comparison would be 'hand-hygiene'. To measure hand-hygiene, we make a natural assumption that "Hands with lesser bacterial contamination are more hygienic". ... So, the primary object of our comparison would be 'hand-hygiene'. To measure hand-hygiene, we make a natural assumption that "Hands with lesser bacterial contamination are more hygienic". Therefore we frame the following hypothesis as our 'Null Hypothesis'. H0: The median percentage reduction in bacterial contamination using Alcohol Based Solution (ABS) is greater than that with hand-washing with liquid soap solution (LSS). i.e. H0: MeABS > MeLSS Our 'Null Hypothesis', in simpler words states that by using Alcohol Based Solutions we kill more bacteria on our hands and achieve disinfection better than liquid soap solutions. Our 'Null Hypothesis' thus assumes the objective of our research to be true. So, in a similar manner we can also state our 'Alternative Hypothesis' as: Ha: The median percentage reduction in bacterial contamination using Alcohol Based Solution is less than or equal to that with hand-washing. i.e. Ha: MeABS MeLSS Step 2: To Formulate an Analysis Plan For our analysis, we would be using the data obtained from three separate research projects carried out on similar topic. 1. Research conducted by Parienti, et al. at six surgical services from teaching and non-teaching hospitals in France, conducted between January 1, 2000 and May 1, 2001. In their research, "surgical services used two hand cleaning methods alternatively every month: a hand-rubbing protocol with 75% aqueous alcoholic solution and a hand-scrubbing protocol with antiseptic preparation." (Parienti et al, 2002) Thirty-day surgical site infection rates were the primary factor being monitored. 2. In the research done by Girou, et al. at 3 intensive care units in a university hospital in France in 2002, 23 nurses and nursing assistants had volunteered to participate. "12

Evidence Based Medicine Essay Example | Topics and Well Written Essays - 4000 words

Evidence Based Medicine - Essay Example They point out that the journals have a scholarly rather than practical approach to solving clinical matters at hand, (Department of Medical Sociology, 1998). With the aim of exploring the barriers that GPs face in the implementation of EBM in routine clinical work and identifying possible strategies in its integration in daily work; studies have been carried out to explore this phenomenon in various parts of the world. One such study was carried out by Kenneth S Yew (MD) and Alfred Reid (MA) from the Uniformed Services University and The University of North Carolina respectively, (Physicians for the twenty-first century, 1984). They held focus group discussions with 10 General Practitioners (GPs) in public and private practice in the randomly selected from Charlotte and its environs. The aim was to find out the long term effects of teaching Critical Appraisal and Evidence Based Medicine on practicing physicians. Their goal was to explore ways in which the long-term outcomes of an integrated CA/EMB curriculum could be evaluated using a qualitative analysis of self-reported use of the two skills in everyday medical practice. Their secondary goal was to find out barriers to CA/EMB application. Reinhold Wentz has estimated that 50,000 physicians, students and health care workers receive training each year, Wentz R. (2001). P Participants mentioned that they had found the approach they used in residency was still helpful to them in situations that they faced as full time GPs, but only in circumstances that allowed them to search and reflect. However, where they immediately had patients to deal with, they preferred to rely on their own intuition and experience. A good number of them expressed guilt that they were not applying the EBM methods even though they were fully aware of how useful these were. Consequently, when it came to the question of barriers, almost all those interviewed were unanimous that time was the main culprit. Some pointed out that where they had to choose between attending to patients and making references, they often found themselves opting for the former. About 30% of the respondents said that they applied the EBM methods regularly but not when resolving an immediate clinical question. Conversely, all the participants were also unanimous on the importance of attending CME courses and as a matter of fact they did attend them. They were sure that they valued keeping up to date as it gave them immense satisfaction. 2% of the participants identified CME as their primary self-learning method. All reported that they regularly read journals while 5% read their specialty society journal regularly. About half also identified teaching and questions arising from patients as their main incentive for learning. Apart from luck of time, the participants also mentioned that the nature of their work kept them constantly under pressure to produce clinically. The majority expressed frustration at this constant pressure to perform, a common sentiment among GPs. Barnett SH et al (2000). Unfortunately, none of them associated performing in their duties with applying EBM since they mostly regarded this as a drawback on quick efficiency. Yet they all felt that they could do their work muc h better if they found the space in their punishing schedules to make references a little more and keep up to date. They figured

Bank first Essay Example | Topics and Well Written Essays - 500 words

Bank first - Essay Example 381- 384). Factors that influenced demand curve of houses to shift to the right are increased disposable income through mortgages and a consequential demand level. This increased the aggregate demand to raise the equilibrium price (Boyes and Melvin, p. 49- 50). Factors that caused a shift in supply curve are reduced consumer’s financial capacity, the legal provision for foreclosures and the reduced number of people who could buy the available homes. This had an effect of lowering the equilibrium price (Boyes and Melvin, p. 54- 56). The U.S. economy was at the depression stage during the housing crisis. This is because of the comparative condition that unlike previous poor economic conditions in which banks could resell foreclosed homes, the period was the worst, and such resale was not possible (Boyes and Melvin, p. 132). The economy is currently at the recovery stage, a stage that follows depression towards restructuring. The recovery period is also identifiable by the transition that followed the crises such as government initiative to save the banking sector through bailing them. The banking industry has however not reached its peak performance (Boyes and Melvin, p. 132). The government efforts to bail out the banks did not prevent depression. This is because it played a microeconomic role to a single sector of the economy instead of ensuring a comprehensive approach to the macroeconomic problem. This is however not the proper role of the government whose responsibility covers all sectors of the economy, including protection of consumers. The company’s identified risk factors include inconsistency in â€Å"economic and financial environment† that sometimes adversely affect performance, lack of confidence in the government’s ability to ensure a stable economic status, variation in interest rates that sometimes lowers

Change using frame theory of Kurt Lewin Essay Example | Topics and Well Written Essays - 500 words

Change using frame theory of Kurt Lewin - Essay Example These stages are unfreezing, movement, and refreezing stages. Unfreezing is the stage when the person needing the changes realizes and accepts that the change is needed. In the stage of movement, the suitable approaches and measures are decided that would actually bring about the changes in the needed, ensuring that the driving forces can positively influence the person towards the change (Marquis and Huston, 2009, pp.167-169). The last stage is the refreezing stage where the change stabilizes the system and hence the change gets integrated into the life of the person. Without this stage, the change would remain ineffective (Marquis and Huston, 2009, pp.167-169). The study of Lewin was focused on a deep understanding of the mind of the humans and their personalities. This is particularly suitable in regard to the fact that the factors that influence individuals vary from person to person and hence understanding of such driving forces need to be identified (Friedman, 2008, p.238). This particular theory would enable to bring about change in the person, say ABC, talked about in this study where the following steps would be considered. Step 1: Unfreezing: In this step, ABC will be tried to be communicated and understood how overweight and hypertension are harmful for the health, and that control on these factors is essential. The negative effects of ice-cream, cheese cake and heavy meals will also be explained to him. Step 2: Movement: In this step the step 1 will be performed with the help of the driving forces of ABC. The major driving forces of ABC are his family and his girlfriend. Thus his family members and his girlfriend will have to take the initiative to constantly talk to him about how he can positively influence his life avoiding the heavy meals and ice-creams. This can be achieved through offering him with other healthy foods and habits such as exercises, tours, visits to different places that he would enjoy and not indulge in bad

Human Resource Management Project Essay Example for Free

Human Resource Management Project Essay Introduction Human Resource Management is defined as the policies, practices and systems that influence an employee’s behaviour, attitude, and performance in the attainment of organizational goals, and it is also a way of management that links people-related activities to the strategy of a business or organization. Now days, the human resource has an important function in the companies or organizations. The human resource provides significant support and advice to line management because many companies consider their human capital as their most important asset. The purpose of this report is to compare and contrast the human resource management between India and Canada. This report will describe the human rights, recruitment, selection, training and development, and health and safety of Indian companies, and research the role of human resource in the recruitment and selection processes of Indian companies, and finally compare and contrast them to Canadian human resources practices. Moreover, this report will also analyze the cultural differences between Canada and India. The report aims to find difference human resource management between Canada and India, and improve the human resource management system of Canada. Role of Human Resources in the Recruiting and Selection Human resource plays an instrumental role in helping their organization achieve its goals of becoming a socially and environmentally responsible firm. In India, there is large-scale unemployment with shortage of skilled labour, hence, the role of HR in recruiting will provide the necessary tools to maintain a positive competitive labour market. Clearly defined role of Human Resources in Recruitment process is very important for measuring the success of the whole Recruitment Process. The overall setting of the HR Role in Recruitment is directly linked to Recruitment Strategy and HR Strategy. [1] Human resource and hiring managers play a highly significant role for setting the correct measures and defining the potential gaps in the whole recruitment process. The role of Human Resources in India is increasing, from making the process working to the real management of HR Processes and the Recruitment Process was the first to manage. The Recruitment Strategy changed the efficiency and costs to the company were more important.[2] The role of HR in recruiting and selection process in India has following factors: 1) Decides about the design of the recruitment processes and to decide about the split of roles and responsibilities between Human Resources and Hiring Manager 2) Decides about the right profile of the candidate 3) Decides about the sources of candidates 4) Decides about the measures to be monitored to measure the success of the process The role of HR in Recruitment is very important to work on the development of the recruitment and selection process and to make the process very competitive on the market. Good recruitment and selection can make sure the organization has enough advantaged and appropriate employee and managers; in addition to that, it can lead to company work more efficiency. * Recruiting process has following steps: 1. Identify vacancy 2. Prepare job description and person specification 3. Advertising the vacancy 4. Managing the response 5. Short-listing 6. Arrange interviews 7. Conducting interview and decision making * Selection involves the following components: Reception, screening interview, application blank, selection test, selection interview, medical test, reference checks, and hiring decision. Chap: 3 Human Resource practice in India India is being widely recognised as one of the most exciting emerging economics in the world. Besides becoming a global hub of outsourcing, Indian firms are spreading their wings globally through mergers and acquisitions. During the first four months of 1997, Indian companies have bought 34 foreign companies for about U.S. $11 billion dollars. This impressive development has been due to a growth in inputs (capital and labour) as well as factor productivity. By the year 2020, India is expected to add about 250 million to its labour pool at the rate of about 18 million a year, which is more than the entire labour force of Germany. This so called ‘demographic dividend’ has drawn a new interest in the Human Resource concepts and practices in India.[6] In a general, if we look at the history of Human resource practice in recent years, we can see effect on the managerial history of India was to be provided by the British system of corporate organisation for 200 years. Clearly, the socio cultural roots of Indian heritage are diverse and have been drawn from multiple sources including ideas brought from other parts of the old world. In India, the Human resource management practice is in transition face it is learning new ideas from other parts of the world and also with growing population and growing multinational companies coming to India the work culture is continuously improving. One of the noteworthy features of the Indian workplace is demographic uniqueness. It is estimated that both China and India will have a population of 1.45 billion people by 2030; however, India will have a larger workforce than China. Indeed, it is likely India will have 986 million people of working age in 2030, which will probably be about 300 million more than in 2007. And by 2050, it is expected India will have 230 million more workers than China and about 500 million more than the United States of America (U.S.). It may be noted that half of India’s current population of 1.1 billion people are under of 25 years of age.[7] While this fact is a demographic dividend for the economy, it is also a danger sign for the country’s ability to create new jobs at an unprecedented rate. As he has been pointed out by Meredith. [8] Here are some key factors responsible for shift in HRM practice in India [9] Above figure presents the key drivers for contemporary Indian HRM trends. In Figure, there are four external spheres of intervention for HRM professionals and these spheres are integrated in a complex array within organisational settings. The intellectual sphere, which emphasises the mindset transaction in work organisations, has been significantly impacted by the forces of globalisation. The other three spheres, of figure, namely the emotional, the socio cultural and the managerial domains are undergoing, similar profound changes. Key HRM Practices in Indian Organisations: The above figure describes the general HRM practise in Public sector Organization. In private sector the HRM sector is not organized. In Private sector THE HRM practice depends on individual company basis. Company Profile: Infosys technology is a leading software company based in India which was established in 1981 and is listed in NASDAQ as a global consulting and IT services company with more than 122,000 employees. From a capital of US$ 250 they have grown to become a US$ 5.38 billion company with a market capitalization of approximately US$ 38 billion. In their journey of over 29 years they have catalyzed some of the major changes that have led to Indias emergence as the global destination for software services talent. [10] Recruitment Process: The Company uses different sources like Campus Interviews, advertisements in newspapers and applications received through the company website. Firstly, they do not have any distinction between any branch of Engineering, applicant from any branch can apply for the selection process but the only criteria is to meet the requirement of grades, the applicant should be very well qualified and should have high grades and the time gap which means if any of the applicant was rejected in the selection process then they can only apply after 9 months. The qualified candidates are shortlisted and are called for a written test. [11] Selection Process of choosing individuals with qualifications needed to fill jobs in an organization. The duration of the selection process in Infosys is 2.5 hours which includes filling in an application form, an Aptitude Test ( Analytical Thinking and Arithmetic Reasoning) and a test of Communicative English Language. The duration of the tests is 90 minutes and the Aptitude Test consists of puzzles type and the number of questions varies between 9 to 15. [12] Training and Development Infosys training, continuing education and career development programs are designed to ensure that the technology professional enhances their skill-sets in alignment to their respective goals. The following are the types of training provided by Infosys to their new recruits and employees. Technical Training by Education and Research Department Most of the new candidates that are hired complete 14 weeks of integrated on-the-job-training prior to being assigned to their business units. All these training are done in a total area of 1.44 million square feet in The Infosys Global Education Center in Mysore- India, which can train approximately 14,000 employees at a time. As of March 31, 2010 they employed 610 full-time employees as faculty which included 208 employees with doctorate or masters degrees. The faculty also conducts integrated training for the new employees. They also make employees to undergo certification programs each year to develop the skills relevant that are for their roles. [13] Personal Effectiveness and Managerial Programs The above program is to enhance the managerial capabilities and leadership abilities in order to have better customer satisfaction, achieve their organizational vision and to create high performing multicultural teams. [14] Performance Management Creating an equitable and inclusive work environment In 2008-09 Infosys were recognized for their efforts to promote a more inclusive work environment. They won the Corporate Award for Excellence in Gender Inclusivity instituted by the National Association for Software Companies (NASSCOM), India, for the second consecutive year. They also received the Helen Keller award which was instituted by the National Centre for Promotion of Employment for Disabled People, for the third consecutive year and they also won the ASTD Excellence in Practice Award for diversity training. [15] The Head -HRD, is the custodian of equal employment opportunity. The Diversity Office and the HR department are responsible for coordinating efforts in implementing and disseminating information regarding the company’s diversity agenda. Being an IT services company they do not have any business identified as having risk for incidents of forced or compulsory or child labour, therefore they foresee risk of child labour in their supply chain in India, and therefore controls it through the vendor selection process. Compensation and Benefits Infosys compensates its human assets in three ways by adding learning value through training and development and appraisal practices. Infosys also adds emotional value through initiatives directed towards supporting employees with their work and personal needs and they also adds financial value through monetary compensation which is neither above nor below the market level. Infosys was one of the first Indian companies to offer stock option plans to their employees. Benefits Infosys work-life policies reflect local requirements and regulations. The employees in India are eligible for paid maternity leave and paternity leave under the law which is referred as the Maternity Benefit Act, 1961 under which pregnant women can take paid leave up to 14 weeks, first seven weeks before delivery and other seven weeks after delivery and the maximum payment is $441.6 per week before tax. They also have satellite offices for new mothers, telecommuting for employees on need basis, adoption leave, flexible work hours, part-time work policy, one-year childcare sabbatical policy and near-site day care facilities. Employees can apply for scholarships for their children who have excelled in academics, arts and culture. Infoscions can also apply for extended family healthcare coverage. [16] In addition to that they are also provide benefits such as statutory benefits as pension, medical insurance under Employee State Insurance Scheme which is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act and is designed to accomplish the task of protecting ‘employees’ against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families. An employee covered under the scheme has to contribute 1.75% of the wages whereas, an employer contributes 4.75% of the wages payable to an employee. The total contribution in respect of an employee comes out to 6.50% of the wages payable. They are also offered loan program which was found attractive to the employees. Loans were taken for pursuing a degree program such as MBA, or to meet personal needs such as purchasing a car or a house. [17] Health and Safety The Health Assessment and Lifestyle Enrichment (HALE) program supports their healthcare policies at a global level. In Australia they have a unique practice of having a specialist available on call for ergonomics assessment in the work area. They also provide annual health checkups for all employees at their India-based locations. [18] Chap-4 Comparison and Contrast between HR practice of India and china In comparison between India and Canada India’s ranks higher in Uncertainty Avoidance Index than Canada which means Indian wants clear cut responsibilities and job description. India’s Power Distance rank is also higher than Canada which means that in India there is unequal distribution of wealth and power in the society. India and Canada are at the opposite ends in terms of Individualism, with Canada displaying much greater Individualism than the collectivist society of India. Canadians are more autonomous and self-control in the ability to make decisions and wants to work without direct supervisions, than Indian employees. Indian employees like to work more in tandem with their managers when setting personal goals than did Canadian employees. Indians are more forward thinking when planning actions and goals which found significant correlations between these differences in perceptions and differences in cultural characteristics which include power distance, uncertainty avoidance, and paternalism. Canadians scored lower on these traits than Indians. [19] Chap – 5 About Cultural differences and Implications to Professional Practice India is a country in conversion. History, society, economic and cultural factors strongly influence Indian Human Resource Management (HRM) and mindset. The dynamic changes taking place in India, and their consequent influence and reflection in Indian HRM, the following factors provide essential background and context about key aspects of the Indian: language, geography and generational differences. Following the strong influence of the society cultural context in India does not always allow the applicability of Western management and organization theories. [3] Pawan S. Budhawar, the Indian management scholar, he emphasizes that â€Å"to a great extent, this is a core issue for Western firms operating in the Indian context and sends a clear message to researchers in the field. The intention of both HR practitioners and researchers should be to continuously develop, test and re-test constructs suitable for conducting research and develop relevant practice in the Indian context.† [4] With the challenge of mixing Western management practices with Eastern management traditions, we have to understand the Indian HRM context and its related influence on mindset is a necessity for both Indian and Western organizations. In a typical leadership development project, here is an assumption about: First, there are more qualified candidates than available leadership positions (could be internally or externally. Second, turnover of employees identified as ‘key talent† will not increase. Third, employees who are not identified as â€Å"k ey talent† will accept that the assessment process is fair. Indian human resource management will continue to evolve, and it will continue to be important characteristic of growth and sustainability. Chap – 6 Other relevant topics Generally speaking, In the process of recruiting, training management, the performance of India and Canada is similar. They use similar strategies for select right employees, like internal and external recruitment. Using skills tests and talent questions helping employers find a best person for the job. On the other hand, there are some obvious differences. Firstly, in Canada, there are a lots of policies (Provincial and territorial human rights legislation, Canada Human Rights Act) implemented by federal or national governments to protect the rights of employees, like policies about minimum wage employer must pay to workers, sexual orientation, marital status, and maximum work time. Besides that, when the rights of employees was ruined, employees can complain with some constitution including The Canadian Charter of Rights and Freedoms, Citizenship Commission. On the other hand, the policies protecting employees are scary. Employees look for job by individual, and the salary and benefits paid to employees is determined by employers. Because India in a labour intensive country. The price is cheaper than Canada obviously. In addition, India do not have policies about minimum wage. The codes protecting the rights of women and young are in little quantities. Which is more, compared with Canada. It is harder for employees in India sue the company which exploits them. For instance Even though India is a labour intensive country, because of high growth of developing, it is not a big problem to find a job in their own country. A lot of jobs are created because of the increasing of market demands. Since Canada is multicultural country. You can find people from Australia, Asia and Europe. They are seeking jobs in Canada. Apart from this Canada is a secular Country. So Canada has a lot of policies about avoiding discrimination like religion, race and color. Conclusion: By analyzing and studying various reports and research paper we can say that there is vast difference between the HR practice between India and Canada. The rules and regulation regarding Human resource management are quite similar in both countries. The government of both Countries has made clear rules and regulations, but in India there is lack of implementation of the rules. Various research paper also indicates that the HRM is in transition phase, due to globalization the global practice becoming more and more familiar to Indian corporate groups. The study also suggests that there is socio-cultural influence on HRM practice in India. India has to go far to reach global HRM practice, but it is also showing good positive changes in terms of positive HRM policy guideline and support from government. Bibliography: 1. http://hrguide.applezoom.com/2007/09/hr-role-in-recruitment 2. (http://hrguide.applezoom.com/2007/09/hr-role-in-recruitment 3. http://www.shrm.org/Research/Articles/Articles/Documents/ 4. Budhwar, P. S. (2009). Challenges Facing Indian HRM And the Way Forward. In P. S. Budhwar J. Bhatnagar (Eds.), the Changing Faces of People Management in India (pp. 289-300). New York: Routledge. 5. Adapted from Towers Perrin. (2008). 2007-2008 Towers Perrin global workforce study. Retrieved August 26, 2009, www.towersperrin.com 6. http://rphrm.curtin.edu.au/2007/issue2/india.html 7. Chatterjee, S.R. (2006). Human resource management in India. In A. Nankervis, Chatterjee, S.R. J. Coffey (Eds.), Perspectives of human resource management in the Asia Pacific (41-62). Pearson Prentice Hall: Malaysia. 8. Meredith, R. (2007). The elephant and the dragon: The rise of India and China and what it means for all of us. New York: W.W.Norton Co. 9. http://rphrm.curtin.edu.au/2007/issue2/india.html 10. http://www.infosys.com/about/who-we-are/Pages/history.aspx 11. http://www.ittestpapers.com/articles/-infosys-selection-procedure.html 12. http://www.infosys.com/investors/reports-filings/annual-report/annual/Documents/Infosys-AR-08.pdf 13.