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Q:

A sum is being lent at 20 % per annum compound interest.what is the ratio of increase in amount of 4th year to 5th year?

A) 4:5 B) 5:4
C) 5:6 D) can't be determined
 
Answer & Explanation Answer: C) 5:6

Explanation:

 

P1+r1004P1+r1005=11+r100 =100100+r=100120=56 

 

                

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Filed Under: Compound Interest

Q:

Rs 1000 is being  charged at 50% per annum. what is the interest for 3rd year at compound interest?

A) 1122 B) 1025
C) 1125 D) 625
 
Answer & Explanation Answer: C) 1125

Explanation:

Total amount for two years =  1000×1.52=2250

 Now , interest for third year = 2250×50×1100=1125

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Filed Under: Compound Interest

Q:

The Committee has criticized the Institute for its failure to implement a dozen of regular programmes despite an increase in the staff strength and not drawing up a firm action plan for studies and research.

 

Courses of Action:

I.The broad objectives of the Institute should be redefined to implement a practical action plan.

II.The Institute should give a report on reasons for not having implemented the planned programmes.

A) Only I follows B) Only II follows
C) Neither I nor II follows D) Both I and II follow
 
Answer & Explanation Answer: D) Both I and II follow

Explanation:

The problem is that despite an increase in staff strength, the Institute has failed in its objective of implementing its plan. So, either there should be reasons for the lackening or the plans are a failure and must be revised for practical implementation. Thus, both the courses follow.

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Q:

It is reported that though Vitamin E present in fresh fruits and vegetables is beneficial for human body, capsule Vitamin E does not have the same effect on human body.

 

Courses of Action:

I. The sale of capsule Vitamin E should be banned.

II. People should be encouraged to take fresh fruits and vegetables to meet the body's requirement of Vitamin E.

A) Only I follows B) Only II follows
C) Neither I nor II follows D) Both I and II follow
 
Answer & Explanation Answer: B) Only II follows

Explanation:

The statement implies that capsule Vitamin E does not function so effectively as natural Vitamin E. Since no negative effect of capsule Vitamin E is mentioned, so I does not follow. Hence, only II follows.

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Q:

Controlling marketing activities :

What is annual plan control? Why is it needed in an organisation?

Answer

The annual plan control is one of the four types of marketing control system. Annual plan control is essential in order to determine whether all the marketing efforts undertaken by the organisation has been really worthwhile or not. It aims to achieve sales volume,profits and all those objectives which have been set up in the beginning of the year. In an organisation,the top management and middle level management are responsible for the annual plan control. They have to keep a check on the activities undertaken to implement the plans.


 


 

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Q:

Selecting and managing marketing channels :

What are the factors to be considered before deciding upon setting up a channel?

Answer

a.Understanding the customer profile : the tastes,preferences, habits of the customers may differ from person to person.


b.Determining the objective as to who would be the target market, whether the company wants to go for cost minimisation or not etc.


c.Type of channel members :Who all would be involved? Wholesalers, retailers?


d.The criteria on which the channel members would be evaluated and selected.


e.How many intermediaries will be involved in the overall distribution?

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Q:

Selecting and managing marketing channels :

How are the channel members managed and motivated, once they are selected?

Answer

These days channel members are being accepted by companies as their partners. The intermediaries are even being asked to integrate their business with the companies which results in lesser costs, greater efficiency and improved customer service. Corporates like Airtel are adopting PRM (Partner relationship management) software to give that added advantage to their supply chain. They organise rewards and recognition programs for their channel partners and also organise proper channels though which partners can vent any of their grievances relating to payments, violation of codes etc.

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Q:

Selecting and managing marketing channels :

On what criteria can channel members be evaluated for their proper selection?

Answer

The SCPCA method can be used to evaluate channel members.


a) Sales (S): How much sales each channel member can give within a cetain time frame


b) Cost(C): How much cost would be incurred for each channel?


c) Profitability(P): Which channel can give better profitability to the company?


d) Control(C): Whether company can have better control over its channel members or not.


e) Adaptability (A): Whether the channel alternatives are flexible enough to any changes or not. The channel meeting the objectives of the company is selected

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