Questions in: Operations Analyst

Right Answer:
The hands of a clock coincide 22 times in a day.

Right Answer:
The average weight of the first 25 persons is 65 kg.

Right Answer:
The speed of the faster train is 72 km/h.

Right Answer:
The ratio of the speed of the motorcycle to the speed of the car is 5:8.

Right Answer:
The sum of money will double itself in 33.33 years at 3% per annum simple interest.

Right Answer:
The answer is 6.

Right Answer:
P and Q should share their profits in the ratio of their investments, which is 3:4.

Right Answer:
The number is 40.

Right Answer:
Z alone can do it in 36 days.

Right Answer:
76 revolutions.

Right Answer:
Retained earnings, also known as ploughed back profits, refer to the portion of a company's net income that is kept in the business instead of being distributed to shareholders as dividends. This money is reinvested to fund growth, pay off debt, or improve operations.

Right Answer:
Registered debentures are recorded in the name of the owner, and interest payments are made directly to the registered holder. Bearer debentures, on the other hand, are not registered to any owner, and interest is paid to whoever physically holds the debenture.

Right Answer:
Cost of capital is the rate of return that a company needs to earn on its investments to maintain its market value and attract funds. It is important because it serves as a benchmark for evaluating investment opportunities, helps in budgeting and financial planning, and influences decisions on financing and capital structure.

Right Answer:
Operating leverage measures the proportion of fixed costs in a company's cost structure. It is computed using the formula:

Operating Leverage = Contribution Margin / Operating Income

High operating leverage indicates that a company has a higher proportion of fixed costs, which can lead to greater profits with increased sales but also greater losses with decreased sales. Low operating leverage suggests a higher proportion of variable costs, leading to more stable profits regardless of sales fluctuations.

Right Answer:
The Companies Act protects the interests of debenture holders by ensuring that their rights are clearly defined, requiring companies to maintain a register of debenture holders, mandating the payment of interest and repayment of principal as per the terms of the debenture, and providing legal recourse in case of default. Additionally, it may require companies to create a trust deed for the protection of debenture holders' interests.

Right Answer:
Undercapitalization refers to a situation where a business does not have enough capital to support its operations and growth. Causes of undercapitalization include inadequate initial funding, poor financial planning, high operational costs, low sales revenue, and excessive debt.

Right Answer:
A term loan agreement is a contract between a borrower and a lender that outlines the terms of a loan, including the amount borrowed, interest rate, repayment schedule, and maturity date.

Various clauses in a term loan agreement may include:

1. **Loan Amount**: The total amount being borrowed.
2. **Interest Rate**: The cost of borrowing, expressed as a percentage.
3. **Repayment Schedule**: Details on how and when payments will be made.
4. **Maturity Date**: The date by which the loan must be fully repaid.
5. **Covenants**: Conditions the borrower must adhere to, such as financial ratios or operational restrictions.
6. **Default Clause**: Conditions under which the borrower is considered in default.
7. **Collateral**: Assets pledged by the borrower to secure the loan.
8. **Prepayment Terms**: Conditions under which the borrower can pay off the loan early.
9. **Fees and Charges**: Any

Right Answer:
The Debt Equity Ratio is a financial metric that compares a company's total debt to its total equity. It is calculated using the formula:

**Debt Equity Ratio = Total Debt / Total Equity**

**Components:**
1. **Total Debt**: This includes all short-term and long-term liabilities.
2. **Total Equity**: This represents the shareholders' equity, which includes common stock, preferred stock, retained earnings, and additional paid-in capital.

**Indication**: The ratio indicates the proportion of debt used to finance the company's assets relative to equity. A higher ratio suggests more leverage and potentially higher financial risk, while a lower ratio indicates less reliance on debt.

Right Answer:
No, stock is not considered a liquid asset.

Right Answer:
The ratio considered as a safe margin of solvency is the "solvency ratio," typically expressed as total assets divided by total liabilities. A solvency ratio above 20% is generally considered safe.