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Icea lion group Interview Questions and Answers
Ques:- A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?
Right Answer:
Rs. 2450
Comments
bruce May 6, 2021

I think -

1750 / 7 Years = 250
250 * 2% = 5
5 * 7 Years = 35

Ques:- What are the two most basics financial statements prepared by the companies?
Right Answer:
The two most basic financial statements prepared by companies are the Income Statement and the Balance Sheet.
Ques:- Two trains 140 m and 160 m long run at the speed of 60 km/hr and 40 km/hr respectively in opposite directions on parallel tracks. The time which they take to cross each other is?
Right Answer:
The time taken for the trains to cross each other is 12 seconds.
Ques:- Three 6 faced dice are thrown together. The probability that all the three show the same number on them is -.
Right Answer:
The probability that all three dice show the same number is ( frac{1}{6} ).
Ques:- What is Financial Statement Analysis?
Right Answer:
Financial Statement Analysis is the process of evaluating a company's financial statements to understand its financial health, performance, and trends over time. This involves examining the balance sheet, income statement, and cash flow statement to assess profitability, liquidity, solvency, and operational efficiency.
Ques:- What are the differences between Convertible and Non-Convertible Debentures?
Right Answer:
Feature Convertible Debentures Non-Convertible Debentures
Conversion Can be converted into equity shares after a specified period Cannot be converted into shares
Interest Rate Generally lower, as conversion is a benefit Usually higher, compensating for no conversion option
Investor Benefit Potential for capital appreciation through shares Fixed income without ownership stake
Risk Level Moderate, due to equity conversion option Lower, as it’s purely debt
Ques:- Explain Operating Leverage. How is it computed? What does high/low operating leverage indicate?
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.
Ques:- What is a Private Limited Company?
Right Answer:
A Private Limited Company is a type of business entity that is privately owned, meaning its shares are not available to the general public. It limits the number of shareholders and restricts the transfer of shares, providing limited liability to its owners.
Ques:- What is float in receivables management?
Right Answer:
Float in receivables management refers to the time it takes for a payment to be processed and reflected in the company's accounts after it has been received. It includes the period from when a customer sends a payment until the funds are available for use by the company.
Ques:- Define Price Earnings (P/E) Ratio?
Right Answer:
The Price Earnings (P/E) Ratio is a financial metric that compares a company's current share price to its earnings per share (EPS). It is calculated by dividing the market value per share by the earnings per share.
Ques:- A steel company in was experiencing large amounts of inventory and customers which complained about long wait times for orders. Company used to have a monopoly however deregulation had allowed for competition starting 10 years ago and the firm now had 40% market share. Firm had four plants, two made mostly flat steel products and two made pipe like steel products. For all plants half the products were specialized and half were standard. What should be done to solve the problems?
Right Answer:
The company should implement a demand forecasting system to better align production with customer needs, streamline operations to reduce lead times, improve inventory management to minimize excess stock, and enhance customer service to address complaints. Additionally, consider investing in technology to increase efficiency and exploring partnerships or collaborations to improve market competitiveness.
Ques:- A cable TV company from Canada, World View, had recently entered the US market in the northeast to expand its market share. World View saw this move as an opportunity to capture a large part of the US market (4MM consumers) in a market with very little competition. However, in the last couple of years, much to the surprise of management, World View has been unable to make a profit. You have been hired to figure out why and advise them on their next move?
Right Answer:
World View should analyze their pricing strategy, customer acquisition costs, and service offerings. They may be facing high operational costs, ineffective marketing, or not meeting consumer expectations. Conducting market research to understand customer needs and preferences, optimizing their pricing model, and improving service quality could help them become profitable. Additionally, exploring partnerships or bundling services might attract more customers.
Ques:- We are analyzing a manufactures high-end athletic footwear. The company’s sales are up but profits are flat. What do we need to look at?
Right Answer:
We need to look at the cost of production, pricing strategy, marketing expenses, inventory management, and potential discounts or promotions affecting profit margins.
Ques:- A French soft drink company, Le Seine, is looking to diversify its holdings by investing in a new fast food chain in the US. You are hired to determine whether they should pursue this path and, if so, how they should go about execution.
Right Answer:
Le Seine should conduct market research to assess demand for a new fast food chain in the US, analyze competitors, and identify target demographics. If the market shows potential, they should develop a unique value proposition, create a solid business plan, and consider partnerships with local franchises or experienced operators. Finally, they should focus on marketing strategies that resonate with American consumers while maintaining their French identity.
Ques:- You have been retained joint by a disposable diaper company and a federal commission on waste management. Estimate the volume percentage of disposable diapers in the total U.S. household garbage.
Right Answer:
Disposable diapers make up approximately 3-4% of total U.S. household garbage by volume.
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