Find Interview Questions for O P Jindal Global University

Right Answer:
A bank guarantee is a promise made by a bank to cover a loss if a borrower fails to fulfill their contractual obligations. It acts as a safety net for the party receiving the guarantee. When a bank issues a guarantee, it assures the beneficiary that they will receive payment or compensation up to a specified amount if the borrower defaults. The borrower typically pays a fee to the bank for this service. If the borrower fails to meet their obligations, the beneficiary can claim the amount from the bank, which will then seek reimbursement from the borrower.

Right Answer:
The Capital Turnover Ratio is a financial metric that measures how efficiently a company uses its capital to generate sales. It is calculated by dividing total sales by the average capital employed. A higher ratio indicates better efficiency in using capital to produce revenue.

Right Answer:
The time value of money (TVM) is the concept that money available today is worth more than the same amount in the future due to its potential earning capacity. Techniques used for this include Present Value (PV), Future Value (FV), Net Present Value (NPV), and Internal Rate of Return (IRR).

Right Answer:

Profitability group ratios measure a company’s ability to generate profit relative to sales, assets, or equity. Common examples include gross profit margin, net profit margin, return on assets (ROA), and return on equity (ROE). These ratios help assess financial performance and efficiency.

Right Answer:
Preference shares are a type of equity security that gives shareholders preferential treatment in terms of dividends and asset distribution. Their features include:

1. Fixed Dividend: Preference shareholders receive a fixed dividend before any dividends are paid to common shareholders.
2. Priority in Liquidation: In the event of liquidation, preference shareholders are paid before common shareholders.
3. Non-voting Rights: Typically, preference shares do not carry voting rights in the company.
4. Cumulative or Non-Cumulative: Some preference shares are cumulative, meaning unpaid dividends accumulate, while others are not.
5. Redeemable or Irredeemable: Preference shares can be redeemable (the company can buy them back) or irredeemable (they cannot be bought back).