FINANCIAL AND MANAGEMENT ACCOUNTING

MBA (1ST SEM)

1. What is financial management and define the key functions of a financial manager. Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Functions of a Financial Manager The main objective of the Finance Manager is to manage funds in such a way so as to ensure their optimum utilization and their procurement in a manner that the risk, cost and control considerations are properly balanced in a given situation. To achieve the objective the Finance Manager performs the following functions in the following areas:Forecasting and Planning The need to estimate/forecast the requirement of funds for both the short term and the long term purpose. Forecasting the requirements of funds involves the use of budgetary control and long-range planning. Financing Decision Helps to decide what type of Capital structure the company needs to have re: whether these funds would be raised re: from loans/borrowings or from internal source. To raise sufficient long term funds to finance fixed assets and other long term investments and to provide for the needs of working capital Investment Decision In projects using the various capital budgeting tools like Payback method, accounting rate of return, internal rate of return, net present value. Assets management policies are to be laid down regarding the various items of current assets like accounts receivable by coordinating with the sales personnel, inventory with production Dividend Decision Taking into consideration, earnings trend, share market price trend, fund requirement for future growth, cash flow situation and others. Financial negotiation Plays a very important role in carrying out negotiations with the various financial institutions, banks and public depositors for raising funds on favourable terms. 1. Write a note on capital budgeting techniques and which one is appropriate? Many formal methods are used in capital budgeting, including the techniques such as Accounting rate of return Net present value Profitability index Internal rate of return Modified internal rate of return Equivalent annuity These methods use the incremental cash flows from each potential investment, or project. Techniques based on accounting earnings and accounting rules are sometimes used - though economists consider this to be improper - such as the accounting rate of return, and "return on investment." Simplified and hybrid methods are used as well, such as payback period and discounted payback period. Net present value Each potential project's value should be estimated using a discounted cash flow (DCF) valuation, to find its net present value (NPV). This valuation requires estimating the size and timing of all the incremental cash flows
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from the project. These future cash flows are then discounted to determine their present value. These present values are then summed, to get the NPV. See also Time value of money. The NPV decision rule is to accept all positive NPV projects in an unconstrained environment, or if projects are mutually exclusive, accept the one with the highest NPV(GE). Internal rate of return The internal rate of return (IRR) is defined as the discount rate that gives a net present value (NPV) of zero. It is a commonly used measure of investment efficiency. The IRR method will result in the same decision as the NPV method for (non-mutually exclusive) projects in an unconstrained environment, in the usual cases where a negative cash flow occurs at the start of the project, followed by all positive cash flows. In most realistic cases, all independent projects that have an IRR higher than the hurdle rate should be accepted. Equivalent annuity method The equivalent annuity method expresses the NPV as an annualized cash flow by dividing it by the present value of the annuity factor. It is often used when assessing only the costs of specific projects that have the same cash inflows. In this form it is known as the equivalent annual cost (EAC) method and is the cost per year of owning and operating an asset over its entire lifespan. It is often used when comparing investment projects of unequal lifespans. For example if project A has an expected lifetime of 7 years, and project B has an expected lifetime of 11 years it would be improper to simply compare the net present values (NPVs) of the two projects, unless the projects could not be repeated. Real options Real options analysis has become important since the 1970s as option pricing models have gotten more sophisticated. The discounted cash flow methods essentially value projects as if they were risky bonds, with the promised cash flows known. But managers will have many choices of how to increase future cash inflows, or to decrease future cash outflows. In other words, managers get to manage the projects - not simply accept or reject them. Real options analysis try to value the choices - the option value - that the managers will have in the future and adds these values to the NPV. Ranked Projects The real value of capital budgeting is to rank projects. Most organizations have many projects that could potentially be financially rewarding. Once it has been determined that a particular project has exceeded its hurdle, then it should be ranked against peer projects (e.g. - highest Profitability index to lowest Profitability index). The highest ranking projects should be implemented until the budgeted capital has been expended. Funding Sources When a corporation determines its capital budget, it must acquire said funds. Three methods are generally available to publicly traded corporations: corporate bonds, preferred stock, and common stock. The ideal mix of those funding sources is determined by the financial managers of the firm and is related to the amount of financial risk that corporation is willing to undertake. Corporate bonds entail the lowest financial risk and therefore generally have the lowest interest rate. 1. What are the major characteristics of a sound dividend policy? What do you understand by Gordon model of dividend? 1.Regarding maximum of enterprise value as the final goal Dividend policy based on value management can realize the final goal of maximizing enterprise value. While making the distribution policy of the dividend, emphasizing on the goal of maximizing the enterprise value, we will overcome the defect in the policy of maximizing the shareholder's wealth with the profit. It pursues the balanced and effective cash flow in a long time period and promotes enterprise's value. 2.Focus on the enterprises long-term sustainable development Dividend policy based on value management focus on enterprise's long-term sustainable development, but does not pay attention to enterprise's short-term state excessively. 3.Coordinate with company's management decision
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Dividend policy based on value management can coordinate with every sub-decision and help to realize the overall management decision of enterprise. The function of the dividend policy fundamentally speaking, is to serve the overall management decision and offer the essential condition for decision making, and whats more, it can coordinate with other investment and financing decision to accelerate the decision making. 4.Optimize the capital structure The dividend policy based on value management can realize the optimization of capital structure. The way granting dividend directly influences enterprises capital structure, and a good dividend policy contributes to improving the structure of the capital and makes it reasonable. 4.The influence of the value management to the dividend policy In practice, we can introduce the value management to the process of the policy making of dividend distribution to make it scientific, reasonable and perspective. According to the traditional dividend distribution policy, the advantages of the one based on value management is that it take the rule of maximizing and increasing the enterprise value. Gordon model of dividend The Gordon growth model is a variant of the discounted cash flow model, a method for valuing astock or business. Often used to provide difficult-to-resolve valuation issues for litigation, tax planning, and business transactions that don't have an explicit market value. It is named after Myron J. Gordon, who originally published it in 1959. It assumes that the company issues a dividend that has a current value of D that grows at a constant rate g. It also assumes that the required rate of return for the stock remains constant at k>g which is equal to the cost of equity for that company. It involves summing the infinite series which gives the value of price current P..

. Summing the infinite series we get, In practice this P is then adjusted by various factors e.g. the size of the company. k denotes expected return = yield + expected growth. It is common to use the next value of D given by : D1 = D0(1 + g), thus the Gordon's model can be stated as] . 2. What is working capital management and what are the determinants of working capital. Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital, that is commonly used in valuation
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techniques such as DCFs (Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit. Net Working Capital = Current Assets Current Liabilities Net Operating Working Capital = Current Assets Non Interest-bearing Current Liabilities Equity Working Capital = Current Assets Current Liabilities Long-term Debt A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash. DETERMINANTS OF WORKING CAPITAL There are lots of factor of determinants of working capital 1) Nature of business - working capital requirement of a firm basically influenced by the nature of its business trading and financial forms have a very small investment in fixed assets, but require a large sum of money to be invested in working capital. Retails stores, for example must carry large stock of a verity of good to satisfy varied and continuous demand of their customer. 2) Market and demand condition - the working company related to its sales . it is difficult to precisely determine the relationship between the volume of sales and working capital need. Current assets will have to be employed before growth takes place. Then necessary to make planning of working capital for a growing firm on a continuous basis 3) Technology and manufacturing policy - the manufacturing cycle comprise of the purchase and use of raw material and the production of finished goods. Longer the manufacture cycle, larger will be the firm's working capital requirement. For example, the manufacturing cycle in the case of a boiler, depending on its size, may range between six to twenty four month. On the other hand the manufacturing cycle of product such as detergent powder, soap, ice creams etc. may be a few hour extend product take a large time 4) Credit policyof the firm affect the working capital by influencing the level of debtor. The credit term to be guaranteed to customer may depend upon the norm of the industry to which the firm belong. But a firm has the flexibility of shaping its credit policy within the constraint of industry norms and practice. The firm should use discretion in granting credit term to us customer 5) Operating efficiency - the operating efficiency of the firm relates to the optimum utilization of all its resource at minimum costs. The efficiency in controlling operating cost and utilizing fixed and current assets leads to operating efficiency. The use of working capital is improved and pace of cash conversion cycle is accelerated with operating efficiency. Better utilization improves profitability and helps the releasing on working capital 6) Conditions of supply: the inventory of raw material, spares and stores depends on the conditions of supply. if the supply is prompt and adequate, the firm can manage with small inventory. however, if the supply is unpredictable and scant then the firm, to ensure continuity of production, a similar policy may have to be followed when the raw material is available only seasonally and production operations are carried out round the year 3. List down all the major functions of a finance manager in detail. The main objective of the Finance Manager is to manage funds in such a way so as to ensure their optimum utilization and their procurement in a manner that the risk, cost and control considerations are properly balanced in a given situation. To achieve the objective the Finance Manager performs the following functions in the following areas:Forecasting and Planning The need to estimate/forecast the requirement of funds for both the short term(working capital requirements) and the long term purpose(capital investments). Forecasting the requirements of funds involves the use of budgetary control and long-range planning Financing Decision
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Helps to decide what type of Capital structure the company needs to have re: whether these funds would be raised re: from loans/borrowings or from internal source(share capital) To raise sufficient long term funds to finance fixed assets and other long term investments and to provide for the needs of working capital Investment Decision In projects using the various capital budgeting tools like Payback method, accounting rate of return, internal rate of return, net present value. Assets management policies are to be laid down regarding the various items of current assets like accounts receivable by coordinating with the sales personnel, inventory with production Dividend Decision Taking into consideration, earnings trend, share market price trend, fund requirement for future growth, cash flow situation and others. Financial negotiation Plays a very important role in carrying out negotiations with the various financial institutions, banks and public depositors for raising funds on favourable terms Cash Management The finance manager needs to ensure the supply of adequate, timely and cheap fund to the various parts of the organization That there is no excessive cash idling around Evaluating financial performance To need to constantly review the financial performance of the various units of organization generally in terms of ROI(return on investment. Such review assists management in seeing ow the funds have been utilized in the various divisions and what can be done to improve it. Dealing with relevant parties in the Financial Markets Where the company is a listed entity, the need to interact with the Stock Exchange To deal with money markets and capital markets for financing or investment of idling funds To foster relationships with bankers, investors, underwriters of equity and bond issuances and other government regulatory bodies.

MANAGERIAL ECONOMICS
1. What do you mean by Managerial economics and what is its importance in managerial decision making? Managerial economics is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, Lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research and programming.

2.

Explain the law of variable proportion with the help of diagram? The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline. This means that upto the use of a certain amount of variable factor, marginal product of the factor may increase and after a certain stage it starts diminishing. When the variable factor becomes relatively abundant, the marginal product may become negative.

Assumptions: The law of variable proportions holds good under the following conditions: Constant State of Technology: First, the state of technology is assumed to be given and unchanged. If there is improvement in the technology, then the marginal product may rise instead of diminishing.
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Fixed Amount of Other Factors: Secondly, there must be some inputs whose quantity is kept fixed. It is only in this way that we can alter the factor proportions and know its effects on output. The law does not apply if all factors are proportionately varied. Possibility of Varying the Factor proportions: Thirdly, the law is based upon the possibility of varying the proportions in which the various factors can be combined to produce a product. The law does not apply if the factors must be used in fixed proportions to yield a product. Illustration of the Law: The law of variable proportion is illustrated in the following table and figure. Suppose there is a given amount of land in which more and more labour (variable factor) is used to produce wheat.
Units of Labour 1 2 3 4 5 6 7 8 Total Product 2 6 12 16 18 18 14 8 Marginal Product 2 4 6 4 2 0 -4 -6 Average Product 2 3 4 4 3.6 3 2 1

It can be seen from the table that upto the use of 3 units of labour, total product increases at an increasing rate and beyond the third unit total product increases at a diminishing rate. This fact is shown by the marginal product which is the addition made to Total Product as a result of increasing the variable factor i.e. labour. It can be seen from the table that the marginal product of labour initially rises and beyond the use of three units of labour, it starts diminishing. The use of six units of labour does not add anything to the total production of wheat. Hence, the marginal product of labour has fallen to zero. Beyond the use of six units of labour, total product diminishes and therefore marginal product of labour becomes negative. Regarding the average product of labour, it rises up to the use of third unit of labour and beyond that it is falling throughout. Three Stages of the Law of Variable Proportions: These stages are illustrated in the following figure where labour is measured on the X-axis and output on the Y-axis. Stage 1. Stage of Increasing Returns: In this stage, total product increases at an increasing rate up to a point. This is because the efficiency of the fixed factors increases as additional units of the variable factors are added to it. In the figure, from the origin to the point F, slope of the total product curve TP is increasing i.e. the curve TP is concave upwards upto the point F, which means that the marginal product MP of labour rises. The point F where the total product stops increasing at an increasing rate and starts increasing at a diminishing rate is called the point of inflection. Corresponding vertically to this point of inflection marginal product of labour is maximum, after which it diminishes. This stage is called the stage of increasing returns because the average product of the variable factor increases throughout this stage. This stage ends at the point where the average product curve reaches its highest point.

5.

Explain the following pricing techniques: A) Peak load pricing Peak-load pricing is a pricing technique applied to public goods, which is a particular case of a Lindahl equilibrium. Instead of different demands for the same public good, we consider the demands for a public good in different periods of the day, month or year, then finding the optimal capacity (quantity supplied) and, afterwards, the optimal peak-load prices. This has particular applications in public goods such as public urban transportation, where day demand (peak period) is usually much higher than night demand (off-peak period). By subtracting the marginal costs of operation from the original demands we find the marginal benefits of capacity, which must then be vertically aggregated and equated to the marginal cost of increasing capacity. For example, the electricity consumption during peak usage time is more expensive than during off peak time. It is charged more to encourage the customers with flexibility of usage to shift the usage to off peak time where there is excess sparable capacity available. Telephone companies use a similar schedule. With the optimal capacity found, the optimal peak-load prices are found by adding the marginal costs of operation to the marginal benefit generated, in each period, by the optimal capacity. It may happen, however, that the optimal capacity is not fully used during the off-peak period. In that case, the capacity expansion will be totally supported by the peak demanders. B) Transfer pricing Transfer pricing refers to the setting, analysis, documentation, and adjustment of charges made between related parties for goods, services, or use of property (including intangible property). Transfer prices among components of an enterprise may be used to reflect allocation of resources among such components, or for other purposes. OECD Transfer Pricing Guidelines[dead link] state, Transfer prices are significant for both taxpayers and tax administrations because they determine in large part the income and expenses, and therefore taxable profits, of associated enterprises in different tax jurisdictions. Many governments have adopted transfer pricing rules that apply in determining or adjusting income taxes of domestic and multinational taxpayers. The OECD has adopted guidelines followed, in whole or in part, by many of its member countries in adopting rules. United States and Canadian rules are similar
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in many respects to OECD guidelines, with certain points of material difference. A few countries follow rules that are materially different overall. The rules of nearly all countries permit related parties to set prices in any manner, but permit the tax authorities to adjust those prices where the prices charged are outside an arm's length range. Rules are generally provided for determining what constitutes such arm's length prices, and how any analysis should proceed. Prices actually charged are compared to prices or measures of profitability for unrelated transactions and parties. The rules generally require that market level, functions, risks, and terms of sale of unrelated party transactions or activities be reasonably comparable to such items with respect to the related party transactions or profitability being tested. 1. What do you mean by the term Product differentiation? How the Price is determined under discriminating monopoly?
In economics and marketing, product differentiation is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own product offerings. The concept was proposed by Edward Chamberlin in his 1933 Theory of Monopolistic Competition. In economics, successful product differentiation leads to monopolistic competition and is inconsistent with the conditions for perfect competition, which include the requirement that the products of competing firms should be perfect substitutes. There are three types of product differentiation: 1. Simple: based on a variety of characteristics 2. Horizontal : based on a single characteristic but consumers are not clear on quality 3. Vertical : based on a single characteristic and consumers are clear on its quality. THE MONOPOLISTS DEMAND CURVE- CONSTRAINTS ON MONOPOLY Be careful of saying that "monopolies can charge any price they like" - this is wrong. It is true that a firm with monopoly has price-setting power and will look to earn high levels of profit. However the firm is constrained by the position of its demand curve. Ultimately a monopoly cannot charge a price that the consumers in the market will not bear. A pure monopolist is the sole supplier in an industry and, as a result, the monopolist can take the market demand curve as its own demand curve. A monopolist therefore faces a downward sloping AR curve with a MR curve with twice the gradient of AR. The firm is a price maker and has some power over the setting of price or output. It cannot, however, charge a price that the consumers in the market will not bear. In this sense, the position and the elasticity of the demand curve acts as a constraint on the pricing behaviour of the monopolist. Assuming that the firm aims to maximise profits (where MR=MC) we establish a short run equilibrium. Assuming that the firm aims to maximise profits (where MR=MC) we establish a short run equilibrium as shown in the diagram below.

8.

What do you mean by elasticity of demand? Explain the methods of measuring elasticity of demand? Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price (holding constant all the other determinants of demand, such as income). It was devised by Alfred Marshall. Price elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to ambiguity. Only goods which do not conform to the law of demand, such as Veblen and Giffen goods, have a positive PED. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is, changes in price have a relatively small effect on the quantity of the good demanded. The demand for a good is said to be elastic (or relatively elastic) when its PED is greater than one (in absolute value): that is, changes in price have a relatively large effect on the quantity of a good demanded. There are three methods of measuring price elasticity of demand: (1) Total Expenditure Method. (2) Geometrical Method or Point Elasticity Method. (3) Arc Method.

(1) Total Expenditure Method/Total Revenue Method: Definition, Schedule and Diagram: The price elasticity can be measured by noting the changes in total expenditure brought about by changes in price and quantity demanded. (i) When with a percentage fall in price, the quantity demanded increases so much that it results in the increase in total expenditure, the demand is said to be elastic (Ed > 1). For Example:
Price Per Unit ($) 20 10 Quantity Demanded 10 Pens 30 Pens Total Expenditure ($) 200.0 300.0

Since OEFG is greater than OABC, it implies that change in quantity demanded is proportionately more than the change in price. Hence the demand is elastic (more than one) Ed > 1. (ii) When a percentage fall in price raises the quantity demanded so much as to leave the total expenditure unchanged, the elasticity of demand is said to be unitary (Ed = 1).
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For Example:
Price Per Pen ($) 10 5 Quantity Demanded 30 60 Total Expenditure ($) 300 300

The figure (6.7) shows that at price of $10 per pen, the total expenditure is OABC ($300). At a lower price of $5, the total expenditure is OEFG ($300). Since OABC = OEFG, it implies that the change in quantity demanded is proportionately equal to change in price. So the price elasticity of demand is equal to one, i.e., Ed = 1. (iii) When a percentage fall in price raises the quantity demanded of a good so as to cause the total expenditure to decrease, the demand is said to be inelastic or less than one, i.e., Ed < 1. For Example:
Price Per Pen ($) 5 2 Quantity Demanded 60 100 Total Expenditure ($) 300 200

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ORGANIZATIONAL BEHAVIOUR & MANAGEMENT PROCESSES

1. Explain group dynamics, types of groups and group cohesiveness.
Group dynamics is the study of groups, and also a general term for group processes. Relevant to the fields of psychology, sociology, and communication studies, a group is two or more individuals who are connected to each other by social relationships.[1] Because they interact and influence each other, groups develop a number of dynamic processes that separate them from a random collection of individuals. These processes include norms, roles, relations, development, need to belong, social influence, and effects on behavior. In organizational development (OD), or group dynamics, the phrase "group process" refers to the understanding of the behavior of people in groups, such as task groups, that are trying to solve a problem or make a decision. An individual with expertise in group process, such as a trained facilitator, can assist a group in accomplishing its objective by diagnosing how well the group is functioning as a problem-solving or decision-making entity and intervening to alter the group's operating behavior. Because people gather in groups for reasons other than task accomplishment, group process occurs in other types of groups such as personal growth groups (e.g. encounter groups, study groups, prayer groups). In such cases, an individual with expertise in group process can be helpful in the role of facilitator. Groups Groups are a fundamental part of social life. As we will see they can be very small - just two people - or very large. They can be highly rewarding to their members and to society as a whole, but there are also significant problems and dangers with them. All this makes them an essential focus for research, exploration and action. In this piece I want to examine 12

some of the key definitions of groups that have appeared, review central ways of categorizing groups, explore important dimensions of groups, and look briefly at the group in time. Group cohesiveness The group develops maturity and becomes cohesive or interconnected with the passage of time. Cohesiveness in a group is achieved when the group appears to be very attractive to its group members. In such type of cohesiveness, individuals value their group membership and have a very strong enthusiasm and motivation to remain members of the group. Group cohesiveness can be described as the attractiveness of a group to its members. A highly cohesive group appeals a lot to its members. The cohesiveness of a group plays important role in the performance and effectiveness of the group. There are a large number of factors that influence cohesiveness level of a group. Those important factors can be broadly categorised into five types. They are : size of the group, homogeneous character of group members, success of the group, competition with other groups, and the exclusiveness of the group.

2. Explain the term organization change.

Perhaps the only thing constant within organisations is now change. Traditionally, analysis of organisational change has been built around the organism metaphor in which organisations are analyzed as if they were living organisms operating in an environment to which they need to adapt to ensure survival. For an organisation, its environment may be broken down into: * Societal factors * Environment factors and * Internal factors. This is an era of globalization and the organizations need to cope up with the dynamic and inevitable changes which take place very often. Because of this changes the competition among firms is becoming intense and every organization should be flexible enough to implement the changes whenever required for its survival. There are two basic forms of change in organizations. Planned change is change resulting from a deliberate decision to alter the organization. Companies that wish to move from a traditional hierarchical structure to one that facilitates selfmanaged teams must use a proactive, carefully orchestrated approach. Not all change is planned, however. Unplanned change is imposed on the organization and is often unforeseen. Changes in government regulations and changes in the economy, for example, are often unplanned. Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part of the organizations. Managers must be prepared to handle both planned and unplanned forms of change in organizations. Forces for Change Forces for change can come from many sources. Some of these are external, arising from outside the company, whereas others are internal, arising from sources within the organization. External Forces The four major external forces for change are globalization, workforce diversity, technological change, and managing ethical behavior are challenges that precipitate change in organizations. Internal Forces Pressures for change that originate inside the organization are generally recognizable in the form of signals indicating that something needs to be altered. Declining effectiveness is a pressure to change. A company that experiences its third quarterly loss within a fiscal year is undoubtedly motivated to do something about it. Some companies react by instituting layoffs and massive cost cutting programs, whereas others look at the bigger picture, view the loss as symptomatic of an underlying problem, and seek the cause of the problem. A crisis also may stimulate change in an organization. Strikes or walkouts may lead management to change the wage structure. The resignation of a key decision-maker is one crisis that causes the company to rethink the composition of its management team and its role in the organization. A much-publicized crisis that led to change with Exxon was the oil spill accident with Exxons Valdez oil tanker. The accident brought about many changes in Exxons environmental policies. Changes in employee expectations also can trigger change in organizations. A company that hires a group of young newcomers may be met with a set of expectations very different from those expressed by older workers. The work force is more educated than ever before. Although this has its advantages, workers with more education demand more of employers. Todays workforce is also concerned with career and family balance issues, such as dependent care. The many sources of workforce diversity hold potential for a host of differing expectations among employees.

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3. Why is team working important in an organization? Discuss the difference between a team and a group.
Teamwork is defined in Webster's New World Dictionary as "a joint action by a group of people, in which each person subordinates his or her individual interests and opinions to the unity and efficiency of the group." This does not mean that the individual is no longer important; however, it does mean that effective and efficient teamwork goes beyond individual accomplishments. The most effective teamwork is produced when all the individuals involved harmonize their contributions and work towards a common goal. Teamwork has become an important part of the working culture and many businesses now look at teamwork skills when evaluating a person for employment. Most companies realize that teamwork is important because either the product is sufficiently complex that it requires a team with multiple skills to produce, and/or a better product will result when a team approach is taken. Therefore, it is important that students learn to function in a team environment so that they will have teamwork skill when they enter the workforce. Also, research tells us that students learn best from tasks that involve doing tasks and involve social interactions. Difference Between Team & Group

Groups Members work independently and they often are not working towards the same goal. Members focus mostly on themselves because they are not involved in the planning of their group's objectives and goals. Members are given their tasks or told what their duty/job is, and suggestions are rarely welcomed. Members are very cautious about what they say and are afraid to ask questions. They may not fully understand what is taking place in their group. Members do not trust each other's motives because the do not fully understand the role each member plays in their group. Members may have a lot to contribute but are held back because of a closed relationship with each member. Members are bothered by differing opinions or disagreements because they consider it a threat. There is not group support to help resolve problems. Members may or may not participate in group decision-making, and conformity is valued more than positive results.

Teams Members work interdependently and work towards both personal and team goals, and they understand these goals are accomplished best by mutual support. Members feel a sense of ownership towards their role in the group because they committed themselves to goals they helped create. Members collaborate together and use their talent and experience to contribute to the success of the team's objectives. Members base their success on trust and encourage all members to express their opinions, varying views, and questions. Members make a conscious effort to be honest, respectful, and listen to every person's point of view.

Members are encouraged to offer their skills and knowledge, and in turn each member is able contribute to the group's success. Members see conflict as a part of human nature and they react to it by treating it as an opportunity to hear about new ideas and opinions. Everybody wants to resolve problems constructively. Members participate equally in decision-making, but each member understands that the leader might need to make the final decision if the team can not come to a consensus agreement.

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1. What is 360 degree performance appraisal and how is it different from other methods of performance appraisal?
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal. Another method of gathering feedback for you performance appraisals would be to conduct a 360 appraisal. This process requires you to put some questions together to form a survey to submit to people that work directly with your employee. Typically the survey is sent to 10-12 people that the employee works with, this would include peers, subordinates, and possibly management. This method of employee evaluation takes the pressure off of the manager and gives the employee a 360 view of their performance and how they are perceived by others. Questions are put together based on job responsiblities and how they interact with the individuals on the survey. These are supposed to be anonymous for the person providing the feedback. This tool has been valuable in evaluating employees performance. It is a great tool to use when you want to gather feedback from others on an employees work performance. Depending on the employees role the 360 survey questions should include the core competencies of their role in the organization. Areas that might included could be: Teambuilding and Relationship Building, Task Management and Execution or Communication Skills. All of these topics could be included. The bottom line is to compile a list of survey questions that you would like to know the answer to from your employees customers, peers and direct reports. Then go up the chain to yourself and your managers to see how they are perceived above you. This tool is valuable in measuring the performance and perception of the employee far beyond the manager / employee relationship. It is very useful in the employees growth and reaching their potential. This 360 degree appraisal can be done via email, a simple web survey (if you have an IT staff to put it together for you) or your HR group can facilitate and gather the feedback and then present it to you in an anonymous fashion, so the feedback providers can feel at ease their names wont be used. I believe this method of performance appraisal should be used as a tool vs. the only form of appraisal, however I prefer this method over the one-sided manager/employee performance appraisal, because it truly gives the employee more information of what people think, than just your (the managers opinion).

9.Explain major determinants of personality.

ABOUT PERSONALITY DETERMINANTS: Personality does not evolved by a single factor. It is a mixture of a lot of things. Some of those factors are psychological, some are physical, some are biological and some are even hereditary. So, I have compiled some of the basic factors that hold great importance when we talk about PERSONALITY DETERMINANTS: 1. Brain Brain is one of the most important factors of personality determinant. It is generally believed that the father and the child adopt almost the same type of brain stimulation and the later differences are the result of the environment in which the child has been grown up. Electrical Stimulation of the Brain (ESB) and Split Brain Psychology (SBP) and the outcomes of genetic transmissions and are the tools that are used by the management of any organization to mould and amend the employees behavior to a more positive and proper one. 2. Physical Factors One of the most important factors in determining personality is the Physical Characteristics of an individual. It is believed that this factor plays a vital role in determining ones behavior in any organization. Physical features may involve the height of a person (short or tall), his color (white or black), his health status (fat or skinny) and his beauty (handsome or ugly). 15

These factors are involved when interacting with any other person and thus contribute in the personality development in many ways. 3. Social Factors Social factors also play a vital role in determining ones personality. The things that revolve and evolve around us on a regular basis determine our personality. The society that we live in, the cultural environment that we face daily, the community we get interacted to, all are included in this factor. Relationships, co-ordination, co-operation, interaction, environment in the family, organizations, workplaces, communities, societies all contribute in way or another as personality determinants. 4. Cultural and Religious Factors: The culture in which one lives in, that may involve traditional practices, norms, customs, procedures, rules and regulations, precedents and values, all are important determinants of personality. Moreover, the creed, religion and believes are also very important factors of personality determinants. 5. Heredity Factor: Perhaps, the most surprising and astonishing factor (at least in my eyes) is the Heredity Factor. When I first read about that, I was quite stunned and really gave a bow to nature. The example which I read was really interesting, and I am writing the same extract that I read.

COMPUTER APPLICATION IN MANAGEMENT

1.

Explain the types of operating systems

Batch Processing Operating System In a batch processing operating system interaction between the user and processor is limited or there is no interaction at all during the execution of work. Data and programs that need to be processed are bundled and collected as a batch and executed together. Batch processing operating systems are ideal in situations where: - There are large amounts of data to be processed. - Similar data needs to be processed. - Similar processing is involved when executing the data. The system is capable of identifying times when the processor is idle at which time batches maybe processed. Processing is all performed automatically without any user intervention. Real-time Operating System A real-time operating system processes inputs simultaneously, fast enough to affect the next input or process. Real-time systems are usually used to control complex systems that require a lot of processing like machinery and industrial systems. Single User Operating System A single user OS as the name suggests is designed for one user to effectively use a computer at a time. Multi-Tasking Operating System In this type of OS several applications maybe simultaneously loaded and used in the memory. While the processor handles only one application at a particular time it is capable of switching between the applications effectively to apparently simultaneously execute each application. This type of operating system is seen everywhere today and is the most common type of OS, the Windows operating system would be an example. Multi-User Operating System
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This type of OS allows multiple users to simultaneously use the system, while here as well, the processor splits its resources and handles one user at a time, the speed and efficiency at which it does this makes it apparent that users are simultaneously using the system, some network systems utilize this kind of operating system. Distributed Operating System In a distributed system, software and data maybe distributed around the system, programs and files maybe stored on different storage devices which are located in different geographical locations and maybe accessed from different computer terminals. While we are mostly accustomed to seeing multi-tasking and multi-user operating systems, the other operating systems are usually used in companies and firms to power special systems. 1.

Discuss in detail the Input devices of computer

Keyboards A 'keyboard' is a human interface device which is represented as a layout of buttons. Each button, or key, can be used to either input a linguistic character to a computer, or to call upon a particular function of the computer. Traditional keyboards use spring-based buttons, though newer variations employ virtual keys, or even projected keyboards. Examples of types of keyboards include:

Pointing devices A pointing device is any human interface device that allows a user to input spatial data to a computer. In the case of mice and touch screens, this is usually achieved by detecting movement across a physical surface. Analog devices, such as 3D mice, joysticks, or pointing sticks, function by reporting their angle of deflection. Movements of the pointing device are echoed on the screen by movements of the cursor, creating a simple, intuitive way to navigate a computer's GUI. High-degree of freedom input devices Some devices allow many continuous degrees of freedom as input. These can be used as pointing devices, but are generally used in ways that don't involve pointing to a location in space, such as the control of a camera angle while in 3D applications. These kinds of devices are typically used in CAVEs, where input that registers 6DOF is required. Composite devices Input devices, such as buttons and joysticks, can be combined on a single physical device that could be thought of as a composite device. Many gaming devices have controllers like this. Technically mice are composite devices, as they both track movement and provide buttons for clicking, but composite devices are generally considered to have more than two different forms of input.

Computer keyboard Keyer Chorded keyboard LPFK A computer mouse

Game controller Gamepad (or joypad) Paddle (game controller) Wii Remote

Imaging and Video input devices Video input devices are used to digitize images or video from the outside world into the computer. The information can be stored in a multitude of formats depending on the user's requirement.

digital camera Webcam Image scanner

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Audio input devices In the fashion of video devices, audio devices are used to either capture or create sound. In some cases, an audio output device can be used as an input device, in order to capture produced sound. Microphone MIDI keyboard or other digital musical instrument

Fingerprint scanner Barcode reader 3D scanner Laser rangefinder Medical Imaging Computed tomography Magnetic resonance imaging Positron emission tomography Medical ultrasonography

3.

Write short note on:

a) Browsers

A web browser is a software application for retrieving, presenting, and traversing information resources on the World Wide Web. An information resource is identified by a Uniform Resource Identifier (URI) and may be a web page, image, video, or other piece of content. Hyperlinks present in resources enable users easily to navigate their browsers to related resources. A web browser can also be defined as an application software or program designed to enable users to access, retrieve and view documents and other resources on the Internet. Although browsers are primarily intended to access the World Wide Web, they can also be used to access information provided by web servers in private networks or files in file systems. The major web browsers are Internet Explorer, Firefox, Google Chrome, Safari, and Opera. b) Security issues on Internet Lets assume that you have a website of your own. Your website allows transactions online. You type in your website's domain to see those lovely articles, beautiful pictures that you meticulously engineered to put on your site. You see unfamiliar things. Things that you have never intended to publish have come up on your monitor. Something has gone haywire. Did you type the domain name wrong? You check with the network administrator and to his dismay, he too looks at the page with the same amount of astonishment as you feel. Where did things go wrong? Did you think of hackers, viruses and lurking cyber goons? Enough to give you an aversion. How do you prevent this? An efficient firewall is the armor your network needs to combat most of these threats. Does your website offer online transactions too? You may have been wondering about the safety and security aspects involved in online transactions. Just consider a scenario where you stay at a hotel and pay your bill through credit card - there is nothing to stop the clerk to make a copy of your credit card information. For any kind of transaction, all that is important is your credit card number and the expiry date. Keeping this in mind would you stick with the myth of avoiding ecommerce? You will be looking for greater security for that golden number that you hold. 5.

Write short note on:

a) CUI vs GUI operating system

Difference between CUI and GUI CUI and GUI are user interface used in connection with computers
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CUI is the precursor of GUI and stands for character user interface where user has to type on keyboard

to proceed. On the other hand GUI stands for Graphical User Interface which makes it possible to use a mouse instead of keyboard GUI is much easier to navigate than CUI There is only text in case of CUI whereas there are graphics and other visual clues in case of GUI Most modern computers use GUI and not CUI DOS is an example of CUI whereas Windows is an example of GUI. b) Features of WIN98 Windows 98 was drastically different than Windows 3.1, or the first Window designed for the internet, Windows 3.11 for Workgroups. It was built on the Windows 95 platform and greatly improved it. The main advantages Windows 98 had over previous operating systems was that it: 1. 2. 3. 4. 5. 6. 7. 8. 9. 6. Browsed the internet better than Windows 95. Was easier to use. Was more reliable than previous systems. Was more efficient Contained Power Management to allow desktops to hibernate. Supported DVD readers and digital audio sound for movie and better stereo. Introduced the Internet Connection Wizard for initial web connection setups. Allowed the creation of your own web pages. Was the first Windows operating system to use Service Packs instead of current releases.

Elaborate the characteristics and functions of operating system.

As we have stated, operating systems are normally unique to their manufacturers and the hardware in which they are run.Generally, when a new computer system is installed, operational software suitable to that hardware is purchased.Users want reliable operational software that can effectively support their processing activities. Though operational software varies between manufacturers,it has similar characteristics.Modern hardware, because of its sophistication, requires that operating systems meet certain specific standards.For example, considering the present state of the field, an operating system must support some form of online processing.Functions normally associated with operational software are: 1. Job management 2. Resource management 3. Control of I/O operations 4. Errorrecovery 5. Memory management JOB MANAGEMENT A very important responsibility of any operational software is the scheduling of jobs to be handled by a computer system.This is one of the main tasks of the job management function.The operating system sets up the order in which programs are processed, and defines the sequence in which particular jobs are executed.The term job queue is often used to describe the series of jobs awaiting execution.The operating system weighs a variety of factors in creating the job queue.These include which jobs are currently being processed, the system's resources being used,which resources will be needed to handle upcoming programs, the priority of the job compared to other tasks,and any special processing requirements to which the system must respond. RESOURCE MANAGEMENT
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The management of resources in a computer system is another major concern of the operating system.Obviously, a program cannot use a device if that hardware is unavailable.As we have seen, the operational software oversees the execution of all programs.It also monitors the devices being used.To accomplish this, it establishes a table in which programs are matched against the devices they are using or will use.The operating system checks this table to approve or deny use of a specific device. CONTROL OF I/O OPERATIONS Allocation of a system's resources is closely tied to the operational software's control of I/O operations.As access is often necessary to a particular device before I/O operations may begin, the operating system must coordinate I/O operations and the devices on which they are performed.In effect, it sets up a directory of programs undergoing execution and the devices they must use in completing I/O operations.Using control statements, jobs may call for specific devices.This lets users read data from specific sites or print information at selected offices.Taking advantage of this facility, data read from one location may be distributed throughout computerized system.

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BUSINESS ENVIRONMENT
1. Explain the need and nature of business ethics.
Answer 1 Business Ethics is a specialized study of moral right and wrong. It concentrates on moral
standards as they apply particularly to business policies, institutions, and behavior. Need And Nature of Business Ethics

Ethical motivation: It protects or improves reputation of the organization by creating an efficient and productive work environment. At a time of mass corporate downsizing, one of the most effective ways to appeal to the fragile loyalty of insecure employees is to promote an ethical culture, which gives employees a greater sense of control and appreciation. Balance the needs and wishes of stakeholders: There is pressure on business to recognize its responsibilities to society. Business ethics requires businesses to think about the impact of its decisions on people or stakeholders who are directly or indirectly affected by those decisions. Companies build their image by acting in accordance with their values, whatever they might be. Creating a positive public image comes from demonstrating appropriate values. Publicizing and following a company's values allows stakeholders to understand what the company stands for, that it takes its conduct as an organization seriously. Global challenges: Business must become aware of the ethical diversity of this world because of increasing globalization of the economy. It must learn the values of other cultures, how to apply them to its decisions, and how to combine them with its own values. In a world where transnational corporations and their affiliates account for two-thirds of the world's trade in goods, and employ 73 million people, corporations cannot afford to ignore the reality of multicultural ethics. Ethical pay-off: They serve to protect the organization from significant risks, and to some degree help grow the business. Risks such as breaches of law, regulations or company standards, and damage to reputation were perceived to be significantly reduced. Employee Retention: One of the major costs in business is inappropriate turnover. The loss of valuable experience and development of new personnel is a cost companies can control. Seldom is pay the primary factor in losing an employee. What would a company give to retain valuable employees? With a successful program, the employees work with managers and supervisors in making decisions based on the company's values. A successful Business Ethics program establishes a culture that rewards making the right decision. Prevention and Reduction of Criminal Penalties: The United States Sentencing Commission Guidelines state that to receive a 40% reduction in federal penalties, a company must have "an effective program to detect and prevent violations of the law". Executives cannot always be aware of everything done in a company's name. Jeffrey Kaplan in his article The Sentencing Guidelines: The First Ten Years points out that recent cases also show that prosecutors are electing not to pursue some actions because the companies in question have sound programs in place. This is a tremendous asset to companies under regulatory scrutiny. Preventing civil lawsuits: Many times employees that experience issues in the workplace first try to resolve these issues internally. If their complaints are ignored, employees feel compelled to go to an outside advocate. That could be a private attorney, government regulator or news agency. Giving employees an internal outlet can solve problems without the event becoming public knowledge or an issue for the courts. Having the values permeate the company culture enhances the staff's trust in senior management. Why? Because with an effective program, the staff recognizes that management also operates within these appropriate values. Market Leadership: When a company fully integrates its values into its culture, quality rises due to the employee's focus on values. Customers see that the employees care about the customer's concerns. Employees reflect appropriate values in their attitude and conduct. Roy Koerner in his article Want More Profit? Try Ethical Business Practices points out that businesses demonstrating the highest ethical standards are also the most profitable and successful. Setting the Example: By setting the example in the community and market, the entire industry has a new standard that allows the community and the market to recognize the company as a

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leader. When the word gets out, competitors will have to answer questions about why they were not establishing similar values.

1. Discuss the holistic approach for managers in decision making

Answer 2 Holistic decision making encourages us to be aware of our actions and their impact on the
whole; it ensures that we take responsibility and accept accountability for the decisions we make and empowers us to be part of the ongoing process of change. In order to provide managers with the necessary tools to manage modern organizations with a view to building long-term sustainable competitive advantage, it is imperative that organizations embrace a more holistic approach to problem solving. Not all decisions have the same impact on an organization. We make a distinction between technical and managerial decisions. Technical decisions are those that do not directly require the involvement of any stakeholder to be implemented, while a decision that involves even one stakeholder directly is a managerial decision. For example, a managerial decision might require the implementation of a price increase by a subordinate (internal stakeholder), or might involve a customer accepting a price increase. Until recently, managerial competence was widely accepted to include three elements: knowledge, skills and attitude. But recently, a fourth important element has been added to the list: metacognition. Meta-cognition is a higher-order skill that refers to an awareness and monitoring of ones own cognitive state and that of others. Metacognitive skills include taking conscious control of learning, planning and selecting strategies, monitoring the progress of learning, and changing direction as necessary. In an environment riddled with complexity and uncertainty, rigorous problem-solving skills have become the foundation upon which long-term performance is built, and meta cognition plays a key role. While a focus on cognitive states has been common in the study of consumer decision-making and behaviour, these same psychological theories and methods are now being applied to the examination of managerial thinking and decision-making. Holistic decision making takes all three elements into account. We define holistic decision making as a managerial competence by which the decision maker takes into consideration and incorporates two impact dimensions when making a decision that involves interactions with at least one stakeholder: 1. Effectiveness The first impact dimension of a decision is the extent to which it solves the immediate problem that it was meant to solve. As this can be difficult to measure in complex situations, we are more concerned with the ex ante emphasis on problem solving -- the extent to which a manager takes a particular action, which he believes will be sufficient to solve the immediate problem. We call this the executive dimension of a decision. 2. Operative Learning As a result of having interacted to solve a particular problem, the agents involved have the capacity to learn something. The second impact dimension of a decision is the extent to which it enhances or diminishes the capacity of the two agents, both individually and as a team, to solve similar problems in the future. We refer to this dimension as the operational learning dimension.

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2. Explain secular versus spiritual values in management.

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3. Define business ethics. Discuss various factors that influence business ethics.
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profitmaximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters. Adam Smith said, "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices." Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control. The emergence of large corporations with limited relationships and sensitivity to the communities in which they operate accelerated the development of formal ethics regimes. Factors Ethics is the study of ways of distinguishing and deciding on right and moral behavior as as distinguished from wrong and immoral behavior. The business ethics involves issues of the general policies and practices adopted by a business as a whole as well as its actions in specific situations involving ethical considerations. Business ethics is also impacted by the behaviour of the senior managers responsible for managing the business. In taking decisions involving ethical issues a business must take in to several considerations. Among others these include: Identification of stakeholders of the business and their rights and responsibilities. The stakeholder generally include customers, employees, shareholder or owners, suppliers, other business partners, government and other statutory organizations, and general public. Importance of profit and other similar motives of the business and its managers in relation to the importance of morality, honesty and other similar values. The extent of responsibility of business for specific areas of responsibility to community in general. Among others it includes environmental protection, equality and fairness in dealing with people among all stake holder groups, product quality and reliability, and abetting corruption. Personal value system and belief of the managers and owners of the business. Impact of ethical behavior on short term and long term business performance and prospects.
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1. Discuss the Problems relating to stress in corporate management

Stress on the job is recognized as one of the most significant workplace health hazards facing American workers. It is frequently the result when the requirements of work dont match the capabilities, resources or needs of the worker. U.S. employers lose an estimated $300 billion per year to stress-related work absences, reduced productivity, turnover in staff and health care spending, according to the McLaughlin Young Group, a business management consulting firm. Among senior managers, stress often has the unfortunate and infectious effect of trickling down to line supervisors and work staff. So tackling the problem of stress in the workplace must begin with the senior managers. Burnout Burnout can be a result of workplace stress, as it speaks to the emotional toll stress takes on managers, according to the National Institute for Occupational Safety and Health (NIOSH). When they suffer from it, they are emotionally exhausted and often lose their sense of purpose and can become cynical about their work responsibilities. Its the brick wall they hit and feel not another day or I just cant do this anymore. Reduced Productivity Reduced productivity results when managers are tired; they are less clear in their directives to staff, who then tend to make more mistakes, which causes problems with the products or services being offered. Some estimates say up to 60 percent of the days taken off are because of stress on the job, according to a study published by Fairleigh Dickinson University. Loss of Customers Customer defection can be a sign that managers are too stressed out. When they receive less attention, poorer quality service or defective products, or worse, witness the frenetic pace of the company, they inevitably start to look for companies that are in a better position to meet their needs. Poor Management Poor Management is both a cause and effect of too much stress among company leaders. According to NIOSH, signs of stress-related management issues include: Poorly designed work tasks that include heavy workloads, infrequent breaks such as frequently seen in shift work in restaurants, hospitality businesses and health care professions Lack of autonomy, low authority and decision-making ability by certain level managers, as well as poor or conflicting communication about work issues. Inhospitable work environment in which managers are overly competitive and offer low levels of support to one another. In times of economic downturn, conditions are especially ripe for stress when managers must lay off staff while they are worried about the security of their own positions. Conflict and Violence Violence may be a normal hazard of the job of law enforcement and other uniformed professionals, but it becomes a major risk in all kinds of work environments where stress levels tip the charts. Frequently managers will fail at mediating conflict between employees or not counseling them to get help from employee-assistance programs. At other times, managers may simply be unaware that work conditions are aggravating the stresses employees have in their private lives. Increased Health Care and Worker Compensation Costs Stress takes a physical and mental toll. Research cited by NIOSH says that health care costs are 50 percent greater for employees, such as managers, who report high levels of workplace stress. Moreover, due to management's urgency to produce more with less, managers can become overly harsh and critical of line staff. This has led to nearly every state in the country making provisions for worker's compensation because of unreasonable emotional stress in the workplace.

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RESEARCH METHODOLOGY AND QUANTITATIVE TECHNIQUES

3. State and prove Bayes theorem. Answer In probability theory and applications, Bayes' theorem (alternatively Bayes' law or Bayes' rule) links
a conditional probability to its inverse. That is, it provides the relationship between P(A | B) and P(B | A). It is valid in all common interpretations of probability, and is commonly used in science andengineering.The theorem is named for Thomas Bayes (pronounced /bez/ or "bays"). Under the frequentist interpretation of probability, a probability measures how likely an event is to occur. On this view, Bayes' theorem is a general relationship between P(A), P(B), P(A | B) and P(B | A) for any events A and B in the same event space. Under the Bayesian interpretation of probability, a probability, or uncertainty, measures how likely something is to be true. On this view, Bayes' theorem links the uncertainty of a probability model before and after observing the system being modelled. For example, a probability model, A, is hypothesised to represent a die with an unknown bias. The die is thrown a number of times to collect evidence, B. P(A), the prior, is the initial uncertainty in the model. P(A | B), the posterior, is the uncertainty in the model having taken into account whether the evidence supports or refutes the model. P(B | A) / P(B)represents the degree of support B provides for A. For more information on the application of Bayes' theorem under the Bayesian interpretation of probability,

Bayes' theorem
For general events
Simple form
For events A and B, provided that .P(B)0 P(A/B)= P(B/A) P(A) P(B)

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In many situations, P(B) may be thought of as a normalizing constant.

4. What is data? What are the various sources of data collection? Explain them with the help of suitable example.
Data is a collection of facts, such as values or measurements. It can be numbers, words, measurements, observations or even just descriptions of things.

Qualitative vs Quantitative

Data can be qualitative or quantitative. Qualitative data is descriptive information (it describes something) Quantitative data, is numerical information (numbers).

And Quantitative data can also be Discrete or Continuous: Discrete data can only take certain values (like whole numbers) Continuous data can take any value (within a range)

Methods of Data Collection There are two ways organizations typically collect data. One is primary data collection from your immediate consumers, who provide feedback on your products. You can also invite customers to offer opinions on future products. To gain this information, an interviewer asks the customer to provide views on how the company can modify the existing product to satisfy his needs better. The interviewer uses surveys and questionnaires to collect and record data. This method is helpful for gaining insight about a company's particular merchandise. The second method is secondary data collection, which uses data that has already been printed over the Internet and in magazines and journals. This is predominantly useful in gauging the broad market scenarios. Considerating a Consultant Conducting research involves cost and time. The organization must weigh the pros and cons before hiring consultants to conduct research. Consultants must be made fully aware of what the organization is looking for from the research. Advantages
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The primary benefit to business research is that the organization is able to learn more about consumer choices and preferences. Research provides information on the product features that lure customers and flaws in the product or marketing that contribute to slow sales. Research helps the organization fix problems and cash in on the strengths. Research also contributes to a company's ability to clearly identify the customer demographics and target demographic, including age, gender, monthly income of the household and educational levels. Research mitigates business risks and can help increase demand and sales. 3. What are the sources of information? Journalists should deal in reliable facts, so it is important that the sources you use for writing stories can give you accurate information about what happened or what was said. But just as there are lots of different news events, so there are many different sources of information. Some of them will give you very accurate information and we call these sources reliable (because we can rely on what they say). Others are less reliable, but still useful, while some can hardly be trusted at all. The main way of judging sources of information is on their reliability. Reporters One of the most reliable sources of information (although not completely reliable) are other journalists. They may be your colleagues or reporters from a news agency which supplies your organisation. If they are well trained, experienced and objective, their reports will usually be accurate and can be trusted. However, if there are any essential facts missing from their reports, these will have to be provided. Either they will have to provide them or you will have to find the missing facts yourself. Mistakes can happen. This is why news organisations should have a system for checking facts. A reporter's story should be checked by the news editor then the sub-editor. In small newsrooms, where the reporter may also be the editor or newsreader, the reporter must be especially careful in checking facts. Primary sources Often the source is someone at the centre of the event or issue. We call such people primary sources. It might be a man who fell 1,000 metres from an aircraft and lived to tell the tale; or a union leader who is leading wage negotiations. They are usually the best sources of information about their part of what happened. They should be able to give you accurate details and also supply strong comments. Secondary sources Secondary sources are those people who do not make the news, but who pass it on. The official police report of an incident or comments by someone's press officer can be called secondary sources. Secondary sources are not usually as reliable as primary sources. Most eyewitnesses should be treated as secondary sources for journalists because, although they are able to tell what they think they have seen, they are often not trained for such work and can be very inaccurate, without meaning to be. You have to assess the reliability of secondary sources and if necessary tell your readers or listeners where the information came from. 4. Write short note on Educational Abstracts? EDUCATIONAL ABSTRACTS has come to our desk. There is a distinguished board of Cobperating Editors, including representatives from many foreign countries. Education is treated of from 31 standpoints. Our readers will be interested in the Section of Health and Physical Education. There are abstracts in this first issue from 11 sources, all of which appear to be well selected as far as they go. The format of the journal is quite attractive and patterned after the Psychological Abstracts which were the result of many years of psychological research in the field of reading efficiencv. The editors propound four questions of the educational profession, the answers to which will help them in their further plans. We welcome this new journal and wish for it all success.
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9.

What do you mean by the term Research? What is the role of Research in business decision making Research is systematic investigation of a subject to discover new knowledge, including designs of new products and processes. The process of carrying out research is influenced heavily by the topic being researched and the purpose of research. However we can identify following main steps in all kinds of research projects. Identifying the problem or the specific research task. Studying existing information related to the problem or the research task. Formulating a hypothesis that gives possible explanation or description of the facts to be uncovered by the research. Collecting data or evidence that enables the researcher to test the validity of the hypothesis. Analysing the data collected and drawing conclusions based on it. Research is essential to collect facts and statistics about a company's customers, employees and competitors. On the basis of these numbers, companies are able to make better managerial decisions. The collected statistics are organized into reports and the management team uses them to take action. A good research mechanism is essential, irrespective of the size of the company and its client base. Research is imperative for staying competitive in the market. A business is able to make knowledgeable decisions because of research. In the research process, the company is able to obtain information about key business areas, analyze it, develop a strategy and distribute business information. Reports, provided to the top management, often include information on consumer and employee preferences and all the available routes for sales, marketing, finance and production. Management uses this information to decide the best strategy. Research is a prerequisite at all stages and phases of business operations. Initial research is required to gauge whether getting into the given type of business would be profitable and whether there is demand for the proposed product.

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