Friday, October 29, 2010

OB MIDSEM 2009



Part A

2. Organisational Effectiveness : DEGREE TO WHICH AN ORGANISATION REALIZED ITS GOALS…

4. Elements Of Organization structure

      1).Work specialisation: Division of labour leads to fitting the right person in right place& hence it saves cost, time & improves productivity through specialised skill but may lead to fatigue and boredom.

     2).Departmentalization: Functions, Product, Customer Geographic, Process

     3).Chain of command: Clarifes who report to whom

     4).Span of control: No.of suboordinates a manager can control and direct effectively.

      5).Centralisation & Decentralisation

      6).Formalization


9. Power
–          Used as a means for achieving goals.
–          Requires follower dependency.
–          Used to gain lateral and upward influence.


            Part B

1. The Simple Structure : low degree of departmentalization, wide span of control, authority centralised in a single person.

The Bureaucracy:standarised activity, highly efficient
      but there exists conflicts in subunits & excess rules.
     
Matrix : Combination of functional and project or product patterns of departmentation in the same organisation

We have to analyse when to adopt simple or Matrix structure …..

3. Why do structures differ?
              Every organization has a unique structure depending on various factors and forces in the industry.

         We describe two organizational models, one is the organic model and the other the mechanistic model.

         The organic looks like the boundaryless organization .It is flat, prevalence of cross- functional and hierarchical teams whereas the mechanistic model is more synonymous with the bureaucracy in that it has extensive departmentalization, high formalization and a limited network.

         Structures differ based on these factors
¡         Strategy
¡         Organization size
¡         Technology
¡         Environment

4.  Not everyone prefers the freedom and flexibility of organic structures. Some people are most productive and satisfied when work tasks are standardized and ambiguity is minimized that is, in mechanistic structure. So any discussion of the effect of organizational design on employee behavior has to address individual differences. To illustrate the point, let us consider employee preferences for work specialization span of control and centralization.

6. OST based Question …..

CASE STUDY

  Case study was based on organisational structure… Strategies used to overcome the faced problem…….


Tuesday, October 26, 2010

MARKETING Mid sem 2009



2. The concept of marketing holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. The marketing and selling concepts are often confused but despite this confusion, there are many organizations that follow the selling concept. The selling concept is the idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort.

7. One-to-one marketing (sometimes expressed as 1:1 marketing) is a customer relationship management (CRM) strategy emphasizing personalized interactions with customers

8. Needs and motives, perceptions, attitudes, learning and self concept theory


SECTION B

3.  For a company to essentially enjoy good overall success and growth, it is important that certain basic business tasks which assist in achieving this are carried out. One of the most important of all these tasks if marketing. Marketing is in fact the key to success, and can lead a business onto greater paths never imagined possible when operation first begins. Being the important asset that it is in achieving business success and growth marketing has been transformed and developed into new fully-functioning forms which in the end achieve the same results in marketing for a company.

The Importance of the Existing Customer in Marketing

           Relationship marketing is one of these forms of marketing, and functions by placing emphasis specifically onto the existing client base of a company. Essentially, for a company to be successful it needs to have one focus in mind, as is that with relationship marketing, and that is the consumer. With focus on the consumer so as to attain this success, a company can enjoy a good relationship with their customers who will be encouraged to remain loyal to the company, thus ensuring that an ongoing source of revenue is supplied.

Referring even further to the importance of the customer for a company, through relationship marketing constant client-company communication means that customers are continually reminded of the company and informed about promotions and special offers; hereby maintaining an on-going relationship and the opportunity for a company to increase company loyalty, referrals and repeat purchasing.


4 . a) Identifying A Need Or Problem – At the first stage in consumer buying behavior, a person begins to recognize a problem or desire. If the problem or desire is complex, such as a losing weight, most of the person’s focus will be on understanding their situation. Using weight loss as an example, your marketing materials at this stage would need to focus on answering very general questions, such as “how to determine healthy weight?“

b) Searching For A Solution To The Problem – After a problem or desire has been identified, the consumer begins searching for a solution. At this stage of consumer buying behavior, there may not be a past experience to guide their information gathering. So, again, using personal weight loss as an example, multiple solutions may be identified at this time such as buying the latest diet plan book, purchasing a new treadmill, or joining the local gym. Your goal at this point in the buying process is to get your product or service in front of the consumer. Make them aware of your solution.

c) Evaluating Options – Once the consumer understands his or her situation and has gathered research on possible solutions, the buying process enters an evaluation period. The consumer now starts to take a close look at specifics, such as the company providing the solution, the brand name of the product, and the features and benefits of each solution. Branding and product differentiation are extremely important tools of persuasion during the evaluation stage.

d) Purchase – After a comprehensive review of solutions and specific products and services, the consumer makes a purchase decision. At this point in the buying process, supporting information needs to be provided to reinforce the decision to buy. Depending on your product or service, you may need to provide different payment options or billing terms.

e) Evaluation Of The Purchase – We’re all familiar with buyer’s remorse. It is crucial to building strong relationships with customers and encouraging repeat purchases that you not only provide a positive purchase experience and after sale support, but that you strengthen the buyer’s perception that they made the right purchase decision. After sale customer support and follow-up is vital at this stage in consumer buying behavior as is continuation of your small business marketing for cross-selling and strengthening your brand image and online branding.

There are four alternative positions for any business - the BCG Chart has four quadrants called:

         Question Marks§
         Stars§
         Cash Cows§
         Dogs§

1. Question Marks: The business unit has low market share compared to competitors, however it is doing business in high-growth market. Most of the new businesses start in this quadrant. There are well established businesses in this market and new businesses try to grow and capture more market share. This market is growing and there are opportunities for new businesses. At the same time there is risk involved with investing in this business – because of that these businesses are called question marks. Question Marks have to develop and grow by investing and continuously improving their business.
Grow sales by increasing market share. Use cash from Cash Cows to support required investments.

2. Stars: The business has high market share compared to competitors and it is doing business in high-growth market. This business is a market leader. Successful Question Marks will grow their business and capture more market share and will hopefully become Stars (move from the Question Marks quadrant to the Stars quadrant). Successful and competitive organizations have at least one star business unit or product. Stars have to improve their business continuously in order to keep their position in the marketplace. As long as this market is growing new question marks will try to capture new business.
Invest for sales growth and market share. Use cash from Cash Cows to support required investments.

3. Cash Cows: The market is not very attractive – low market growth rate, however the business has high market share compared to competitors. This business generates a lot of cash and helps the organization invest in other businesses. Since the market does not attract new players, this business does not need substantial investments to keep the market share. Cash Cows have to protect and keep the market share and maximize cash flow.
Maintain the strong market position and defend your market share. Take advantage of sales volume and leverage the size of operations. Support other businesses.

4. Dogs: This business has low market share and operates in low-growth market. It is unlikely that this business is very profitable – more likely this business is a loser. Such a business needs consideration and new strategy development. Potential strategies are withdrawal, selling the business, repositioning the current business, and operating cost reduction.


SECTION C

CASE STUDY

Case study was based on perception and attitudes …..

MARKETING

Which definition is right ?
 In short, they all are. They all try to embody the essence of marketing:
• Marketing is about meeting the needs and wants of customers;
• Marketing is a business-wide function – it is not something that operates alone from other business activities;
• Marketing is about
 understanding customers and finding ways to provide products or services which customers demand
To help put things into context, you may find it helpful to often refer to the following diagram which summarises the key elements of marketing and their relationships:

 KEY TERMS FOR MARKETING

 
Hi Friends ,

As we have application Level Questions there are many important terms that we should know.   
I have tried to limit my list to the top terms used in marketing.  I know there are a large number of terms but make sure that you know what they mean and we should do well. .

Marketing concept
marketing mix -- 4 Ps
marketing myopia
marketing strategy
target market
Demarketing
General demarketing, selective demarketing
social marketing
relationship marketing
convenience goods, shopping goods, specialty goods
environmental marketing
price discrimination (Robinson-Patman Act)
FTC
FDA
CPSC
psychographics --AIO
perception
classical conditioning
stimulus generalization
contiguity (association)
instrumental conditioning
reinforcement
perceived risk --social risk, psychological risk, etc.
innovator, laggard
New Product Adoption Model (adoption process)
opinion leader, buzz marketing
reference group
social class --UU, UL, etc.
compatibility, complexity, trialability, etc.
demographics
family life cycle
niche marketing
ethnic marketing
market segmentation
benefit segmentation
mission statement
marketing plan
market penetration
market development, product development
cash cow, stars, dogs,..
sales forecasting
marketing information system
symptom vs. problem in marketing research
problem of low rate of response 

Monday, October 25, 2010

DBMS Midsem 2009




PART B




2.
    a)     Any input for processing for a required output known as data. Processed data is known as information. Data also can be information.

b)     A database is a logically coherent collection of data with some inherent meaning, representing some aspect of real world and which is designed, built and populated with data for a specific purpose. 

               A DBMS is a system software package that helps the use of integrated collection of data records and files known as databases. It allows different user application programs to easily access the same database. Collection of information stored in a particular storage in organized way known as database.

4.The popularity of the network data model coincided with the popularity of the hierarchical data model. Some data were more naturally modeled with more than one parent per child. So, the network model permitted the modeling of many-to-many relationships in data.

5.In database technology, domain refers to the description of an attribute's allowed values. The physicaldescription is a set of values the attribute can have, and the semantic, or logical, description is the meaning of the attribute.

Unary relationships have only one participant-the relation is associated with itself. The classic example of a unary relationship is Employee to Manager. One's manager is, in most cases, also an employee with a manager of his or her own. 



8. Advantages
  • Reduced data redundancy
  • Reduced updating errors and increased consistency
  • Greater data integrity and independence from applications programs
  • Improved data access to users through use of host and query languages
  • Improved data security
  • Reduced data entry, storage, and retrieval costs
  • Facilitated development of new applications program
   Disadvantages
  • Database systems are complex, difficult, and time-consuming to design
  • Substantial hardware and software start-up costs
  • Damage to database affects virtually all applications program
  • Extensive conversion costs in moving form a file-based system to a database system
  • Initial training required for all programmers and users
9. The are three levels of abstraction: Ø Physical level: The lowest level of abstraction describes how data are stored. Ø Logical level: The next higher level of abstraction, describes what data are stored in database and what relationship among those data. Ø View level: The highest level of abstraction describes only part of entire database.

12.The Components of DBMS according to "Database System" a book written by Connoly-Begg are : 
·  Hardware
·  Software
·  Data
·  Procedures
·  People
DATA
Data is integrated and shared by many users.
a database is a representation of a collection of
related data.
Underlying principles: hierarchical, network,
relational or semantic.

• SOFTWARE
the components of a database management
system: data definition and data manipulation.

• USERS
application programmers, non-computer science
expert and experienced user.

• HARDWARE
consequences for the architecture of a database
system.
developments: time sharing, file server,
client/server.

DBMS PART 1


DBMS PART 1

         A DBMS (Database Management System) is software designed to manipulate the information in a database. It can add, delete, modify, sort, display and search for specific information, and perform many other tasks on a database. A  DBMS is sometimes also referred to as a Database Manager or Database Engine.

Examples of legacy flat-file DBMS systems are: dBase, Clipper, FoxPro and DataEase.

Some of the specialized DBMS types in existence are: RDBMS (most popular), ODBMS, ORDBMS, HDBMS, NDBMS, etc.

QUESTION ANSWER TYPE

1. What is database?
A database is a logically coherent collection of data with some inherent meaning, representing some aspect of real world and which is designed, built and populated with data for a specific purpose.

2. What is DBMS?
It is a collection of programs that enables user to create and maintain a database. In other words it is general-purpose software that provides the users with the processes of defining, constructing and manipulating the database for various applications.

3. What is a Database system?
The database and DBMS software together is called as Database system.

4. Advantages of DBMS?
Ø Redundancy is controlled.
Ø Unauthorised access is restricted.
Ø Providing multiple user interfaces.
 Ø Enforcing integrity constraints.
 Ø Providing backup and recovery.

5. Disadvantage in File Processing System?
Ø Data redundancy & inconsistency.
Ø Difficult in accessing data.
Ø Data isolation.
 Ø Data integrity.
Ø Concurrent access is not possible.
Ø Security Problems.

6. Describe the three levels of data abstraction?
The are three levels of abstraction:
Ø Physical level: The lowest level of abstraction describes how data are stored.
Ø Logical level: The next higher level of abstraction, describes what data are stored in database and what relationship among those data.
Ø View level: The highest level of abstraction describes only part of entire database.

7. Define the "integrity rules"
There are two Integrity rules.
Ø Entity Integrity: States that “Primary key cannot have NULL value”
Ø Referential Integrity: States that “Foreign Key can be either a NULL value or should be Primary Key value of other relation.

8. What is extension and intension?
Extension - It is the number of tuples present in a table at any instance. This is time dependent. Intension - It is a constant value that gives the name, structure of table and the constraints laid on it.

9. What is System R? What are its two major subsystems?
System R was designed and developed over a period of 1974-79 at IBM San Jose Research Center. It is a prototype and its purpose was to demonstrate that it is possible to build a Relational System that can be used in a real life environment to solve real life problems, with performance at least comparable to that of existing system. Its two subsystems are Ø Research Storage Ø System Relational Data System.

10. How is the data structure of System R different from the relational structure?
Unlike Relational systems in System R
Ø Domains are not supported
Ø Enforcement of candidate key uniqueness is optional
Ø Enforcement of entity integrity is optional
Ø Referential integrity is not enforced

11. What is Data Independence?
Data independence means that “the application is independent of the storage structure and access strategy of data”. In other words, The ability to modify the schema definition in one level should not affect the schema definition in the next higher level.

Two types of Data Independence:
 Ø Physical Data Independence: Modification in physical level should not affect the logical level.
 Ø Logical Data Independence: Modification in logical level should affect the view level. NOTE: Logical Data Independence is more difficult to achieve

12. What is a view? How it is related to data independence?
             A view may be thought of as a virtual table, that is, a table that does not really exist in its own right but is instead derived from one or more underlying base table. In other words, there is no stored file that direct represents the view instead a definition of view is stored in data dictionary. Growth and restructuring of base tables is not reflected in views. Thus the view can insulate users from the effects of restructuring and growth in the database. Hence accounts for logical data independence.

13. What is Data Model?
        A collection of conceptual tools for describing data, data relationships, data semantics and constraints.

14. What is E-R model?
           This data model is based on real world that consists of basic objects called entities and of relationship among these objects. Entities are described in a database by a set of attributes.

15. What is Object Oriented model?
         This model is based on collection of objects. An object contains values stored in instance variables with in the object. An object also contains bodies of code that operate on the object. These bodies of code are called methods. Objects that contain same types of values and the same methods are grouped together into classes.

16. What is an Entity?
 It is a 'thing' in the real world with an independent existence.

17. What is an Entity type?
It is a collection (set) of entities that have same attributes.

18. What is an Entity set?
 It is a collection of all entities of particular entity type in the database.

19. What is an Extension of entity type?
The collections of entities of a particular entity type are grouped together into an entity set.

20. What is Weak Entity set?
An entity set may not have sufficient attributes to form a primary key, and its primary key compromises of its partial key and primary key of its parent entity, then it is said to be Weak Entity set.

DBMS PART 2

21. What is an attribute? It is a particular property, which describes the entity.
22. What is a Relation Schema and a Relation? A relation Schema denoted by R(A1, A2, …, An) is made up of the relation name R and the list of attributes Ai that it contains. A relation is defined as a set of tuples. Let r be the relation which contains set tuples (t1, t2, t3, ..., tn). Each tuple is an ordered list of n-values t=(v1,v2, ..., vn).
23. What is degree of a Relation? It is the number of attribute of its relation schema.
24. What is Relationship? It is an association among two or more entities.
25. What is Relationship set? The collection (or set) of similar relationships.
26. What is Relationship type? Relationship type defines a set of associations or a relationship set among a given set of entity types.
27. What is degree of Relationship type? It is the number of entity type participating.
25. What is DDL (Data Definition Language)? A data base schema is specifies by a set of definitions expressed by a special language called DDL.
26. What is VDL (View Definition Language)? It specifies user views and their mappings to the conceptual schema.
27. What is SDL (Storage Definition Language)? This language is to specify the internal schema. This language may specify the mapping between two schemas.
28. What is Data Storage - Definition Language? The storage structures and access methods used by database system are specified by a set of definition in a special type of DDL called data storage-definition language.
29. What is DML (Data Manipulation Language)? This language that enable user to access or manipulate data as organised by appropriate data model. Ø Procedural DML or Low level: DML requires a user to specify what data are needed and how to get those data. Ø Non-Procedural DML or High level: DML requires a user to specify what data are needed without specifying how to get those data.
31. What is DML Compiler? It translates DML statements in a query language into low-level instruction that the query evaluation engine can understand.
32. What is Query evaluation engine? It executes low-level instruction generated by compiler.
33. What is DDL Interpreter? It interprets DDL statements and record them in tables containing metadata.
34. What is Record-at-a-time? The Low level or Procedural DML can specify and retrieve each record from a set of records. This retrieve of a record is said to be Record-at-a-time.
35. What is Set-at-a-time or Set-oriented? The High level or Non-procedural DML can specify and retrieve many records in a single DML statement. This retrieve of a record is said to be Set-at-a-time or Set-oriented.
36. What is Relational Algebra? It is procedural query language. It consists of a set of operations that take one or two relations as input and produce a new relation.
37. What is Relational Calculus? It is an applied predicate calculus specifically tailored for relational databases proposed by E.F. Codd. E.g. of languages based on it are DSL ALPHA, QUEL.
38. How does Tuple-oriented relational calculus differ from domain-oriented relational calculus The tuple-oriented calculus uses a tuple variables i.e., variable whose only permitted values are tuples of that relation. E.g. QUEL The domain-oriented calculus has domain variables i.e., variables that range over the underlying domains instead of over relation. E.g. ILL, DEDUCE.
39. What is normalization? It is a process of analysing the given relation schemas based on their Functional Dependencies (FDs) and primary key to achieve the properties Ø Minimizing redundancy Ø Minimizing insertion, deletion and update anomalies.
40. What is Functional Dependency? A Functional dependency is denoted by X Y between two sets of attributes X and Y that are subsets of R specifies a constraint on the possible tuple that can form a relation state r of R. The constraint is for any two tuples t1 and t2 in r if t1[X] = t2[X] then they have t1[Y] = t2[Y]. This means the value of X component of a tuple uniquely determines the value of component Y.
41. When is a functional dependency F said to be minimal? Ø Every dependency in F has a single attribute for its right hand side. Ø We cannot replace any dependency X A in F with a dependency Y A where Y is a proper subset of X and still have a set of dependency that is equivalent to F. Ø We cannot remove any dependency from F and still have set of dependency that is equivalent to F.
42. What is Multivalued dependency? Multivalued dependency denoted by X Y specified on relation schema R, where X and Y are both subsets of R, specifies the following constraint on any relation r of R: if two tuples t1 and t2 exist in r such that t1[X] = t2[X] then t3 and t4 should also exist in r with the following properties Ø t3 = t4[X] = t1[X] = t2[X] Ø t3[Y] = t1[Y] and t4[Y] = t2[Y] Ø t3[Z] = t2[Z] and t4[Z] = t1[Z] where [Z = (R-(X U Y)) ]
43. What is Lossless join property? It guarantees that the spurious tuple generation does not occur with respect to relation schemas after decomposition.
44. What is 1 NF (Normal Form)? The domain of attribute must include only atomic (simple, indivisible) values.
45. What is Fully Functional dependency? It is based on concept of full functional dependency. A functional dependency X Y is full functional dependency if removal of any attribute A from X means that the dependency does not hold any more.
46. What is 2NF? A relation schema R is in 2NF if it is in 1NF and every non-prime attribute A in R is fully functionally dependent on primary key.
47. What is 3NF? A relation schema R is in 3NF if it is in 2NF and for every FD X A either of the following is true Ø X is a Super-key of R. Ø A is a prime attribute of R. In other words, if every non prime attribute is non-transitively dependent on primary key.
48. What is BCNF (Boyce-Codd Normal Form)? A relation schema R is in BCNF if it is in 3NF and satisfies an additional constraint that for every FD X A, X must be a candidate key.
49. What is 4NF? A relation schema R is said to be in 4NF if for every Multivalued dependency X Y that holds over R, one of following is true Ø X is subset or equal to (or) XY = R. Ø X is a super key.
50. What is 5NF? A Relation schema R is said to be 5NF if for every join dependency {R1, R2, ..., Rn} that holds R, one the following is true Ø Ri = R for some i. Ø The join dependency is implied by the set of FD, over R in which the left side is key of R.

Sunday, October 24, 2010

Business Law Midsem 2009




Part-A
I

1. Public law deals with matters pertaining to rights of the individual versus the state, rights of the states versus centre .
private law deals deals with laws dat are applicable to and among individuals in society eg, transfer in property.
  
3.Void agreement -an agreement not enforceable by law.

4. Voidable contract- a contract which can be avoided or set aside at the option of the aggrieved party. An agreement which is enforceable by law at the option of one or more of the parties there to but not at the option of other or others. [sect 2(i)].

5.  Illegal agreement  an agreement is said to be illegal when the purpose or object for which it has been formed is based on committing a crime
         

6. Unenforceable contract- a contract which cannot be enforced in a court of law because of some technical defects.

Eg : no stamp

7. Implied contract-is one which is inferred from the act of conduct of the parties.

8. Executory contract- a contract in which both the parties have yet to perform their obligations.

Part-B

XVI.            Ii. An agreement without consideration is void [accoridng to section 25] – what are the exceptions to this rule?
1.     Consideration being one of the essential ingredients of a valid contract, as a general rule an agreement made without consideration is void and not enforceable
2.     There are 7 exceptions to this rule and the exeptions are:
a)     As per section 25 (1) an agreement made out of love and affection without any consideration is valid if it meets all the following conditions:
       i.            It must be expressed in writing
     ii.            It must be registered under the law of registration
  iii.            Made on account of natural love and affection
  iv.            It must be between parties who are near relations to each other
          [(1) a agrees to pay his son’s debt to the son’s debtors
          (2) a agrees to pay his quarrelling wife to stay away from him held not valid as the agreement was not for love and affection
          (3) non written or non registered would also not be valid if registration is mandatory]
         
3.     As per section 25 (2) an agreement to compensate for past voluntary service is valid even if there is no consideration
          a rescued b from drowing. On returning home, ‘b’ promises to pay a rs 1000/- this is a valid contract though a had done it without any expectation. [ past consideration]

4.     As per 25 (3) agreements to pay time barred debt is valid even without any fresh consideration


5.     Explanation to section 25 (1) says a gift if already made by donor to donee shall be valid even without consideration
         
[in this case donee need not be a relative]
          [i gave all my stamp / coin collections to a student in the college]   

6.     According to section 63 for remission or compromising a debt no consideration is necessary
          [agreeing to extend time for repayment agreeing to close debt for a lower amount]

7.     According to section 185 no consideration is required for executing an agreement of agency
No consideration required for making contributions to charity

III.consider the case of dunlop vs selfridge co

IV.sec 2(h) 

 VI. Sources of business law in india




VII What is meant by quasi- contract
a)     Under the law of contracts obligations are voluntarily created upon each other by parties to the contract
b)    In certain circumstances obligations may be created or imposed by law even without the existence of a contract
Such imposed obligations are called quasi- contractual obligations 
d)    Such obligations are imposed by courts on the equity pronciple that no man should grow rich at the cost of another
e)     Quasi- contracts are not contracts, but the relationship or obligations resemble the relations/ obligations arising out of contracts
f)      The 5 types of quasi-contractual obligations are outlined in sections 68 – 72 of the ica 1872


VIII. Sec 2(d)


More short answers can be found from My Previous Post....

Accounts Mid Sem 2009

1)Management Accounting: Management Accounting is the presentation of accounting information in such a way as to assist Management in the creation of policy and the day to day operation of an undertaking.
             Management Accounting is concerned with accounting information that is      useful to management.

2) Common size Financial Statements: are those statements in which items are converted into percentages taking some common base. It is also called “100% statement”. It includes common size balance sheet and common size profit & loss A/C.

3) Financial Statements: are those statements showing the financial position and results of business operation at the end of the accounting period. This include B/S (position statement) and P&L A/c (Income statement)
        Besides B/S and P&L, it also include Statement of retained earning, Fund flow statements, cash flow statements etc .These are prepared to supplement the two financial  statements.

4) Horizontal Analysis (Dynamic Analysis) when financial statements for a number of years analysed, the analysis is called Horizontal Analysis (Dynamic Analysis) eg: Study of profitability trends for a period of 5 or 10 years.

5) Vertical Analysis (Static Analysis): Refers to the analysis of the mutual relationship between different items in the Financial Statements at a particular date .(comparison of CA &CL)

6) Accounting ratios in different categories.

  I) according to accounting statement:
   (1) B/S or financial ratios-current ratio, fixed assets ratio
   (2)P&L A/C ratio- gross profit ratio
   (3)Combined or mixed ratio-stock turn over ratio

II) According to Nature of functions:
(1)   Liquidity ratios-current, ratios-quick ratios
(2)   Leverage ratios-/ capital structure ratios-Measures Long term solvency-eg: Debt-equity, capital gearing.

III) Activity ratios/Turn over ratios-Stock turn ratio, fixed assets  turn over ratios ,debtors turn over ratios  .

IV) Profitability ratios – measure profitability or operating efficiency of a firm eg :gross profit ratio, operating profit ratio, Net profit ratio

 v) Market Test ratios: used for evaluating shares and stocks which are traded in the market     
  eg. Earning per share (EPS), Price Earning Ratio (P/E ratio)

7) PE ratio (Price earning ratio) gives fair idea about the potential market price of a share – expectations about the future of a coy.
PE ratio = Market price per share
                    Earnings per share
Market price per share = PER X EPS

8) Gross working capital: Total current assets. Net working capital: excess of current assets over current liabilities. (Current assets minus Current liabilities)

9) Duties of Management Accountant: (1) Collection of information (2) Evaluation of information  (3) Interpretation of information (4) Reporting of information

10) Importance for Management
Importance for investors
Importance for creditors and suppliers
Importance for bankers
Importance for Customers
Importance for Employees
Importance for Government and Agencies
Importance for public
Importance for Trade Unions