Question : A firm made credit Revenue from Operations (Credit Sales) of Rs.5,40,000 during the year. If the trade receivables turnover ratio is 9 times, The value of opening and closing trade Receivables, if the closing trade receivables are more by Rs.8,000 than the opening trade receivable will be
Option 1: Opening trade receivable Rs 56,000 closing trade receivable Rs 64,000
Option 2: Opening trade receivable Rs 64,000 closing trade receivable Rs 56000
Option 3: Opening trade receivable Rs 24000 closing trade receivable Rs 32000
Option 4: None of the above
Correct Answer: Opening trade receivable Rs 56,000 closing trade receivable Rs 64,000
Solution : Answer = Opening trade receivable Rs 56,000 closing trade receivable Rs 64,000
Trade receivable turnover ratio=$\frac{Net credit sales}{Average trades receivable}$
⇒ 9 times= $\frac{5,40,000}{Average trade receivables}$
⇒ Average trade receivables=$\frac{5,40,000}{9}$
⇒ Average trade receivables= 60,000.
Let op. trade receivable=X
Closing trade receivable=X+8000
Average trade receivable=$\frac{X+X+8000}{2}$
⇒ 60,000=$\frac{X+X+8000}{2}$
⇒ 2X+8000=1,20,000
⇒ X=1,20,000/2= 56,000.
Opening trade receivables= Rs 56,000
Closing trade receivables = 56,000+8,000= Rs 64,000.
Hence, the correct option is 1.
Question : Assertion: Marketing management focuses on delivering customer value and satisfaction.
Reason: Marketing management is solely about increasing sales volume.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Solution : The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
The assertion is true. Marketing management does indeed focus on delivering customer value and satisfaction. It involves understanding customer needs and preferences, developing products or services that meet those needs, and delivering value to customers to satisfy them and build long-term relationships.
The reason is not the correct explanation. The reason incorrectly states that marketing management is solely about increasing sales volume. While increasing sales volume is a goal of marketing management, it's not the sole focus. The primary focus is on understanding and meeting customer needs and delivering value, which naturally leads to increased sales volume through customer satisfaction and loyalty.
In summary, both the assertion and reason are true, but the reason is not the correct explanation of the assertion.
Question : Case Study: XYZ Manufacturing Company
XYZ Manufacturing Company is a well-established firm that produces consumer electronics. They have been facing increased competition and declining sales in recent years. The management is looking for ways to revamp their production processes and regain market share.
What is the first step XYZ Manufacturing Company should take in the planning process to improve their production processes?
Option 1: Setting objectives and goals
Option 2: Identifying potential risks
Option 3: Allocating resources
Option 4: Evaluating alternatives
Correct Answer: Setting objectives and goals
Solution : The correct answer is (a) Setting objectives and goals
Setting objectives and goals is typically the initial phase in the planning process. This step involves clearly defining what the company aims to achieve and outlining the desired outcomes. By establishing specific objectives, XYZ Manufacturing Company can provide direction for the subsequent planning steps, such as identifying potential risks, allocating resources, and evaluating alternatives. Clear goals will help guide the development of strategies and action plans to revamp their production processes and regain market share.
Question : Which of the following statement is correct?
Statement 1: Branding provides convenience in the carriage of product from one place to another.
Statement 2: Packaging simplifies the work of sales promotion.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Both are false
Solution : Branding refers to the creation and establishment of a brand, which includes the name, design, symbol, and other characteristics that differentiate a company's products or services from those of its competitors. Packaging can play a role in sales promotion by catching the attention of potential customers and conveying important information about the product.
Option B is correct.
Question : Statement 1: Selling concept focuses on customer satisfaction through understanding their needs.
Statement 2: Marketing concept solely relies on aggressive promotional tactics to drive sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is true. The selling concept does focus on customer satisfaction through understanding their needs. This concept involves understanding customer needs and wants and then developing strategies to meet those needs and sell products or services that address those wants.
Statement 2 is false. The marketing concept does not solely rely on aggressive promotional tactics to drive sales. The marketing concept emphasizes understanding customer needs and wants, creating valuable products or services to meet those needs, and delivering value to customers. It's not just about promotion; it's about a holistic approach that involves product development, pricing, distribution, and promotion based on understanding and satisfying customer needs.
Question : Sara, Sita and Meena were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. Sara died on 30th June, 2017, whereas the firm closes its books on 31st March every year. According to their Partnership Deed Sara's representatives would be entitled to get share in the interim profits of the firm calculated on sales basis. Sales and profit for the year 2016-17 were Rs.6,00,000 Rs.1,80,000 respectively and sales in the year 2017-18, till the date of her death amounted to Rs.1,20,000. Sara's share of interim profit will be
Option 1: Rs 14,000
Option 2: Rs 14,600
Option 3: Rs 14,400
Option 4: None of the above.
Correct Answer: Rs 14,400
Solution : Answer = Rs 14,400
Profit= 1,80,000
Sales= 6,00,000
Profit=$\frac{1,80,000}{6,00,000} \times 1,20,000$= 36,000.
Sara's share of profit= 36,000×$\frac{2}{5}$= 14,400.
Hence, the correct option is 3.
Question : Ayaan got selected as a sales officer in one of the leading sales companies. He was given a brief introduction about the company and its policies and regulations. Identify the step in the process of staffing which ayaan is going through.
Option 1: Selection
Option 2: Employment interview
Option 3: Orientation or induction
Option 4: Training and development
Correct Answer: Orientation or induction
Solution : Orientation refers to introduction of new employees to the existing employees large organisation organise orientation programme to familiarise the new employee with the existing whereas in small organisation superior takes the new employees on round and introduces him to the existing employees.
Hence, option 3 is the correct answer.
Question : Statement 1: Selling concept focuses on customer satisfaction through understanding their needs.
Statement 2: Marketing concept solely relies on aggressive promotional tactics to drive sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is true. The selling concept does focus on customer satisfaction through understanding their needs. This concept involves understanding customer needs and wants and then developing strategies to meet those needs and sell products or services that address those wants.
Statement 2 is false. The marketing concept does not solely rely on aggressive promotional tactics to drive sales. The marketing concept emphasizes understanding customer needs and wants, creating valuable products or services to meet those needs, and delivering value to customers. It's not just about promotion; it's about a holistic approach that involves product development, pricing, distribution, and promotion based on understanding and satisfying customer needs.
Question : Aman, Raman and Suman were partners sharing profits a ratio of 3:2:1 respectively. The profit and sales for the year ended 31 March 2017 were Rs.3 lakh and Rs.10 lakh respectively. Aman died on 30th November, 2017. Calculate the share of a deceased partner in the profits for the period from 1st April 2017 to 30th November 2017, if the same is calculated:
Q. On the basis of sales which were Rs.8 lakh from 1st April 2017 to 30th November 2017.
Option 1: Rs 1,20,000
Option 2: Rs 1,40,000
Option 3: RS 2,00,000
Option 4: Rs 70,000
Correct Answer: Rs 1,20,000
Solution : Answer = Rs 1,20,000
Decreased Partner's Share of Profit = Profit/Sales x Profit
= 3,00,000/10,00,000 x 8,00,000
=2,40,000 x 3/6 = 1,20,000
Hence, the correct option is 1.
Question : Statement 1: Marketing concept focuses on delivering superior value to customers.
Statement 2: Selling concept solely relies on product features to drive sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is correct. The marketing concept indeed focuses on delivering superior value to customers. It emphasizes understanding and meeting customer needs and wants by offering products or services that provide value and benefits to the customers.
Statement 2 is false. The selling concept does not solely rely on product features to drive sales. While product features may be a part of the selling approach, the selling concept emphasizes aggressive promotional tactics and sales techniques to maximize short-term sales.
Therefore, statement 1 is correct, and statement 2 is false.