Every MBA Fresher reconciles with interviews that make them anxious especially if it’s their first one. Consequently, like mock test papers for exams, the Top 20 Interview Questions and Answers for Management students are helpful.
That is to say, most students take recourse to them but know little about the best way to answer such questions. As a result, many fumbles and get nervous during interviews. However, it adds to their troubles so several students look for desperate means to crack interviews.
So, here is a guide for the Top 20 Interview Questions and Answers for Management Freshers for your next interview!
Guide to the Top 20 Interview Questions and Answers for Management Stream:
Follow this sample guide for answering Interview Questions and Answers for Management students. This section talks about the following types of MBA disciplines:
- Finance
- Marketing
- Human Resources (HR)
To clarify, these questions are for the Management stream but if you’re a Non-Technical student too, they are relevant for you. Above all, every Fresher should be original and authentic during interviews. Most importantly, these sample answers will help you get started but do not memorize them.
Top 20 Interview Questions and Answers for Management in Finance
1. What does Working Capital mean?
A: Working capital is the amount after deducting current liabilities from existing assets.
That is to say, it is the cash that the business receives through inventories and receivables. Moreover, it calculates the cash it owes for short-term duration. (within the fiscal year)
2. How does Working Capital get calculated?
A: Working Capital calculation is a 4 slipstream process:
- First, start with net income and proceed line by line making adjustments for cash flows.
- Calculate capital expenditures and purchase value of intangible assets. Additionally, use purchases of investment securities to arrive at cash flow investments.
- Mention issuance of equity repurchases and debt-paying dividends to arrive at finances.
- Lastly, add cash flow from investments, operations and finances for net Working Capital.
3. What does Preference Capital mean?
A: Preference Capital refers to the amount raised by issuing preference shares.
It is a hybrid method of financing that offers features of debentures and features of equity. Moreover, it’s the capital that has preference over Equity Capital at the time of dividend.
4. What does Hedging mean?
A: Hedging is a risk management strategy implemented to offset investment losses. It’s done by taking opposite positions in related assets. The amount of risk Hedging reduces results in the reduction of potential profits.
Similarly, Hedging is similar to insurance where premiums and compensation are guaranteed.
5. What does Fair Value imply?
A: Fair Value refers to a rational estimate of market prices of assets, goods and services. It is the amount at which the asset gets bought or sold in a current transaction other than liquidation.
Fair Value of Liability refers to the charges occurring between two willing parties.
6. What are Cost Accountancy and its application?
A: Cost Accountancy is the combination of costing and cost accounting. Moreover, here the data gets classified and recorded. and expenditures allocated to determine product or service costs.
So, it analyses any related data and presents them in decision-making processes. Therefore, it’s crucial to conduct it in the financial statements to prevent inaccuracy.
7. What do Adjustment Entries involve?
A: These entries get passed at the end of an accounting period for the nominal and related accounts. Therefore, it indicates profit gains and losses for maintaining accurate balance sheets.
8. What does Deferred Tax Liability mean?
A: Deferred Tax Liability is the amount a company hasn’t paid yet to the Tax Department.
Therefore, these companies will pay them in the future. It happens when a company’s expenses are less than the amount reflected in tax reports or statements.
9. What is the difference Between a Journal Entry and a Ledger?
A: The Journal is the book of prime entry and transaction records. Its purpose is to show which accounts get debited or get credited. However, Ledger is the book for keeping separate accounts with classified recorded transactions. Thus, they get added to dedicated accounts present in Ledgers and known as the book of final entry.
10. What are some of the objectives of Cost Accountancy?
A: The objectives of Cost Accountancy are as follows:
- To get the correct cost analysis of my process and cost elements
- Ascertain cost per unit of various products
- To ascertain the profitability of products
- Advise Management personnel on how to maximise profits
- To reduce time wastage, optimise resources and reduce costs.
11. What gets understood by Secondary Markets?
A: The Secondary Market comprises trade securities offered in the Primary Market. Hence, they get listed on stock exchanges.
Therefore, it is also known as the Aftermarket. Some examples include the National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and NASDAQ.
12. What gets understood by RAROC?
A: RAROC or Risk-Adjusted Return On Capital and measures profitability in financial risks. It provides a profitability view across organisations and measures banks’ profitability too.
Moreover, it calculates expected returns accurately by combining risks and ascertained Economic Capital.
13. How can a company enhance positive Cash Flows while facing financial problems?
A: Yes, companies show positive cash flows while facing financial trouble by enhancements.
Moreover, they can delay payables and sell inventory in working capital. Certainly, it can also not let revenue go forward in the pipeline.
14. How can a company show positive Net Income without going bankrupt?
A: A company can show positive net income in two ways:
- Firstly, by reducing working capital on accounts receivable.
- Secondly, by reducing accounts payable with some strategic financial tactics.
15. How is PP&E recorded and why is it important?
A: Property, Plant & Equipment (PP&E) accounting on balance sheets includes:
- Initial Purchase Costs
- Price Depreciation
- Additions such as Capital Expenditures
- Dispositions
- Revaluation.
Therefore, it is important for many businesses. PP&E is the main asset that generates revenue, profitability and cash flow statements.
16. What constitutes a good financial model?
A: This question is somewhat subjective. MBA (Finance) applicants should have a good grasp of financial modelling principles.
A rational answer is like:
“Wherever possible, model assumption inputs should be along with coloured bank models. Excel Spreadsheets make it easy to understand and translate inputs into outputs. A good financial model includes error checks and ensures the model works correctly.
Similarly, like sheet audits, checking for the correctness of cash flow calculations is important. It contains a lot of detail but it should never look overcrowded. Moreover, it should have a dashboard that displays key outputs with graphic charts.”
17. Which is cheaper, Debt or Equity?
A: The answer is reflective of a candidate’s understanding of trade-offs. Because there are pros and cons to Debt or Equity financing that businesses consider, debt is cheaper because it’s paid before equity and has collateral backing. However, it is not automatically better to use debt financing simply because it’s cheaper.
18. When should companies consider issuing Debt instead of Equity?
A: Companies should always optimise capital structures. If a company has taxable income, it benefits from tax shields of issuing debt.
However, if a firm has steady cash flows and makes the required interest payments, then it can issue Debts. Subsequently, it also lowers the weighted average cost of capital for the company.
19. What are some of the topics covered under MBA (Finance)?
A: A Recruiter may ask this question to test your domain knowledge.
Certainly, reply professionally. You can say like, “Some of the topics covered are Finance Management, Cost of Capital and Budgeting. MBA (Finance) manages monetary acquisition through cash flows, valuation, mergers and risk management.”
20. Where do you see yourself in the next five years?
A: Be specific about your future goals and inform about your career expectations. Further, you can also display your ambition for the position. Therefore, elaborate on your aspirations but be humble with your way of delivery. Moreover, you can indicate your professional level of commitment. Subsequently, talk about inspiring company values and your interest in a long-term career.
Top 20 Interview Questions and Answers for Management in Marketing
1. What is the definition of Marketing?
A: Marketing is the process of selling products and services. It includes market research and advertising activities. A company undertakes to promote the buying and selling of products and services. Moreover, Marketing has many domains including Affiliated marketing.
2. What are the 5 essential elements of a marketing campaign?
A: The five essential elements of a successful marketing campaign are:
- Target
- Value proposition
- Call-to-action message
- Delivery method
- Follow-up
3. What does STP mean?
A: STP stands for Segmentation, Targeting and Positioning. It is a strategy used by businesses. STP helps to position products and services among the target groups of customers. It also furthers efficient product sales in the long term.
4. What are the 4 Ps of Marketing and the additional 3 Ps involved?
A: The 4 Ps of marketing are Product, Place, Price and Placement. It’s involved in marketing goods and services for efficient interactions. Additionally, the extra 3 Ps involved are People, Process and Physical Environment.
5. What does Service Marketing involve?
A: It’s the process of marketing services like financial services, hospitality and tourism. Moreover, it can be either B2B (Business-to-Business) or B2C (Business-to-Client).
6. What is Market Share?
A: Market Share is a percentage of total sales volume in a market captured by a brand, product or company. It’s a measure of consumers’ preference for a product over similar products. Consecutively, a higher Market Share means greater sales and a barrier against competitors.
7. What is a Sales Funnel?
A: Sales Funnel or Revenue Funnel is a stage in the buying process that a company uses for selling products. It’s the visual representation of the customer journey from awareness to action.
8. What does AIDA stand for in Marketing?
A: AIDA is a marketing tool that stands for Awareness, Interest, Desire and Action. It is a model that shows how content generates and attracts brand attention. Further, it depicts interest in products and services and stimulates the desire for purchases.
9. What does CRM mean for businesses?
A: CRM is a technology for managing consumer relationships and interactions. It also measures the networking rate among clients and helps generate potential leads.
Further, it improves business relationships and helps companies stay connected. Finally, it binds customers, streamlines business processes and improves profitability.
10. What are the stages involved in the Product Life Cycle (PLC)?
A: The Product Life Cycle has 4 defined stages with individual characteristics:
- Product Launch: This is the inception stage in the Product Life Cycle. So, here a product or a service gets introduced in the market and tested through performance.
- Growth: Consumer behaviour and consumption practices are analysed in this stage. Further, sales get tracked and competitors start emerging. Additionally, many companies form alliances and partnerships.
- Maturity: The market reaches a saturation point. Moreover, producers with bad profits leave the market due to decreasing sales dynamics.
- Recession/ Decline: Products with a continuous decline in sales get disavowed. Moreover, owing to economic and unfavourable production conditions dissolve market shares.
11. What is the difference between Marketing and Selling?
A: Selling encourages product purchases for services available for retail consumption. Further, it increases awareness and boosts consumer loyalty. So, it also generates confidence in the products advertised.
Marketing or brand campaigns involve consumer behaviour analysis in the target market. It requires promotion and usually starts before the selling process.
12. What is Maslow’s Theory of Hierarchy and how does it help in marketing strategy?
A: Abraham Maslow’s five-stage theory on Psychology applies to business strategy planning. So, to ensure good sales conversions, Marketers understand their customer’s motives.
Moreover, a buyer process has several motives and it changes with elements. Marketers help customers further by changing their marketing strategy and resolving potential conflicts. For instance, product differentiation and modifying features for the consumer.
13. What are some of the steps in the product development process?
A: There are multiple steps in the product development process and some of them are:
- Creating new product ideas
- Researching ideas
- Analysing demand
- Technical and Marketing development
- Product manufacturing and planning
- Promotion and Marketing
- Testing campaign success
- Commercialising product evolution
14. Why is Offline Media important for Digital Marketing and for which channels?
A: Offline Media expands the reach of Digital Marketing. Therefore, owing to cost-effectiveness, there are many benefits of online and offline channels. Moreover, it also helps to expand the reach and drive more ROI.
Consequently, Offline Media enables brands to explore different local markets. Additionally, it’s also beneficial for converting customers from offline to online mediums. So, some of the offline channels used include radio, TV, electronic billboards, etc.
15. How is Service Marketing different from Product Marketing?
A: Marketing products and marketing services require different approaches. So, for selling products, the 4Ps of marketing are Product, Price, Place, and Promotion. However, when selling services offered, additionally, 3 more Ps get considered.
These include People, Process, and Physical evidence. Therefore, Service Marketing and Product Marketing need different strategies to promote sales.
16. What does Inbound Marketing mean?
A: Inbound Marketing involves a strategy to attract audiences and promote brand awareness. Some of the elements involved are Events, Social Media and Public Relations.
As a result, it helps brands promote products or services and establishes loyalty.
17. What does USP mean and what makes a business unique?
A: USP stands for Unique Selling Point. It defines unique attributes and shows how a business stands apart from competitors.
Moreover, it explains why prospects can choose a particular company’s offering over others. Therefore, marketing and branding messages must define the USP of businesses. Subsequently, brands should ensure they get aligned with business goals. In other words, a clear and precise USP aids in establishing brand recall.
18. What are the different ways to reach out to target audiences?
A: Reaching out to the target audience requires these strategies:
- Advertising
- Packaging
- Public Relations
- Direct sales
- Digital Marketing
- Social Media Marketing
- Sales Promotions
- Marketing Materials
- PR activities
19. What is Social Listening and why is it important?
A: Social Listening entails monitoring social media dialogues to grasp customer sentiment, manage reputation, analyze competitors, conduct market research, and engage with the audience. It’s vital due to the insights it offers for refining products, enhancing brand reputation, and nurturing robust customer relationships.
20. Can you explain the concept of brand positioning and why it’s crucial in marketing?
A: Brand positioning denotes how consumers perceive a brand relative to competitors. It involves identifying and communicating unique aspects that differentiate a brand in the market. This could encompass product features, benefits, pricing, or emotional appeal. Brand positioning is pivotal as it shapes brand perception, attracting the right audience, fostering brand loyalty, and ultimately driving sales and profitability.
Top 20 Interview Questions and Answers for Management in Human Resources
1. Can you tell me about yourself?
A: Certainly. I possess an MBA in Human Resources Management, with a focus on employee relations, talent acquisition, and organizational development. My professional journey has honed my skills in aligning HR strategies with business goals and cultivating a positive workplace culture.
2. What motivated you to pursue a career in HR?
A: I’ve always been fascinated by the intricacies of human behavior within organizational settings. HR provides a platform to make a meaningful impact by nurturing employee engagement, facilitating professional growth, and fostering inclusive work environments.
3. How do you stay updated with the latest HR trends and practices?
A: I actively engage in professional development through seminars, workshops, and webinars. Additionally, I remain connected with online HR communities, subscribe to industry publications, and participate in relevant forums and discussions.
4. Can you describe your experience in employee relations and conflict resolution?
A: In my previous roles, I’ve adeptly managed various employee relations issues, including conflict resolution, disciplinary actions, and grievance procedures. I prioritize open communication, fair investigations, and proactive measures to mitigate conflicts.
5. How do you approach recruitment and talent acquisition?
A: Recruitment is a strategic endeavor involving thorough analysis of organizational needs and job requirements. I employ diverse sourcing methods, including job boards, social media, and networking, while prioritizing candidate experience and engagement.
6. How do you assess the effectiveness of HR programs and initiatives?
A: I utilize both qualitative and quantitative metrics such as employee satisfaction surveys, turnover rates, and performance metrics to evaluate HR programs. Continuous feedback and data analysis inform the refinement of HR initiatives.
7. How do you handle performance management and employee development?
A: I advocate for setting clear goals, providing regular feedback, and offering opportunities for skill development and career advancement. Ongoing coaching and support are integral to realizing employees’ full potential.
8. What strategies do you employ to promote diversity and inclusion in the workplace?
A: I champion diversity through initiatives, awareness campaigns, and equitable policies. This encompasses diverse hiring practices, inclusive environments, and training on unconscious bias.
9. How do you handle confidential information in HR?
A: I adhere strictly to ethical standards and company policies, ensuring sensitive information is handled discreetly and shared only with authorized individuals on a need-to-know basis.
10. Can you provide an example of a successful HR project you led?
A: Certainly. In a previous role, I spearheaded a diversity and inclusion initiative, resulting in increased representation of underrepresented groups through targeted recruitment strategies and fostering an inclusive culture.
11. How do you handle conflicts between employees or between employees and management?
A: I approach conflicts with mediation and resolution in mind, prioritizing open communication, understanding perspectives, and facilitating mutually beneficial solutions while ensuring adherence to HR policies.
12. What is your approach to employee retention?
A: Employee retention hinges on fostering a positive work environment, offering opportunities for growth, work-life balance initiatives, and recognition programs to ensure employees feel valued and engaged.
13. How do you handle difficult conversations with employees, such as performance issues or terminations?
A: I approach such conversations with empathy, clarity, and professionalism, focusing on specific examples and actionable feedback while offering support resources and adhering to company policies.
14. How do you prioritize tasks and manage your time effectively in HR?
A: I prioritize tasks based on urgency, importance, and impact on organizational goals, utilizing time management techniques and proactive communication to manage expectations effectively.
15. Can you discuss a time when you had to deal with a difficult HR-related challenge and how you resolved it?
A: In a previous role, I addressed a breakdown in communication through town hall meetings, employee surveys, and implementing new communication channels, leading to improved engagement and productivity.
16. How do you ensure compliance with HR laws and regulations?
A: I stay informed about laws and regulations, collaborating with legal counsel, and conducting regular audits to ensure HR policies align with legal standards.
17. Can you provide an example of a time when you successfully implemented change management in HR?
A: I led a change management initiative during organizational restructuring, engaging stakeholders transparently and providing support mechanisms to navigate the transition smoothly.
18. How do you handle HR-related challenges in a multicultural environment?
A: I embrace diversity, adapting communication styles and practices to respect cultural nuances while promoting inclusivity through training programs and initiatives.
19. What strategies do you employ to promote employee engagement and motivation?
A: I create a positive work environment, fostering open communication, offering opportunities for growth, recognition, and promoting work-life balance to ensure employee engagement and motivation.
20. Where do you see the future of HR heading, and how do you plan to adapt to emerging trends?
A: I foresee HR becoming more data-driven and focused on employee experience, adapting by leveraging emerging technologies and prioritizing employee-centric strategies to promote well-being and inclusivity.
Conclusion:
To sum up, with increased competition, the Top 20 Interview Questions and Answers for Management stream are becoming important. Above all, Interviewers have stressed them time and again after getting inundated with scripted answers.
Most importantly, every Fresher needs to prove their worth during an interview. Certainly, a candidate’s way of answering determines their perception. Therefore, cvDragon gives you these Interview Questions and Answers for Management students to help you with your interview preparation.
