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 is 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 fumble 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:
- 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 memorise them.
MBA 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 step process:
- Firstly, 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 premium and compensation is 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 is Cost Accountancy and its application?
A: Cost Accountancy is the combination of costing and cost accounting. Moreover, here the data gets classified, 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 does 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 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 correct cost analysis of by 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 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 bank’s 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
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 colored bank models. Excel Spreadsheets make it easy to understand translating inputs into outputs. A good financial model includes error checks and ensures the model works correctly.
Similarly, like sheet audits, checking for 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 in a professional manner. 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 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 for a long-term career.
MBA 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 them 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:
- Value proposition
- Call-to-action message
- Delivery method
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 service and stimulates desire for purchases.
9. What does CRM mean for businesses?
A: CRM is a technology for managing consumer relationships and interactions. It also measures 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 get 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 that dissolves 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 involves 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 is applicable for 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 Offline Media is 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, it’s important that marketing and branding messages 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. Which are the different ways to reach out to target audiences?
A: Reaching out to the target audience requires these strategies:
- 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: An interviewer tests audience research insight by asking this question. So, students should understand that Social Listening is important for any marketing strategy.
Moreover, brands analysed it for communicating on products and services on social media.
20. Why did you choose Marketing?
A: With this question, the Interviewer tests your preparedness to take on a Marketing role. Avoid saying that you chose it for so and so reasons. But, elaborate on your knowledge and highlight the benefits of working in this sector.
Communicate any USPs that will help you achieve professional goals. Further, state why you chose Marketing and how you’ll contribute to the company’s growth. Consequently, if you’re a Fresher, mention any relevant experience related to Marketing.
MBA in Human Resources
1. How are you today?
A: Often, Hiring Managers ask this question to set the mood and environment for an interview. So, no matter what your day’s experience has been, positively answer it with a smile and keep it relevant.
Consequently, keep it short and simple. Further, you can say something like: “I am doing great, thank you. It’s good to be here.”
2. What are the things you can tell about yourself?
A: This is one of the first few questions that HR Managers ask candidates. However, even if it sounds simple, it puts many candidates on the spot.
So, you can explain a summary of yourself to get started. But, in a challenging situation like an interview, stay composed and calm. Moreover, analyse and take cues on what your interviewer gets interested in. Additionally, keep in mind to not sound scripted. Therefore, articulate your sentences properly and pronounce them with emphasis.
3. How will you manage work pressure?
A: Most unaware candidates might say – “I can work under work pressure” or “I can deal with work-related stress“. However, saying them is pretty vague. So, answer this question by giving practical examples of how you’ve handled stress.
For instance, if you were level-headed, demonstrate situations under which you worked under pressure. Additionally, make it dynamic. Likewise, if you managed them and completed tasks within deadlines.
4. Are you comfortable working with rotational shifts or are you open to relocation?
A: This is a seldom asked question in interviews of IT companies like TCS, CTS, Wipro or Infosys.
So, answer this question with an affirmative “Yes” to increase your chances of getting the job. However, say it only if you are comfortable relocating or working with shifts. Additionally, mention the name of the place near which you want to work.
5. Why do you want to work for us?
A: This is a common HR interview question. It helps Interviewers understand if you know the job profile’s requirements. Additionally, it helps them know if you can be a suitable candidate for the role.
Therefore, explain your intent behind choosing the company and that particular role. Moreover, convince the Interviewer that you are a good fit for this role.
Further, you can explain and highlight your best qualities that sync well with the job role. Consequently, talk about your past projects if it’s similar to the role’s requirements. As a result, this is a great opportunity to talk about your present and future career aspirations. Research the company for maximum effectiveness.
6. What are your salary expectations?
A: It’s indeed a tricky question. So, if you are a Fresher, never quote the exact amount that you want on the Offer Letter. However, you can refer to a range in which you wish to start with. Further, you can ask the Recruiter about hikes that the company offers. Subsequently, ask about annual salary appraisals for employees but do not quote the amount.
7. What is your aim in life?
A: This answer needs to be on point and practical. So, speak about your vision in life and be straightforward with what you wish to convey. Consequently, ensure that you appear as a goal-oriented person and express your confidence.
For instance, say something like: “At present, I want to be a part of the company to enrich my real-world skills. Further, I want to take on new challenges. So, I want to apply my knowledge and skills to contribute to your organisation’s growth and success.”
8. Do you consider yourself a Team Player?
A: An Interviewer knows your ability to work and collaborate together through this. So, answer this question with optimism. Moreover, convince the Interviewer to believe you will fit well with the assigned team. Moreover, express your intentions for contributing to the company.
For instance, you can say something like: “Yes, I do consider myself an excellent team player. I’ve been lucky enough to work both as an individual contributor and as a part of the teams in my college or institute. I am fully aware of what this role demands and I can handle it well with minimal supervision.“
9. What is your work ethic?
A: HRs ask this question to judge the employee you are and if you are a professional towards work commitment. It divulges whether you’re disciplined, organised and well-behaved.
So, focus on your core strengths and posit them as your work ethic. You can say that, “Though I’m a fresher, I’ve always organised and planned my schedules. Even during my academic days, I was a disciplined student. I plan my schedules and follow them diligently.”
10. How will you deal with criticism?
A: This question judges your attitude toward feedback or criticism and how you react. Answer this question and be open to constructive criticism or feedback. Additionally, exude confidence but don’t come off as stubborn or ignorant. So, be tolerant toward accepting criticism.
11. What would you rate yourself on a scale of 1 to 10?
A: As a rule of thumb, do not convey the message that you are perfect and there’s no scope for improvement. However, do not sound overconfident but remain in the good graces of the interviewer.
For instance, say something like: “On a scale of 1 to 10, I will rate myself an 8. The reason for this is that I acknowledge that I’m not perfect. I believe upskilling is essential for improving both personally and professionally. Therefore, one should always have the interest to learn and grow.”
12. How will you handle risks?
A: Interviewers ask this question to determine how you manage risks using your wisdom. Experimenting is great to learn and encourages new ideas. Back up your comments or observations with good examples of how you did it earlier.
For example, “During a project, there was a situation where we learnt new modules to reduce risks. Additionally, we also learnt experimentation and created backup plans.”
13. What are some of your future goals?
A: This is an interview question that is common in MBA fresher interviews. The Interviewer asks this question to better understand the candidate’s goals. It also gives an impression for how long they are going to serve for a company.
So, match your answer with the employer’s expectations and specify your intentions. Keep it relevant further to maximise your chances of getting hired.
14. What is your biggest professional achievement?
A: Hiring Managers ask this question to get an idea about how well a candidate’s skills are. It also gives an impact of how they might be for the vacancy or post offered. So, answer with confidence and state examples of your significant accolades or achievements.
Further, quote a job-specific achievement or a collection of successes preceding it. However, present all the achievements as convincing to appear as a suitable candidate.
15. What Is Human Resource Management?
A: Human Resource Management (HRM) focuses on recruitment, management and directing employees. Further, it deals with issues like compensation, hiring, management, benefits, communication and training.
Therefore, it requires a strategic and comprehensive approach to managing a workplace environment. Consequently, effective HRM enables employees to contribute and boost productivity for company objectives.
16. What Is a Management Interview?
A: Interview taken by a Hiring Manager, Managing Director or Vice President of an organisation.
Further, during this 5-10 minutes discussion, an applicant introduces themself and their skills. Consequently, the HR Manager or Recruiter cross-questions applicants and decides their eligibility.
17. Why did you choose HR as your specialisation?
A: It’s an analytical question for which you can explain why you chose HR as your specialisation. However, if you’re passionate about the HR position then be honest and forthcoming.
For example, you may say: “I am a person who enjoys interacting with different levels of people. I believe this is a basic requisite for any HR Personnel. In addition, to that I can excel in people management. Therefore, HR is a field where I want to utilize my skills and contribute further.”
18. What does the ESI scheme mean?
A: ESI is a social security scheme that provides social protection to workers. Moreover, it concerns sickness or death due to workplace injury or occupational diseases. Likewise, it’s tailored for the health insurance of workers and provides medical facilities. Further, it guarantees cash benefits and compensations for wage losses.
19. What is the Notice Period?
A: During employee resignation or contract termination, the Notice Period comes into effect.
According to the mandate, employees work for an additional period of 7 to 15 days to make sure work is not hampered. So, the organisation does not face any type of problems in their absence. Certainly, Notice Period enables an organisation to function smoothly.
20. What Is your philosophy towards work?
A: It is a sensitive question that requires a logical answer. So, as an employee, answer if you have a positive attitude towards work. Further, indicate your intention to collaborate with teammates and provide guidance as needed. Additionally, maintain a fundamental work philosophy and abide by company policies.
To sum up, with increased competition, the Interview Questions and Answers for Management stream is becoming important. Above all, Interviewers have stressed on 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 this Interview Questions and Answers for Management students to help you with your interview preparation.