Parties interested in knowing , accounting information or Financial condition of an organization.

The parties interested in knowing this accounting information
- The various parties interested in determining the liquidity of the
firm would be the business owners and managers, bankers, investors,
creditors and financial analysts.
Business owners and managers use ratios to chart a company's progress,
uncover trends and point to potential problem areas in a business. One can
also use ratios to compare your company's performance with others within
the industry.
Bankers and investors look at a company's ratios when they are trying to
decide if they want to lend you money or invest in your company.
Creditors are interested in the company’s short-term and long-term ability to
pay its debts.
Financial analysts, who frequently specialize in following certain industries,
routinely assess the profitability, liquidity, and solvency of companies in
order to make recommendations about the purchase or sale of securities,
such as stocks and bonds. 

the liquidity of a business firm

Procedure would you adopt to study the liquidity of a business firm.
- Liquidity is the ability of the firm to convert assets into cash. It is
also called marketability or short-term solvency. In other words, it is the
ability of the firm to meet its day-to-day obligations.
In order to study the liquidity of the firm, we need to thoroughly examine its
asset structure, mainly the current assets. The current assets, viz: stock,
debtors, bank balance and other current assets need to be seen to
determine at what rate a firm can convert these into cash. A business that
collects its accounts receivable in an average of 20 days generally has more
cash on hand than a business that requires 45 days. Similarly, a business
that turns over its inventory 15 times a year has more cash on hand than a
company that turns its inventory only 10 times a year. A business which
keeps surplus cash or an idle bank balance may be readily able to meet its
short-term or daily obligations but it is not effectively utilizing its cash flow.
Another factor to determine the liquidity is to see the profitability of the firm.
The more profitable the firm is, the more cash resources it shall have.
Last, but not the least, we use make use of certain financial ratios like
current ratio, quick or acid-test ratio, net working capital to determine the
liquidity of the firm.

Revenue Manage has to be very excellent on such skills

Role  Summary  : Revenue Manager  

Manage and optimise the Inventory and Revenue Management System (RMS) to maximize revenue performance and meet the airlines sales objectives 

Principal Account-abilities and Responsibilities : 

Revenue Management
- Develop strategy including sales structure and pricing policy to maximise the airlines revenue
- Manage and enhance the RMS 
- Identify and leverage pricing and inventory opportunities

Inventory Control 
- Manage Inventory through active monitoring of forecast load factors and adjustments of associated Bid Prices/Allocations
- Support the implementation of interline agreements and access to inventory
- Optimise revenue protection tools to maximise network revenue

Revenue Reporting 
- Sales performance analysis and reporting at route, aircraft, cabin and RBD level 
- Formulate, analyse and evaluate sales generation strategies

Role Requirements : 
- Graduate degree from a recognised university
- Good understanding of airline sales including relationship between Inventory, Pricing and Revenue
- Proven experience in airline Invenotry and Revenue Management
- Proven analytical and problem solving skills.
- Ability to handle simultaneous projects and adapt to a quickly changing environment.
- Strong written and oral communication skills.
- Strong IT skills including full suite of MS Office applications

Cloning is AN ART it is not an experience.

Question 1 ii: Why do investors add real estate in their portfolio?
Answer
The main aim of an investor, while deciding on a portfolio is to maximize
return and minimize risk of holding an asset. The total return comprises of
the periodic receipts plus change in price of the asset or capital appreciation.
The risk in investment is the chance that the realized return may be less
than the expected return.
In case of investment in real estate, the investor receives periodic receipts in
the form of rentals and the property generally appreciates over period of
time. Another reason to choose real estate in portfolio is its ability to serve
as an inflation hedge, since the owner can increase rentals during inflation.
Real estate also has the unique ability to reduce risk in the way properties
are leased. Portfolios that have followed a cash flow strategy and decided to
lock in rates in long-term leases have less risk exposure to market
movements, but they also have less inflation-hedging ability

Question 2ii: ‘Stock market indices are the barometers of the stock
market’ – Discuss?
Answer
Stock market indices are the barometers of the stock market.
These help to recognize broad trend in the market. The investor can use the
indices to allocate the funds rationally among the stocks. Technical analysts
use the indices to predict the future of market.
The Dow Jones Industrial Average (DJIA), one of the most popular stock
market indices experienced a downfall in the early stages of 2004 which was
largely attributed to an increase in the Money Supply by the Federal Reserve
in the USA . The Technical Indicator Index (TII) studies incorporating the
Short Term Index and Intermediate Term Index from the period January to
May 2004 for the American equity markets showed largely negative or
bearish trends for both the indices as they closed at 3.50 and 48.48
respectively. Whereas the short-term index is a useful predictor of equity
5
markets over the short run, the intermediate term index serves as a warning
system for trend changes of considerable magnitude

Question- What kind of relationship would you postulate between
short-run and long-run average cost curves when these are not Ushaped
as suggested by the modern theories?
Answer:
Of late it is observed from certain empirical evidence that the LAC curves are more
L-shaped rather than U-shaped. In the event where we assume that there is no
technological progress, the LAC is U-shaped but in the context of modern times
where technological revolution is inherent, the empirical studies have shown
that there is greater likelihood of prevalence of LAC to be L-shaped rather than Ushaped.
The LAC is characterized by a rapid downward slope in the early part of the
curve, whereas the curve, may remain flat or slope gently downwards in later
stages.

Ratio Analysis

Ratio analysis implies the systematic use of ratios to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial position can be determined. With the help of ratio analysis conclusion can be drawn regarding several aspects such as financial health, profitability and operational efficiency of the undertaking.

Ratio analysis is very useful in making inter-firm comparison as it helps to draw a comparison between the entities within the same industry or otherwise following the same accounting procedure. It provides the relevant financial information for the comparative firms with a view to improving their productivity & profitability.

Ratio analysis helps in intrafirm comparison by providing necessary data. An intrafirm comparison indicates relative position. It provides the relevant data for the comparison of the performance of different departments. If comparison shows a variance, the possible reasons of variations may be identified and if results are negative, the action may be initiated immediately to bring them in line.

However, in spite of being such a useful tool, it is not free from its limitations. A single ratio is of a limited use and it is essential to have a comparative study. The base used for ratio analysis viz: financial statements have their own limitations. Also, they consider only the quantitative aspects of business transactions where as there are various other non-quantitative aspects such as quality of work force which considerably affect profitability and productivity. Also, ratio analysis as a tool is also limited by changes in accounting procedures/policies.

The field of OB contribute to the effective functioning of organizations and the well being of the individual

OB is related to the individual behaviours in organizations, apart from group behaviours and behaviours in organizations. An organization is as good as its working group. An organization needs to grow continuously therefore, there is a need to keep its persons rising through following procedures they are

1. Continuous Learning : The continuous learning in individuals works substantially in the growth of the individuals. There are many ways of learning that helps individuals to grow. Learning can be termed as any permanent change in behaviour or behaviour potential that results from experience. There is need to promote functional behaviour among individuals for effective functioning of organizations, and discourages behaviour that is unfavourable to the organisations. There are different methods of learning and various means through which learning can be converted into desirable behaviour in the individuals.

2. Creating Right Perception: There is need to create right perception among individuals. Perception can be termed as process through which we select, organize and interpret inputs that are supplied to us by our sensory receptors. There are five senses in humans (eyes through sight, ears through audition, nose through smell, mouth or tongue through taste, and skin through touch) and these senses continuously gathers information from the surroundings. It is the perception that gives meaning to the various set of information’s that are gathered through these senses. The study of OB helps in creating right perception that is prime requirement for the efficiently working with people.

3. Building Positive Attitudes and Values: The building of positive attitude and values plays significant role in the growth of individuals. Attitude can be defined as long-lasting evaluation that represents an individual like or dislike for an item, group, or issues. Positive attitudes form an important element in building effective relationships. Values are the fundamental ideas that a definite form of way of survival is individual or social and is preferable to an opposite or adverse form of performing the work. Values are the base of attitudes and behaviour, therefore it is important to discover values in OB.

4. Having Personality and Emotions Compatible at Work Place: Personality is person’s unique and relatively constant model of behaviour, thoughts, and feelings. There is requirement in organisations to generate a right grouping of person and job, in order to utilize full potential of an individual. According to the provisions of the work, qualities can be also developed. Emotions are reactions which are the outcome of subjective cognitive states, physiological reactions, and expressive behaviours. Cognition is the mental behaviour related to the thought, knowledge, and memory. Proper understanding of emotions helps an individual for self-development.

5. Maintaining Stress-free Individuals and Environment: Stress is a self-motivated condition in which an individual is to deal with an opportunity, constraint, or demand related to what he or she needs and for which the result is supposed to be both doubtful and significant. With rising competition and survival, and quality becoming higher and difficult to match, stress is the administrative anxiety of modern era.

6. Keeping Individuals and Teams Motivated and providing Job Satisfaction: Motivation can be explained as the most important indescribable source of the organization. Motivation is an indirect in-house procedure that activates, guides, and maintains behavior over time. Job satisfaction is a universal approach towards one’s job. It also depends on the segregation between the amount of rewards workers receive and the amount they believe they should be given.

Organisations as well as individuals do not exist in isolation. There is constant fluctuation of environmental impact on organisation that helps in stimulating behaviour pattern within the organisation. It is important for organisation to muster flexibility for its long-term existence. The boundaries of organisations are becoming more transparent rather more fragile. Organisations are required to focus on many emerging issues so as to integrate it well with the environmental changes. Some of these are as follows:

Ø  Continuous improvement of people and process.

Ø  Integrating human factor with grand objectives of the organisation.

Ø  More emphasis on quality of products, services, and process.

Ø  Restructuring to suit requirements of service organisations, task force teams, as well as, in case of rightsizing and acquisition and merger.

Ø  Managing diversity.

Ø  Product innovation.

Ø  Managing creativity and innovations.

Quantitative Technique.

Sample Techniques

A sample is a group of units selected from a larger group (the population). By studying the sample, one hopes to draw valid conclusions about the larger group.

A sample is generally selected for study because the population is too large to study in its entirety. The sample should be representative of the general population. This is often best achieved by random sampling. Also, before collecting the sample, it is important that one carefully and completely defines the population, including a description of the members to be included.

A common problem in business statistical decision-making arises when we need information about a collection called a population but find that the cost of obtaining the information is prohibitive. For instance, suppose we need to know the average shelf life of current inventory. If the inventory is large, the cost of checking records for each item might be high enough to cancel the benefit of having the information. On the other hand, a hunch about the average shelf life might not be good enough for decision-making purposes. This means we must arrive at a compromise that involves selecting a small number of items and calculating an average shelf life as an estimate of the average shelf life of all items in inventory. This is a compromise, since the measurements for a sample from the inventory will produce only an estimate of the value we want, but at substantial savings. What we would like to know is how "good" the estimate is and how much more will it cost to make it "better". Information of this type is intimately related to sampling techniques.

Cluster Sampling

Cluster Sampling can be used whenever the population is homogeneous but can be partitioned. In many applications the partitioning is a result of physical distance. For instance, in the insurance industry, there are small" clusters" of employees in field offices scattered about the country. In such a case, a random sampling of employee work habits might not required travel to many of the" clusters" or field offices in order to get the data. Totally sampling each one of a small number of clusters chosen at random can eliminate much of the cost associated with the data requirements of management.