1. What do you mean by watered capital?

Watered capital is the value of the eroded capital on account of a company continuously
incurring losses. The accumulated losses and other intangible assets are viewed as a
percentage of the paid-up capital and watered capital is the residual part of the paid-up
capital after accounting the amount of losses.
2. Scrip dividend?
An unusual type of dividend involving the distribution of promissory notes that calls for some
type of payment at a future date. Scrip dividends generally signal that a firm is short of cash.
3. Distinguish between risk and uncertainty.
Risk can be quantified and measured; there is no known way of ascertaining uncertainty. Risk
is thus closer to probability where you know what the chances of an outcome are.
4. What is a pop-up survey?
Website Collectors allow you to collect survey responses from people who visit a page of your
website. You can embed a survey into a webpage or have the survey or a survey invitation
pop up when people visit a specific page.
5. Differentiate between Tax planning and Tax management?
The Objective of Tax Planning is to minimize the tax liability
Tax Management deals with filing of Return in time, getting the accounts audited, deducting
tax at source etc.
Tax Planning helps in minimizing Tax Liability in Short-Term and in Long Term.
Tax Management helps in avoiding payment of interest, penalty, prosecution etc.
6. What is cost driver?
A cost driver is the unit of an activity that causes the change in activity's cost. Examples: In
marketing, cost drivers are Number of advertisements, Number of sales personnel etc
7. What is Activity based Costing?
Activity-based costing (ABC) is a costing methodology that identifies activities in an
organization and assigns the cost of each activity with resources to all products and services
according to the actual consumption by each.
8. Define Beta.
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the
market as a whole.
9. What is P/E ratio?
The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market
price per share divided by annual earnings per share.
10.Capital Rationing?
The act of placing restrictions on the amount of new investments or projects undertaken by a
company. This is accomplished by imposing a higher cost of capital for investment
consideration or by setting a ceiling on the specific sections of the budget.
11.Difference between acquisition and take over?
takeover is used to reference a hostile takeover where the company being acquired is
resisting. In contrast, acquisition is frequently used to describe more friendly acquisitions, or
used in conjunction with the word merger, where both companies are willing to join together.
12.What is the difference between future contract and forward contract?
futures contracts are exchange-traded and, therefore, are standardized contracts. Forward
contracts, on the other hand, are private agreements between two parties and are not as rigid
in their stated terms and conditions.
13.What is swaptions?

The option to enter into an interest rate swap. In exchange for an option premium, the buyer
gains the right but not the obligation to enter into a specified swap agreement with the issuer
on a specified future date.