1. What is Fair value?

Fair value is an average of market value and book value. Book value is the value given in the balance sheet of the company. Market value is the economic value which is also called as present value.

2. How valuations are done?

Valuation can be by several approaches. For example, asset based approach, earning based approach, market value based approach etc.

3. What do you mean by profit maximization?

Profit maximization is the indicator of economic efficiency. It includes measurement of success of business decisions. It is also a source of incentives.

4. What is the meaning of value in a business?

Value in simple means is a worth of an asset, security or a business. There are certain kinds of value like Market value, Intrinsic value, Liquidation value, replacement value etc.

5. What kind of decisions a Finance Manager has to make in a firm?

The main decision is financial analysis & performance appraisal, making financing decisions, Investing decisions and dividend decisions. He plays an important role in Financial Control, Dividend Decisions, Management of Income and Financial analysis. Besides he also plays an important role in amalgamation, reconstruction, liquidation decisions, continuous audits, co-ordination in funds, preparation of cost account and maintaining adequate liquidity.

6. Give some examples of Functions of Finance?

Determination of the financial requirements of the firm, obtaining necessary finance from the necessary sources at minimum possible cost & allocation of finance in different assets. In simple terms the finance fuinctions are raising of funds, planning for funds and allocation & control of funds.

7. Suppose you are starting a business. Which kind of sources of finance you will require to start your business as you need working capital and current assets?

The arrangement of working capital and current assets can be done by short-term sources. The short term sources are trade credit, short term bank finance and also public deposits.

8. Compare the Cost of Debt Financing to Equity Financing?

Another common question, since an important part of investment banking revolves around arranging financing for companies, is, "Which is more expensive, debt or equity financing?" The answer is the cost of equity is generally considered to be higher for two main reasons. First, the interest cost of debt financing is tax-deductible. Secondly, common stock investors generally command higher premiums since they are not guaranteed returns and are in the worst position in the event of liquidation. You can possibly pick up some extra credit points by qualifying your answer by noting that increasing D/E ratios eventually results in higher costs for both debt and equity.


► Speak about specifics that relate to the position you are applying for. If you do not have specific experience, get as close as you can.
► If you are being asked this question from your employer then you can explain your experience. Tell the employer what responsibilities you were performing during your job. You can tell what programs you developed and what modules you worked on. What were your achievements regarding different programs.

I have been working with computers since 2001. I also have a degree in network support/computer repair. I have built my last 3 computers, have work with Dell as an employee. So I have around 15 years experience working with computers.

10. Behavioral Field Service Engineer interview questions:

► What makes you feel proud about your job?
► What experience in your life has taught you the most?
► What training have you had for this job?
► What have been the most significant accomplishments in your life so far?
► What do you know about us as an organisation?
► Would you say that you can easily deal with high-pressure situations?
► Why aren't you earning more money at this stage of your career?

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