Business Trainee

10+ Business Trainee Interview Questions and Answers

Updated 24 Feb 2025
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Q1. What is the difference between the Sharpe Ratio and the Treynor Ratio?

Ans.

The Sharpe Ratio measures risk-adjusted return by comparing the excess return of an investment to its volatility, while the Treynor Ratio measures risk-adjusted return by comparing the excess return of an investment to its systematic risk.

  • Sharpe Ratio considers total risk (standard deviation) in the denominator, while Treynor Ratio considers systematic risk (beta).

  • Sharpe Ratio is more suitable for evaluating diversified portfolios, while Treynor Ratio is more suitable for eva...read more

Q2. What is sales What is the difference between sales and marketing

Ans.

Sales is the process of selling products or services to customers. Marketing is the process of creating awareness and interest in those products or services.

  • Sales involves direct interaction with customers to close deals

  • Marketing involves creating a brand image and promoting products or services through various channels

  • Sales is focused on generating revenue and meeting sales targets

  • Marketing is focused on building relationships with customers and creating long-term value

  • Examp...read more

Business Trainee Interview Questions and Answers for Freshers

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Q3. What is the difference between open-ended and closed-ended funds?

Ans.

Open-ended funds allow investors to buy and sell shares at any time, while closed-ended funds have a fixed number of shares and are traded on exchanges.

  • Open-ended funds issue and redeem shares based on demand from investors

  • Closed-ended funds have a fixed number of shares that are bought and sold on exchanges

  • Open-ended funds are priced based on the net asset value (NAV) of the underlying securities

  • Closed-ended funds can trade at a premium or discount to their net asset value

  • Ex...read more

Q4. What is your understanding of call and put options?

Ans.

Call options give the holder the right to buy an asset at a specified price, while put options give the holder the right to sell an asset at a specified price.

  • Call options are used when the investor believes the price of the asset will rise above the strike price before the expiration date.

  • Put options are used when the investor believes the price of the asset will fall below the strike price before the expiration date.

  • Options are contracts that give the holder the right, but ...read more

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Q5. What is your understanding of the term "compliance"?

Ans.

Compliance refers to adhering to rules, regulations, standards, or laws set by an organization or governing body.

  • Compliance involves following guidelines to ensure ethical and legal practices within a company.

  • It includes meeting industry standards, laws, and regulations relevant to the business.

  • Non-compliance can result in penalties, fines, or legal actions against the organization.

  • Examples include adhering to data protection laws, workplace safety regulations, and financial ...read more

Q6. What is deferred revenue, write its journal entry

Ans.

Deferred revenue is revenue received in advance before it is earned, resulting in a liability on the balance sheet.

  • Deferred revenue is also known as unearned revenue.

  • Journal entry for deferred revenue: Debit Cash (or Accounts Receivable) and Credit Deferred Revenue.

  • As the revenue is earned, the deferred revenue is recognized as revenue on the income statement.

  • Common examples include magazine subscriptions, annual maintenance contracts, and gift cards.

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Q7. What is sales according to you?

Ans.

Sales is the process of persuading a potential customer to buy a product or service.

  • Sales involves identifying potential customers and their needs

  • It requires effective communication and negotiation skills

  • Salespeople must be knowledgeable about the product or service they are selling

  • The ultimate goal of sales is to close a deal and generate revenue

  • Examples of sales include selling cars, insurance policies, and software subscriptions

Q8. What is the structure of callable bonds?

Ans.

Callable bonds are bonds that can be redeemed by the issuer before the maturity date.

  • Callable bonds give the issuer the right to call back the bond before the maturity date.

  • Investors receive a premium for accepting the risk of early redemption.

  • Callable bonds typically have a call schedule outlining when the issuer can call back the bond.

  • Examples of callable bonds include corporate bonds and municipal bonds.

Q9. What is marketing according to you

Ans.

Marketing is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

  • Marketing involves identifying customer needs and wants

  • Developing products or services to meet those needs and wants

  • Promoting those products or services to potential customers

  • Selling the products or services to customers

  • Building and maintaining relationships with customers

  • Examples include advertising, public relations...read more

Q10. What is your thoughts on life insurance?

Ans.

Life insurance provides financial protection for loved ones in case of unexpected events.

  • Life insurance is important for providing financial security to dependents in case of the policyholder's death.

  • It can help cover funeral expenses, outstanding debts, and provide income replacement for beneficiaries.

  • There are different types of life insurance policies such as term life, whole life, and universal life.

  • Premiums for life insurance are based on factors like age, health, and co...read more

Q11. Basic difference between life insurance and mutual fund

Ans.

Life insurance provides financial protection in case of death, while mutual funds are investment vehicles that pool money from multiple investors.

  • Life insurance provides a lump sum payment to beneficiaries upon the death of the insured individual.

  • Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

  • Life insurance is primarily for protection against financial loss due to death, w...read more

Q12. how will you deal with an angry customer

Ans.

I will listen to their concerns, empathize with them, apologize for any inconvenience, and offer a solution to resolve the issue.

  • Listen actively to understand the customer's concerns

  • Empathize with the customer by acknowledging their emotions

  • Apologize for any inconvenience caused, even if it wasn't directly your fault

  • Offer a solution to resolve the issue, such as a refund, replacement, or discount

  • Stay calm and professional throughout the interaction

Q13. What is life insurance?

Ans.

Life insurance is a financial product that provides a lump sum payment to beneficiaries upon the insured person's death.

  • Provides financial protection for loved ones in case of the insured's death

  • Can help cover funeral expenses, outstanding debts, and provide income replacement for dependents

  • Premiums are paid regularly to maintain coverage

  • Different types include term life, whole life, and universal life insurance

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