CAT4MBA

These questions are based on the informations given below.

The figure below presents sales and net profit, in Rs. Crores, of IVP Ltd for the five years from 199495 to 1998-99. During this period, the sales increased from Rs.100 Crores to Rs. 680 Crores. Correspondingly, the net profit increased from Rs. 2.2 Crores to Rs. 12 Crores. Net profit is defined as the excess of sales over total costs.

Q1. The highest percentage of growth in sales, relative to the previous year, occurred in
a. 1995-96
b. 1996-97
c. 1997-98
d. 1998-99

Q2. The highest percentage growth in net profit, relative to the previous year, was achieved in
a. 1998-99
b. 1997-98
c. 1996-97
d. 1995-96

Q3. Defining profitability as the ratio of net profit to sales,
IVP Ltd. recorded the highest profitability in
a. 1998-99
b. 1997-98
c. 1994-95
d. 1996-97

Q4. With profitability as defined in question Q3, it can be concluded that
a. Profitability is non-decreasing during the five years from 1994-95 to 1998-99.
b. Profitability is non-increasing during the five years from 1994-95 to 1998-99.
c. Profitability remained constant during the five years from 1994 - 95 to 1998 -99.
d. None of the above.

ANSWERS:
1. a
2. d
3. b
4. d
5.