CMAT flashcards

31 cards. Read the term and the definition here. The deck at the top of this page is optional.

Compound interest formula

Amount A = P(1 + R/100)^T, so compound interest equals A minus P. For half-yearly compounding, use R/2 and 2T; for quarterly, R/4 and 4T.

Successive percentage change

Two successive changes of a percent and b percent produce a net change of a + b + (ab/100) percent. Enter a decrease as a negative value, so a 20% rise then 20% fall gives −4%.

Break-even quantity

Fixed costs divided by contribution margin per unit, where contribution margin equals selling price minus variable cost per unit. It is the sales volume at which total revenue equals total cost.

Pie chart degree share

A component's share of a pie chart equals (component/total) × 360 degrees. Equivalently, 1 percent of the total occupies 3.6 degrees of the circle.

Train crossing a platform

When a train of length L crosses a platform of length P at speed s, the distance covered is L + P. Convert km/h to m/s by multiplying by 5/18.

Combination versus permutation

nCr counts selections where order does not matter and equals n!/[r!(n − r)!]. nPr counts arrangements where order matters and equals n!/(n − r)!.

Independent events probability

For independent events A and B, the probability of both occurring is P(A) × P(B). The probability that A does not occur is 1 − P(A).

Syllogism particular premises

Two particular premises can never produce a universal conclusion, and two negative premises produce no valid conclusion at all. Draw a Venn diagram before choosing an option.

Facing south left-right reversal

In a linear arrangement, a person facing north has left on the observer's left. A person facing south has left on the observer's right, so left and right reverse.

Circular arrangement facing centre

When people sit in a circle facing the centre, each person's left-hand neighbour lies clockwise from them. If they face outward, left and right reverse.

Letter position coding

Assign A = 1 through Z = 26. Coding puzzles often use shifts, reverses (A = 26, Z = 1) or mirror pairs such as A-Z and B-Y; test shift patterns first.

Blood relation tree method

Sketch a family tree, marking gender explicitly, before answering. Terms like 'maternal uncle' and 'paternal aunt' encode which parent's sibling is meant.

Assumption versus conclusion

An assumption is an unstated premise the author must accept for the argument to work. A conclusion must follow from the stated evidence alone, without added general knowledge.

Cause and effect validity

A cause-and-effect pair is valid only when one event plausibly produces the other. Mere co-occurrence, or a shared third factor, makes the two statements independent.

Main idea versus detail

The main idea summarises the whole passage's central claim. An option that is factually true but covers only one paragraph is a supporting detail, not the main idea.

Inference from passage

An inference is a statement necessarily supported by the text, though not stated outright. Importing outside facts or plausible guesses turns it into an invalid assumption.

Author tone vocabulary

Tone options include critical, analytical, objective, satirical, nostalgic, cautionary and ambivalent. Choose the one matching the author's attitude, not the passage's subject matter.

Para-jumble opening sentence

The opening sentence is usually independent, introduces the subject and contains no referring pronouns. Link remaining sentences by pronouns, conjunctions and repeated nouns.

Misplaced modifier error

A modifier must sit immediately next to the word it describes. In 'walking down the road, the tree was huge', the tree appears to be walking, so the sentence is wrong.

Fewer versus less

Use 'fewer' with countable plural nouns, as in fewer students. Use 'less' with uncountable nouns, as in less water. 'Much' pairs with uncountable nouns and 'many' with countable ones.

Constitution adoption dates

India's Constitution was adopted on 26 November 1949 and came into force on 26 January 1950. The 42nd Amendment, 1976, added socialist, secular and integrity to the Preamble.

Writ jurisdiction articles

Article 32 lets the Supreme Court issue writs for enforcement of Fundamental Rights. Article 226 gives High Courts the same power, extended to other legal rights.

RBI inflation target

India's flexible inflation-targeting framework sets a 4 percent consumer price inflation target with a tolerance band of plus or minus 2 percent, so 2 to 6 percent.

GDP expenditure identity

GDP at market prices equals private consumption plus investment plus government spending plus net exports, where net exports are exports minus imports.

Fundamental Duties article

Article 51A of the Constitution lists the Fundamental Duties of citizens. They were added by the 42nd Amendment in 1976 on the recommendation of the Swaran Singh Committee.

Tropic of Cancer in India

The Tropic of Cancer passes through eight Indian states, including Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand, West Bengal, Tripura and Mizoram.

Lean startup build-measure-learn

The lean startup loop is build, measure, learn. Each iteration tests a key assumption with a minimum viable product, then uses validated learning to decide whether to pivot or persevere.

Minimum viable product purpose

An MVP is the smallest build that tests the riskiest assumption with the least effort. Its goal is validated learning about customers, not a feature-complete product release.

Business Model Canvas blocks

The canvas has nine blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners and cost structure.

Equity dilution formula

Equity dilution equals new shares issued divided by total shares outstanding after the issue. A founder holding 60 of 100 shares who issues 50 new ones retains 40 percent.

Indian patent term

In India a patent protects an invention for 20 years from the filing date, subject to renewal fees. Copyright in literary works lasts the author's life plus 60 years.