Top 21 Goldman Sachs Interview Questions In 2022 [With Answers]

Headquartered in New York City, Goldman Sachs is a financial services giant that has interests in multi-disciplinary fields of finance and investment banking. The legacy of this prestigious institution is more than 150 years old, which is makes it the world’s biggest investment banking enterprise in the world by revenue. It is no wonder, that the interview sessions of such a renowned and esteemed company, are quite tricky and challenging. Thus, interested candidates must put their best foot forward and prepare from the frequently asked interview questions. This article gives you 21 best must-read interview questions for Goldman Sachs.

21 Best Interview Questions To Study

1. What Are The Various Ways In Which A Business Organization Can Raise Funds?

When appearing for an interview session with Goldman Sachs, you got to have a basic knowledge of finance and associated terminology. There will always be questions from this sphere.

Sample Answer

Sir, finance is the blood of every business organization and is required to conduct the business operations smoothly. A company can raise funds using a variety of sources such as:

  • Equity financing: The company can issue common stocks at a issue price, after correctly determining the premium on the face value.
  • Debt Financing: The company, instead of diluting its ownership, can issue debt capital in the form of debentures and bonds, which carry a fixed interest obligation calculated at a pre-determined coupon rate.
  • Private Placement: Equity or debt, instead of raising funds from public, can be issued to large institutional investors and private equity firms so as to raise funds for the business.

2. Explain The Concept Of Under-provisioning.

When appearing for an interview session with Goldman Sachs, you got to have a basic knowledge of finance and associated terminology. There will always be questions from this sphere.

Sample Answer

Sir, every financial institution engaged in public financing, has to create a provision for all its doubtful assets, the recovery of which is doubtful and there is a greater likelihood of loss of revenue. Provisions being a charge on the profits, reduces the net profits of the company, which not only decreases its reputation but also makes it ineligible for raising debt at a cheaper rate. In order to protect itself from such a situation, an organization prefers to create lesser provisions, which is unethical and illegal.

3. Assume A Situation In Which You Are Being Accused Of Stealing Company’s Equipment. How Would You React?

This is a situation reaction test in which you are presented an uncomfortable situation. You have to deal with it, in the most innovative and calm manner. Never lose your temper and composure, while answering.

Sample Answer

Sir, in our country a person is innocent until proved guilty. You can accuse someone, that is your choice, but you got to have evidence to prove it. If I ever find myself in such an embarrassing situation, I will always confront it, and would demand for the CCTV footage, or maybe interrogate eye witnesses all by myself. When you are true, you must stand by it, and I would do the same. Furtjher, be assured I would never find myself in any such situation.

4. Name A Few Sectors In Which Our Company Operates.

This question tests how much you know or is aware of Goldman Sachs.

Sample Answer

Sir, this company primarily operates in the various fields of finance, such as:

  • Investment Banking
  • Wealth Management
  • Asset Management
  • Derivatives, Fixed Income and Equity Management

5. Share A Time When You Received Negative Feedback At Your Workplace.

Critcims is a part ad parcel of every corporate job. You cannot always deliver an amazing performance, no matter how hard you try. Maybe the law of averages have to play their part. Whatever the reason may be, everytime you perform badly, you will get a negative feedback that must be handled positively.

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Sample Answer

Sir, critics are quite common, and sometimes even after delivering a stellar performance, you can get a negative feedback. I received one during my previous employment with ABC Finance Corporation. I was working on an investment project, wherein one of our clients asked us to analyze the best way (that suits their business model) to move cross border and perform business. I analyzed everything, but left “export”, as they personally informed me, that they did not want to move through that route. However, I got criticism for not including it.

6. Not Every Company Is Robust In A Challenging Financial Space. Share When We Faced Financial Crisis and How We Resolved It?

This question tests your basic historical knowledge about the company. Golman Sachs faced the financial crisis in the depression of 2007-08, after the fall of Lehmann Brothers. The major cause for this is attributed to the mortgage crisis that unfolded in the United States during that period. However, United States Department of Treasury acted as a knighthood and saviour for the company, and extended a 10 billion bail out.

7. How Comfortable Are You In The Rotational Shifts?

It is common for the established companies like Goldman Sachs to work 24 hours, given their work load and number of clients. This translates into rotational shifts for its employees, especially for those belonging to the middle and lower level. This is a common expectation from the interviewers and you must answer it positively.

8. We Have A Diverse Background. How Does It Impact You?

Goldman Sachs is a multi-national corporation and employs people from diverse backgrounds. Even in their headquarters you will certainly see, Europeans, Asians, Africans and people from other ethnicities working together in co-operation and harmony. You can list as many positives as you want, but refrain from mentioning any negative.

9. Describe A Situation When You Showed Commitment At The Work Place.

Commitment is a necessary and important business trait that is expected by the employers. This question requires you to share a real life situation, in which you either accepted tough challenges voluntarily, or maybe worked for longer than usual hours. Be real, and give a genuine reply.

10. Who Was The Founder Of Goldman Sachs, When Were We Established and Where Are Our Headquarters?

No matter in which you organization you get interviewed, there will be a few questions that will enquire about the historical facts of the company. Hence, always make it a point to read these facts, which are easily available online. The highly successful Goldman Sachs was established in the year 1869, by Marcus Goldman. The company maintains its headquarters in New York City.

11. Describe Your Best Boss and Worst Boss.

This is a personality evaluating question. We all work with different employers during our professional career and meet several bosses or seniors. Some of them are an instant addition into our good books, however, some just fail to make the cut. The reasons or the basis for such seggregation is the primary requirement of an interviewer through this question. You can always explain this question by narrating any real incident, preferably related to workplace.

12. How Can You Handle Work Related Failure and Cope With It?

It is inevitably true that not everyone can achieve success every time. He or she ought to fail at some point in their life, which might hurt and take away the confidence. Thus, an interviewer is interested din knowing the various techniques or strategies that you adope to manage your work related failure.

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13. Hardwork and Consistency At The Workplace Is Hard To Achieve and Is Stressful. How Do You Manage Your Work Related Stress?

Goldman Sachs, like every other organization, operates in a challenging business environment. This stress of operations is ultimately transferred upon the employees of the company and they have face a hectic situation. Stress management is a common expectation from the business organizations and thus, an interviewer is always interested in knowing the various strategies that you adopt to manage your stress levels.

14. How Do You Prefer To Work – In A Team or Individually?

It is common for established companies like Goldman Sachs to divide and distribute their workforce in separate teams on the basis of their work experience, education level and nature of tasks involved. Thus, a preferred answer for this question is “team”, however, since you are being offered a choice, you can certainly choose “individually” too. Make sure that you are able to justify your selection and able to give complete reasoning.

15. Being In An Established Organization Like Goldman Sachs, You Will Be Required To Perform Multiple Tasks In A Single Working Day, Owing To The Heavy Work Load. How Do You Prioritize?

Working in Goldman Sachs, you will ke kept busy with the work. There will always be multiple tasks that need to be completed in a single day. A time bound completion of these tasks is possible only when you have a developed prioritization technique in your pocket. Usually, employees prefer to arrange and order their tasks on the basis of difficulty level of the tasks or on the basis of time consumption. Whatever, you choose, explain it using any real life on-job experience.

16. Why You Want To Work With Us?

Candidates apply to multiple job vacancies simultaneously, so as to increase their chances of selection. Through this question an interviewer wants to know your level of commitment and seriousness towards the business organization. The best way to prepare content for this question is by browsing the official website of the Goldman Sachs, and noting all the relevant information, such as historical facts, achievements, and its unique propositions. Draft a structured answer and always include your personal interests as well.

17. Goldman Sachs For The Past 150 Years, Is Delivering Quality Services. How Do You Interpret The Term “Quality”?

This is a word based interview question in which you are required to interpret the term “quality”. We all are different and have different attributes, behavior and approach. This creates different interpretations of “quality” and an interviewer expects you to share your own version. Usually, “quality” is achieved when an organization is able to deliver a phenomenal performance that not only satisfies the customers of a company but also meets the established benchmarks and criteria.

18. What Are Your Three Major Weaknesses?

This is a common interview question in which you are being enquired for your weaknesses. It is true that this question is negative, and would definitely create a negative impression. But, there is no egress, and you have to attempt this question in the interview room. However, you can certainly reduce its negativity, if not completely eliminate it. In order to do so, read out the job description completely and note down all the requirements of the company. After this, try to share those weaknesses that relate to you but do not conflict with the requirements of the job.

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19. What Are Your Salary Expectations?

It is common for the interviewer to ask this question during an interview session itself. As an ideal response to this question, always share a salary figure that corresponds to or matches the industry average. For this you will have to research your industry, and see what other professionals, performing similar roles are being paid by their employers. Calculate a mean salary and base your salary expectation on it.

20. When Can You Start?

This a non-technical interview question, wherein you are requested to share a true date of your start. This question in no way guarantees your selection, and is only asked to enuire about your availability. Hence, always mantain your focus and never interpret this question in that way.

21. Do You Have Any Questions For Us?

No matter if it is an interview session of Accenture, or maybe Morgan Stanley, this will always be the last question of an interviewer. Through this question, an interviewer wants to know about all your doubts and apprehensions that you might be having in regards to the company. Always attempt this question and ask a few relevant counter-questions from the interviewer. For a better understanding please refer to the model questions mentioned below:

Model Questions

  • What are the various incentives and allowances that the company offers to its full-time employees?
  • What are the anti-harassment policies that are implemented by the company to protect its employees from possible instances of ragging, teasing, and harassment at the workplace?
  • Please throw some light on the job security offered by this company.

References

  1. https://www.sciencedirect.com/science/article/pii/S1546144021003227
  2. https://www.emerald.com/insight/content/doi/10.1108/IJLSS-10-2020-0176/full/html

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