I agree with 5400 for the first question. Setting it up as M_N_G_M_N_T_ doesn't work because you will end up with gaps in the word, which is not allowed, because MANAGEMENT has 10 letters, not 12. for example, let's say you pick the 4th, 6th, 8th, and 10th spots for the vowels and you have: M_NAGAMENET_. So what do you do about those gaps? well, maybe you argue that all we're doing is determining the possible sequences of the letters so we can just remove the gaps. But if you remove the gaps, you get MNAGAMENET. But now you're totally screwed because without the gap, the vowels have shifted back to odd positions.
I did it the same way as baldon99, but shankar's way looks fine too.
2) How many ways can 4 people be seated in 5 chairs around a circular table?
Two ideas:
1. Pretend there is a ghost. If we're seating 4 people and a ghost, that is the same as seating 5 people, with the ghost representing the empty chair. Then it's just 5!/5=4!.
2. Pretend there are 4 chairs and 4 people. This is obviously 4!/4=3!, but now we have to pick a spot for the empty chair to go. For any of the 3! unique arrangements, it can go between persons 1 and 2, 2 and 3, 3 and 4, or 4 and 1. So we have 4 choices for where to put the empty chair. 3!*4=4!