How to implement one-to-one, one-to-many and many-to-many relationships while designing tables?

One-to-One relationship can be implemented as a single table and rarely as two tables with primary and foreign key relationships.
One-to-Many relationships are implemented by splitting the data into two tables with primary key and foreign key relationships.
Many-to-Many relationships are implemented using a junction table with the keys from both the tables forming the composite primary key of the junction table.

What is cursors?

Cursor is a database object used by applications to manipulate data in a set on a row-by-row basis, instead of the typical SQL commands that operate on all the rows in the set at one time.

In order to work with a cursor we need to perform some steps in the following order:

Declare cursor
Open cursor
Fetch row from the cursor
Process fetched row
Close cursor
Deallocate cursor

What is Index?

An index is a physical structure containing pointers to the data. Indices are created in an existing table to locate rows more quickly and efficiently. It is possible to create an index on one or more columns of a table, and each index is given a name. The users cannot see the indexes, they are just used to speed up queries. Effective indexes are one of the best ways to improve performance in a database application. A table scan happens when there is no index available to help a query. In a table scan SQL Server examines every row in the table to satisfy the query results. Table scans are sometimes unavoidable, but on large tables, scans have a terrific impact on performance.

Clustered indexes define the physical sorting of a database table’s rows in the storage media. For this reason, each database table may have only one clustered index.
Non-clustered indexes are created outside of the database table and contain a sorted list of references to the table itself.

What is View?

A simple view can be thought of as a subset of a table. It can be used for retrieving data, as well as updating or deleting rows. Rows updated or deleted in the view are updated or deleted in the table the view was created with. It should also be noted that as data in the original table changes, so does data in the view, as views are the way to look at part of the original table. The results of using a view are not permanently stored in the database. The data accessed through a view is actually constructed using standard T-SQL select command and can come from one to many different base tables or even other views.

What is Trigger?

A trigger is a SQL procedure that initiates an action when an event (INSERT, DELETE or UPDATE) occurs. Triggers are stored in and managed by the DBMS.Triggers are used to maintain the referential integrity of data by changing the data in a systematic fashion. A trigger cannot be called or executed; the DBMS automatically fires the trigger as a result of a data modification to the associated table. Triggers can be viewed as similar to stored procedures in that both consist of procedural logic that is stored at the database level. Stored procedures, however, are not event-drive and are not attached to a specific table as triggers are. Stored procedures are explicitly executed by invoking a CALL to the procedure while triggers are implicitly executed. In addition, triggers can also execute stored procedures.
Nested Trigger: A trigger can also contain INSERT, UPDATE and DELETE logic within itself, so when the trigger is fired because of data modification it can also cause another data modification, thereby firing another trigger. A trigger that contains data modification logic within itself is called a nested trigger.

What is Stored Procedure?

A stored procedure is a named group of SQL statements that have been previously created and stored in the server database. Stored procedures accept input parameters so that a single procedure can be used over the network by several clients using different input data. And when the procedure is modified, all clients automatically get the new version. Stored procedures reduce network traffic and improve performance. Stored procedures can be used to help ensure the integrity of the database.
e.g. sp_helpdb, sp_renamedb, sp_depends etc.

What are different normalization forms?

1NF: Eliminate Repeating Groups
Make a separate table for each set of related attributes, and give each table a primary key. Each field contains at most one value from its attribute domain.
2NF: Eliminate Redundant Data
If an attribute depends on only part of a multi-valued key, remove it to a separate table.
3NF: Eliminate Columns Not Dependent On Key
If attributes do not contribute to a description of the key, remove them to a separate table. All attributes must be directly dependent on the primary key
BCNF: Boyce-Codd Normal Form
If there are non-trivial dependencies between candidate key attributes, separate them out into distinct tables.
4NF: Isolate Independent Multiple Relationships
No table may contain two or more 1:n or n:m relationships that are not directly related.
5NF: Isolate Semantically Related Multiple Relationships
There may be practical constrains on information that justify separating logically related many-to-many relationships.
ONF: Optimal Normal Form
A model limited to only simple (elemental) facts, as expressed in Object Role Model notation.
DKNF: Domain-Key Normal Form
A model free from all modification anomalies.

Remember, these normalization guidelines are cumulative. For a database to be in 3NF, it must first fulfill all the criteria of a 2NF and 1NF database.

What are cursors? Explain different types of cursors. What are the disadvantages of cursors? How can you avoid cursors?

Cursors allow row-by-row prcessing of the resultsets.

Types of cursors: Static, Dynamic, Forward-only, Keyset-driven. See books online for more information.

Disadvantages of cursors: Each time you fetch a row from the cursor, it results in a network roundtrip, where as a normal SELECT query makes only one rowundtrip, however large the resultset is. Cursors are also costly because they require more resources and temporary storage (results in more IO operations). Furthere, there are restrictions on the SELECT statements that can be used with some types of cursors.

Most of the times, set based operations can be used instead of cursors. Here is an example:

If you have to give a flat hike to your employees using the following criteria:

Salary between 30000 and 40000 -- 5000 hike
Salary between 40000 and 55000 -- 7000 hike
Salary between 55000 and 65000 -- 9000 hike

In this situation many developers tend to use a cursor, determine each employee's salary and update his salary according to the above formula. But the same can be achieved by multiple update statements or can be combined in a single UPDATE statement as shown below:

UPDATE tbl_emp SET salary =
CASE WHEN salary BETWEEN 30000 AND 40000 THEN salary + 5000
WHEN salary BETWEEN 40000 AND 55000 THEN salary + 7000
WHEN salary BETWEEN 55000 AND 65000 THEN salary + 10000
END

Another situation in which developers tend to use cursors: You need to call a stored procedure when a column in a particular row meets certain condition. You don't have to use cursors for this. This can be achieved using WHILE loop, as long as there is a unique key to identify each row. For examples of using WHILE loop for row by row processing, check out the 'My code library' section of my site or search for WHILE.

Explian different types of BACKUPs avaialabe in SQL Server? Given a particular scenario, how would you go about choosing a backup plan?

Types of backups you can create in SQL Sever 7.0+ are Full database backup, differential database backup, transaction log backup, filegroup backup. Check out the BACKUP and RESTORE commands in SQL Server books online

How to restart SQL Server in single user mode? How to start SQL Server in minimal configuration mode?

SQL Server can be started from command line, using the SQLSERVR.EXE. This EXE has some very important parameters with which a DBA should be familiar with. -m is used for starting SQL Server in single user mode and -f is used to start the SQL Server in minimal confuguration mode. Check out SQL Server books online for more parameters and their explanations.