Administrator, Author at GetMCQs

2. Purchases + opening stock – closing stock = ?

A) Amount of sales

B) Gross profit

C) Cost of goods sold

D) Net income

✅ ANSWER: C
Purchases + opening stock – closing stock = Cost of goods sold.

3. Endorsement, discounting and collection of bills of exchange is made by

A) Debtors

B) Creditors

C) Drawee

D) Drawer

✅ ANSWER: D
Endorsement, discounting and collection of bills of exchange is made by Drawer. The individual or firm that issues or signs a draft instructing the drawee to pay a specified sum of money to, or to the order of, a named person (payee), or to bearer.

34. The relationship between potential unsystematic risk and reward is given by ___________.

A) Excess return to beta ratio

B) Excess return to security

C) Excess return to security

D) Excess return to beta square ratio

✅ ANSWER: A
The relationship between potential unsystematic risk and reward is given by excess return to beta ratio. Beta Ratio refers to the efficiency in which a given filter element removes particles of a given size.

36. If marginal opportunity cost is falling, the PPF would be

A) Straight line

B) Concave

C) Backward leading

D) Convex

✅ ANSWER: D
If marginal opportunity cost is falling, the PPF would be convex. Pay Per Click curve can be convex to the origin when the opportunity cost decreases. This can happen only when less and less units are foregone of first commodity for the introduction of additional unit of another commodity. Due to increasing marginal opportunity cost. PPC becomes concave to origin.

38. In case of ________ layout, production is carried on in special purpose machine.

A) functional

B) product

C) stationary

D) combined

✅ ANSWER: B
In case of product layout, production is carried on in special purpose machine. Since machines are arranged based on the sequence of operations, mechanized equipment such as conveyor belts can be used for transporting materials. This results in significant saving of time.

12. Consumer’s surplus left with the consumer under price discrimination is

A) Maximum

B) Minimum

C) Zero

D) Not predictable

✅ ANSWER: C
Consumer’s surplus left with the consumer under price discrimination is Zero.

15. When output of earlier process is transferred at a profit to the subsequent process, it is ________.

A) inter departmental profit

B) abnormal gain

C) inter process profit

D) manufacturing profit

✅ ANSWER: C
When output of earlier process is transferred at a profit to the subsequent process, it is inter process profit. The profit associated with the transfer of goods from one process to another process is called inter-process profit.

18. An expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be

A) 2.09%

B) -6.00%

C) 17.50%

D) 6.00%

✅ ANSWER: D
Constant growth rate = Expected rate of return – Expected dividend yield
= 11.5% – 5.5% = 6.00%

21. Use of variables to signal whether strategies are effective or ineffective is classified as

A) evaluating strategy

B) performing strategy

C) warned strategy

D) weighted strategy

✅ ANSWER: A
Use of variables to signal whether strategies are effective or ineffective is classified as evaluating strategy. Strategy evaluation means collecting information about how well the strategic plan is progressing.

24. Under Immediate annuity, the premium has to be paid

A) In regular instalments

B) In lumpsum

C) Both A & B

D) None of the above

✅ ANSWER: B
Under Immediate annuity, the premium has to be paid in lumpsum. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash. Immediate annuities have several advantages, such as long-term stability, tax-deferred income, and monthly income payments for the rest of your life.

Author name: Administrator