Author name: Administrator

2921. Larger number of manager subordinates and higher level manager are termed as

activity subordinates
broader responsibility center
broader subordinates
activity ordinates
✅ The correct answer is B.
Larger number of manager subordinates and higher level manager are termed as broader responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.

275. Postdated cheques are considered as

Cash
Bank balance
Accounts receivable
Cash reserve
✅ The correct answer is C.
Postdated cheques are considered as Accounts receivable. If the postdated check was received as payment on accounts receivable, the accounts receivable balance is not reduced until the date of the check.

2924. The use of preference share capital as against debt finance.

Reduces DFL
Increases DFL
Increases financial risk
Both a and b
✅ The correct answer is A.
The use of preference share capital as against debt finance reduces DFL. A degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure.

2925. If the income elasticity is greater than one, the commodity is

Necessity item
Luxury item
Inferior good
None
✅ The correct answer is B.
If the income elasticity is greater than one, the commodity is Luxury item. Luxury goods represent normal goods associated with income elasticities of demand greater than one. Consumers will buy proportionately more of a particular good compared to a percentage change in their income.

2926. According to exercise value and option price, market value of option will be zero when

stock price is maximum
option price is zero
stock price is zero
stock price is minimum
✅ The correct answer is C.
According to exercise value and option price, market value of option will be zero when stock price is zero. The strike price is defined as the price at which the holder of an options can buy (in the case of a call option) or sell (in the case of a put option) the underlying security when the option is exercised. Hence, strike price is also known as exercise price.

2927. _________ Layout based on similarity of work.

Group
Process
Open
Closed
✅ The correct answer is A.
Group Layout based on similarity of work. Group layout is a kind of layout where persons doing similar activities or machines doing similar operations are grouped together.
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