Administrator

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

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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.

2923. Which of the following are incorrect? 1. Mutuality means funds from various individuals are combined. 2. Diversification means spreading out funds to various destinations.

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1 is correct
2 is correct
Both A & B
None of the above is correct
✅ The correct answer is D.
Mutuality means flow of resources from many to one. Diversification is a risk management technique that mixes a wide variety of investments within a portfolio.

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

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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

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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

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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.

2933. __________ influence the behavior of others through their personality, skills, or other factors.

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Opinion leaders
Direct reference groups
Indirect reference groups
Lifestyle groups
✅ The correct answer is A.
Opinion leaders influence the behavior of others through their personality, skills, or other factors. Opinion leaders are individuals or organizations that are able to influence people by their opinion.