Management Archives

1601. An economic value added method is specific type of method to calculate

A. net income

B. nominal income

C. residual income

D. residual investment

✅ The correct answer is option C.
An economic value added method is specific type of method to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company’s management team evaluates the income generated relative to the company’s minimum required return.

1602. In managerial grid, the style which focuses maximum concern of people and minimum concern of production is

A. task management

B. impoverished style

C. country club

D. team management style

✅ The correct answer is option C.
In managerial grid, the style which focuses maximum concern of people and minimum concern of production is country club. The managerial grid model (1964) is a style leadership model developed by Robert R. Blake and Jane Mouton. This model originally identified five different leadership styles based on the concern for people and the concern for production.

1603. Up-front fee which must be paid by buyer to seller is called

A. call premium

B. discount premium

C. strike premium

D. exercise premium

✅ The correct answer is option A.
Up-front fee which must be paid by buyer to seller is called call premium. Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer. The call premium is also called the redemption premium.

1604. Process of selling and buying of stocks and bonds is classified as

A. s-trade

B. b-trade

C. e-trade

D. stock trade

✅ The correct answer is option C.
Process of selling and buying of stocks and bonds is classified as e-trade. Electronic trading company designed to provide investors with a service to actively manage their portfolios and execute trades at their discretion. Trades are executed with a computer or smartphone device and are made quickly.

1605. Type of voting in which owner having half voting shares can elect board of directors is called

A. directors voting

B. half voting

C. straight voting

D. owners voting

✅ The correct answer is option C.
Type of voting in which owner having half voting shares can elect board of directors is called straight voting. Statutory voting, also known as straight voting, means that shareholders have one vote per share and that votes must be evenly divided among issues. The other shareholder voting procedure is cumulative voting, which allows votes to be weighted based on the shareholder’s preference.

1606. Ben & Jerry had four market-product strategies to expand sales. They included (1) market penetration, (2) product development, (3) market development and:

A. current customer retention

B. defensive synergy

C. diversification

D. product simplification

✅ The correct answer is option C.
Ben & Jerry had four market-product strategies to expand sales. They included (1) market penetration, (2) product development, (3) market development and (4) diversification.

1607. The difference between which two expectation standards is the zone of tolerance?

A. Desired service, adequate service

B. Professional service, adequate service

C. Desired Service, optimal service

D. Desired service, advance service

✅ The correct answer is option A.
The difference between Desired service and adequate service are two expectation standards is the zone of tolerance. The customer satisfaction will result as long as customer perception of service performance, fall in this zone of tolerance.

1608. Theory which considers change in exchange rate with fluctuations in inflation rates is classified as

A. liquidated power parity

B. purchasing power parity

C. selling power parity

D. volatile power parity

✅ The correct answer is option B.
Theory which considers change in exchange rate with fluctuations in inflation rates is classified as purchasing power parity. Purchasing power parity (PPP) is an economic theory that compares different countries’ currencies through a “basket of goods” approach.

1609. What is Kelloggs main challenge for the future:

A. To create new products for a market that is both growing and declining according to geography whilst generating enough cash to advertise and launch new products

B. To create new products for a market that is both growing and declining according to geography

C. To create new products for a market that has the same tastes, whilst generating enough cash to advertise and launch new products

D. To not become adversely affected by increased competition again and adapt to changing customer tastes

✅ The correct answer is option A.
Kelloggs main challenge for the future is to create new products for a market that is both growing and declining according to geography whilst generating enough cash to advertise and launch new products.

1610. ______ is the collection of managerial decisions and actions that determine the long-run performance of an organization

A. planning

B. goal-oriented management

C. strategic management

D. leadership

✅ The correct answer is option C.
Strategic management is the collection of managerial decisions and actions that determine the long-run performance of an organization. Strategic management is the ongoing planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Changes in the business environment require organizations to constantly assess their strategies for success.