Management Archives

171. Periodic payments of dividends are subtracted from return to stockholders to calculate

A. gain on spot contract

B. loss on spot contract

C. gain on capital

D. loss on capital

✅ The correct answer is option C.
Periodic payments of dividends are subtracted from return to stockholders to calculate gain on capital. Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.

172. Strategy effectiveness and competitive success is dependent on which of the following groups of competencies?

A. Change, planning, learning

B. Content, change, planning

C. Content, change, learning

D. Learning, planning, content

✅ The correct answer is option C.
Strategy effectiveness and competitive success is dependent on Content, change, learning groups of competencies. Strategic success requires a clear understanding of the needs of the market, and the satisfaction of targeted customers more effectively and more profitably than by competitors. Real competitive advantage implies companies are able to satisfy customer needs more effectively than their competitors.

173. Companies that perform in competitive markets using pricing approach are known as

A. independent revenue approach

B. market based approach

C. dependent revenue approach

D. cost based approach

✅ The correct answer is option B.
Companies that perform in competitive markets using pricing approach are known as market based approach. In the Market-Based Approach, the value of an asset is determined by comparing it with the market prices of recently sold similar sized assets in recent time period like a quarter.

174. STRIPS are used effectively to receive

A. One set of payment

B. Two sets of payments

C. Three sets of payments

D. Four sets of payments

✅ The correct answer is option A.
STRIPS are used effectively to receive one set of payment. STRIPS (Separate Trading of Registered Interest and Principal of Securities) are debt securities that are created through the process of coupon stripping. They are essentially traditional Treasury bonds, except that the bond’s principal (its corpus) has been separated–stripped–from its interest (its coupon).

175. An amount of available capacity other than employed capacity, to meet customer’s demand, is classified as

A. targeted capacity

B. budgeted capacity

C. recovery capacity

D. unused capacity

✅ The correct answer is option D.
An amount of available capacity other than employed capacity, to meet customer’s demand, is classified as unused capacity. Idle capacity is the remaining amount of capacity left in a company after productive capacity and protective capacity have been eliminated from consideration.

176. A practice used by different companies to reduce costs by transferring portions of work to outside provider rather than completing it internally is termed as:

A. Planning

B. Decentralization

C. Restructuring

D. Outsourcing

✅ The correct answer is option D.
A practice used by different companies to reduce costs by transferring portions of work to outside provider rather than completing it internally is termed as Outsourcing. HR Outsourcing is a process in which the human resource activities of an organization are outsourced so as to focus on the organization`s core competencies. Often HR functions are complex and time consuming that it will create difficulty in managing other important thrust areas.

177. Submitted bids in treasury bills auction consists of types which are

A. competitive bids

B. non-competitive bids

C. treasury bids

D. both a and b

✅ The correct answer is option D.
Submitted bids in treasury bills auction consists of types which are competitive bids and non-competitive bids. Treasury delivers securities to bidders who were awarded securities in a particular auction. In exchange, Treasury charges the accounts of those bidders for payment of the securities. Treasury bills are issued at a discount or at par (face amount) and are paid at par at maturity.

178. Denominations in which Eurobonds are issued are

A. $10000 and $20000

B. $5000 and $10000

C. $6000 and $11000

D. $8000 and $15000

✅ The correct answer is option B.
Denominations in which Eurobonds are issued are $5000 and $10000. Most Eurobonds are investment-grade. Denominations are stipulated as lots or pieces, which is the amount of currency of the issue of 1000, 5000, or 50,000 lots or pieces.

179. Which of the following is not a characteristic of good information?

A. Interchangeability

B. Relevance

C. Cost Effectiveness

D. Timeliness

✅ The correct answer is option A.
Interchangeability is not a characteristic of good information. Interchangeability can refer to: Interchangeable parts, the ability to select components for assembly at random and fit them together within proper tolerances.

180. In capital markets, major suppliers of trading instruments are

A. government and corporations

B. liquid corporations

C. instrumental corporations

D. manufacturing corporations

✅ The correct answer is option A.
In capital markets, major suppliers of trading instruments are government and corporations. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital. Capital markets consist of the primary market, where new securities are issued and sold, and the secondary market, where already-issued securities are traded between investors.