Management Archives

21. The marketing concept means that an organization aims the majority of its efforts at satisfying customers, at a profit.

A. TRUE

B. FALSE

Answer: Option A

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✅ The correct answer is option A.
The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

22. If flexible budget variance is $105000, actual cost is $65000 then flexible budget cost will be

A. $40,000

B. $50,000

C. $150,000

D. $170,000

✅ The correct answer is option A.
Flexible budget cost = Flexible budget variance – Actual cost
= $105000 – $65000
= $40000.

23. Under writer spread is $47500 and gross proceeds are $34000 then net proceeds are

A. $13,500

B. $81,500

C. $47,500.00

D. $34,000

✅ The correct answer is option A.
Net proceeds = Under writer spread – Gross proceeds
= $47500 – $34000 = $13,500.

24. Which of the following act represents a situation in which employment decisions are NOT affected by illegal-discrimination?

A. Fair employment

B. Legal compliance

C. Litigation Process

D. Affirmative action

✅ The correct answer is option A.
Fair employment act represents a situation in which employment decisions are NOT affected by illegal-discrimination. Illegal discrimination is defined generally as being treated differently than someone else “because of” a protected characteristic.

25. The following is (are) the key components of a business process Re-engineering programme?

A. Product development

B. Service delivery

C. Customer satisfaction

D. All of the above

✅ The correct answer is option D.
The Product development, Service delivery and Customer satisfaction are the key components of a business process Re-engineering programme.

26. The primary function of management is

A. staffing

B. directing

C. planning

D. decision making

✅ The correct answer is option C.
The primary function of management is planning. Planning is a primary function of management, hence it gets primary over other management functions. It is a continuous and never ending activity.

27. Gross proceeds of stock is $24000 and net proceeds are $35000 then under writers spread is

A. $15,000

B. $13,500

C. $16,750

D. $11,000

✅ The correct answer is option D.
Underwriters spread = Net proceeds – Gross proceeds
= $35000 – $24000 = $11,000.

28. RFP stands for ______.

A. Request for Proposal

B. Request for Process

C. Request for Product

D. Request for Prediction

✅ The correct answer is option A.
RFP stands for Request for Proposal. An RFP is a document that lists out all the requirements and needs of a project.

29. Which of the following is one of the four key elements which must be adhered to if synergy is to be achieved?

A. Efficiency

B. Competitive strategies

C. Customer satisfaction

D. Effective leadership

✅ The correct answer is option D.
Effective leadership is one of the four key elements which must be adhered to if synergy is to be achieved. Effective leadership brings together diverse people and helps them find common purpose and work towards to achieve purposeful common goals. Effective Leadership inspires and empowers people to realize their fullest potential and harness their potentials to achieve common goals.

30. Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as

A. index commitment underwriting

B. insurance underwriting

C. default risk underwriting

D. firm commitment underwriting

✅ The correct answer is option D.
Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as firm commitment underwriting. A firm commitment has three general meanings in finance, but is most known as an underwriter’s agreement to assume all inventory risk and purchase all securities for an initial public offering (IPO) directly from the issuer for sale to the public. It is also known as “firm commitment underwriting” or “bought deal.”