Management Archives

431. In financial markets, STRIPS are also classified as

A. treasury KIBOR notes

B. treasury KIBOR bonds

C. treasury zero coupon bonds

D. treasury LIBOR bonds

✅ The correct answer is option C.
In financial markets, STRIPS are also classified as treasury zero coupon bonds. A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.

432. A firm’s reaction to a customer complaint that results in customer satisfaction and goodwill is called a:

A. service recovery paradox

B. service recovery

C. critical incident

D. moment of truth

✅ The correct answer is option B.
A firm’s reaction to a customer complaint that results in customer satisfaction and goodwill is called a service recovery. Service Recovery is a theory that suggests that a customer who has a bad experience and receives a prompt, effective response to their issues will be a more loyal customer, than a customer who had no bad experience at all.

433. _____________ include investigation of an issue or problem or Calculation of financial ratios of a company.

A. Formal report

B. Analytical Letter Reports

C. Scientific Reports

D. Informational Letter Reports

✅ The correct answer is option B.
An analytical report is a type of a business report that uses qualitative and quantitative company data to analyze as well as evaluate a business strategy or process, while empowering employees to make data-driven decisions based on evidence and analytics.

434. Which one of the following is not a form of non-price competition?

A. Branding

B. Innovation

C. Advertising

D. None All of the above increase non-price competition

✅ The correct answer is option D.
Non-price competition refers to competition between companies that focuses on benefits, extra services, good workmanship, product quality.

435. Security systems based on physical or behavioral traits are called ________________.

A. Smart cards

B. Tokens

C. Firewalls

D. Biometrics

✅ The correct answer is option D.
Security systems based on physical or behavioral traits are called Biometrics. Biometric technologies are automated methods for verifying or recognising the identity of a living person based on physical or behavioural characteristics. By using biometric technologies in all aspects of ITS security we can enhance security, but safety and protection as well.

436. Acquisitions often fail to deliver the successes that were predicted prior to acquisition. What is the main reason for this failure?

A. Premium price

B. Poor strategic leadership

C. Goodwill

D. Synergy

✅ The correct answer is option B.
Acquisitions often fail to deliver the successes that were predicted prior to acquisition. Poor strategic leadership is the main reason for this failure. Strategic leaders act in ways that manage the tension between success in daily tasks and success in the long term. They facilitate other’s strategic actions, too, by providing a balance of direction and autonomy, of learning from actions and rewarding appropriate risk-taking.

437. If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is

A. shift left

B. shift right

C. upside movement

D. downside movement

✅ The correct answer is option C.
If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is upside movement. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied. The Federal Reserve can alter the equilibrium interest rate by adjusting the supply of money. The demand for money and supply of money can be graphed to determine the equilibrium interest rate.

438. The oldest type of organization__________.

A. functional organization

B. line organization

C. matrix organization

D. committee organization

✅ The correct answer is option B.
The oldest type of organization is line organization. Line organization structure is the oldest and simplest form of organization. In these organizations, a supervisor exercises direct supervision over a subordinate. Also, authority flows from the top-most person in the organization to the person in the lowest rung.

439. Type of option that can be exercised before date of expiration as well as on expiry date is classified as

A. Australian option

B. American option

C. European option

D. Canadian option

✅ The correct answer is option B.
Type of option that can be exercised before date of expiration as well as on expiry date is classified as American option. An American option is a version of an options contract that allows holders to exercise the option rights at any time before and including the day of expiration. Another version or style of option execution is the European option that allows execution only on the day of expiration.

440. An example of direct engineered cost is

A. indirect material cost

B. direct material cost

C. direct labour cost

D. indirect labour cost

✅ The correct answer is option B.
An example of direct engineered cost is direct material cost. Direct material cost is the cost of the raw materials and components used to create a product. The materials must be easily identifiable with the resulting product (otherwise they are considered to be joint costs).