Management Archives

441. Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as

A. in-source cost

B. opportunity cost

C. offshore cost

D. outsource cost

✅ The correct answer is option B.
Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as opportunity cost. Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services.

442. Which of the following statements best describes scenario planning?

A. Exploring future possibilities by looking at potential outcomes from particular causes and seeking to explain why things might occur

B. Considering three likely scenarios for future developments, and devising a strategy according to the likeliest outcome

C. Helping managers come to terms with the threats and opportunities within the company by devising a possible scenario to eliminate the threats and capitalize on the opportunities

D. Planning the best way to secure the scenario outcome that would benefit the company most

✅ The correct answer is option A.
Exploring future possibilities by looking at potential outcomes from particular causes and seeking to explain why things might occur best describes scenario planning. Scenario planning is making assumptions on what the future is going to be and how your business environment will change overtime inlight of that future. More precisely, Scenario planning is identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business.

443. In public corporation, claim of fundamental ownership is called

A. common stock

B. fundamental stock

C. corporate stock

D. claimed stock

✅ The correct answer is option A.
In public corporation, claim of fundamental ownership is called common stock. Common stock is a security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.

444. Cost of new machine is considered as

A. relevant

B. bunk

C. dispose value

D. sunk

✅ The correct answer is option A.
Cost of new machine is considered as relevant. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions.

445. ________ is a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli.

A. Image

B. Personality

C. Beliefs

D. Heredity

✅ The correct answer is option B.
Personality is a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. Personality in marketing involves looking into the characteristics of patterns for the way that people will feel, behave and think as they are viewing an advertisement or accessing a page. Personality scientists have seen relationships between the way that people behave, their lineage and more.

446. The three stages of strategic management are

A. strategy formulation, strategy implementation, and strategy execution

B. strategy formulation, strategy execution, and strategy assessment

C. strategy formulation, strategy implementation, and strategy evaluation

D. stratify assessment, strategy execution, and strategy evaluation

✅ The correct answer is option C.
The three stages of strategic management are strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation is the process of establishing the organization’s mission, objectives, and choosing among alternative strategies.

447. Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as

A. non participating preferred stock

B. participating preferred stock

C. non cumulative preferred stock

D. cumulative preferred stock

✅ The correct answer is option D.
Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as cumulative preferred stock. Cumulative preferred stock is a type of preferred stock with a provision that stipulates that if any dividend payments have been missed in the past, the dividends owed must be paid out to cumulative preferred shareholders first.

448. The concept Core competence was developed by

A. Schwiz Marker

B. Peter Schiffman

C. Prahalad and Gary

D. None of the above

✅ The correct answer is option C.
The concept Core competence was developed by Prahalad and Gary. It can be defined as “a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace” and therefore are the foundation of companies’ competitiveness.

449. When consumers are seeking low-involvement products, they are unlikely to engage in extensive search, so _________ is important.

A. Order processing

B. Order booking

C. Ready availability

D. Information about warranty

✅ The correct answer is option C.
When consumers are seeking low-involvement products, they are unlikely to engage in extensive search, so ready availability is important. The goal of market ready sites is not only to promote availability, but also to recognize the importance of “time to market” for retailers.

450. This type of encryption verifies the origin and content of a message and provides a way to associate a message with a sender is _________________.

A. Digital signature

B. Symmetric key encryption

C. Public key encryption

D. Digital certificate

✅ The correct answer is option A.
This type of encryption verifies the origin and content of a message and provides a way to associate a message with a sender is Digital signature. Digital Signature is a process that guarantees that the contents of a message have not been altered in transit. When you, the server, digitally sign a document, you add a one-way hash (encryption) of the message content using your public and private key pair.