Management

Enhance your preparation with the latest Management MCQs with answers and explanations for exams, interviews, and job tests. Our collection covers key topics including principles of management, organizational behavior, human resource management, marketing, finance, operations, strategic management, and business ethics. These Management multiple-choice questions are designed for students, competitive exam aspirants, and professionals preparing for NTS, PPSC, FPSC, CSS, PMS, MBA entrance tests, and recruitment assessments. Strengthen your management knowledge and problem-solving skills with our updated Management MCQs.

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471. Which theory is also called traditional authority theory

A. The acceptance of authority theory
B. The formal authority theory
C. The competence theory
D. The organization theory
✅ The correct answer is option B.
The formal authority theory is also called traditional authority theory. Traditional authority (also known as traditional domination) is a form of leadership in which the authority of an organization or a ruling regime is largely tied to tradition or custom. The main reason for the given state of affairs is that it ‘has always been that way’.

472. ___________ are the only service distributors which do not require direct human interactions.

A. Electronic channels
B. SST’s
C. Direct Service channels
D. Speculative channels
✅ The correct answer is option A.
Electronic channels are the only service distributors which do not require direct human interactions. Electronic channels overcome some of the problems associated with service inseparability and allow a form of standardisation not previously possible in most services.

474. Pre-specified price at which underlying asset is bought and sold is called as

A. maturity price
B. strike price
C. exercise price
D. both b and c
✅ The correct answer is option D.
Pre-specified price at which underlying asset is bought and sold is called as strike price or exercise price. the strike price (or exercise price) of an option is the fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity.

475. The authority is decentralized in which leadership style

A. positive style
B. negative style
C. autocratic style
D. democratic style
✅ The correct answer is option D.
The authority is decentralized in democratic leadership style. Democratic leadership, also known as participative leadership or shared leadership, is a type of leadership style in which members of the group take a more participative role in the decision-making process.

476. If an actual price of material is $700 and budgeted price is $900, then the

A. cost variance is favourable
B. cost variance is unfavourable
C. price variance is favourable
D. price variance is unfavourable
✅ The correct answer is option C.
If an actual price of material is $700 and budgeted price is $900, then the price variance is favourable. If the actual cost incurred is lower than the standard cost, this is considered a favorable price variance.

477. Difference that exists between total revenues, can be earned from two different alternatives is termed as

A. independent revenue
B. incremental revenue
C. differential revenue
D. dependent revenue
✅ The correct answer is option C.
Difference that exists between total revenues, can be earned from two different alternatives is termed as differential revenue. Differential revenue is the difference in sales that will be generated by two different courses of action. The concept is commonly used when evaluating which of two (or more) investments to make in a business.

479. Feature of stock which allows stock holders to buy shares at price below than market price is called

A. shares offering
B. price offering
C. rights offering
D. stock offering
✅ The correct answer is option C.
Feature of stock which allows stock holders to buy shares at price below than market price is called rights offering. A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.

480. Institutions deals in financial functions and protects corporations and individuals against accidents, theft and death are considered as

A. penalty companies
B. insurance companies
C. events dealers
D. protecting companies
✅ The correct answer is option B.
Institutions deals in financial functions and protects corporations and individuals against accidents, theft and death are considered as insurance companies. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
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