Management Archives

621. Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as

A. selling window

B. buying window

C. premium window

D. discount window

✅ The correct answer is option D.
Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as discount window. The discount window is a central bank lending facility meant to help commercial banks manage short-term liquidity needs.

622. If contribution margin is $15000 and units sold are 500 units, then contribution margin per unit would be

A. $20 per unit

B. $30 per unit

C. $50 per unit

D. $40 per unit

✅ The correct answer is option B.
Contribution margin per unit = Contribution margin ÷ Units sold
= $15000 ÷ 500 units = $30 per unit.

623. If an actual result is $250000 and static budget amount is $150000, then static budget variance for operating income will be

A. $400,000

B. $500,000

C. $100,000

D. $600,000

✅ The correct answer is option C.
Static budget amount = Actual result – Static budget variance

= $250000 – $150000 = $100,000.

624. Which of the following is a force in the Porter’s five forces model of industry attractiveness?

A. opportunity for new entrants

B. opportunity for substitutes

C. bargaining power of suppliers

D. sustainable competitive advantage for customers

✅ The correct answer is option C.
Bargaining power of suppliers is a force in the Porter’s five forces model of industry attractiveness. The Bargaining Power of Suppliers, one of the forces in Porter’s Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products.

625. Maximization of objective function in an LP model means.

A. Value occurs at allowable set of decisions

B. Highest value is chosen among allowable decisions

C. Neither of above

D. Both a & b

✅ The correct answer is option A.
Maximization of objective function in an LP model means Value occurs at allowable set of decisions. Linear programming refers to choosing the best alternative from the available alternatives, whose objective function and constraint function can be expressed as linear mathematical functions.

626. In a company ______ is the centre which consists of all processing activities.

A. Data

B. Production

C. Information

D. Sales

✅ The correct answer is option A.
In a company data is the centre which consists of all processing activities. Data is distinct pieces of information, usually formatted in a special way. Since the mid-1900s, people have used the word data to mean computer information that is transmitted or stored. Strictly speaking, data is the plural of datum, a single piece of information.

627. The eligibility to borrow from IDA is based on

A. relative poverty

B. lack of creditworthiness to borrow on market terms

C. good policy performance

D. all the above

✅ The correct answer is option D.
The eligibility to borrow from IDA is based on relative poverty, lack of creditworthiness to borrow on market terms and good policy performance.

628. The leader makes decisions in consultation with his followers is _________.

A. autocratic style

B. liberal leader

C. democratic leader

D. institutional leader

✅ The correct answer is option C.
The leader makes decisions in consultation with his followers is democratic leader. A democratic leader is one who takes decisions in consultation with his subordinates. He emphasises consultation with and participation of his subordinates and encourages initiative from them. He also seeks their advice and opinions on matters which affect them and their jobs.

629. Measures that analyze performance of a company, such as residual income, economic value added and customer satisfaction are collectively called

A. interactive control systems

B. belief systems

C. boundary systems

D. diagnostic control systems

✅ The correct answer is option D.
Measures that analyze performance of a company, such as residual income, economic value added and customer satisfaction are collectively called diagnostic control systems. Diagnostic Control System is a traditional management control system used to monitor and optimize targets and outcomes: budgets, performance management and measurement, business plans, valuation standards, incentive systems and compensation systems.

630. As simulation is not an analytical model, therefore the result of simulation must be viewed as.

A. Unrealistic

B. Exact

C. Approximation

D. Simplified

✅ The correct answer is option C.
As simulation is not an analytical model, therefore the result of simulation must be viewed as approximation. Analytical models are mathematical models that have a closed form solution, i.e. the solution to the equations used to describe changes in a system can be expressed as a mathematical analytic function.