Management Archives

671. Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as

A. nominal rate of return

B. accrual accounting rate of return

C. real rate of return

D. required rate of return

✅ The correct answer is option A.
Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as nominal rate of return. The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.

672. The major source of data for other systems is __________________.

A. ESS

B. DSS

C. MIS

D. TPS

✅ The correct answer is option D.
The major source of data for other systems is TPS. A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency.

673. __________cost refers to the product’s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value.

A. Total

B. Variable

C. Life cycle

D. Net

✅ The correct answer is option C.
Life cycle cost refers to the product’s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value. Life-cycle costing is a method of calculating the total cost of ownership over the life span of the industrial product. It can be especially useful in the marketing of industrial products that sell for high initial prices, but which provide long-run cost savings.

674. E-commerce is ubiquitous it reduces __________.

A. Marketspace

B. Transaction costs

C. Dynamic pricing

D. Price discrimination

✅ The correct answer is option B.
E-commerce is ubiquitous it reduces Transaction costs. Transaction costs are fees incurred during the process of buying or selling a good or service.

675. What are designed to guide managers in the pursuit and achievement of strategies and objectives?

A. Procedures

B. Budgets

C. Policies

D. Plans

✅ The correct answer is option C.
Policies are designed to guide managers in the pursuit and achievement of strategies and objectives. Policies are instrument for strategy implementation. This thesis defines policy much more narrowly as specific guides to managerial action and decisions in the implementation of strategy.

676. In the strategic marketing process, once you get results you go into the:

A. control phase

B. marketing plan

C. planning phase

D. marketing program

✅ The correct answer is option A.
In the strategic marketing process, once you get results you go into the control phase. The evaluation phase is the checking phase. This process involves ensuring that the results of the program are in line with the goals set. The marketing team, especially the manager will need to observe any deviations in the plan and quickly correct negative deviations to get back on course.

677. In Capital Market Line every investment is

A. infinitely divisible

B. finitely divisible

C. a & b

D. all of answer correct

✅ The correct answer is option A.
In Capital Market Line every investment is infinitely divisible. The capital market line (CML) represents portfolios that optimally combine risk and return. Capital asset pricing model (CAPM), depicts the trade-off between risk and return for efficient portfolios.

678. Departmentation on the basis of production process is called _________.

A. equipment department

B. departmentation by products

C. departmentation by territory

D. departmentation by customers

✅ The correct answer is option A.

679. The primary aim of recruitment and selection process is to

A. Meet the high labour turnover

B. Hire the best individuals at optimum cost

C. Ensure the availability of surplus in the case of sickness and absence

D. Hire Excess manpower for the future

✅ The correct answer is option B.
The primary aim of recruitment and selection process is to hire the best individuals at optimum cost. It can assist the HR personnel to select the right candidate on the basis of merit and relevance with the job.

680. Rates of certificate of deposits are mostly negotiated between

A. bank and COD buyer

B. bank and stock market

C. stock market and COD buyer

D. indirect negotiations of buyers

✅ The correct answer is option A.
Rates of certificate of deposits are mostly negotiated between bank and COD buyer. A certificate of deposit (CD) is a product offered by banks and credit unions that offers an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.