Management Archives

691. Gross margin is added into cost of sold goods is to calculate the

A. revenues

B. operating leverage

C. contribution margin

D. operating margin

✅ The correct answer is option A.
Gross margin is added into cost of sold goods is to calculate the revenues. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income. Sales Revenue formula. Revenue is also known as sales on the income statement.

692. The insurance policy that covers exporters against commercial and political risk is.

A. General insurance

B. ECGC

C. Marine insurance

D. Fire insurance

✅ The correct answer is option D.
The insurance policy that covers exporters against commercial and political risk is Fire insurance. Under this policy, the insurer covers some of the buyers and in case of any event, pays an agreed percentage of an invoice.

693. In accounting, possibility of deviation of actual amount from an expected amount is classified as

A. contribution

B. certainty

C. uncertainty

D. margin

✅ The correct answer is option C.
In accounting, possibility of deviation of actual amount from an expected amount is classified as uncertainty. Uncertainty refers to epistemic situations involving imperfect or unknown information. It applies to predictions of future events, to physical measurements that are already made, or to the unknown.

694. Formula of effective annual return is written as

A. (1+r) c – 1

B. (2+r) c – 2

C. (3+r) c – 3

D. (1+r) c – 5

✅ The correct answer is option A.
Formula of effective annual return is written as (1+r) c – 1. Effective annual return (EAR) is the annual rate that captures the magnifying effect of multiple compounding periods per year of an investment.

695. What is the key variable in executing visionary strategy creation at the competitive strategy level?

A. Seizing the opportunities presented

B. Formalized planning

C. Innovation

D. Learning

✅ The correct answer is option C.
Innovation is the key variable in executing visionary strategy creation at the competitive strategy level. Innovation involves deliberate application of information, imagination and initiative in deriving greater or different values from resources, and includes all processes by which new ideas are generated and converted into useful products.

696. ___________ constitutes moderate consumer behavior, but still involves time and effort searching for and comparing alternatives.

A. Limited decision making

B. Need recognition

C. Routine decision making

D. Post purchase evaluation

✅ The correct answer is option A.
Limited decision making constitutes moderate consumer behavior, but still involves time and effort searching for and comparing alternatives. Limited decision making is consumer decision making that is used when purchasing products that require a moderate amount of time and effort to compare models and brands before making a choice.

697. Systematic and orderly process of determining the worth of a job in relation to other jobs is

A. Worth job specification

B. Job description

C. Job evaluation

D. Job identification

✅ The correct answer is option C.
Systematic and orderly process of determining the worth of a job in relation to other jobs is Job evaluation. Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required.

698. The three phases of recruitment process are

A. Planning, Implementing, Evaluating

B. Planning, Implementing, Screening

C. Planning, Implementing, Enrichment

D. Planning, Screening, Evaluating

✅ The correct answer is option A.
The three phases of recruitment process are Planning, Implementing and Evaluating.

699. Which of the following would not be considered a barrier to entry?

A. High innovation

B. Concentration of distribution channels

C. Steep experience curves

D. Concentration of suppliers

✅ The correct answer is option A.
High innovation would not be considered a barrier to entry. Innovation is about being creative and original in your work and thinking.

700. Which statements are incorrect?

A. Recruitment and selection are part of the sourcing/attraction process

B. Selection creates a pool of talent to consider for future jobs

C. Recruitment enables the selection phase

D. All of the above statements are incorrect

✅ The correct answer is option B.
Selection creates a pool of talent to consider for future jobs is incorrect. A talent pool is a database of individuals created by a recruiter during the application process. This database is usually made within an Applicant Tracking System. When a candidate applies for a job, the recruiter is able to put them into a specific and relevant talent pool by tagging candidate profiles.