Management Archives

811. relevant costs are classified in relevance concepts as

A. expected future costs

B. serial costs

C. parallel costs

D. abnormal costs

✅ The correct answer is option A.
Relevant costs are classified in relevance concepts as expected future costs. A relevant cost is a cost that only relates to a specific management decision, and which will change in the future as a result of that decision.

812. Consider call option writing, probability that a buyer would have positive payoff increases with the

A. increase in stock price

B. decrease in stock price

C. increase in maturity duration

D. decrease in maturity duration

✅ The correct answer is option B.
Considering call option writing, probability that a buyer would have positive payoff increases with the decrease in stock price. Writing a call option means that you are selling a call option. If you sell a call (also know as a “short call”) then you are obliged to sell stock at the strike price.

813. Institutions classified as depository ones and have loans as their major assets are classified as

A. commercial banks

B. commercial mortgages

C. credit mortgages

D. credit derivative

✅ The correct answer is option A.
Institutions classified as depository ones and have loans as their major assets are classified as commercial banks. A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking, as opposed to an investment bank.

814. The ________ holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being.

A. Customer-centred business

B. Focused business model

C. Societal marketing concept

D. Ethically responsible marketing

✅ The correct answer is option C.
The Societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being. Societal marketing concept holds that a company’s marketing policy must consider society’s long-term interests, consumers’ wants, the company’s profit.

815. ________ portrays the “whole person” interacting with his or her environment.

A. Attitude

B. Reference group

C. Lifestyle

D. Culture

✅ The correct answer is option C.
Lifestyle portrays the “whole person” interacting with his or her environment. Lifestyle is defined simply as how one lives.

816. The basic activities of strategic management include:

A. offense, defense, and control

B. situation analysis, strategy formulation, implementation, and evaluation

C. development, control, and management

D. ethics, management, and practice

✅ The correct answer is option B.
The basic activities of strategic management include situation analysis, strategy formulation, implementation, and evaluation. The process of strategic management includes goal setting, analysis, strategy formation, strategy implementation, and strategy monitoring.

817. In today’s global world, an outsourcing of products or services from lower cost countries is classified as

A. differential in-sourcing

B. off-shoring

C. incremental outsourcing

D. differential outsourcing

✅ The correct answer is option B.
In today’s global world, an outsourcing of products or services from lower cost countries is classified as off-shoring. Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

818. Investors take political hazard as

A. Encouraged

B. Discouraged

C. Attracted

D. Make them happy

✅ The correct answer is option B.
Investors take political hazard as discouraged. Political risk is also known as ” geopolitical risk,” and becomes more of a factor as the time horizon of investment gets longer.

819. Number of covenants related to issued bonds are included in

A. private indenture

B. bond indenture

C. long term indenture

D. federal indenture

✅ The correct answer is option B.
Number of covenants related to issued bonds are included in bond indenture. A bond indenture is a legal document or contract between the bond issuer and the bondholder that records the obligations of the bond issuer and benefits owed to the bondholder.

820. In firm commitment underwriting procedure, more risk is at side of

A. investment bank

B. insurance firm

C. reissuing firm

D. reselling firm

✅ The correct answer is option A.
In firm commitment underwriting procedure, more risk is at side of investment bank. An investment bank (IB) is a financial intermediary that performs a variety of services. Most Investment banks specialize in large and complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations and acting as a broker or financial adviser for institutional clients.