Management MCQs

Many merger discussions breakdown or are abandoned. Which of these is not a reason why?

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A. Egos can get in the way
B. Reluctance to accept which will become ???number two???
C. The bid is deemed hostile leading to aggressive defense
D. Inadequate consultation with shareholders who then intervene
✅ The correct answer is option C.
Many merger discussions breakdown or are abandoned. The bid is deemed hostile leading to aggressive defense is not a reason. A merger refers to an agreement. It is a mutually binding contract in which two companies join together to form one company.

A closed-end fund is a mutual fund in which shares issue just when fund is

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A. organized
B. unorganized
C. copied
D. random behaviour showing
✅ The correct answer is option A.
A closed-end fund is a mutual fund in which shares issue just when fund is organized. A closed-end fund (CEF) or closed-ended fund is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund.

________________ is obsessive use of a computer or unauthorized access and use of computer systems.

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A. Hacking
B. Computer Crime
C. Trojan Horse
D. Packet Sniffer
✅ The correct answer is option A.
Hacking is obsessive use of a computer or unauthorized access and use of computer systems. Hacking means using computers to commit fraudulent acts such as fraud, privacy invasion, stealing corporate/personal data, etc.

Turnaround strategies involve changes at what level of strategy?

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A. Corporate
B. Functional
C. Competitive
D. All levels
✅ The correct answer is option C.
Turnaround strategies involve changes at Competitive level of strategy. Turnaround strategy means to convert, change or transform a loss-making company into a profit-making company. It means to make the company profitable again. The main purpose of implementing a turnaround strategy is to turn the company from a negative point to a positive one.

Mortgages used to purchase shopping malls and office buildings are classified as

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A. developed mortgages
B. dwelling mortgages
C. commercial mortgages
D. non-commercial mortgages
✅ The correct answer is option C.
Mortgages used to purchase shopping malls and office buildings are classified as commercial mortgages. A commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping center, industrial warehouse, or apartment complex. The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial property.

Underwriter spread of stock is added to net proceeds to calculate value of

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A. over writer spread
B. Gross proceeds
C. participation proceeds
D. non participation proceeds
✅ The correct answer is option B.
Underwriter spread of stock is added to net proceeds to calculate value of Gross proceeds. Gross Proceeds means the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for Selling Commissions, volume discounts, any marketing support and due diligence expense reimbursement or Organization and Offering Expenses.

Situation analysis allows the organization to examine:

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A. external factors only
B. internal factors only
C. the organization’s top management only
D. both external and internal factors
✅ The correct answer is option D.
Situation analysis allows the organization to examine both external and internal factors. Situation analysis is defined as an analysis of the internal and external factors of a business. It clearly identifies a business’s capabilities, customers, potential customers and business environment, and their impact on the company.

As compared to irrelevant cost, occurrence of relevant costs must

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A. have high correlation
B. be in future
C. be in past
D. be zero correlated
✅ The correct answer is option B.
As compared to irrelevant cost, occurrence of relevant costs must be in future. Relevant costs are affected by a new decision. Irrelevant costs have to be incurred irrespective of a new decision. The relevant costs affect the future cash flows, whereas the irrelevant costs do not affect future cash flows.