Management MCQs

Financial instruments such as treasury bonds and notes have

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A. lesser cost fluctuations
B. wider price fluctuations
C. less price fluctuations
D. wider cost fluctuations
✅ The correct answer is option B.
Financial instruments such as treasury bonds and notes have wider price fluctuations. A financial instrument is a monetary contract between parties. We can create, trade, or modify them. We can also settle them. A financial instrument may be evidence of ownership of part of something, as in stocks and shares. Bonds, which are contractual rights to receive cash, are financial instruments.

If actual performance exceeds the expected performance of the product, then customer is _____________.

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A. Satisfied
B. Dissatisfied
C. Delighted
D. Neutral
✅ The correct answer is option C.
If actual performance exceeds the expected performance of the product, then customer is delighted. This can lead to satisfaction among customers. If actual performance exceeds the target performance (positive disconfirmation), it can lead to a particularly large degree of satisfaction among customers (enthusiasm).

Linear Programming technique is used to allocate scarce resources in an optimum manner in problems of ______________ ?

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A. Schedule
B. Product Mix
C. Both A and B
D. Servicing Cost
✅ The correct answer is option C.
Linear Programming technique is used to allocate scarce resources in an optimum manner in problems of Schedule and Product Mix. Linear programming is a mathematical technique for allocating limited resources is optimum manner. In the words of William M. Fox, “Linear programming is a planning technique that permits some objective function to be minimized or maximized within the framework of given situational restrictions.”

Which of the following statement is True(T) or False(F) are given below. 1. Professional reading is done when you need is continue learning and studying so that you develop your own thinking and skills. 2. Action reading is done when you do not need to do something concrete in the not too distant future after you have read. 3. A reader can understand a text only when s / he actively uses his / her mental abilities.

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A. TTT
B. FFF
C. TFT
D. FTF
✅ The correct answer is option C.
1. Professional reading is done when you need is continue learning and studying so that you develop your own thinking and skills.

2. Action reading is done when you need to do something concrete in the not too distant future after you have read.

3. A reader can understand a text only when s / he actively uses his / her mental abilities.

Rupee amount for required return of investment is subtracted from income to calculate

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A. net income
B. after tax income
C. residual income
D. operating income
✅ The correct answer is option C.
Rupee amount for required return of investment is subtracted from income to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company’s management team evaluates the income generated relative to the company’s minimum required return.

Simplicity with which bondholders and shareholders can change their investments into cash is known

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A. barter
B. hedging
C. arbitrage
D. liquidity
✅ The correct answer is option D.
Simplicity with which bondholders and shareholders can change their investments into cash is known as liquidity. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.

Call option considering interest rates and have multiple exercise dates is classified as

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A. floor
B. cap
C. swaps multiplier
D. notion multiplier
✅ The correct answer is option B.
Call option considering interest rates and have multiple exercise dates is classified as cap. A cap is a package of interest rate options whereby, at each of a series of future fixing dates, if an agreed reference rate such as LIBOR is higher than the strike rate, the option buyer receives the difference between them, calculated on an agreed notional principal amount for the period until the next fixing date.

The vision and mission statement can often be found

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A. in the SEC report
B. in annual reports
C. on customer receipts
D. on supplier invoices
✅ The correct answer is option B.
The vision and mission statement can often be found in annual reports. A Mission Statement defines the company’s business, its objectives and its approach to reach those objectives. A Vision Statement describes the desired future position of the company. Elements of Mission and Vision Statements are often combined to provide a statement of the company’s purposes, goals and values.

Business unit competencies should be distinctive enough to provide a(n):

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A. clear understanding of who you want to lead the company
B. competitive advantage
C. opportunity to compete on a productivity basis
D. additional strategic mission
✅ The correct answer is option B.
Business unit competencies should be distinctive enough to provide a competitive advantage. Business competency is a set of particular abilities and knowledge that sets a company apart from its competitors. In highly successful companies, core competencies have most likely developed in areas where they add the most value to products.