Management MCQs

Commercial paper issued with low interest rate thus commercial paper are categorized as

by
A. payables rating
B. commercial rating
C. poor credit rating
D. better credit rating
✅ The correct answer is option D.
Commercial paper issued with low interest rate thus commercial paper are categorized as better credit rating. Higher scores represent better credit decisions and can make creditors more confident that you will repay your future debts as agreed.

A merely household organization may be influenced by exchange rate variations if it faces at slightest some

by
A. Domestic Competition
B. Foreign competition
C. Joint ventures
D. All of answers are correct
✅ The correct answer is option B.
A merely household organization may be influenced by exchange rate variations if it faces at slightest some foreign competition. Foreign competition is a viable alternative for customers, it would lessen a dominant firm’s ability to exercise market power post-merger.

Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as

by
A. insolvency risk
B. solvency risk
C. balanced risk
D. unbalanced risk
✅ The correct answer is option A.
Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as insolvency risk. Insolvency risk is defined as the risk that an individual or company will not be able to meet its debt obligations.

Convertibility of a currency is indicated by its

by
A. Conversion at market rates
B. Conversion at market rates, but subject to quantity restriction by government
C. Conversion at market rate without any quantitative restriction by government
D. Conversion at official rate
✅ The correct answer is option C.
Convertibility of a currency is indicated by its conversion at market rate without any quantitative restriction by government. Currency convertibility is important for international commerce as globally sourced goods must be paid for in an agreed upon currency that may not be the buyer’s domestic currency.

In the writing of an apology letter, concentrate on

by
A. Problem
B. Compensation
C. Rectification of problem
D. Words
✅ The correct answer is option C.
In the writing of an apology letter, concentrate on rectification of problem. Your apology should be brief and to the point. Your reputation as a trustworthy customer and credit risk may be in question, so your immediate and thorough attention to the matter is important. Focus on your actions to correct the problem and offer assurance it won’t happen again.

The _______________ has its own business strategy, objectives and competitors and these are often differ from parent company

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A. Strategic Business Unit structure
B. Matrix structure
C. Divisional structure
D. None of given option
✅ The correct answer is option A.
The Strategic Business Unit structure has its own business strategy, objectives and competitors and these are often differ from parent company. A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company. It reports to the headquarters about its operational status.

Cross-functional teams are:

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A. a small group of people from the same department who work on projects together
B. a small group of people who come together to resolve business unit issues
C. a small group of specialists who collaborate on a task force
D. a small group of people from different departments who are mutually accountable to a common set of performance goals
✅ The correct answer is option D.
Cross-functional teams are a small group of people from different departments who are mutually accountable to a common set of performance goals. A cross-functional team is a group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations, and human resources departments. Typically, it includes employees from all levels of an organization.