Management MCQs

In order for a culture to generate success, what does it need to be?

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A. Stable and secure
B. Flexible and adaptive
C. Innovative and resourceful
D. Flexible and resourceful
✅ The correct answer is option B.
In order for a culture to generate success, Flexible and adaptive it need to be. Flexible and adaptive leadership involves changing behavior in appropriate ways, their experience, skills, values, and needs, and a leader’s behavior.

Which of the following is not a characteristic of the LP model?

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A. Alternative courses of action
B. An objective function of maximization type
C. Limited amount of resources
D. Non-negativity condition on the value of decision variables.
✅ The correct answer is option B.
An objective function of maximization type is not a characteristic of the LP model. The objective of linear programming is to: “maximize or to minimize some numerical value.

Which is not a typical business function?

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A. Sales
B. Service
C. Manufacturing
D. Benefits and Compensation
✅ The correct answer is option D.
Benefits and Compensation is not a typical business function. Information systems aid businesses in developing a larger number of value added-systems in the company. Further, information systems eliminate repetitive tasks and increase accuracy, allowing employees to concentrate on more high-level functions.

Situation in which claims by financial institutions than claims issued by corporations is more considerable for investors is classified as

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A. asset transformers
B. liability transformers
C. issuing transformers
D. claiming transformers
✅ The correct answer is option A.
Situation in which claims by financial institutions than claims issued by corporations is more considerable for investors is classified as asset transformers. Asset transformation is the process of creating a new asset (loan) from liabilities (deposits) with different characteristics by converting small denomination, immediately available and relatively risk free bank deposits into loans–new relatively risky, large denomination asset–that are repaid following a set schedule.

Situation in which large portion of majority is borrowed from broker of investor is classified as

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A. future investment
B. forward investment
C. leveraged investment
D. non-leveraged investment
✅ The correct answer is option C.
Situation in which large portion of majority is borrowed from broker of investor is classified as leveraged investment. Leveraged investing is a technique that seeks higher investment profits by using borrowed money. These profits come from the difference between the investment returns on the borrowed capital and the cost of the associated interest. Leveraged investing exposes an investor to higher risk.

If risk of financial security decreases and supply curve shifts to right and downwards then impact on equilibrium of interest rate must

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A. positive
B. negative
C. decreases
D. increases
✅ The correct answer is option C.
If risk of financial security decreases and supply curve shifts to right and downwards then impact on equilibrium of interest rate must decreases. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied. The Federal Reserve can alter the equilibrium interest rate by adjusting the supply of money. The demand for money and supply of money can be graphed to determine the equilibrium interest rate.

Votes for each stock holder were multiplied to number of elected directors to calculate

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A. number of cumulative class
B. number of votes assigned
C. number of elective candidates
D. number of common stock shares
✅ The correct answer is option B.
Votes for each stock holder were multiplied to number of elected directors to calculate number of votes assigned.

________________ monitors and control industrial processes.

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A. Transaction Processing Systems
B. Process Control Systems
C. Enterprise Collaboration Systems
D. Management Information Systems
✅ The correct answer is option B.
Process Control Systems monitors and control industrial processes. Process control systems (PCS), sometimes called industrial control systems (ICS), function as pieces of equipment along the production line during manufacturing that test the process in a variety of ways, and return data for monitoring and troubleshooting.

Financial securities issued by local and state governments are classified as

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A. municipal bonds
B. reserve bonds
C. state bonds
D. federal bonds
✅ The correct answer is option A.
Financial securities issued by local and state governments are classified as municipal bonds. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.