Management MCQs

Innovation and quality can be seen as which form of management?

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A. Marketing management
B. Financial management
C. Operations management
D. Human resource management
✅ The correct answer is option C.
Innovation and quality can be seen as Operations management. Operations management is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.

The current account of balance of payments does not include

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A. Trade in goods
B. Trade in services
C. Income on investments
D. None of the above
✅ The correct answer is option A.
The current account of balance of payments does not include trade in goods. Trade in goods and services is defined as the transactions in goods and services between residents and non-residents. It is measured in million USD, as percentage of GDP for net trade, and also in annual growth for exports and imports.

Difference between variable cost per unit and selling price can be classified as

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A. contribution margin per unit
B. variable margin per unit
C. selling margin per unit
D. sale per unit
✅ The correct answer is option A.
Difference between variable cost per unit and selling price can be classified as contribution margin per unit. Contribution margin per unit is the net amount that each additional unit sold contributes towards a company’s fixed costs and profit.

The area where the goods are permitted to be imported and re-exported without any processing in the same form is called

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A. Export Processing Zone
B. Free Trade Zone
C. Special Economic Zone
D. Agri Export Zone
✅ The correct answer is option D.
The area where the goods are permitted to be imported and re-exported without any processing in the same form is called Agri Export Zone. An Agri Export Zone or AEZ is a specific geographic region in a country demarcated for setting up agriculture based processing industries, mainly for export.

Type of distribution, which describes whether events to be occurred are mutually exclusive or collectively exhaustive can be classified as

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A. mutual distribution
B. probability distribution
C. collective distribution
D. marginal distribution
✅ The correct answer is option B.
Type of distribution, which describes whether events to be occurred are mutually exclusive or collectively exhaustive can be classified as probability distribution. A probability distribution is a list of all of the possible outcomes of a random variable along with their corresponding probability values. To give a concrete example, here is the probability distribution of a fair 6-sided die.

Which of the following is an aspect of implementation that can be changed indirectly if necessary?

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A. Organizational structure
B. Information systems
C. Quality
D. Procedures
✅ The correct answer is option C.
Quality is an aspect of implementation that can be changed indirectly if necessary. The quality strategy is a vital element to building the quality process and expectations of the organization. It is important that it reflects the business mission and provides vision, values and goals to the employees.

Point method is suitable for

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A. Small size organization
B. Mid size organization
C. Large organization
D. Both (B) and (C)
✅ The correct answer is option D.
Point method is suitable for Mid size organization and Large organization. The point method is an extension of the factor comparison method. Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.

______________ is a support team, workgroup, and enterprise communications and collaborations.

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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 C.
Enterprise Collaboration Systems is a support team, workgroup, and enterprise communications and collaborations. An Enterprise Collaboration System (ECS) is an information system used to facilitate efficient sharing of documents and knowledge between teams and individuals in an enterprise.

An operating income is divided by revenues to calculate

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A. residual income
B. return on after-tax operating income
C. return on sales
D. return on investment
✅ The correct answer is option C.
An operating income is divided by revenues to calculate return on sales. Return on sales (ROS) is a measure of how efficiently a company turns sales into profits. ROS is calculated by dividing operating profit by net sales. ROS is only useful when comparing companies in the same line of business and of roughly the same size.

All of the following might be used to improve organizational communication except

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A. surveys and feedback
B. management training
C. filtering
D. TV networks
✅ The correct answer is option C.
All of the following might be used to improve organizational communication except filtering. Organizational communication is the exchange of information, ideas, and views within and outside the organization. Organizational communication indicates communication not only in business but also in hospitals, churches, government agencies, military organization, and academic institutions.