Management MCQs

A manufacturing company products may decide to diversify into ____ lines.

by
A. Price
B. Demand
C. Consumer
D. Product
✅ The correct answer is option C.
A manufacturing company products may decide to diversify into consumer lines. A manufacturing business is any business that uses components, parts or raw materials to make a finished good.

____________process data resulting from business transactions, update operational databases, and produce business documents.

by
A. Transaction Processing Systems
B. Process Control Systems
C. Enterprise Collaboration Systems
D. Management Information Systems
✅ The correct answer is option A.
Transaction Processing Systems process data resulting from business transactions, update operational databases, and produce business documents. A Transaction Processing System is a set of information which processes the data transaction in database system that monitors transaction programs. The system is useful when something is sold over the internet. It allows for a time delay between when an item is being sold to when it is actually sold.

Default risk is measured by large traders, managers and investors with help of

by
A. sinking analysis
B. analyzing financial ratios
C. portfolio scenario value
D. automated machine analysis
✅ The correct answer is option B.
Default risk is measured by large traders, managers and investors with help of analyzing financial ratios. Default risk is the chance that a company or individual will be unable to make the required payments on their debt obligation. Lenders and investors are exposed to default risk in virtually all forms of credit extensions. A higher level of risk leads to a higher required return, and in turn, a higher interest rate.

Difference of cost, which occurs while considering alternatives can be classified as

by
A. dependent cost
B. independent cost
C. incremental cost
D. differential cost
✅ The correct answer is option D.
Difference of cost, which occurs while considering alternatives can be classified as differential cost. Differential cost is the difference between the cost of two alternative decisions, or of a change in output levels. The concept is used when there are multiple possible options to pursue, and a choice must be made to select one option and drop the others.

The decisions which are frequent and repetitive in nature are called as

by
A. non programmed decisions
B. programmed decisions
C. major decisions
D. operative decisions
✅ The correct answer is option B.
The decisions which are frequent and repetitive in nature are called as programmed decisions. These decisions are taken in the regular course of any business operations and occur at a day-to-day frequency. These decisions are repetitive and structured in nature.

Loans for cars and home appliances is classified as loans for

by
A. durable goods
B. non-durable goods
C. equilibrium goods
D. non-equilibrium goods
✅ The correct answer is option A.
Loans for cars and home appliances is classified as loans for durable goods. Durable goods are those goods that don’t wear out quickly and last over a long period.

When business companies started investing with funds generated internally is a point which shows that

by
A. cost of loanable funds is high
B. cost of loanable fund is low
C. equilibrium is zero
D. equilibrium is negative
✅ The correct answer is option A.
When business companies started investing with funds generated internally is a point which shows that cost of loanable funds is high. Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption.

The process of choosing individuals who have re1evant qualifications to fill existing or projected job openings is

by
A. Screening process
B. Selection process
C. Interview process
D. Pre-screening process
✅ The correct answer is option B.
The process of choosing individuals who have re1evant qualifications to fill existing or projected job openings is Selection process. The selection process can be defined as the process of selection and shortlisting of the right candidates with the necessary qualifications and skill set to fill the vacancies in an organisation.