Management MCQs

Factors that can affect nominal interest rates in financial transactions includes

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A. special provisions
B. liquidity and default risk
C. inflation and real interest rate
D. all of above
✅ The correct answer is option D.
Factors that can affect nominal interest rates in financial transactions includes special provisions, liquidity and default risk and inflation and real interest rate.

An incentive plan may consist of

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A. Monetary
B. Nonmonetary
C. Both monetary and nonmonetary
D. None of the above
✅ The correct answer is option C.
An incentive plan may consist of both monetary and nonmonetary. Monetary rewards are the incentives which involve direct money to the employees. Non-Monetary rewards are the incentives which do not involve direct money to the employees. Non-Monetary rewards are usually given to all the employees of a certain level to offer them convenience and security.

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

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A. Market-skimming
B. Value-based
C. Market-penetration
D. Leader
✅ The correct answer is option C.
Market-penetration pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share. Market penetration pricing is a pricing strategy that sets a low initial price for a product. The goal is to quickly attract new customers based on the low cost. The strategy is most effective for increasing market share and sales volume while discouraging competition.

Non-negativity condition in an LP model implies.

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A. A positive coefficient of variables in objective function
B. A positive coefficient of variables in any constraint
C. Non-negative value of resources
D. None of the above
✅ The correct answer is option D.
Non-negativity restriction indicates that all decision variables must take on values equal to or greater than zero.

__________system is that two or more subsystems share the data over a network.

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A. Open
B. Closed
C. Distributed
D. Undistributed
✅ The correct answer is option C.
Distributed system is that two or more subsystems share the data over a network. A distributed system is a network that consists of autonomous computers that are connected using a distribution middleware. They help in sharing different resources and capabilities to provide users with a single and integrated coherent network.

What form of strategy formation would be expected to be found in Defender organizations?

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A. Formal planning
B. Visionary
C. Adaptive
D. Incremental
✅ The correct answer is option A.
Formal planning form of strategy formation would be expected to be found in Defender organizations. Most of the organizations follows formal planning. It is written and focuses specifically on the long term goals of the organization. The planning which is discussed practically and the details, explanations are noted down helps the organization achieve its objectives smoothly.

In which of the following types of analysis, the value of only one variable is changed repeatedly, and the resulting changes on other variables are observed.

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A. what if analysis
B. sensitivity analysis
C. Goal seeking analysis
D. None of these
✅ The correct answer is option B.
In sensitivity analysis of the following types of analysis, the value of only one variable is changed repeatedly, and the resulting changes on other variables are observed. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions. In other words, sensitivity analyses study how various sources of uncertainty in a mathematical model contribute to the model’s overall uncertainty.

Consider buying call option, if price of stock rises then buyer of call option has

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A. low potential of losses
B. high potential of losses
C. high potential of profit
D. low potential of profit
✅ The correct answer is option C.
Consider buying call option, if price of stock rises then buyer of call option has high potential of profit. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset.

First step in developing a vision statement is

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A. Targeting the vision
B. Developing future scenarios
C. Setting vision context
D. Conducting vision audit
✅ The correct answer is option D.
First step in developing a vision statement is conducting vision audit. The vision for your organization should be aggressive, yet attainable. Your organization will never be greater than the vision you create in this process.