Management MCQs

Position which came in to existence because of holding assets less than liabilities is considered as

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A. net surplus in assets
B. net surplus in liabilities
C. net long in currency
D. net short in currency
✅ The correct answer is option D.
Position which came in to existence because of holding assets less than liabilities is considered as net short in currency. An investor who is net short has more short positions than long positions in a given asset, industry, market, or portfolio.

According to Edwin Flippo, the first and immediate product of job analysis is

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A. The job description
B. The job design
C. The job production
D. The job specification
✅ The correct answer is option A.
According to Edwin Flippo, the first and immediate product of job analysis is the job description. A job description or JD lists the main features of a specific job. The description typically includes the person’s main duties, responsibilities, and working conditions. It also includes the job title and to whom the person holding that job has to report.

The written statement of the findings of job analysis is called

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A. Job design
B. Job classification
C. Job description
D. Job evaluation
✅ The correct answer is option C.
The written statement of the findings of job analysis is called Job description. It includes information such as job title, job location, reporting to and of employees, job summary, nature and objectives of a job, tasks and duties to be performed, working conditions, machines, tools and equipments to be used by a prospective worker and hazards involved in it.

In _____ organization, authority is delegated down the hierarchy.

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A. traditional
B. classical
C. operational
D. absolute
✅ The correct answer is option B.
In classical organization, authority is delegated down the hierarchy. This is known as top-down authority. It supports the principle of scalar chain or organisational hierarchy. In this theory, authority flows from top to bottom through various levels of hierarchy.

The following technique(s) is based on the critical incident approach.

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A. Behaviorally anchored rating scales (BARS)
B. Critical incident technique
C. Both (A) and (B)
D. None of the above
✅ The correct answer is option C.
Behaviorally anchored rating scales (BARS) and Critical incident techniques are based on the critical incident approach.
BARS is designed to bring the benefits of both quantitative and qualitative data to employee appraisal process.
Critical incident technique is a method of gathering facts (incidents) from domain experts or less experienced users of the existing system to gain knowledge of how to improve the performance of the individuals involved.

What is synergy?

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A. When the organization is providing a product to the customer that perfectly suits their requirements
B. When the parts of an organization are combined and managed in such a way that the drawbacks exceed those which would result if the parts were operating separately
C. When the parts of an organization are combined and managed in such a way that the benefits exceed those which would result if the parts were operating separately
D. When the parts of an organization are combined and managed in such a way to reduce costs
✅ The correct answer is option C.
When the parts of an organization are combined and managed in such a way that the benefits exceed those which would result if the parts were operating separately is known as synergy. Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A).

Considering two fiscal years 2013 and 2014, if selling price in 2013 and 2014 is $55 and $60 per unit respectively and actual units sold in 2013 are 25000 units, then revenue effect of price recovery will be

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A. $14,500
B. $135,000
C. $125,000
D. $12,500
✅ The correct answer is option C.
Revenue effect of price recovery = ($60 – $55) × 25000
= $125,000.

Gross margin is added into cost of sold goods is to calculate the

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A. revenues
B. operating leverage
C. contribution margin
D. operating margin
✅ The correct answer is option A.
Gross margin is added into cost of sold goods is to calculate the revenues. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income. Sales Revenue formula. Revenue is also known as sales on the income statement.

The insurance policy that covers exporters against commercial and political risk is.

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A. General insurance
B. ECGC
C. Marine insurance
D. Fire insurance
✅ The correct answer is option D.
The insurance policy that covers exporters against commercial and political risk is Fire insurance. Under this policy, the insurer covers some of the buyers and in case of any event, pays an agreed percentage of an invoice.