Management MCQs

Formula to calculate return on investment, according to profitability analysis in DuPont method is

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A. return on sales * investment turnover
B. return on sales + investment turnover
C. return on sales – investment turnover
D. investment turnover + residual income
✅ The correct answer is option A.
Formula to calculate return on investment, according to profitability analysis in DuPont method is return on sales * investment turnover.

Which one of the following is used for evaluating credit risks?

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A. Virtual Reality
B. Neural Network
C. Fuzzy logic
D. None of the above
✅ The correct answer is option B.
Neural Network is used for evaluating credit risks. A neural network is a series of algorithms that endeavors to recognize underlying relationships in a set of data through a process that mimics the way the human brain operates. Neural networks can adapt to changing input; so the network generates the best possible result without needing to redesign the output criteria.

Management By Objectives was introduced by __________.

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A. Taylor
B. Elton Mayo
C. Peter Drucker
D. Maslow
✅ The correct answer is option C.
Management By Objectives was introduced by Peter Drucker. The essence of Peter Drucker ‘s basic principle: Management By Objectives is to determine joint objectives and to provide feedback on the results. Setting challenging but attainable objectives promotes motivation and empowerment of employees.

In operating income strategic analysis, a component which measures change in operating income attributed to change in output quantity is classified as

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A. internal process component
B. growth component
C. price recovery component
D. productivity component
✅ The correct answer is option B.
In operating income strategic analysis, a component which measures change in operating income attributed to change in output quantity is classified as growth component. Operating income is an accounting figure that measures the amount of profit realized from a business’s operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).

According to classification by IMF, the currency system of India falls under

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A. managed floating
B. independently floating
C. crawling peg
D. pegged to basket of currencies
✅ The correct answer is option A.
According to classification by IMF, the currency system of India falls under managed floating. Managed float regime is the current international financial environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries’ exchange rates by buying and selling currencies to maintain a certain range.

_________________ is the process through which an organization evaluates its capability so as to have competitive advantage at market place

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A. Environmental analysis
B. Organizational analysis
C. Industry analysis
D. Business analysis
✅ The correct answer is option B.
Organizational analysis is the process through which an organization evaluates its capability so as to have competitive advantage at market place. Organizational analysis is the process of appraising the growth, personnel, operations, and work environment of an entity. Undertaking an organizational analysis is beneficial as it enables management to identify areas of weakness, and then find approaches for eliminating the problems.

Source of funds for repayment of municipal bonds is considered as

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A. local tax and revenue
B. global tax and revenue
C. print notes
D. commercial notes
✅ The correct answer is option A.
Source of funds for repayment of municipal bonds is considered as local tax and revenue. Municipal bonds (or “munis” for short) are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways or sewer systems.

Type of bonds that pay coupon interest are classified as

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A. forward bond
B. payment bonds
C. coupon bond
D. interest bonds
✅ The correct answer is option C.
Type of bonds that pay coupon interest are classified as coupon bond. A coupon bond is a type of bond. The bond issuer borrows capital from the bondholder and makes fixed payments to them at a fixed (or variable) interest rate for a specified period. that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value.

The cost of providing service in a queuing system decreases with.

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A. Decreased average waiting time in the queue
B. Decreased arrival rate
C. Increased arrival rate
D. None of the above
✅ The correct answer is option D.
In designing queueing systems we need to aim for a balance between service to customers (short queues implying many servers) and economic considerations (not too many servers).