Management MCQs

Which one of the following criteria does not provide a means to assess strategic resources?

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A. Sustainability
B. Scarcity
C. Inimtability
D. Synergy
✅ The correct answer is option D.
Synergy criteria does not provide a means to assess strategic resources. 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).

If the aim of the promotion to introduce a new consumer product is to achieve high awareness levels, the firm will most likely make heavy use of _______ in the promotional mix.

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A. Advertising
B. Sales promotion
C. Personal selling
D. Publicity
✅ The correct answer is option A.
If the aim of the promotion to introduce a new consumer product is to achieve high awareness levels, the firm will most likely make heavy use of advertising in the promotional mix. The promotional mix is one of the 4 Ps of the marketing mix. It consists of public relations, advertising, sales promotion and personal selling.

Denomination currency choice and volatility of interest rates affects

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A. maturity date of euro bond
B. cost of euro bond
C. issuance process of bonds
D. process of printing money
✅ The correct answer is option B.
Denomination currency choice and volatility of interest rates affects cost of euro bond. A Eurobond is a debt instrument that’s denominated in a currency other than the home currency of the country or market in which it is issued. Eurobonds are important because they help organizations raise capital while having the flexibility to issue them in another currency.

Accounting entry of institutions who lends federal funds to other institutions is as

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A. liability on balance sheet
B. assets on balance sheet
C. income in income statement
D. expense on income statement
✅ The correct answer is option B.
Accounting entry of institutions who lends federal funds to other institutions is as assets on balance sheet. Federal funds are overnight borrowings between banks and other entities to maintain their bank reserves at the Federal Reserve. Banks keep reserves at Federal Reserve Banks to meet their reserve requirements and to clear financial transactions.

Informal communication is commonly known as

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A. downward communication
B. upward communication
C. horizontal communication
D. grapevine
✅ The correct answer is option D.
Informal communication is commonly known as grapevine. Grapevine communication is informal workplace dialogue in its purest form: it is characterized by conversations between employees and superiors that do not follow any prescribed structure or rule-based system. Grapevine communication spreads rapidly and likely touches each person throughout the organization.

Price charged by one subunit to supply products or services to another unit is called

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A. subunit autonomy cost
B. transfer price
C. performance prices
D. effort cost
✅ The correct answer is option B.
Price charged by one subunit to supply products or services to another unit is called transfer price. Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods or services provided. A transfer price is based on market prices in charging another division, subsidiary, or holding company for services rendered.

Which theory is also called traditional authority theory

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A. The acceptance of authority theory
B. The formal authority theory
C. The competence theory
D. The organization theory
✅ The correct answer is option B.
The formal authority theory is also called traditional authority theory. Traditional authority (also known as traditional domination) is a form of leadership in which the authority of an organization or a ruling regime is largely tied to tradition or custom. The main reason for the given state of affairs is that it ‘has always been that way’.

___________ are the only service distributors which do not require direct human interactions.

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A. Electronic channels
B. SST’s
C. Direct Service channels
D. Speculative channels
✅ The correct answer is option A.
Electronic channels are the only service distributors which do not require direct human interactions. Electronic channels overcome some of the problems associated with service inseparability and allow a form of standardisation not previously possible in most services.

A company must eliminate all those activities that do not add value to all products or services in planning of

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A. variable overhead cost
B. fixed overhead cost
C. fixed batch cost
D. variable batch cost
✅ The correct answer is option A.
A company must eliminate all those activities that do not add value to all products or services in planning of variable overhead cost. Variable overhead is a term used to describe the fluctuating manufacturing costs associated with operating businesses.

Pre-specified price at which underlying asset is bought and sold is called as

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A. maturity price
B. strike price
C. exercise price
D. both b and c
✅ The correct answer is option D.
Pre-specified price at which underlying asset is bought and sold is called as strike price or exercise price. the strike price (or exercise price) of an option is the fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity.