Management MCQs

The authority is decentralized in which leadership style

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A. positive style
B. negative style
C. autocratic style
D. democratic style
✅ The correct answer is option D.
The authority is decentralized in democratic leadership style. Democratic leadership, also known as participative leadership or shared leadership, is a type of leadership style in which members of the group take a more participative role in the decision-making process.

If an actual price of material is $700 and budgeted price is $900, then the

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A. cost variance is favourable
B. cost variance is unfavourable
C. price variance is favourable
D. price variance is unfavourable
✅ The correct answer is option C.
If an actual price of material is $700 and budgeted price is $900, then the price variance is favourable. If the actual cost incurred is lower than the standard cost, this is considered a favorable price variance.

Difference that exists between total revenues, can be earned from two different alternatives is termed as

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A. independent revenue
B. incremental revenue
C. differential revenue
D. dependent revenue
✅ The correct answer is option C.
Difference that exists between total revenues, can be earned from two different alternatives is termed as differential revenue. Differential revenue is the difference in sales that will be generated by two different courses of action. The concept is commonly used when evaluating which of two (or more) investments to make in a business.

Feature of stock which allows stock holders to buy shares at price below than market price is called

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A. shares offering
B. price offering
C. rights offering
D. stock offering
✅ The correct answer is option C.
Feature of stock which allows stock holders to buy shares at price below than market price is called rights offering. A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.

Principal issuer of commercial papers are commercial banks and major investors of principal investors includes

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A. brokers and dealers
B. corporations
C. other financial institutions
D. all of above
✅ The correct answer is option D.
Principal issuer of commercial papers are commercial banks and major investors of principal investors includes brokers and dealers, corporations and other financial institutions.

Which of the following is not a strategic criteria for deciding which firms to retain in the organizational core?

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A. The company???s mission
B. Longevity
C. Financial performance over time
D. Relatedness of technologies
✅ The correct answer is option B.
Longevity is not a strategic criteria for deciding which firms to retain in the organizational core. Longevity is most commonly used to describe the length of one’s lifetime, but it can also mean a long duration, such as one’s longevity working for a certain company for an extended period of time.