Management MCQs

Loan-able funds theory is used to determine

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A. savings
B. interest rate
C. future value
D. present value
✅ The correct answer is option B.
Loan-able funds theory is used to determine future value. The loanable funds doctrine is a theory of the market interest rate. According to this approach, the interest rate is determined by the demand for and supply of loanable funds. The term loanable funds includes all forms of credit, such as loans, bonds, or savings deposits.

Which of the following are products and services bought by final consumers for personal consumption? These include convenience products, shopping products, specialty products, and unsought products.

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A. Material and parts
B. Consumer products
C. Industrial products
D. Capital items
✅ The correct answer is option B.
Consumer products are products and services bought by final consumers for personal consumption. Consumer products, also referred to as final goods, are products that are bought by individuals or households for personal use. In other words, consumer products are goods that are bought for consumption by the average consumer.

What is the IMF’s primary objective?

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A. The overall promotion of world trade
B. The fixation of the value of world currencies
C. The promotion of free trade
D. The promotion of its policies in certain countries around the world
✅ The correct answer is option A.
The IMF’s primary objective is the overall promotion of world trade. IMF helps the member countries to achieve the balanced economic growth. It facilitates the expansion of balanced growth by the promotion and maintenance of high level of employment as the primary objective of economic policy. For this purpose, IMF helps to exploit natural resources and to put into productive channel.

The term span of management is also known as _______.

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A. span of business
B. span of control
C. span of activity
D. span of planning
✅ The correct answer is option B.
The term span of management is also known as span of control. The concept of “span of control,” also known as management ratio, refers to the number of subordinates controlled directly by a superior.

Type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as

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A. pledged bonds
B. serial bonds
C. series bonds
D. parallel bonds
✅ The correct answer is option B.
Type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as serial bonds. A serial bond is a bond issue that is structured so that a portion of the outstanding bonds mature at regular intervals until all of the bonds have matured. Because the bonds mature gradually over a period of years, these bonds are used to finance projects that provide a consistent income stream for bond repayment.

Merchant wholesalers sell goods and services directly to final consumers for their personal, non business use.

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A. TRUE
B. FALSE
Answer: Option B
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✅ The correct answer is option B.
Merchant does not wholesalers sell goods and services directly to final consumers for their personal, non business use. Convenience products usually have intensive distribution because sales of these products tend to have a direct relationship to availability.

Achievement of objectives of an organization is concerned with

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A. organization
B. Division of work
C. management
D. planning
✅ The correct answer is option C.
Achievement of objectives of an organization is concerned with management. Management is a set of principles relating to the functions of planning, organizing, directing and controlling, and the application of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organizational goals.

The organization which was devised by FW Taylor was

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A. functional organization
B. matrix organization
C. committee organization
D. line and staff organization
✅ The correct answer is option A.
The organization which was devised by FW Taylor was functional organization. A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.