Management MCQs

Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as

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A. indenture bonds
B. trustee bonds
C. collateral bonds
D. mortgage bonds
✅ The correct answer is option D.
Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as mortgage bonds. A mortgage bond is a bond secured by a mortgage or pool of mortgages. These bonds are typically backed by real estate holdings and real property such as equipment. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default.

Inverse relationship between price change and interest rate change is represented by

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A. negative discount
B. negative duration
C. positive duration
D. positive discount
✅ The correct answer is option B.
Inverse relationship between price change and interest rate change is represented by negative duration. A situation in which the price of a bond or other debt security moves in the same direction of interest rates. That is, negative duration occurs when the bond prices go up along with interest rates and vice versa.

If a firm is practicing ____________, the firm is training and effectively motivating its customer-contact employees and all of the supporting service people to work as a team to provide customer satisfaction.

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A. Double-up marketing
B. Interactive marketing
C. Service marketing
D. Internal marketing
✅ The correct answer is option D.
If a firm is practicing Internal marketing, the firm is training and effectively motivating its customer-contact employees and all of the supporting service people to work as a team to provide customer satisfaction. Internal marketing is the promotion of a company’s objectives, products and services to employees within the organization. The purpose is to increase employee engagement with the company’s goals and fostering brand advocacy.

Periodic payments of dividends are subtracted from return to stockholders to calculate

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A. gain on spot contract
B. loss on spot contract
C. gain on capital
D. loss on capital
✅ The correct answer is option C.
Periodic payments of dividends are subtracted from return to stockholders to calculate gain on capital. Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.

Strategy effectiveness and competitive success is dependent on which of the following groups of competencies?

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A. Change, planning, learning
B. Content, change, planning
C. Content, change, learning
D. Learning, planning, content
✅ The correct answer is option C.
Strategy effectiveness and competitive success is dependent on Content, change, learning groups of competencies. Strategic success requires a clear understanding of the needs of the market, and the satisfaction of targeted customers more effectively and more profitably than by competitors. Real competitive advantage implies companies are able to satisfy customer needs more effectively than their competitors.

Companies that perform in competitive markets using pricing approach are known as

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A. independent revenue approach
B. market based approach
C. dependent revenue approach
D. cost based approach
✅ The correct answer is option B.
Companies that perform in competitive markets using pricing approach are known as market based approach. In the Market-Based Approach, the value of an asset is determined by comparing it with the market prices of recently sold similar sized assets in recent time period like a quarter.

STRIPS are used effectively to receive

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A. One set of payment
B. Two sets of payments
C. Three sets of payments
D. Four sets of payments
✅ The correct answer is option A.
STRIPS are used effectively to receive one set of payment. STRIPS (Separate Trading of Registered Interest and Principal of Securities) are debt securities that are created through the process of coupon stripping. They are essentially traditional Treasury bonds, except that the bond’s principal (its corpus) has been separated–stripped–from its interest (its coupon).

An amount of available capacity other than employed capacity, to meet customer’s demand, is classified as

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A. targeted capacity
B. budgeted capacity
C. recovery capacity
D. unused capacity
✅ The correct answer is option D.
An amount of available capacity other than employed capacity, to meet customer’s demand, is classified as unused capacity. Idle capacity is the remaining amount of capacity left in a company after productive capacity and protective capacity have been eliminated from consideration.

A practice used by different companies to reduce costs by transferring portions of work to outside provider rather than completing it internally is termed as:

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A. Planning
B. Decentralization
C. Restructuring
D. Outsourcing
✅ The correct answer is option D.
A practice used by different companies to reduce costs by transferring portions of work to outside provider rather than completing it internally is termed as Outsourcing. HR Outsourcing is a process in which the human resource activities of an organization are outsourced so as to focus on the organization`s core competencies. Often HR functions are complex and time consuming that it will create difficulty in managing other important thrust areas.