Management MCQs

The following technique is used to evaluate an employee individually.

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A. Graphic scale rating
B. Ranking
C. Paired comparison
D. Forced distribution
✅ The correct answer is option A.
Graphic scale rating technique is used to evaluate an employee individually. A graphic rating scale lists the traits each employee should have and rates workers on a numbered scale for each trait. The scores are meant to separate employees into tiers of performers, which can play a role in determining promotions and salary adjustments.

In operating income strategic analysis, strategic component which measures change in cost attributed to price of input in current year, relative to price of input material in last year can be 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 D.
In operating income strategic analysis, strategic component which measures change in cost attributed to price of input in current year, relative to price of input material in last year can be classified as productivity component.

Which of these is not a main determinant of centralization/decentralization?

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A. Geographical considerations (e g , location etc)
B. Costs
C. Size
D. Demographical considerations (e g , age; ethnicity etc)
✅ The correct answer is option D.
Demographical considerations (e g , age; ethnicity etc) is not a main determinant of centralization/decentralization.

For other non-price conditions, decrease in equilibrium interest rate leads to

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A. increase restrictiveness
B. decrease restrictiveness
C. zero restrictiveness
D. negative restriction
✅ The correct answer is option A.
For other non-price conditions, decrease in equilibrium interest rate leads to increase restrictiveness. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied. The Federal Reserve can alter the equilibrium interest rate by adjusting the supply of money. The demand for money and supply of money can be graphed to determine the equilibrium interest rate.

Decision support system involves all of the following types of analytical modeling activities except?

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A. What-if analysis
B. Sensitivity analysis
C. Goal-seeking analysis
D. Heuristics
✅ The correct answer is option D.
Decision support system involves all of the following types of analytical modeling activities except Heuristics. A decision support system (DSS) is a computerized program used to support determinations, judgments, and courses of action in an organization or a business.

Derivatives can be used by an exporter for managing.

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A. currency risk
B. cargo risk
C. credit risk
D. business risk
✅ The correct answer is option C.
Derivatives can be used by an exporter for managing credit risk. Credit risk is the possibility of a loss resulting from a borrower’s failure to repay a loan or meet contractual obligations.

Capital gains and dividends are considered as components of

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A. return
B. equity
C. spot rate contracts
D. forward rate contracts
✅ The correct answer is option A.
Capital gains and dividends are considered as components of return. Capital gains are profits that occur when an investment is sold at a higher price than the original purchase price. Dividends are assets that are paid out of the profits of a corporation to the stockholders.

Flexible budget variance is subtracted from actual cost to calculate

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A. flexible budget cost
B. flexible investment cost
C. static budget cost
D. static variable cost
✅ The correct answer is option A.
Flexible budget variance is subtracted from actual cost to calculate flexible budget cost. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget. (The static budget amounts do not change. They remain unchanged from the amounts established at the time that the static budget was prepared and approved.)

Customer numbers and their names would be an example of the ________________ component of an order management information system.

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A. Software
B. Hardware
C. Data
D. procedure
✅ The correct answer is option C.
Customer numbers and their names would be an example of the Data component of an order management information system. A management information system (MIS) is a computer system consisting of hardware and software that serves as the backbone of an organization’s operations. An MIS gathers data from multiple online systems, analyzes the information, and reports data to aid in management decision-making.

Before formulating a formal LP model, it is better to.

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A. Express each constrain in words
B. Express the objective function in words
C. Verbally identify decision variables
D. All of the above
✅ The correct answer is option D.
Before formulating a formal LP model, it is better to Express each constrain in words, Express the objective function in words and Verbally identify decision variables.