Management MCQs

Drafts which are backed up by banks and are payable to seller of products or services are classified as

by
A. banker acceptance
B. secured acceptance
C. unsecured acceptance
D. economic acceptance
✅ The correct answer is option A.
Drafts which are backed up by banks and are payable to seller of products or services are classified as banker acceptance. A banker’s acceptance requires the bank to pay the holder a set amount of money on a set date.

The process which is continuous and stops only when the organisation ceases to exist

by
A. Training
B. Job evaluation
C. Hiring
D. All of the above
✅ The correct answer is option C.
Hiring is the process which is continuous and stops only when the organisation ceases to exist. The hiring process is the process of reviewing applications, selecting the right candidates to interview, testing candidates, choosing between candidates to make the hiring decision and performing various pre-employment tests and checks.

Maximum freedom for managers and minimum constraints are main features of

by
A. total autonomy
B. total centralization
C. total decentralization
D. total congruency
✅ The correct answer is option C.
Maximum freedom for managers and minimum constraints are main features of total decentralization. Decentralization is the process of distributing or dispersing functions, powers, people or things away from a central location or authority.

In general the information system can also describe in terms of ____.

by
A. Operations
B. Functions
C. events
D. tasks
✅ The correct answer is option B.
In general the information system can also describe in terms of Functions. An information system is the software that helps organize and analyze data. The purpose of an information system is to turn raw data into useful information that can be used for decision making in an organization.

Which of the following emerged when individuals realised the strength they could gain by joining together to negotiate with employers?

by
A. Trade Unions
B. Human Relation movement
C. Employment Legislations
D. Employee relationship Management
✅ The correct answer is option A.
Trade Unions emerged when individuals realised the strength they could gain by joining together to negotiate with employers. Trade unions are associations of workers or organization formed together by labour, workers or employees to achieve their demands for better conditions at their work atmosphere.

The information of MIS comes from the

by
A. Internal source
B. External source
C. Both Internal and External sources
D. None of the above
✅ The correct answer is option C.
The information of MIS comes from the both Internal and External sources. A management information system (MIS) is a computer system consisting of hardware and software that serves as the backbone of an organization’s operations.

Most favourable portfolio is proficient portfolio with the

by
A. lowest risk
B. highest risk
C. highest utility
D. least investment
✅ The correct answer is option C.
Most favourable portfolio is proficient portfolio with the highest utility. A portfolio investment is a hands-off or passive investment of securities in a portfolio, and it is made with the expectation of earning a return.

The decision taken by high level of management is

by
A. a programmed decision
B. non-programmed decision
C. individual decision
D. non-economic decision
✅ The correct answer is option B.
The decision taken by high level of management is non-programmed decision. These decisions are taken in unstructured situations which reflect novel, ill-defined and complex problems. The problems are non-recurring or exceptional in nature. Since they have not occurred before, they require extensive brainstorming. Managers use skills and subjective judgment to solve the problems through scientific analysis and logical reasoning.

Special simulation languages are useful because they.

by
A. Reduce programme preparation time & cost
B. Have the capability to generate random variables
C. Require no prior programming knowledge
D. All of the above
✅ The correct answer is option D.
Special simulation languages are useful because they Reduce programme preparation time & cost, have the capability to generate random variables and require no prior programming knowledge.

Contribution margin is divided to operate income to calculate

by
A. degree of operating leverage
B. degree of change
C. degree of change in margin
D. degree of change in income
✅ The correct answer is option A.
Contribution margin is divided to operate income to calculate degree of operating leverage. The Degree of Operating Leverage (DOL) is the leverage ratio that sums up the effect of an amount of operating leverage on the company’s earnings before interests and taxes (EBIT).