Management MCQs

Which of the following is one of the four key elements which must be adhered to if synergy is to be achieved?

by
A. Efficiency
B. Competitive strategies
C. Customer satisfaction
D. Effective leadership
✅ The correct answer is option D.
Effective leadership is one of the four key elements which must be adhered to if synergy is to be achieved. Effective leadership brings together diverse people and helps them find common purpose and work towards to achieve purposeful common goals. Effective Leadership inspires and empowers people to realize their fullest potential and harness their potentials to achieve common goals.

Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as

by
A. index commitment underwriting
B. insurance underwriting
C. default risk underwriting
D. firm commitment underwriting
✅ The correct answer is option D.
Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as firm commitment underwriting. A firm commitment has three general meanings in finance, but is most known as an underwriter’s agreement to assume all inventory risk and purchase all securities for an initial public offering (IPO) directly from the issuer for sale to the public. It is also known as “firm commitment underwriting” or “bought deal.”

As a process of sharing thoughts and ideas, communication suffers mainly from

by
A. both physical and non-physical barriers
B. non-physical barriers
C. gender differences
D. physical barriers
✅ The correct answer is option D.
As a process of sharing thoughts and ideas, communication suffers mainly from physical barriers. Physical barrier is the environmental and natural condition that act as a barrier in communication in sending message from sender to receiver. Organizational environment or interior workspace design problems, technological problems and noise are the parts of physical barriers.

Not a currency but basically a component of account of

by
A. compensatory financing facility
B. special drawing rights
C. multilateral investment guarantee agency
D. structural adjustment loan
✅ The correct answer is option B.
Not a currency but basically a component of account of special drawing rights. Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries.

Sum of purchase price and accrued interest on treasury bonds and notes is considered as

by
A. dirty price
B. clean price
C. paid price
D. unpaid price
✅ The correct answer is option A.
Sum of purchase price and accrued interest on treasury bonds and notes is considered as dirty price. A dirty price is a bond pricing quote, which refers to the cost of a bond that includes accrued interest based on the coupon rate.

Difference between intrinsic value of option and price of option is classified as

by
A. spot value of option
B. time value of US treasury
C. time value of option
D. time value of bond
✅ The correct answer is option C.
Difference between intrinsic value of option and price of option is classified as time value of option. Time value refers to the portion of an option’s premium that is attributable to the amount of time remaining until the expiration of the option contract.

Total revenues is subtracted from total variable costs to calculate

by
A. revenue margin
B. variable margin
C. contribution margin
D. divisor margin
✅ The correct answer is option C.
Total revenues is subtracted from total variable costs to calculate contribution margin. Contribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit.