Management MCQs

✅ The correct answer is option A.
Effective tool of excellent corporate governance corporation are board of directors. A board of directors is a team of people elected by a corporation’s shareholders to represent the shareholders’ interests and ensure that the company’s management acts on their behalf.

✅ The correct answer is option B.
Liquidity premium theory, unbiased expectations theory and market segmentation theory are theories to describe term structure of interest rate. The liquidity premium theory states that bond investors prefer highly liquid, short-dated securities that can be sold quickly over long-dated ones. The theory also contends that investors are compensated for higher default risk and price risk from changes in interest rates. Unbiased Expectations Theory states that current long-term interest rates contain an implicit prediction of future short-term interest rates. Market segmentation theory is a theory that long and short-term interest rates are not related to each other. It also states that the prevailing interest rates for short, intermediate, and long-term bonds should be viewed separately like items in different markets for debt securities.

✅ The correct answer is option B.
Margin which must be maintained as soon as futures contract takes place is classified as maintenance margin. A maintenance margin is the minimum amount of equity that must be maintained in a margin account.