Management MCQs

According to Parasuraman, Zeithaml & Berry, the most important determinant of service quality is:

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A. Responsiveness
B. Reliability
C. Assurance
D. Empathy
✅ The correct answer is option B.
According to Parasuraman, Zeithaml & Berry, the most important determinant of service quality is reliability. Reliability is defined as the probability that a product, system, or service will perform its intended function adequately for a specified period of time, or will operate in a defined environment without failure.

According to Ringbakk (1971) and Steiner (1972) which of the following should be avoided when creating a formal plan?

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A. Seeing planning as a support activity in strategic decision making
B. Seeing planning as a once-a-year ritual
C. Flexibility
D. Involving implementers in planning
✅ The correct answer is option B.
According to Ringbakk (1971) and Steiner (1972) Seeing planning as a once-a-year ritual should be avoided when creating a formal plan. In formal planning, the managers look forward for a change when it is to be made use of.

A marketing department that promises delivery quicker than the production department’s ability to produce is an example of a lack of understanding of the

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A. synergy of the business units
B. need to maintain the reputation of the company
C. organizational culture and leadership
D. interrelationships among functional areas and firm strategies
✅ The correct answer is option D.
A marketing department that promises delivery quicker than the production department’s ability to produce is an example of a lack of understanding of the interrelationships among functional areas and firm strategies. The Marketing Department is the key to good marketing and sales. It promotes and establishes a business in its niche, based on the products or services the business is offering. It identifies the areas in which the product fits and where the business should focus its marketing strategy and, therefore, spend its budget for the maximum coverage and results.

_________ strategies are also known as grand or root strategies

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A. Corporate
B. Business
C. Functional
D. Operational
✅ The correct answer is option A.
Corporate strategies are also known as grand or root strategies. A corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to create corporate value and motivate the workforce to implement the proper actions to achieve customer satisfaction.

What is likely to be the effect of a logical corporate strategy but poor strategy implementation.

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A. Strategic weaknesses and underachievement
B. Fragmented performance through strategic and structural flaws
C. Structural and stylistic flaws
D. Effectiveness but little efficiency
✅ The correct answer is option C.
Structural and stylistic flaws is likely to be the effect of a logical corporate strategy but poor strategy implementation.

Which of the following is a disadvantage of using an executive recruiter?

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A. many contacts in field
B. adept at contacting candidates who are not on the job market
C. unfamiliar with company perceptions of ideal candidate
D. ability to keep identity of firm confidential
✅ The correct answer is option C.
Unfamiliar with company perceptions of ideal candidate is a disadvantage of using an executive recruiter.

Eurobonds are placed for buying and selling in primary markets by

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A. investment banks
B. commercial banks
C. euro transfer agencies
D. currency deposit banks
✅ The correct answer is option A.
Eurobonds are placed for buying and selling in primary markets by investment banks. An investment bank (IB) is a financial intermediary that performs a variety of services. Most Investment banks specialize in large and complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations and acting as a broker or financial adviser for institutional clients.

An effect of fixed cost to change in operating income is classified as

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A. uncertain margin
B. certain margin
C. operating margin
D. operating leverage
✅ The correct answer is option D.
An effect of fixed cost to change in operating income is classified as operating leverage. Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variable costs has high operating leverage.

Decrease in present value at decreasing rate only when

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A. increase in availability
B. decrease in availability
C. interest rate decrease
D. interest rate increases
✅ The correct answer is option D.
Decrease in present value at decreasing rate only when interest rate increases. This is because a higher interest rate means you would have to set less aside today to earn a specified amount in the future.