Management MCQs

Asset allocation is procedure of scattering your assets between numerous different kinds of investments to

by
A. highest risk
B. moderate risk
C. lessen risk
D. no risk
✅ The correct answer is option C.
Asset allocation is procedure of scattering your assets between numerous different kinds of investments to lessen risk. Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon.

The theory focused on a persons act rather than his trait or behaviour is.

by
A. Trait theory
B. Behavioural theory
C. Followers theory
D. System theory
✅ The correct answer is option D.
The theory focused on a persons act rather than his trait or behaviour is System theory. Systems theory is an interdisciplinary theory about the nature of complex systems in nature, society, and science, and is a framework by which one can investigate and/or describe any group of objects that work together to produce some result.

Markowitz efficient hypothesis initiated in

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A. 1958
B. 1959
C. 1961
D. 1960
✅ The correct answer is option D.
Markowitz efficient hypothesis initiated in 1960. Harry Markowitz model (HM model), also known as Mean-Variance Model because it is based on the expected returns (mean) and the standard deviation (variance) of different portfolios, helps to make the most efficient selection by analyzing various portfolios of the given assets.

What is the primary purpose of report

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A. To control problems, sell products and services
B. To analyze problems and predict practical alternatives
C. To monitor and control production, sales, shipping, etc
D. To solve problems and supply facts
✅ The correct answer is option B.
To analyze problems and predict practical alternatives is the primary purpose of report. Reports communicate information which has been compiled as a result of research and analysis of data and of issues. Reports can cover a wide range of topics, but usually focus on transmitting information with a clear purpose, to a specific audience.

If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under

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A. designed-in costs
B. locked-in costs
C. value added cost
D. non-value added cost
✅ The correct answer is option C.
If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under value added cost. A value added cost is incurred when an asset is consumed in order to increase the value of goods or services to the consumer.

Assembly language use _______ technology for programming

by
A. Symbols
B. Data
C. Mnemonic codes
D. Alpha numeric
✅ The correct answer is option C.
Assembly language use Mnemonic codes technology for programming. A code that can be remembered comparatively easily and that aids its user in recalling the information it represents.

Intrinsic value of call option is considered as out of money if

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A. bond price > treasury price
B. treasury price < bond price
C. stock price > exercise price
D. stock price < exercise price
✅ The correct answer is option D.
Intrinsic value of call option is considered as out of money if stock price < exercise price. The intrinsic value of both call and put options is the difference between the underlying stock's price and the strike price. In the case of both call and put options, if the calculated value is negative, the intrinsic value is zero.

Yield on subordinated bonds as compared to non-subordinated bonds is considered as

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A. highly risky and higher yields
B. highly risky and lower yields
C. less risky and higher yields
D. less risky and lower yields
✅ The correct answer is option A.
Yield on subordinated bonds as compared to non-subordinated bonds is considered as highly risky and higher yields. Subordinated debentures are thus also known as junior securities. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full.

Non-programmed decision is also called

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A. routine decisions
B. structured decisions
C. strategic decisions
D. unplanned decisions
✅ The correct answer is option C.
Non-programmed decision is also called strategic decisions. Strategic decisions are the decisions that are concerned with whole environment in which the firm operates, the entire resources and the people who form the company and the interface between the two.