Management MCQs

The right of a person to give instructions to his subordinates is known as_________.

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A. responsibility
B. authority
C. accountability
D. line authority
✅ The correct answer is option B.
The right of a person to give instructions to his subordinates is known as authority. Authority, in simple words, is the right way of commanding subordinates, issuing orders and instructions, and exacting obedience from the team. It is also the right of the manager to make decisions. Also, to act or not to act depends on how he perceives the objectives of the organization.

Sales letters start with

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A. An easy and effective way
B. An attention-getting device
C. A smooth story
D. Buffer
✅ The correct answer is option B.
Sales letters start with an attention-getting device. To get through, your sales letter needs to be good, different, professional and relevant. Use the five-second rule when designing direct sales letters opening statements and headlines.

Type of Eurodollars deposits denominated in banks outside United States is classified as

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A. mutual certificate of deposit
B. euro dollar certificate of deposit
C. expansionary certificate of deposit
D. euro dollar contraction deposit
✅ The correct answer is option B.
Type of Eurodollars deposits denominated in banks outside United States is classified as euro dollar certificate of deposit. A Eurodollar certificate of deposit (Eurodollar CD) is a negotiable dollar-denominated time deposit issued by a U.S. bank located outside the United States or by a foreign bank located abroad.

The followers themselves take decisions for which they get authority under

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A. positive style
B. negative style
C. free rein style
D. democratic style
✅ The correct answer is option C.
The followers themselves take decisions for which they get authority under free rein style. Free-rein leadership, also called Laissez-Faire, is a type of leadership style in which leaders are hands-off and allow group members to make the decisions. Mangers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

Which is not a domain of Artificial Intelligence?

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A. Intelligent Agents
B. Expert System
C. Both A & B
D. None of the above
✅ The correct answer is option C.
Intelligent Agents and Expert System is not a domain of Artificial Intelligence. Artificial intelligence (AI), the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings.

Value of conversion option to bond holder is $740 and rate of return on non-convertible bond is $540 then rate of return on convertible bond is

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A. 1.37%
B. $1,280
C. $1.37
D. $200
✅ The correct answer is option D.
Rate of return on convertible bond = Value of conversion option to bond holder – Rate of return on non-convertible bond
= $740 – $540 = $200.

Prices that are adjusted day to day to picture current conditions of futures markets are classified as

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A. market future prices
B. market to market prices
C. market to invest prices
D. present market prices
✅ The correct answer is option B.
Prices that are adjusted day to day to picture current conditions of futures markets are classified as market to market prices. Mark to market (MTM) is a measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution’s or company’s current financial situation.

Scalar chain means ________.

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A. hierarchy levels
B. chain of command
C. delegation of authority
D. span of control
✅ The correct answer is option A.
Scalar chain means hierarchy levels. The concept of hierarchy is a universal phenomenon of organization which means the scalar chain implying a ladder structured in a pyramidical fashion with successive several steps interlinked with each other, from top to bottom.

The Ranking method is best suited for

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A. Complex organizations
B. Large organizations
C. Small organizations
D. Any of the above
✅ The correct answer is option C.
The Ranking method is best suited for Small organizations. Ranking method is one of the simplest performance evaluation methods. In this method, employees are ranked from best to worst in a group. The simplicity of this method is overshadowed by the negative impact of assigning a ‘worst’ and a ‘best’ rating to an employee.