Management MCQs

___________ is the process of defining the current problem, determining why a new system is needed, identifying the objectives of the proposed system:

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A. Feasibility analysis
B. System Analysis
C. System definition
D. System requirements
✅ The correct answer is option C.
System definition is the process of defining the current problem, determining why a new system is needed, identifying the objectives of the proposed system. Proposed system means explaining what you are going to do this project.

Ambiguity introduced by way by which organization finances its investments is

by
A. country risk
B. liquidity risk
C. financial risk
D. business risk
✅ The correct answer is option C.
Ambiguity introduced by way by which organization finances its investments is financial risk. Financial risk is a term that can apply to businesses, government entities, the financial market as a whole, and the individual. This risk is the danger or possibility that shareholders, investors, or other financial stakeholders will lose money.

Why Organisations provide, attractive salaries, fringe benefits, career development opportunities:

by
A. To retain valuable human resources
B. To be the market leader in the future
C. To attract more and more people
D. To enforce government regulations
✅ The correct answer is option A.
To retain valuable human resources Organisations provides attractive salaries, fringe benefits and career development opportunities.

Amount of money by which total revenues exceed breakeven revenues is classified as

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A. margin of safety
B. margin of profit
C. margin of loss
D. margin of income
✅ The correct answer is option A.
Amount of money by which total revenues exceed breakeven revenues is classified as margin of safety. Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value.

Duration which is divided by interest rate plus one is classified as

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A. decreased duration
B. increase duration
C. modified duration
D. at par duration
✅ The correct answer is option C.
Duration which is divided by interest rate plus one is classified as modified duration. Modified duration is a formula that expresses the measurable change in the value of a security in response to a change in interest rates. Modified duration follows the concept that interest rates and bond prices move in opposite directions.

Difference between static budget amount and flexible budget amount is named as

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A. sales mix variance
B. sales volume variance
C. flexible budget variance
D. static budget variance
✅ The correct answer is option B.
Difference between static budget amount and flexible budget amount is named as sales volume variance. Sales volume variance is the change in revenue or profit caused by the difference between actual and budgeted sales units.

Maximum maturity days of holding commercial paper are

by
A. 170 days
B. 270 days
C. 120 days
D. 5 days
✅ The correct answer is option B.
Maximum maturity days of holding commercial paper are 270 days. Commercial paper, in the global financial market, is an unsecured promissory note with a fixed maturity of not more than 270 days.

Which approach that seeks to link strategy, business, performance and HRM policies and practices, assumes that there are a number of HRM practices that are suitable for all Organisations?

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A. Best Practice
B. Best fit
C. Resource-based view
D. Life cycle models
✅ The correct answer is option A.
Best Practice approach that seeks to link strategy, business, performance and HRM policies and practices, assumes that there are a number of HRM practices that are suitable for all Organisations. HR strategies are appropriate to the circumstances of the organization, including the culture, operational processes and external environment. HR strategies have to take account of the particular needs of both the organization and its people.

The five-stage model of the consumer buying process includes all of the following stages EXCEPT ________.

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A. Problem recognition
B. Information search
C. Social interaction
D. Purchase decision
✅ The correct answer is option C.
The five-stage model of the consumer buying process includes all of the following stages EXCEPT Social interaction. Social interactions are the processes by which we act and react to those around us.