Management MCQs

Under which of the following authority, an HR manager took the decision to provide training to its employees regarding the operations of newly installed machine?

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A. Staff
B. Functional
C. Line
D. Implied
✅ The correct answer is option B.
Under Functional authority, an HR manager took the decision to provide training to its employees regarding the operations of newly installed machine. Functional authority is the right that is delegated to an individual or a department to control specified processes, practices, policies, or other matters in relation to activities undertaken by persons in other departments.

Sum of all resources used to generate income is classified as

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A. DuPont investment
B. return on investment
C. investment
D. investment turnover
✅ The correct answer is option C.
Sum of all resources used to generate income is classified as investment. An investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

When price of underlying asset increases then good option is

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A. buy call option
B. sell call option
C. buy put option
D. sell put option
✅ The correct answer is option A.
When price of underlying asset increases then good option is buy call option. Buying a call option entitles the buyer of the option the right to purchase the underlying futures contract at the strike price any time before the contract expires.

Decision trees could be represented in different ways such as ____________________.

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A. Bottom to top
B. Left to right
C. Top to bottom
D. All of the above
✅ The correct answer is option D.
Decision trees could be represented in different ways such as Bottom to top, Left to right C and Top to bottom. A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.

What are core competences?

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A. Resources which critically underpin competitive advantage and that others cannot obtain
B. Activities and processes needed to meet customers’ minimum requirements and therefore to continue to exist
C. Key skills required for success in a particular business
D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain
✅ The correct answer is option D.
Core competences means activities that underpin competitive advantage and are difficult for competitors to imitate or obtain. Core competencies are the resources and capabilities that comprise the strategic advantages of a business. A modern management theory argues that a business must define, cultivate, and exploit its core competencies in order to succeed against the competition.

An economic value added method is specific type of method to calculate

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A. net income
B. nominal income
C. residual income
D. residual investment
✅ The correct answer is option C.
An economic value added method is specific type of method to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company’s management team evaluates the income generated relative to the company’s minimum required return.

In managerial grid, the style which focuses maximum concern of people and minimum concern of production is

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A. task management
B. impoverished style
C. country club
D. team management style
✅ The correct answer is option C.
In managerial grid, the style which focuses maximum concern of people and minimum concern of production is country club. The managerial grid model (1964) is a style leadership model developed by Robert R. Blake and Jane Mouton. This model originally identified five different leadership styles based on the concern for people and the concern for production.