Management MCQs

The purpose of a mission statement is to declare all of these except

by
A. a reason for being
B. an annual financial plan
C. a statement of purpose
D. a statement of beliefs
✅ The correct answer is option B.
The purpose of a mission statement is to declare all of these except an annual financial plan. The sole purpose of a mission statement is to serve as a company’s goal/agenda, it outlines clearly what the goal is.

In Eurodollar market, increase in demand of Euro dollars results in

by
A. increase in LIBOR
B. decrease in LIBOR
C. increase in KIBOR
D. decrease in KIBOR
✅ The correct answer is option A.
In Eurodollar market, increase in demand of Euro dollars results in increase in LIBOR. Deposits from overnight out to a week are priced based on the fed funds rate. Prices for longer maturities are based on the corresponding London Interbank Offered Rate (LIBOR).

Delegation of some of his duties by a subordinate to another subordinate of the same rank is called

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A. oral delegation
B. written delegation
C. downward delegation
D. sideward delegation
✅ The correct answer is option D.
Delegation of some of his duties by a subordinate to another subordinate of the same rank is called sideward delegation. It takes place when a subordinate assigns some of his duties and authority to another subordinate of the same rank.

Difference between price of underlying asset and exercise price of option is classified as

by
A. extrinsic value of European option
B. intrinsic value of option
C. extrinsic value of option
D. intrinsic value of European option
✅ The correct answer is option B.
Difference between price of underlying asset and exercise price of option is classified as intrinsic value of option. The intrinsic value of an option represents the current value of the option, or in other words how much in the money it is. When an option is in the money, this means that it has a positive payoff for the buyer.

The process of dividing the large monolithic functional organization into small and flexible administrative units is called ________.

by
A. staffing
B. delegation
C. departmentation
D. control
✅ The correct answer is option C.
The process of dividing the large monolithic functional organization into small and flexible administrative units is called departmentation. Departmentation is a process of dividing the large monolithic functional organization into smaller and flexible administrative units.

Plant and equipment are examples of

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A. long term fixed assets
B. short term fixed assets
C. short term working capital
D. long term working capital
✅ The correct answer is option A.
Plant and equipment are examples of long term fixed assets. The term fixed assets generally refers to the long-term assets, tangible assets used in a business that are classified as property, plant and equipment.

The human resource management functions aims at

by
A. ensuring that the ‘human resources possess, adequate capital, tool equipment and material to perform the job successful
B. helping the Organisation deal with its employees in different stages of employment
C. improving an Organisation’s creditworthiness among financial institutions
D. Ensuring financial & Marketing Stability
✅ The correct answer is option B.
The human resource management functions aims at helping the Organisation deal with its employees in different stages of employment. Human Resource Management typically means to engage, improve and preserve sufficiently capable employees, to implement the activities essential to achieve organizational aims.

If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be

by
A. less than zero
B. equal to zero
C. favourable
D. unfavourable
✅ The correct answer is option D.
If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be unfavourable. An unfavorable variance means that the cost of labor was more expensive than anticipated, while a favorable variance indicates that the cost of labor was less expensive than planned.

Information about sovereign borrowers and corporate borrowers is generated by the

by
A. bond rating agencies
B. bond issuance agencies
C. federal placement
D. private pavement agencies
✅ The correct answer is option A.
Information about sovereign borrowers and corporate borrowers is generated by the bond rating agencies. Bond rating agencies are companies that assess the creditworthiness of both debt securities and their issuers. Credit rating agencies publish the ratings and used by investment professionals to assess the likelihood that the debt will be repaid.