Management MCQs

Security which has characteristics of common stock and bonds both at same time is classified as

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A. preferred stock
B. voted stock
C. cumulative stock
D. fundamental stock
✅ The correct answer is option A.
Security which has characteristics of common stock and bonds both at same time is classified as preferred stock. Preferred stock (also called preferred shares, preference shares or simply preferreds) is a form of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.

Which of the following approach emphasizes the’ effect of psychological &. Social factors on employees’ performance?

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A. Scientific approach
B. Rational approach
C. Human relations approach
D. Systematic approach
✅ The correct answer is option C.
Human relations approach emphasizes the’ effect of psychological &. Social factors on employees’ performance. According to Human Relations Approach, management is the Study of behaviour of peo­ple at work. This approach had its origin in a series of experiments conducted by Professor Elton Mayo and his associates at the Harvard School of Business at the Western Electric Company’s Hawthorne Works, near Chicago.

Bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as

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A. untimed indentures
B. untimed debentures
C. indentures
D. debentures
✅ The correct answer is option D.
Bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as debentures. Debentures are a debt instrument used by companies and government to issue the loan. The loan is issued to corporates based on their reputation at a fixed rate of interest. Debentures are also known as a bond which serves as an IOU between issuers and purchaser.

Working capital cash outflow, cash outflow to buy machine and cash inflow from machine are examples of

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A. cash flow from operations
B. terminal disposal of investment
C. net initial investment
D. average return on investment
✅ The correct answer is option C.
Working capital cash outflow, cash outflow to buy machine and cash inflow from machine are examples of net initial investment. Net investment is the amount spent by a company or an economy on capital assets, or gross investment, less depreciation. Net investment helps give a sense of how much money a company is spending on capital items used for operations, such as property, plants, equipment, and software.

Under which control system only extra ordinary or exceptional deviations are reported to management for remedial action

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A. MBE
B. MBO
C. MBS
D. MBP
✅ The correct answer is option A.
Under MBE control system only extra ordinary or exceptional deviations are reported to management for remedial action. Management by exception is one of the many management practices or styles. It provides you with a specific type of framework that guides the way your management goes about planning, organizing, and controlling, i.e. the core management functions. It provides a set of processes and principles you choose to follow and implement in your management.

Current selling price of municipal bonds available to bond holders is used to calculate

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A. yield to income tax
B. yield to municipal bonds
C. yield to tax rate
D. yield to revenue bonds
✅ The correct answer is option B.
Current selling price of municipal bonds available to bond holders is used to calculate yield to municipal bonds.

The services a customer expects are called the ______service package.

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A. Expected
B. Augmented
C. Primary
D. Secondary
✅ The correct answer is option C.
The services a customer expects are called the primary service package. This is a bundle of services that are sold together as a unit by a company. For example, a cleaning company might sell a basic service package that includes a weekly cleaning for a month.