Management MCQs

In interest rate swap transaction, party who pays fixed payments of interest is classified as

by
A. notion buyer
B. notion seller
C. swap buyer
D. swap seller
✅ The correct answer is option C.
In interest rate swap transaction, party who pays fixed payments of interest is classified as swap buyer. A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments. Most swaps involve cash flows based on a notional principal amount such as a loan or bond, although the instrument can be almost anything.

An amount of additional cost incurred for any particular activity is classified as

by
A. incremental cost
B. differential cost
C. dependent cost
D. independent cost
✅ The correct answer is option A.
An amount of additional cost incurred for any particular activity is classified as incremental cost. Incremental cost also referred to as marginal cost, is the total change a company experiences within its balance sheet or income statement due to the production and sale of an additional unit of product. Incremental costs may be classified as relevant costs in managerial accounting.

Research has shown that younger and higher income customers are more likely to use __________ channels.

by
A. self-service
B. single site
C. Personal
D. Impersonal
✅ The correct answer is option A.
Research has shown that younger and higher income customers are more likely to use self-service channels. A powerful self-service channel, best used to provide quick information to customers like account balances, outstanding amounts, location, confirmations etc.

Joint venture is

by
A. Not jointly owned by
B. Jointly owned by two or more firms
C. Acquired by firm
D. It is licensing
✅ The correct answer is option B.
Joint venture is jointly owned by two or more firms. A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

Responsibility lies in the hands of people in the upper echelons of the hierarchy is called

by
A. Benevolent
B. Consultative
C. Participative
D. Exploitative
✅ The correct answer is option D.
Responsibility lies in the hands of people in the upper echelons of the hierarchy is called Exploitative. An exploitative-authoritative management system means that responsibility lies with people in higher positions in the hierarchy.

Which of following is not a type of direct foreign investment?

by
A. Franchising
B. International trade
C. Joint ventures
D. Acquisitions of existing operations
✅ The correct answer is option B.
International trade is not a type of direct foreign investment. International Trade refers to the exchange of products and services from one country to another. In other words, imports and exports.

Non-competitive bidders get allocation of treasury bills on

by
A. federal basis
B. last basis
C. firstly basis
D. preferential basis
✅ The correct answer is option D.
Non-competitive bidders get allocation of treasury bills on preferential basis. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls.