Management MCQs

Value of option issued to call debt is subtracted from rate of return on callable bond to calculate rate of return on

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A. contributed bonds
B. non-callable bonds
C. callable bonds
D. discounted bonds
✅ The correct answer is option B.
Value of option issued to call debt is subtracted from rate of return on callable bond to calculate rate of return on non-callable bonds. A noncallable security is a financial security that cannot be redeemed early by the issuer except with the payment of a penalty. The issuer of a noncallable bond subjects itself to interest rate risk because, at issuance, it locks in the interest rate it will pay until the security matures.

In strategy formulation, forces that must be focused for industry analysis include

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A. potential entrants in market
B. customer’s bargaining power
C. supplier’s bargaining power
D. all of above
✅ The correct answer is option D.
In strategy formulation, forces that must be focused for industry analysis include potential entrants in market, customer’s bargaining power and supplier’s bargaining power.

Middle level managers typically are responsible for ___________ strategies

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A. business
B. organizational
C. operational
D. corporate
✅ The correct answer is option A.
Middle level managers typically are responsible for business strategies. Middle management is at the center of a hierarchical organization, subordinate to the senior management but above the lowest levels of operational staff.

Fixed cost is divided to contribution margin to calculate

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A. breakeven revenue
B. total revenue
C. fixed revenue
D. variable revenue
✅ The correct answer is option A.
Fixed cost is divided to contribution margin to calculate breakeven revenue. Break-even revenue equals fixed costs divided by contribution margin ratio, which equals contribution margin divided by total revenue.

MICR magnetic ink character recognition used in ________.

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A. Office
B. Banks
C. Corporate
D. Admin
✅ The correct answer is option B.
MICR magnetic ink character recognition used in Banks. Magnetic ink character recognition code, known in short as MICR code, is a character recognition technology used mainly by the banking industry to streamline the processing and clearance of cheques and other documents.

Exchange rate entail delivery of trade currency within two business days know as

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A. forward rate
B. future rate
C. spot rate
D. bid rate
✅ The correct answer is option C.
Exchange rate entail delivery of trade currency within two business days know as spot rate. The spot rate is the price quoted for immediate settlement on a commodity, a security or a currency. The spot rate, also referred to as the “spot price,” is the current market value of an asset at the moment of the quote.

The process of helping users see patterns and relationships in large amounts of data by presenting the data in graphical form is called __________________.

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A. Geographic information system
B. Decision support system
C. Data visualization
D. An optimization model
✅ The correct answer is option C.
The process of helping users see patterns and relationships in large amounts of data by presenting the data in graphical form is called Data visualization. Data visualization refers to techniques used to communicate insights from data through visual representation. Its main goal is to distill large datasets into visual graphics to allow for easy understanding of complex relationships within the data.

Depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a

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A. fixed batch cost
B. variable batch cost
C. variable overhead cost
D. fixed overhead cost
✅ The correct answer is option D.
Depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a fixed overhead cost. Fixed overhead costs are costs that do not change even while the volume of production activity changes. Fixed costs are fairly predictable and fixed overhead costs are necessary to keep a company operating smoothly.

Type of market in which short term instruments are traded and purchased by economic units is classified as

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A. money markets
B. capital markets
C. debt markets
D. economic markets
✅ The correct answer is option A.
Type of market in which short term instruments are traded and purchased by economic units is classified as money markets. The money market is the trade in short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.

Financial firms such as mutual fund and insurance companies are also called

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A. insured financials
B. guaranteed business
C. credit business
D. business financial
✅ The correct answer is option D.
Financial firms such as mutual fund and insurance companies are also called business financial. Business Finance means the funds and credit employed in the business. Finance is the foundation of a business.